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[House Report 107-63]
[From the U.S. Government Publishing Office]

107th Congress                                             Rept. 107-63
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================

 
                    NO CHILD LEFT BEHIND ACT OF 2001

                                _______
                                

                  May 14, 2001.--Ordered to be printed

                                _______
                                

    Mr. Boehner, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                         [To accompany H.R. 1]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 1) a bill to close the achievement gap 
with accountability, flexibility, and choice, so that no child 
is left behind, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

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

SEC. 2. REFERENCES.

  Except as otherwise specifically provided in this Act, whenever in 
this Act an amendment or repeal is expressed as the amendment 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. 3. TRANSITION.

  Except as otherwise specifically provided in this Act, or any 
amendment made by this Act, any person or agency that was awarded a 
grant under the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6301 et seq.) prior to the date of the enactment of this Act 
shall continue to receive funds in accordance with the terms of such 
award, except that such funds may not be provided after the date that 
is one year after the effective date of this Act.

SEC. 4. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. References.
Sec. 3. Transition.
Sec. 4. Table of contents.
Sec. 5. Effective date.

    TITLE I--IMPROVING THE ACADEMIC PERFORMANCE OF THE DISADVANTAGED

                         Part A--Basic Program

Sec. 101. Disadvantaged children meet high academic standards.
Sec. 102. Authorization of appropriations.
Sec. 103. Reservation for school improvement.
Sec. 104. Basic programs.
Sec. 105. School choice.
Sec. 106. Academic assessment and local educational agency and school 
improvement.
Sec. 107. State assistance for school support and improvement.
Sec. 108. Academic achievement awards program.

           Part B--Student Reading Skills Improvement Grants

Sec. 111. Reading first; early reading first.
Sec. 112. Amendments to Even Start.
Sec. 113. Inexpensive book distribution program.

                Part C--Education of Migratory Children

Sec. 121. State allocations.
Sec. 122. State applications; services.
Sec. 123. Authorized activities.
Sec. 124. Coordination of migrant education activities.

                 Part D--Neglected or Delinquent Youth

Sec. 131. Neglected or delinquent youth.
Sec. 132. Findings.
Sec. 133. Allocation of funds.
Sec. 134. State plan and State agency applications.
Sec. 135. Use of funds.
Sec. 136. Transition services.
Sec. 137. Purpose.
Sec. 138. Programs operated by local educational agencies.
Sec. 139. Local educational agency applications.
Sec. 140. Uses of funds.
Sec. 141. Program requirements.
Sec. 142. Program evaluations.

             Part E--Federal Evaluations and Demonstrations

Sec. 151. Evaluations.
Sec. 152. Demonstrations of innovative practices.
Sec. 153. Ellender-close up fellowship program; dropout reporting.

                  Part F--Comprehensive School Reform

Sec. 161. School reform.

           Part G--Rural Education Flexibility and Assistance

Sec. 171. Rural education.

                 Part H--General Provisions of Title I

Sec. 181. General provisions.

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

Sec. 201. Teacher quality training and recruiting fund.
Sec. 202. National writing project.
Sec. 203. Civic education; teacher liability protection.

   TITLE III--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT 
              CHILDREN; INDIAN AND ALASKA NATIVE EDUCATION

 Part A--Education of Limited English Proficient and Immigrant Children

Sec. 301. Programs authorized.
Sec. 302. Conforming amendment to Department of Education Organization 
Act.

               Part B--Indian and Alaska Native Education

Sec. 311. Elementary and Secondary Education Act of 1965.
Sec. 312. Alaska Native education.
Sec. 313. Amendments to the education amendments of 1978.
Sec. 314. Tribally Controlled Schools Act of 1988.

  TITLE IV--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                      Part A--Innovative Programs

Sec. 401. Promoting informed parental choice and innovative programs.
Sec. 402. Continuation of awards.

                     Part B--Public Charter Schools

Sec. 411. Public charter schools.
Sec. 412. Continuation of awards.

     Part C--Magnet Schools Assistance; Women's Educational Equity

Sec. 421. Magnet schools assistance.
Sec. 422. Women's educational equity.
Sec. 423. Continuation of awards.

                     TITLE V--21st CENTURY SCHOOLS

Sec. 501. Safe schools.

                      TITLE VI--IMPACT AID PROGRAM

Sec. 601. Payments under section 8002 with respect to fiscal years in 
which insufficient funds are appropriated.
Sec. 602. Calculation of payment under section 8003 for small local 
educational agencies.
Sec. 603. Construction.
Sec. 604. State consideration of payments in providing State aid.
Sec. 605. Authorization of appropriations.
Sec. 606. Redesignation of program.

                       TITLE VII--ACCOUNTABILITY

Sec. 701. Flexibility and accountability.

                     TITLE VIII--GENERAL PROVISIONS

Sec. 801. General provisions.
Sec. 802. Comprehensive regional assistance centers.
Sec. 803. National diffusion network.
Sec. 804. Eisenhower regional mathematics and science education 
consortia.
Sec. 805. Technology-based technical assistance.
Sec. 806. Regional technical support and professional development.

                   TITLE IX--MISCELLANEOUS PROVISIONS

                    Part A--Amendments to Other Acts

               SUBPART 1--NATIONAL EDUCATION STATISTICS ACT

Sec. 901. Amendment to NESA.

                       SUBPART 2--HOMELESS EDUCATION

Sec. 911. Short title.
Sec. 912. Findings.
Sec. 913. Purpose.
Sec. 914. Education for homeless children and youth.
Sec. 915. Technical amendment.

                            Part B--Repeals

Sec. 921. Repeals.

SEC. 5. EFFECTIVE DATE.

  Except as otherwise specifically provided in this Act, this Act, and 
the amendments made by this Act, shall take effect on October 1, 2001, 
or on the date of the enactment of this Act, whichever occurs later.

    TITLE I--IMPROVING THE ACADEMIC PERFORMANCE OF THE DISADVANTAGED

                         PART A--BASIC PROGRAM

SEC. 101. DISADVANTAGED CHILDREN MEET HIGH ACADEMIC STANDARDS.

  Section 1001 is amended to read as follows:

``SEC. 1001. FINDINGS; STATEMENT OF PURPOSE; AND RECOGNITION OF NEED.

  ``(a) Findings.--Congress finds the following:
          ``(1) The Constitution of the United States reserves to the 
        States and to the people the responsibility for the general 
        supervision of public education in kindergarten through the 
        twelfth grade.
          ``(2) States, local educational agencies and schools should 
        be given maximum flexibility in exchange for greater academic 
        accountability, and be given greater freedom to build upon 
        existing innovative approaches for education reform.
          ``(3) The best education decisions are made by those who know 
        the students and who are responsible for implementing the 
        decisions.
          ``(4) Educators and parents should retain the right and 
        responsibility to educate their pupils and children free of 
        excessive regulation by the Federal Government.
          ``(5) The Supreme Court has regarded the right of parents to 
        direct the upbringing of their children as a fundamental right 
        implicit in the concept of ordered liberty within the 14th 
        Amendment to the Constitution, as specified in Meyer v. 
        Nebraska, 262 U.S. 390 (1923), and Pierce v. Society of 
        Sisters, 268 U.S. 510 (1925).
          ``(6) Schools that enroll high concentrations of children 
        living in poverty face the greatest challenges, but effective 
        educational strategies based on scientifically based research 
        can succeed in educating children to high academic standards.
          ``(7) High-poverty schools are much more likely to be 
        identified as failing to meet State academic standards for 
        satisfactory progress. As a result, these schools are generally 
        the most in need of additional resources and technical 
        assistance to build the capacity of these schools to address 
        the many needs of their students.
          ``(8) The educational progress of children participating in 
        programs under this title is closely associated with their 
        being taught by a highly qualified staff, particularly in 
        schools with the highest concentrations of poverty, where 
        paraprofessionals, uncertified teachers, and teachers teaching 
        out of field frequently provide instructional services.
          ``(9) Congress and the public would benefit from additional 
        data evaluating the efficacy of the Elementary and Secondary 
        Education Act of 1965.
          ``(10) Schools operating programs assisted under this part 
        must be held accountable for the educational achievement of 
        their students, when those students fail to demonstrate 
        progress in achieving high academic standards, local 
        educational agencies and States must take significant actions 
        to improve the educational opportunities available to them.
  ``(b) Purpose and Intent.--The purpose and intent of this title are 
to ensure that all children have a fair and equal opportunity to obtain 
a high-quality education.
  ``(c) Recognition of Need.--The Congress recognizes the following:
          ``(1) Educational needs are particularly great for low-
        achieving children in our Nation's highest-poverty schools, 
        children with limited English proficiency, children of migrant 
        workers, children with disabilities, Indian children, children 
        who are neglected or delinquent, and young children who are in 
        need of reading assistance and family literacy assistance.
          ``(2) Despite more than 3 decades of Federal assistance, a 
        sizable achievement gap remains between minority and 
        nonminority students, and between disadvantaged students and 
        their more advantaged peers.
          ``(3) Too many students attend local schools that fail to 
        provide them with a quality education, and are given no 
        alternatives to enable them to receive a quality education.
          ``(4) States, local educational agencies, and schools need to 
        be held accountable for improving the academic achievement of 
        all students, and for identifying and turning around low-
        performing schools.
          ``(5) States and local educational agencies need to ensure 
        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, parents, and administrators can 
        measure progress against common expectations for student 
        academic achievement.
          ``(6) Federal education assistance is intended not only to 
        increase pupil achievement overall, but also more specifically 
        and importantly, to help ensure that all students, especially 
        the disadvantaged, meet challenging academic achievement 
        standards. It can only be determined if schools, local 
        educational agencies, and States are reaching this goal if 
        student achievement results are reported specifically by 
        disadvantaged and minority status.''.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

  Section 1002 is amended to read as follows:

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) Local Educational Agency Grants.--For the purpose of carrying 
out part A, other than section 1120(e), there are authorized to be 
appropriated $11,500,000,000 for fiscal year 2002, $13,000,000,000 for 
fiscal year 2003, $14,500,000,000 for fiscal year 2004, $16,000,000,000 
for fiscal year 2005, and $17,200,000,000 for fiscal year 2006.
  ``(b) Student Reading Skills Improvement Grants.--
          ``(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 4 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 4 succeeding fiscal years.
          ``(3) Even start.--For the purpose of carrying out subpart 3 
        of part B, there are authorized to be appropriated $275,000,000 
        for fiscal year 2002 and such sums as may be necessary for each 
        of the 4 succeeding fiscal years.
          ``(4) Inexpensive book distribution program.--For the purpose 
        of carrying out subpart 4 of part B, there are authorized to be 
        appropriated such sums as may be necessary for fiscal year 2002 
        and each of the 4 succeeding fiscal years.
  ``(c) Education of Migratory Children.--For the purpose of carrying 
out part C, there are authorized to be appropriated $420,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 4 
succeeding fiscal years.
  ``(d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk of Dropping Out.--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 4 succeeding fiscal years.
  ``(e) Comprehensive School Reform.--For the purpose of carrying out 
part F, there are authorized to be appropriated $260,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 4 
succeeding fiscal years.
  ``(f) Rural Education.--For the purpose of carrying out part G, there 
are authorized to be appropriated $300,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of 4 succeeding fiscal years to 
be distributed equally between subparts 1 and 2.
  ``(g) Capital Expenses.--For the purpose of carrying out section 
1120(e), there are authorized to be appropriated $6,000,000 for fiscal 
year 2002, and such sums as may be necessary for fiscal year 2003.
  ``(h) Federal Activities.--
          ``(1) Sections 1501 and 1502.--(A) For the purpose of 
        carrying out section 1501, there are authorized to be 
        appropriated $9,000,000 for fiscal year 2002 and such sums as 
        may be necessary for each of the 4 succeeding fiscal years.
          ``(B) For the purpose of carrying out section 1502, there are 
        authorized to be appropriated such sums as may be necessary for 
        fiscal year 2002 and for each of the 4 succeeding fiscal years.
          ``(2) Section 1503.--For the purpose of carrying out section 
        1503, there are authorized to be appropriated such sums as may 
        be necessary for fiscal year 2002 and for each of the 4 
        succeeding fiscal years.
  ``(i) State Administration.--
          ``(1) State reservation.--Each State may reserve, from the 
        sum of the amounts it receives under parts A, C, and D of this 
        title, an amount equal to the greater of 1 percent of the 
        amount it received under such parts for fiscal year 2001, or 
        $400,000 ($50,000 for each outlying area), including any funds 
        it receives under paragraph (2), to carry out administrative 
        duties assigned under parts A, C, and D.
          ``(2) Authorization of appropriations.--There are authorized 
        to be appropriated $10,000,000 for fiscal year 2002 and such 
        sums as may be necessary for each of the 4 succeeding fiscal 
        years for additional State administration grants. Any such 
        additional grants shall be allocated among the States in 
        proportion to the sum of the amounts received by each State for 
        that fiscal year under parts A, C, and D of this title.
          ``(3) Special rule.--The amount received by each State under 
        paragraphs (1) and (2) may not exceed the amount of State funds 
        expended by the State educational agency to administer 
        elementary and secondary education programs in such State.
  ``(j) Assistance for Local School Improvement.--
          ``(1) Program authorized.--The Secretary shall award grants 
        to States to provide subgrants to local educational agencies 
        for the purpose of providing assistance for school improvement 
        consistent with section 1116. Such grants shall be allocated 
        among States, the Bureau of Indian Affairs, and the outlying 
        areas, in proportion to the grants received by the State, the 
        Bureau of Indian Affairs, and the outlying areas for the fiscal 
        year under parts A, C, and D of this title. The Secretary shall 
        expeditiously allocate 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 the enactment of the No Child Left Behind Act of 
        2001.
          ``(2) Reallocations.--If a State does not apply for funds 
        under this subsection, the Secretary shall reallocate such 
        funds to other States in the same proportion funds are 
        allocated under paragraph (1).
          ``(3) 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 has submitted such information as part of its State plan 
        under this part. Each State plan shall describe how such funds 
        will be allocated to ensure that the State educational agency 
        and local educational agencies comply with school improvement, 
        corrective action, and restructuring requirements of section 
        1116.
          ``(4) 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 to 
                each participating school;
                  ``(B) integrated with funds awarded by the State 
                under this Act; and
                  ``(C) renewable for 2 additional 1-year periods if 
                schools are making yearly progress consistent with 
                State and local educational agency plans developed 
                under section 1116.
          ``(5) Priority.--The State, in awarding such grants, shall 
        give priority to local educational agencies with the lowest 
        achieving schools, that demonstrate the greatest need for such 
        funds, and that demonstrate the strongest commitment to making 
        sure such funds are used to provide adequate resources to 
        enable the lowest achieving schools to meet the yearly progress 
        goals under State and local school improvement, corrective 
        action, and restructuring plans under section 1116.
          ``(6) Administrative costs.--A State educational agency that 
        receives a grant award under this subsection may reserve not 
        more than 5 percent of such award for administration, 
        evaluation, and technical assistance expenses.
          ``(7) 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 yearly progress goals under State and local 
        school improvement, corrective action, and restructuring plans 
        under section 1116.
          ``(8) Authorization of appropriations.--For the purpose of 
        carrying out this subsection, there are authorized to be 
        appropriated $500,000,000 for fiscal year 2002 and such sums as 
        may be necessary for each of the 4 succeeding fiscal years.''.

SEC. 103. RESERVATION FOR SCHOOL IMPROVEMENT.

  Section 1003 is amended to read as follows:

``SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

  ``(a) State Reservations.--Each State shall reserve 1 percent of the 
amount it receives under subpart 2 of part A for fiscal years 2002 and 
2003, and 3 percent of the amount received under such subpart for 
fiscal years 2004 through 2006, 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 shall allocate at least 95 
percent of that amount directly to local educational agencies for 
schools identified for school improvement, corrective action, and 
restructuring under section 1116(c) that have the greatest need for 
that assistance in amounts sufficient to have a significant impact in 
improving those schools.
  ``(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) have 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 yearly progress goals 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, it may allocate the excess amount to local educational 
agencies in accordance with either or both--
          ``(1) the relative allocations it 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 under subsection (a) 
in any given fiscal year shall not decrease the amount of State funds 
each local educational agency receives below the amount received by 
such agency under subpart 2 in the preceding fiscal year.''.

SEC. 104. BASIC PROGRAMS.

  The heading for part A of title I and sections 1111 through 1115 are 
amended to read as follows:

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

                ``Subpart 1--Basic Program Requirements

``SEC. 1111. STATE PLANS.

  ``(a) Plans Required.--
          ``(1) In general.--Any State desiring to receive a grant 
        under this part shall submit to the Secretary, by March 1, 
        2002, a plan, developed 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 (20 U.S.C. 1400 et seq.), the 
        Carl D. Perkins Vocational and Technical Education Act of 1998 
        (20 U.S.C. 2301 et seq.), the Head Start Act (42 U.S.C. 9831 et 
        seq.), and the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11431 et seq.).
          ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 8302.
  ``(b) Academic Standards, Academic Assessments, and Accountability.--
          ``(1) Challenging academic standards.--
                  ``(A) Each State plan shall demonstrate that the 
                State has adopted challenging academic content 
                standards and challenging student academic achievement 
                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) 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) The State shall have such academic standards 
                for all public elementary 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 
                science (beginning in the 2005-2006 school year), which 
                shall include the same knowledge, skills, and levels of 
                achievement expected of all children.
                  ``(D) Academic 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 2 levels of high 
                                performance (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 
                                performance (basic) to provide complete 
                                information about the progress of the 
                                lower performing children toward 
                                achieving to the proficient and 
                                advanced levels of performance.
                  ``(E) 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) Nothing in this part shall prohibit a State 
                from revising 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 
                statewide State accountability system that has been or 
                will be effective in ensuring that all local 
                educational agencies, public elementary schools, and 
                public secondary schools make adequate yearly progress 
                as defined under subparagraph (B). Each State 
                accountability system shall--
                          ``(i) be based on the academic standards and 
                        academic assessments adopted under paragraphs 
                        (1) and (4) and take into account the 
                        performance of all public school students;
                          ``(ii) be the same as the accountability 
                        system the State uses for all public schools or 
                        all local educational agencies in the State, 
                        except that public schools and local 
                        educational agencies not participating under 
                        this part are not subject to the requirements 
                        of section 1116; and
                          ``(iii) include rewards and sanctions the 
                        State will use to hold local educational 
                        agencies and public schools accountable for 
                        student achievement and for ensuring that they 
                        make adequate yearly progress in accordance 
                        with the State's definition under subparagraph 
                        (B).
                  ``(B) Adequate yearly progress.--Each State plan 
                shall demonstrate, based on academic assessments 
                described under paragraph (4), what constitutes 
                adequate yearly progress of the State, and of public 
                schools and local educational agencies in the State, 
                toward enabling all public 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 agency, and 
                school.
                  ``(C) Definition.--`Adequate yearly progress' shall 
                be defined by the State in a manner that--
                          ``(i) applies the same high academic 
                        standards of academic performance to all public 
                        school students in the State;
                          ``(ii) measures the progress of public 
                        schools and local educational agencies based 
                        primarily on the academic assessments described 
                        in paragraph (4);
                          ``(iii) measures the student dropout rate, as 
                        defined for the Common Core of Data maintained 
                        by the National Center for Education Statistics 
                        established under section 403 of the National 
                        Education Statistics Act of 1994 (20 U.S.C. 
                        9002);
                          ``(iv) includes separate annual numerical 
                        objectives for continuing and significant 
                        improvement in each of the following (except 
                        that disaggregation of data under subclauses 
                        (II) and (III) 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 
                        individually identifiable information about an 
                        individual student):
                                  ``(I) The achievement of all public 
                                school students.
                                  ``(II) The achievement of--
                                          ``(aa) economically 
                                        disadvantaged students;
                                          ``(bb) students from major 
                                        racial and ethnic groups;
                                          ``(cc) students with 
                                        disabilities; and
                                          ``(dd) students with limited 
                                        English proficiency;
                                  ``(III) solely for the purpose of 
                                determining adequate yearly progress of 
                                the State, the acquisition of English 
                                language proficiency by children with 
                                limited English proficiency;
                          ``(v) at the State's discretion, may also 
                        include other academic measures such as 
                        promotion, completion of college preparatory 
                        courses, and high school completion (and for 
                        individual local educational agencies and 
                        schools, the acquisition of English language 
                        proficiency by children with limited English 
                        proficiency), except that inclusion of such 
                        other measures may not change which schools or 
                        local educational agencies would otherwise be 
                        subject to improvement or corrective action 
                        under section 1116 if the discretionary 
                        indicators were not included; and
                          ``(vi) includes a timeline that--
                                  ``(I) uses as a baseline year the 
                                year following the date of enactment of 
                                the No Child Left Behind Act of 2001;
                                  ``(II) establishes a target year by 
                                which all members of each group of 
                                students described in subclauses (I) 
                                and (II) of clause (iii) shall meet or 
                                exceed the State's proficient level of 
                                academic performance on the State 
                                academic assessment used for the 
                                purposes of this section and section 
                                1116, except that the target year shall 
                                not be more than 12 years from the 
                                baseline year; and
                                  ``(III) for each year until and 
                                including the target year, establishes 
                                annual goals for the academic 
                                performance of each group of students 
                                described in subclauses (I) and (II) of 
                                clause (iii) on the State academic 
                                assessment that--
                                          ``(aa) indicates a minimum 
                                        percentage of students who must 
                                        meet the proficient level on 
                                        the academic assessment, such 
                                        that the minimum percentage is 
                                        the same for each group of 
                                        students described in 
                                        subclauses (I) and (II) of 
                                        clause (iii); or
                                          ``(bb) indicates an annual 
                                        minimum amount by which the 
                                        percentage of students who meet 
                                        the proficient level among each 
                                        group of students described in 
                                        subclauses (I) and (II) of 
                                        clause (iii) shall increase, 
                                        such that the minimum increase 
                                        for each group is equal to or 
                                        greater than 100 percent minus 
                                        the percentage of the group 
                                        meeting the proficient level in 
                                        the baseline year divided by 
                                        the number of years from the 
                                        baseline year to the target 
                                        year established under clause 
                                        (I).
                  ``(D) Annual improvement for schools.--For a school 
                to make adequate yearly progress under subparagraph 
                (A), not less than 95 percent of each group of students 
                described in subparagraph (C)(iii)(II) who are enrolled 
                in the school are required to take the academic 
                assessments, consistent with section 612(a)(17)(A) of 
                the Individuals with Disabilities Education Act (20 
                U.S.C. 1412(a)(17)(A)) and paragraph (4)(G)(ii), on 
                which adequate yearly progress is based.
                  ``(E) Public notice and comment.--Each State shall 
                ensure that in developing its plan, it diligently seeks 
                public comment from a range of institutions and 
                individuals in the State with an interest in improved 
                student achievement and that the State makes and will 
                continue to make a substantial effort to ensure that 
                information under this part is widely known and 
                understood by the public, parents, teachers, and school 
                administrators throughout the State. Such efforts shall 
                include, at a minimum, publication of such information 
                and explanatory text, broadly to the public through 
                such means as the Internet, the media, and public 
                agencies.
          ``(3) 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 
        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, 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 which 
                receives grants under this part will adopt curriculum 
                content and student academic achievement standards, and 
                academic assessments aligned with such standards, which 
                meet all of the criteria in this subsection and any 
                regulations regarding such standards and assessments 
                which the Secretary may publish, and which are 
                applicable to all students served by each such local 
                educational agency.
          ``(4) Academic assessments.--Each State plan shall 
        demonstrate that the State has implemented a set of high-
        quality, yearly student academic assessments that include, at a 
        minimum, academic assessments in mathematics, and reading or 
        language arts, 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 enabling all children to 
        meet the State's challenging student academic achievement 
        standards. Such assessments shall--
                  ``(A) be the same academic assessments used to 
                measure the performance of all children;
                  ``(B) be aligned with the State's challenging content 
                and student academic achievement standards and provide 
                coherent information about student attainment of such 
                standards;
                  ``(C) be used for purposes for which such assessments 
                are valid and reliable, and be consistent with 
                relevant, recognized professional and technical 
                standards for such assessments;
                  ``(D) for the purposes of this part, be scored to 
                ensure the performance of each student is evaluated 
                solely against the State's challenging academic content 
                standards and not relative to the score of other 
                students;
                  ``(E) except as otherwise provided for grades 3 
                through 8 under subparagraph (G), measure the 
                proficiency of students in, at a minimum, mathematics 
                and reading or language arts, and be administered not 
                less than once during--
                          ``(i) grades 3 through 5;
                          ``(ii) grades 6 through 9; and
                          ``(iii) grades 10 through 12;
                  ``(F) involve multiple up-to-date measures of student 
                achievement, including measures that assess critical 
                thinking skills and understanding;
                  ``(G) beginning not later than school year 2004-2005, 
                measure the performance of students against the 
                challenging State 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 it will complete 
                implementation within the additional 1-year period;
                  ``(H) provide for--
                          ``(i) the participation in such assessments 
                        of all students;
                          ``(ii) the reasonable adaptations and 
                        accommodations for students with disabilities 
                        defined under 602(3) of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1401(3)) 
                        necessary to measure the achievement of such 
                        students relative to State content and State 
                        student academic achievement standards;
                          ``(iii) the inclusion of limited English 
                        proficient students who shall be assessed, to 
                        the extent practicable, in the language and 
                        form most likely to yield accurate and reliable 
                        information on what such students know and can 
                        do in content areas;
                          ``(iv) notwithstanding clause (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 3 or 
                        more consecutive school years, except if the 
                        local educational agency determines, on a case-
                        by-case individual basis, that academic 
                        assessments in another language and form would 
                        likely yield more accurate and reliable 
                        information on what such students know and can 
                        do, the local educational agency may assess 
                        such students in the appropriate language other 
                        than English for 1 additional year;
                  ``(I) 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;
                  ``(J) produce individual student reports to be 
                provided to parents, which include academic assessment 
                scores, or other information on the attainment of 
                student academic achievement standards; and
                  ``(K) enable results to be disaggregated within each 
                State, local educational agency, and school by gender, 
                by each major racial and ethnic group, by 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.
          ``(5) Special rule.--Academic assessment measures in addition 
        to those in paragraph (4) that do not meet the requirements of 
        such paragraph may be included as additional measures, but may 
        not be used in lieu of the academic assessments required in 
        paragraph (4). Results on any additional measures under this 
        paragraph shall not change which schools or local educational 
        agencies would otherwise be subject to improvement or 
        corrective action under section 1116 if the additional measures 
        were not included.
          ``(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.--
        Each State plan shall demonstrate that local educational 
        agencies in the State will, beginning no later than school year 
        2002-2003, annually assess the English proficiency of all 
        students with limited English proficiency in their schools.
          ``(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(c), 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 
                standards.
                  ``(C) such other factors as the State considers 
                appropriate to provide students an opportunity to 
                achieve the knowledge and skills described in the 
                challenging academic content standards adopted by the 
                State.
          ``(9) Use of academic assessment results to improve student 
        achievement.--Each State plan shall describe how the State will 
        ensure that the results of the State assessments described in 
        paragraph (4)--
                  ``(A) will be provided promptly, but not later than 
                the end of the school year (consistent with 1116, to 
                local educational agencies, schools, and teachers in a 
                manner that is clear and easy to understand; and
                  ``(B) be used by those local educational agencies, 
                schools, and teachers to improve the educational 
                achievement of individual students.
          ``(10) Technical assistance on academic assessment 
        requirements.--The Secretary shall provide technical assistance 
        to interested States regarding how to meet the requirements of 
        paragraph (4).
  ``(c) Other Provisions To Support Teaching and Learning.--Each State 
plan shall contain assurances that--
          ``(1) the State shall produce, beginning with the 2003-2004 
        school year, the annual State report cards described in 
        subsection (h)(1);
          ``(2) the State will participate, beginning in school year 
        2002-2003, in annual academic assessments of 4th and 8th grade 
        reading and mathematics under--
                  ``(A) the State National Assessment of Educational 
                Progress carried out under section 411(b)(2) of the 
                National Education Statistics Act of 1994 (20 U.S.C. 
                9010(b)(2)); or
                  ``(B) another academic assessment selected by the 
                State which meets the criteria of section 
                7101(b)(1)(B)(ii) of this Act;
          ``(3) the State educational agency shall work with other 
        agencies, including educational service agencies or other local 
        consortia, and institutions to provide technical assistance to 
        local educational agencies and schools to carry out the State 
        educational agency's responsibilities under this part, 
        including technical assistance in providing professional 
        development under section 1119A and technical assistance under 
        section 1117; and
          ``(4)(A) where educational service agencies exist, the State 
        educational agency shall consider providing professional 
        development and technical assistance through such agencies; and
          ``(B) where educational service agencies do not exist, the 
        State educational agency shall consider providing professional 
        development and technical assistance through other cooperative 
        agreements such as through a consortium of local educational 
        agencies;
          ``(5) the State educational agency shall 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;
          ``(6) the State educational agency shall provide the least 
        restrictive and burdensome regulations for local educational 
        agencies and individual schools participating in a program 
        assisted under this part;
          ``(7) the State educational agency shall 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 performance;
          ``(8) 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;
          ``(9) the State educational agency shall 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;
          ``(10) the State educational agency has involved the 
        committee of practitioners established under section 1603(b) in 
        developing the plan and monitoring its implementation;
          ``(11) the State educational agency shall inform local 
        educational agencies of the local educational agency's 
        authority to transfer funds under title VII, to obtain waivers 
        under title VIII and, if the State is an Ed-Flex Partnership 
        State, to obtain waivers under the Education Flexibility 
        Partnership Act of 1999 (20 U.S.C. 5891a et seq.); and
          ``(12) the State educational agency shall 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 high school diploma or its recognized equivalent or who have 
        low levels of literacy.
  ``(d) Peer Review and Secretarial Approval.--The Secretary shall--
          ``(1) establish a peer review process to assist in the review 
        of State plans;
          ``(2) 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;
          ``(3) 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;
          ``(4) not decline to approve a State's plan before--
                  ``(A) offering the State an opportunity to revise its 
                plan;
                  ``(B) providing technical assistance in order to 
                assist the State to meet the requirements under 
                subsections (a), (b), and (c); and
                  ``(C) providing a hearing; and
          ``(5) 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 1 or more 
        specific elements of the State's academic content standards or 
        to use specific academic assessment instruments or items.
  ``(e) Duration of the Plan.--
          ``(1) In general.--Each State plan shall--
                  ``(A) be submitted for the first year for which this 
                part is in effect after the date of the enactment of 
                the No Child Left Behind Act of 2001;
                  ``(B) remain in effect for the duration of the 
                State's participation under this part; and
                  ``(C) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes in the State's 
                strategies and programs under this part.
          ``(2) Additional information.--If the State makes significant 
        changes in its plan, such as the adoption of new or revised 
        State academic content standards and State student achievement 
        standards, new academic assessments, or a new definition of 
        adequate yearly progress, the State shall submit such 
        information to the Secretary.
  ``(f) Limitation on Conditions.--Officers and employees of the 
Federal Government are prohibited from mandating, directing, or 
controlling a State, local educational agency, or school's specific 
instructional content or student academic achievement standards and 
academic assessments, curriculum, or program of instruction, as a 
condition of eligibility to receive funds under this part.
  ``(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 it 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 for State administration and 
                activities in each year until the Secretary determines 
                that the State meets those requirements;
                  ``(B) No extension.--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), the 
        Secretary may withhold funds for State administration until the 
        Secretary determines that the State has fulfilled those 
        requirements.
  ``(h) Reports.--
          ``(1) Annual state report card.--
                  ``(A) In general.--Not later than the beginning of 
                the 2003-2004 school year, a State that receives 
                assistance under this Act shall prepare and disseminate 
                an annual State report card.
                  ``(B) Implementation.--The State report card shall 
                be--
                          ``(i) concise; and
                          ``(ii) presented in a format and manner that 
                        parents can understand, and which, to the 
                        extent practicable, shall be in a language the 
                        parents can understand.
                  ``(C) Public dissemination.--The State shall widely 
                disseminate the information described in subparagraph 
                (D) to all schools and local educational agencies in 
                the State and make the information broadly available 
                through public means, such as posting on the Internet, 
                distribution to the media, and distribution through 
                public agencies.
                  ``(D) 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)(4)(F) (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 the number of students in a category 
                        is insufficient to yield statistically reliable 
                        information or the results would reveal 
                        individually identifiable information about an 
                        individual student);
                          ``(ii) the percentage of students not tested 
                        (disaggregated by the same categories and 
                        subject to the same exception described in 
                        clause (i));
                          ``(iii) the percentage of students who 
                        graduate from high school within 4 years of 
                        starting high school;
                          ``(iv) the percentage of students who take 
                        and complete advanced placement courses as 
                        compared to the population of the students 
                        eligible to take such courses, and the rate of 
                        passing of advanced placement tests;
                          ``(v) the professional qualifications of 
                        teachers in the aggregate, including the 
                        percentage of teachers teaching with emergency 
                        or provisional qualifications, and the 
                        percentage of class sections not taught by 
                        fully qualified teachers; and
                          ``(vi) such other information (such as 
                        dropout and school attendance rates; and 
                        average class size by grade level) as the State 
                        believes will best provide parents, students, 
                        and other members of the public with 
                        information on the progress of each of the 
                        State's public schools.
          ``(2) Content of local educational agency report cards.--
                  ``(A) Minimum requirements.--The State shall ensure 
                that each local educational agency collects appropriate 
                data and includes in its annual report for each of its 
                schools, at a minimum--
                          ``(i) the information described in paragraph 
                        (1)(D) for each local educational agency and 
                        school; and
                          ``(ii)(I) in the case of a local educational 
                        agency--
                                  ``(aa) the number and percentage of 
                                schools identified for school 
                                improvement and how long they have been 
                                so identified, including schools 
                                identified under section 1116(c) of 
                                this Act; and
                                  ``(bb) information that shows how 
                                students in its schools perform on the 
                                statewide academic assessment compared 
                                to students in the State as a whole; 
                                and
                          ``(II) in the case of a school--
                                  ``(aa) whether it has been identified 
                                for school improvement; and
                                  ``(bb) information that shows how its 
                                students performed on the statewide 
                                academic assessment compared to 
                                students in the local educational 
                                agency and the State as a whole.
                  ``(B) Other information.--A local educational agency 
                may include in its annual reports any other appropriate 
                information whether or not such information is included 
                in the annual State report.
                  ``(C) Public dissemination.--The local educational 
                agency shall, not later than the beginning of the 2003-
                2004 school year, publicly disseminate the information 
                described in this paragraph to all schools in the 
                district and to all parents of students attending those 
                schools (to the extent practicable, in a language they 
                can understand), and make the information broadly 
                available through public means, such as posting on the 
                Internet, distribution to the media, and distribution 
                through public agencies.
          ``(3) Pre-existing report cards.--A State 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 reports for the purpose 
        of this subsection, so long as any such report is modified, as 
        may be needed, to contain the information required by this 
        subsection.
          ``(4) Annual state report to the secretary.--Each State 
        receiving assistance under this Act shall report annually to 
        the Secretary, and make widely available within the State--
                  ``(A) beginning with school year 2001-2002, 
                information on the State's progress in developing and 
                implementing the academic assessment system described 
                in subsection (b)(4);
                  ``(B) beginning not later than school year 2004-2005, 
                information on the achievement of students on the 
                academic assessments required by that subsection, 
                including the disaggregated results for the categories 
                of students identified in subsection 
                (b)(2)(C)(iii)(II);
                  ``(C) beginning not later than school year 2002-2003, 
                information on the acquisition of English proficiency 
                by children with limited English proficiency; and
                  ``(D) 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.
          ``(5) Parents right-to-know.--
                  ``(A) 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 they may request, and shall provide the 
                parents upon 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 which parents may request under 
                subparagraph (A), a school which receives funds under 
                this part shall provide to each individual parent--
                          ``(i) information on the level of performance 
                        of the individual student for whom they are the 
                        parent in each of the State academic 
                        assessments as required under this part; and
                          ``(ii) timely notice that the student for 
                        whom they are the parent has been assigned, or 
                        has been taught for 4 or more consecutive weeks 
                        by, a teacher who is not fully 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.
          ``(6) Plan content.--A State shall include in its plan under 
        subsection (b) an assurance that it has in effect a policy that 
        meets the requirements of this section.
  ``(i) Privacy.--Information collected under this section shall be 
collected and disseminated in a manner that protects the privacy of 
individuals.

``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

  ``(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 (20 U.S.C. 1400 et seq.), the Carl 
        D. Perkins Vocational and Technical Education Act of 1998 (20 
        U.S.C. 2301 et seq.), the Head Start Act (42 U.S.C. 9831 et 
        seq.), 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 8305.
  ``(b) Plan Provisions.--In order to help low achieving children 
achieve high academic standards, each local educational agency plan 
shall include--
          ``(1) a description of additional high-quality student 
        academic assessments, if any, other than the academic 
        assessments described in the State plan under section 1111, 
        that the local educational agency and schools served under this 
        part will use to--
                  ``(A) determine the success of children served under 
                this part in meeting the State's student academic 
                achievement standards and provide information to 
                teachers, parents, and students on the progress being 
                made toward meeting the State student academic 
                achievement standards described in section 
                1111(b)(1)(D)(ii);
                  ``(B) assist in diagnosis, teaching, and learning in 
                the classroom in ways that best enable low-achieving 
                children served under this title to meet State academic 
                standards and do well in the local curriculum; and
                  ``(C) determine what revisions are needed to projects 
                under this title so that such children meet the State's 
                student academic achievement standards;
          ``(2) at the local educational agency's discretion, a 
        description of any other indicators that will be used in 
        addition to the academic assessments described in paragraph (1) 
        for the uses described in such paragraph, except that results 
        on any discretionary indicators shall not change which schools 
        would otherwise be subject to improvement of corrective action 
        under section 1118 if the additional measures are not included;
          ``(3) a description of how the local educational agency will 
        provide additional educational assistance to individual 
        students assessed as needing help to achieve the State's 
        challenging academic standards;
          ``(4) a description of the strategy the local educational 
        agency will use to provide professional development for 
        teachers, and, if appropriate, pupil services personnel, 
        administrators, parents and other staff, including local 
        educational agency level staff in accordance with section 
        1119A;
          ``(5) 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--
                  ``(A) 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
                  ``(B) services for children with limited English 
                proficiency or with disabilities, migratory children 
                served under part C, neglected or delinquent youth, 
                Indian children served under part B of title III, 
                homeless children, and immigrant children in order to 
                increase program effectiveness, eliminate duplication, 
                and reduce fragmentation of the instructional program;
          ``(6) 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 
        Education Statistics Act of 1994 (20 U.S.C. 9010(b)(2)), or in 
        another academic assessment pursuant to the State decision 
        under section 7101(b)(1)(B)(ii);
          ``(7) a description of the poverty criteria that will be used 
        to select school attendance areas under section 1113;
          ``(8) a description of how teachers, in consultation with 
        parents, administrators, and pupil services personnel, in 
        targeted assistance schools under section 1115, will identify 
        the eligible children most in need of services under this part;
          ``(9) 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, for neglected and delinquent children 
        in community day school programs, and for homeless children;
          ``(10) 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;
          ``(11) 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 (42 
        U.S.C. 9836), agencies operating Even Start programs, Early 
        Reading First, or another comparable public early childhood 
        development program;
          ``(12) a description of the actions the local educational 
        agency will take to assist its low-performing schools, 
        including schools identified under section 1116 as in need of 
        improvement;
          ``(13) a description of the actions the local educational 
        agency will take to implement public school choice, consistent 
        with the requirements of section 1116;
          ``(14) a description how the local educational agency will 
        meet the requirements of section 1119(b)(1); and
          ``(15) a description of the services the local educational 
        agency will provide homeless children, including services 
        provided with funds reserved under section 1113(f)(3)(A).
  ``(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 
                corrective actions under paragraphs (6) and (7) of 
                section 1116(b);
                  ``(E) provide services to eligible children attending 
                private elementary 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 academic achievement 
                standards established under section 641A(a) of the Head 
                Start Act (42 U.S.C. 9836a(a));
                  ``(H) comply with the requirements of section 1119 
                regarding the qualifications of teachers and 
                paraprofessionals;
                  ``(I) inform eligible schools of the local 
                educational agency's authority to obtain waivers on the 
                school's behalf under title VIII of this Act, and if 
                the State is an Ed-Flex Partnership State, to obtain 
                waivers under the Education Flexibility Partnership Act 
                of 1999; and
                  ``(J) coordinate and collaborate, to the extent 
                feasible and necessary as determined by the local 
                educational agency, with other agencies providing 
                services to children, youth, and families.
          ``(2) Special rule.--In carrying out subparagraph (G) of 
        paragraph (1), the Secretary--
                  ``(A) shall consult with the Secretary of Health and 
                Human Services on the implementation of such 
                subparagraph 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 academic achievement standards as in 
                effect under section 641A(a) of the Head Start Act (42 
                U.S.C. 9836a(a)), 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.--The provisions of this subsection 
        shall not apply to preschool programs using the Even Start 
        model or to Even Start programs which 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 the enactment of the No Child Left Behind Act of 2001 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.
  ``(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 and Consent for English Language 
Instruction.--
          ``(1) Notification.--If a local educational agency uses funds 
        under this part to provide English language instruction to 
        limited English proficient children, the agency shall inform a 
        parent or the parents of a child participating in an English 
        language instruction program for limited English proficient 
        children assisted under this part of--
                  ``(A) the reasons for the identification of the child 
                as being in need of English language instruction;
                  ``(B) the child's level of English proficiency, how 
                such level was assessed, and the status of the child's 
                academic achievement;
                  ``(C) how the English language instruction program 
                will specifically help the child acquire English and 
                meet age-appropriate academic standards for grade 
                promotion and graduation;
                  ``(D) what the specific exit requirements are for the 
                program;
                  ``(E) the expected rate of transition from the 
                program into a classroom that is not tailored for 
                limited English proficient children; and
                  ``(F) the expected rate of graduation from high 
                school for students in the program if funds under this 
                part are used for children in secondary schools.
          ``(2) Consent.--
                  ``(A) Agency requirements.--
                          ``(i) Informed consent.--For a child who has 
                        been identified as limited English proficient 
                        prior to the beginning of a school year, each 
                        local educational agency that receives funds 
                        under this part shall make a reasonable and 
                        substantial effort to obtain informed parental 
                        consent prior to the placement of a child in an 
                        English language instruction program for 
                        limited English proficient children funded 
                        under this part if the program does not include 
                        classes which exclusively or almost exclusively 
                        use the English language in instruction.
                          ``(ii) Written consent not obtained.--If 
                        written consent is not obtained, the local 
                        educational agency shall maintain a written 
                        record that includes the date and the manner in 
                        which such informed consent was sought, 
                        including the specific efforts made to obtain 
                        such consent.
                          ``(iii) Proof of effort.--Notice, in an 
                        understandable form, of specific efforts made 
                        to obtain written consent and a copy of the 
                        written record required in clause (ii) shall be 
                        mailed or delivered in writing to a parent, 
                        parents, or guardian of a child prior to 
                        placing the child in a program described in 
                        clause (i) and shall include a final request 
                        for parental consent for such services. After 
                        such notice has been mailed or delivered in 
                        writing, the local educational agency shall 
                        provide appropriate educational services.
                          ``(iv) Special rule applicable during 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 make a reasonable and 
                        substantial effort to obtain parental consent 
                        under this clause. For such children, the 
                        agency shall document, in writing, its specific 
                        efforts made to obtain such consent prior to 
                        placing the child in a program described in 
                        clause (i). After such documentation has been 
                        made, the local educational agency shall 
                        provide appropriate educational services to 
                        such child. The proof of documentation shall be 
                        mailed or delivered in writing to a parent or 
                        parents of the child in a timely manner and 
                        shall include information on how to have their 
                        child immediately removed from the program upon 
                        their request. Nothing in this clause shall be 
                        construed as exempting a local educational 
                        agency from complying with the notification 
                        requirements of subsection (g)(1) and the 
                        consent requirements of this paragraph.
          ``(3) Parental rights.--A parent or the parents of a child 
        participating in an English language instruction program for 
        limited English proficient children assisted under this part 
        shall--
                  ``(A) select among methods of instruction, if more 
                than one method is offered in the program; and
                  ``(B) have the right to have their child immediately 
                removed from the program upon their request.
          ``(4) Receipt of information.--A parent or the parents of a 
        limited English proficient child who is identified for 
        participation in an English language instruction program for 
        limited English proficient children assisted under this part 
        shall receive, in a manner and form understandable to the 
        parent or parents, the information required by this subsection. 
        At a minimum, the parent or parents shall receive--
                  ``(A) timely information about English language 
                instruction programs for limited English proficient 
                children assisted under this part;
                  ``(B) if a parent or parents of a participating child 
                so desires, notice of opportunities for regular 
                meetings for the purpose of formulating and responding 
                to recommendations from the parent or parents; and
                  ``(C) procedural information for removing a child 
                from a program for limited English proficient children.
          ``(5) Basis for admission or exclusion.--Students shall not 
        be admitted to, or excluded from, any federally-assisted 
        education program on the basis of a surname or language-
        minority status.

``SEC. 1113. 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 in the local educational agency as a whole.
          ``(3) Local educational agency discretion.--
                  ``(A) In general.--Notwithstanding paragraph (2), a 
                local educational agency may--
                          ``(i) designate as eligible any school 
                        attendance area or school in which at least 35 
                        percent of the children are from low-income 
                        families;
                          ``(ii) 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;
                          ``(iii) designate and serve a school 
                        attendance area or school that is not eligible 
                        under subsection (b), but that was eligible and 
                        that was served in the preceding fiscal year, 
                        but only for 1 additional fiscal year; and
                          ``(iv) 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.
                  ``(B) Special rule.--Notwithstanding subparagraph 
                (A)(iv), the number of children attending private 
                elementary 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).
  ``(b) Ranking Order.--If funds allocated in accordance with 
subsection (f) are insufficient to serve all eligible school attendance 
areas, a local educational agency--
          ``(1) shall annually rank from highest to lowest according to 
        the percentage of children from low-income families in each 
        agency's eligible school attendance areas in the following 
        order--
                  ``(A) eligible school attendance areas in which the 
                concentration of children from low-income families 
                exceeds 75 percent; and
                  ``(B) all remaining eligible school attendance areas 
                in which the concentration of children from low-income 
                families is 75 percent or lower either by grade span or 
                for the entire local educational agency;
          ``(2) shall, within each category listed in paragraph (1), 
        serve schools in rank order from highest to lowest according to 
        the ranking assigned under paragraph (1);
          ``(3) notwithstanding paragraph (2), may give priority, 
        within each such category and in rank order from highest to 
        lowest subject to paragraph (4), to eligible school attendance 
        areas that serve children in elementary schools; and
          ``(4) not serve a school described in paragraph (1)(B) before 
        serving a school described in paragraph (1)(A).
  ``(c) Low-Income Measures.--In determining the number of children 
ages 5 through 17 who are from low-income families, the local 
educational agency shall apply the measures described in paragraphs (1) 
and (2) of this subsection:
          ``(1) Allocation to public school attendance areas.--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 (42 U.S.C. 1751 et seq.), 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 (f).
          ``(2) Allocation for equitable service to private school 
        students.--
                  ``(A) Calculation.--A local educational agency shall 
                have the final authority, consistent with section 1120 
                to calculate the number of private school children, 
                ages 5 through 17, who are low-income by--
                          ``(i) using the same measure of low-income 
                        used to count public school children;
                          ``(ii) 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 not available; or
                          ``(iii) 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 attendance area.
                  ``(B) Complaint process.--Any dispute regarding low-
                income data on private school students shall be subject 
                to the complaint process authorized in section 8505.
  ``(d) Exception.--This section (other than subsections (a)(3) and 
(f)) shall not apply to a local educational agency with a total 
enrollment of less than 1,500 children.
  ``(e) 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 (f), and permit such agency to 
treat as eligible, and serve, any school that children attend under a 
desegregation plan ordered by a State or court or approved by the 
Secretary, or such a plan that the agency continues to implement after 
it has expired, if--
          ``(1) the number of economically disadvantaged children 
        enrolled in the school is not less than 25 percent of the 
        school's total enrollment; and
          ``(2) 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.
  ``(f) 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 subsection (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) 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) 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) School improvement reservation.--In addition to the 
        funding a local educational agency receives under section 
        1003(b), a local educational agency may reserve such funds as 
        are necessary under this part to meet such agency's school 
        improvement responsibilities under section 1116, including 
        taking corrective actions under paragraphs (6) and (7) of 
        section 1116(b).
          ``(5) Financial incentives and rewards reservation.--A local 
        educational agency may reserve such funds as are necessary 
        under this part to provide financial incentives and rewards to 
        teachers who serve in schools eligible under subsection 
        (b)(1)(A) and identified for improvement under section 
        1116(b)(1) for the purpose of attracting and retaining 
        qualified and effective teachers.

``SEC. 1114. SCHOOLWIDE PROGRAMS.

  ``(a) Purpose.--The purpose of a schoolwide program under this 
section is--
          ``(1) to enable a local educational agency to consolidate 
        funds under this part with other Federal, State, and local 
        funds, to upgrade the entire educational program in a high 
        poverty school; and
          ``(2) to help ensure that all children in such a school meet 
        challenging State academic standards for student achievement, 
        particularly those children who are most at-risk of not meeting 
        those standards.
  ``(b) Use of Funds for Schoolwide Programs.--
          ``(1) In general.--A local educational agency may consolidate 
        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 to identify 
                particular children under this part as eligible to 
                participate in a schoolwide program or to provide 
                supplemental services to such children.
                  ``(B) Supplement 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 
                (c), 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, uses of Federal funds to 
                supplement, not supplant non-Federal funds, or the 
                distribution of funds to State or local educational 
                agencies that apply to the receipt of funds from such 
                programs.
                  ``(C) Records.--A school that consolidates 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 it 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 (c)(1)(D) in accordance with section 1119A for such 
        fiscal year, except that a school may enter into a consortium 
        with another school to carry out such activities.
  ``(c) 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 performance 
                of children in relation to the State academic content 
                standards and 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 achievement described in 
                        section 1111(b)(1)(D);
                          ``(ii) use effective methods and 
                        instructional strategies that are based upon 
                        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) 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; 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 fully qualified (as defined in 
                section 8101) teachers.
                  ``(D) In accordance with section 1119A and subsection 
                (b)(4), high quality and ongoing professional 
                development for teachers and paraprofessionals, and, 
                where appropriate, pupil services personnel, parents, 
                principals, 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 teachers to 
                high need schools, such as differential pay systems or 
                performance based pay.
                  ``(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.
                  ``(H) Measures to include teachers in the decisions 
                regarding the use of academic assessments described in 
                section 1111(b)(4) in order to provide information on, 
                and to improve, the performance 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) 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.
          ``(2) Plan.--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 
        effective date of the No Child Left Behind Act of 2001), a 
        comprehensive plan for reforming the total instructional 
        program in the school that--
                  ``(A) incorporates the components described in 
                paragraph (1);
                  ``(B) describes how the school will use resources 
                under this part and from other sources to implement 
                those components; and
                  ``(C) includes a list of State and local educational 
                agency programs and other Federal programs under 
                subsection (b)(3) that will be consolidated in the 
                schoolwide program.
          ``(3) Plan development.--The comprehensive plan shall be--
                  ``(A) developed during a 1-year period, unless--
                          ``(i) the local educational agency determines 
                        that less time is needed to develop and 
                        implement the schoolwide program; or
                          ``(ii) the school operated a schoolwide 
                        program on the day preceding the effective date 
                        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 after that date to reflect the 
                        provisions of this section;
                  ``(B) 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;
                  ``(C) in effect for the duration of the school's 
                participation under this part and reviewed and revised, 
                as necessary, by the school;
                  ``(D) available to the local educational agency, 
                parents, and the public, and the information contained 
                in such plan shall be provided in a format, and to the 
                extent practicable, in a language that they can 
                understand; and
                  ``(E) 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.
  ``(d) Accountability.--A schoolwide program under this section shall 
be subject to the school improvement provisions of section 1116.
  ``(e) Prekindergarten Program.--A school that is eligible for a 
schoolwide program under this section may use funds made available 
under this title to establish or enhance prekindergarten programs for 
3-, 4-, and 5-year-old children, such as Even Start programs or Early 
Reading First programs.

``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

  ``(a) In General.--In all schools selected to receive funds under 
section 1113(f) that are ineligible for a schoolwide program under 
section 1114, or that choose not to operate such a schoolwide program, 
a local educational agency 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) 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) 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 academic assessments under this part, and, as appropriate, 
        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 may be selected solely on the basis of such 
        criteria as teacher judgment, interviews with parents, and 
        other appropriate measures.
          ``(2) Children included.--(A)(i) Children with disabilities, 
        migrant children, and children with limited English proficiency 
        are eligible for services under this part on the same basis as 
        other children.
          ``(ii) Funds received under this part may not be used to 
        provide services that are otherwise required by law to be made 
        available to such children but may be used to coordinate or 
        supplement such services.
          ``(B) 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)(i) 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.
          ``(ii) A child in a local institution for neglected or 
        delinquent children or attending a community day program for 
        such children is eligible for services under this part.
          ``(D) A child who is homeless and attending any school in the 
        local educational agency is eligible for services under this 
        part.
  ``(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 title 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 upon 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 such as Head Start, Even Start, 
                Early Reading First or State-run preschool programs to 
                elementary school programs;
                  ``(E) provide instruction by fully qualified teachers 
                as defined in section 8101;
                  ``(F) in accordance with subsection (e)(3) and 
                section 1119A, provide opportunities for professional 
                development with resources provided under this part, 
                and, to the extent practicable, from other sources, for 
                teachers, principals, and administrators and other 
                school staff, including, if appropriate, pupil services 
                personnel, who work with participating children in 
                programs under this section or in the regular education 
                program; and
                  ``(G) provide strategies to increase parental 
                involvement in accordance with section 1118, such as 
                family literacy services.
          ``(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 coordination 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 that 
                require 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, public 
school personnel who are paid with funds received under this part may 
participate in general professional development and school planning 
activities.
  ``(e) Special Rules.--
          ``(1) Simultaneous service.--Nothing in this section shall be 
        construed to prohibit a school from serving students served 
        under this section simultaneously with students with similar 
        educational needs, in the same educational settings where 
        appropriate.
          ``(2) Comprehensive services.--If medical, 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 if 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--
                  ``(A) the provision of basic medical equipment, such 
                as eyeglasses and hearing aids; and
                  ``(B) 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 1119A for such fiscal year, except 
        that a school may enter into a consortium with another school 
        to carry out such activities.''.

SEC. 105. SCHOOL CHOICE.

  Section 1115A is amended to read as follows:

``SEC. 1115A. SCHOOL CHOICE.

  ``(a) Choice Programs.--A local educational agency may use funds 
under this part, in combination with State, local, and private funds, 
to develop and implement public school choice programs, for children 
eligible for assistance under this part, which permit parents to select 
the public school that their child will attend.
  ``(b) Choice Plan.--A local educational agency that chooses to 
implement a public school choice program shall first develop a plan 
that includes a description of how the local educational agency will 
use resources under this part and from other resources to implement the 
plan, and assurances that--
          ``(1) all eligible students across grade levels served under 
        this part will have equal access to the program;
          ``(2) the plan will be developed with the involvement of 
        parents and others in the community to be served and 
        individuals who will carry out the plan, including 
        administrators, teachers, principals, and other staff;
          ``(3) parents of eligible students in the local educational 
        agency will be given prompt notice of the existence of the 
        public school choice program and its availability to them, and 
        a clear explanation of how the program will operate;
          ``(4) the program will include charter schools and any other 
        public school and shall not include a school that is or has 
        been identified as a school in school improvement or is or has 
        been in corrective action for the past 2 consecutive years; and
          ``(5) such local educational agency will comply with the 
        other requirements of this part.
  ``(c) Transportation.--Transportation services or the costs of 
transportation may be provided by the local educational agency, except 
that such agency may not use more than a total of 15 percent of its 
allocation under this part for such purposes.''.

SEC. 106. ACADEMIC ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
                    IMPROVEMENT.

  The section heading and subsections (a) through (d) of section 1116 
are amended to read as follows:

``SEC. 1116. ACADEMIC ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND 
                    SCHOOL IMPROVEMENT.

  ``(a) Local Review.--Each local educational agency receiving funds 
under this part shall--
          ``(1) use the State academic assessments 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);
          ``(2) publicize and disseminate to teachers and other staff, 
        parents, students, and the community, the results of the annual 
        review under paragraph (2);
          ``(3) review the effectiveness of the actions and activities 
        the schools are carrying out under this part with respect to 
        parental involvement assisted under this Act.
  ``(b) School Improvement.--
          ``(1) In general.--
                  ``(A) Identification.--A local educational agency 
                shall identify for school improvement any elementary or 
                secondary school served under this part that--
                          ``(i) fails, for any year, to make adequate 
                        yearly progress as defined in the State's plan 
                        under section 1111(b)(2); or
                          ``(ii) was in school improvement status under 
                        this section immediately before the effective 
                        date of the No Child Left Behind Act of 2001.
                  ``(B) Deadline.--The identification described in 
                subparagraph (A) shall take place not later than the 
                first day of the school year following such failure to 
                make adequate yearly progress.
                  ``(C) Application.--This paragraph does not apply to 
                a school if almost every student in the school is 
                meeting the State's advanced level of performance.
                  ``(D) Review.--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 under this 
                subsection, 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.--In the case of a school 
                identified for school improvement under subparagraph 
                (A), the local educational agency shall, not later than 
                the first day of the school year following 
                identification, provide all students enrolled in the 
                school with the option to transfer to another public 
                school within the local educational agency, including a 
                public charter school, that has not been identified for 
                school improvement under subparagraph (A), unless such 
                an option is prohibited by State law.
                  ``(F) Transfer.--Students who use the option to 
                transfer under subparagraph (E) shall be enrolled in 
                classes and other activities in the public school to 
                which they transfer in the same manner as all other 
                children at the public school.
          ``(2) Opportunity to review and present evidence; time 
        limit.--
                  ``(A) Before identifying an elementary school or a 
                secondary school for school improvement under paragraph 
                (1), for corrective action under paragraph (6), or for 
                restructuring under paragraph (7), 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), (6), 
                or (7) 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) 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.
          ``(3) School plan.--
                  ``(A) 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, the local school board, and other outside 
                experts, for approval by such local educational agency. 
                The school plan shall cover a 2-year period and--
                          ``(i) incorporate scientifically based 
                        research strategies that strengthen the core 
                        academic subjects in the school and address the 
                        specific academic issues that caused the school 
                        to be identified for school improvement;
                          ``(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)(iii)(I) and (II) and 
                        enrolled in the school will meet the State's 
                        proficient level of achievement on the State 
                        academic assessment described in section 
                        1111(b)(4) not later than 10 years after the 
                        date of enactment of the No Child Left Behind 
                        Act of 2001;
                          ``(iii) provide an assurance that the school 
                        shall reserve not less than 10 percent of the 
                        funds made available to the school under this 
                        part 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--
                                  ``(I) directly addresses the academic 
                                performance problem that caused the 
                                school to be identified for school 
                                improvement;
                                  ``(II) meets the requirements for 
                                professional development activities 
                                under section 1119A; and
                                  ``(III) is provided in a manner that 
                                affords greater opportunity for 
                                participating in such professional 
                                development;
                          ``(iv) specify how the funds described in 
                        clause (iii) will be used to remove the school 
                        from school improvement status;
                          ``(v) establish specific annual, measurable 
                        goals for continuous and significant progress 
                        by each group of students specified in section 
                        1111(b)(2)(C)(iii)(I) and (II) and enrolled in 
                        the school that will ensure that all such 
                        groups of students shall meet the State's 
                        proficient level of achievement on the State 
                        academic assessment described in section 
                        1111(b)(4) not later than 10 years after the 
                        date of enactment of the No Child Left Behind 
                        Act of 2001;
                          ``(vi) identify how the school will provide 
                        written notification about the identification 
                        to parents of each student enrolled in such 
                        school, in a format and, to the extent 
                        practicable, in a language 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
                          ``(viii) incorporate, as appropriate, 
                        extended learning time for students, such as 
                        before school, after school, during the summer 
                        and extension of the school year.
                  ``(B) Conditional approval.--The local educational 
                agency may condition approval of a school plan on--
                          ``(i) inclusion of 1 or more of the 
                        corrective actions specified in paragraph 
                        (6)(D)(ii); or
                          ``(ii) feedback on the school improvement 
                        plan from parents and community leaders.
                  ``(C) 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 school year following 
                the school year in which the failure to make adequate 
                yearly progress took place.
                  ``(D) Notwithstanding subparagraph (C), in a case in 
                which a plan is not approved prior to the beginning of 
                a school year, such plan shall be implemented 
                immediately upon approval.
                  ``(E) Local educational agency approval.--The local 
                educational agency shall--
                          ``(i) establish a peer-review process to 
                        assist with review of a school plan prepared by 
                        a school served by the local educational 
                        agency; and
                          ``(ii) promptly review the school plan, work 
                        with the school as necessary, and approve the 
                        school plan if it 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 provide 
                technical assistance as the school develops and 
                implements the school plan throughout the duration of 
                such plan.
                  ``(B) Specific assistance.--Such technical 
                assistance--
                          ``(i) shall include assistance in analyzing 
                        data from the academic assessments required 
                        under section 1111(b)(4), and other samples of 
                        student work, to identify and address 
                        instructional problems and solutions;
                          ``(ii) shall include assistance in 
                        identifying and implementing professional 
                        development, instructional strategies, and 
                        methods of instruction that are based upon 
                        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 resources are more effectively allocated 
                        for the activities most likely to increase 
                        student 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 (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 
                                performance.
                  ``(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) Notification to parents.--A local educational agency 
        shall promptly provide parents (in a format and, to the extent 
        practicable, in a language they can understand) of each student 
        in an elementary school or a secondary school identified for 
        school improvement--
                  ``(A) an explanation of what the school improvement 
                identification means, and how the school identified for 
                school improvement 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 parents described in this 
                paragraph can become involved in addressing the 
                academic issues that caused the school to be identified 
                for school improvement; and
                  ``(F) an explanation regarding the option of their 
                child to transfer to another public school, including a 
                public charter school.
          ``(6) 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 students enrolled in the 
                        school identified for corrective action will 
                        perform at the State's proficient and advanced 
                        levels of achievement on the State academic 
                        assessment described in section 1111(b)(4).
                  ``(B) System.--In order to help students served under 
                this part meet challenging State academic standards, 
                each local educational agency shall implement a system 
                of corrective action in accordance with subparagraphs 
                (C) through (F) and paragraphs (7) through (9).
                  ``(C) Role of local educational agency.--The local 
                educational agency--
                          ``(i) after providing public school choice 
                        under paragraph (1)(E) and technical assistance 
                        under paragraph (4), shall identify for 
                        corrective action and take corrective action 
                        with respect to any school served by the local 
                        educational agency under this part that--
                                  ``(I) fails to make adequate yearly 
                                progress, as defined by the State under 
                                section 1111(b)(2), at the end of the 
                                first full school year following 
                                identification under paragraph (1); or
                                  ``(II) was in school-improvement 
                                status for 2 years or in corrective-
                                action status under this subsection 
                                immediately before the effective date 
                                of the No Child Left Behind Act of 
                                2001; and
                          ``(ii) shall continue to provide technical 
                        assistance consistent with paragraph (4) while 
                        instituting any corrective action under clause 
                        (i); and
                  ``(D) Requirements.--In the case of a school 
                described in subparagraph (C)(i), the local educational 
                agency shall both--
                          ``(i) continue to provide all students 
                        enrolled in the school with the option to 
                        transfer to another public school within the 
                        local educational agency, including a public 
                        charter school, that has not been identified 
                        for school improvement under paragraph (1), 
                        unless such an option is prohibited by State 
                        law; and
                          ``(ii) take at least 1 of the following 
                        corrective actions:
                                  ``(I) Replace the school staff which 
                                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 performance for low-
                                performing students and the school 
                                meeting 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 meeting adequate yearly 
                                progress, based on its school plan 
                                under this subsection.
                                  ``(V) Extend the school year or 
                                school day.
                                  ``(VI) Restructure the internal 
                                organizational structure of the school.
                  ``(E) Delay.--A local educational agency may delay, 
                for a period not to exceed 1 year, implementation of 
                corrective action only if the school's failure to make 
                adequate yearly progress was justified 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.
                  ``(F) 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 a format and, to the extent 
                        practicable, in a language that the parents can 
                        understand; and
                          ``(iii) through such means as the Internet, 
                        the media, and public agencies.
          ``(7) Restructuring.--
                  ``(A) Failure to make adequate yearly progress.--If--
                          ``(i) a school is subject to corrective 
                        action under paragraph (6) for one full school 
                        year, and at the end of such year continues to 
                        fail to make adequate yearly progress and 
                        students in the school who are from 
                        economically disadvantaged families are not 
                        making statistically significant progress in 
                        the subjects included in the State's definition 
                        of adequate yearly progress; or
                          ``(ii) for 2 additional years a school 
                        subject to corrective action under paragraph 
                        (6) fails to make adequate yearly progress, the 
                        local educational agency shall--
                                  ``(I) provide all students enrolled 
                                in the school with the option to 
                                transfer to another public school 
                                within the local educational agency, 
                                including a public charter school, that 
                                has not been identified for school 
                                improvement under paragraph (1), unless 
                                prohibited by State law;
                                  ``(II) make supplemental 
                                instructional services available, 
                                consistent with subsection (d)(1); and
                                  ``(III) prepare a plan and make 
                                necessary arrangements to carry out 
                                subparagraph (B).
                  ``(B) 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 1 of the following alternative governance 
                arrangements for the school consistent with State law:
                          ``(i) Reopening the school as a public 
                        charter school.
                          ``(ii) Replacing the principal and all or 
                        most of the school staff that are relevant to 
                        the failure to make adequate yearly progress.
                          ``(iii) Entering into a contract with an 
                        entity, such as a private management company, 
                        to operate the public school.
                          ``(iv) Turning the operation of the school 
                        over to the State, if permitted under State law 
                        and agreed to by the State.
                  ``(C) Available results.--The State educational 
                agency shall ensure that, for any school year in which 
                a school is subject to school improvement under this 
                subsection, the results of State academic assessments 
                for that school are available to the local educational 
                agency by the end of the school year in which the 
                academic assessments are administered.
                  ``(D) Prompt notice.--The local educational agency 
                shall provide prompt notice to teachers and parents 
                whenever subparagraph (A) or (B) applies, shall provide 
                them adequate opportunity to comment before taking any 
                action under those subparagraphs and to participate in 
                developing any plan under subparagraph (A)(iii), and 
                shall provide parents an explanation of the options 
                under subparagraph (A)(i) and (ii).
          ``(8) Transportation.--In any case described in paragraph 
        (6)(D)(i) and (7)(A)(ii)(I) the local educational agency--
                  ``(A) shall provide, or shall pay for the provision 
                of, transportation for the student to the public school 
                the child attends; and
                  ``(B) may use not more than a total of 15 percent of 
                its allocation under this part for that purpose.
          ``(9) Cooperative agreement.--In any case described in 
        paragraph (6)(D)(i) or (7)(A)(ii)(I), if all public schools in 
        the local educational agency to which a child may transfer to, 
        are identified for school improvement, the agency shall, to the 
        extent practicable, establish a cooperative agreement with 
        other local educational agencies in the area for a transfer.
          ``(10) Duration.--If any school identified for corrective 
        action or restructuring--
                  ``(A) makes adequate yearly progress for 2 
                consecutive years, the local educational agency need no 
                longer subject it to corrective action or restructuring 
                nor identify it as in need of improvement; or
                  ``(B) fails to make adequate yearly progress, but 
                children from low-income families in the school make 
                statistically significant educational progress for 1 
                year, the local educational agency shall place or 
                continue as appropriate the school in corrective action 
                under paragraph (6).
          ``(11) State responsibilities.--The State shall--
                  ``(A) make technical assistance under section 1117 
                available to all schools identified for school 
                improvement and restructuring under this subsection;
                  ``(B) if it determines that a local educational 
                agency has failed to carry out its responsibilities 
                under this subsection, take such corrective actions as 
                the State finds appropriate and in compliance with 
                State law; and
                  ``(C) ensure that academic assessment results under 
                this part are provided to schools within the same 
                school year in which the assessment was given.
  ``(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
                  ``(B) publicize and disseminate to local educational 
                agencies, teachers and other staff, parents, students, 
                and the community the results of the State review 
                consistent with section 1111, including statistically 
                sound disaggregated results, as required by section 
                1111(b)(2).
          ``(2) Identification of local educational agency for 
        improvement.--A State shall identify for improvement any local 
        educational agency that--
                  ``(A) for 2 consecutive years failed to make adequate 
                yearly progress as defined in the State's plan under 
                section 1111(b)(2); or
                  ``(B) was in improvement status under this section as 
                this section was in effect on the day preceding the 
                date of the enactment of the No Child Left Behind Act 
                of 2001.
          ``(3) Transition.--The 2-year period described in paragraph 
        (2)(A) shall include any continuous period of time immediately 
        preceding the date of the enactment of the No Child Left Behind 
        Act of 2001, during which a local educational agency did not 
        make adequate yearly progress as defined in the State's plan, 
        as such plan was in effect on the day preceding the date of 
        such enactment.
          ``(4) Targeted assistance schools.--For purposes of targeted 
        assistance schools in 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 (2), a State 
                educational agency shall provide the local educational 
                agency with an opportunity to review the local 
                educational agency data, including academic assessment 
                data, on which that proposed identification is based.
                  ``(B) Supporting evidence.--If the local educational 
                agency believes that the proposed identification is in 
                error for statistical or other substantive reasons, it 
                may provide supporting evidence to the State 
                educational agency, which such agency shall consider 
                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 notify parents in a format, and to the extent 
        practicable in a language they can understand, of each student 
        enrolled in a school in a local educational agency identified 
        for improvement, of the results of the review under paragraph 
        (1) and, if the agency is identified as in need of 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) Plan.--Each local educational agency identified 
                under paragraph (2) 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 the local educational 
                        agency;
                          ``(ii) identify specific goals and objectives 
                        the local educational agency will undertake to 
                        make adequate yearly progress and which--
                                  ``(I) have the greatest likelihood of 
                                improving the performance of 
                                participating children in meeting the 
                                State's student academic achievement 
                                standards;
                                  ``(II) address the professional 
                                development needs of staff; and
                                  ``(III) 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)(iii)(I) and (II);
                          ``(iii) incorporate, as appropriate, extended 
                        learning time for students such as before 
                        school, after school, during the summer, and 
                        extension of the school year.
                          ``(iv) identify how the local educational 
                        agency will provide written notification to 
                        parents in a format, and to the extent 
                        practicable in a language, that they can 
                        understand, pursuant to paragraph (6); and
                          ``(v) specify the responsibilities of the 
                        State educational agency and the local 
                        educational agency under the plan.
                  ``(B) Implementation.--The local educational agency 
                shall implement its plan or revised plan expeditiously, 
                but not later than the beginning of the school year 
                after which the school has been identified for 
                improvement.
          ``(8) State responsibility.--
                  ``(A) In general.--For each local educational agency 
                identified under paragraph (2), the State shall provide 
                technical or other assistance, if requested, as 
                authorized under section 1117, to better enable the 
                local educational agency--
                          ``(i) to develop and implement its revised 
                        plan as approved by the State educational 
                        agency consistent with the requirements of this 
                        section; and
                          ``(ii) to work with schools needing 
                        improvement.
                  ``(B) Technical assistance.--Technical assistance 
                provided under this section by the State educational 
                agency or an entity authorized by such agency shall be 
                based upon scientifically based research.
          ``(9) Corrective action.--In order to help students served 
        under this part meet challenging State academic standards, each 
        State shall implement a system of corrective action in 
        accordance with the following:
                  ``(A) In general.--After providing technical 
                assistance under paragraph (8) and subject to 
                subparagraph (D), the State--
                          ``(i) may take corrective action at any time 
                        with respect to a local educational agency that 
                        has been identified under paragraph (2);
                          ``(ii) shall take corrective action with 
                        respect to any local educational agency that 
                        fails to make adequate yearly progress, as 
                        defined by the State, after the end of the 
                        second year following its identification under 
                        paragraph (2); and
                          ``(iii) shall continue to provide technical 
                        assistance while instituting any corrective 
                        action under clause (i) or (ii).
                  ``(B) Definition.--As used in this paragraph, the 
                term `corrective action' means action, consistent with 
                State law, that--
                          ``(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 
                        school; and
                          ``(ii) is designed to meet the goal of having 
                        all students served under this part perform at 
                        the proficient and advanced performance levels.
                  ``(C) Certain local educational agencies.--In the 
                case of a local educational agency described in this 
                paragraph, the State educational agency shall take not 
                less than 1 of the following corrective actions:
                          ``(i) Withhold funds from the local 
                        educational agency.
                          ``(ii) Replace the school district personnel 
                        who are relevant to the failure to make 
                        adequate year progress.
                          ``(iii) Remove particular schools from the 
                        jurisdiction of the local educational agency 
                        and establish alternative arrangements for 
                        public governance and supervision of such 
                        schools.
                          ``(iv) Appoint, 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.
                          ``(v) Abolish or restructure the local 
                        educational agency.
                          ``(vi) Authorize students to transfer from a 
                        school operated by a local educational agency 
                        to a higher performing public school operated 
                        by another local educational agency, or to a 
                        public charter school and provide such students 
                        transportation (or the costs of transportation 
                        to such schools), in conjunction with not less 
                        than 1 additional action described under this 
                        paragraph.
                  ``(D) Hearing.--Prior to implementing any corrective 
                action, the State educational agency shall provide due 
                process and a hearing to the affected local educational 
                agency, if State law provides for such process and 
                hearing.
                  ``(E) Publication.--The State educational agency 
                shall publish, and disseminate to parents and the 
                public any corrective action it takes under this 
                paragraph through such means as the Internet, the 
                media, and public agencies.
                  ``(F) Delay.--A local educational agency may delay, 
                for a period not to exceed 1 year, implementation of 
                corrective action if the failure to make adequate 
                yearly progress was justified 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.
          ``(10) Special rule.--A local educational agency, that, for 
        at least 2 of the 3 years following identification under 
        paragraph (2), makes adequate yearly progress shall no longer 
        be identified for improvement.
  ``(d) Parental Options.--
          ``(1) In any case described in subsection (b)(7)(A)(ii)(II), 
        the local educational agency shall permit the parents of each 
        eligible child to obtain supplemental educational services for 
        such child from a provider, as approved by the State 
        educational agency in accordance with reasonable criteria that 
        it shall adopt. Such criteria shall require a provider to 
        demonstrate a record of effectiveness, or the potential of 
        effectiveness, in providing supplemental instructional services 
        to children, consistent with the instructional program of the 
        local educational agency and the academic standards described 
        under section 1111.
          ``(2) Selection.--In obtaining services under this paragraph, 
        a parent shall select a provider that meets the criteria 
        described under paragraph (1). The local educational agency 
        shall provide assistance, upon request, to parents in the 
        selection of a provider to provide supplemental instructional 
        services.
          ``(3) Contract.--In the case of the selection of a provider 
        under paragraph (2) by a parent, the local educational agency 
        shall enter into a contract with such provider. Such contract 
        shall--
                  ``(A) require the local educational agency to 
                develop, with parents (and the provider they have 
                chosen), a statement of specific performance goals for 
                the student, how the student's progress will be 
                measured, and a timetable for improving achievement;
                  ``(B) provide for the termination of such contract 
                with a provider that is unable to meet such goals and 
                timetables; and
                  ``(C) contain provisions with respect to the making 
                of payments to the provider by the local educational 
                agency.
          ``(4) Additional local educational agency responsibilities.--
        Each local educational agency subject to this paragraph shall 
        provide annual notice to parents (if feasible, in the parents' 
        language) of the availability of services under this paragraph 
        and the eligible providers of those services.
          ``(5) State educational agency responsibilities.--Each State 
        educational agency shall--
                  ``(A) consult with local educational agencies and 
                promote maximum participation by providers to ensure, 
                to the extent practicable, that parents have as many 
                choices of those providers as possible;
                  ``(B) develop criteria consistent with paragraph (6) 
                and apply such criteria to potential providers to 
                determine which, based on the quality and effectiveness 
                of their services, are eligible to participate;
                  ``(C) maintain an updated list of approved providers 
                across the State, from which parents may select;
                  ``(D) develop and implement standards and techniques 
                for monitoring the quality and effectiveness of the 
                services offered by providers, and withdraw approval 
                from those that fail to meet those standards for two 
                consecutive years;
                  ``(E) provide annual notice to potential providers of 
                supplemental services of the opportunity to provide 
                services under this paragraph and of the applicable 
                procedures for obtaining approval from the State 
                educational agency to be a provider of those services.
          ``(6) Criteria for providers.--In order for a provider to be 
        included on the State list under paragraph (5)(c), a provider 
        shall agree to the following:
                  ``(A) Provide parents of children receiving 
                supplemental instructional services under this 
                paragraph and the appropriate local educational agency 
                with information on the progress of their children in 
                increasing achievement, in a format and, to the extent 
                practicable, a language such parents can understand.
                  ``(B) Ensure that instruction and content used by the 
                provider is consistent with the instruction and content 
                used by the local educational agency and State.
                  ``(C) Require a provider to meet all applicable 
                Federal, State, and local health, safety and civil 
                rights laws.
                  ``(D) Ensure that all instruction and content under 
                this paragraph shall be secular, neutral, and 
                nonideological.
          ``(7) Costs.--
                  ``(A) The costs of administration of this paragraph 
                and the costs of providing such supplemental 
                instructional services shall be limited to the total of 
                40 percent of the per child allocation under subpart 2 
                of each school identified under subsection 
                (b)(7)(A)(ii)(II);
                  ``(B) Additional funds.--If the allocation under 
                subparagraph (A) is insufficient to provide services 
                for all eligible students that have selected a 
                provider, a local educational agency may use funds 
                under subpart 1 of part A of title IV to pay for 
                additional costs;
                  ``(C) Transportation costs.--A local educational 
                agency may use up to 15 percent of its allocation under 
                subpart 2 for transportation costs.
          ``(8) Funds provided by state educational agency.--Each State 
        educational agency may use funds that it reserves under this 
        part, and subpart 1 of part A of title IV to provide local 
        educational agencies that do not have sufficient funds to 
        provide services under this paragraph for all eligible students 
        requesting such services.
          ``(9) Duration.--The local educational agency shall continue 
        to provide supplemental instructional services to enrolled 
        children receiving such services under this paragraph until the 
        child completes the grade corresponding to the highest grade 
        offered at the public school which was identified for 
        restructuring under subsection (b)(7), or until such school, so 
        long as the child attends such school, is not identified under 
        subsection (b)(1), (b)(6), or (b)(7), whichever comes earlier.
          ``(10) Definitions.--As used in this subsection, the term--
                  ``(A) `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) `supplemental instructional services' means 
                tutoring and other supplemental academic enrichment 
                services that are in addition to instruction provided 
                during the school day and are specifically designed to 
                increase the academic achievement of eligible children 
                on the academic assessments required under section 
                1111; and
                  ``(C) `provider' means a non-profit or a for-profit 
                entity which has a demonstrated record of effectiveness 
                or the potential of effectiveness--
                          ``(i) in providing supplemental instructional 
                        services that are consistent with the 
                        instructional program of the local educational 
                        agency and the academic standards described 
                        under section 1111; and
                          ``(ii) in sound fiscal management;
                  ``(D) `per child allocation' means an amount that is 
                equal to at least--
                          ``(i) the amount of the school's allocation 
                        under subpart 2; divided by
                          ``(ii) the number of children from low-income 
                        families enrolled in the school.
          ``(11) Prohibition.--Nothing contained in this paragraph 
        shall permit the making of any payment under this paragraph for 
        religious worship or instruction.''.

SEC. 107. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

  Section 1117 is amended to read as follows:

``SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

  ``(a) System for Support.--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 in those agencies 
and schools to meet the State's academic content standards and student 
academic achievement standards.
  ``(b) Priorities.--In carrying out this section, a State shall--
          ``(1) first, provide support and assistance to local 
        educational agencies subject to corrective action under section 
        1116 and assist schools, in accordance with section 
        1116(b)(10), for which a local educational agency has failed to 
        carry out its responsibilities under paragraphs (6) and (7) of 
        section 1116(b);
          ``(2) second, provide support and assistance to other local 
        educational agencies identified as in need of improvement under 
        section 1116(b); and
          ``(3) 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.
  ``(c) Approaches.--In order to achieve the purpose described in 
subsection (a), each such system shall provide technical assistance and 
support through such approaches as--
          ``(1) school support teams, composed of individuals who are 
        knowledgeable about scientifically based research and practice 
        on teaching and learning, particularly about strategies for 
        improving educational results for low-achieving children; and
          ``(2) the designation and use of ``Distinguished Educators'', 
        chosen from schools served under this part that have been 
        especially successful in improving academic achievement.
  ``(d) Funds.--Each State--
          ``(1) shall use funds reserved under section 1003(a); and
          ``(2) may use State administrative funds authorized under 
        section 1002(i) for such purpose to establish a Statewide 
        system of support.
  ``(e) Alternatives.--The State may devise additional approaches to 
providing the assistance described in paragraphs (1) and (2) of 
subsection (c), 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 and the State may seek approval from the Secretary to use 
funds made available under section 1002(j) for such approaches as part 
of the State plan.''.

SEC. 108. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.

  Sections 1118 through 1127 are amended to read as follows:

``SEC. 1117A. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.

  ``(a) Establishment of Academic Achievement Awards Program.--
          ``(1) In general.--Each State receiving a grant under this 
        part may establish a program for making academic achievement 
        awards to recognize and financially reward schools served under 
        this part that have--
                  ``(A) significantly closed the achievement gap 
                between the groups of students defined in section 
                1111(b)(2); or
                  ``(B) exceeded their adequate yearly progress goals, 
                consistent with section 1111(b)(2), for 2 or more 
                consecutive years.
          ``(2) 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 whose students 
        consistently make significant gains in academic achievement in 
        the areas in which the teacher provides instruction.
  ``(b) Funding.--
          ``(1) Reservation of funds by state.--For the purpose of 
        carrying out this section, each State receiving a grant under 
        this part may reserve, from the amount (if any) by which the 
        funds received by the State under this part for a fiscal year 
        exceed the amount received by the State under this part for the 
        preceding fiscal year, not more than 30 percent of such excess 
        amount.
          ``(2) Use within 3 years.--Notwithstanding any other 
        provision of law, the amount reserved under paragraph (1) by a 
        State for each fiscal year shall remain available to the State 
        until expended for a period not exceeding 3 years.
          ``(3) Special allocation rule for schools in high-poverty 
        areas.--
                  ``(A) In general.--Each State receiving a grant under 
                this part shall distribute at least 75 percent of the 
                amount reserved under paragraph (1) for each fiscal 
                year to schools described in subparagraph (B), or to 
                teachers teaching in such schools.
                  ``(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.

  ``(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 the 
        provisions of this section. Such activities 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 upon with, and distribute to, parents of participating 
        children a written parent involvement policy that is 
        incorporated into the local educational agency's plan developed 
        under section 1112, establishes the expectations for parent 
        involvement, and describes how the local educational 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;
                  ``(C) build the schools' and parents' capacity for 
                strong parent 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 Head Start, 
                Early Reading First, Reading First, Even Start, the 
                Parents as Teachers Program, the 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 quality of the schools served under this part; 
                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 this part to carry out this section, 
                including family literacy and parenting skills, except 
                that this paragraph shall not apply if 1 percent of 
                such agency's allocation under this part (other than 
                funds allocated under section 1002(g) 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 upon by such parents, that shall describe the means for 
        carrying out the requirements of subsections (c) through (f). 
        Parents shall be notified of the policy in a format, and to the 
        extent practicable in a language they can understand. Such 
        policy shall be 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 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 
        participation under this part and to explain this part, its 
        requirements, and their right 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 school parental involvement policy and 
        the joint development of the schoolwide program plan under 
        section 1114(c)(2) and (c)(3), except that if a school has in 
        place a process for involving parents in the joint planning and 
        design of its 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
          ``(5) if the schoolwide program plan under section 1114(c)(2) 
        and (c)(3) 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 Performance.--As a 
component of the school-level parental involvement policy developed 
under subsection (b), each school served under this part shall agree 
with parents of children served under this part regarding how parents, 
the entire school staff, and students will share the responsibility for 
improved student achievement and the means by which the school and 
parents will build and develop a partnership to help children achieve 
the State's high academic standards.
  ``(e) Building Capacity for Involvement.--To ensure effective 
involvement of parents and to support a partnership among the school, 
parents, and the community to improve student achievement, each school 
and local educational agency--
          ``(1) shall provide assistance to participating parents in 
        such areas as understanding 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 performance of their children;
          ``(2) shall provide materials and training to help parents to 
        work with their children to improve their children's 
        achievement;
          ``(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 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 programs and other programs, to the extent 
        feasible and appropriate;
          ``(5) shall ensure, to the extent possible, that information 
        related to school and parent programs, meetings, and other 
        activities is sent to the parents of participating children in 
        the language used by such parents;
          ``(6) may involve parents in the development of training for 
        teachers, principals, and other educators to improve the 
        effectiveness of such training in improving instruction and 
        services to the children of such parents in a format, and to 
        the extent practicable, in a language the parent can 
        understand;
          ``(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 activities;
          ``(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;
          ``(10) may arrange for teachers or other educators, who work 
        directly with participating children, to conduct in-home 
        conferences with parents who are unable to attend such 
        conferences at school;
          ``(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 part;
          ``(13) may develop appropriate roles for community-based 
        organizations and businesses in parent involvement activities; 
        and
          ``(14) may arrange for teachers or other educators, who work 
        directly with participating children, to conduct in-home 
        conferences with parents who are unable to attend such 
        conferences at school.
  ``(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 or 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.

``SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

  ``(a) Teachers.--
          ``(1) In general.--Each local educational agency receiving 
        assistance under this part shall ensure that all teachers hired 
        on or after the effective date of the No Child Left Behind Act 
        of 2001 and teaching in a program supported with funds under 
        this part are fully qualified.
          ``(2) Plan.--Each State receiving assistance under this part 
        shall develop and submit to the Secretary a plan to ensure that 
        all teachers teaching within the State are fully qualified not 
        later than December 31, 2005. Such plan shall include an 
        assurance that the State will require each local educational 
        agency and school receiving funds under this part publicly to 
        report their annual progress on the agency's and the school's 
        performance in increasing the percentage of classes in core 
        academic areas taught by fully qualified teachers.
  ``(b) New Paraprofessionals.--
          ``(1) In general.--Each local educational agency receiving 
        assistance under this part shall ensure that all 
        paraprofessionals hired 1 year or more after the effective date 
        of the No Child Left Behind Act of 2001 and working in a 
        program supported with funds under this part shall--
                  ``(A) have completed at least 2 years of study at an 
                institution of higher education;
                  ``(B) have obtained an associate's (or higher) 
                degree; or
                  ``(C) have met a rigorous standard of quality that 
                demonstrates, through a formal academic assessment--
                          ``(i) knowledge of, and the ability to assist 
                        in instructing reading, writing, and math; or
                          ``(ii) knowledge of, and the ability to 
                        assist in instructing reading readiness, 
                        writing readiness, and math readiness, as 
                        appropriate.
          ``(2) Clarification.--For purposes of paragraph (1)(C), the 
        receipt of a high school diploma (or its recognized equivalent) 
        shall be necessary but not by itself sufficient to satisfy the 
        requirements of such paragraph.
  ``(c) Existing Paraprofessionals.--Each local educational agency 
receiving assistance under this part shall ensure that all 
paraprofessionals hired before the date that is 1 year after the 
effective date of the No Child Left Behind Act of 2001 and working in a 
program supported with funds under this part shall, not later than 3 
years after such effective date, satisfy the requirements of subsection 
(b).
  ``(d) Exceptions for Translation and Parental Involvement 
Activities.--Subsections (b) and (c) 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.
  ``(e) 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 paraprofessional's hiring date, 
possess a high school diploma or its recognized equivalent.
  ``(f) 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 only 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.
          ``(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 fully qualified teacher; 
                and
                  ``(B) may not provide instructional services to 
                students in the area of reading, writing, or math 
                unless the paraprofessional has demonstrated, through a 
                State or local academic assessment, the ability to 
                effectively carry out reading, writing, or math 
                instruction.
  ``(g) Use of Funds.--
          ``(1) Professional development.--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.
          ``(2) Limitation on use of funds for paraprofessionals.--
                  ``(A) In general.--Beginning on and after the 
                effective date of the No Child Left Behind Act of 2001, 
                a local educational agency may not use funds received 
                under this part to fund any paraprofessional hired 
                after such date unless the hiring is to fill a vacancy 
                created by the departure of another paraprofessional 
                funded under this part and such new paraprofessional 
                satisfies the requirements of subsection (b), except as 
                provided in subsection (d).
                  ``(B) Exception.--Subparagraph (A) shall not apply 
                for a fiscal year to a local educational agency that 
                can demonstrate to the State that all teachers under 
                the jurisdiction of the agency are fully qualified.
  ``(h) 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 annually attest 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 upon request.

``SEC. 1119A. PROFESSIONAL DEVELOPMENT.

  ``(a) Purpose.--The purpose of this section is to assist each local 
educational agency receiving assistance under this part in increasing 
the academic achievement of children served under this part through 
improved teacher quality.
  ``(b) Professional Development Activities.--Professional development 
activities under this section shall--
          ``(1) 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) support the recruiting, hiring, and training of fully 
        qualified teachers, including teachers fully qualified through 
        State and local alternative routes;
          ``(3) advance teacher understanding of effective 
        instructional strategies based on scientifically based research 
        for improving student achievement, at a minimum, in reading or 
        language arts and mathematics;
          ``(4) be directly related to the curriculum and content areas 
        in which the teacher provides instruction, except this 
        requirement does not apply to activities that instruct in 
        methods of improving student behavior;
          ``(5) be designed to enhance the ability of a teacher to 
        understand and use the State's academic standards for the 
        subject area in which the teacher provides instruction;
          ``(6) be tied to scientifically based research demonstrating 
        the effectiveness of such professional development activities 
        or programs in increasing student achievement or substantially 
        increasing the knowledge and teaching skills of teachers;
          ``(7) be of sufficient intensity and duration (not to include 
        1-day or short-term workshops and conferences) to have a 
        positive and lasting impact on the teacher's performance in the 
        classroom;
          ``(8) be developed with extensive participation of teachers, 
        principals, parents, and administrators of schools to be served 
        under this part;
          ``(9) be designed to give teachers of limited English 
        proficient children, other teachers, and instructional staff 
        the knowledge and skills to provide instruction and appropriate 
        language and academic support services to such children, 
        including the appropriate use of curriculum and academic 
        assessments;
          ``(10) to the extent appropriate, provide training for 
        teachers in the use of technology so that technology and its 
        applications are effectively used in the classroom to improve 
        teaching and learning in the curriculum and academic content 
        areas in which the teachers provide instruction; and
          ``(11) as a whole, be regularly evaluated for their impact on 
        increased teacher effectiveness and improved student 
        achievement, with the findings of such evaluations used to 
        improve the quality of professional development.
  ``(c) Additional Professional Development Activities.--Such 
professional development activities may include--
          ``(1) instruction in the use of data and academic assessments 
        to inform and instruct classroom practice;
          ``(2) instruction in ways that teachers, principals, pupil 
        services personnel, and school administrators may work more 
        effectively with parents;
          ``(3) the forming of partnerships with institutions of higher 
        education to establish school-based teacher training programs 
        that provide prospective teachers and novice teachers with an 
        opportunity to work under the guidance of experienced teachers 
        and college faculty;
          ``(4) the creation of career ladder programs for 
        paraprofessionals (assisting teachers under this part) to 
        obtain the education necessary for such paraprofessionals to 
        become licensed and certified teachers; and
          ``(5) instruction in ways to teach special needs children.
  ``(d) Program Participation.--Each local educational agency receiving 
assistance under this part may design professional development programs 
so that--
          ``(1) all school staff in schools participating in a 
        schoolwide program under section 1114 can participate in 
        professional development activities; and
          ``(2) all school staff in targeted assistance schools may 
        participate in professional development activities if such 
        participation will result in better addressing the needs of 
        students served under this part.
  ``(e) Parental Participation.--Parents may participate in 
professional development activities under this part if the school 
determines that parental participation is appropriate.
  ``(f) Consortia.--In carrying out such professional development 
programs, local educational agencies may provide services through 
consortia arrangements with other local educational agencies, 
educational service agencies or other local consortia, institutions of 
higher education, or other public or private institutions or 
organizations.
  ``(g) Consolidation of Funds.--Funds provided under this part that 
are used for professional development purposes may be consolidated with 
funds provided under title II of this Act and other sources.
  ``(h) Special Rule.--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(b)(3)(A)(iii).

``SEC. 1120. 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 a 
        local educational agency who are enrolled in private elementary 
        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 these students 
        participate, on an equitable basis, in services and activities 
        developed pursuant to sections 1118 and 1119A.
          ``(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 
        shall 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 amount of funds generated by low-income private 
                school children in each participating attendance area;
                  ``(F) the method or sources of data that are used 
                under subsection (a)(4) and section 1113(c)(2) to 
                determine the number of children from low-income 
                families in participating school attendance areas who 
                attend private schools; and
                  ``(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 contract services through potential third party 
                providers.
        If the local educational agency disagrees with the views of the 
        private school officials on the provision of services, through 
        a contract, the local educational agency shall 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.
          ``(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 its records and provide to the State educational 
        agency a written affirmation signed by officials of each 
        participating private school that the consultation required by 
        this section has occurred.
          ``(5) Compliance.--Private school officials shall have the 
        right to appeal to the State as to whether the consultation 
        provided for in this section was meaningful and timely, and 
        that due consideration was given to the views of private school 
        officials. If the private school wishes to appeal, the basis of 
        the claim of noncompliance with this section by a local 
        educational agency shall be provided to the State, and the 
        local educational agency shall forward the documentation 
        provided in subsection (b)(4) to the State.
  ``(c) 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 and property.
          ``(2) Provision of services.--(A) The provision of services 
        under this section shall be provided--
                  ``(i) by employees of a public agency; or
                  ``(ii) through contract by such public agency with an 
                individual, association, agency, or organization.
          ``(B) In the provision of such services, such employee, 
        person, 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.
  ``(d) Standards for a Bypass.--If a local educational agency is 
prohibited by law from providing for the participation on an equitable 
basis of eligible children enrolled in private elementary 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 8505 and 8506; and
          ``(3) in making the determination, consider 1 or more 
        factors, including the quality, size, scope, and location of 
        the program and the opportunity of eligible children to 
        participate.
  ``(e) Capital Expenses.--
          ``(1) In general.--(A) From the amount appropriated for this 
        subsection under section 1002(g) for any fiscal year, each 
        State is eligible to receive an amount that bears the same 
        ratio to the amount so appropriated as the number of private 
        school children who received services under this part in the 
        State in the most recent year for which data satisfactory to 
        the Secretary are available bears to the number of such 
        children in all States in that same year.
          ``(B) The Secretary shall reallocate any amounts allocated 
        under subparagraph (A) that are not used by a State for the 
        purpose of this subsection to other States on the basis of 
        their respective needs, as determined by the Secretary.
          ``(2) Capital expenses.--(A) A local educational agency may 
        apply to the State educational agency for payments for capital 
        expenses consistent with this subsection.
          ``(B) State educational agencies shall distribute such funds 
        under this subsection to local educational agencies based on 
        the degree of need set forth in their respective applications 
        for assistance under this subsection.
          ``(3) Uses of funds.--Any funds appropriated to carry out 
        this subsection shall be used only for capital expenses 
        incurred to provide equitable services for private school 
        children under this section.

``SEC. 1120A. FISCAL REQUIREMENTS.

  ``(a) Maintenance of Effort.--A local educational agency may receive 
funds under this part for any fiscal year only if the State educational 
agency finds that the local educational agency has maintained its 
fiscal effort in accordance with section 8501 of this Act.
  ``(b) Federal Funds To Supplement, Not Supplant, Non-Federal Funds.--
          ``(1) In general.--A State or local educational agency shall 
        use funds received under this part only to supplement the 
        amount of 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) 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) 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 local 
        funds to provide services that, taken as a whole, are 
        substantially comparable in each school.
          ``(C) 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) 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) For the purpose of subparagraph (A), 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) 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 1 
        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) English language instruction for children of 
                limited English proficiency; and
                  ``(B) 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 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.

  ``(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 early childhood 
development programs such as Early Reading First.
  ``(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 early childhood 
development programs, such as Early Reading First serving children who 
will attend the schools of such 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, other early childhood development programs such as 
        Early Reading First;
          ``(2) establishing channels of communication between school 
        staff and their counterparts in such Head Start agencies 
        (including teachers, social workers, and health staff) or other 
        early childhood development programs such as Early Reading 
        First, 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 Early Reading First, to discuss the 
        developmental and other needs of individual children;
          ``(4) organizing and participating in joint transition 
        related training of school staff, Head Start staff, Early 
        Reading First staff and, where appropriate, other early 
        childhood staff; and
          ``(5) linking the educational services provided in such local 
        educational agency with the services provided in local Head 
        Start agencies and 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. 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), 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 the outlying areas.
          ``(2) Competitive grants.--For each of fiscal years 2002 and 
        2003, the Secretary shall carry out the competition described 
        in paragraph (3), except that the amount reserved to carry out 
        such competition shall not exceed the amount reserved under 
        this section for the freely associated states for fiscal year 
        1999.
          ``(3) Limitation for competitive grants.--
                  ``(A) Competitive grants.--The Secretary shall use 
                funds described in paragraph (2) to award grants, on a 
                competitive basis, 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, pursuant 
                to the recommendations of the Pacific Region 
                Educational Laboratory in Honolulu, Hawaii.
                  ``(C) 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 purposes 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 and secondary schools for Indian children 
                operated or supported by the Department of the 
                Interior; and
                  ``(B) out-of-State Indian children in elementary 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, upon 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 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. AMOUNTS FOR BASIC GRANTS, CONCENTRATION GRANTS, AND 
                    TARGETED GRANTS.

  ``(a) Allocation Formula.--Of the amount appropriated to carry out 
this part for each of fiscal years 2002 through 2006 (referred to in 
this subsection as the current fiscal year)--
          ``(1) an amount equal to the amount appropriated to carry out 
        section 1124 for fiscal year 2001 shall be allocated in 
        accordance with section 1124;
          ``(2) an amount equal to the amount appropriated 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 appropriated under section 1002(a) for the 
        current fiscal year exceeds the amount appropriated under such 
        section 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 part 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 and 1125.--For each fiscal 
        year, the amount made available to each local educational 
        agency under each of sections 1124 and 1125 shall be--
                  ``(A) not less than 95 percent of the amount made 
                available in 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 in 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 in the preceding fiscal year if the 
                percentage described in subparagraph (A) is below 15 
                percent.
          ``(2) Amount for section 1124a.--The amount made available to 
        each local educational agency under section 1124A shall be not 
        less than 85 percent of the amount made available in the 
        preceding fiscal year.
          ``(3) Payments.--If sufficient funds are appropriated, the 
        amounts described in paragraph (2) shall be paid to all local 
        educational agencies that received grants under section 1124A 
        for the preceding fiscal year, regardless of whether the local 
        educational agency meets the minimum eligibility criteria for 
        that fiscal year provided 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 (2).
          ``(4) Population data.--In 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 part 
        for any fiscal year are insufficient to pay the full amounts 
        that 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, and 1125, 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.

  ``(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 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) the 2 Secretaries shall publicly 
                        disclose the reasons for their determination in 
                        detail; and
                          ``(ii) paragraph (3) shall apply.
                  ``(B) Allocations to large and small local 
                educational agencies.--(i) For any fiscal year in 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) 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 section 1124(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 part for a particular fiscal year directly 
                to local educational agencies without regard to 
                counties.
                  ``(C) Assurances.--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 
                        part; 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 shall 
                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 
                which 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) 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
                          ``(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; 
                        and
                          ``(iv) for fiscal year 2005 and succeeding 
                        fiscal years, 85.0 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 part 
                than it received under this part for the preceding 
                fiscal year, the percentage in subparagraph (A) shall 
                be the greater of the percentage in subparagraph (A)(i) 
                or the percentage used for the preceding fiscal year.
          ``(5) Definition.--For purposes of this subsection, the term 
        `State' does not include Guam, American Samoa, the Virgin 
        Islands, and the Northern Mariana Islands.
  ``(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.--
          ``(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 2 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.--In fiscal year 2001 and every 2 
        years thereafter, the Secretary shall use updated data on the 
        number of children, aged 5 to 17, inclusive, from families 
        below the poverty level for local educational agencies or 
        counties, published by the Department of Commerce, unless the 
        Secretary and the Secretary of Commerce determine that use of 
        the updated population data would be inappropriate or 
        unreliable. If the Secretary and the Secretary of Commerce 
        determine that some or all of the data referred to in this 
        paragraph are inappropriate or unreliable, they shall publicly 
        disclose their reasons. In determining the families which are 
        below the poverty level, the Secretary shall utilize the 
        criteria of poverty used by the Bureau of the Census in 
        compiling the most recent decennial census, 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.
          ``(4) Other children to be counted.--For the purposes 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 utilize the criteria of 
        poverty used by the Bureau of the Census in compiling the most 
        recent decennial census for a family of 4 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. 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. 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. 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 subparagraph (A) of this 
        paragraph) 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 total grants under this section; or
          ``(2) the average of--
                  ``(A) one-quarter of 1 percent of the total amount 
                available for such fiscal year under this section; 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. 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, in a State other than 
        Guam, American Samoa, the Virgin Islands, and the Commonwealth 
        of the Northern Mariana Islands, 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 described in 
        subparagraph (A) shall receive less than the lesser of--
                  ``(i) 0.25 percent of total grants; or
                  ``(ii) the average of--
                          ``(I) one-quarter of 1 percent of the sums 
                        available to carry out this section for such 
                        fiscal year; 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) Special rule.--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 quotient resulting from the division of the 
                amount determined for those agencies under section 
                1124(a)(1) for the fiscal year for which the 
                determination is being made divided by the total number 
                of children counted under section 1124(c) for that 
                agency for that fiscal year.
          ``(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) and (3).
          ``(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) States Receiving Minimum Grants.--In States that receive the 
minimum grant under subsection (a)(1)(B), the State educational agency 
shall allocate such funds among the local educational agencies in each 
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. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  ``(a) Eligibility of Local Educational Agencies.--A local educational 
agency in a State is eligible to receive a targeted grant under this 
section for any fiscal year if the number of children in the local 
educational agency counted under subsection 1124(c), before application 
of the weighting factor described in subsection (c), is at least 10, 
and if the number of children counted for grants under section 1124 is 
at least 5 percent of the total population aged 5 to 17 years, 
inclusive, in the local educational agency. For each fiscal year for 
which the Secretary uses county population data to calculate grants, 
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 Puerto Rico.--
          ``(1) In general.--The amount of the grant that a local 
        educational agency in a State or that the District of Columbia 
        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 in paragraph 1124(a)(1)(B).
          ``(2) Puerto rico.--For each fiscal year, the amount of the 
        grant for which the Commonwealth of Puerto Rico is eligible 
        under this section shall be equal to the number of children 
        counted under subsection (c) for Puerto Rico, multiplied by the 
        amount determined in subparagraph 1124(a)(4).
  ``(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 2 amounts determined under clause (i) or (ii), as 
                follows:
                          ``(i) By percentage of children.--This amount 
                        is determined by adding--
                                  ``(I) the number of children 
                                determined under section 1124(c) for 
                                that county constituting up to 15 
                                percent, inclusive, of the county's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  ``(II) the number of such children 
                                constituting more than 15 percent, but 
                                not more than 19 percent, of such 
                                population, multiplied by 1.75;
                                  ``(III) the number of such children 
                                constituting more than 19 percent, but 
                                not more than 24.20 percent, of such 
                                population, multiplied by 2.5;
                                  ``(IV) the number of such children 
                                constituting 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 
                                constituting more than 29.20 percent of 
                                such population, multiplied by 4.0.
                          ``(ii) By number of children.--This amount is 
                        determined by adding--
                                  ``(I) the number of children 
                                determined under section 1124(c) 
                                constituting up to 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) Puerto rico.--Notwithstanding subparagraph (A), 
                the weighted child count for Puerto Rico under this 
                paragraph shall not be greater than the total number of 
                children counted under subsection 1124(c) multiplied by 
                1.72.
          ``(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 2 amounts determined under clauses (i) 
                and (ii), as follows:
                          ``(i) By percentage of children.--This amount 
                        is determined by adding--
                                  ``(I) the number of children 
                                determined under section 1124(c) for 
                                that local educational agency 
                                constituting up to 15.233 percent, 
                                inclusive, of the agency's total 
                                population aged 5 to 17, inclusive, 
                                multiplied by 1.0;
                                  ``(II) the number of such children 
                                constituting more than 15.233 percent, 
                                but not more than 22.706 percent, of 
                                such population, multiplied by 1.75;
                                  ``(III) the number of such children 
                                constituting more than 22.706 percent, 
                                but not more than 32.213 percent, of 
                                such population, multiplied by 2.5;
                                  ``(IV) the number of such children 
                                constituting more than 32.213 percent, 
                                but not more than 41.452 percent, of 
                                such population, multiplied by 3.25; 
                                and
                                  ``(V) the number of such children 
                                constituting more than 41.452 percent 
                                of such population, multiplied by 4.0.
                          ``(ii) By number of children.--This amount is 
                        determined by adding--
                                  ``(I) the number of children 
                                determined under section 1124(c) 
                                constituting up to 710, inclusive, of 
                                the agency's total population aged 5 to 
                                17, inclusive, multiplied by 1.0;
                                  ``(II) the number of such children 
                                between 711 and 2,384, inclusive, in 
                                such population, multiplied by 1.5;
                                  ``(III) the number of such children 
                                between 2,385 and 9,645, inclusive, in 
                                such population, multiplied by 2.0;
                                  ``(IV) the number of such children 
                                between 9,646 and 54,600, inclusive, in 
                                such population, multiplied by 2.5; and
                                  ``(V) the number of such children in 
                                excess of 54,601 in such population, 
                                multiplied by 3.0.
                  ``(B) Puerto rico.--Notwithstanding subparagraph (A), 
                the weighted child count for Puerto Rico under this 
                paragraph shall not be greater than the total number of 
                children counted under section 1124(c) multiplied by 
                1.72.
  ``(d) Calculation of Grant Amounts.--Grants under this section shall 
be calculated in accordance with 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) 0.25 percent of total appropriations; or
          ``(2) the average of--
                  ``(A) one-quarter of 1 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.

``SEC. 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 subparagraph (B) of section 1124(c)(1), 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, and 1125 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, and 1125 among the affected local educational agencies--
          ``(1) if 2 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 1 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, and 1125 is more than such local 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. 1127. CARRYOVER AND WAIVER.

  ``(a) Limitation on Carryover.--Notwithstanding section 421 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 1 additional fiscal year.
  ``(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.

``SEC. 1128. SECULAR, NEUTRAL, AND NONIDEOLOGICAL.

  ``Any school that receives funds under this part shall ensure that 
educational services or other benefits provided under this part, 
including materials and equipment, shall be secular, neutral, and 
nonideological.''.

           PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

SEC. 111. READING FIRST; EARLY READING FIRST.

  Part B of title I (20 U.S.C. 6361 et seq.) is amended--
          (1) by striking the part heading and inserting the following:

         ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS'';

          (2) by redesignating sections 1201 through 1212 as sections 
        1231 through 1242, respectively; and
          (3) by inserting after the part heading the following:

                       ``Subpart 1--Reading First

``SEC. 1201. FINDINGS.

  ``The Congress finds as follows:
          ``(1) The 2000 National Assessment of Educational Progress 
        found that 68 percent of fourth grade students in the United 
        States are reading below the proficient level.
          ``(2) According to the 2000 National Assessment of 
        Educational Progress report on reading, 63 percent of African 
        Americans, 58 percent of Hispanic Americans, 60 percent of 
        children living in poverty, and 47 percent of children in urban 
        schools scored `below basic' in reading.
          ``(3) More than \1/2\ of the students placed in special 
        education classes are identified as learning disabled and, for 
        as many as 80 percent of the students so identified, reading is 
        the primary difficulty.
          ``(4) It is estimated that, at a minimum, 10,000,000 children 
        have difficulty learning to read. 10 to 15 percent of those 
        children eventually drop out of high school, and only 2 percent 
        complete a 4-year program at an institution of higher 
        education.
          ``(5) It is estimated that the number of children who are 
        typically identified as poor readers can be significantly 
        reduced through the implementation of early identification and 
        prevention programs that are based on scientifically based 
        reading research.
          ``(6) The report issued by the National Reading Panel in 2000 
        found that the course of reading instruction that obtains 
        maximum benefits for students includes explicit and systematic 
        instruction in phonemic awareness, phonics, vocabulary 
        development, reading fluency, and reading comprehension 
        strategies.

``SEC. 1202. PURPOSES.

  ``The purposes of this subpart are as follows:
          ``(1) To provide assistance to States and local educational 
        agencies in establishing reading programs for students in 
        grades kindergarten through 3 that are based on scientifically 
        based reading research, in order to ensure that every student 
        can read at grade level or above not later than the end of the 
        third grade.
          ``(2) To provide assistance to States 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 States and local educational 
        agencies in selecting and administering rigorous diagnostic 
        reading and screening assessment tools that are valid and 
        reliable, document the effectiveness of this subpart in 
        improving the reading skills of students, and improve classroom 
        instruction.
          ``(4) To provide assistance to States and local educational 
        agencies in selecting or developing effective classroom 
        instructional materials, programs, and strategies to implement 
        scientific research-based methods that have been proven to 
        prevent or remediate reading failure.
          ``(5) To strengthen coordination among schools and early 
        literacy programs in order to improve reading achievement for 
        all children.

``SEC. 1203. FORMULA GRANTS TO STATES.

  ``(a) In General.--
          ``(1) Authorization to make grants.--In the case of each 
        State that in accordance with section 1204 submits to the 
        Secretary an application for a 5-year period, the Secretary, 
        subject to the application's approval, shall make a grant to 
        the State 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 under subsection 
        (b).
          ``(2) Duration of grants.--
                  ``(A) In general.--Subject to subparagraph (B), a 
                grant under this section shall be awarded for a period 
                of not more than 5 years.
                  ``(B) Interim review.--
                          ``(i) Progress report.--
                                  ``(I) Submission.--Not later than 60 
                                days after the termination of the third 
                                year of the grant period, each State 
                                receiving a grant under this section 
                                shall submit a progress report to the 
                                Secretary.
                                  ``(II) Information included.--The 
                                progress report shall include 
                                information on the progress the State, 
                                and local educational agencies within 
                                the State, are making in reducing the 
                                number of students served under this 
                                subpart in the first and second grades 
                                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 and its local educational 
                                agencies that they have significantly 
                                increased the number of students 
                                reading at grade level or above, 
                                significantly increased the percentages 
                                of students in ethnic, racial, and low-
                                income populations who are reading at 
                                grade level or above, and successfully 
                                implemented this subpart.
                          ``(ii) Peer review.--The progress report 
                        described in clause (i) shall be reviewed by 
                        the peer review panel convened under section 
                        1204(c)(2).
                          ``(iii) Consequences of insufficient 
                        progress.--After the submission of the progress 
                        report described in clause (i), if the 
                        Secretary determines that the State is not 
                        making significant progress in meeting the 
                        purposes of this subpart, the Secretary may 
                        withhold from the State, in whole or in part, 
                        further payments under this section in 
                        accordance with section 455 of the General 
                        Education Provisions Act (20 U.S.C. 1234d) or 
                        take such other action authorized by law as the 
                        Secretary deems necessary, including providing 
                        technical assistance upon request of the State.
  ``(b) Determination of Amount of Allotments.--
          ``(1) Reservations from appropriations.--From the total 
        amount made available under section 1002(b)(1) to carry out 
        this subpart for a fiscal year, the Secretary--
                  ``(A) shall reserve \1/2\ of 1 percent for allotments 
                for the 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 \1/2\ 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) shall reserve not more than 3 percent or 
                $30,000,000, whichever is less, to carry out section 
                1206;
                  ``(D) may reserve not more than 1 percent to carry 
                out section 1207; and
                  ``(E) shall reserve $5,000,000 to carry out section 
                1208.
          ``(2) State allotments.--From the total amount made available 
        under section 1002(b)(1) to carry out this subpart for a fiscal 
        year and not reserved under paragraph (1), the Secretary shall 
        allot 80 percent under this section among each of the 50 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico.
          ``(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 
                described in such paragraph in proportion to the number 
                of children, aged 5 to 17, who reside within the State 
                from families with incomes below the poverty line (as 
                defined by the Office of Management and Budget and 
                revised annually in accordance with section 673(2) of 
                the Community Services Block Grant Act (42 U.S.C. 
                9902(2)) applicable to a family of the size involved 
                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) In general.--Subject to clause (ii), no 
                        State receiving an allotment under subparagraph 
                        (A) may receive less than \1/4\ 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) Reallotment.--If a State described in paragraph (2) 
        does not apply for an allotment under this section for any 
        fiscal year, or if the State's application is not approved, the 
        Secretary shall reallot such amount to the remaining States in 
        accordance with paragraph (3).
  ``(c) Subgrants to Local Educational Agencies.--
          ``(1) Distribution of subgrants.--The Secretary may make a 
        grant to a State under this section only if the State 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 
        this subsection, competitive subgrants to local educational 
        agencies.
          ``(2) Notice.--A State 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) Local applications.--To be eligible to receive a 
        subgrant under this subsection, a local educational agency 
        shall submit an application to the State at such time, in such 
        manner, and containing such information as the State may 
        reasonably require.
          ``(4) Limitation to certain local agencies.--A State 
        receiving a grant under this section may award subgrants under 
        this subsection only to local educational agencies--
                  ``(A) that have the highest percentages of students 
                in grades kindergarten through 3 reading below grade 
                level; and
                  ``(B) that--
                          ``(i) have jurisdiction over--
                                  ``(I) 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; or
                                  ``(II) a significant number of 
                                schools that are identified for school 
                                improvement under section 1116(b); or
                          ``(ii) are located in areas having the 
                        greatest numbers or percentages of children 
                        aged 5 through 17 from low-income families.
          ``(5) State requirement.--In distributing subgrant funds to 
        local educational agencies under this subsection, a State shall 
        provide funds in sufficient size and scope to enable local 
        educational agencies to improve reading instruction, as 
        determined by rigorous diagnostic reading and screening 
        assessment tools.
          ``(6) Limitation to certain schools.--In distributing 
        subgrant funds under this subsection, a local educational 
        agency may provide funds only to schools--
                  ``(A) that have the highest percentages of students 
                in grades kindergarten through 3 reading below grade 
                level; and
                  ``(B) that--
                          ``(i) are identified for school improvement 
                        under section 1116(b); or
                          ``(ii) have the greatest numbers or 
                        percentages of children aged 5 through 17 from 
                        low-income families.
          ``(7) Local uses of funds.--
                  ``(A) Required uses.--Subject to paragraph (8), a 
                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 rigorous 
                        diagnostic reading and screening assessment 
                        tools.
                          ``(ii) Selecting and implementing a program 
                        or programs of classroom reading instruction 
                        based on scientifically based reading research 
                        that--
                                  ``(I) includes the essential 
                                components of reading instruction; and
                                  ``(II) provides such instruction to 
                                all children, 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 such Act, have not 
                                        been identified as being a 
                                        child with a disability (as 
                                        defined in section 602 of such 
                                        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 such Act) 
                                        related to reading;
                                          ``(ee) are deficient in their 
                                        phonemic awareness, phonics 
                                        skills, vocabulary development, 
                                        oral reading fluency, or 
                                        comprehension strategies; or
                                          ``(ff) are identified as 
                                        having limited English 
                                        proficiency.
                          ``(iii) Procuring classroom instructional 
                        materials based on scientifically based reading 
                        research.
                          ``(iv) Providing professional development for 
                        teachers of grades kindergarten through 3, and 
                        special education teachers of grades 
                        kindergarten through 12, that--
                                  ``(I) will prepare these teachers in 
                                all of the essential components of 
                                reading instruction;
                                  ``(II) shall include--
                                          ``(aa) information, 
                                        instructional materials, 
                                        programs, strategies, and 
                                        approaches based on 
                                        scientifically based reading 
                                        research, including early 
                                        intervention and classroom 
                                        reading materials and remedial 
                                        programs and approaches; and
                                          ``(bb) instruction in the use 
                                        of rigorous diagnostic reading 
                                        and screening assessment tools 
                                        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 fully qualified in accordance 
                                with the requirements of section 1119.
                  ``(B) Optional uses.--Subject to paragraph (8), a 
                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) Providing training to parents and other 
                        individuals who volunteer to be reading tutors 
                        in the essential components of reading 
                        instruction.
                          ``(ii) Providing family literacy services, 
                        especially to parents enrolled in participating 
                        schools, through the use of library materials 
                        and reading programs, strategies, and 
                        approaches that are based on scientifically 
                        based reading research, to encourage reading 
                        and support their children's reading 
                        development.
          ``(8) Local planning and administration.--A local educational 
        agency that receives a subgrant under this subsection may use 
        not more than 2 percent of the funds provided under the 
        subgrant for planning and administration.
  ``(d) Other State Uses of Funds.--
          ``(1) Professional development.--
                  ``(A) In general.--A State that receives a grant 
                under this section may expend not more than 15 percent 
                of the amount of the funds provided under the grant--
                          ``(i) to develop and implement a program of 
                        in-service professional development for 
                        teachers of kindergarten through third grade, 
                        and special education teachers of grades 
                        kindergarten through 12, that--
                                  ``(I) will prepare these teachers in 
                                all of the essential components of 
                                reading instruction;
                                  ``(II) shall include--
                                          ``(aa) information on 
                                        interventions, instructional 
                                        materials, programs, and 
                                        approaches based on 
                                        scientifically based reading 
                                        research, including early 
                                        intervention and reading 
                                        remediation materials, 
                                        programs, and approaches; and
                                          ``(bb) instruction in the use 
                                        of rigorous diagnostic reading 
                                        and screening assessment tools 
                                        and other procedures to improve 
                                        instruction and 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;
                          ``(ii) to strengthen and enhance professional 
                        development courses for students preparing, at 
                        all public institutions of higher education in 
                        the State, to teach kindergarten through third 
                        grades by--
                                  ``(I) reviewing such courses to 
                                determine whether their 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) preparing a report on the 
                                results of such reviews, submitting it 
                                to the reading and literacy partnership 
                                for the State established under section 
                                1204(d), and making it available for 
                                public review via the Internet; and
                          ``(iii) to make recommendations on how the 
                        State's licensure and certification standards 
                        in the area of reading might be improved.
                  ``(B) Funds not used for professional development.--
                Any portion of the funds described in subparagraph (A) 
                that a State does not expend in accordance with such 
                subparagraph shall be expended for the purpose of 
                making subgrants in accordance with subsection (c).
          ``(2) Other state-level activities.--A State that receives a 
        grant under this section may expend not more than 3 percent of 
        the amount of the funds provided under the grant for one or 
        more of the following authorized State activities:
                  ``(A) Assisting local educational agencies in 
                accomplishing the tasks required to design and 
                implement a classroom reading program under this 
                subpart, including--
                          ``(i) selecting and implementing a program or 
                        programs of classroom reading instruction based 
                        on scientifically based reading research;
                          ``(ii) selecting rigorous diagnostic reading 
                        and screening assessment tools; 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 to students in kindergarten through 
                third grades, through appropriate providers, reading 
                instruction that includes--
                          ``(i) rigorous diagnostic reading and 
                        screening assessment tools; and
                          ``(ii) as need is indicated by such 
                        assessments, instruction based on 
                        scientifically based reading research that 
                        includes the essential components of reading 
                        instruction.
          ``(3) Planning, administration, and reporting.--
                  ``(A) In general.--A State that receives a grant 
                under this section shall expend not more than 2 percent 
                of the amount of the funds provided under the grant for 
                the activities described in this paragraph.
                  ``(B) Planning and administration.--A State that 
                receives a grant under this section may expend funds 
                described in subparagraph (A) for--
                          ``(i) planning and administration relating to 
                        the State uses of funds authorized under this 
                        subpart, including administering the 
                        distribution of competitive subgrants to local 
                        educational agencies under this section and 
                        section 1205; and
                          ``(ii) assessing and evaluating, on a regular 
                        basis, local educational agency activities 
                        assisted under this subpart, with respect to 
                        whether they have been effective in increasing 
                        the number of children in first and second 
                        grades served under this subpart who can read 
                        at or above grade level.
                  ``(C) Annual reporting.--
                          ``(i) In general.--A State that receives a 
                        grant under this section shall expend funds 
                        provided under the grant to provide the 
                        Secretary annually with a report on the 
                        implementation of this subpart. The report 
                        shall include evidence that the State is 
                        fulfilling its obligations under this subpart. 
                        The report shall include a specific 
                        identification of those schools and local 
                        educational agencies that report the largest 
                        gains in reading achievement.
                          ``(ii) Privacy protection.--Data in the 
                        report shall be set forth in a manner that 
                        protects the privacy of individuals.
                          ``(iii) Contract.--To the extent practicable, 
                        a State shall enter into a contract with an 
                        entity that conducts scientifically based 
                        reading research, under which contract the 
                        entity will produce the reports required to be 
                        submitted under this subparagraph.

``SEC. 1204. STATE FORMULA GRANT APPLICATIONS.

  ``(a) In General.--A State that desires to receive a grant under 
section 1203 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).
  ``(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's activities under this subpart.
          ``(2) An assurance that the State will submit to the 
        Secretary, at such time and in such manner as the Secretary may 
        reasonably require, a State plan containing a description of a 
        process--
                  ``(A) to evaluate programs carried out by local 
                educational agencies under this subpart;
                  ``(B) to assist local educational agencies in 
                identifying rigorous diagnostic reading and screening 
                assessment tools; and
                  ``(C) to assist local educational agencies in 
                identifying interventions, and instructional materials, 
                programs and approaches, based on scientifically based 
                reading research, including early intervention and 
                classroom reading materials and remedial programs and 
                approaches.
          ``(3) An assurance that the State, and local educational 
        agencies in the State, will participate in all national 
        evaluations under this subpart.
  ``(c) Approval of Applications.--
          ``(1) In general.--The Secretary, in consultation with the 
        peer review panel convened under paragraph (2), shall approve 
        an application of a State under this section 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) 3 individuals selected by the 
                        Secretary;
                          ``(ii) 3 individuals selected by the National 
                        Institute for Literacy;
                          ``(iii) 3 individuals selected by the 
                        National Research Council of the National 
                        Academy of Sciences; and
                          ``(iv) 3 individuals selected by the National 
                        Institute of Child Health and Human 
                        Development.
                  ``(B) Experts.--The panel shall include experts who 
                are competent, by virtue of their training, expertise, 
                or experience, to evaluate applications under this 
                section, and experts who provide professional 
                development to teachers of reading to children and 
                adults, and experts who provide professional 
                development to other instructional staff, based on 
                scientifically based reading research.
                  ``(C) Recommendations.--The panel shall recommend 
                grant applications from States under this section to 
                the Secretary for funding or for disapproval.
  ``(d) Reading and Literacy Partnerships.--
          ``(1) In general.--In order for a State to receive a grant 
        under section 1203, 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 local educational agency that is eligible to 
                receive a subgrant under section 1203.
                  ``(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.
                  ``(G) A parent of a public or private school student 
                or a parent who educates their child or children in 
                their 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 an 
                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 based on scientifically 
                based reading research in the State;
                  ``(B) a local educational agency;
                  ``(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.

``SEC. 1205. DISCRETIONARY GRANTS TO STATES.

  ``(a) In General.--In the case of a State that, in accordance with 
sections 1203 and 1204, has received approval of an application for a 
5-year formula grant, the Secretary may make additional 2-year 
discretionary grants to the State for the use specified in (d). For 
each fiscal year, the funds provided under the discretionary grant 
shall equal the allotment determined for the State under subsection 
(b).
  ``(b) Determination of Amount of Allotments.--From the total amount 
made available under section 1002(b)(1) to carry out this subpart for a 
fiscal year and not reserved under paragraph (1), the Secretary, upon 
the recommendation of the peer review panel convened under section 
1204(c)(2), shall allot 20 percent under this section among the States 
described in subsection (a)--
          ``(1) for fiscal years 2002 and 2003, based upon a 
        determination of such States' relative likelihood of 
        effectively implementing a program under this subpart; and
          ``(2) for fiscal year 2004 and subsequent fiscal years, based 
        upon such States' applications under subsection (c).
  ``(c) State Discretionary Grant Applications.--
          ``(1) In general.--A State that desires to receive a grant 
        under this section for a grant period that includes any fiscal 
        year after fiscal year 2003 shall submit the information 
        described in paragraph (3) to the Secretary at such time and in 
        such form as the Secretary may require.
          ``(2) Peer review.--The peer review panel convened under 
        section 1204(c)(2) shall review the information submitted under 
        this subsection. The panel shall recommend such applications to 
        the Secretary for funding or for disapproval.
          ``(3) Information.--The information described in this 
        paragraph is the following:
                  ``(A) An assurance that the State will award 
                competitive subgrants to local educational agencies 
                consistent with subsection (d)(4).
                  ``(B) An assurance that the State will ensure that 
                local educational agencies that receive a subgrant 
                under subsection (d) use the funds provided under the 
                subgrant in accordance with subsection (d)(5).
                  ``(C) Evidence that the State has increased 
                significantly the percentage of students reading at 
                grade level or above.
                  ``(D) Evidence that the State has been successful in 
                increasing the percentage of students in ethnic, 
                racial, and low-income populations who are reading at 
                grade level or above.
                  ``(E) Any additional evidence that demonstrates 
                success in the implementation of this subpart.
  ``(d) Subgrants to Local Educational Agencies.--
          ``(1) In general.--The Secretary may make a grant to a State 
        under this section only if the State 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 local educational agencies.
          ``(2) Notice.--A State 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, a local educational agency shall submit 
        an application to the State at such time, in such manner, and 
        containing such information as the State may reasonably 
        require.
          ``(4) Distribution.--
                  ``(A) In general.--A State shall distribute subgrants 
                under this section through a competitive process based 
                on relative need and the evidence described in this 
                paragraph.
                  ``(B) Evidence used in all years.--For all fiscal 
                years, a State shall distribute subgrants under this 
                section based on evidence that a local educational 
                agency--
                          ``(i) satisfies the requirements of section 
                        1203(c)(4);
                          ``(ii) will carry out its obligations under 
                        this subpart, particularly paragraph (5); and
                          ``(iii) will work with other local 
                        educational agencies in the State that have not 
                        received a subgrant under this subsection to 
                        assist such non-receiving agencies in 
                        increasing the reading achievement of students.
                  ``(C) Evidence used in fiscal years after 2003.--For 
                fiscal year 2004 and subsequent fiscal years, a State 
                shall distribute subgrants under this section based on 
                the evidence described in subparagraph (B) and, in 
                addition, evidence that a local educational agency--
                          ``(i) has significantly increased the 
                        percentage of all students reading at grade 
                        level or above;
                          ``(ii) has significantly increased the 
                        percentage of students in ethnic, racial, and 
                        low-income populations who are reading at grade 
                        level or above; and
                          ``(iii) has demonstrated success in the 
                        implementation of this subpart.
          ``(5) Local uses of funds.--A local educational agency that 
        receives a subgrant under this subsection--
                  ``(A) shall use the funds provided under the subgrant 
                to carry out the activities described in section 
                1203(c)(7)(A); and
                  ``(B) may use such funds to carry out the activities 
                described in section 1203(c)(7)(B).
  ``(e) Definition.--For purposes of this section, the term `State' 
means each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.

``SEC. 1206. EXTERNAL EVALUATION.

  ``(a) In General.--From funds reserved under section 1203(b)(1)(C), 
the Secretary shall contract with an independent outside organization 
for a 5-year, rigorous, scientifically valid, quantitative evaluation 
of this subpart.
  ``(b) Process.--Such evaluation shall be conducted by an organization 
outside of the Department that is capable of designing and carrying out 
an independent evaluation that identifies the effects of specific 
activities carried out by States and local educational agencies under 
this subpart on improving reading instruction. Such evaluation shall 
use only data relating to students served under this subpart and shall 
take into account factors influencing student performance that are not 
controlled by teachers or education administrators.
  ``(c) Analysis.--Such evaluation 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 States 
        and local educational agencies measure the essential components 
        of reading instruction.
          ``(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 discretionary 
        grant under section 1205 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 rigorous 
        diagnostic reading and screening assessment tools assist 
        teachers in identifying specific reading deficiencies.
          ``(7) A measurement of the extent to which professional 
        development programs implemented by States 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 States and local educational 
agencies on a periodic basis for use in program improvement.

``SEC. 1207. NATIONAL ACTIVITIES.

  ``From funds reserved under section 1203(b)(1)(D), the Secretary may 
provide technical assistance in achieving the purposes of this subpart 
to States, local educational agencies, and schools requesting such 
assistance.

``SEC. 1208. INFORMATION DISSEMINATION.

  ``(a) In General.--From funds reserved under section 1203(b)(1)(E), 
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--
          ``(1) shall disseminate information on scientifically based 
        reading research pertaining to children, youth, and adults;
          ``(2) shall identify and disseminate information about 
        schools, local educational agencies, and States that 
        effectively developed and implemented classroom reading 
        programs that meet the requirements of this subpart, including 
        those effective States, local educational agencies, and schools 
        identified through the evaluation and peer review provisions of 
        this subpart; and
          ``(3) shall 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.--
          ``(1) In general.--At a minimum, the National Institute for 
        Literacy shall disseminate such information to--
                  ``(A) recipients of Federal financial assistance 
                under part A of this title, part A of title III, the 
                Head Start Act, the Individuals with Disabilities 
                Education Act, and the Adult Education and Family 
                Literacy Act; and
                  ``(B) each Bureau funded school (as defined in 
                section 1141(3) of the Education Amendments of 1978).
          ``(2) Use of existing networks.--In carrying out this 
        section, the National Institute for Literacy shall, to the 
        extent practicable, utilize existing information and 
        dissemination networks developed and maintained through other 
        public and private entities.

``SEC. 1209. DEFINITIONS.

  ``For purposes of this subpart:
          ``(1) 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.
          ``(2) 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) oral reading fluency; and
                  ``(E) reading comprehension strategies.
          ``(3) 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.
          ``(4) 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.
          ``(5) Rigorous diagnostic reading and screening assessment 
        tools.--The term `rigorous diagnostic reading and screening 
        assessment tools' means assessments that--
                  ``(A) are valid, reliable, and based on 
                scientifically based reading research;
                  ``(B) measure progress in developing phonemic 
                awareness and phonics skills, vocabulary, reading 
                fluency, and reading comprehension;
                  ``(C) identify students who may be at risk for 
                reading failure or who are having difficulty reading; 
                and
                  ``(D) are used to improve instruction.
          ``(6) Scientifically based reading research.--The term 
        `scientifically based reading research'--
                  ``(A) means the application of rigorous, systematic, 
                and objective procedures to obtain valid knowledge 
                relevant to reading development, reading instruction, 
                and reading difficulties; and
                  ``(B) shall include research that--
                          ``(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.

                    ``Subpart 2--Early Reading First

``SEC. 1221. PURPOSES.

  ``The purposes of this subpart are as follows:
          ``(1) To improve prereading skills in children aged 3 through 
        5, particularly children from low-income families, in high-
        quality oral language and literature-rich environments.
          ``(2) To provide professional development for early childhood 
        teachers that prepares them with scientific research-based 
        knowledge of early reading development to assist in developing 
        the children's--
                  ``(A) automatic recognition of the letters of the 
                alphabet;
                  ``(B) understanding that spoken words are made up of 
                small segments of speech sounds and that certain 
                letters regularly represent such speech sounds;
                  ``(C) spoken vocabulary and oral comprehension 
                abilities; and
                  ``(D) understanding of semiotic concepts.
          ``(3) To use scientific research-based screening tools or 
        other appropriate measures to determine whether preschool 
        children are developing the skills identified in this section.
          ``(4) To identify and provide scientific research-based 
        prereading language and literacy activities and instructional 
        materials that can be used to assist in the development of 
        prereading skills in children.
          ``(5) To integrate such scientific research-based 
        instructional materials and literacy activities with existing 
        programs of preschools, child care agencies, and Head Start 
        centers, and with family literacy services.

``SEC. 1222. LOCAL EARLY READING FIRST GRANTS.

  ``(a) Program Authorized.--From amounts appropriated under section 
1002(b)(2), the Secretary shall make awards, on a competitive basis and 
for periods of not more than 5 years, to eligible applicants to enable 
such applicants to carry out activities that are consistent with the 
purposes of this subpart.
  ``(b) Definition of Eligible Applicant.--In this subpart, the term 
`eligible applicant' means--
          ``(1) a local educational agency;
          ``(2) one or more public or private organizations, acting on 
        behalf of one or more programs that serve children aged 3 
        through 5 (such as a program at a child care agency or Head 
        Start center or a family literacy program), which organizations 
        shall be located in a community served by a local educational 
        agency; or
          ``(3) one or more local educational agencies in collaboration 
        with one or more organizations described in paragraph (2).
  ``(c) Applications.--An eligible applicant that desires to receive a 
grant under this subpart shall submit an application to the Secretary, 
which shall include a description of--
          ``(1) the programs to be served by the proposed project, 
        including general demographic and socioeconomic information on 
        the communities in which the proposed project will be 
        administered;
          ``(2) how the proposed project will enhance the school 
        readiness of children aged 3 through 5 in high-quality oral 
        language and literature-rich environments;
          ``(3) how the proposed project will provide early childhood 
        teachers with scientific research-based knowledge of early 
        reading development and assist such teachers in developing the 
        children's prereading skills;
          ``(4) how the proposed project will provide services and 
        utilize 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 integrate such 
        instructional materials and literacy activities with existing 
        preschool programs and family literacy services;
          ``(6) how the proposed project will help staff in the 
        programs to meet the diverse needs of children in the 
        community, including children with limited English proficiency 
        and children with learning disabilities;
          ``(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) how the activities conducted under this subpart will be 
        coordinated with the eligible applicant's activities under 
        subpart 1, if the applicant has received a subgrant under such 
        subpart, at the kindergarten through third grade levels;
          ``(9) how the proposed project will evaluate the success of 
        the activities supported under this subpart in enhancing the 
        early language and reading development of children served by 
        the project; and
          ``(10) such other information as the Secretary may require.
  ``(d) 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 the peer review panel convened 
under section 1204(c)(2).
  ``(e) Local Uses of Funds.--
          ``(1) Required 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:
                  ``(A) Providing children aged 3 through 5 with high-
                quality oral language and literature-rich environments 
                in which to acquire prereading skills.
                  ``(B) Providing professional development for early 
                childhood teachers that prepares them with scientific 
                research-based knowledge of early reading development 
                to assist in developing the children's--
                          ``(i) automatic recognition of the letters of 
                        the alphabet;
                          ``(ii) understanding that spoken words are 
                        made up of small segments of speech sounds and 
                        that certain letters regularly represent such 
                        speech sounds;
                          ``(iii) spoken vocabulary and oral 
                        comprehension abilities; and
                          ``(iv) understanding of semiotic concepts.
                  ``(C) Identifying and providing scientific research-
                based prereading language and literacy activities and 
                instructional materials for use in developing the 
                children's--
                          ``(i) automatic recognition of the letters of 
                        the alphabet;
                          ``(ii) understanding that spoken words are 
                        made up of small segments of speech sounds and 
                        that certain letters regularly represent such 
                        speech sounds;
                          ``(iii) spoken vocabulary and oral 
                        comprehension abilities; and
                          ``(iv) understanding of semiotic concepts.
          ``(2) Optional activities.--An eligible applicant that 
        receives a grant under this subpart may use the funds provided 
        under the grant to carry out the following activities:
                  ``(A) Using scientific research-based screening tools 
                or other appropriate measures to determine whether 
                preschool children are developing the skills identified 
                in this subsection.
                  ``(B) Integrating such instructional materials and 
                literacy activities with programs of existing child 
                care agencies, preschools, and Head Start centers, and 
                with family literacy services.
  ``(f) Award Amounts.--The Secretary may establish a maximum award 
amount, or ranges of award amounts, for grants under this subpart.

``SEC. 1223. FEDERAL ADMINISTRATION.

  ``The Secretary shall consult with the Secretary of Health and Human 
Services in order to coordinate the activities undertaken under this 
subpart with programs under the Head Start Act (42 U.S.C. 9831 et 
seq.).

``SEC. 1224. 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.

``SEC. 1225. EVALUATION.

  ``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 $1,000,000 to conduct an 
independent evaluation of the effectiveness of this subpart.

``SEC. 1226. ADDITIONAL RESEARCH.

  ``From the amount made available under section 1002(b)(2) for each of 
the fiscal years 2002 through 2006, the Secretary shall reserve not 
more than $3,000,000 to conduct, in consultation with the National 
Institute for Child Health and Human Development, the National 
Institute for Literacy, and the Department of Health and Human 
Services, additional research on language and literacy development for 
children aged 3 through 5.''.

SEC. 112. AMENDMENTS TO EVEN START.

  Part B of title I (20 U.S.C. 6361 et seq.), as amended by section 
111, is further amended--
          (1) by inserting before section 1231 (as so redesignated by 
        section 111) the following:

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

          (2) in each of sections 1231 through 1242 (as so redesignated 
        by section 111)--
                  (A) by striking ``this part'' each place such term 
                appears and inserting ``this subpart''; and
                  (B) by striking ``1002(b)'' each place such term 
                appears and inserting ``1002(b)(3)'';
          (3) in section 1231(4), by striking ``2252)'' and inserting 
        ``1209)'';
          (4) in section 1232--
                  (A) in subsection (b)--
                          (i) in paragraph (1)(A), by striking 
                        ``1209;'' and inserting ``1239;''; and
                          (ii) in paragraph (2), by striking 
                        ``1211(b)'' each place such term appears and 
                        inserting ``1241(b)''; and
                  (B) in subsection (c)--
                          (i) by amending paragraph (2)(C) to read as 
                        follows:
                  ``(C) Coordination with subpart 1.--The consortium 
                shall coordinate its activities with the activities of 
                the reading and literacy partnership for the State 
                established under section 1204(d), if the State 
                receives a grant under section 1203.''; and
                          (ii) in paragraph (3), by striking ``2252).'' 
                        and inserting ``1209).'';
          (5) in section 1233--
                  (A) by striking ``1202(d)(1)'' each place such term 
                appears and inserting ``1232(d)(1)''; and
                  (B) by striking ``1210.'' and inserting ``1240.'';
          (6) in section 1234--
                  (A) in subsection (b)--
                          (i) in paragraph (1)(A), by moving the 
                        margins of clauses (v) and (vi) 2 ems to the 
                        right; and
                          (ii) in paragraph (3), by striking 
                        ``1202(a)(1)(C)'' and inserting 
                        ``1232(a)(1)(C)''; and
                  (B) in subsection (c)--
                          (i) in paragraph (1)--
                                  (I) by striking ``1203(a),'' and 
                                inserting ``1233(a),''; and
                                  (II) by striking ``1203(b)'' and 
                                inserting ``1233(b)''; and
                          (ii) in paragraph (2), by striking ``1210.'' 
                        and inserting ``1240.'';
          (7) in section 1235--
                  (A) in paragraph (10), by striking ``2252)'' and 
                inserting ``1209)'';
                  (B) in paragraph (12), by striking ``2252),'' and 
                inserting ``1209),''; and
                  (C) in paragraph (15), by striking ``program.'' and 
                inserting ``program to be used for program 
                improvement.'';
          (8) in section 1237--
                  (A) in subsection (c)(1)--
                          (i) in subparagraph (B), by striking 
                        ``1205;'' and inserting ``1235;''; and
                          (ii) in subparagraph (F), by striking 
                        ``14306;'' and inserting ``8306;''; and
                  (B) in subsection (d), by striking ``14302.'' and 
                inserting ``8302.'';
          (9) in section 1238--
                  (A) in subsection (a)(1)--
                          (i) in subparagraph (A)(ii), by striking 
                        ``1205;'' and inserting ``1235;''; and
                          (ii) in subparagraph (F), by striking 
                        ``1204(b);'' and inserting ``1234(b);''; and
                  (B) in subsection (b)--
                          (i) in paragraph (3)--
                                  (I) by striking ``1207(c)(1)(A)'' and 
                                inserting ``1237(c)(1)(A)''; and
                                  (II) by striking ``1210.'' and 
                                inserting ``1240.'';
                          (ii) in paragraph (4), by striking ``1210,'' 
                        and inserting ``1240,''; and
                          (iii) in paragraph (5)(B), by striking 
                        ``1204(b).'' and inserting ``1234(b).'';
          (10) in section 1239--
                  (A) by striking ``1202(b)(1),'' and inserting 
                ``1232(b)(1),''; and
                  (B) by striking ``1205(10)'' and inserting 
                ``1235(10)''; and
          (11) in section 1241--
                  (A) in subsection (b)(1)--
                          (i) by striking ``1202(b)(2),'' and inserting 
                        ``1232(b)(2),''; and
                          (ii) by striking ``2252);'' and inserting 
                        ``1209);''; and
                  (B) in subsection (c), by striking ``2258,'' and 
                inserting ``1208,''.

SEC. 113. INEXPENSIVE BOOK DISTRIBUTION PROGRAM.

  (a) Transfer and Redesignation.--Part E of title X (20 U.S.C. 8131) 
is transferred and redesignated as subpart 4 of part B of title I. 
Section 10501 is redesignated as section 1251.
  (b) Purpose.--Section 1251 (as so redesignated) is amended--
          (1) by striking subsection (e);
          (2) by redesignating subsection (d) as subsection (g);
          (3) by redesignating subsections (a) through (c) as 
        subsections (b) through (d), respectively; and
          (4) by inserting before subsection (b) (as so redesignated) 
        the following:
  ``(a) Purpose.--The purpose of this program is to establish and 
implement a model partnership between a governmental entity and a 
private entity, to help prepare young children for reading, and 
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 literacy 
resources, and shall assign the highest priority to serving the 
youngest and neediest children in the United States.''.
  (c) Authorization.--Section 1251(b) (as so redesignated) is amended 
by striking ``books to students, that motivate children to read.'' and 
inserting ``books to young and school-aged children that motivate them 
to read.''.
  (d) Requirements of Contract.--Section 1251(c) (as so redesignated) 
is amended--
          (1) in the matter preceding paragraph (1), by striking 
        ``subsection (a)'' and inserting ``subsection (b)''; and
          (2) in paragraph (4), by inserting ``training and'' before 
        ``technical''.
  (e) Special Rules for Certain Subcontractors; Multi-year Contracts.--
Section 1251 (as so redesignated) is amended by inserting after 
subsection (d) the following:
  ``(e) Special Rules for Certain Subcontractors.--
          ``(1) Funds from other federal sources.--Subcontractors 
        operating programs under this section in low-income 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.''.
  (f) Continuation of Awards.--Notwithstanding any other provision of 
this Act, any person or agency that was awarded a contract under part E 
of title X (20 U.S.C. 8131) prior to the date of the enactment of this 
Act shall continue to receive funds in accordance with the terms of 
such contract until the date on which the contract period terminates 
under such terms.

                PART C--EDUCATION OF MIGRATORY CHILDREN

SEC. 121. STATE ALLOCATIONS.

  Section 1303 (20 U.S.C. 6393) is amended--
          (1) by amending subsection (a) to read as follows:
  ``(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 three through 21 who reside in the State 
                full time and the full-time equivalent of the estimated 
                number of migratory children aged three through 21 who 
                reside in the State part time, as determined in 
                accordance with subsection (d); 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 than 48 percent, of the average expenditure per 
                pupil 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.'';
          (2) by amending subsection (b) to read as follows:
  ``(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 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--
                  ``(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 part than it received under this part 
        for the preceding fiscal year, the percentage in paragraph (1) 
        shall be the greater of the percentage in paragraph (1)(A) or 
        the percentage used for the preceding fiscal year.''; and
          (3) by striking subsection (d) and redesignating subsection 
        (e) as subsection (d).

SEC. 122. STATE APPLICATIONS; SERVICES.

  (a) Program Information.--Section 1304(b) (20 U.S.C. 6394(b)) is 
amended--
          (1) in paragraph (1), by striking ``addressed through'' and 
        all that follows through the semicolon at the end and inserting 
        the following:
        ``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 programs under part A 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;''; and
          (2) in paragraph (5), by striking ``the requirements of 
        paragraph (1);'' and inserting ``the numbers and needs of 
        migratory children, the requirements of subsection (d), and the 
        availability of funds from other Federal, State, and local 
        programs;''.
  (b) Assurances.--Section 1304(c) (20 U.S.C. 6394(c)) is amended--
          (1) in paragraph (1), by striking ``1306(b)(1);'' and 
        inserting ``1306(a);'';
          (2) in paragraph (2), by striking ``part F;'' and inserting 
        ``part H;''
          (3) in paragraph (3)--
                  (A) by striking ``appropriate'';
                  (B) by striking ``out, to the extent feasible,'' and 
                inserting ``out''; and
                  (C) by striking ``1118;'' and inserting ``1118, 
                unless extraordinary circumstances make implementation 
                consistent with such section impractical;''; and
          (4) in paragraph (7), by striking ``section 1303(e)'' and 
        inserting ``paragraphs (1)(A) and (2)(B)(i) of section 
        1303(a)''.

SEC. 123. AUTHORIZED ACTIVITIES.

  Section 1306 (20 U.S.C. 6396) is amended to read as follows:

``SEC. 1306. AUTHORIZED ACTIVITIES.

  ``(a) In General.--
          ``(1) Flexibility.--Each State educational agency, 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 shall first 
        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 of this title 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).
  ``(b) 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.
  ``(c) Special Rule.--Notwithstanding section 1114, a school that 
receives funds under this part shall continue to address the identified 
needs described in subsection (a)(1).''.

SEC. 124. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

  (a) Duration.--Section 1308(a)(2) (20 U.S.C. 6398(a)(2)) is amended 
by striking ``subpart'' and inserting ``subsection''.
  (b) Student Records.--Section 1308(b) (20 U.S.C. 6398(b)) is amended 
to read as follows:
  ``(b) Student Records.--
          ``(1) Assistance.--The Secretary shall assist States in 
        developing effective methods for the transfer of student 
        records and in determining the number of migratory children in 
        each State. The Secretary, in consultation with the States, 
        shall determine the minimum data elements that each State 
        receiving funds under this part shall collect and maintain. The 
        Secretary shall assist States to implement a system of linking 
        their student record transfer systems for the purpose of 
        electronic records maintenance and transfer for migrant 
        students.
          ``(2) 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 
        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.''.
  (c) Availability of Funds.--Section 1308(c) (20 U.S.C. 6398(c)) is 
amended by striking ``$6,000,000'' and inserting ``$10,000,000''.
  (d) Incentive Grants.--Section 1308(d) (20 U.S.C. 6398(d)) is amended 
to read as follows:
  ``(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.''.

                 PART D--NEGLECTED OR DELINQUENT YOUTH

SEC. 131. NEGLECTED OR DELINQUENT YOUTH.

  The heading for part D of title I is amended to read as follows:

    ``PART D--PREVENTION AND INTERVENTION PROGRAMS FOR NEGLECTED OR 
                    DELINQUENT CHILDREN AND YOUTH''.

SEC. 132. FINDINGS.

  Section 1401(a) (20 U.S.C. 6421(a)) is amended by striking paragraphs 
(6) through (9) and inserting the following:
          ``(6) Youth returning from correctional facilities need to be 
        involved in programs that provide them with high-level skills 
        and other support to help them stay in school and complete 
        their education.
          ``(7) Pregnant and parenting teenagers are a high-at-risk 
        group for dropping out of school and should be targeted by 
        dropout prevention programs.''.

SEC. 133. ALLOCATION OF FUNDS.

  Section 1412(b) (20 U.S.C. 6432(b)) is amended to read as follows:
  ``(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 part shall be the 
        amount determined by multiplying the number of children counted 
        under subparagraph (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--
                  ``(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 part than it received under this part 
        for the preceding fiscal year, the percentage in paragraph (1) 
        shall be the greater of the percentage in paragraph (1)(A) or 
        the percentage used for the preceding fiscal year.''.

SEC. 134. STATE PLAN AND STATE AGENCY APPLICATIONS.

  Section 1414 (20 U.S.C. 6434) is amended to read as follows:

``SEC. 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 part shall submit, for approval 
        by the Secretary, a plan for meeting the educational needs of 
        neglected and delinquent youth, for assisting in their 
        transition from institutions to locally operated programs, and 
        which is integrated with other programs under this Act or other 
        Acts, as appropriate, consistent with section 8306.
          ``(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 academic and vocational and technical skills 
                of children in the program;
                  ``(B) provide that, to the extent feasible, such 
                children will have the same opportunities to learn as 
                such children would have if such children were in the 
                schools of local educational agencies in the State; and
                  ``(C) contain assurances that the State educational 
                agency will--
                          ``(i) ensure that programs assisted under 
                        this part will be carried out in accordance 
                        with the State plan described in this 
                        subsection;
                          ``(ii) carry out the evaluation requirements 
                        of section 1416;
                          ``(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 part.
          ``(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 part 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;
          ``(2) provides assurances that in making services available 
        to youth in adult correctional facilities, priority will be 
        given to such 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 under this subpart;
          ``(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 agency will carry out the evaluation 
        requirements of section 8651 and how the results of the most 
        recent evaluation are used to plan and improve the program;
          ``(7) includes data showing that the agency has maintained 
        fiscal effort required of a local educational agency, in 
        accordance with section 8501;
          ``(8) describes how the programs will be coordinated with 
        other appropriate State and Federal programs, such as job 
        training programs, vocational and technical education programs, 
        State and local dropout prevention programs, and special 
        education programs;
          ``(9) describes how States will encourage correctional 
        facilities receiving funds under this subpart to coordinate 
        with local educational agencies or alternative education 
        programs attended by incarcerated youth prior to their 
        incarceration to ensure that student assessments and 
        appropriate academic records are shared jointly between the 
        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 institution 
        to be responsible for issues relating to the transition of 
        children and youth from the institution to locally operated 
        programs;
          ``(12) describes how the agency will endeavor to coordinate 
        with businesses for training and mentoring for participating 
        youth;
          ``(13) provides assurances that the agency will assist in 
        locating alternative programs through which students can 
        continue their education if students are not returning to 
        school after leaving the correctional facility;
          ``(14) provides assurances that the agency will work with 
        parents to secure parents' assistance in improving the 
        educational achievement of their children and preventing their 
        children's further involvement in delinquent activities;
          ``(15) provides assurances that the agency works with special 
        education youth in order to meet an existing individualized 
        education program and an assurance that the agency will notify 
        the youth's local school if such youth--
                  ``(A) is identified as in need of special education 
                services while the youth is in the facility; and
                  ``(B) intends to return to the local school;
          ``(16) provides assurances that the agency will work with 
        youth who dropped out of school before entering the facility to 
        encourage the youth to reenter school once the term of 
        incarceration has been completed or provide the youth with the 
        skills necessary to gain employment, continue the education of 
        the youth, or achieve a secondary school diploma or the 
        recognized equivalent if the youth does not intend to return to 
        school;
          ``(17) provides assurances that teachers and other qualified 
        staff are also trained to work with children 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 
        youth, such as career counseling, distance learning, and 
        assistance in securing student loans and grants; and
          ``(19) provides assurances 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.''.

SEC. 135. USE OF FUNDS.

  Section 1415(a) (20 U.S.C. 6435(a)) is amended--
          (1) in paragraph (1)(B), by inserting ``, vocational and 
        technical training'' after ``secondary school completion'';
          (2) in paragraph (2)(B)--
                  (A) in clause (i), by inserting ``and'' after the 
                semicolon;
                  (B) in clause (ii), by striking ``; and'' and 
                inserting a semicolon; and
                  (C) by striking clause (iii);
          (3) in paragraph (2)(C), by striking ``part F of this title'' 
        and inserting ``part H''; and
          (4) in paragraph (2)(D), by striking ``section 14701'' and 
        inserting ``section 8651''.

SEC. 136. TRANSITION SERVICES.

  Section 1418(a) (20 U.S.C. 6438(a)) is amended by striking ``10 
percent'' and inserting ``15 percent''.

SEC. 137. PURPOSE.

  Section 1421(3) (20 U.S.C. 6451(3)) is amended to read as follows:
          ``(3) operate programs in local schools for youth returning 
        from correctional facilities and programs which may also serve 
        youth at risk of dropping out of school.''.

SEC. 138. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

  Section 1422 (20 U.S.C. 6452) is amended--
          (1) in subsection (a), by striking ``retained'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Special Rule.--A local educational agency which includes a 
correctional facility that operates a school is not required to operate 
a program of support for children returning from such school to a 
school not operated by a correctional agency but served by such local 
educational agency if more than 30 percent of the youth attending the 
school operated by the correctional facility will reside outside the 
boundaries of the local educational agency after leaving such 
facility.''; and
          (3) by adding at the end the following:
  ``(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. 139. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

  Section 1423 (20 U.S.C. 6453) is amended by striking paragraphs (4) 
through (9) and inserting the following:
          ``(4) a description of the program operated by participating 
        schools for children returning from correctional facilities and 
        the types of services that such schools will provide such youth 
        and other at-risk youth;
          ``(5) a description of the characteristics (including 
        learning difficulties, substance abuse problems, and other 
        special needs) of the youth who will be returning from 
        correctional facilities and, as appropriate, other at-risk 
        youth expected to be served by the program and how the school 
        will coordinate existing educational programs to meet the 
        unique educational needs of such 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, students at risk of dropping out of school, and 
        other participating students, including prenatal health care 
        and nutrition services related to the health of the parent and 
        child, 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;
          ``(8) as appropriate, a description of how programs will 
        involve parents in efforts to improve the educational 
        achievement of their children, prevent the involvement of their 
        children in delinquent activities, and encourage their children 
        to remain in school and complete their education;
          ``(9) a description of how the program under this subpart 
        will be coordinated with other Federal, State, and local 
        programs, such as job training programs and vocational and 
        technical education programs serving this at-risk population of 
        youth.''.

SEC. 140. USES OF FUNDS.

  Section 1424 (20 U.S.C. 6454) is amended by striking paragraphs (1) 
through (3) and inserting the following:
          ``(1) programs that serve youth returning from correctional 
        facilities to local schools, to assist in the transition of 
        such youth to the school environment and help them remain in 
        school in order to complete their education;
          ``(2) providing assistance to other youth at risk of dropping 
        out of school, including pregnant and parenting teenagers;
          ``(3) the coordination of social, health, and other services, 
        including day care, for participating youth, if the provision 
        of such services will improve the likelihood that such youth 
        will complete their education;
          ``(4) special programs to meet the unique academic needs of 
        participating 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. 141. PROGRAM REQUIREMENTS.

  Section 1425 (20 U.S.C. 6455) is amended--
          (1) in the section heading, by striking ``THIS SECTION'' and 
        inserting ``THIS SUBPART'';
          (2) in the matter preceding paragraph (1), by striking ``this 
        section'' and inserting ``this subpart'';
          (3) in paragraph (1), by striking ``where feasible, ensure 
        educational programs'' and inserting ``to the extent 
        practicable, ensure that educational programs'';
          (4) in paragraphs (3) and (8), by striking ``where 
        feasible,'' and inserting ``to the extent practicable,'';
          (5) in paragraph (9)--
                  (A) by striking ``this program'' and inserting ``this 
                subpart'';
                  (B) by inserting ``and technical'' after 
                ``vocational''; and
                  (C) by striking ``title I of the Workforce Investment 
                Act of 1998'' and inserting ``other job training 
                programs'';
          (6) in paragraph (10), by inserting ``(42 U.S.C. 5601 et 
        seq.)'' after ``Juvenile Justice and Delinquency Prevention Act 
        of 1974''; and
          (7) by amending paragraph (11) to read as follows:
          ``(11) if appropriate, work with local businesses to develop 
        training, curriculum-based youth entrepreneurship education, 
        and mentoring programs for youth.''.

SEC. 142. PROGRAM EVALUATIONS.

  Section 1431(a) (20 U.S.C. 6471(a)) is amended by striking ``sex, and 
if feasible,'' and inserting ``gender,''.

             PART E--FEDERAL EVALUATIONS AND DEMONSTRATIONS

SEC. 151. EVALUATIONS.

  Section 1501 (20 U.S.C. 6491) is amended to read as follows:

``SEC. 1501. EVALUATIONS.

  ``(a) National Assessment.--
          ``(1) In general.--In accordance with this section, the 
        Secretary shall conduct a national assessment of programs 
        assisted under this title.
          ``(2) Issues to be examined.--In conducting the assessment 
        under this subsection, the Secretary shall examine--
                  ``(A) the implementation of programs assisted under 
                this title and the impact of such implementation on 
                increasing student academic achievement, particularly 
                schools with high concentrations of children living in 
                poverty;
                  ``(B) the implementation of State standards, 
                assessments, and accountability systems developed under 
                this title and the impact of such implementation on 
                educational programs and instruction at the local 
                level;
                  ``(C) the impact of schoolwide programs and targeted 
                assistance programs under this title on improving 
                student academic achievement;
                  ``(D) the extent to which varying models of 
                comprehensive school reform are funded under this 
                title, and the effect of the implementation of such 
                models on improving achievement of disadvantaged 
                students;
                  ``(E) the costs as compared to the benefits of the 
                activities assisted under this title;
                  ``(F) the impact of school choice options under 
                section 1116 on the academic achievement of 
                disadvantaged students, on schools in school 
                improvement, and on schools from which students have 
                transferred under such options;
                  ``(G) the extent to which actions authorized under 
                section 1116 of this title are employed by State and 
                local educational agencies to improve the academic 
                achievement of students in low-performing schools, and 
                the effectiveness of the implementation of such 
                actions;
                  ``(H) the extent to which technical assistance made 
                available under this title is used to improve the 
                achievement of students in low-performing schools, and 
                the impact of such assistance on such achievement;
                  ``(I) the extent to which State and local fiscal 
                accounting requirements under this title limit the 
                flexibility of schoolwide programs;
                  ``(J) the impact of the professional development 
                activities assisted under this title on instruction and 
                student performance;
                  ``(K) the extent to which the assistance made 
                available under this title is targeted to disadvantaged 
                students and schools that need them the most;
                  ``(L) the effectiveness of Federal administration 
                assistance made available under this title, including 
                monitoring and technical assistance; and
                  ``(M) 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 (20 U.S.C. 9010)), 
        state evaluations, and other research studies.
          ``(4) Coordination.--In carrying out this subsection, the 
        Secretary shall--
                  ``(A) coordinate conducting the national assessment 
                with conducting 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, including planning for and 
                reviewing the assessment.
          ``(5) Reports.--
                  ``(A) Interim report.--Not later than 3 years after 
                the date of enactment of the Leave No Child Behind Act 
                of 2001, the Secretary shall transmit to the President 
                and the Congress an interim report on the national 
                assessment conducted under this subsection.
                  ``(B) Final report.--Not later than 4 years after the 
                date of enactment of the Leave No Child Behind Act of 
                2001, the Secretary shall transmit to the President and 
                the Congress 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 the 
        making of grants to or contracts with appropriate entities--
                  ``(A) conduct studies and evaluations of the need 
                for, and effectiveness of, each program authorized 
                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 can 
                develop program performance indicators in order to 
                improve services and performance.
          ``(2) Minimum information.--Under 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 this title.
          ``(2) Issues to be examined.--In carrying out this 
        subsection, the Secretary shall ensure that the study referred 
        to in paragraph (1) provides the Congress and educators with 
        each of the following:
                  ``(A) An accurate description and analysis of short-
                term and long-term effectiveness of the assistance made 
                available under this title upon academic performance.
                  ``(B) Information that can be used to improve the 
                effectiveness of the assistance made available under 
                this title in enabling students to meet challenging 
                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 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 part;
                  ``(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) 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; and
                          ``(iii) other individuals with technical 
                        expertise who would contribute to the overall 
                        rigor and quality of the program evaluation.
                  ``(B) Limitations.--In appointing members of the 
                Review Panel under this subparagraph (A), the Secretary 
                shall ensure that--
                          ``(i) in order to ensure diversity, a 
                        majority of the number of individuals appointed 
                        under subparagraph (A)(i) represent disciplines 
                        or programs outside the field of education; and
                          ``(ii) the total number of the individuals 
                        appointed under subparagraph (A)(ii) or 
                        (A)(iii) does not exceed \1/3\ 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--
                          ``(i) that the final report described in 
                        subsection (a)(5)(B) is reviewed not later than 
                        120 days after its completion by not less than 
                        2 independent experts in program evaluation;
                          ``(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)(5)(B).''.

SEC. 152. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

  (a) In General.--Section 1502 (20 U.S.C. 6492) is amended--
          (1) by redesignating subsection (b) as subsection (c);
          (2) by striking in subsection (a) ``(2) Evaluation.--The 
        Secretary'' and inserting ``(b) Evaluation.--The Secretary'' 
        and by moving such subsection (b) 2 ems to the left;
          (3) by striking in subsection (a) ``Such projects shall 
        include promising'' and all that follows through ``career 
        guidance opportunities.'';
          (4) by striking ``student performance standards'' and 
        inserting ``student achievement standards'';
          (5) by inserting ``academic'' after ``to meet challenging 
        State''; and
          (6) by striking ``(a) Demonstration Programs'' and all that 
        follows through ``In general.--From the'' and inserting ``(a) 
        In General.--From the''.

SEC. 153. ELLENDER-CLOSE UP FELLOWSHIP PROGRAM; DROPOUT REPORTING.

  (a) In General.--Part E of title I (20 U.S.C. 6491 et seq.) is 
further amended by adding at the end the following:

``SEC. 1503. ELLENDER-CLOSE UP FELLOWSHIP PROGRAM

  ``(a) Findings.--Congress finds the following:
          ``(1) It is a worthwhile goal to ensure that all students in 
        America are prepared for responsible citizenship and that all 
        students should have the opportunity to be involved in 
        activities that promote and demonstrate good citizenship.
          ``(2) It is a worthwhile goal to ensure that America's 
        educators have access to programs for the continued improvement 
        of their professional skills.
          ``(3) Allen J. Ellender, a Senator from Louisiana and 
        President pro tempore of the United States Senate, had a 
        distinguished career in public service characterized by 
        extraordinary energy and real concern for young people. Senator 
        Ellender provided valuable support and encouragement to the 
        Close Up Foundation, a nonpartisan, nonprofit foundation 
        promoting knowledge and understanding of the Federal Government 
        among young people and educators. Therefore, it is a fitting 
        and appropriate tribute to Senator Ellender to provide 
        fellowships in his name to students of limited economic means 
        and the teachers who work with such students, so that such 
        students and teachers may participate in the programs supported 
        by the Close Up Foundation.
          ``(4) The Close Up Foundation is a nonpartisan, nonprofit, 
        education foundation promoting civic responsibility and 
        knowledge and understanding of the Federal Government among 
        young people and educators. The Congress has consistently 
        supported the Close Up Foundation's work with disadvantaged 
        young people and their educators through the Allen J. Ellender 
        Fellowship Program. Therefore, it is fitting and appropriate to 
        continue support under the successor Ellender-Close Up 
        Fellowship Program to students of limited economic means and 
        the teachers who work with such students, so that such students 
        and teachers may participate in the programs supported by the 
        Close Up Foundation.
  ``(b) Program for Middle 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 Federal Government among middle 
                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 program described in subparagraph (A). Financial 
                assistance received pursuant to this subsection by such 
                students shall be known as Ellender-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 provisions 
                to assure--
                          ``(i) that fellowship grants are made to 
                        economically disadvantaged middle and secondary 
                        school students;
                          ``(ii) that every effort will be made to 
                        ensure the participation of students from rural 
                        and small town areas, as well as from urban 
                        areas, and that in awarding fellowships to 
                        economically disadvantaged students, special 
                        consideration will be given to the 
                        participation of students with special 
                        educational needs, including students with 
                        disabilities, ethnic minority students, recent 
                        immigrants, and gifted and talented students; 
                        and
                          ``(iii) the proper disbursement of the funds 
                        received under this subsection.
  ``(c) Program for Middle 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 and 
                secondary school teachers and to promote greater civic 
                understanding and responsibility among the students of 
                such teachers.
                  ``(B) Use of funds.--Grants under this subsection 
                shall be used only for financial assistance to teachers 
                who participate in the program described in 
                subparagraph (A). Financial assistance received 
                pursuant to this subpart by such individuals shall be 
                known as Ellender-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 provisions 
                to assure--
                          ``(i) that fellowship grants are made only to 
                        teachers who have worked with at least one 
                        student from such teacher's school who 
                        participates in the programs described in 
                        subsection (b);
                          ``(ii) that no teacher in each school 
                        participating in the programs assisted under 
                        subsection (b) may receive more than one 
                        fellowship in any fiscal year; and
                          ``(iii) the proper disbursement of the funds 
                        received under this subsection.
  ``(d) Programs for Recent Immigrants and Students of Migrant 
Parents.--
          ``(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 understanding of the Federal 
                Government among economically disadvantaged recent 
                immigrants and students of migrant parents.
                  ``(B) Use of funds.--Grants under this subsection 
                shall be used for financial assistance to economically 
                disadvantaged older Americans, recent immigrants and 
                students of migrant parents who participate in the 
                program described in subsection (a). Financial 
                assistance received pursuant to this subpart by such 
                individuals shall be known as Ellender-Close Up 
                fellowships.
          ``(2) Applications.--
                  ``(A) Application Required.--No grant under this 
                subsection may be made except upon 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 
                provisions--
                          ``(i) to assure that fellowship grants are 
                        made to economically disadvantaged recent 
                        immigrants and students of migrant parents;
                          ``(ii) to assure that every effort will be 
                        made to ensure the participation of recent 
                        immigrants and students of migrant parents from 
                        rural and small town areas, as well as from 
                        urban areas, and that in awarding fellowships, 
                        special consideration will be given to the 
                        participation of recent immigrants and students 
                        of migrant parents with special needs, 
                        including individuals with disabilities, ethnic 
                        minorities, and gifted and talented students;
                          ``(iii) that fully describe the activities to 
                        be carried out with the proceeds of the grant; 
                        and
                          ``(iv) to assure the proper disbursement of 
                        the funds received under this subsection.
  ``(e) General Provisions.--
          ``(1) Administrative provisions.--
                  ``(A) General rule.--Payments under this section may 
                be made in installments, in advance, or by way of 
                reimbursement, with necessary adjustments on account of 
                underpayment or overpayment.
                  ``(B) 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.
  ``(f) Limitation.--Of the funds appropriated to carry out this 
section under section 1002, the Secretary may use not more than 30 
percent to carry out subsection (c) of this section.

``SEC. 1504. DROPOUT REPORTING.

  ``State educational agencies receiving funds under this title shall 
annually report to the National Center on Education Statistics 
(established under section 403 of the National Education Statistics Act 
of 1994 (20 U.S.C. 9002)) on the dropout rate of students in the State, 
as defined for the Center's Common Core of Data.''.
  (b) Continuation of Awards.--Notwithstanding any other provision of 
this Act, any person or agency that was awarded a grant under part G of 
title X (20 U.S.C. 8161 et seq.) prior to the date of the enactment of 
this Act 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. 161. SCHOOL REFORM.

  Part F of title I is amended to read as follows:

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

``SEC. 1601. COMPREHENSIVE SCHOOL REFORM.

  ``(a) Findings and Purpose.--
          ``(1) Findings.--Congress finds the following:
                  ``(A) A number of schools across the country have 
                shown impressive gains in student performance through 
                the use of comprehensive models for schoolwide change 
                that incorporate virtually all aspects of school 
                operations.
                  ``(B) No single comprehensive school reform model may 
                be suitable for every school, however, schools should 
                be encouraged to examine successful, externally 
                developed comprehensive school reform approaches as 
                they undertake comprehensive school reform.
                  ``(C) Comprehensive school reform is an important 
                means by which children are assisted in meeting 
                challenging State student academic achievement 
                standards.
          ``(2) Purpose.--The purpose of this section 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 content and academic achievement standards.
  ``(b) Program Authorized.--
          ``(1) In general.--The Secretary is authorized to provide 
        grants to State educational agencies to provide subgrants to 
        local educational agencies to carry out the purpose described 
        in subsection (a)(2).
          ``(2) Allocation.--
                  ``(A) Reservation.--Of the amount appropriated under 
                this section, the Secretary may reserve--
                          ``(i) not more than 1 percent for 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;
                          ``(ii) not more than 1 percent to conduct 
                        national evaluation activities described under 
                        subsection (e); and
                          ``(iii) not more than 2 percent of the amount 
                        appropriated in fiscal year 2002 to carry out 
                        this part, for quality initiatives described 
                        under subsection (f).
                  ``(B) In general.--Of the amount of funds remaining 
                after the reservation under subparagraph (A), the 
                Secretary shall allocate to each State for a 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 
                allocated under section 1124 to all States for that 
                year.
                  ``(C) Reallocation.--If a State does not apply for 
                funds under this section, the Secretary shall 
                reallocate such funds to other States that do apply in 
                proportion to the amount allocated to such States under 
                subparagraph (B).
  ``(c) State Awards.--
          ``(1) State application.--
                  ``(A) In general.--Each 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 and containing such other information as 
                the Secretary may reasonably require.
                  ``(B) Contents.--Each State application shall also 
                describe--
                          ``(i) the process and selection criteria by 
                        which the State educational agency, using 
                        expert review, will select local educational 
                        agencies to receive subgrants under this 
                        section;
                          ``(ii) how the agency will ensure that funds 
                        under this part are used only for comprehensive 
                        school reform programs that--
                                  ``(I) include each of the components 
                                described in subsection (d)(2);
                                  ``(II) have the capacity to improve 
                                the academic achievement of all 
                                students in core academic subjects 
                                within participating schools; and
                                  ``(III) are supported by technical 
                                assistance providers that have a 
                                successful track record, financial 
                                stability, and the capacity to deliver 
                                high-quality materials and professional 
                                development for school personnel.
                          ``(iii) how the agency will disseminate 
                        materials regarding information on 
                        comprehensive school reforms that are based on 
                        scientifically-based research and effective 
                        practices;
                          ``(iv) how the agency will evaluate annually 
                        the implementation of such reforms and measure 
                        the extent to which the reforms resulted in 
                        increased student academic performance; and
                          ``(v) how the 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.
          ``(2) Uses of funds.--
                  ``(A) In general.--Except as provided in subparagraph 
                (E), a State educational agency that receives an award 
                under this section shall use such funds to provide 
                competitive grants to local educational agencies or 
                consortia of local educational agencies in the State 
                receiving funds under part A to support comprehensive 
                school reforms in schools eligible for funds under such 
                part.
                  ``(B) Grant requirements.--A grant to a local 
                educational agency or consortium shall be--
                          ``(i) of sufficient size and scope to support 
                        the initial costs of the comprehensive school 
                        reforms selected or designed by each school 
                        identified in the application of the local 
                        educational agency or consortium;
                          ``(ii) in an amount not less than $50,000 to 
                        each participating school; and
                          ``(iii) renewable for two additional 1-year 
                        periods after the initial 1-year grant is made 
                        if schools are making substantial progress in 
                        the implementation of their reforms.
                  ``(C) Priority.--The State, in awarding grants under 
                this paragraph, shall give priority to local 
                educational agencies that--
                          ``(i) plan to use the funds in schools 
                        identified as being in need of improvement or 
                        corrective action under section 1116(c); or
                          ``(ii) 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 making subgrant awards 
                under this part, the State educational agency shall 
                take into account the equitable distribution of awards 
                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 award under this section 
                may reserve not more than 5 percent of such award for 
                administrative, evaluation, and technical assistance 
                expenses.
                  ``(F) Supplement.--Funds made available under this 
                section shall be used to supplement, not supplant, any 
                other Federal, State, or local funds that would 
                otherwise be available to carry out this section.
          ``(3) Reporting.--Each State educational agency that receives 
        an award under this section shall provide to the Secretary such 
        information as the Secretary may require, including the names 
        of local educational agencies and schools selected to receive 
        subgrant awards under this section, the amount of such award, a 
        description of the comprehensive school reforms selected and in 
        use and a copy of the State's annual evaluation of the 
        implementation of comprehensive school reforms supported under 
        this part and student achievement results.
  ``(d) Local Awards.--
          ``(1) In general.--Each local educational agency or 
        consortium that applies for a subgrant under this section 
        shall--
                  ``(A) identify which schools eligible for funds under 
                part A plan to implement a comprehensive school reform 
                program, including the projected costs of such a 
                program;
                  ``(B) describe the comprehensive school reforms based 
                on scientifically-based research and effective 
                practices that such schools will implement;
                  ``(C) describe how the agency or consortium will 
                provide technical assistance and support for the 
                effective implementation of the school reforms based on 
                scientifically-based research and effective practices 
                selected by such schools; and
                  ``(D) describe how the agency or consortium will 
                evaluate the implementation of such reforms and measure 
                the results achieved in improving student academic 
                performance.
          ``(2) Components of the program.--A local educational agency 
        that receives a subgrant award under this section shall provide 
        such funds to schools that implement a comprehensive school 
        reform program that--
                  ``(A) 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 similar schools;
                  ``(B) 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 reform 
                plan for schoolwide change designed to enable all 
                students to meet challenging State content and 
                challenging student performance standards and addresses 
                needs identified through a school needs assessment;
                  ``(C) provides high-quality and continuous teacher 
                and staff professional development;
                  ``(D) includes measurable goals for student 
                performance and benchmarks for meeting such goals;
                  ``(E) is supported by teachers, principals, 
                administrators, and other professional staff;
                  ``(F) provides for the meaningful involvement of 
                parents and the local community in planning and 
                implementing school improvement activities;
                  ``(G) uses high quality external technical support 
                and assistance from an entity, which may be an 
                institution of higher education, with experience and 
                expertise in schoolwide reform and improvement;
                  ``(H) includes a plan for the annual evaluation of 
                the implementation of school reforms and the student 
                results achieved;
                  ``(I) identifies how other resources, including 
                Federal, State, local, and private resources, available 
                to the school will be used to coordinate services to 
                support and sustain the school reform effort; and
                  ``(J)(i) has been found, through rigorous field 
                experiments in multiple sites, to significantly improve 
                the academic performance of students participating in 
                such activity or program as compared to similar 
                students in similar schools, who have not participated 
                in such activity or program; or
                  ``(ii) has been found to have strong evidence that 
                such model will significantly improve the performance 
                of participating children.
          ``(3) 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 its own 
        comprehensive school reform program for schoolwide change that 
        complies with paragraph (2).
  ``(e) Evaluation and Report.--
          ``(1) In general.--The Secretary shall develop a plan for a 
        national evaluation of the programs developed pursuant to this 
        section.
          ``(2) Evaluation.--This national evaluation shall evaluate 
        the implementation and results achieved by schools after 3 
        years of implementing comprehensive school reforms, and assess 
        the effectiveness of comprehensive school reforms in schools 
        with diverse characteristics.
          ``(3) Reports.--Prior to the completion of a national 
        evaluation, the Secretary shall submit an interim report 
        outlining first year implementation activities to the 
        Committees on Education and the Workforce and Appropriations of 
        the House of Representatives and the Committees on Health, 
        Education, Labor, and Pensions and Appropriations of the 
        Senate.
  ``(f) Quality Initiatives.--The Secretary, through grants or 
contracts, shall provide funds for the following activities:
          ``(1) Technical assistance.--A joint public and private 
        partnership that receives matching funds from private 
        organizations, in order to assist States, local educational 
        agencies, and schools in making informed decisions when 
        approving or selecting providers of comprehensive school 
        reform, consistent with the requirements described in 
        subsection (d)(3).
          ``(2) Other activities.--Other activities that--
                  ``(A) encourage the development of comprehensive 
                reform models;
                  ``(B) build the capacity of comprehensive school 
                reform providers to increase the number of schools the 
                providers can serve; and
                  ``(C) ensure that schools served receive high quality 
                services that meet the needs of their teachers and 
                students.''.

           PART G--RURAL EDUCATION FLEXIBILITY AND ASSISTANCE

SEC. 171. RURAL EDUCATION.

  Title I is amended by adding at the end the following new part:

          ``PART G--RURAL EDUCATION FLEXIBILITY AND ASSISTANCE

``SEC. 1701. SHORT TITLE.

  ``This part may be cited as the `Rural Education Initiative Act'.

``SEC. 1702. FINDINGS.

  ``Congress finds the following:
          ``(1) While there are rural education initiatives identified 
        at the State and local level, no Federal education policy 
        focuses on the specific and unique needs of rural school 
        districts and schools.
          ``(2) Small school districts often cannot use Federal grant 
        funds distributed by formula because the formula allocation 
        does not provide enough revenue to carry out the program the 
        grant is intended to fund.
          ``(3) Rural schools often cannot compete for Federal funding 
        distributed by competitive grants because the schools lack the 
        personnel needed to prepare grant applications and the 
        resources to hire specialists in the writing of Federal grant 
        proposals.
          ``(4) A critical problem for rural school districts involves 
        the hiring and retention of qualified administrators and 
        certified teachers (especially in reading, science, and 
        mathematics). As a result, teachers in rural schools are almost 
        twice as likely to provide instruction in three or more subject 
        areas than teachers in urban schools. Rural schools also face 
        other tough challenges, such as shrinking local tax bases, high 
        transportation costs, aging buildings, limited course 
        offerings, and limited resources.

                ``Subpart 1--Rural Education Flexibility

``SEC. 1711. FORMULA GRANT PROGRAM AUTHORIZED.

  ``(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 in part A of title I, part A of 
        title II, part A of title III, part A of title IV, or part A or 
        B 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) not later than 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) the total number of students in average 
                daily attendance at all of the schools served by the 
                local educational agency is less than 600; 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 of 
                Education; 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 
        or not to waive the criteria described in paragraph (1)(A)(ii) 
        based on a demonstration by a 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.--In this section, the term `applicable 
funding' means funds provided under part A of title II, section 3106, 
part A of title IV, part A of title V, and section 5212(2)(A).
  ``(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 that 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) Supplement Not Supplant.--Funds used under this section shall 
be used to supplement and not supplant any other Federal, State, or 
local education funds that would otherwise be available for the purpose 
of this subpart.
  ``(f) Applicable Rule.--Except as otherwise provided in this subpart, 
funds transferred under this subpart are subject to each of the rules 
and requirements applicable to the funds allocated by the Secretary 
under the provision to which the transferred funds are transferred.

``SEC. 1712. PROGRAM AUTHORIZED.

  ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies under section 1711(b) to enable the 
local educational agencies to support local or statewide education 
reform efforts intended to improve the academic achievement of 
elementary school and secondary school students and the quality of 
instruction provided for the students.
  ``(b) Allocation.--
          ``(1) In general.--Except as provided in paragraph (3), the 
        Secretary shall award a grant to an eligible local educational 
        agency under section 1711(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 under the 
        provisions of law described under section 1711(c) for the 
        preceding fiscal year.
          ``(2) Determination of the initial amount.--The initial 
        amount referred to in paragraph (1) is equal to $100 multiplied 
        by the total number of students, over 50 students, in average 
        daily attendance in such eligible 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 for 
                this subpart 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.
          ``(4) Census determination.--
                  ``(A) In general.--Each local educational agency 
                desiring a grant under this section shall conduct a 
                census not later than December 1 of each year to 
                determine the number of kindergarten through grade 12 
                students in average daily attendance at the schools 
                served by the local educational agency.
                  ``(B) Submission.--Each local educational agency 
                shall submit the number described in subparagraph (A) 
                to the Secretary not later than March 1 of each year.
  ``(c) Disbursal.--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 year.
  ``(d) Special Rule.--A local educational agency that is eligible to 
receive a grant under this subpart for a fiscal year shall be 
ineligible to receive funds for such fiscal year under subpart 2.
  ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other Federal, 
State, or local education funds.

``SEC. 1713. ACCOUNTABILITY.

  ``(a) Academic Achievement.--
          ``(1) In general.--Each local educational agency that uses or 
        receives funds under section 1711 or 1712 for a fiscal year 
        shall administer an assessment consistent with section 1111.
          ``(2) Special rule.--Each local educational agency that uses 
        or receives funds under section 1711 or 1712 shall use the same 
        assessment described in paragraph (1) for each year of 
        participation in the program under such section.
  ``(b) State Educational Agency Determination Regarding Continuing 
Participation.--Each State educational agency that receives funding 
under the provisions of law described in section 1711(c) shall--
          ``(1) after the second year that a local educational agency 
        participates in a program under section 1711 or 1712 and on the 
        basis of the results of the assessments described in subsection 
        (a), determine whether the schools served by the local 
        educational agency participating in the program performed in 
        accordance with section 1111; and
          ``(2) only permit those local educational agencies that so 
        participated and make adequate yearly progress, as described in 
        section 1111(b)(2), to continue to so participate.

                ``Subpart 2--Rural Education Assistance

``SEC. 1721. PROGRAM AUTHORIZED.

  ``(a) Reservations.--From amounts appropriated under section 1002(f) 
for this subpart for a fiscal year, the Secretary shall reserve \1/2\ 
of 1 percent to make awards to elementary or secondary schools operated 
or supported by the Bureau of Indian Affairs to carry out the purpose 
of this subpart.
  ``(b) Grants to States.--
          ``(1) In general.--From amounts appropriated under section 
        1002(f) for this subpart that are not reserved under subsection 
        (a), the Secretary shall award grants for a fiscal year to 
        State educational agencies that have applications approved 
        under section 1723 to enable the State educational agencies to 
        award subgrants to eligible local educational agencies for 
        local authorized activities described in subsection (c)(2).
          ``(2) Allocation.--From amounts appropriated for this 
        subpart, the Secretary shall allocate to each State educational 
        agency for a fiscal year an amount that bears the same ratio to 
        the amount of funds appropriated under section 1002(f) for this 
        subpart that are not reserved under subsection (a) as the 
        number of students in average daily attendance served by 
        eligible local educational agencies in the State bears to the 
        number of all such students served by eligible local 
        educational agencies in all States for that fiscal year.
          ``(3) Direct awards to specially qualified agencies.--
                  ``(A) Nonparticipating state.--If a State educational 
                agency elects not to participate in the program under 
                this subpart or does not have an application approved 
                under section 1723 a specially qualified agency in such 
                State desiring a grant under this subpart shall submit 
                an application under such section directly to the 
                Secretary to receive an award under this subpart.
                  ``(B) Direct awards to specially qualified 
                agencies.--The Secretary may award, on a competitive 
                basis, the amount the State educational agency is 
                eligible to receive under paragraph (2) directly to 
                specially qualified agencies in the State.
  ``(c) Local Awards.--
          ``(1) Eligibility.--A local educational agency shall be 
        eligible to receive funds under this subpart if--
                  ``(A) 20 percent or more of the children aged 5 to 
                17, inclusive, 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 code of 6, 7, or 8 as 
                determined by the Secretary of Education.
          ``(2) Uses of funds.--Grant funds awarded to local 
        educational agencies or made available to schools under this 
        subpart shall be used for--
                  ``(A) teacher recruitment and retention, including 
                the use of signing bonuses and other financial 
                incentives;
                  ``(B) teacher professional development, including 
                programs that train teachers to utilize technology to 
                improve teaching and to train special needs teachers;
                  ``(C) educational technology, including software and 
                hardware as described in part B of title V;
                  ``(D) parental involvement activities; or
                  ``(E) programs to improve student academic 
                achievement.

``SEC. 1722. STATE DISTRIBUTION OF FUNDS.

  ``(a) Award Basis.--A State educational agency shall award grants to 
eligible local educational agencies--
          ``(1) on a competitive basis; or
          ``(2) according to a formula based on the number of students 
        in average daily attendance served by the eligible local 
        educational agencies or schools (as appropriate) in the State, 
        as determined by the State.
  ``(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.

``SEC. 1723. APPLICATIONS.

  ``Each State educational agency and 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. Such 
application shall include specific measurable goals and objectives 
relating to increased student academic achievement, decreased student 
dropout rates, or such other factors that the State educational agency 
or specially qualified agency may choose to measure.

``SEC. 1724. REPORTS.

  ``(a) State Reports.--Each State educational agency that receives a 
grant under this subpart shall provide an annual report to the 
Secretary. The report shall describe--
          ``(1) the method the State educational agency used to award 
        grants to eligible local educational agencies and to provide 
        assistance to schools under this 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 1723.
  ``(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 1723.
  ``(c) Report to Congress.--The Secretary shall prepare and submit to 
the Committee on Education and the Workforce for the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions for the Senate an annual report. The report shall describe--
          ``(1) the methods the State educational agency used to award 
        grants to eligible local educational agencies and to provide 
        assistance to schools under this subpart;
          ``(2) how eligible local educational agencies and schools 
        used funds provided under this subpart; and
          ``(3) progress made in meeting specific measurable 
        educational goals and objectives.

``SEC. 1725. PERFORMANCE REVIEW.

  ``Three years after a State educational agency or specially qualified 
agency receives funds under this part, the Secretary shall review the 
progress of such agency toward achieving the goals and objectives 
included in its application, to determine whether the agency has made 
progress toward meeting such goals and objectives. To review the 
performance of each agency, the Secretary shall--
          ``(1) review the use of funds of such agency under section 
        1721(c)(2); and
          ``(2) deny the provision of additional funds in subsequent 
        fiscal years to an agency only if the Secretary determines, 
        after notice and an opportunity for a hearing, that the 
        agency's use of funds has been inadequate to justify 
        continuation of such funding.

``SEC. 1726. DEFINITIONS.

  ``In this subpart--
          ``(1) The term `poverty line' means the poverty line (as 
        defined by the Office of Management and Budget, and revised 
        annually in accordance with section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a 
        family of the size involved.
          ``(2) The term `specially qualified agency' means an eligible 
        local educational agency, located in a State 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 section 1721(b)(3)(A).

                    ``Subpart 3--General Provisions

``SEC. 1731. DEFINITION.

  ``In this part, the term `State' means each of the 50 States, the 
District of Columbia, and the Commonwealth of Puerto Rico.''.

                 PART H--GENERAL PROVISIONS OF TITLE I

SEC. 181. GENERAL PROVISIONS.

  Title I is amended further by adding at the end the following:

                      ``PART H--GENERAL PROVISIONS

``SEC. 1801. FEDERAL REGULATIONS.

  ``(a) In General.--The Secretary is authorized to issue such 
regulations as are necessary to ensure reasonable compliance with this 
title.
  ``(b) Negotiated Rulemaking Process.--
          ``(1) In general.--Prior to 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 
        boards of education involved with the implementation and 
        operation of programs under this title.
          ``(2) Meetings and electronic exchange.--Such advice and 
        recommendation may be obtained through such mechanisms as 
        regional meetings and electronic exchanges of information.
          ``(3) Proposed regulations.--After obtaining such advice and 
        recommendations, and prior to publishing proposed regulations, 
        the Secretary shall--
                  ``(A) establish a negotiated rulemaking process on a 
                minimum of three key issues, including--
                          ``(i) accountability;
                          ``(ii) implementation of assessments; and
                          ``(iii) use of paraprofessionals;
                  ``(B) select individuals to participate in such 
                process from among individuals or groups which provided 
                advice and recommendations, including representation 
                from all geographic regions of the United States; and
                  ``(C) prepare a draft of proposed regulations that 
                shall be provided to the individuals selected by the 
                Secretary under subparagraph (B) not less than 15 days 
                prior to the first meeting under such process.
          ``(4) Process.--Such process--
                  ``(A) shall be conducted in a timely manner to ensure 
                that final regulations are issued by the Secretary not 
                later than 1 year after the date of the 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 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 prior to 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. 1802. AGREEMENTS AND RECORDS.

  ``(a) Agreements.--All published proposed regulations shall conform 
to agreements that result from negotiated rulemaking described in 
section 1801 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. 1803. 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 under subsection (b) for their review and 
                comment;
                  ``(B) minimize such rules, regulations, and policies 
                to which their 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 shall create 
        a State committee of practitioners to advise the State in 
        carrying out its responsibilities under this title.
          ``(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 boards of education;
                  ``(F) representatives of private school children; and
                  ``(G) pupil services personnel.
          ``(3) Duties.--The duties of such committee shall include a 
        review, prior to 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 prior to issuance in final form.

``SEC. 1804. LOCAL ADMINISTRATIVE COST LIMITATION.

  ``(a) Local Administrative Cost Limitation.--Each local educational 
agency may use not more than 4 percent of funds received under part A 
for administrative expenses.
  ``(b) Regulations.--The Secretary, after consulting with State and 
local officials and other experts in school finance, shall develop and 
issue regulations that define the term administrative cost for purposes 
of this title. Such definition shall be consistent with generally 
accepted accounting principles. The Secretary shall publish final 
regulations on this section not later than 1 year after the date of the 
enactment of the No Child Left Behind Act of 2001.

``SEC. 1805. APPLICABILITY.

  ``Nothing in this title shall be construed to affect home schools nor 
shall any home schooled student be required to participate in any 
assessment referenced in this title.

``SEC. 1806. PRIVATE SCHOOLS.

  ``Nothing in this title shall be construed to affect any private 
school that does not receive funds or services under this title, nor 
shall any student who attends a private school that does not receive 
funds or services under this title be required to participate in any 
assessment referenced in this title.

``SEC. 1807. PRIVACY OF ASSESSMENT RESULTS.

  ``Any results from individual assessments referenced in this title 
which become part of the education records of the student shall have 
the protections as provided in section 444 of the General Education 
Provisions Act.''.

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

SEC. 201. TEACHER QUALITY 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 QUALITY TEACHERS

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

``SEC. 2001. PURPOSE.

  ``The purpose of this part is to provide grants to States and local 
educational agencies in order to assist their efforts to increase 
student academic achievement through such strategies as improving 
teacher and principal quality and increasing the number of highly 
qualified teachers in the classroom.

``Subpart 1--Grants to States to Prepare, Train, and Recruit Qualified 
                                Teachers

``SEC. 2011. FORMULA GRANTS TO STATES.

  ``(a) In General.--In the case of each State that in accordance with 
section 2013 submits to the Secretary an application for a fiscal year, 
the Secretary shall make a grant for the year to the State for the uses 
specified in section 2012. The grant shall consist of the allotment 
determined for the State under subsection (b).
  ``(b) Determination of Amount of Allotments.--
          ``(1) Reservation of funds.--From the amount made available 
        to carry out this subpart for any fiscal year, the Secretary 
        shall reserve--
                  ``(A) \1/2\ of 1 percent for allotments for the 
                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 purpose of this part; and
                  ``(B) \1/2\ of 1 percent for the Secretary of the 
                Interior for programs under this subpart for 
                professional development activities for teachers, other 
                staff, and administrators 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 total amount made available to 
                        carry out this subpart 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 
                                the 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) Nonparticipating states.--In the case 
                        of a State that did not receive any funds for 
                        fiscal year 2001 under one or both of the 
                        provisions referred to in subclauses (I) and 
                        (II) of clause (i), the amount allotted to the 
                        State under such clause shall be the total 
                        amount that the State would have received for 
                        fiscal year 2001 if it had elected to 
                        participate in all of the programs for which it 
                        was eligible under each of the provisions 
                        referred to in such subclauses.
                          ``(iii) Ratable reduction.--If the total 
                        amount made available to carry out this subpart 
                        for any fiscal year and not reserved under 
                        paragraph (1) is 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 such amounts for 
                        such fiscal year.
                  ``(B) Allotment of additional funds.--
                          ``(i) In general.--Subject to clause (ii), 
                        for any fiscal year for which the total amount 
                        made available to carry out this subpart and 
                        not reserved under paragraph (1) exceeds the 
                        total amount required to make allotments under 
                        subparagraph (A), the Secretary shall allot 
                        such excess amount among the 50 States, the 
                        District of Columbia, and the Commonwealth of 
                        Puerto Rico as follows:
                                  ``(I) 50 percent of such excess 
                                amount shall be allotted among such 
                                States on the basis of their relative 
                                populations of individuals aged 5 
                                through 17, as determined by the 
                                Secretary on the basis of the most 
                                recent satisfactory data.
                                  ``(II) 50 percent of such excess 
                                amount shall be allotted among such 
                                States in proportion to the number of 
                                children, aged 5 to 17, who reside 
                                within the State from families with 
                                incomes below the poverty line (as 
                                defined by the Office of Management and 
                                Budget and revised annually in 
                                accordance with section 673(2) of the 
                                Community Services Block Grant Act (42 
                                U.S.C. 9902(2)) applicable to a family 
                                of the size involved 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.
                          ``(ii) Exception.--No State receiving an 
                        allotment under clause (i) may receive less 
                        than \1/2\ of 1 percent of the total excess 
                        amount allotted under such clause.
          ``(3) Reallotment.--If any State does not apply for an 
        allotment under this subsection for any fiscal year, the 
        Secretary shall reallot such amount to the remaining States in 
        accordance with this subsection.

``SEC. 2012. WITHIN-STATE ALLOCATIONS.

  ``(a) Use of Funds.--Each State receiving a grant under this subpart 
shall use the funds provided under the grant in accordance with this 
section to carry out activities for the improvement of teaching and 
learning.
  ``(b) Reservation of Funds.--
          ``(1) In general.--A State that receives a grant under this 
        subpart may reserve not more than 5 percent of the amount of 
        the funds provided under the grant for--
                  ``(A) one or more of the authorized State activities 
                described in subsection (e); and
                  ``(B) planning and administration related to carrying 
                out such activities and making subgrants to local 
                educational agencies under subparts 2 and 3.
          ``(2) Limitation on administrative costs.--The amount 
        reserved by a State under paragraph (1)(B) may not exceed 1 
        percent of the amount of the funds provided under the grant.
  ``(c) Subgrants to Local Educational Agencies.--
          ``(1) In general.--The Secretary may make a grant to a State 
        under this subpart only if the State agrees to distribute the 
        funds described in this subsection as subgrants to local 
        educational agencies under subpart 3.
          ``(2) Hold harmless.--
                  ``(A) In general.--From the funds that a State 
                receives under this subpart for any fiscal year that 
                are not reserved under subsection (b), the State shall 
                allot to each local educational agency 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 the 
                        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 allotted to the agency 
                under such subparagraph shall be the total amount that 
                the agency would have received for fiscal year 2001 if 
                it had elected to participate in all of the programs 
                for which it was eligible under each of the provisions 
                referred to in such clauses.
                  ``(C) Ratable reduction.--If the funds described in 
                subparagraph (A) are insufficient to pay the full 
                amounts that all local educational agencies are 
                eligible to receive under such subparagraph for any 
                fiscal year, the State shall ratably reduce such 
                amounts for such fiscal year.
          ``(3) Allotment of additional funds.--
                  ``(A) In general.--For any fiscal year for which the 
                funds that a State receives under this subpart that are 
                not reserved under subsection (b) exceed the total 
                amount required to make allotments under paragraph (2), 
                the State shall distribute the amount described in 
                subparagraph (B) through a formula under which--
                          ``(i) 20 percent is allocated to local 
                        educational agencies in accordance with the 
                        relative enrollment in public and private 
                        nonprofit elementary and secondary schools 
                        within the boundaries of such agencies; and
                          ``(ii) 80 percent is allocated to local 
                        educational agencies in proportion to the 
                        number of children, aged 5 to 17, who reside 
                        within the geographic area served by such 
                        agency from families with incomes below the 
                        poverty line (as defined by the Office of 
                        Management and Budget and revised annually in 
                        accordance with section 673(2) of the Community 
                        Services Block Grant Act (42 U.S.C. 9902(2))) 
                        applicable to a family of the size involved for 
                        the most recent fiscal year for which 
                        satisfactory data are available, compared to 
                        the number of such individuals who reside in 
                        the geographic areas served by all the local 
                        educational agencies in the State for that 
                        fiscal year.
                  ``(B) Calculation of amount.--
                          ``(i) In general.--The amount described in 
                        this subparagraph for a State for any fiscal 
                        year is the base amount for such State and 
                        year, plus any additional amount for such State 
                        and year.
                          ``(ii) Base amount.--For purposes of this 
                        subparagraph, the term `base amount' means 50 
                        percent of the funds that remain to a State 
                        after a State makes the reservations described 
                        in subsection (b) and the allotments described 
                        in paragraph (2).
                          ``(iii) Additional amount.--For purposes of 
                        this subparagraph, the term `additional amount' 
                        means the amount (if any) by which the base 
                        amount for a State exceeds the maximum amount 
                        described in subsection (d)(2)(B).
  ``(d) Math and Science Partnerships.--
          ``(1) In general.--The Secretary may make a grant to a State 
        under this subpart only if the State agrees to distribute the 
        amount described in paragraph (2) through a competitive 
        subgrant process in accordance with subpart 2.
          ``(2) Amount described.--
                  ``(A) In general.--The amount described in this 
                paragraph for a State for any fiscal year is 50 percent 
                of the funds that the State receives under this subpart 
                for the year that remain after the State makes the 
                reservations described in subsection (b) and the 
                allotments described in subsection (c)(2).
                  ``(B) Limitation.--In no case may the amount 
                described in this paragraph exceed a maximum amount 
                calculated by multiplying the total amount of the funds 
                that a State receives under this subpart for a fiscal 
                year that the State does not reserve under subsection 
                (b) by a percentage, selected by the State, that shall 
                be not less than 15 nor more than 20 percent.
  ``(e) Authorized State Activities.--The authorized State activities 
referred to in subsection (b)(1)(A) are the following:
          ``(1) Reforming teacher certification, recertification, or 
        licensure requirements to ensure that--
                  ``(A) teachers have the necessary teaching skills and 
                academic content knowledge in the subject areas in 
                which they are assigned to teach;
                  ``(B) teacher certification, recertification, or 
                licensure requirements are aligned with the State's 
                challenging State academic content standards; and
                  ``(C) teachers have the knowledge and skills 
                necessary to help students meet challenging State 
                student achievement standards.
          ``(2) Carrying out programs that--
                  ``(A) include support during the initial teaching or 
                leadership experience, such as mentoring programs 
                that--
                          ``(i) provide--
                                  ``(I) mentoring to beginning teachers 
                                from veteran teachers with expertise in 
                                the same subject matter that the 
                                beginning teachers will be teaching; or
                                  ``(II) similar mentoring to 
                                principals or superintendents;
                          ``(ii) provide mentors time for activities 
                        such as coaching, observing, and assisting the 
                        teachers or school leaders who are mentored; 
                        and
                          ``(iii) use standards or assessments for 
                        guiding beginning teachers that are consistent 
                        with the State's student achievement standards 
                        and with the requirements for professional 
                        development activities under section 2033; and
                  ``(B) establish, expand, or improve alternative 
                routes to State certification of teachers, especially 
                in the areas of mathematics and science, for highly 
                qualified individuals with a baccalaureate degree, 
                including mid-career professionals from other 
                occupations, paraprofessionals, former military 
                personnel, and recent college or university graduates 
                with records of academic distinction who demonstrate 
                the potential to become highly effective teachers.
          ``(3) Developing and implementing effective mechanisms to 
        assist local educational agencies and schools in effectively 
        recruiting and retaining highly qualified and effective 
        teachers and principals.
          ``(4) Reforming tenure systems and implementing teacher 
        testing and other procedures to expeditiously remove 
        ineffective teachers from the classroom.
          ``(5) Developing enhanced performance systems to measure the 
        effectiveness of specific professional development programs and 
        strategies.
          ``(6) Providing technical assistance to local educational 
        agencies consistent with this part.
          ``(7) Funding projects to promote reciprocity of teacher 
        certification or licensure 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.
          ``(8) Developing or assisting local educational agencies in 
        the development and utilization of proven, innovative 
        strategies to deliver intensive professional development 
        programs that are both cost-effective and easily accessible, 
        such as through the use of technology and distance learning.
          ``(9) Providing assistance to local educational agencies for 
        the development and implementation of innovative professional 
        development programs that train teachers to use technology to 
        improve teaching and learning and are consistent with the 
        requirements of section 2033.
          ``(10) Developing or assisting local educational agencies in 
        developing merit-based performance systems, rigorous 
        assessments for teachers, and strategies which provide 
        differential and bonus pay for teachers in high-need subject 
        areas such as reading, math, and science and in high-poverty 
        schools and districts.
          ``(11) Providing assistance to local educational agencies for 
        the development and implementation of professional development 
        programs for principals that enable them to be effective school 
        leaders and prepare all students to achieve challenging State 
        content and student achievement standards, including the 
        development and support of school leadership academies to help 
        exceptionally talented aspiring or current principals and 
        superintendents become outstanding managers and educational 
        leaders.
          ``(12) Developing, or assisting local educational agencies in 
        developing, teacher advancement initiatives that promote 
        professional growth and emphasize multiple career paths, such 
        as career teacher, mentor teacher, and master teacher career 
        paths, with pay differentiation.
  ``(f) Coordination.--States receiving grants under section 202 of the 
Higher Education Act of 1965 shall coordinate the use of such funds 
with activities carried out under this section.

``SEC. 2013. APPLICATIONS BY STATES.

  ``(a) In General.--To be eligible to receive a grant under this 
subpart, a State 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 under this section shall include 
the following:
          ``(1) A description of how the State will ensure that a local 
        educational agency receiving a subgrant under subpart 3 will 
        comply with the requirements of such subpart.
          ``(2) A description of how the State will use funds under 
        this part to meet the requirements of section 1119(a)(2).
          ``(3) A description of how the State will coordinate 
        professional development activities authorized under this part 
        with professional development activities provided under other 
        Federal, State, and local programs, including those authorized 
        under title I, part A of title III, parts A and B of title V, 
        and (where applicable) the Individuals with Disabilities 
        Education Act and the Carl D. Perkins Vocational and Technical 
        Education Act. The application shall also describe the 
        comprehensive strategy that the State will take as part of such 
        coordination effort, to ensure that teachers are trained in the 
        utilization of technology so that technology and its 
        applications are effectively used in the classroom to improve 
        teaching and learning in all curriculum and content areas, as 
        appropriate.
          ``(4) A description of how the State will encourage the 
        development of proven, innovative strategies to deliver 
        intensive professional development programs that are both cost-
        effective and easily accessible, such as through the use of 
        technology and distance learning.
          ``(5) A description of how the State will ensure that local 
        educational agencies will comply with the requirements under 
        section 2033, especially with respect to ensuring the 
        participation of teachers, principals, and parents.
  ``(c) Application Approval.--A State application submitted to the 
Secretary under this section shall be deemed approved by the Secretary 
unless the Secretary makes a written determination, within 90 days 
after receiving the application, that the application is in violation 
of the provisions of this subpart. The Secretary shall not finally 
disapprove a State application except after giving the State notice and 
opportunity for a hearing.

               ``Subpart 2--Math and Science Partnerships

``SEC. 2021. PURPOSE.

  ``The purpose of this subpart is to improve the achievement of 
students in the areas of mathematics and science by encouraging States, 
institutions of higher education, and local educational agencies to 
participate in programs that--
          ``(1) focus on education and training of mathematics and 
        science teachers that improves teachers' knowledge and skills 
        and encourages intellectual growth;
          ``(2) improve 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 such 
        teachers; and
          ``(3) bring mathematics and science teachers in elementary 
        and secondary schools together with scientists, mathematicians, 
        and engineers to increase the subject matter knowledge of 
        teachers and improve their 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 schools.

``SEC. 2022. APPLICATION REQUIREMENTS.

  ``(a) In General.--An eligible partnership seeking to receive a 
subgrant from a State under this subpart shall submit an application to 
the State at such time, in such manner, and accompanied by such 
information as the State may require.
  ``(b) Partnership Application Contents.--Each such application shall 
include--
          ``(1) an assessment of the teacher quality and professional 
        development of all the schools and agencies participating in 
        the eligible partnership with respect to the teaching and 
        learning of mathematics and science;
          ``(2) a description of how the activities to be carried out 
        by the eligible partnership will be aligned with State academic 
        content standards in mathematics and science and with other 
        educational reform activities that promote student achievement 
        in mathematics and science;
          ``(3) a description of how the activities to be carried out 
        by the eligible partnership will be based on a review of 
        relevant research, and an explanation of why the activities are 
        expected to improve student achievement and to strengthen the 
        quality of mathematics and science instructions; and
          ``(4) a description of--
                  ``(A) how the eligible partnership will carry out the 
                activities described in section 2023(c); and
                  ``(B) the eligible partnership's evaluation and 
                accountability plan described in section 2024.

``SEC. 2023. MATH AND SCIENCE PARTNERSHIP SUBGRANTS.

  ``(a) In General.--From the amount described in section 2012(d), the 
State educational agency, working in conjunction with the State agency 
for higher education (if such agencies are separate), shall award 
subgrants on a competitive basis to eligible partnerships to enable 
such partnerships to carry out activities described in subsection (c).
  ``(b) Duration.--The State shall award subgrants under this subpart 
for a period of not less than 2 and not more than 5 years.
  ``(c) Authorized Activities.--A recipient of funds provided under 
this subpart may use the funds for the following activities related to 
elementary or secondary schools:
          ``(1) Establishing and operating mathematics and science 
        summer professional development workshops or institutes for 
        elementary and secondary school teachers that--
                  ``(A) shall--
                          ``(i) directly relate to the curriculum and 
                        content areas in which the teacher provides 
                        instruction, and focus only secondarily on 
                        pedagogy;
                          ``(ii) enhance the ability of a teacher to 
                        understand and use the State's academic content 
                        standards for mathematics and science and to 
                        select appropriate curricula;
                          ``(iii) train teachers to use curricula that 
                        are--
                                  ``(I) based on scientific research;
                                  ``(II) aligned with State academic 
                                content standards; and
                                  ``(III) object-centered, experiment-
                                oriented, and concept- and content-
                                based; and
                          ``(iv) provide supplemental assistance and 
                        follow-up training during the school year for 
                        summer institute graduates; and
                  ``(B) may include--
                          ``(i) programs that provide prospective 
                        teachers and novice teachers 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 follow-up 
                        activities, such as curriculum alignment, 
                        distance learning, and activities that train 
                        teachers to utilize technology in the 
                        classroom.
          ``(2) Recruiting to the teaching profession--
                  ``(A) students studying mathematics, engineering, and 
                science; or
                  ``(B) mathematicians, engineers, and scientists 
                currently working in the field.
          ``(3) Establishing and operating programs to bring teachers 
        into contact with working scientists, mathematicians, and 
        engineers, to expand teacher content knowledge of and research 
        in science and mathematics.
  ``(d) Priority.--In awarding subgrants under this subpart, States 
shall give priority to applications seeking funding for the activity 
described in subsection (c)(1).
  ``(e) Coordination.--Partnerships receiving grants under section 203 
of the Higher Education Act of 1965 (20 U.S.C. 1023) shall coordinate 
the use of such funds with any related activities carried out by such 
partnership with funds made available under this subpart.

``SEC. 2024. EVALUATION AND ACCOUNTABILITY PLAN.

  ``(a) In General.--Each eligible partnership receiving a subgrant 
under this subpart shall develop an evaluation and accountability plan 
for activities assisted under this subpart that includes rigorous 
performance objectives that measure the impact of activities funded 
under this subpart.
  ``(b) Contents.--The plan--
          ``(1) shall include measurable goals to increase the number 
        of mathematics and science teachers who participate in content-
        based professional development activities; and
          ``(2) may include objectives and measures for--
                  ``(A) improved student achievement on State 
                mathematics and science assessments;
                  ``(B) increased participation by students in advanced 
                courses in mathematics and science;
                  ``(C) increased percentages of elementary school 
                teachers with academic majors or minors, or group 
                majors or minors, in mathematics, engineering, or the 
                sciences; and
                  ``(D) increased percentages of secondary school 
                classes in mathematics and science taught by teachers 
                with academic majors in mathematics and science, 
                respectively.

``SEC. 2025. REPORTS; REVOCATION OF SUBGRANTS.

  ``(a) Reports.--Each eligible partnership receiving a subgrant under 
this subpart annually shall report to the State regarding the eligible 
partnership's progress in meeting the performance objectives described 
in section 2024.
  ``(b) Revocation.--If the State determines that an eligible 
partnership that receives a subgrant under this subpart for 5 years is 
not making substantial progress in meeting the performance objectives 
described in section 2024 by the end of the third year of the subgrant, 
the subgrant payments shall not be made for the fourth and fifth years.

``SEC. 2026. DEFINITIONS.

  ``In this subpart:
          ``(1) Eligible partnership.--The term `eligible partnership' 
        means a partnership that--
                  ``(A) shall include--
                          ``(i) a State educational agency;
                          ``(ii) a mathematics or science department of 
                        a private independent institution of higher 
                        education or a State-supported public 
                        institution of higher education; and
                          ``(iii) a high need local educational agency; 
                        and
                  ``(B) may include--
                          ``(i) another institution of higher education 
                        or the teacher training department of such an 
                        institution;
                          ``(ii) additional local educational agencies, 
                        public charter schools, public or private 
                        elementary or secondary schools, or a 
                        consortium of such schools;
                          ``(iii) a business; or
                          ``(iv) a nonprofit organization of 
                        demonstrated effectiveness, including a museum 
                        or research institution.
          ``(2) Summer professional development workshop or 
        institute.--The term `summer professional development workshop 
        or institute' means a workshop or institute that--
                  ``(A) is conducted during a period of not less than 2 
                weeks;
                  ``(B) includes as a component a program that provides 
                direct interaction between students and faculty; and
                  ``(C) provides for follow-up training during the 
                academic year that is conducted in the classroom for a 
                period of not less than 3 consecutive or nonconsecutive 
                days, except that--
                          ``(i) if the workshop or institute is 
                        conducted during a two-week period, the follow-
                        up training shall be conducted for a period of 
                        at least 4 days; and
                          ``(ii) if the follow-up training is for 
                        teachers in rural school districts, it may be 
                        conducted through distance learning.

          ``Subpart 3--Subgrants to Local Educational Agencies

``SEC. 2031. LOCAL USE OF FUNDS.

  ``(a) In General.--Subject to subsection (b), each local educational 
agency that receives a subgrant under this subpart may use the subgrant 
to carry out the following activities:
          ``(1) Initiatives to assist in recruiting and hiring fully 
        qualified teachers who will be assigned teaching positions 
        within their field, including--
                  ``(A) providing signing bonuses or other financial 
                incentives, such as differential pay, for teachers to 
                teach in academic subject areas in which there exists a 
                shortage of such fully qualified teachers within a 
                school or the local educational agency;
                  ``(B) establishing programs that--
                          ``(i) recruit professionals from other fields 
                        and provide such professionals with alternative 
                        routes to teacher certification; and
                          ``(ii) provide increased opportunities for 
                        minorities, individuals with disabilities, and 
                        other individuals underrepresented in the 
                        teaching profession; and
                  ``(C) 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, coupled 
                with a system of intensive screening designed to hire 
                the most qualified applicant.
          ``(2) Initiatives to promote retention of highly qualified 
        teachers and principals, particularly within elementary and 
        secondary schools with a high percentage of low-achieving 
        students, including programs that provide--
                  ``(A) mentoring to newly hired teachers, such as from 
                master teachers, or principals or superintendents;
                  ``(B) incentives, including financial incentives, to 
                retain teachers who have a record of success in helping 
                low-achieving students improve their academic success; 
                or
                  ``(C) incentives, including financial incentives, to 
                principals who have a record of improving the 
                performance of all students, but particularly students 
                from economically disadvantaged families and students 
                from racial and ethnic minority groups.
          ``(3) Programs and activities that are designed to improve 
        the quality of the teacher force, such as--
                  ``(A) innovative professional development programs 
                (which may be through partnerships including 
                institutions of higher education), including programs 
                that train teachers and principals to utilize 
                technology to improve teaching and learning, are 
                consistent with the requirements of section 2033, and 
                are coordinated with part B of title V;
                  ``(B) development and utilization of proven, cost-
                effective strategies for the implementation of 
                professional development activities, such as through 
                the utilization of technology and distance learning;
                  ``(C) tenure reform;
                  ``(D) merit pay;
                  ``(E) testing of elementary and secondary school 
                teachers in the subject areas taught by such teachers;
                  ``(F) professional development programs that provide 
                instruction in how to teach children with different 
                learning styles, particularly children with 
                disabilities and children with special learning needs 
                (including those who are gifted and talented); and
                  ``(G) professional development programs that provide 
                instruction in methods of improving student behavior in 
                the classroom and how to identify early and appropriate 
                interventions to help children described in 
                subparagraph (F) learn.
          ``(4) Teacher opportunity payments, consistent with section 
        2034.
          ``(5) Professional activities designed to improve the quality 
        of principals and superintendents, including the development 
        and support of academies to help exceptionally talented 
        aspiring or current principals and superintendents become 
        outstanding managers and educational leaders.
          ``(6) Hiring fully qualified teachers, including teachers who 
        become fully qualified through State and local alternative 
        routes, and special education teachers, in order to reduce 
        class size, particularly in the early grades.
          ``(7) Teacher advancement initiatives that promote 
        professional growth and emphasize multiple career paths, such 
        as career teacher, mentor teacher, and master teacher career 
        paths, with pay differentiation.
  ``(b) Special Rule.--
          ``(1) In general.--For any fiscal year for which the amount 
        described in section 2012(d)(2)(A) for a State is less than 15 
        percent of the total amount of the funds that the State 
        receives under this subpart for the year that the State does 
        not reserve under section 2012(b), each local educational 
        agency that receives a subgrant under this subpart from the 
        State shall use the funds to comply with paragraph (2).
          ``(2) Requirement.--A local educational agency required to 
        comply with this paragraph shall use not less than the amount 
        expended by the agency under section 2206(b) of this Act (as in 
        effect on the day before the date of the enactment of the No 
        Child Left Behind Act of 2001), for the fiscal year preceding 
        the year in which such enactment occurs, to carry out 
        professional development activities in mathematics and science.

``SEC. 2032. LOCAL APPLICATIONS.

  ``(a) In General.--A local educational agency seeking to receive a 
subgrant from a State under this subpart shall submit an application to 
the State--
          ``(1) at such time as the State shall require; and
          ``(2) which is coordinated with other programs under this 
        Act, or other Acts, as appropriate.
  ``(b) Local Application Contents.--The local application described in 
subsection (a), shall include, at a minimum, the following:
          ``(1) 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 fully qualified 
                teachers;
                  ``(B) have the largest average class size; or
                  ``(C) are identified for school improvement under 
                section 1116(b).
          ``(2) 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, including 
        those authorized under title I, part A of title III, parts A 
        and B of title V, and (where applicable) the Individuals with 
        Disabilities Education Act and the Carl D. Perkins Vocational 
        and Technical Education Act.
          ``(3) A description of how the local educational agency will 
        integrate funds under this subpart with funds received under 
        part B of title V that are used for professional development to 
        train teachers to utilize technology to improve teaching and 
        learning.
          ``(4) A description of how the local educational agency has 
        collaborated with teachers, principals, parents, and 
        administrators in the preparation of the application.

``SEC. 2033. PROFESSIONAL DEVELOPMENT FOR TEACHERS.

  ``(a) Requirements for Professional Development Activities.--
Professional development activities under this subpart shall--
          ``(1) meet the requirements of section 1119(a)(2);
          ``(2) support professional development activities that give 
        teachers, principals, and administrators the knowledge and 
        skills to provide students with the opportunity to meet 
        challenging State academic content standards and student 
        achievement standards;
          ``(3) support the recruiting, hiring, and training of fully 
        qualified teachers, including teachers fully qualified through 
        State and local alternative routes;
          ``(4) advance teacher understanding of effective 
        instructional strategies based on scientifically based research 
        for improving student achievement, at a minimum, in reading or 
        language arts and mathematics;
          ``(5) be directly related to the curriculum and content areas 
        in which the teacher provides instruction, except that this 
        paragraph shall not apply to subparagraphs (F) and (G) of 
        section 2031(3);
          ``(6) be designed to enhance the ability of a teacher to 
        understand and use the State's standards for the subject area 
        in which the teacher provides instruction;
          ``(7) be tied to scientifically based research demonstrating 
        the effectiveness of such professional development activities 
        or programs in increasing student achievement or substantially 
        increasing the knowledge and teaching skills of teachers;
          ``(8) be of sufficient intensity and duration (not to include 
        1-day or short-term workshops and conferences) to have a 
        positive and lasting impact on the teacher's performance in the 
        classroom;
          ``(9) be developed with extensive participation of teachers, 
        principals, parents, and administrators of schools to be served 
        under this subpart;
          ``(10) be 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 such 
        children, including the appropriate use of curriculum and 
        assessments;
          ``(11) to the extent appropriate, provide training for 
        teachers and principals in the use of technology so that 
        technology and its applications are effectively used in the 
        classroom to improve teaching and learning in the curriculum 
        and academic content areas in which the teachers provide 
        instruction;
          ``(12) as a whole, be regularly evaluated for their impact on 
        increased teacher effectiveness and improved student 
        achievement, with the findings of such evaluations used to 
        improve the quality of professional development; and
          ``(13) provide instruction in methods of teaching children 
        with special needs.
  ``(b) Professional Development Activities.--Professional development 
activities under this subpart may include--
          ``(1) instruction in the use of data and assessments to 
        inform and instruct classroom practice;
          ``(2) instruction in ways that teachers, principals, pupil 
        services personnel, and school administrators may work more 
        effectively with parents;
          ``(3) the forming of partnerships with institutions of higher 
        education to establish school-based teacher training programs 
        that provide prospective teachers and novice teachers with an 
        opportunity to work under the guidance of experienced teachers 
        and college faculty;
          ``(4) the creation of programs for paraprofessionals 
        (assisting teachers employed by a local educational agency 
        receiving assistance under this part) to obtain the education 
        necessary for such paraprofessionals to become licensed and 
        certified teachers; and
          ``(5) activities that provide follow-up training to teachers 
        who have participated in professional development activities 
        which are designed to ensure that the knowledge and skills 
        learned by the teacher are implemented in the classroom.
  ``(c) Accountability.--
          ``(1) In general.--If, after any fiscal year, a State 
        determines that the programs or activities funded by a local 
        educational agency fail to meet the requirements of subsection 
        (a), the State shall notify the agency that--
                  ``(A) it may be subject to paragraph (2); and
                  ``(B) technical assistance is available from the 
                State to help the agency meet those requirements.
          ``(2) Requirement to provide teacher opportunity payments.--A 
        local educational agency that has been notified by a State for 
        2 consecutive years under paragraph (1) shall expend under 
        section 2034 for the succeeding fiscal year a proportion of the 
        amount the agency receives under this subpart that is equal to 
        the proportion of the amount the agency received under this 
        part for the preceding fiscal year that the agency used for 
        professional development.

``SEC. 2034. TEACHER OPPORTUNITY PAYMENTS.

  ``(a) In General.--A local educational agency receiving funds under 
this subpart may (or, in the case of a local educational agency 
described in section 2033(c)(2), shall) provide funds directly to a 
teacher or a group of teachers seeking opportunities to participate in 
a professional development activity of their choice that meets the 
requirements of section 2033(a) and is selected in consultation with 
the principal in order to coordinate such professional development with 
other reform efforts at the school.
  ``(b) Notice to Teachers.--Local educational agencies distributing 
funds under this section shall establish and implement a timely process 
through which proper notice of availability of funds will be given to 
all teachers within schools identified by the agency and shall develop 
a process whereby teachers will have regular consultation with and be 
specifically recommended by principals to participate in such program 
by virtue of--
          ``(1) a teacher not being fully qualified to teach in the 
        subject or subjects in which they teach; or
          ``(2) a teacher's need for additional assistance to ensure 
        that the teacher's students make progress toward meeting 
        challenging State academic content standards and student 
        achievement standards.
  ``(c) Selection of Teachers.--If adequate funding is not available to 
provide payments under this section to all teachers seeking such 
assistance or identified as needing such assistance pursuant to 
subsection (b), a local educational agency shall establish procedures 
for selecting teachers that give priority to teachers described in 
paragraph (1) or (2) of subsection (b).

            ``Subpart 4--Mid-Career Transitions to Teaching

                ``CHAPTER 1--TROOPS-TO-TEACHERS PROGRAM

``SEC. 2041. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM.

  ``(a) Program Authorized.--The Secretary may carry out a program (to 
be known as the `Troops-to-Teachers Program')--
          ``(1) to assist eligible members and former members of the 
        Armed Forces described in section 2042 to obtain certification 
        or licensure as fully qualified elementary school teachers, 
        secondary school teachers, or vocational or technical teachers; 
        and
          ``(2) to facilitate the employment of such members in 
        elementary schools or secondary schools or as vocational or 
        technical teachers.
  ``(b) 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 
2045. 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.
  ``(c) Information Regarding Program.--The Secretary shall provide to 
the Secretary of Defense, 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 2042, information 
regarding the Troops-to-Teachers Program and applications to 
participate in the program.
  ``(d) Placement Assistance and Referral Services.--As part of the 
Troops-to-Teachers Program, the Secretary may, with the agreement of 
the Secretary of Defense, provide placement assistance and referral 
services regarding employment opportunities with local educational 
agencies to members of the Armed Forces who are discharged or released 
from active duty under other than adverse conditions. Unless the member 
is also selected to participate in the Program under section 2042, a 
member receiving placement assistance and referral services under the 
authority of this subsection is not eligible for financial assistance 
under section 2043.

``SEC. 2042. RECRUITMENT AND SELECTION OF PROGRAM PARTICIPANTS.

  ``(a) Eligible Members.--The following members and former members of 
the Armed Forces are eligible for selection to participate in the 
Troops-to-Teachers 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; or
                  ``(B) on or after the date of the enactment of the No 
                Child Left Behind Act of 2001, has an approved date of 
                voluntary retirement and, as of the date the member 
                submits an application to participate in the Program, 
                has one year or less of active duty remaining before 
                retirement.
          ``(2) Any member who, on or after the date of the enactment 
        of the No Child Left Behind Act of 2001--
                  ``(A) is separated or released from active duty after 
                six or more years of continuous active duty immediately 
                before the separation or release; and
                  ``(B) executes a reserve commitment agreement for a 
                period of three years under subsection (e)(2).
          ``(3) Any member who, on or after the date of the 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--
                  ``(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 six 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 its repeal, and who satisfied the 
                eligibility criteria specified in subsection (c) of 
                such section 1151.
  ``(b) Submission of Applications.--
          ``(1) Form and submission.--Selection of eligible members and 
        former members of the Armed Forces to participate in the 
        Troops-to-Teachers 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 or former member of the 
                Armed Forces described in paragraph (1), (2), or (3) of 
                subsection (a), the application is submitted not later 
                than four 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 or former 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 and former members of the Armed Forces to 
        participate in the Troops-to-Teachers Program.
          ``(2) Educational background.--If a member or former member 
        of the Armed Forces described in paragraph (1), (2), or (3) of 
        subsection (a) is applying for assistance for placement as an 
        elementary 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. If 
        such a member is applying for assistance for placement as a 
        vocational or technical teacher, the Secretary shall require 
        the member--
                  ``(A) to have received the equivalent of one year of 
                college from an accredited institution of higher 
                education and have six or more years of military 
                experience in a vocational or technical field; or
                  ``(B) to otherwise meet the certification or 
                licensure 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 or former member of the 
        Armed Forces is eligible to participate in the Troops-to-
        Teachers Program only if the member's last period of service in 
        the Armed Forces was characterized as honorable. If the member 
        is selected to participate in the Program before the retirement 
        of the member or the separation or release of the member from 
        active duty, the member may continue to participate in the 
        Program only if, upon the retirement or separation or release 
        from active duty, the member's last period of service is 
        characterized as honorable.
  ``(d) Selection Priorities.--In selecting eligible members and former 
members of the Armed Forces to receive assistance for placement as 
elementary or secondary school teachers or vocational or technical 
teachers, 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 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 or former member of the Armed Forces 
        to participate in the Troops-to-Teachers Program under this 
        section and receive financial assistance under section 2043 
        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 
        2043 with respect to the member.
          ``(2) Reserve commitment agreement.--The Secretary may not 
        select an eligible member or former member of the Armed Forces 
        described in subsection (a)(2)(A) to participate in the Troops-
        to-Teachers Program under this section and receive financial 
        assistance under section 2043 unless--
                  ``(A) the Secretary notifies the Secretary concerned 
                and the member that the Secretary has reserved a full 
                stipend or bonus under section 2043 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 three years (in addition to any 
                other reserve commitment the member may have).

``SEC. 2043. PARTICIPATION AGREEMENT AND FINANCIAL ASSISTANCE.

  ``(a) Participation Agreement.--An eligible member or former member 
of the Armed Forces selected to participate in the Troops-to-Teachers 
Program under section 2042 and receive financial assistance under this 
section shall be required to enter into an agreement with the Secretary 
in which the member agrees--
          ``(1) to obtain, within such time as the Secretary may 
        require, certification or licensure as a fully qualified 
        elementary school teacher, secondary school teacher, or 
        vocational or technical teacher; and
          ``(2) to accept an offer of full-time employment as a fully 
        qualified elementary school teacher, secondary school teacher, 
        or vocational or technical teacher for not less than three 
        school years with a local educational agency or public charter 
        school, to begin the school year after obtaining that 
        certification or licensure.
  ``(b) Violation of Participation Agreement; Exceptions.--A 
participant in the Troops-to-Teachers 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 three 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 seeking and unable to find full-time employment as a 
        fully qualified teacher in an elementary 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 Troops-to-Teachers 
        Program selected under section 2042 a stipend in an amount up 
        to $5,000.
          ``(2) Limitation.--The total number of stipends that may be 
        paid under paragraph (1) in any fiscal year may not exceed 
        3,000.
  ``(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 Troops-to-
        Teachers Program selected under section 2042 who agrees in the 
        participation agreement under subsection (a) to accept full-
        time employment as a fully qualified elementary school teacher, 
        secondary school teacher, or vocational or technical teacher 
        for not less than three 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 
        1,000.
          ``(3) High need school defined.--For purposes of 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) At least 50 percent of the students enrolled in 
                the school were children counted under subsection (c) 
                of section 1124 for purposes of making grants under 
                such section to local educational agencies, when such 
                counting was most recently performed.
                  ``(B) The school has a large percentage of students 
                who qualify for assistance under part B of the 
                Individuals with Disabilities Education Act (20 U.S.C. 
                1411 et seq.).
                  ``(C) The school meets any other criteria established 
                by the Secretary in consultation with the National 
                Assessment Governing Board.
  ``(e) Treatment of Stipend and Bonus.--A stipend or bonus paid under 
this section to a participant in the Troops-to-Teachers 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 (20 U.S.C. 1070 et seq.).
  ``(f) Reimbursement Under Certain Circumstances.--
          ``(1) Reimbursement required.--A participant in the Troops-
        to-Teachers 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) The participant fails to obtain teacher 
                certification or licensure or employment as a fully 
                qualified elementary school teacher, secondary school 
                teacher, or vocational or technical teacher as required 
                by the participation agreement under subsection (a).
                  ``(B) 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 three years of required 
                service in violation of the participation agreement.
                  ``(C) The participant executed a written agreement 
                with the Secretary concerned under section 2042(e)(2) 
                to serve as a member of a reserve component of the 
                Armed Forces for a period of three 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 three 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 ninety 
        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.
          ``(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 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 Troops-to-Teachers Program 
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. 2044. PARTICIPATION BY STATES.

  ``(a) Discharge of State Activities Through Consortia of States.--The 
Secretary may permit States participating in the Troops-to-Teachers 
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 
        Troops-to-Teachers 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 and former 
        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 under paragraph 
        (1) in any fiscal year may not exceed $4,000,000.

``SEC. 2045. SUPPORT OF INNOVATIVE PRERETIREMENT TEACHER CERTIFICATION 
                    PROGRAMS.

  ``(a) Development, Implementation and Demonstration.--The Secretary 
may enter into a memorandum of agreement with a State, an institution 
of higher education, or a consortia of States or institutions of higher 
education, to develop, implement, and demonstrate teacher certification 
programs for members of the Armed Forces described in section 
2042(a)(1)(B) for the purpose of assisting such members to consider and 
prepare for a career as a fully qualified elementary school teacher, 
secondary school teacher, or vocational or technical teacher upon their 
retirement from the Armed Forces.
  ``(b) Program Elements.--A teacher certification program under 
subsection (a) must--
          ``(1) provide recognition of military experience and training 
        as related to licensure or certification 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 also be delivered via distance 
        education methods; and
          ``(5) address any additional requirements or specifications 
        as established by the Secretary.
  ``(c) Application Procedures.--A State or institution of higher 
education (or a consortia of States or institutions of higher 
education) that has a program leading to State approved teacher 
certification programs may submit a proposal to the Secretary for 
consideration under subsection (a). The Secretary shall give preference 
to proposals that provide for a sharing of the costs to carry out the 
teacher certification program.
  ``(d) Continuation of Programs.--The purpose of this section is to 
provide funding to develop, implement, and demonstrate teacher 
certification programs under subsection (a). Upon successful completion 
of the demonstration phase, the continued operation of the teacher 
certification programs shall not be the responsibility of the 
Secretary.
  ``(e) Funding Limitation.--The total amount obligated by the 
Secretary under this section in any fiscal year may not exceed 
$5,000,000.

``SEC. 2046. REPORTING REQUIREMENTS.

  ``(a) Report Required.--Not later than March 31 of each year, the 
Secretary (in consultation with the Secretary of Defense and the 
Secretary of Transportation) and the Comptroller General shall each 
submit to Congress a report on the effectiveness of the Troops-to-
Teachers Program in the recruitment and retention of qualified 
personnel by local educational agencies and public charter schools.
  ``(b) Elements of Report.--The report under subsection (a) shall 
include information on the following:
          ``(1) The number of participants in the Troops-to-Teachers 
        Program.
          ``(2) The schools in which the participants are employed.
          ``(3) The grade levels at which the participants teach.
          ``(4) The subject matters 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, as the case may be, considers appropriate.
  ``(c) Recommendations.--The report of the Comptroller General under 
this section shall also include any recommendations of the Comptroller 
General regarding any means of improving the Troops-to-Teachers 
Program, including means of enhancing the recruitment and retention of 
participants in the Program.

``SEC. 2047. DEFINITIONS.

  ``For purposes of this chapter:
          ``(1) Armed forces.--The term `Armed Forces' means the Army, 
        Navy, Air Force, Marine Corps, and Coast Guard.
          ``(2) Program.--The term `Program' means the Troops-to-
        Teachers Program authorized by this subpart.
          ``(3) 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.
          ``(4) 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 a reserve component of the Navy;
                  ``(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.

                  ``CHAPTER 2--TRANSITION TO TEACHING

``SEC. 2048. PROFESSIONALS SEEKING TO CHANGE CAREERS.

  ``(a) Purpose.--The purpose of this section is to address the need of 
high-need local educational agencies for highly qualified teachers in 
particular subject areas, such as mathematics, science, foreign 
languages, bilingual education, and special education, needed by those 
agencies, following the model of the program under chapter 1, by 
recruiting, preparing, placing, and supporting career-changing 
professionals who have knowledge and experience that will help them 
become such teachers.
  ``(b) Program Authorized.--The Secretary may award grants, contracts, 
or cooperative agreements to institutions of higher education and 
public and private nonprofit agencies or organizations to carry out 
programs authorized by this section.
  ``(c) Application.--Each applicant that desires an award under 
subsection (b) shall submit an application to the Secretary containing 
such information as the Secretary requires, including--
          ``(1) a description of the target group of career-changing 
        professionals upon which the applicant will focus its 
        recruitment efforts in carrying out its program under this 
        section, including a description of the characteristics of that 
        target group that shows how the knowledge and experience of its 
        members are relevant to meeting the purpose of this section;
          ``(2) a description of the training that program participants 
        will receive and how that training will relate to their 
        certification as teachers;
          ``(3) a description of how the applicant will collaborate, as 
        needed, with other institutions, agencies, or organizations to 
        recruit, train, place, support, and provide teacher induction 
        programs to program participants under this section, including 
        evidence of the commitment of those institutions, agencies, or 
        organizations to the applicant's program;
          ``(4) a description of how the applicant will evaluate the 
        progress and effectiveness of its program, including--
                  ``(A) the program's goals and objectives;
                  ``(B) the performance indicators the applicant will 
                use to measure the program's progress; and
                  ``(C) the outcome measures that will be used to 
                determine the program's effectiveness; and
          ``(5) such other information and assurances as the Secretary 
        may require.
  ``(d) Uses of Funds and Period of Service.--
          ``(1) Authorized activities.--Funds under this section may be 
        used for--
                  ``(A) recruiting program participants, including 
                informing them of opportunities under the program and 
                putting them in contact with other institutions, 
                agencies, or organizations that would train, place, and 
                support them;
                  ``(B) training stipends and other financial 
                incentives for program participants, not to exceed 
                $5,000 per participant;
                  ``(C) assisting institutions of higher education or 
                other providers of teacher training to tailor their 
                training to meet the particular needs of professionals 
                who are changing their careers to teaching;
                  ``(D) placement activities, including identifying 
                high-need local educational agencies with a need for 
                the particular skills and characteristics of the newly 
                trained program participants and assisting those 
                participants to obtain employment in those local 
                educational agencies; and
                  ``(E) post-placement induction or support activities 
                for program participants.
          ``(2) Period of service.--A program participant in a program 
        under this section who completes his or her training shall 
        serve in a high-need local educational agency for at least 3 
        years.
          ``(3) Repayment.--The Secretary shall establish such 
        requirements as the Secretary determines appropriate to ensure 
        that program participants who receive a training stipend or 
        other financial incentive under paragraph (1)(B), but fail to 
        complete their service obligation under paragraph (2), repay 
        all or a portion of such stipend or other incentive.
  ``(e) Equitable Distribution.--To the extent practicable, the 
Secretary shall make awards under this section that support programs in 
different geographic regions of the United States.
  ``(f) Definition.--As used in this section, the term `program 
participants' means career-changing professionals who--
          ``(1) hold at least a baccalaureate degree;
          ``(2) demonstrate interest in, and commitment to, becoming a 
        teacher; and
          ``(3) have knowledge and experience that are relevant to 
        teaching a high-need subject area in a high-need local 
        educational agency.

                          ``Subpart 5--Funding

``SEC. 2051. AUTHORIZATIONS OF APPROPRIATIONS.

  ``(a) In General.--For the purpose of carrying out this part, other 
than subpart 4, there are authorized to be appropriated $3,600,000,000 
for fiscal year 2002 and such sums as may be necessary for each of 
fiscal years 2003 through 2006.
  ``(b) Subpart 4.--For the purpose of carrying out subpart 4, there 
are authorized to be appropriated $50,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of fiscal years 2003 through 
2006.

                    ``Subpart 6--General Provisions

``SEC. 2061. DEFINITIONS.

  ``For purposes of 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 subject 
                matter areas in which teachers provide instruction; and
                  ``(B) when referring to a specific academic subject 
                matter area, the disciplines or content areas in which 
                academic majors are offered by the arts and sciences 
                organizational unit.
          ``(2) Beginning teacher.--The term `beginning teacher' means 
        an educator in a public school who has not yet been teaching 3 
        full school years.
          ``(3) Mentoring program.--The term `mentoring program' means 
        to provide professional support and development, instruction, 
        and guidance to beginning teachers, but does not include a 
        teacher or individual who begins to work in a supervisory 
        position.
          ``(4) Publicly report.--The term `publicly report', when used 
        with respect to the dissemination of information, means that 
        the information is made widely available to the public, 
        including parents and students, through such means as the 
        Internet and major print and broadcast media outlets.''.

SEC. 202. NATIONAL WRITING PROJECT.

  (a) Transfer and Redesignation.--Part K of title X (20 U.S.C. 8331 et 
seq.) is transferred and redesignated as part B of title II. Sections 
10991 and 10992 are redesignated as sections 2101 and 2102, 
respectively.
  (b) Evaluation.--Section 2102(g) (as so redesignated) is amended--
          (1) in paragraph (1), by striking ``14701.'' and inserting 
        ``8651.''; and
          (2) in paragraph (2), by striking ``1994'' and inserting 
        ``2002''.
  (c) Reauthorization.--Section 2102(i) (as so redesignated) is amended 
by striking ``$4,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the four succeeding fiscal years,'' and inserting 
``such sums as may be necessary for fiscal year 2002 and the four 
succeeding fiscal years,''.
  (d) Continuation of Awards.--Notwithstanding any other provision of 
this Act, any person or agency that was awarded a grant or contract 
under part K of title X (20 U.S.C. 8331 et seq.) prior to the date of 
the enactment of this Act 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.

SEC. 203. CIVIC EDUCATION; TEACHER LIABILITY PROTECTION.

  (a) In General.--Title II, as amended by sections 201 and 202, is 
further amended by adding at the end the following:

                       ``PART C--CIVIC EDUCATION

``SEC. 2201. SHORT TITLE.

  ``This part may be cited as the `Education for Democracy Act'.

``SEC. 2202. FINDINGS.

  ``The Congress finds that--
          ``(1) college freshmen surveyed in 1999 by the Higher 
        Education Research Institute at the University of California at 
        Los Angeles demonstrated higher levels of disengagement, both 
        academically and politically, than any previous entering class 
        of students;
          ``(2) college freshmen in 1999 demonstrated the lowest levels 
        of political interest in the 20-year history of surveys 
        conducted by the Higher Education Research Institute at the 
        University of California at Los Angeles;
          ``(3) United States secondary school students expressed 
        relatively low levels of interest in politics and economics in 
        a 1999 Harris survey;
          ``(4) the 32d Annual Phi Delta Kappa/Gallup Poll of 2000 
        indicated that preparing students to become responsible 
        citizens was the most important purpose of public schools;
          ``(5) Americans surveyed by the Organization of Economic 
        Cooperation and Development indicated that only 59 percent had 
        confidence that schools have a major effect on the development 
        of good citizenship;
          ``(6) teachers too often do not have sufficient expertise in 
        the subjects that they teach, and 50 percent of all secondary 
        school history students in America are being taught by teachers 
        with neither a major nor a minor in history;
          ``(7) secondary school students correctly answered fewer than 
        50 percent of the questions on a national test of economic 
        knowledge in a 1999 Harris survey;
          ``(8) the 1998 National Assessment of Educational Progress 
        indicated that students have only superficial knowledge of, and 
        lacked a depth of understanding regarding, civics;
          ``(9) civics and economic education are important not only to 
        developing citizenship competencies in the United States but 
        also are critical to supporting political stability and 
        economic health in other democracies, particularly emerging 
        democratic market economies;
          ``(10) more than 75 percent of Americans surveyed by the 
        National Constitution Center in 1997 admitted that they knew 
        only some or very little about the Constitution of the United 
        States; and
          ``(11) the Constitution of the United States is too often 
        viewed within the context of history and not as a living 
        document that shapes current events.

``SEC. 2203. PURPOSE.

  ``It is the purpose of this part--
          ``(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. 2204. AUTHORITY.

  ``The Secretary may make grants to, or enter into contracts with--
          ``(1) the Center for Civic Education to carry out civic 
        education activities in accordance with sections 2205 and 2206; 
        and
          ``(2) the National Council on Economic Education to carry out 
        economic education activities in accordance with section 2206.

``SEC. 2205. WE THE PEOPLE PROGRAM.

  ``(a) Use of Funds.--The Center for Civic Education may use funds 
made available under grants or contracts under section 2204(1) only to 
carry out activities--
          ``(1) under the Citizen and the Constitution program in 
        accordance with subsection (b); and
          ``(2) under the Project Citizen program in accordance with 
        subsection (c).
  ``(b) Citizen and the Constitution Program.--
          ``(1) Educational activities.--The Center for Civic 
        Education--
                  ``(A) shall use funds made available under grants or 
                contracts under section 2204(1)--
                          ``(i) to continue and expand the educational 
                        activities of the program entitled the `We the 
                        People . . . The Citizen and the Constitution' 
                        administered by the Center for Civic Education;
                          ``(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 assistance made available under section 
                2204(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.--As a condition of receipt of 
        funds under grants or contracts under section 2204(1), the 
        Secretary shall require the Center for Civic Education to make 
        the education program authorized under this subsection 
        available to public and private elementary schools and 
        secondary schools, including Bureau-funded schools, in each of 
        the 435 congressional districts, and in the District of 
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
  ``(c) Project Citizen.--
          ``(1) Educational activities.--The Center for Civic 
        Education--
                  ``(A) shall use funds made available under grants or 
                contracts under section 2204(1)--
                          ``(i) to continue and expand the educational 
                        activities of the program entitled the `We the 
                        People . . . Project Citizen' program 
                        administered by the 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 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 2204(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.--As a condition of receipt of 
        funds under grants or contracts under section 2204(1), the 
        Secretary shall require the Center for Civic Education to make 
        the education program authorized under this subsection 
        available to public and private middle schools, including 
        Bureau-funded schools, in each of the 50 States, the District 
        of Columbia, the Commonwealth of Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of the 
        Northern Mariana Islands.
  ``(d) 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. 2206. COOPERATIVE CIVIC EDUCATION AND ECONOMIC EDUCATION 
                    EXCHANGE PROGRAMS.

  ``(a) Use of Funds.--The Center for Civic Education and the National 
Council on Economic Education may use funds made available under grants 
or contracts under section 2204(2) only to carry out cooperative 
education exchange programs that--
          ``(1) 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) assist eligible countries in the adaptation, 
        implementation, and institutionalization of programs described 
        in paragraph (1);
          ``(3) create and implement programs for civics and government 
        education, and economic education, for students that draw upon 
        the experiences of the participating eligible countries;
          ``(4) provide means for the exchange of ideas and experiences 
        in civics and government education, and economic education, 
        among political, educational, governmental, and private sector 
        leaders of participating eligible countries; and
          ``(5) 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.
  ``(b) Activities.--In carrying out the cooperative education exchange 
programs assisted under this section, the Center for Civic Education 
and the National Council on Economic Education 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--
                          ``(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.
  ``(c) 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.
  ``(d) Consultation.--The Secretary may make a grant, or enter into a 
contract, under section 2204(2) only if the Secretary of State concurs 
with the Secretary that such grant, or contract, is consistent with the 
foreign policy of the United States.
  ``(e) 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 or the National Council on Economic 
        Education may work in conducting such activities, are 
        creditable.
  ``(f) 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. 2207. FUNDING.

  ``(a) Authorization of Appropriations.--
          ``(1) We the people program.--There are authorized to be 
        appropriated to carry out sections 2204(1) and 2205 such sums 
        as may be necessary for each of fiscal years 2002 through 2006.
          ``(2) Cooperative civic education and economic education 
        exchange programs.--There are authorized to be appropriated to 
        carry out sections 2204(2) and 2206 such sums as may be 
        necessary for each of fiscal years 2002 through 2006.
  ``(b) Limitation.--In each fiscal year, the Secretary may use not 
more than 50 percent of the amount appropriated under subsection (a)(2) 
for assistance for economic educational activities.

                 ``PART D--TEACHER LIABILITY PROTECTION

``SEC. 2301. TEACHER IMMUNITY.

  ``(a) Immunity.--Notwithstanding any other provision of law, no 
school board member of, or teacher or administrator in, a local 
educational agency that receives funds under this Act shall be liable 
for monetary damages in his or her personal capacity for an action that 
was taken in carrying out his or her official duties and intended to 
maintain school discipline, so long as that action was not prohibited 
under State or local law and did not constitute reckless or criminal 
misconduct.
  ``(b) Limitation.--The immunity established under subsection (a) 
shall apply only to liability arising under Federal law.''.
  (b) Continuation of Awards.--Notwithstanding any other provision of 
this Act, any person or agency that was awarded a grant under part F of 
title X (20 U.S.C. 8141 et seq.) prior to the date of the enactment of 
this Act 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.

   TITLE III--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT 
              CHILDREN; INDIAN AND ALASKA NATIVE EDUCATION

 PART A--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT CHILDREN

SEC. 301. PROGRAMS AUTHORIZED.

  (a) Title Heading.--The heading for title III is amended to read as 
follows:

  ``TITLE III--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT 
            CHILDREN; INDIAN AND ALASKA NATIVE EDUCATION''.

  (b) Short Title.--Section 3101 (20 U.S.C. 6801) is repealed.
  (c) Limitation on Availability of Certain Funds for Schools.--
          (1) In general.--Section 3601 (20 U.S.C. 7001)--
                  (A) is transferred to part B of title V (as amended 
                by section 501) and inserted after section 5204 (as so 
                amended);
                  (B) is redesignated as section 5205; and
                  (C) is amended by striking ``this title'' each place 
                such term appears and inserting ``this part''.
          (2) Part heading repeal.--The part heading for part F of 
        title III is repealed.
  (d) Limited English Proficient and Immigrant Children.--Parts A 
through E of title III (20 U.S.C. 6811 et seq.) are amended to read as 
follows:

    ``PART A--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT 
                                CHILDREN

   ``Subpart 1--English Language and Academic Instructional Programs

``SEC. 3101. SHORT TITLE.

  ``This subpart may be cited as the `English Language Proficiency and 
Academic Achievement Act'.

``SEC. 3102. FINDINGS AND PURPOSES.

  ``(a) Findings.--The Congress finds as follows:
          ``(1) English is the common language of the United States and 
        every citizen and other person residing in the United States 
        should have a command of the English language in order to 
        develop to their full potential.
          ``(2) Limited English proficient children, including recent 
        immigrant children, must overcome a number of challenges in 
        receiving an education in order to participate fully in 
        American society, including--
                  ``(A) segregated educational programs;
                  ``(B) disproportionate and improper placement in 
                special education and other special programs due to the 
                use of inappropriate evaluation procedures;
                  ``(C) the limited English proficiency of their 
                parents, which hinders the parents' ability to fully 
                participate in the education of their children; and
                  ``(D) a need for additional teachers and other staff 
                who are professionally trained and qualified to serve 
                such children.
          ``(3) States and local educational agencies need assistance 
        in developing the capacity to provide programs of instruction 
        that offer and provide an equal educational opportunity to 
        children who need special assistance because English is not 
        their dominant language.
          ``(4) Since 1979, the number of limited English proficient 
        children attending school in the United States has more than 
        doubled to greater than 4,000,000, and demographic trends 
        indicate the population of limited English proficient children 
        will continue to increase.
          ``(5) Native Americans, including native residents of the 
        outlying areas, and Native American languages (as such terms 
        are defined in section 103 of the Native American Languages 
        Act) have a unique status under Federal law that requires 
        special policies within the broad purposes of this part to 
        serve the educational needs of language minority students in 
        the United States.
          ``(6) Research, evaluation, and data collection capabilities 
        in the field of instruction for limited English proficient 
        children need to be strengthened so that educators and other 
        staff teaching limited English proficient children in the 
        classroom can better identify and promote programs, program 
        implementation strategies, and instructional practices that 
        result in the effective education of limited English proficient 
        children.
          ``(7) The Federal Government has a special and continuing 
        obligation to ensure that States and local educational agencies 
        provide children of limited English proficiency the same 
        educational opportunities afforded other children.
  ``(b) Purposes.--The purposes of this part are--
          ``(1) to help ensure that children who are limited English 
        proficient, including recent immigrant children, attain English 
        proficiency, develop high levels of academic attainment in 
        English, and meet the same challenging State academic content 
        standards and challenging State student academic achievement 
        standards expected of all children;
          ``(2) to develop high-quality programs designed to assist 
        local educational agencies in teaching limited English 
        proficient children;
          ``(3) to assist local educational agencies to develop and 
        enhance their capacity to provide high-quality instructional 
        programs designed to prepare limited English proficient 
        students, including recent immigrant students, to enter all-
        English instructional settings within 3 years; and
          ``(4) to provide State educational agencies and local 
        educational agencies with the flexibility to implement 
        instructional programs, tied to scientifically based reading 
        research and sound research and theory on teaching limited 
        English proficient children, that the agencies believe to be 
        the most effective for teaching English.

``SEC. 3103. PARENTAL NOTIFICATION AND CONSENT FOR ENGLISH LANGUAGE 
                    INSTRUCTION.

  ``(a) Notification.--If a local educational agency uses funds under 
this subpart to provide English language instruction to limited English 
proficient children, the agency shall inform a parent or the parents of 
a child participating in an English language instruction program for 
limited English proficient children assisted under this subpart of--
          ``(1) the reasons for the identification of the child as 
        being in need of English language instruction;
          ``(2) the child's level of English proficiency, how such 
        level was assessed, and the status of the child's academic 
        achievement;
          ``(3) how the English language instruction program will 
        specifically help the child acquire English and meet age-
        appropriate standards for grade promotion and graduation;
          ``(4) what the specific exit requirements are for the 
        program;
          ``(5) the expected rate of transition from the program into a 
        classroom that is not tailored for limited English proficient 
        children; and
          ``(6) the expected rate of graduation from high school for 
        the program if funds under this subpart are used for children 
        in secondary schools.
  ``(b) Consent.--
          ``(1) Agency requirements.--
                  ``(A) Informed consent.--For a child who has been 
                identified as limited English proficient prior to the 
                beginning of the school year, each local educational 
                agency that receives funds under this subpart shall 
                make a reasonable and substantial effort to obtain 
                informed parental consent prior to the placement of a 
                child in an English language instruction program for 
                limited English proficient children funded under this 
                subpart, if the program does not include classes which 
                exclusively or almost exclusively use the English 
                language in instruction.
                  ``(B) Written consent not obtained.--
                          ``(i) In general.--If written consent is not 
                        obtained, the local educational agency shall 
                        maintain a written record that includes the 
                        date and the manner in which such informed 
                        consent was sought, including the specific 
                        efforts made to obtain such consent.
                          ``(ii) Proof of effort.--Notice, in an 
                        understandable form, of specific efforts made 
                        to obtain written consent and a copy of the 
                        written record described in clause (i) shall be 
                        mailed or delivered in writing to a parent or 
                        the parents of a child prior to placing the 
                        child in a program described in subparagraph 
                        (A), and shall include a final request for 
                        parental consent for such services. After such 
                        notice has been mailed or delivered in writing, 
                        the local educational agency shall provide 
                        appropriate educational services.
                          ``(iii) Special rule applicable during 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 make a reasonable and 
                        substantial effort to obtain parental consent 
                        under this clause. For such children, the 
                        agency shall document, in writing, its specific 
                        efforts to obtain such consent prior to placing 
                        the child in a program described in 
                        subparagraph (A). After such documentation has 
                        been made, the local educational agency shall 
                        provide appropriate educational services to 
                        such child. The proof of documentation shall be 
                        mailed or delivered in writing to a parent or 
                        the parents of the child in a timely manner and 
                        shall include information on how to have their 
                        child immediately removed from the program upon 
                        their request. Nothing in this clause shall be 
                        construed as exempting a local educational 
                        agency from complying with the notification 
                        requirements of subsection (a) and the consent 
                        requirements of this paragraph.
          ``(2) Parental rights.--A parent or the parents of a child 
        participating in an English language instruction program for 
        limited English proficient children assisted under this 
        subpart--
                  ``(A) shall select among methods of instruction, if 
                more than one method is offered in the program; and
                  ``(B) shall have the right to have their child 
                immediately removed from the program upon their 
                request.
  ``(c) Receipt of Information.--A parent or the parents of a child 
identified for participation in an English language instruction program 
for limited English proficient children assisted under this subpart 
shall receive, in a manner and form understandable to the parent or 
parents, the information required by this subsection. At a minimum, the 
parent or parents shall receive--
          ``(1) timely information about English language instruction 
        programs for limited English proficient children assisted under 
        this part;
          ``(2) if a parent or the parents of a participating child so 
        desire, notice of opportunities for regular meetings for the 
        purpose of formulating and responding to recommendations from 
        the parent or parents; and
          ``(3) procedural information for removing a child from a 
        program for limited English proficient children.
  ``(d) Basis for Admission or Exclusion.--Students shall not be 
admitted to, or excluded from, any federally assisted education program 
on the basis of a surname or language-minority status.

``SEC. 3104. TESTING OF LIMITED ENGLISH PROFICIENT CHILDREN.

  ``(a) In General.--Assessments of limited English proficient children 
participating in programs funded under this subpart, to the extent 
practicable, shall be in the language and form most likely to yield 
accurate and reliable information on what such students know and can do 
in content areas.
  ``(b) Special Rule.--Notwithstanding subsection (a), in the case of 
an assessment of reading or language arts of any student who has 
attended school in the United States (excluding Puerto Rico) for 3 or 
more consecutive school years, the assessment shall be in the form of a 
test written in English, except that, if the entity administering the 
assessment determines, on a case-by-case individual basis, that 
assessments in another language or form would likely yield more 
accurate and reliable information on what such student knows and can 
do, the entity may assess such student in such language or form for 1 
additional year.

``SEC. 3105. FORMULA GRANTS TO STATES.

  ``(a) In General.--In the case of each State that in accordance with 
section 3107 submits to the Secretary an application for a fiscal year, 
the Secretary shall make a grant for the year to the State for the 
purposes specified in subsection (b). The grant shall consist of the 
allotment determined for the State under subsection (c).
  ``(b) Purposes of Grants.--
          ``(1) Required expenditures.--The Secretary may make a grant 
        under subsection (a) only if the State involved agrees that the 
        State will expend at least 95 percent of its allotment under 
        subsection (c) for the purpose of making subgrants to eligible 
        entities to provide assistance to limited English proficient 
        children in accordance with sections 3108 and 3109.
          ``(2) Authorized expenditures.--Subject to paragraph (3), a 
        State that receives a grant under subsection (a) may expend not 
        more than 5 percent of its allotment under subsection (c) for 
        one or more of the following purposes:
                  ``(A) Carrying out--
                          ``(i) professional development activities, 
                        and other activities, that assist personnel in 
                        meeting State and local certification 
                        requirements for teaching limited English 
                        proficient children; and
                          ``(ii) other activities that provide such 
                        personnel with the skills and knowledge 
                        necessary to educate limited English proficient 
                        children.
                  ``(B) Providing scholarships and fellowships to 
                students who agree to teach limited English proficient 
                children once they graduate.
                  ``(C) Planning, administration, and interagency 
                coordination related to the subgrants referred to in 
                paragraph (1).
                  ``(D) Providing technical assistance and other forms 
                of assistance to local educational agencies that--
                          ``(i) educate limited English proficient 
                        children; and
                          ``(ii) are not receiving a subgrant from a 
                        State under this subpart.
                  ``(E) Providing bonuses to subgrantees whose 
                performance has been exceptional in terms of the speed 
                with which children enrolled in the subgrantee's 
                programs and activities attain English language 
                proficiency and meet challenging State academic content 
                standards and challenging State student academic 
                achievement standards.
          ``(3) Limitation on administrative costs.--In carrying out 
        paragraph (2), a State that receives a grant under subsection 
        (a) may expend not more than 2 percent of its allotment under 
        subsection (c) for the purposes described in paragraph (2)(C).
  ``(c) Determination of Allotment Amounts.--
          ``(1) Reservations.--From the amount appropriated under 
        section 3110 to carry out this subpart for each fiscal year, 
        the Secretary shall reserve--
                  ``(A) .5 percent of such amount for payments to 
                entities that are considered to be local educational 
                agencies under section 3106(a) for activities approved 
                by the Secretary;
                  ``(B) .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 part; and
                  ``(C) \1/2\ of 1 percent of such amount for 
                evaluation of the programs under this part and for 
                dissemination of best practices.
          ``(2) Continuation awards.--Before making awards to States 
        under paragraph (3) for any fiscal year, the Secretary shall 
        make continuation awards to recipients of grants under subpart 
        1 of part A of the Bilingual Education Act, as that Act was in 
        effect on the day before the effective date of the No Child 
        Left Behind Act of 2001, in order to allow such recipients to 
        continue to receive funds in accordance with the terms of their 
        grant until the date on which the grant period otherwise would 
        have terminated if the No Child Left Behind Act of 2001 had not 
        been enacted.
          ``(3) State allotments.--
                  ``(A) In general.--From the amount appropriated under 
                section 3110 to carry out this subpart for each fiscal 
                year that remains after carrying out paragraphs (1) and 
                (2), the Secretary shall allot to each of the 50 
                States, the District of Columbia, and the Commonwealth 
                of Puerto Rico an amount which bears the same ratio to 
                such amount as the total number of children and youth 
                who are limited English proficient and who reside in 
                such State bears to the total number of such children 
                and youth residing in all such States that, in 
                accordance with section 3107, submit to the Secretary 
                an application for the year.
                  ``(B) Reallotment.--
                          ``(i) In general.--If any State described in 
                        subparagraph (A) does not submit to the 
                        Secretary an application for a fiscal year, or 
                        submits an application (or any modification to 
                        an application) 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 
                                that satisfy the requirements 
                                applicable to eligible entities under 
                                section 3108 and any additional 
                                requirements that may be imposed by the 
                                Secretary; and
                                  ``(II) shall reallot any portion of 
                                such allotment remaining after the 
                                application of subclause (I) to the 
                                remaining States in accordance with 
                                subparagraph (A).
                          ``(ii) Requirements on specially qualified 
                        agencies.--If a specially qualified agency 
                        receives funds under this subparagraph, the 
                        requirements of subsection (b) shall not apply 
                        to the agency. In lieu of those requirements, 
                        the specially qualified agency shall expend the 
                        funds for the authorized activities described 
                        in section 3108(b) and otherwise shall satisfy 
                        the requirements of section 3108.
                  ``(C) Special rule for puerto rico.--The total amount 
                allotted to Puerto Rico for any fiscal year under 
                subparagraph (A) shall not exceed .5 percent of the 
                total amount allotted to all States for that fiscal 
                year.
          ``(4) Use of data for determinations.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), for the purpose of determining the number of 
                children and youth who are limited English proficient 
                and reside in a State and in all States for each fiscal 
                year, the Secretary shall use the most recent 
                satisfactory data available from the Bureau of the 
                Census and the American Community Survey available from 
                the Department of Commerce.
                  ``(B) Exception.--If the data described in 
                subparagraph (A) are more than 4 years old or 
                unavailable, the Secretary shall use the most recent 
                satisfactory data provided by the States, such as 
                enrollment data and data that reflect the number of 
                students taking the English proficiency assessments in 
                the States.
          ``(5) No reduction permitted based on teaching method.--The 
        Secretary may not reduce a State's allotment based on the 
        State's selection of any method of instruction as its preferred 
        method of teaching the English language to children who are 
        limited English proficient.

``SEC. 3106. 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, secondary, and 
postsecondary schools operated predominately for Native American or 
Alaska Native children, the following shall be considered to be a local 
educational agency:
          ``(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 or secondary school that is operated or 
        funded by the Bureau of Indian Affairs, or a consortium of such 
        schools.
          ``(5) An elementary 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 or secondary school operated by the 
        Bureau of Indian Affairs and an institution of higher 
        education, in consortium with an elementary 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 a 
local educational agency under subsection (a), and that desires to 
submit an application for Federal financial assistance under this 
subpart, shall submit the application to the Secretary. In all other 
respects, such an entity shall be eligible for a subgrant under this 
subpart on the same basis as any other local educational agency.

``SEC. 3107. APPLICATIONS BY STATES.

  ``For purposes of section 3105, an application submitted by a State 
for a grant under such section for a fiscal year is in accordance with 
this section if the application--
          ``(1) describes the process that the State will use in making 
        competitive subgrants to eligible entities under section 
        3109(c);
          ``(2) contains an agreement that, in carrying out this 
        subpart, the State will address the needs of school systems of 
        all sizes and in all geographic areas, including rural and 
        urban schools;
          ``(3) contains an agreement that competitive subgrants to 
        eligible entities under section 3109(c) shall be of sufficient 
        size and scope to allow such entities to carry out high quality 
        education programs for limited English proficient children;
          ``(4) contains an agreement that the State will coordinate 
        its programs and activities under this subpart with its other 
        programs and activities under this Act and other Acts, as 
        appropriate;
          ``(5) contains an agreement that the State--
                  ``(A) shall monitor the progress of students enrolled 
                in programs and activities receiving assistance under 
                this subpart in attaining English proficiency and in 
                attaining challenging State academic content standards 
                and challenging State student academic achievement 
                standards;
                  ``(B) shall establish standards and benchmarks for 
                English language development that are aligned with 
                State academic content and achievement standards; and
                  ``(C) will ensure that eligible entities comply with 
                section 3104 to annually test children in English who 
                have been in the United States for 3 or more 
                consecutive years;
          ``(6) contains an assurance that the State will develop high-
        quality annual assessments to measure English language 
        proficiency and require eligible entities receiving a subgrant 
        under this subpart annually to assess the English proficiency 
        of all children with limited English proficiency participating 
        in a program funded under this subpart;
          ``(7) contains an agreement that the State will develop 
        annual performance objectives for raising the level of English 
        proficiency of each limited English proficient student, and 
        that these objectives shall include percentage increases in 
        performance on annual assessments in reading, writing, 
        speaking, and listening comprehension as compared to the 
        preceding school year; and
          ``(8) contains an agreement that the State will require 
        eligible entities 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 English language 
        instruction and programs which assist limited English 
        proficient children in attaining challenging State academic 
        content standards and challenging State student academic 
        achievement standards once assistance under this subpart is no 
        longer available.

``SEC. 3108. SUBGRANTS TO ELIGIBLE ENTITIES.

  ``(a) Purposes of Subgrants.--A State may make a subgrant to an 
eligible entity from funds received by the State under this subpart 
only if the entity agrees to expend the funds to improve the education 
of limited English proficient children and their families, through the 
acquisition of English and the attainment of challenging State academic 
content standards and challenging State student academic achievement 
standards, using approaches and methodologies based on scientifically 
based reading research and sound research and theory on teaching 
limited English proficient children, by--
          ``(1) developing and implementing new English language and 
        academic content instructional programs for children who are 
        limited English proficient, including programs of early 
        childhood education and kindergarten through 12th grade 
        education;
          ``(2) carrying out highly focused, innovative, locally 
        designed projects to expand or enhance existing English 
        language and academic content instruction programs for limited 
        English proficient children;
          ``(3) implementing, within an individual school, schoolwide 
        programs for restructuring, reforming, and upgrading all 
        relevant programs and operations relating to English language 
        and academic content instruction for limited English proficient 
        students; or
          ``(4) implementing, within the entire jurisdiction of a local 
        educational agency, agencywide programs for restructuring, 
        reforming, and upgrading all relevant programs and operations 
        relating to English language and academic content instruction 
        for limited English proficient students.
  ``(b) Authorized Subgrantee Activities.--
          ``(1) In general.--Subject to paragraph (2), a State may make 
        a subgrant to an eligible entity from funds received by the 
        State under this subpart in order that the eligible entity may 
        achieve one of the purposes described in subsection (a) by 
        undertaking one or more of the following activities to improve 
        the understanding, and use, of the English language, based on a 
        child's learning skills and attainment of challenging State 
        academic content standards and challenging State student 
        academic achievement standards:
                  ``(A) Upgrading program objectives and effective 
                instructional strategies.
                  ``(B) Improving the instruction program for limited 
                English proficient students by identifying, acquiring, 
                and upgrading curricula, instructional materials, 
                educational software, and assessment procedures.
                  ``(C) Providing--
                          ``(i) tutorials and academic or vocational 
                        education for limited English proficient 
                        children; and
                          ``(ii) intensified instruction.
                  ``(D) Developing and implementing elementary or 
                secondary school English language instructional 
                programs that are coordinated with other relevant 
                programs and services.
                  ``(E) Providing professional development to classroom 
                teachers, principals, administrators, and other school 
                or community-based organizational personnel to improve 
                the instruction and assessment of children who are 
                limited English proficient children.
                  ``(F) Improving the English language proficiency and 
                academic performance of limited English proficient 
                children.
                  ``(G) Improving the instruction of limited English 
                proficient children by providing for the acquisition or 
                development of education technology or instructional 
                materials, access to and participation in electronic 
                networks for materials, training and communications, 
                and incorporation of such resources in curricula and 
                programs, such as those funded under this subpart.
                  ``(H) Developing tutoring programs for limited 
                English proficient children that provide early 
                intervention and intensive instruction in order to 
                improve academic achievement, to increase graduation 
                rates among limited English proficient children, and to 
                prepare students for transition as soon as possible 
                into classrooms where instruction is not tailored for 
                limited English proficient children.
                  ``(I) Providing family literacy services and parent 
                outreach and training activities to limited English 
                proficient children and their families to improve their 
                English language skills and assist parents in helping 
                their children to improve their academic performance.
                  ``(J) Other activities that are consistent with the 
                purposes of this part.
          ``(2) Moving children out of specialized classrooms.--Any 
        program or activity undertaken by an eligible entity using a 
        subgrant from a State under this subpart shall be designed to 
        assist students enrolled in the program or activity to attain 
        English proficiency and meet challenging State academic content 
        standards and challenging State student academic achievement 
        standards as soon as possible, but not later than after 3 
        consecutive years of attendance in United States schools 
        (excluding schools in Puerto Rico), and to move into a 
        classroom where instruction is not tailored for limited English 
        proficient children.
  ``(c) Selection of Method of Instruction.--To receive a subgrant from 
a State 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 standards and challenging State student academic 
achievement standards. Such selection shall be consistent with sections 
3134 and 3135.
  ``(d) Duration of Subgrants.--The duration of a competitive subgrant 
made by a State under section 3109(c) shall be determined by the State 
in its discretion.
  ``(e) Applications by Eligible Entities.--
          ``(1) In general.--To receive a subgrant from a State under 
        this subpart, an eligible entity shall submit an application to 
        the State at such time, in such form, and containing such 
        information as the State may require.
          ``(2) Required documentation.--The application shall--
                  ``(A) describe the programs and activities proposed 
                to be developed, implemented, and administered under 
                the subgrant;
                  ``(B) describe how the eligible entity will use the 
                subgrant funds to satisfy the requirement in subsection 
                (b)(2); and
                  ``(C) describe how the eligible entity, using the 
                disaggregated results of the student assessments 
                required under section 1111(b)(4) and other measures 
                available, will annually review the progress of 
                elementary and secondary schools within its 
                jurisdiction, or served by it, to determine if such 
                schools are making the adequate yearly progress 
                necessary to ensure that limited English proficient 
                students attending the schools will meet the State's 
                proficient level of performance on the State assessment 
                described in section 1111(b)(4), and will hold such 
                schools accountable for making such progress.
          ``(3) Requirements for approval.--The application shall 
        contain assurances that--
                  ``(A) the eligible entity will use qualified 
                personnel who have appropriate training and 
                professional credentials in teaching English to 
                children who are limited English proficient, and who 
                are proficient in English, including written and oral 
                communication skills;
                  ``(B) if the eligible entity includes one or more 
                local educational agencies, each such agency is 
                complying with section 3103(b) prior to, and 
                throughout, each school year;
                  ``(C) the eligible entity annually will assess the 
                English proficiency of all children with limited 
                English proficiency participating in programs funded 
                under this subpart;
                  ``(D) the eligible entity has based its proposal on 
                scientifically based reading research and sound 
                research and theory on teaching limited English 
                proficient children;
                  ``(E) the eligible entity has described in the 
                application how students enrolled in the programs and 
                activities proposed in the application will be 
                proficient in English after 3 academic years of 
                enrollment;
                  ``(F) the eligible entity will ensure that programs 
                will enable children to speak, read, write, and 
                comprehend the English language and meet challenging 
                State academic content standards and challenging State 
                student academic achievement standards; and
                  ``(G) 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 3134 and 3135.
          ``(4) Quality.--For the purposes of awarding competitive 
        subgrants under section 3109(c), a State shall consider the 
        quality of each application and ensure that it is of sufficient 
        size and scope to meet the purposes of this subpart.

``SEC. 3109. DISTRIBUTION OF SUBGRANTS TO ELIGIBLE ENTITIES.

  ``(a) In General.--A State shall expend at least 95 percent of its 
allotment under section 3105(c) each fiscal year for the purpose of 
making subgrants to eligible entities within the State that have 
approved applications, in accordance with subsections (b) and (c).
  ``(b) Formula Subgrants.--
          ``(1) Reservation.--75 percent of the amount expended by a 
        State for subgrants under this subpart shall be reserved for 
        subgrants to eligible entities described in subsection (a) in 
        which, during the fiscal year for which the subgrant is to be 
        made, the number of limited English proficient children and 
        youth who are enrolled in public and nonpublic elementary or 
        secondary schools located in geographic areas under the 
        jurisdiction of, or served by, such entities is equal to at 
        least 500 students, or 3 percent of the total number of 
        children and youth enrolled in such schools during such fiscal 
        year, whichever is less.
          ``(2) Allotment.--From the amount reserved under paragraph 
        (1), the State shall allot to each eligible entity described in 
        such paragraph a percentage based on the ratio of--
                  ``(A) the number of limited English proficient 
                children and youth who are enrolled in public and 
                nonpublic elementary or secondary schools located in 
                geographic areas under the jurisdiction of, or served 
                by, such entity during the fiscal year for which the 
                allotment is to be made; to
                  ``(B) the number of such children and youth in all 
                such eligible entities.
          ``(3) Reallotment.--Whenever a State determines that an 
        allotment made to an eligible entity under this subsection for 
        a fiscal year will not be used by the entity for the purpose 
        for which it was made, the State shall, in accordance with such 
        rules as it deems appropriate, reallot such amount, consistent 
        with paragraph (2), to other eligible entities in the State for 
        carrying out that purpose.
  ``(c) Competitive Subgrants.--25 percent of the amount expended by a 
State for subgrants under this subpart shall be reserved for 
competitive subgrants to eligible entities described in subsection (a) 
that the State determines--
          ``(1) have experienced significant increases, as compared to 
        the previous 2 years, in the percentage or number of children 
        and youth with limited English proficiency, including recent 
        immigrant children, that have enrolled in public and nonpublic 
        elementary or secondary schools in the geographic areas under 
        the jurisdiction of, or served by, such entities during the 
        fiscal year for which the subgrant is to be made; or
          ``(2) do not satisfy the requirements of subsection (b)(1) 
        but have significant needs for programs under this subpart.

``SEC. 3110. AUTHORIZATION OF APPROPRIATIONS.

  ``For the purpose of carrying out this subpart, there are authorized 
to be appropriated $750,000,000 for fiscal year 2002 and such sums as 
may be necessary for each of the 4 succeeding fiscal years.

                      ``Subpart 2--Administration

``SEC. 3121. EVALUATIONS.

  ``(a) In General.--Each eligible entity that receives a subgrant from 
a State under subpart 1 shall provide the State, at the conclusion of 
every second fiscal year during which the subgrant is received, with an 
evaluation, in a form prescribed by the State, of--
          ``(1) the programs and activities conducted by the entity 
        with funds received under subpart 1 during the 2 immediately 
        preceding fiscal years;
          ``(2) the progress made by students in learning the English 
        language and meeting challenging State academic content 
        standards and challenging State student academic achievement 
        standards;
          ``(3) the number and percentage of students in the programs 
        and activities attaining English language proficiency by the 
        end of each school year, as determined by a valid and reliable 
        assessment of English proficiency; and
          ``(4) the progress made by students in meeting challenging 
        State academic content standards and challenging State student 
        academic achievement standards for each of the 2 years after 
        such students 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--
          ``(1) for improvement of programs and activities;
          ``(2) to determine the effectiveness of programs and 
        activities in assisting children who are limited English 
        proficient to attain English proficiency (as measured 
        consistent with subsection (d)) and meet challenging State 
        academic content standards and challenging State student 
        academic achievement standards; and
          ``(3) in determining whether or not to continue funding for 
        specific programs or projects.
  ``(c) Evaluation Components.--An evaluation provided by an eligible 
entity under subsection (a) shall include--
          ``(1) an evaluation of whether students enrolling in a 
        program or activity conducted by the entity with funds received 
        under subpart 1--
                  ``(A) have attained English proficiency and are 
                meeting challenging State academic content academic and 
                challenging State student academic achievement 
                standards; and
                  ``(B) have achieved a working knowledge of the 
                English language that is sufficient to permit them to 
                perform, in English, in a classroom that is not 
                tailored to limited English proficient children; and
          ``(2) such other information as the State may require.
  ``(d) Evaluation Measures.--In prescribing the form of an evaluation 
provided by an entity under subsection (a), a State shall approve 
evaluation measures, as applicable, for use under subsection (c) that 
are designed to assess--
          ``(1) oral language proficiency in kindergarten;
          ``(2) oral language proficiency, including speaking and 
        listening skills, in first grade;
          ``(3) both oral language proficiency, including speaking and 
        listening skills, and reading and writing proficiency in grades 
        2 and higher; and
          ``(4) attainment of challenging State student academic 
        achievement standards.

``SEC. 3122. REPORTING REQUIREMENTS.

  ``(a) States.--Based upon the evaluations provided to a State under 
section 3121, each State that receives a grant under subpart 1 shall 
prepare and submit every second year to the Secretary a report on 
programs and activities undertaken by the State under such subpart 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 on--
          ``(1) programs and activities undertaken by States under 
        subpart 1 and the effectiveness of such programs and activities 
        in improving the education provided to children who are limited 
        English proficient;
          ``(2) the types of instructional programs used under subpart 
        1 to teach limited English proficient children;
          ``(3) the number of programs or projects, if any, that were 
        terminated because they were not able to reach program goals;
          ``(4) the number of limited English proficient children 
        served under subpart 1 who were transitioned out of special 
        instructional programs funded under such subpart into 
        classrooms where instruction is not tailored for limited 
        English proficient children; and
          ``(5) other information gathered from the reports submitted 
        under subsection (a).

``SEC. 3123. 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 
students that are administered by the Department and other agencies.

                    ``Subpart 3--General Provisions

``SEC. 3131. DEFINITIONS.

  ``For purposes of this part:
          ``(1) Children and youth.--The term `children and youth' 
        means individuals aged 3 through 21.
          ``(2) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization of 
        demonstrated effectiveness or Indian tribe or tribally 
        sanctioned educational authority which is representative of a 
        community or significant segments of a community and which 
        provides educational or related services to individuals in the 
        community. Such term includes a Native Hawaiian or Native 
        American Pacific Islander native language educational 
        organization.
          ``(3) Eligible entity.--The term `eligible entity' means--
                  ``(A) one or more local educational agencies; or
                  ``(B) one or more local educational agencies in 
                collaboration with an institution of higher education, 
                community-based organization, or State educational 
                agency.
          ``(4) 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 
        majority of its governing board and employees consisting of 
        fluent speakers of the traditional Native American languages 
        used in their educational programs and with not less than 5 
        years successful experience in providing educational services 
        in traditional Native American languages.
          ``(5) Native language.--The term `native language', when used 
        with reference to an individual who is limited English 
        proficient, means the language normally used by such 
        individual.
          ``(6) Specially qualified agency.--The term `specially 
        qualified agency', when used with respect to a fiscal year, 
        means an eligible entity located in a State that, for that 
        year--
                  ``(A) does not submit to the Secretary an application 
                under sections 3105(a) and 3107; or
                  ``(B) submits an application (or any modification to 
                an application) that the Secretary, after reasonable 
                notice and opportunity for a hearing, determines does 
                not satisfy the requirements of subpart 1.
          ``(7) 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 3106(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 for individuals served by a school described 
                        in section 3106(a).

``SEC. 3132. RULES OF CONSTRUCTION.

  ``Nothing in subpart 1 shall be construed--
          ``(1) to prohibit a local educational agency from serving 
        limited English proficient children and youth simultaneously 
        with students 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 as defined in the Native American Languages Act of 
        1990.

``SEC. 3133. LIMITATION ON FEDERAL REGULATIONS.

  ``The Secretary shall issue regulations under this part only to the 
extent that such regulations are necessary to ensure compliance with 
the specific requirements of this part.

``SEC. 3134. LEGAL AUTHORITY UNDER STATE LAW.

  ``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. 3135. CIVIL RIGHTS.

  ``Nothing in this part shall be construed in a manner inconsistent 
with any Federal law guaranteeing a civil right.

``SEC. 3136. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

  ``Programs authorized under subpart 1 that serve Native American 
children, Native Pacific Island children, and children in the 
Commonwealth of Puerto Rico, notwithstanding any other provision of 
subpart 1, may include programs of instruction, teacher training, 
curriculum development, evaluation, and testing designed for Native 
American children learning and studying Native American languages and 
children of limited Spanish proficiency, except that a primary outcome 
of programs serving such children shall be increased English 
proficiency among such children.''.

SEC. 302. CONFORMING AMENDMENT TO DEPARTMENT OF EDUCATION ORGANIZATION 
                    ACT.

  (a) In General.--
          (1) Renaming of office.--The Department of Education 
        Organization Act is amended by striking ``Office of Bilingual 
        Education and Minority Languages Affairs'' each place such term 
        appears in the text and inserting ``Office of Educational 
        Services for Limited English Proficient Children''.
          (2) Conforming amendment.--Section 209 of the Department of 
        Education Organization Act is amended by striking ``Director of 
        Bilingual Education and Minority Languages Affairs,'' and 
        inserting ``Director of Educational Services for Limited 
        English Proficient Children,''.
  (b) Clerical Amendments.--
          (1) Section 209.--The section heading for section 209 of the 
        Department of Education Organization Act is amended to read as 
        follows:
    ``office of educational services for limited english proficient 
                              children''.
          (2) Section 216.--The section heading for section 216 of the 
        Department of Education Organization Act is amended to read as 
        follows:

``SEC. 216. OFFICE OF EDUCATIONAL SERVICES FOR LIMITED ENGLISH 
                    PROFICIENT CHILDREN.''.

          (3) Table of contents.--
                  (A) Section 209.--The table of contents of the 
                Department of Education Organization Act is amended by 
                amending the item relating to section 209 to read as 
                follows:

``Sec. 209. Office of Educational Services for Limited English 
Proficient Children.''.

                  (B) Section 216.--The table of contents of the 
                Department of Education Organization Act is amended by 
                amending the item relating to section 216 to read as 
                follows:

``Sec. 216. Office of Educational Services for Limited English 
Proficient Children.''.

               PART B--INDIAN AND ALASKA NATIVE EDUCATION

SEC. 311. ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.

  (a) In General.--Title III (as amended by section 301 of this Act) is 
further amended by adding at the end the following new part:

              ``PART B--INDIAN AND ALASKA NATIVE EDUCATION

                     ``Subpart 1--Indian Education

``SEC. 3201. FINDINGS.

  ``Congress finds that--
          ``(1) the Federal Government has a special responsibility to 
        ensure that educational programs for all American Indian and 
        Alaska Native children and adults--
                  ``(A) are based on high-quality, internationally 
                competitive academic content standards and student 
                academic achievement standards and build on Indian 
                culture and the Indian community;
                  ``(B) assist local educational agencies, Indian 
                tribes, and other entities and individuals in providing 
                Indian students the opportunity to achieve such 
                standards; and
                  ``(C) meet the unique educational and culturally 
                related academic needs of American Indian and Alaska 
                Native students;
          ``(2) since the date of the enactment of the initial Indian 
        Education Act in 1972, the level of involvement of Indian 
        parents in the planning, development, and implementation of 
        educational programs that affect such parents and their 
        children has increased significantly, and schools should 
        continue to foster such involvement;
          ``(3) although the number of Indian teachers, administrators, 
        and university professors has increased since 1972, teacher 
        training programs are not recruiting, training, or retraining a 
        sufficient number of Indian individuals as educators to meet 
        the needs of a growing Indian student population in elementary, 
        secondary, vocational, adult, and higher education;
          ``(4) the dropout rate for Indian students is unacceptably 
        high; 9 percent of Indian students who were eighth graders in 
        1988 had dropped out of school by 1990;
          ``(5) during the period from 1980 to 1990, the percentage of 
        Indian individuals living at or below the poverty level 
        increased from 24 percent to 31 percent, and the readiness of 
        Indian children to learn is hampered by the high incidence of 
        poverty, unemployment, and health problems among Indian 
        children and their families; and
          ``(6) research related specifically to the education of 
        Indian children and adults is very limited, and much of the 
        research is of poor quality or is focused on limited local or 
        regional issues.

``SEC. 3202. PURPOSE.

  ``(a) Purpose.--It is the purpose of this subpart 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 Indians 
and Alaska Natives, so that such students can achieve to the same 
challenging State academic achievement standards expected of all other 
students.
  ``(b) Programs.--this subpart 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;
          ``(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.

       ``CHAPTER 1--FORMULA GRANTS TO LOCAL EDUCATIONAL AGENCIES

``SEC. 3211. PURPOSE.

  ``It is the purpose of this chapter to support local educational 
agencies in their efforts to reform elementary and secondary school 
programs that serve Indian students in order to ensure that such 
programs--
          ``(1) are based on challenging State academic content 
        standards and State student academic achievement standards that 
        are used for all students; and
          ``(2) are designed to assist Indian students in meeting those 
        standards and assist the Nation in reaching the National 
        Education Goals.

``SEC. 3212. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  ``(a) In General.--
          ``(1) Enrollment requirements.--A local educational agency 
        shall be eligible for a grant under this chapter for any fiscal 
        year if the number of Indian children eligible under section 
        3217 and 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.
  ``(b) Indian Tribes.--
          ``(1) In general.--If a local educational agency that is 
        eligible for a grant under this chapter does not establish a 
        parent committee under section 3214(c)(4) for such grant, an 
        Indian tribe that represents not less than one-half 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 chapter, except that any such tribe is not subject to 
        section 3214(c)(4), section 3218(c), or section 3219.

``SEC. 3213. 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 which has an approved application under this 
        chapter an amount equal to the product of--
                  ``(A) the number of Indian children who are eligible 
                under section 3217 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 in the United States.
          ``(2) Reduction.--The Secretary shall reduce the amount of 
        each allocation determined under paragraph (1) in accordance 
        with subsection (e).
  ``(b) Minimum Grant.--
          ``(1) In general.--Notwithstanding subsection (e), a local 
        educational agency or an Indian tribe (as authorized under 
        section 3212(b)) that is eligible for a grant under section 
        3212, 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 chapter 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 
        chapter.
          ``(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 of 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) 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
                  ``(ii) 80 percent of the average per pupil 
                expenditure in the United States.
          ``(2) Any school described in paragraph (1)(A) that wishes to 
        receive an allocation under this chapter shall submit an 
        application in accordance with section 3214, and shall 
        otherwise be treated as a local educational agency for the 
        purpose of this chapter, except that such school shall not be 
        subject to section 3214(c)(4), section 3218(c), or section 
        3219.
  ``(e) Ratable Reductions.--If the sums appropriated for any fiscal 
year under section 3252(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. 3214. APPLICATIONS.

  ``(a) Application Required.--Each local educational agency that 
desires to receive a grant under this chapter 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 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) provides programs and activities to meet the culturally 
        related academic needs of American Indian and Alaska Native 
        students;
          ``(2)(A) is consistent with State and local plans under other 
        provisions of this Act; and
          ``(B) includes academic content and student performance goals 
        for such children, and benchmarks for attaining such goals, 
        that are based on the challenging State standards under title 
        I;
          ``(3) explains how Federal, State, and local programs, 
        especially under title I, will meet the needs of such students;
          ``(4) demonstrates how funds made available under this 
        chapter will be used for activities described in section 3215;
          ``(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 chapter 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 
                chapter, in meeting the goals described in paragraph 
                (2);
                  ``(B) will provide the results of each assessment 
                referred to in subparagraph (A) to--
                          ``(i) the committee of parents 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 chapter only to supplement the level of funds that, 
        in the absence of the Federal funds made available under this 
        chapter, such agency would make available for the education of 
        Indian children, and not to supplant such funds;
          ``(2) the local educational agency will submit such reports 
        to the Secretary, in such form and containing such information, 
        as the Secretary may require to--
                  ``(A) carry out the functions of the Secretary under 
                this chapter; and
                  ``(B) determine the extent to which funds provided to 
                the local educational agency under this chapter 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 to 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 public hearings held by 
                such agency to provide 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 and teachers; and
                          ``(ii) if appropriate, Indian students 
                        attending secondary schools;
                  ``(B) a majority of whose members are parents of 
                Indian children;
                  ``(C) that sets 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;
                  ``(D) with respect to an application describing a 
                schoolwide program in accordance with section 3215(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 Alaskan 
                        Native students; and
                  ``(E) that has adopted reasonable bylaws for the 
                conduct of the activities of the committee and abides 
                by such bylaws.

``SEC. 3215. AUTHORIZED SERVICES AND ACTIVITIES.

  ``(a) General Requirements.--Each local educational agency that 
receives a grant under this chapter shall use the grant funds, in a 
manner consistent with the purpose specified in section 3211, 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 3214(b);
          ``(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 standards and 
        State 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, 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 meet the purposes 
        described in section 3211; and
          ``(8) family literacy services.
  ``(c) Schoolwide Programs.--Notwithstanding any other provision of 
law, a local educational agency may use funds made available to such 
agency under this chapter to support a schoolwide program under section 
1114 if--
          ``(1) the committee composed of parents established pursuant 
        to section 3214(c)(4) approves the use of the funds for the 
        schoolwide program; and
          ``(2) the schoolwide program is consistent with the purposes 
        described in section 3211.
  ``(d) Limitation on Administrative Costs.--Not more than 5 percent of 
the funds provided to a grantee under this chapter for any fiscal year 
may be used for administrative purposes.

``SEC. 3216. INTEGRATION OF SERVICES AUTHORIZED.

  ``(a) Plan.--An entity receiving funds under this chapter may submit 
a plan to the Secretary for the integration of education and related 
services provided to Indian students.
  ``(b) Coordination of Programs.--Upon the receipt of an acceptable 
plan, the Secretary, in cooperation with each Federal agency providing 
grants for the provision of education and related services to the 
applicant, shall authorize the applicant to coordinate, in accordance 
with such plan, its federally funded education and related services 
programs, or portions thereof, 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 (b) 
shall include funds for any Federal program exclusively serving Indian 
children or the funds reserved under any program to exclusively serve 
Indian children under which the applicant is eligible for receipt of 
funds under a statutory or administrative formula for the purposes of 
providing education and related services which would be used to serve 
Indian students.
  ``(d) Plan Requirements.--For a plan to be acceptable pursuant to 
subsection (b), it shall--
          ``(1) identify the programs or funding sources to be 
        consolidated;
          ``(2) be consistent with the purposes of this section 
        authorizing the services to be integrated in a demonstration 
        project;
          ``(3) describe a comprehensive strategy which identifies the 
        full range of potential educational opportunities and related 
        services to be provided to assist Indian students to achieve 
        the goals set forth in this chapter;
          ``(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 local, State, or tribal agency or agencies 
        to be involved in the delivery of the services integrated under 
        the plan;
          ``(7) identify any statutory provisions, regulations, 
        policies, or procedures that the applicant believes need to be 
        waived in order to implement its plan;
          ``(8) set forth measures of student achievement and 
        performance goals designed to be met within a specified period 
        of time; and
          ``(9) be approved by a parent committee formed in accordance 
        with section 3214(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 applicant to implement its plan. Notwithstanding any other 
provision of law, the Secretary of the affected department or 
departments shall have the authority to waive any regulation, policy, 
or procedure promulgated by that department that has been so identified 
by the applicant or department, unless the Secretary of the affected 
department determines that such a waiver is inconsistent with the 
intent of this chapter or those provisions of the statute from which 
the program involved derives its authority which are specifically 
applicable to Indian students.
  ``(f) Plan Approval.--Within 90 days after the receipt of an 
applicant's plan by the Secretary, the Secretary shall inform the 
applicant, in writing, of the Secretary's approval or disapproval of 
the plan. If the plan is disapproved, the applicant shall be informed, 
in writing, of the reasons for the disapproval and shall be given an 
opportunity to amend its plan or to petition the Secretary to 
reconsider such disapproval.
  ``(g) Responsibilities of Department of Education.--Not later than 
180 days after the date of the 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 program under this section shall be--
          ``(1) the Secretary of the Interior, in the case of applicant 
        meeting the definition of 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 
        applicant.
  ``(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 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, 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 the 
demonstration of student 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 which 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 purposes of this section.
  ``(l) Administration of Funds.--
          ``(1) In general.--Program funds shall be administered in 
        such a manner as to allow for a determination that funds from 
        specific a program or programs are spent on allowable 
        activities authorized under such program, except that the 
        eligible entity shall determine the proportion of the funds 
        granted which 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 its approved plan to the individual programs under which 
        funds were authorized, nor shall the eligible entity be 
        required to allocate expenditures among such individual 
        programs.
  ``(m) Overage.--All administrative costs may be commingled and 
participating entities shall be entitled to the full amount of such 
costs (under each program or department's regulations), and no overage 
shall be counted for Federal audit purposes, provided that the overage 
is used for the purposes provided for under this section.
  ``(n) Fiscal Accountability.--Nothing in this subpart 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 the Single Audit Act of 1984.
  ``(o) Report on Statutory Obstacles to Program Integration.--
          ``(1) Preliminary report.--Not later than 2 years after the 
        date of the enactment of the No Child Left Behind Act of 2001, 
        the Secretary of Education shall submit a preliminary 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 on the status of the implementation of 
        the demonstration program authorized under this section.
          ``(2) Final report.--Not later than 5 years after the date of 
        the enactment of the No Child Left Behind Act of 2001, the 
        Secretary of Education shall submit a 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 on the results of the implementation of the 
        demonstration program 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 purposes 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 applicant 
        meeting the definition of 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 
        applicant.

``SEC. 3217. STUDENT ELIGIBILITY FORMS.

  ``(a) In General.--The Secretary shall require that, as part of an 
application for a grant under this chapter, 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 chapter and that 
otherwise meets the requirements of subsection (b).
  ``(b) Forms.--
          ``(1) In general.--The form described in subsection (a) shall 
        include--
                  ``(A) either--
                          ``(i)(I) the name of the tribe or band of 
                        Indians (as described in section 3251(3)) 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
                          ``(ii) if the child is not a member of a 
                        tribe or band of Indians, the name, the 
                        enrollment number (if readily available), and 
                        the organization (and address thereof) 
                        responsible for maintaining updated and 
                        accurate membership rolls of the tribe of any 
                        parent or grandparent of the child from whom 
                        the child claims eligibility;
                  ``(B) a statement of whether the tribe or band of 
                Indians with respect to which the child, parent, or 
                grandparent of the child claims membership is federally 
                recognized;
                  ``(C) the name and address of the parent or legal 
                guardian of the child;
                  ``(D) a signature of the parent or legal guardian of 
                the child that verifies the accuracy of the information 
                supplied; and
                  ``(E) any other information that the Secretary 
                considers necessary to provide an accurate program 
                profile.
          ``(2) Minimum information.--In order for a child to be 
        eligible to be counted for the purpose of computing the amount 
        of a grant award made under section 3213, an eligibility form 
        prepared pursuant to this section for a child shall include--
                  ``(A) the name of the child;
                  ``(B) the name of the tribe or band of Indians (as 
                described in section 3251(3)) with respect to which the 
                child claims eligibility; and
                  ``(C) the dated signature of the parent or guardian 
                of the child.
          ``(3) Failure.--The failure of an applicant to furnish any 
        information described in this subsection other than the 
        information described in paragraph (2) with respect to any 
        child shall have no bearing on the determination of whether the 
        child is an eligible Indian child for the purposes of 
        determining the amount of a grant award made under section 
        3213.
  ``(c) Statutory Construction.--Nothing in this section shall be 
construed to affect a definition contained in section 3251.
  ``(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 1985-1986 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 such eligibility; 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 under section 3213, the membership of the child, or any parent or 
grandparent of the child, in a tribe or band of Indians 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) 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 chapter, the Secretary shall conduct a monitoring 
        and evaluation review of a sampling of the recipients of grants 
        under this chapter. The sampling conducted under this 
        subparagraph shall take into account the size of the local 
        educational agency and the geographic location of such agency.
          ``(B) 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 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 chapter shall--
                  ``(A) be ineligible to apply for any other grant 
                under this subpart; and
                  ``(B) be liable to the United States for any funds 
                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 3213.
  ``(g) Tribal Grant and Contract Schools.--Notwithstanding any other 
provision of this section, in awarding funds under this chapter 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:
          ``(1) A count of the number of students in those 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 chapter (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, so long as that date or period occurs before the 
        deadline established by the Secretary for submitting an 
        application under section 3214; 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. 3218. 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 chapter the amount 
determined under section 3213. 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 chapter 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 3213 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 any fiscal year, 
        the Secretary determines that a local educational agency failed 
        to maintain the fiscal effort of 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 chapter in 
                the exact proportion of such agency's failure to 
                maintain its fiscal effort at such level; and
                  ``(B) not use the reduced amount of the agency's 
                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) The Secretary may waive the requirement of 
        paragraph (1), 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) The Secretary shall not use the reduced amount of such 
        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 
chapter, 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 chapter; or
          ``(2) otherwise become available for reallocation under this 
        chapter.

``SEC. 3219. STATE EDUCATIONAL AGENCY REVIEW.

  ``Before submitting an application to the Secretary under section 
3214, 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, it 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.

   ``CHAPTER 2--SPECIAL PROGRAMS AND PROJECTS TO IMPROVE EDUCATIONAL 
                   OPPORTUNITIES FOR INDIAN CHILDREN

``SEC. 3221. 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 such actions as 
        are necessary to achieve the coordination of activities 
        assisted under this chapter with--
                  ``(A) other programs funded under this Act; and
                  ``(B) other Federal programs operated for the benefit 
                of American Indian and Alaska Native children.
  ``(b) Eligible Entities.--For the purpose of this section, the term 
`eligible entity' means a State educational agency, local educational 
agency, Indian tribe, Indian organization, federally supported 
elementary and secondary school for Indian students, Indian 
institution, including an Indian institution of higher education, or a 
consortium of such institutions.
  ``(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 specified in subsection 
        (a)(1), 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 unique 
                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 secondary school graduation;
                  ``(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 school 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; or
                  ``(L) other services that meet the purpose described 
                in subsection (a)(1).
          ``(2) Professional development.--Professional development of 
        teaching professionals and paraprofessional may be a part of 
        any program assisted under this section.
  ``(d) Grant Requirements and Applications.--
          ``(1) Grant requirements.--(A) The Secretary may make 
        multiyear grants under this section for the planning, 
        development, pilot operation, or demonstration of any activity 
        described in subsection (c) for a period not to exceed 5 years.
          ``(B) In making multiyear grants under this section, the 
        Secretary shall give priority to 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) The Secretary shall make a grant payment 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 (2) and any subsequent modifications to such 
        application.
          ``(D)(i) In addition to awarding the multiyear grants 
        described in subparagraph (A), the Secretary may award grants 
        to eligible entities for the dissemination of exemplary 
        materials or programs assisted under this section.
          ``(ii) The Secretary may award a dissemination grant under 
        this subparagraph if, prior to awarding the grant, the 
        Secretary determines that the material or program to be 
        disseminated has been adequately reviewed and has 
        demonstrated--
                  ``(I) educational merit; and
                  ``(II) the ability to be replicated.
          ``(2) Application.--(A) 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 require.
          ``(B) Each application submitted to the Secretary under 
        subparagraph (A), other than an application for a dissemination 
        grant under paragraph (1)(D), 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 is either a research-based program (which may 
                be a research-based program that has been modified to 
                be culturally appropriate for the students who will be 
                served);
                  ``(iv) a description of how the applicant will 
                incorporate the proposed services into the ongoing 
                school program once the grant period is over; and
                  ``(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 chapter for any fiscal year may be 
used for administrative purposes.

``SEC. 3222. 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 or local educational agency, in consortium with 
        an institution of higher education; and
          ``(3) an Indian tribe or organization, in consortium with an 
        institution of higher education.
  ``(c) Program Authorized.--The Secretary is authorized to award 
grants to eligible entities having applications approved under this 
section to enable such entities to carry out the activities described 
in subsection (d).
  ``(d) Authorized Activities.--
          ``(1) In general.--Grant funds under this section shall be 
        used to provide support and training for Indian individuals in 
        a manner consistent with the purposes of this section. Such 
        activities may include but are not limited to, continuing 
        programs, symposia, workshops, conferences, and direct 
        financial support.
          ``(2) Special rules.--(A) For education personnel, the 
        training received pursuant to a grant under this section may be 
        inservice or preservice training.
          ``(B) 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 making grants under this section, the 
Secretary--
          ``(1) shall consider the prior performance of the eligible 
        entity; and
          ``(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 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 the compliance of 
        such recipient with the work requirement under paragraph (1).

               ``CHAPTER 3--NATIONAL RESEARCH ACTIVITIES

``SEC. 3231. NATIONAL ACTIVITIES.

  ``(a) Authorized Activities.--The Secretary may use funds made 
available under section 3252(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 subpart.
  ``(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 assure 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 by the Office of Indian 
        Education Programs and the Office of Educational Research and 
        Improvement.

                  ``CHAPTER 4--FEDERAL ADMINISTRATION

``SEC. 3241. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

  ``(a) Membership.--There 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--
          ``(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 subpart--
                  ``(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) submit to the Congress, not later than June 30 of each 
        year, a report on the activities of the Council, 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. 3242. PEER REVIEW.

  ``The Secretary may use a peer review process to review applications 
submitted to the Secretary under chapter 2 or 3.

``SEC. 3243. PREFERENCE FOR INDIAN APPLICANTS.

  ``In making grants under chapter 2 or 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.

``SEC. 3244. MINIMUM GRANT CRITERIA.

  ``The Secretary may not approve an application for a grant under 
subpart 2 unless the application is for a grant that is--
          ``(1) of sufficient size, scope, and quality to achieve the 
        purpose or objectives of such grant; and
          ``(2) based on relevant research findings.

       ``CHAPTER 5--DEFINITIONS; AUTHORIZATIONS OF APPROPRIATIONS

``SEC. 3251. DEFINITIONS.

  ``For the purposes of this subpart:
          ``(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
                  ``(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 it was in effect the day preceding the date of the 
                enactment of the Improving America's Schools Act of 
                1994.

``SEC. 3252. AUTHORIZATIONS OF APPROPRIATIONS.

  ``(a) Chapter 1.--For the purpose of carrying out chapter 1 of this 
subpart, there are authorized to be appropriated $100,000,000 for 
fiscal year 2002, and such sums as may be necessary for each of fiscal 
years 2003 through 2006.
  ``(b) Chapters 2 and 3.--For the purpose of carrying out chapters 2 
and 3 of this subpart, there are authorized to be appropriated 
$25,000,000 for fiscal year 2002, and such sums as may be necessary for 
each of the fiscal years 2003 through 2006.''.
  (b) Savings Provision.--Funds appropriated for part A of title IX of 
the Elementary and Secondary Education Act of 1965 (as in effect on the 
day before the date of the enactment of this Act) shall be available 
for use under subpart 1 of part B of title III of such Act, as added by 
this section.

SEC. 312. ALASKA NATIVE EDUCATION.

  (a) In General.--Part B of title III (as added by section 311 of this 
Act) is further amended by adding at the end the following new subpart:

                  ``Subpart 2--Alaska Native Education

``SEC. 3301. SHORT TITLE.

  ``This subpart may be cited as the `Alaska Native Educational Equity, 
Support, and Assistance Act'.

``SEC. 3302. FINDINGS.

  ``The Congress finds and declares:
          ``(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. In addition to low Native 
        performance on standardized tests, 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 herein, 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 and 
        village Alaska should be addressed through the development and 
        implementation of innovative, model programs in a variety of 
        areas.
          ``(7) Congress finds that 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. 3303. PURPOSE.

  ``It is the purpose of this subpart to--
          ``(1) recognize the unique educational needs of Alaska 
        Natives;
          ``(2) authorize the development of supplemental educational 
        programs to benefit Alaska Natives;
          ``(3) supplement existing programs and authorities in the 
        area of education to further the purposes of this subpart; and
          ``(4) provide direction and guidance to appropriate Federal, 
        State and local agencies to focus resources, including 
        resources made available under this subpart, on meeting the 
        educational needs of Alaska Natives.

``SEC. 3304. PROGRAM AUTHORIZED.

  ``(a) General Authority.--
          ``(1) Program authorized.--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, and consortia 
        of such organizations and entities to carry out programs that 
        meet the purpose of this subpart.
          ``(2) Permissible activities.--Programs under this subpart 
        may include--
                  ``(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--
                          ``(i) curriculum materials that reflect the 
                        cultural diversity or the contributions of 
                        Alaska Natives;
                          ``(ii) instructional programs that make use 
                        of Native Alaskan languages; and
                          ``(iii) networks that introduce successful 
                        programs, materials, and techniques to urban 
                        and rural schools;
                  ``(C) professional development activities for 
                educators, including--
                          ``(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; and
                          ``(iii) recruiting and preparing teachers who 
                        are Alaska Natives, 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;
                  ``(D) the development and operation of home 
                instruction programs for Alaska Native preschool 
                children, the purpose of which is 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 high school, to excel in science and 
                        math; and
                          ``(ii) provide appropriate support services 
                        to the families of such students that are 
                        needed to enable such students to benefit from 
                        the program;
                  ``(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 under this subpart; and
                  ``(I) other activities, consistent with the purposes 
                of this subpart, to meet the educational needs of 
                Alaska Native children and adults.
          ``(3) Home instruction programs.--Home instruction programs 
        for Alaska Native preschool children under paragraph (2)(D) may 
        include--
                  ``(A) programs for parents and their infants, from 
                prenatal through age three;
                  ``(B) preschool programs; and
                  ``(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) Authorization of Appropriations.--There are authorized to be 
appropriated $15,000,000 for fiscal year 2002, and such sums as may be 
necessary for each of the fiscal years 2003 through 2006 to carry out 
this subpart.

``SEC. 3305. ADMINISTRATIVE PROVISIONS.

  ``(a) Application Required.--No grant may be made under this subpart, 
nor any contract be entered into under this subpart, unless an 
application is submitted 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 subpart.
  ``(b) Applications.--State and local educational agencies may apply 
for an award under this subpart only as subpart of a consortium 
involving an Alaska Native organization. This consortium may include 
other eligible applicants.
  ``(c) Consultation Required.--Each applicant for funding 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 subpart shall inform each local educational agency 
serving students who would participate in the project about its 
application.

``SEC. 3306. DEFINITIONS.

  ``For purposes of this subpart--
          ``(1) the term `Alaska Native' has the same meaning as the 
        term `Native' has in section 3(b) of the Alaska Native Claims 
        Settlement Act; and
          ``(2) the term `Alaska Native organization' means a federally 
        recognized tribe, consortium of tribes, regional nonprofit 
        Native association, and other Alaska Native organizations 
        that--
                  ``(A) has or commits to acquire expertise in the 
                education of Alaska Natives; and
                  ``(B) has Alaska Natives in substantive and policy-
                making positions within the organization.''.
  (b) Savings Provision.--Funds appropriated for part C of title IX of 
the Elementary and Secondary Education Act of 1965 (as in effect on the 
day before the date of the enactment of this Act) shall be available 
for use under subpart 2 of part B of title III of such Act, as added by 
this section.

SEC. 313. 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. FINDING AND POLICY.

  ``(a) Finding.--Congress finds and recognizes 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.
  ``(b) Policy.--It is the policy of the United States to work in full 
cooperation with Indian tribes toward the goal of assuring that the 
programs of the Bureau of Indian Affairs funded school system are of 
the highest quality and meet the unique educational and cultural needs 
of Indian children.

``SEC. 1121. ACCREDITATION AND STANDARDS FOR THE BASIC EDUCATION OF 
                    INDIAN CHILDREN IN BUREAU OF INDIAN AFFAIRS 
                    SCHOOLS.

  ``(a) Purpose.--The purpose of the standards implemented under this 
section shall be to afford Indian students being served by a school 
funded by the Bureau of Indian Affairs the same opportunities as all 
other students in the United States to achieve the same challenging 
State academic achievement standards expected of all students.
  ``(b) Studies and Surveys Relating to Standards.--Not later than 1 
year after the date of the enactment of the No Child Left Behind Act of 
2001, the Secretary, in consultation with the Secretary of Education, 
consortia of education organizations, and Indian organizations and 
tribes, and making the fullest use possible of other existing studies, 
surveys, and plans, shall carry out by contract with an Indian 
organization, studies and surveys to establish and revise standards for 
the basic education of Indian children attending Bureau funded schools. 
Such studies and surveys shall take into account factors such as 
academic needs, local cultural differences, type and level of language 
skills, geographic isolation, and appropriate teacher-student ratios 
for such children, and shall be directed toward the attainment of equal 
educational opportunity for such children.
  ``(c) Revision of Minimum Academic Standards.--
          ``(1) In general.--Not later than 2 years after the date of 
        the enactment of the No Child Left Behind Act of 2001, the 
        Secretary shall--
                  ``(A) propose revisions to the minimum academic 
                standards published in the Federal Register on 
                September 9, 1995 (50 Fed. Reg. 174) for the basic 
                education of Indian children attending Bureau funded 
                schools in accordance with the purpose described in 
                subsection (a) and the findings of the studies and 
                surveys conducted under subsection (b);
                  ``(B) publish such proposed revisions to such 
                standards in the Federal Register for the purpose of 
                receiving comments from the tribes, tribal school 
                boards, Bureau funded schools, and other interested 
                parties; and
                  ``(C) consistent with the provisions of this section 
                and section 1131, take such actions as are necessary to 
                coordinate standards implemented under this section 
                with the Comprehensive School Reform Plan developed by 
                the Bureau and--
                          ``(i) with the standards of the improvement 
                        plans for the States in which any school 
                        operated by the Bureau of Indian Affairs is 
                        located; or
                          ``(ii) in the case where schools operated by 
                        the Bureau are within the boundaries of 
                        reservation land of one tribe but within the 
                        boundaries of more than one State, with the 
                        standards of the State improvement plan of one 
                        such State selected by the tribe.
          ``(2) Further revisions.--Not later that 6 months after the 
        close of the comment period, the Secretary shall establish 
        final standards, distribute such standards to all tribes and 
        publish such final standards in the Federal Register. The 
        Secretary shall revise such standards periodically as 
        necessary. Prior to any revision of such final standards, the 
        Secretary shall distribute such proposed revision to all the 
        tribes, and publish such proposed revision in the Federal 
        Register, for the purpose of receiving comments from the tribes 
        and other interested parties.
          ``(3) Applicability of standards.--Except as provided in 
        subsection (e), the final standards published under paragraph 
        (2) shall apply to all Bureau funded schools not accredited 
        under subsection (f), and may also serve as a model for 
        educational programs for Indian children in public schools.
          ``(4) Considerations when establishing and revising 
        standards.--In establishing and revising such standards, the 
        Secretary shall take into account the unique needs of Indian 
        students and support and reinforcement of the specific cultural 
        heritage of each tribe.
  ``(d) Alternative or Modified Standards.--The Secretary shall provide 
alternative or modified standards in lieu of the standards established 
under subsection (c), where necessary, so that the programs of each 
school are in compliance with the minimum accreditation standards 
required for schools in the State or region where the school is 
located.
  ``(e) Waiver of Standards; Alternative Standards.--A tribal governing 
body, or the local school board so designated by the tribal governing 
body, shall have the local authority to waive, in part or in whole, the 
standards established under subsections (c) and (d) if such standards 
are deemed by such body to be inappropriate. The tribal governing body 
or designated school board shall, not later than 60 days after a waiver 
under this subsection, submit to the Secretary 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 Secretary unless specifically rejected by the Secretary for good 
cause and in writing to the affected tribes or local school board, 
which rejection shall be final and not subject to review.
  ``(f) Accreditation and Implementation of Standards.--
          ``(1) Deadline for meeting standards.--Not later the second 
        academic year after publication of the standards, to the extent 
        necessary funding is provided, all Bureau funded schools shall 
        meet the standards established under subsections (c) and (d) or 
        shall be accredited--
                  ``(A) 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 are equal to or exceed the 
                accreditation standards of the State or region in which 
                the school is located;
                  ``(B) by a regional accreditation agency; or
                  ``(C) by State accreditation standards for the State 
                in which it is located.
          ``(2) Determination of standards to be applied.--The 
        accreditation type or standards applied for each school shall 
        be determined by the school board of the school, in 
        consultation with the Administrator of the school, provided 
        that in the case where the School Board and the Administrator 
        fail to agree on the type of accreditation and standards to 
        apply, the decision of the school board with the approval of 
        the tribal governing body shall be final.
          ``(3) Assistance to school boards.--The Secretary, through 
        contracts and grants, shall assist school boards of contract or 
        grant schools in implementation of the standards established 
        under subsections (c) and (d), if the school boards request 
        that such standards, in part or in whole, be implemented.
          ``(4) 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.
  ``(g) Annual Plan for Meeting of Standards.--Except as provided in 
subsections (e) and (f), the Secretary shall begin to implement the 
standards established under this section immediately upon the date of 
their establishment. 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 bring 
all Bureau schools and contract or grant schools up to the level 
required by the applicable standards established under this section. 
Such plan shall include detailed information on the status of each 
school's educational program in relation to the applicable standards 
established under this section, 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.
  ``(h) Closure or Consolidation of Schools.--
          ``(1) In general.--Except as specifically required by 
        statute, no school or peripheral dormitory operated by the 
        Bureau on or after January 1, 1992, may be closed or 
        consolidated or have its program substantially curtailed unless 
        done according to the requirements of this subsection.
          ``(2) Exceptions.--This subsection shall not apply--
                  ``(A) in those cases where the tribal governing body, 
                or the local school board concerned (if so designated 
                by the tribal governing body), requests closure or 
                consolidation; or
                  ``(B) when a temporary closure, consolidation, or 
                substantial curtailment is required by plant conditions 
                which 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.--Whenever 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 Interior, the affected 
        tribe, tribal governing body, and designated local school 
        board, will be notified immediately, kept fully and currently 
        informed, and afforded an opportunity to comment with respect 
        to such consideration or review. When 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 
        at least 6 months prior to the end of the school year preceding 
        the proposed closure date. Copies of any such notices and 
        information shall be transmitted promptly to the appropriate 
        committees of Congress and published in the Federal Register.
          ``(5) Report.--The Secretary shall make a report to the 
        appropriate committees of Congress, the affected tribe, and the 
        designated school board describing the process of the active 
        consideration or review referred to in paragraph (4). The 
        report shall include a study of the impact of such action on 
        the student population, identify those students with particular 
        educational and social needs, and ensure that alternative 
        services are available to such students. Such report shall 
        include the 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 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 of 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,
        only if the tribal governing body approves such action.
  ``(i) Application for Contracts or Grants for Non-Bureau Funded 
Schools or Expansion of Bureau Funded Schools.--
          ``(1) In general.--(A)(i) The Secretary shall only consider 
        the factors described in subparagraph (B) in reviewing--
                  ``(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) With respect to applications described in this 
        subparagraph, the Secretary shall give consideration to all the 
        factors described in subparagraph (B), but no such application 
        shall be denied based primarily upon the geographic proximity 
        of comparable public education.
          ``(B) 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 these services 
                for the proposed population to be served, as determined 
                from all factors, including but not limited to 
                standardized examination performance.
          ``(2) Determination on application.--(A) The Secretary shall 
        make a determination of whether to approve any application 
        described in paragraph (1)(A) not later than 180 days after 
        such application is submitted to the Secretary.
          ``(B) If the Secretary fails to make the determination with 
        respect to an application by the date described in subparagraph 
        (A), the application shall be treated a having been approved by 
        the Secretary.
          ``(3) Requirements for applications.--(A) Notwithstanding 
        paragraph (2)(B), an application described in paragraph (1)(A) 
        may be approved by the Secretary only if--
                  ``(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) Each application described in paragraph (1)(A) shall 
        provide information concerning each of the factors described in 
        paragraph (1)(B).
          ``(4) Denial of applications.--Whenever the Secretary makes a 
        determination to deny approval of any application described in 
        paragraph (1)(A), the Secretary shall--
                  ``(A) state the objections in writing to the 
                applicant not later 180 days after the application is 
                submitted to the Secretary;
                  ``(B) provide assistance to the applicant to overcome 
                stated objections; and
                  ``(C) provide the applicant a hearing, under the same 
                rules and regulations pertaining to the Indian Self-
                Determination and Education Assistance Act and an 
                opportunity to appeal the objections raised by the 
                Secretary.
          ``(5) Effective date of a subject application.--(A) Except as 
        otherwise provided in this paragraph, the action which is the 
        subject of any application described in paragraph (1)(A) that 
        is approved by the Secretary shall become effective at the 
        beginning of the academic year following the fiscal year in 
        which the application is approved, or at an earlier date 
        determined by the Secretary.
          ``(B) If an application is treated as having been approved by 
        the Secretary under paragraph (2)(B), the action that is the 
        subject of the application shall become effective on the date 
        that is 18 months after the date on which the application is 
        submitted to the Secretary, or at an earlier date determined by 
        the Secretary.
          ``(6) Statutory construction.--Nothing in this section shall 
        be read so as to preclude the expansion of grades and related 
        facilities at a Bureau funded school where such expansion and 
        the maintenance of such expansion is occasioned or paid for 
        with non-Bureau funds.
  ``(j) 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.
  ``(k) Study on Adequacy of Funds and Formulas.--The Comptroller 
General shall conduct a study, in consultation with Indian tribes and 
local school boards, 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, as well as expenditures for 
comparable purposes in public schools nationally. 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. NATIONAL CRITERIA FOR HOME-LIVING SITUATIONS.

  ``(a) 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. Such standards shall be 
implemented in Bureau operated schools, and shall serve as minimum 
standards for contract or grant schools. Once established, any 
revisions of such standards shall be developed according to the 
requirements established under section 1138A.
  ``(b) Implementation.--The Secretary shall implement the revised 
standards established under this section immediately upon their 
completion.
  ``(c) Plan.--At the time of each annual budget submission for Bureau 
educational services is presented, 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. Such 
plan shall include a statement of the relative needs of each Bureau 
funded home-living (dormitory) school, projected future needs of each 
Bureau funded home-living (dormitory) school, detailed information on 
the status of each school in relation to the standards established 
under this section, specific cost estimates for meeting each standard 
for each such school, aggregate cost estimates for bringing all such 
schools into compliance with the criteria established under this 
section, and specific timelines for bringing each school into 
compliance with such standards.
  ``(d) Waiver.--The criteria established under this section may be 
waived in the same manner as the standards provided under section 
1121(c) may be waived.
  ``(e) Closure for Failure To Meet Standards Prohibited.--No school in 
operation on or before January 1, 1987 (regardless of compliance or 
noncompliance with the criteria established under this section), may be 
closed, transferred to another authority, consolidated, or have its 
program substantially curtailed for failure to meet the criteria.

``SEC. 1123. CODIFICATION OF REGULATIONS.

  ``(a) Part 32 of Title 25 of Code of Federal Regulations.--The 
provisions of part 32 of title 25 of the 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) Regulation Defined.--For purposes of this part, the term 
`regulation' means any rules, regulations, guidelines, interpretations, 
orders, or requirements of general applicability prescribed by any 
officer or employee of the executive branch.

``SEC. 1124. SCHOOL BOUNDARIES.

  ``(a) Establishment 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, 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) In general.--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.
        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 
        cause such revisions to be published in the Federal Register.
          ``(2) Tribal resolution determination.--Nothing in this 
        section shall be interpreted as denying 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.--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. 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.--In any case where there is only one 
Bureau funded program located on an Indian reservation, 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 those students 
residing near the reservation shall also receive services from such 
program.
  ``(f) Off-Reservation Home-Living (Dormitory) Schools.--
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. Such attendance shall be 
coordinated between education line officers, the family, and the 
referring and receiving programs.

``SEC. 1125. FACILITIES CONSTRUCTION.

  ``(a) Compliance With Health and Safety Standards.--The Secretary 
shall immediately begin to bring all schools, dormitories, and other 
Indian education-related facilities operated by the Bureau or under 
contract or grant with the Bureau into compliance with 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), with section 504 of the Rehabilitation Act of 1973, 
and with the Americans with Disabilities Act of 1990. Nothing in this 
section shall require termination of the operations of any facility 
which does not comply with such provisions and which is in use on the 
date of the enactment of the No Child Left Behind Act of 2001.
  ``(b) 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) of this section into 
compliance with the standards referred to in subsection (a). Such plan 
shall include detailed information on the status of each facility's 
compliance with such standards, specific cost estimates for meeting 
such standards at each school, and specific timelines for bringing each 
school into compliance with such standards.
  ``(c) Construction Priorities.--
          ``(1) System 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. 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 (b), the 
        Secretary shall--
                  ``(A) not later than 18 months after the date of the 
                enactment of the No Child Left Behind 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) cause the list prepared under subsection (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
                  ``(E) cause the final list to be published in the 
                Federal Register.
          ``(3) Effect on other list.--Nothing in this section shall be 
        construed as interfering with or changing in any way the 
        construction priority list as it exists on the date of the 
        enactment of the No Child Left Behind Act of 2001.
  ``(d) Hazardous Condition at Bureau School.--
          ``(1) Closure or consolidation.--A Bureau funded school may 
        be closed or consolidated, and the programs of a Bureau funded 
        school may be substantially curtailed by reason of plant 
        conditions that constitute an immediate hazard to health and 
        safety only if a health and safety officer of the Bureau 
        determines that such conditions exist at the Bureau funded 
        school.
          ``(2) Inspection.--(A) After making a determination described 
        in paragraph (1), the Bureau health and safety officer shall 
        conduct an inspection of the condition of such plant 
        accompanied by an appropriate tribal, county, municipal, or 
        State health and safety officer in order to determine whether 
        conditions at such plant constitute an immediate hazard to 
        health and safety. Such inspection shall be completed by not 
        later than the date that is 30 days after the date on which the 
        action described in paragraph (1) is taken. No further negative 
        action may be taken unless the findings are concurred in by the 
        second, non-Bureau of Indian Affairs inspector.
          ``(B) If the health and safety officer conducting the 
        inspection of a plant required under subparagraph (A) 
        determines that conditions at the plant do not constitute an 
        immediate hazard to health and safety, any consolidation or 
        curtailment that was made under paragraph (1) shall immediately 
        cease and any school closed by reason of conditions at the 
        plant shall be reopened immediately.
          ``(C) If a Bureau funded school is temporarily closed or 
        consolidated or the programs of a Bureau funded school are 
        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 Congress, by 
        not later than 6 months after the date on which the closure, 
        consolidation, or curtailment was initiated, a report which 
        sets forth the reasons for such temporary actions, the actions 
        the Secretary is taking to eliminate the conditions that 
        constitute the hazard, and an estimated date by which such 
        actions will be concluded.
  ``(e) Funding Requirement.--
          ``(1) Distribution of funds.--Beginning with the fiscal year 
        following the year of the date of the enactment of the No Child 
        Left Behind Act of 2001, all funds appropriated for the 
        operations and maintenance of Bureau funded schools shall be 
        distributed by formula to the schools. No funds from this 
        account 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.
  ``(f) No Reduction in Federal Funding.--Nothing in this section shall 
be construed to 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. 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.--Not later 
than 6 months after the date of the enactment of the No Child Left 
Behind Act of 2001, the Director of the Office of Indian Education 
Programs shall direct and supervise the operations of all personnel 
directly and substantially involved in the provision of education 
services by the Bureau, including school or institution custodial or 
maintenance personnel, facilities management, contracting, procurement, 
and finance personnel. The Assistant Secretary for Indian Affairs shall 
coordinate the transfer of functions relating to procurement, 
contracts, operation, and maintenance of schools and other support 
functions to the Director.
  ``(c) 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 the first sentence of 
subsection (b) 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.
  ``(d) Construction, Improvement, Operation, and Maintenance of 
Facilities.--
          ``(1) Plan for construction.--The Assistant Secretary shall 
        submit in 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 
                five 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. In 
                        making such determination, the Assistant 
                        Secretary shall cause to be conducted a series 
                        of meetings at the agency and area level with 
                        representatives of the Bureau funded schools in 
                        those areas and 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.--The requirements of this subsection 
        shall be implemented as soon as practicable after the date of 
        the enactment of the No Child Left Behind Act of 2001.
  ``(e) Acceptance of Gifts and Bequests.--Notwithstanding any other 
provision of law, the Director shall promulgate guidelines for the 
establishment of mechanisms for the acceptance of gifts and bequests 
for the use and benefit of particular schools or designated Bureau 
operated education programs, including, where appropriate, the 
establishment and administration of trust funds. When a Bureau operated 
program is the beneficiary of such a gift or bequest, the Director 
shall make provisions for monitoring its use and shall report to the 
appropriate committees of Congress 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 action.
  ``(f) Functions Clarified.--For the purpose of this section, the term 
`functions' includes powers and duties.

``SEC. 1127. ALLOTMENT FORMULA.

  ``(a) Factors Considered; Revision To Reflect Standards.--
          ``(1) Formula.--The Secretary shall establish, by regulation 
        adopted in accordance with section 1138A, 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;
                          ``(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; 
                and
                  ``(D) such other relevant factors as the Secretary 
                determines are appropriate.
          ``(2) Revision of formula.--Upon the establishment of the 
        standards required in sections 1121 and 1122, the Secretary 
        shall revise the formula established under this subsection to 
        reflect the cost of funding such standards. 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. 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 
                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 yearlong 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.--Each school board shall see that 
                each new member of the school board receives, within 12 
                months of the individual's assuming a position on the 
                school board, 40 hours of training relevant to that 
                individual's service on the board. Such training may 
                include legal issues pertaining to schools funded by 
                the Bureau, legal issues pertaining to school boards, 
                ethics, and other topics deemed appropriate by the 
                school board.
  ``(d) Reservation of Amount for Emergencies.--The Secretary shall 
reserve from the funds available for distribution for each fiscal year 
under this section an amount which, in the aggregate, shall equal 1 
percent of the funds available for such purpose for that fiscal year. 
Such funds shall 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. Funds reserved under this subsection may only be expended 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). 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. Whenever, 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.--For the purpose of 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 an Indian tribe which is 
        eligible for the special programs and services provided by the 
        United States through the Bureau because of their status as 
        Indians; and
          ``(2) resides on or near an Indian reservation or meets the 
        criteria for attendance at a Bureau off-reservation home-living 
        (dormitory) school.
  ``(g) Tuition.--
          ``(1) In general.--An eligible Indian student may not be 
        charged tuition for attendance at a Bureau school or contract 
        or grant school. A student attending a Bureau school under 
        paragraph (2)(C) may not be charged tuition for attendance at 
        such a 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;
                  ``(C) the student is a dependent of a Bureau, Indian 
                Health Service, or tribal government employee who lives 
                on or near the schoolsite; or
                  ``(D) a tuition is paid for the student that is not 
                more than that 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 and 
        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 steps as may 
be necessary to implement this provision.
  ``(i) Students at Richfield Dormitory, Richfield, Utah.--Tuition for 
out-of-State Indian students in home-living (dormitory) arrangements at 
the Richfield dormitory in Richfield, Utah, who attend Sevier County 
high schools in Richfield, Utah, shall be paid from the Indian school 
equalization program funds authorized in this section and section 1130 
at a rate not to exceed the amounts per weighted student unit for that 
year for the instruction of such students. No additional administrative 
cost funds shall be added to the grant.

``SEC. 1128. ADMINISTRATIVE COST GRANTS.

  ``(a) Grants; Effect Upon Appropriated Amounts.--
          ``(1) Grants.--Subject to the availability of appropriated 
        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.
  ``(b) 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. The administrative 
        cost percentage rate determined under subsection (c) does not 
        apply to other programs operated by the tribe or tribal 
        organization.
          ``(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.
  ``(c) Administrative Cost Percentage Rate.--
          ``(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.
  ``(d) 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).
  ``(e) 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.
  ``(f) 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.
  ``(g) Treatment of Entity Operating Other Programs.--In applying this 
section and section 105 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,
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, 
provided 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.
  ``(h) Definitions.--For purposes of this section:
          ``(1) Administrative cost.--(A) The term `administrative 
        cost' means the costs 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) The term `administrative cost' may include--
                  ``(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) 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 two preceding 
                fiscal years, the first fiscal year preceding such 
                fiscal year.
          ``(B) 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 of programs 
        (excluding funds for social services that are appropriated to 
        agencies other than the Bureau and are expended 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.
  ``(i) Studies for Determination of Factors Affecting Costs; Base 
Rates Limits; Standard Direct Cost Base; Report to Congress.--
          ``(1) Studies.--Not later than 120 days after the date of the 
        enactment of the No Child Left Behind 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 (c) 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;
                  ``(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 substantially to affect the 
                administrative costs and efficiency of each such tribal 
                elementary or secondary educational program studied in 
                order to assure 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 
        such sums as necessary to carry out this section.
          ``(2) Reductions.--If the total amount of funds necessary to 
        provide grants to tribes and tribal organizations in the 
        amounts determined under subsection (b) 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 (b) for such 
        fiscal year by an amount that bears the same relationship to 
        such excess as the amount of such grants determined under 
        subsection (b) bears to the total of all grants determined 
        under subsection (b) 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 also apply 
to those schools operating under the Tribally Controlled Schools Act of 
1988.

``SEC. 1129. DIVISION OF BUDGET ANALYSIS.

  ``(a) Establishment.--Not later than 12 months after the date of the 
enactment of the No Child Left Behind Act of 2001, the Secretary shall 
establish within the Office of Indian Education Programs a Division of 
Budget Analysis (hereinafter 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 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 Reports.--Not later than the date that the Assistant 
Secretary for Indian Affairs makes the annual budget submission, for 
each fiscal year after the date of the enactment of the No Child Left 
Behind 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 which shall contain--
          ``(1) projections, based upon the information gathered 
        pursuant to subparagraph (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 their annual budget submissions.

``SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.

  ``(a) Establishment of System and Forward Funding.--
          ``(1) In general.--The Secretary shall establish, by 
        regulation adopted in accordance with section 1138, 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 under 
        this section may be made available under paragraph (2).
          ``(2) Timing for use of funds.--(A) For the purposes of 
        affording adequate notice of funding available pursuant to the 
        allotments made under section 1127, amounts appropriated in an 
        appropriations Act for any fiscal year shall become available 
        for obligation by the affected schools on July 1 of the fiscal 
        year in which such amounts are appropriated without further 
        action by the Secretary, and shall remain available for 
        obligation through the succeeding fiscal year.
          ``(B) The Secretary shall, on the basis of the amount 
        appropriated in accordance with this paragraph--
                  ``(i) publish, not later than July 1 of the fiscal 
                year for which the funds are appropriated, allotments 
                to each affected school made under section 1127 of 85 
                percent of such appropriation; and
                  ``(ii) publish, not later than September 30 of such 
                fiscal year, the allotments to be made under section 
                1127 of the remaining 15 percent of such appropriation, 
                adjusted to reflect the actual student attendance.
          ``(3) Limitation.--(A) Notwithstanding any other provision of 
        law or regulation, the supervisor of a Bureau funded school may 
        expend an aggregate of not more than $50,000 of the amount 
        allotted the school under section 1127 to acquire materials, 
        supplies, equipment, services, operation, and maintenance for 
        the school without competitive bidding if--
                  ``(i) the cost for any single item purchased does not 
                exceed $15,000;
                  ``(ii) the school board approves the procurement;
                  ``(iii) the supervisor certifies that the cost is 
                fair and reasonable;
                  ``(iv) the documents relating to the procurement 
                executed by the supervisor or other school staff cite 
                this paragraph as authority for the procurement; and
                  ``(v) the transaction is documented in a journal 
                maintained at the school clearly identifying when the 
                transaction occurred, what was acquired and from whom, 
                the price paid, the quantities acquired, and any other 
                information the supervisor or school board considers 
                relevant.
          ``(B) Not later than 6 months after the date of the enactment 
        of the No Child Left Behind Act of 2001, the Secretary shall 
        cause to be sent to each supervisor of a Bureau operated 
        program and school board chairperson, the education line 
        officer or officers of each agency and area, and the Bureau 
        Division in charge of procurement, at both the local and 
        national levels, notice of this paragraph.
          ``(C) The Director shall be responsible for determining the 
        application of this paragraph, including the authorization of 
        specific individuals to carry out this paragraph, and shall be 
        responsible for 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 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 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.--In the case of all Bureau operated 
        schools, allotted funds shall be expended on the basis of local 
        financial plans which ensure meeting the accreditation 
        requirements or standards for the school established pursuant 
        to section 1121 and which shall be prepared by the local school 
        supervisor in active consultation with the local school board 
        for each school. The local school board for each school shall 
        have the authority to ratify, reject, or amend such financial 
        plan, and expenditures thereunder, and, on its own 
        determination 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.
          ``(2) The supervisor--
                  ``(A) shall put into effect the decisions of the 
                school board;
                  ``(B) shall provide the appropriate local union 
                representative of the education employees with copies 
                of proposed draft financial plans and all amendments or 
                modifications thereto, at the same time such copies are 
                submitted 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. 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 appropriate education line 
                officer may, for good cause, overturn the action of the 
                local school board. 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) Use of Self-Determination Grants Funds.--Funds for self-
determination grants under section 103(a)(2) of the Indian Self-
Determination and Education Assistance Act shall not be used for 
providing technical assistance and training in the field of education 
by the Bureau unless such services are provided in accordance with a 
plan, agreed to by the tribe or tribes affected and the Bureau, under 
which control of education programs is intended to be transferred to 
such tribe or tribes within a specific period of time negotiated under 
such agreement. The Secretary may approve applications for funding 
tribal divisions of education and development of tribal codes of 
education from funds appropriated pursuant to section 104(a) of such 
Act.
  ``(d) Technical Assistance and Training.--In the exercise of its 
authority under this section, a local school board may request 
technical assistance and training from the Secretary, and the Secretary 
shall, to the greatest extent possible, provide such services, and make 
appropriate provisions in the budget of the Office for such services.
  ``(e) Summer Program of Academic and Support Services.--
          ``(1) 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. Any such program may include activities 
        related to the prevention of alcohol and substance abuse. The 
        Assistant Secretary for Indian Affairs shall provide for the 
        utilization of any such school facility during any summer in 
        which such utilization 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 provide technical assistance and 
        coordination for any program described in paragraph (1) and 
        shall, to the extent possible, 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) In general.--From funds allotted to a Bureau school 
        under section 1127, the Secretary shall, if specifically 
        requested by the tribal governing body (as defined in section 
        1141), implement any cooperative agreement entered into between 
        the tribe, the Bureau school board, and the local public school 
        district which meets the requirements of paragraph (2) and 
        involves the school. The tribe, the Bureau school board, and 
        the local public school district shall determine the terms of 
        the agreement. Such agreement may encompass coordination of all 
        or any part of the following:
                  ``(A) Academic program and curriculum, unless the 
                Bureau school is currently accredited by a State or 
                regional accrediting entity and would not continue to 
                be so accredited.
                  ``(B) Support services, including procurement and 
                facilities maintenance.
                  ``(C) Transportation.
          ``(2) Equal benefit and burden.--Each agreement entered into 
        pursuant to the authority provided in paragraph (1) shall 
        confer a benefit upon the Bureau school commensurate with the 
        burden assumed, though this requirement shall not be construed 
        so as to require equal expenditures or an exchange of similar 
        services.
  ``(g) Product or Result of Student Projects.--Notwithstanding any 
other provision of law, where 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) Not Considered Federal Funds for Matching Requirements.--
Notwithstanding any other provision of law, funds received by a Bureau 
funded school under this part shall not be considered Federal funds for 
the purposes of meeting a matching funds requirement for any Federal 
program.

``SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.

  ``(a) Facilitation of Indian Control.--It shall be the policy of the 
Secretary and the Bureau, in carrying out the functions of the Bureau, 
to facilitate tribal 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.
          ``(2) Requirements.--The consultation required under 
        paragraph (1) 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. During such discussions and joint deliberations, 
        interested parties (including tribes and school officials) 
        shall be given an opportunity to present issues including 
        proposals regarding changes in current practices or programs 
        which will be considered for future action by the Bureau. All 
        interested parties shall be given an opportunity 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. 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.

``SEC. 1132. 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) Regulations.--Not later than 60 days after the date of the 
enactment of the No Child Left Behind Act of 2001, the Secretary shall 
prescribe regulations to carry out this section. Such regulations shall 
include--
          ``(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; and
          ``(11) such matters as may be appropriate.
  ``(c) Qualifications of Educators.--
          ``(1) Requirements.--In prescribing regulations to govern the 
        qualifications of educators, the Secretary shall require--
                  ``(A)(i) that 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; and
                  ``(ii) that a list of qualified and interviewed 
                applicants for education positions be maintained in the 
                Office from among individuals who have applied at the 
                national level for an education position and who have 
                expressed interest in working in an education position 
                anywhere in the United States;
                  ``(B) that 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 supervisor; and
                  ``(C) that it shall not be a prerequisite to the 
                employment of an individual in an education position at 
                the local level that such individual's name appear on 
                the national list maintained pursuant to subparagraph 
                (A)(ii) or that such individual has 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) that educators employed in a Bureau operated 
                school (other than the supervisor of the school) shall 
                be hired by the supervisor of the school. In cases 
                where there are no qualified applicants available, such 
                supervisor may consult the national list maintained 
                pursuant to subsection (c)(1)(A)(ii);
                  ``(ii) each school supervisor shall be hired by the 
                education line officer of the agency office of the 
                Bureau in which the school is located;
                  ``(iii) educators 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 educators 
                employed in the Office of the Director of Indian 
                Education Programs shall be hired by the Director;
                  ``(B) that before an individual is employed in an 
                education position in a school by the supervisor of a 
                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. A 
                determination by such school board 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 agency superintendent for 
                education);
                  ``(C) that before an individual may be employed in an 
                education position at the agency level, the appropriate 
                agency school board shall be consulted, and that a 
                determination by such school board that such individual 
                should or should not be employed shall be instituted by 
                the agency superintendent for education; and
                  ``(D) that before an individual may be employed in an 
                education position in the Office of the Director (other 
                than the position of Director), the national school 
                boards representing all Bureau schools shall be 
                consulted.
          ``(2) Information regarding application at national level.--
        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. 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 
        the first sentence of this paragraph. 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. 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.
  ``(e) Discharge and Conditions of Employment of Educators.--
          ``(1) Regulations.--In prescribing regulations to govern the 
        discharge and conditions of employment of educators, the 
        Secretary shall require--
                  ``(A) that procedures be established for the rapid 
                and equitable resolution of grievances of educators;
                  ``(B) that no educator may be discharged without 
                notice of the reasons therefore and opportunity for a 
                hearing under procedures that comport with the 
                requirements of due process; and
                  ``(C) that educators employed in Bureau schools be 
                notified 30 days prior to the end of the school year 
                whether their employment contract will be renewed for 
                the following year.
          ``(2) Procedures for discharge.--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. Upon giving notice of proposed discharge to an 
        educator, the supervisor involved shall immediately notify the 
        local school board for the school of such action. A 
        determination by the local school board that such educator 
        shall not be discharged shall be followed by the supervisor. 
        The supervisor shall have the right to appeal such action to 
        the education line officer of the appropriate agency office of 
        the Bureau. Upon such an appeal, the agency education line 
        officer may, for good cause and in writing to the local school 
        board, overturn the determination of the local school board 
        with respect to the employment of such individual.
          ``(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 of such school 
                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.--
          ``(1) In general.--Notwithstanding any provision of the 
        Indian preference laws, such laws shall not apply in the case 
        of any personnel action under this section respecting an 
        applicant or employee not entitled to Indian preference if each 
        tribal organization concerned grants a written waiver of the 
        application of such laws with respect to such personnel action 
        and states that such waiver is necessary. This paragraph shall 
        not relieve the Bureau's responsibility 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) Tribal organization defined.--For purposes of this 
        subsection, the term `tribal organization' means--
                  ``(A) 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
                  ``(B) in connection with any personnel action 
                referred to in this subsection, any local school board 
                as defined in section 1141 which has been delegated by 
                such governing body the authority to grant a waiver 
                under this subsection with respect to personnel action.
          ``(3) Indian preference law defined.--The term `Indian 
        preference laws' means section 12 of the Act of June 18, 1934, 
        or any other provision of law granting a preference to Indians 
        in promotions and other personnel actions. Such term shall not 
        include section 7(b) of the Indian Self-Determination and 
        Education Assistance Act.
  ``(g) Compensation or Annual Salary.--
          ``(1) In general.--(A) Except as otherwise provided in this 
        section, the Secretary shall fix the basic compensation for 
        educators and education positions 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 on 
        the basis of the Federal Wage System schedule in effect for the 
        locality, and for the comparable positions, the rates of 
        compensation in effect for the senior executive service.
          ``(B) The Secretary shall establish the rate of basic 
        compensation, or annual salary rates, for the positions of 
        teachers and counselors (including dormitory counselors and 
        home-living counselors) at the rates of basic compensation 
        applicable (on the date of the enactment of the No Child Left 
        Behind Act of 2001 and thereafter) to comparable positions in 
        the overseas schools under the Defense Department Overseas 
        Teachers Pay Act. The Secretary shall allow the local school 
        boards authority to implement only the aspects of the Defense 
        Department Overseas Teacher pay provisions that are considered 
        essential for recruitment and retention. Implementation of such 
        provisions shall not be construed to require the implementation 
        of the Act in its entirety.
          ``(C)(i) Beginning with the fiscal year following the date of 
        the enactment of the No Child Left Behind Act of 2001, each 
        school board may set the rate of compensation or annual salary 
        rate for teachers and counselors (including academic 
        counselors) who are new hires at the school and who have not 
        worked at the school on the date of implementation of this 
        provision, at rates consistent with the rates paid for 
        individuals in the same positions, with the same tenure and 
        training, in any other school within whose boundaries the 
        Bureau school lies. In instances where the adoption of such 
        rates cause a reduction in the payment of compensation from 
        that which was in effect for the fiscal year following the date 
        of the enactment of the No Child Left Behind Act of 2001, the 
        new rate may be applied to the compensation of employees of the 
        school who worked at the school on of the date of the enactment 
        of that Act by applying those rates to each contract renewal 
        such that the reduction takes effect in three equal 
        installments. Where adoption of such rates lead to an increase 
        in the payment of compensation from that which was in effect 
        for the fiscal year following the date of the enactment of the 
        No Child Left Behind Act of 2001, the school board may make 
        such rates applicable at the next contract renewal such that 
        either--
                  ``(I) the increase occurs in its entirety; or
                  ``(II) the increase is applied in three equal 
                installments.
          ``(ii) The establishment of rates of basic compensation and 
        annual salary rates under subparagraphs (B) and (C) shall not 
        preclude the use of regulations and procedures used by the 
        Bureau prior to April 28, 1988, in making determinations 
        regarding promotions and advancements through levels of pay 
        that are based on the merit, education, experience, or tenure 
        of the educator.
          ``(D) The establishment of rates of basic compensation and 
        annual salary rates under subparagraphs (B) and (C) shall not 
        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) is in 
        effect on January 1, 1990.
          ``(2) Post-differential rates.--(A) The Secretary may pay a 
        post-differential rate not to exceed 25 percent of the rate of 
        basic compensation, on the basis of conditions of environment 
        or work which warrant additional pay as a recruitment and 
        retention incentive.
          ``(B)(i) Upon 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-differentials under subparagraph (A) unless the Secretary 
        determines for clear and convincing reasons (and advises the 
        board in writing of those reasons) that certain of the 
        requested post-differentials should be disapproved or decreased 
        because there is no disparity of compensation for the involved 
        employees or positions in the Bureau school, as compared with 
        the nearest public school, that is either--
                  ``(I) at least 5 percent; or
                  ``(II) less than 5 percent and affects the 
                recruitment or retention of employees at the school.
          ``(ii) A request under clause (i) shall be deemed granted 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 modification, or disapproved 
        by the Secretary.
          ``(iii) The Secretary or the supervisor of a Bureau school 
        may discontinue or decrease a post-differential authorized 
        under this subparagraph at the beginning of a school year if--
                  ``(I) the local school board requests that such 
                differential be discontinued or decreased; or
                  ``(II) the Secretary or the supervisor 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.
          ``(iv) On or before February 1 of each year, the Secretary 
        shall submit to Congress a report describing the requests and 
        grants of authority under this subparagraph during the previous 
        year and listing the positions contracted under those grants of 
        authority.
  ``(h) Liquidation of Remaining Leave Upon Termination.--Upon 
termination of employment with the Bureau, any annual leave remaining 
to the credit of an individual within the purview of 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 prescribed pursuant to subsection (b)(10) of this section 
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 prescribed 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 prescribed 
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.--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. Nothing in this part shall be construed to require 
Federal employees to work without compensation or to allow the use of 
volunteer services to displace or replace Federal employees. 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.--
          ``(1) Election of employee.--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. 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. 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) Definitions.--For purposes of this subsection, the 
        terms `educator' and `education position' have the meanings 
        contained in paragraphs (1) and (2) of subsection (o). This 
        subsection applies to those individuals employed under the 
        provisions of section 1132 of this title or title 5, United 
        States Code.
  ``(n) Extracurricular Activities.--
          ``(1) Stipend.--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. 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. 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, whether employed under section 1132 of 
        this title or title 5, United States Code.
  ``(o) Definitions.--For the purpose of this section--
          ``(1) Education position.--The term `education position' 
        means a position in the Bureau the duties and responsibilities 
        of which--
                  ``(A) are performed on a school-year basis 
                principally in a Bureau school and involve--
                          ``(i) classroom or other instruction or the 
                        supervision or direction of classroom or other 
                        instruction;
                          ``(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.

``SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.

  ``(a) Establishment of System.--Not later than July 1, 2003, the 
Secretary shall establish within the Office, a computerized management 
information system, which shall provide processing and information to 
the Office. The information provided shall include information 
regarding--
          ``(1) student enrollment;
          ``(2) curriculum;
          ``(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 discreet 
        elements;
          ``(8) relevant reports;
          ``(9) personnel records;
          ``(10) finance and payroll; and
          ``(11) such other items as the Secretary deems appropriate.
  ``(b) Implementation of System.--Not later than July 1, 2004, the 
Secretary shall complete implementation of such a system at each field 
office and Bureau funded school.

``SEC. 1134. UNIFORM EDUCATION PROCEDURES AND PRACTICES.

  ``The Secretary shall cause the various divisions of the Bureau to 
formulate uniform procedures and practices with respect to such 
concerns of those divisions as relate to education, and shall report 
such practices and procedures to the Congress.

``SEC. 1135. 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.

``SEC. 1136. BIENNIAL REPORT; AUDITS.

  ``(a) Biennial 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 biennial report on 
the state of education within the Bureau and any problems encountered 
in Indian education during the 2-year period covered by the report. 
Such report shall contain suggestions for the improvement of the Bureau 
educational system and for increasing tribal or local Indian control of 
such system. Such report shall also include the current status of 
tribally controlled community colleges. The annual budget submission 
for the Bureau's education programs shall include--
          ``(1) information on the funds provided to previously private 
        schools under section 208 of the Indian Self-Determination and 
        Education Assistance Act, and recommendations with respect to 
        the future use of such funds;
          ``(2) the needs and costs of operations and maintenance of 
        tribally controlled community colleges eligible for assistance 
        under the Tribally Controlled Community College Assistance Act 
        of 1978 and recommendations with respect to meeting such needs 
        and costs; and
          ``(3) the plans required by sections 1121 (g), 1122(c), and 
        1125(b).
  ``(b) Financial and Compliance Audits.--The Inspector General of the 
Department of the Interior shall establish a system to ensure that 
financial and compliance audits are conducted of each Bureau operated 
school at least once in every 3 years. Audits of Bureau schools shall 
be based upon the extent to which such school has complied with its 
local financial plan under section 1130.

``SEC. 1137. RIGHTS OF INDIAN STUDENTS.

  ``The 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' 
right to privacy under the laws of the United States, such students' 
right to freedom of religion and expression, and such students' right 
to due process in connection with disciplinary actions, suspensions, 
and expulsions.

``SEC. 1138. REGULATIONS.

  ``(a) In General.--The Secretary is authorized to issue only such 
regulations as are necessary to ensure compliance with the specific 
provision of this Act. The Secretary shall publish proposed regulations 
in the Federal Register, shall provide a period of not less than 90 
days for public comment thereon, and shall place in parentheses after 
each regulatory section the citation to any statutory provision 
providing authority to promulgate such regulatory provision.
  ``(b) Miscellaneous.--
          ``(1) Construction.--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 the enactment of this Act and the Secretary is authorized to 
        repeal any regulation inconsistent with the provisions of this 
        Act.
          ``(2) Legal authority to be stated.--Regulations issued to 
        implement this Act shall contain, immediately following each 
        substantive provision of such regulations, citations to the 
        particular section or sections of statutory law or other legal 
        authority upon which provision is based.

``SEC. 1138A. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

  ``(a) Meetings.--
          ``(1) In general.--The Secretary shall obtain tribal 
        involvement in the development of proposed regulations under 
        this part and the Tribally Controlled Schools Act of 1988. The 
        Secretary shall obtain the advice of and recommendations from 
        representatives of Indian tribes with Bureau funded schools on 
        their reservations, Indian tribes whose children attend Bureau 
        funded off-reservation boarding schools, school boards, 
        administrators or employees of Bureau funded schools, and 
        parents and teachers of students enrolled in Bureau funded 
        schools.
          ``(2) Issues.--The Secretary shall provide for a 
        comprehensive discussion and exchange of information concerning 
        the implementation of this part and the Tribally Controlled 
        Schools Act of 1988 through such mechanisms as regional 
        meetings and electronic exchanges of information. The Secretary 
        shall take into account the information received through such 
        mechanisms in the development of proposed regulations and shall 
        publish a summary of such information in the Federal Register 
        together with such proposed regulations.
  ``(b) Draft Regulations.--
          ``(1) In general.--After obtaining the advice and 
        recommendations described in subsection (a)(1) and before 
        publishing proposed regulations in the Federal Register, the 
        Secretary shall prepare draft regulations implementing this 
        part and the Tribally Controlled Schools Act of 1988 and shall 
        submit such regulations to a negotiated rulemaking process. 
        Participants in the negotiations process shall be chosen by the 
        Secretary from individuals nominated by the entities described 
        in subsection (a)(1). To the maximum extent possible, the 
        Secretary shall ensure that the tribal representative 
        membership chosen pursuant to the preceding sentence reflects 
        the proportionate share of students from tribes served by the 
        Bureau funded school system. The negotiation process shall be 
        conducted in a timely manner in order that the final 
        regulations may issued by the Secretary no later than 18 months 
        after the enactment of this section.
          ``(2) Notification to congress.--If draft regulations 
        implementing this part and the Tribally Controlled Schools Act 
        of 1988 are not issued in final form by the deadline provided 
        in paragraph (1), the Secretary shall notify the appropriate 
        committees of Congress of which draft regulations were not 
        issued in final form by the deadline and the reason such final 
        regulations were not issued.
          ``(3) Expansion of negotiated rulemaking.--All regulations 
        pertaining to this part and the Tribally Controlled Schools Act 
        of 1988 that are promulgated after the date of the enactment of 
        this subsection shall be subject to a negotiated rulemaking 
        (including the selection of the regulations to be negotiated), 
        unless the Secretary determines that applying such a 
        requirement with respect to given regulations is impracticable, 
        unnecessary, or contrary to the public interest (within the 
        meaning of section 553(b)(3)(B) of title 5), and publishes the 
        basis for such determination in the Federal Register at the 
        same time as the proposed regulations in question are first 
        published. All published proposed regulations shall conform to 
        agreements resulting from such negotiated rulemaking unless the 
        Secretary reopens the negotiated rulemaking process or provides 
        a written explanation to the participants in that process why 
        the Secretary has decided to depart from such agreements. Such 
        negotiated rulemaking shall be conducted in accordance with the 
        provisions of subsection (a), and the Secretary shall ensure 
        that a clear and reliable record of agreements reached during 
        the negotiation process is maintained.
  ``(c) Applicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act shall apply to activities carried out under this 
section.

``SEC. 1139. 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
                  ``(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 consortia of tribes and 
        tribal organizations only if the tribe, organization, or 
        consortia 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.--For the purpose of carrying 
out the provisions of this section, there are authorized to be 
appropriated $10,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the fiscal years 2003, 2004, 2005, and 2006.

``SEC. 1140. TRIBAL DEPARTMENTS OR DIVISIONS OF EDUCATION.

  ``(a) In General.--Subject to the availability of appropriations, the 
Secretary shall provide grants and technical assistance to tribes for 
the development and operation of tribal departments of education for 
the purpose of planning and coordinating all educational programs of 
the tribe.
  ``(b) Grants.--Grants provided under this section shall--
          ``(1) be based on applications from the governing body of the 
        tribe;
          ``(2) reflect factors such as geographic and population 
        diversity;
          ``(3) facilitate tribal control in all matters relating to 
        the education of Indian children on Indian reservations (and on 
        former Indian reservations in Oklahoma);
          ``(4) provide for the development of coordinated educational 
        programs on Indian reservations (and on former Indian 
        reservations in Oklahoma) (including all preschool, elementary, 
        secondary, and higher or vocational educational programs funded 
        by tribal, Federal, or other sources) by encouraging tribal 
        administrative support of all Bureau funded educational 
        programs as well as encouraging tribal cooperation and 
        coordination with all educational programs receiving financial 
        support from State agencies, other Federal agencies, or private 
        entities;
          ``(5) 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; and
          ``(6) otherwise comply with regulations for grants under 
        section 103(a) of the Indian Self-Determination and Educational 
        Assistance Act that are in effect on the date that application 
        for such grants are made.
  ``(c) Priorities.--
          ``(1) In general.--In making grants under this section, the 
        Secretary shall give priority to any application that--
                  ``(A) includes assurances from the majority of Bureau 
                funded schools located within the boundaries of the 
                reservation of 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, including the submission to 
                each applicable agency of a unified application for 
                funding for all of such schools which provides that--
                          ``(i) no administrative costs other than 
                        those attributable to the individual programs 
                        of such schools will be associated with the 
                        unified application; and
                          ``(ii) the distribution of all funds received 
                        under the unified application will be equal to 
                        the amount of funds provided by the applicable 
                        agency to which each of such schools is 
                        entitled under law;
                  ``(B) includes assurances from the tribal governing 
                body that the tribal department of education funded 
                under this section will administer all contracts or 
                grants (except those covered by the other provisions of 
                this title and the Tribally Controlled Community 
                College Assistance Act of 1978) for education programs 
                administered by the tribe and will coordinate all of 
                the programs to the greatest extent possible;
                  ``(C) includes assurances for the monitoring and 
                auditing by or through the tribal department of 
                education of all education programs for which funds are 
                provided by contract or grant to ensure that the 
                programs meet the requirements of law; and
                  ``(D) provides a plan and schedule for--
                          ``(i) the assumption over the term of the 
                        grant by the tribal department of education of 
                        all assets and functions of the Bureau agency 
                        office associated with the tribe, insofar as 
                        those responsibilities relate to education; and
                          ``(ii) the termination by the Bureau of such 
                        operations and office at the time of such 
                        assumption,
                except that when mutually agreeable between 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.
          ``(2) Time period of grant.--Subject to the availability of 
        appropriated funds, grants provided under this section shall be 
        provided for a period of 3 years and the grant may, if 
        performance by the grantee is satisfactory to the Secretary, be 
        renewed for additional 3-year terms.
  ``(d) Terms, Conditions, or Requirements.--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.
  ``(e) Authorization of Appropriations.--For the purpose of carrying 
out the provisions of this section, there are authorized to be 
appropriated $2,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the fiscal years 2003, 2004, 2005, and 2006.

``SEC. 1141. DEFINITIONS.

  ``For the purposes of this part, unless otherwise specified:
          ``(1) Agency school board.--The term `agency school board' 
        means a body, 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 the 
        number of such members shall be 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) Contract or grant school.--The term `contract or grant 
        school' means an elementary or secondary school or dormitory 
        which 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.
          ``(6) Education line officer.--The term `education line 
        officer' means education personnel under the supervision of the 
        Director, whether located in the central, area, or agency 
        offices.
          ``(7) 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).
          ``(8) Financial plan.--The term `financial plan' means a plan 
        of services provided by each Bureau school.
          ``(9) 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.
          ``(10) 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, 
        independent, or other school district located within a State, 
        and includes any State agency which directly operates and 
        maintains facilities for providing free public education.
          ``(11) 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 in schools serving a 
        substantial number of students from different tribes, the 
        members shall be appointed by the governing bodies of the 
        tribes affected, and the number of such members shall be 
        determined by the Secretary in consultation with the affected 
        tribes.
          ``(12) Office.--The term `Office' means the Office of Indian 
        Education Programs within the Bureau.
          ``(13) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
          ``(14) Supervisor.--The term `supervisor' means the 
        individual in the position of ultimate authority at a Bureau 
        school.
          ``(15) 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.
          ``(16) Tribe.--The term `tribe' means any Indian tribe, band, 
        nation, or other organized group or community, including any 
        Alaska Native village or regional 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. 314. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.

  Sections 5202 through 5212 of the Tribally Controlled Schools Act of 
1988 (25 U.S.C. 2501 et seq.) are amended to read as follows:

``SEC. 5202. FINDINGS.

  ``Congress, after careful review of the Federal Government's 
historical and special legal relationship with, and resulting 
responsibilities to, Indians, finds that--
          ``(1) 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 towards tribal and community 
        control;
          ``(2) the Bureau of Indian Affairs' administration and 
        domination of the contracting process under such Act has not 
        provided the full opportunity to develop leadership skills 
        crucial to the realization of self-government and has denied 
        Indians an effective voice in the planning and implementation 
        of programs for the benefit of Indians which are responsive to 
        the true needs of Indian communities;
          ``(3) Indians will never surrender their desire to control 
        their relationships both among themselves and with non-Indian 
        governments, organizations, and persons;
          ``(4) true self-determination in any society of people is 
        dependent upon an educational process which will ensure the 
        development of qualified people to fulfill meaningful 
        leadership roles;
          ``(5) the Federal administration of education for Indian 
        children has not effected the desired level of educational 
        achievement or created the diverse opportunities and personal 
        satisfaction that education can and should provide;
          ``(6) true local control requires the least possible Federal 
        interference; and
          ``(7) the time has come to enhance the concepts made manifest 
        in the Indian Self-Determination and Education Assistance Act.

``SEC. 5203. DECLARATION OF POLICY.

  ``(a) Recognition.--Congress recognizes the obligation of the United 
States to respond to the strong expression of the Indian people for 
self-determination by assuring maximum Indian participation in the 
direction of educational services so as to render such services more 
responsive to the needs and desires of those 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 through the 
establishment of a meaningful Indian self-determination policy for 
education which will deter further perpetuation of Federal bureaucratic 
domination of programs.
  ``(c) National Goal.--Congress declares that a major national goal of 
the United States is to provide the resources, processes, and structure 
which will enable tribes and local communities to effect the quantity 
and quality of educational services and opportunities which will permit 
Indian children to compete and excel in the life areas of their choice 
and to achieve the measure of self-determination essential to their 
social and economic well-being.
  ``(d) Educational Needs.--Congress affirms the reality of the special 
and unique educational needs of Indian peoples, including the need for 
programs to meet the linguistic and cultural aspirations of Indian 
tribes and communities. These may best be met through a grant process.
  ``(e) Federal Relations.--Congress declares its commitment to these 
policies and its support, to the full extent of its responsibility, for 
Federal relations with the Indian Nations.
  ``(f) Termination.--Congress hereby repudiates and rejects House 
Resolution 108 of the 83d Congress and any policy of unilateral 
termination of Federal relations with any Indian Nation.

``SEC. 5204. 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 as 
                contract school;
                  ``(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) 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, but not limited to, 
        expenditures for--
                  ``(i) school operations, academic, educational, 
                residential, guidance and counseling, and 
                administrative purposes; and
                  ``(ii) support services for the school, including 
                transportation.
          ``(B) 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 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 Schoolsites.--
          ``(1) In general.--In the case of a grantee that operates 
        schools at more than one schoolsite, the grantee may expend not 
        more than the lesser of--
                  ``(A) 10 percent of the funds allocated for such 
                schoolsite under section 1128 of the Education 
                Amendments of 1978; or
                  ``(B) $400,000 of such funds, at any other 
                schoolsite.
          ``(2) Definition of schoolsite.--For purposes of this 
        subsection, the term `schoolsite' 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 as 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 as a Bureau operated school or as a school operated 
        under contract under title XI of the Education Amendments of 
        1978.
          ``(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. 5205. 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) 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;
                  ``(ii) the Individuals with Disabilities Education 
                Act; or
                  ``(iii) any Federal education law other than title XI 
                of the Education Amendments of 1978.
          ``(B) 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(d), 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) 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 under section 5204(a), the grantee shall 
        maintain a separate account for such funds. At the end of the 
        period designated for the work covered by the funds received, 
        the grantee shall submit to the Secretary a separate accounting 
        of the work done and the funds expended to the Secretary. Funds 
        received from these accounts may only be used for the purpose 
        for which they were appropriated and for the work encompassed 
        by the application or submission under which they were 
        received.
          ``(B) 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 
        government or other organization provides funding for the new 
        construction equal to at least 25 percent of the total cost of 
        such new construction.
          ``(C) Where the appropriations measure or the application 
        submission does not stipulate a period for the work covered by 
        the funds so designated, the Secretary and the grantee 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 grantee.
          ``(5) Enforcement of request to include funds.--If the 
        Secretary fails to carry out a request made under subsection 
        (a)(2) within 180 days of a request filed by an Indian tribe or 
        tribal organization to include in such tribe or organization's 
        grant the funds described in subsection (a)(2), the Secretary 
        shall be deemed to have approved such request and the Secretary 
        shall immediately amend the grant accordingly. Such tribe or 
        organization may enforce its rights under subsection (a)(2) and 
        this paragraph, including any denial or failure to act on such 
        tribe or organization's request, pursuant to the disputes 
        authority described in section 5209(e).

``SEC. 5206. ELIGIBILITY FOR GRANTS.

  ``(a) Rules.--
          ``(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 the enactment of the No Child Left Behind 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 the enactment of the No Child Left Behind 
        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) 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.
          ``(B) 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) 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) 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) 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; and
                  ``(ii) with respect to all education services already 
                available--
                          ``(I) geographic and demographic factors in 
                        the affected areas;
                          ``(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) The Secretary may not make a determination 
                under this paragraph that is primarily based upon the 
                geographic proximity of comparable public education.
                  ``(D) 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) 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;
                  ``(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. 5207. 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 5206, 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) an annual submission to the Secretary of the 
                number of students served and a brief description of 
                programs offered under the grant; and
                  ``(D) 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.--
                  ``(A) To tribally governing body.--Upon completion of 
                the report required under paragraph (a), 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) To secretary.--Not later than 30 days after 
                receiving written confirmation that the tribal 
                governing body has received the report send pursuant to 
                subsection (A), the recipient of the grant shall send a 
                copy of the report to the Secretary.
  ``(c) Revocation of Eligibility.--
          ``(1) In general.--(A) The Secretary shall not revoke a 
        determination that a school is eligible for assistance under 
        this part if--
                  ``(i) the Indian tribe or tribal organization submits 
                the reports required under subsection (b) with respect 
                to the school; and
                  ``(ii) at least one of the following subclauses 
                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) A determination made by the Secretary 
                        that there is a reasonable expectation that the 
                        accreditation described in subclause (I), or 
                        the candidacy in good standing for such 
                        accreditation, will be reached by the school 
                        within 3 years and that the program offered by 
                        the school is beneficial to the Indian 
                        students.
                          ``(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) The schools accept the standards 
                        promulgated under section 1121 of the Education 
                        Amendments of 1978 and an evaluation of 
                        performance is conducted under this section in 
                        conformance with the regulations pertaining to 
                        Bureau operated schools by an impartial 
                        evaluator chosen by the grantee, but no grantee 
                        shall be required to comply with these 
                        standards to a higher degree than a comparable 
                        Bureau operated school.
                          ``(V) A positive evaluation of the school is 
                        conducted by an impartial evaluator agreed upon 
                        by the Secretary and the grantee every 2 years 
                        under standards adopted by the contractor under 
                        a contract for a school entered into under the 
                        Indian Self-Determination and Education 
                        Assistance Act (or revisions of such standards 
                        agreed to by the Secretary and the grantee) 
                        prior to the date of the enactment of this Act. 
                        If the Secretary and the grantee other than the 
                        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 grantee which is the 
                        tribal governing body fail to agree on such an 
                        evaluator, this subclause shall not apply.
          ``(B) The choice of standards employed for the purpose of 
        subparagraph (A)(ii) shall be consistent with section 1121(e) 
        of the Education Amendments of 1978.
          ``(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(14) 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 as is practicable to effect such remedial 
        actions. Such notice and technical assistance shall be in 
        addition to a hearing and appeal to be conducted pursuant to 
        the regulations described in section 5206(f)(1)(C).
  ``(d) Applicability of Section Pursuant to Election Under Section 
5209(b).--With respect to a tribally controlled school which receives 
assistance under this part pursuant to an election made under section 
5209(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. 5208. 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 15 of each year in an amount equal to 85 percent 
                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) 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.
          ``(3) 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.
          ``(4) 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), 
        (2), and (3).
          ``(5) Restrictions.--Paragraphs (1), (2), and (3) 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
                  ``(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. 5209. 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(e) (relating to limitation on remedies 
        relating to cost allowances).
          ``(9) Section 106(i) (relating to use of funds for matching 
        or cost participation requirements).
          ``(10) Section 106(j) (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 upon the date of the enactment of the No Child Left 
        Behind 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 later of--
                  ``(A) October 1 of the fiscal year succeeding the 
                fiscal year in which such election is made; or
                  ``(B) 60 days after the date of such election.
          ``(3) Exception.--In any case in which the 60-day period 
        referred to in paragraph (2)(B) is less than 60 days before the 
        beginning of the succeeding fiscal year, such election shall 
        not take effect until the fiscal year after the fiscal year 
        succeeding the election.
  ``(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 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.
  ``(e) Exceptions, Problems, and Disputes.--Any exception or problem 
cited in an audit conducted pursuant to section 5207(b)(2), 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 of 1975. 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. 5210. 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. 5211. REGULATIONS.

  ``The Secretary is authorized to issue regulations relating to the 
discharge of duties specifically assigned to the Secretary by this 
part. In all other matters relating to the details of planning, 
development, implementing, and evaluating grants under this part, the 
Secretary shall not issue regulations. Regulations issued pursuant to 
this part shall not have the standing of a Federal statute for the 
purposes of judicial review.

``SEC. 5212. THE TRIBALLY CONTROLLED GRANT SCHOOL ENDOWMENT PROGRAM.

  ``(a) In General.--
          ``(1) Trust funds.--Each school receiving grants under this 
        part may establish, at a Federally insured banking and savings 
        institution, a trust fund for the purposes of this section.
          ``(2) Authority of schools regarding trust funds.--The school 
        may provide--
                  ``(A) for the deposit into the trust fund, only funds 
                from non-Federal sources, except that the interest on 
                funds received from grants under this part may be used 
                for this purpose;
                  ``(B) for the deposit in the account of any earnings 
                on funds deposited in the account; and
                  ``(C) for the sole use of the school any noncash, in-
                kind contributions of real or personal property, such 
                property may at any time be converted to cash.
  ``(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.

``SEC. 5213. DEFINITIONS.

  ``For the purposes of 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 of such term in section 1127(f) of the 
        Education Amendments of 1978.
          ``(3) Indian tribe.--The term `Indian tribe' means any Indian 
        tribe, band, nation, or other organized group or community, 
        including Alaska Native Village or regional corporations (as 
        defined in or established pursuant to the Alaskan 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.
          ``(4) 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 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 its public elementary or secondary schools. Such 
        term includes any other public institution or agency having 
        administrative control and direction of a public elementary or 
        secondary school.
          ``(5) Secretary.--The term `Secretary' means the Secretary of 
        the Interior.
          ``(6) Tribal organization.--(A) The term `tribal 
        organization' means--
                  ``(i) the recognized governing body of any Indian 
                tribe; or
                  ``(ii) any legally established organization of 
                Indians which--
                          ``(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 its activities.
          ``(B) In any case in which a grant is provided under this 
        part to an organization to provide services benefiting more 
        than one Indian tribe, the approval of the governing bodies of 
        Indian tribes representing 80 percent of those students 
        attending the tribally controlled school shall be considered a 
        sufficient tribal authorization for such grant.
          ``(7) Tribally controlled school.--The term `tribally 
        controlled school' means a school operated by a tribe or a 
        tribal organization, enrolling students in kindergarten through 
        grade 12, including preschools, which is not a local 
        educational agency and which is not directly administered by 
        the Bureau of Indian Affairs.''.

  TITLE IV--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                      PART A--INNOVATIVE PROGRAMS

SEC. 401. INNOVATIVE PROGRAMS.

  Title IV is amended to read as follows:

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

                     ``PART A--INNOVATIVE PROGRAMS

            ``Subpart 1--State and Local Innovative Programs

``SEC. 4101. FINDINGS AND STATEMENT OF PURPOSE.

  ``(a) Findings.--Congress finds that this subpart--
          ``(1) provides flexibility to meet local needs;
          ``(2) promotes local and State education reforms;
          ``(3) contributes to the improvement of academic achievement 
        for all students;
          ``(4) provides funding for critical activities; and
          ``(5) provides services for private school students.
  ``(b) Statement of Purpose.--It is the purpose of programs under this 
subpart--
          ``(1) to provide funding to enable States and local 
        educational agencies to implement promising educational reform 
        programs and school improvement initiatives based on 
        scientifically based research;
          ``(2) to provide a continuing source of innovation and 
        educational improvement, including support for library services 
        and instructional and media materials; and
          ``(3) to meet the educational needs of all students, 
        including at-risk youth.
  ``(c) State and Local Responsibility.--
          ``(1) In general.--The States shall have the basic 
        responsibility for the administration of funds made available 
        under this subpart, but such administration shall be carried 
        out with a minimum of paperwork.
          ``(2) Design and implementation.--Notwithstanding paragraph 
        (1), local educational agencies, school superintendents and 
        principals, and classroom teachers and supporting personnel 
        shall be mainly responsible for the design and implementation 
        of programs assisted under this subpart, because such 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.

                 ``CHAPTER 1--STATE AND LOCAL PROGRAMS

``SEC. 4111. ALLOCATION TO STATES.

  ``(a) Reservations.--From the sums appropriated to carry out this 
subpart for each fiscal year, the Secretary shall reserve not more than 
1 percent for payments to outlying areas to be allotted in accordance 
with their respective needs.
  ``(b) Allocation of Remainder.--From the remainder of such sums, the 
Secretary shall allocate, and make available in accordance with this 
subpart, to each State an amount which bears the same ratio to the 
amount of such remainder 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 \1/2\ of 1 percent of such 
remainder.

``SEC. 4112. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

  ``(a) Distribution Rule.--
          ``(1) In general.--Subject to paragraph (2), from the sums 
        made available each year to carry out this subpart, the State 
        shall distribute not less than 85 percent to local educational 
        agencies within such State according to the relative 
        enrollments in public and private, nonprofit schools within the 
        jurisdictions of such agencies, adjusted, in accordance with 
        criteria 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) Exception.--100 percent of any amount by which the 
        funds paid to a State under this subpart for a fiscal year 
        exceed the amount of such funds paid to the State for fiscal 
        year 2001 shall be distributed to local educational agencies 
        and used locally for innovative assistance described in section 
        4131(b).
          ``(3) Limitation on use of funds for administration.--In each 
        fiscal year, a State may use not more than 25 percent of the 
        funds available for State programs under this subpart for State 
        administration under section 4121.
  ``(b) 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 whose parents would like their 
                children to participate in programs or projects 
                assisted under this subpart, for the fiscal year 
                preceding the fiscal year for which the determination 
                is made.
          ``(2) 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 chapter.
          ``(3) Adjustments.--
                  ``(A) In general.--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) Criteria.--The Secretary shall review criteria 
                submitted by a State 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 local 
                educational agencies based on the factors set forth in 
                subparagraph (A).
  ``(c) Payment of Allocations.--
          ``(1) Distribution.--From the funds paid to a State under 
        this subpart for a fiscal year, a State shall distribute to 
        each eligible local educational agency that has submitted an 
        application as required in section 4133 the amount of such 
        local educational agency's allocation, as determined under 
        subsection (a).
          ``(2) Additional funds.--
                  ``(A) In general.--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 and private, nonprofit 
                schools in direct proportion to the number of children 
                described in subsection (a)(1) and enrolled in such 
                schools within the local educational agency.
                  ``(B) Election.--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 local educational agency in such 
                manner.
                  ``(C) 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.

                      ``CHAPTER 2--STATE PROGRAMS

``SEC. 4121. STATE USE OF FUNDS.

  ``A State may use funds made available for State use under this 
subpart only for--
          ``(1) State administration of programs under this subpart 
        including--
                  ``(A) supervision of the allocation of funds to local 
                educational agencies;
                  ``(B) planning, supervision, and processing of State 
                funds; and
                  ``(C) monitoring and evaluation of programs and 
                activities under this subpart;
          ``(2) support for planning, designing, and initial 
        implementation of charter schools as described in part B;
          ``(3) statewide education reform and school improvement 
        activities and technical assistance and direct grants to local 
        educational agencies which assist such agencies under section 
        4131; and
          ``(4) support for arrangements that provide for independent 
        analysis to measure and report on school district achievement.

``SEC. 4122. STATE APPLICATIONS.

  ``(a) Application Requirements.--If a State seeks to receive 
assistance under this subpart, the individual, entity, or agency 
responsible for public elementary and secondary education policy under 
the State constitution or State law shall submit to the Secretary an 
application that--
          ``(1) provides for an annual statewide summary of how 
        assistance under this subpart is contributing toward improving 
        student achievement or improving the quality of education for 
        students;
          ``(2) provides information setting forth the allocation of 
        such funds required to implement section 4142;
          ``(3) provides that the State 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);
          ``(4) provides assurance that, apart from technical and 
        advisory assistance and monitoring compliance with this 
        subpart, the State 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 
        under section 4133;
          ``(5) contains assurances that there is compliance with the 
        specific requirements of this subpart; and
          ``(6) provides for timely public notice and public 
        dissemination of the information provided under paragraph (2).
  ``(b) Statewide Summary.--The statewide summary referred to in 
subsection (a)(1) shall be submitted to the Secretary and shall be 
derived from the evaluation information submitted by local educational 
agencies to the State under section 4133(a)(2)(H). The format and 
content of such summary shall be in the discretion of the State and may 
include statistical measures such as the number of students served by 
each type of innovative assistance described in section 4131(b), 
including the number of teachers trained.
  ``(c) Period of Application.--An application filed by the State under 
subsection (a) shall be for a period not to exceed 3 years, and may be 
amended annually as may be necessary to reflect changes without filing 
a new application.
  ``(d) Audit Limitation.--Each local educational agency receiving less 
than an average of $5,000 under this subpart may not be audited more 
frequently than once every 5 years.

            ``CHAPTER 3--LOCAL INNOVATIVE EDUCATION PROGRAMS

``SEC. 4131. USE OF FUNDS.

  ``(a) In General.--Funds made available to local educational agencies 
under section 4112 shall be used for innovative assistance programs 
described in subsection (b).
  ``(b) Innovative Assistance.--The innovative assistance programs 
referred to in subsection (a) may include--
          ``(1) professional development activities and the hiring of 
        teachers, including 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 achievement standards;
          ``(2) technology related to the implementation of school-
        based reform programs, including professional development to 
        assist teachers, and other school officials, regarding how to 
        use effectively such equipment and software;
          ``(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 achievement, and that are part of an overall 
        education reform program;
          ``(4) promising education reform projects, including 
        effective schools and magnet schools;
          ``(5) programs to improve the academic skills of 
        disadvantaged elementary and secondary school students and to 
        prevent students from dropping out of school;
          ``(6) programs to combat illiteracy;
          ``(7) programs to provide for the educational needs of gifted 
        and talented children;
          ``(8) planning, designing, 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 and encouraging 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);
          ``(12) activities to promote, implement, or expand public 
        school choice;
          ``(13) programs to hire and support school nurses;
          ``(14) expanding and improving 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; and
          ``(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.

``SEC. 4132. ADMINISTRATIVE AUTHORITY.

  ``In order to conduct the activities authorized by this subpart, each 
State or local educational agency may use funds made available under 
this subpart 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, including religious organizations.

``SEC. 4133. LOCAL APPLICATIONS.

  ``(a) Certification.--
          ``(1) In general.--A local educational agency or a consortium 
        of such agencies may receive an allocation of funds under this 
        subpart for any year for which the agency or consortium submits 
        an application under this section that is certified by the 
        State to meet the requirements of this section.
          ``(2) Contents of application.--The State shall certify each 
        application that--
                  ``(A) describes locally identified needs relative to 
                the purposes of this subpart and to the innovative 
                assistance described in section 4131(b);
                  ``(B) based on the needs identified in subparagraph 
                (A), sets forth the planned allocation of funds among 
                innovative assistance programs described in section 
                4131 and describes the programs, projects, and 
                activities designed to carry out such innovative 
                assistance programs that the local educational agency 
                intends to support;
                  ``(C) contains information setting forth the 
                allocation of such funds required to implement section 
                4142;
                  ``(D) describes how assistance under this subpart 
                will contribute to improving student academic 
                achievement;
                  ``(E) provides assurances of compliance with the 
                provisions of this subpart, including the participation 
                of children enrolled in private, nonprofit schools in 
                accordance with section 4142;
                  ``(F) provides assurance that the local educational 
                agency will keep such records, and provide such 
                information to the State as may be reasonably required 
                for fiscal audit and program evaluation, consistent 
                with the responsibilities of the State under this 
                subpart;
                  ``(G) provides in the allocation of funds for the 
                assistance authorized by this subpart, and in the 
                design, planning, and implementation of such programs, 
                for systematic consultation with parents of children 
                attending elementary and secondary schools in the area 
                served by the local educational agency, with teachers 
                and administrative personnel in such schools, and with 
                other groups involved in the implementation of this 
                subpart (such as librarians, school counselors, and 
                other pupil services personnel) as may be considered 
                appropriate by the local educational agency; and
                  ``(H) provides assurance that--
                          ``(i) programs, services, and activities will 
                        be evaluated annually;
                          ``(ii) such evaluation will be used to 
                        determine and implement appropriate changes in 
                        program services and activities for the 
                        subsequent year;
                          ``(iii) such evaluation will describe how 
                        assistance under this subpart contributed 
                        toward improving student academic achievement; 
                        and
                          ``(iv) such evaluation will be submitted to 
                        the State in the time and manner requested by 
                        the State.
  ``(b) Time Period to Which Application Relates.--An application 
submitted by a local educational agency under subsection (a) may seek 
allocations under this part for a period of time not to exceed 3 fiscal 
years and may be amended annually as may be necessary to reflect 
changes without the filing of a new application.
  ``(c) Local Educational Agency Discretion.--
          ``(1) In general.--Subject to the limitations and 
        requirements of this subpart, a local educational agency shall 
        have complete discretion in determining how funds made 
        available under this chapter will be divided among programs and 
        activities described in section 4131.
          ``(2) Limitation.--In exercising the discretion described in 
        paragraph (1), a local educational agency shall ensure that 
        expenditures under this chapter carry out the purposes of this 
        subpart and are used to meet the educational needs within the 
        schools of such local educational agency.

                    ``CHAPTER 4--GENERAL PROVISIONS

``SEC. 4141. MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY.

  ``(a) Maintenance of Effort.--
          ``(1) In general.--Except as provided in paragraph (2), a 
        State is entitled to receive its full allocation of funds under 
        this subpart 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 fiscal year that is 2 fiscal 
        years before the fiscal year for which the determination is 
        made.
          ``(2) Reduction of funds.--The Secretary shall reduce the 
        amount of the allocation of funds under this subpart 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) 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.
  ``(b) Federal Funds Supplementary.--A State or local educational 
agency may use and allocate funds received under this subpart only to 
supplement and, to the extent practical, to increase the level of funds 
that would, in the absence of Federal funds made available under this 
subpart, be made available from non-Federal sources, and in no case may 
such funds be used so as to supplant funds from non-Federal sources.

``SEC. 4142. 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 which is eligible to receive funds under this subpart or 
        which serves the area in which a program or project assisted 
        under this subpart is located, who are enrolled in private 
        nonprofit elementary and secondary schools, or with respect to 
        instructional or personnel training programs funded by the 
        State from funds made available for State use, such agency, 
        after consultation with appropriate private school officials--
                  ``(A) shall provide for the benefit of such children 
                in such schools 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 the repair or minor remodeling 
                of public facilities as may be necessary for their 
                provision (consistent with subsection (c) of this 
                section); or
                  ``(B) if such services, materials, and equipment are 
                not feasible or necessary in 1 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 subpart.
          ``(2) Other provisions for services.--If no program or 
        project is carried out under paragraph (1) in the school 
        district of a local educational agency, the State shall make 
        arrangements, such as through contracts with nonprofit agencies 
        or organizations, under which children in private schools in 
        such district are provided with services and materials to the 
        extent that would have occurred if the local educational agency 
        had received funds under this subpart.
          ``(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 and projects carried out under this subpart by a State 
        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 pursuant to 
        subsection (a) shall be equal (consistent with the number of 
        children to be served) to expenditures for programs under this 
        subpart 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 which relate to 
        the expenditures referred to in paragraph (1), and when funds 
        available to a local educational agency under this subpart are 
        used to concentrate programs or projects on a particular group, 
        attendance area, or grade or age level, children enrolled in 
        private schools who are included within the group, attendance 
        area, 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 or projects.
  ``(c) Administrative Rules.--
          ``(1) Funds and property.--The control of funds provided 
        under this subpart, 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 subpart, and a public agency shall administer such 
        funds and property.
          ``(2) Provision of services.--The provision of services 
        pursuant to this subpart shall be provided by employees of a 
        public agency or through contract by such public agency with a 
        person, an association, agency, or corporation who or which, in 
        the provision of such services, is independent of such private 
        school and of any religious organizations, and such employment 
        or contract shall be under the control and supervision of such 
        public agency, and the funds provided under this subpart shall 
        not be commingled with State or local funds.
  ``(d) Waiver.--
          ``(1) State prohibition waiver.--If by reason of any 
        provision of law a State or local educational agency is 
        prohibited from providing for the participation in programs of 
        children enrolled in private elementary and secondary schools, 
        as required by this section, the Secretary shall waive such 
        requirements and shall arrange for the provision of services to 
        such children through arrangements which shall be subject to 
        the requirements of this section.
          ``(2) Failure to comply.--If the Secretary determines that a 
        State 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 and secondary 
        schools as required by this section, the Secretary may waive 
        such requirements and shall arrange for the provision of 
        services to such children through arrangements which shall be 
        subject to the requirements of this section.
  ``(e) Withholding of 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 
allocation of the affected State 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) Term of Determinations.--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 or local educational agency to meet the requirements 
of subsections (a) and (b).
  ``(g) 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 such services, including the administrative costs of 
arranging for those services, from the appropriate allotment of the 
State under this subpart.
  ``(h) Review.--
          ``(1) Written objections.--The Secretary shall not take any 
        final action under this section until the State 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) Court action.--If a State 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. The Secretary thereupon shall file in the court the 
        record of the proceedings on which the Secretary based this 
        action, as provided in section 2112 of title 28, United States 
        Code.
          ``(3) Remand to secretary.--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 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 such petition, 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 of the United States upon certiorari or certification as 
        provided in section 1254 of title 28, United States Code.
  ``(i) Prior Determination.--Any bypass determination by the Secretary 
under chapter 2 of title I of this Act (as such chapter was in effect 
on the day preceding the date of enactment of the Improving America's 
Schools Act of 1994) shall, to the extent consistent with the purposes 
of this title, apply to programs under this title.

``SEC. 4143. FEDERAL ADMINISTRATION.

  ``(a) Technical Assistance.--The Secretary, upon request, shall 
provide technical assistance to States and local educational agencies 
under this subpart.
  ``(b) Rulemaking.--The Secretary shall issue regulations under this 
subpart only to the extent that such regulations are necessary to 
ensure that there is compliance with the specific requirements and 
assurances required by this subpart.
  ``(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 activities under 
this subpart 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.

``SEC. 4144. DEFINITIONS.

  ``In this subpart, the following definitions apply:
          ``(1) School-age population.--The term `school-age 
        population' means the population aged 5 through 17.
          ``(2) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 4145. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this subpart 
$450,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of fiscal years 2003 through 2006.

                      ``Subpart 2--Arts Education

``SEC. 4151. ASSISTANCE FOR ARTS EDUCATION.

  ``(a) Findings.--The Congress finds that--
          ``(1) every student can benefit from an education in the 
        arts;
          ``(2) a growing body of research indicates that education in 
        the arts may provide cognitive benefits and bolster academic 
        achievement, beginning at an early age and continuing through 
        secondary school;
          ``(3) qualified arts teachers and a sequential curriculum are 
        the basis and core for substantive arts education for students;
          ``(4) the arts should be taught according to rigorous 
        academic standards under arts education programs that provide 
        mechanisms under which educators are accountable to parents, 
        school officials, and the community;
          ``(5) opportunities to participate in the arts have enabled 
        individuals with disabilities of all ages to participate more 
        fully in school and community activities; and
          ``(6) arts education is a valuable part of the elementary and 
        secondary school curriculum.
  ``(b) Purposes.--The purposes of this subpart are to--
          ``(1) support systemic education reform by strengthening arts 
        education as an integral part of the elementary and secondary 
        school curriculum; and
          ``(2) help ensure that all students meet challenging State 
        academic content standards and challenging State student 
        academic achievement standards in the arts.
  ``(c) Authority.--In accordance with this subpart, the Secretary may 
make grants to, or enter into contracts or cooperative agreements with, 
eligible entities described in subsection (d).
  ``(d) Eligible Entities.--The Secretary may make assistance available 
under subsection (c) to each of the following entities:
          ``(1) States.
          ``(2) Local educational agencies.
          ``(3) Institutions of higher education.
          ``(4) Museums or other cultural institutions.
          ``(5) Any other public or private agencies, institutions, and 
        organizations.
  ``(e) Use of Funds.--Assistance made available under this subpart may 
be used only for--
          ``(1) research on arts education;
          ``(2) planning, developing, acquiring, expanding, improving, 
        or disseminating model school-based arts education programs;
          ``(3) the development of model State arts education 
        assessments based on State academic 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, arts educators, and organizations 
        representing the arts, including State and local arts agencies 
        involved in arts education;
          ``(7) supporting model projects or programs in the performing 
        arts for children and youth or programs which assure the 
        participation in mainstream settings in arts and education 
        programs of individuals with disabilities through arrangements 
        made with organizations such as the John F. Kennedy Center for 
        the Performing Arts and VSA arts;
          ``(8) supporting model projects or programs to integrate arts 
        education into the regular elementary and secondary school 
        curriculum; or
          ``(9) other activities that further the purposes of this 
        subpart.
  ``(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 part, 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.
  ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subpart such sums as may be necessary 
for each of fiscal years 2002 through 2006.

               ``Subpart 3--Gifted and Talented Children

``SEC. 4161. SHORT TITLE.

  ``This subpart may be cited as the `Jacob K. Javits Gifted and 
Talented Students Education Act of 2001'.

``SEC. 4162. FINDINGS AND PURPOSE.

  ``(a) Findings.--Congress finds the following:
          ``(1) While the families and communities of some gifted and 
        talented students can provide private educational programs with 
        appropriately trained staff to supplement public educational 
        offerings, most gifted and talented students, especially those 
        from inner cities, rural communities, or low-income families, 
        must rely on the services and personnel available in public 
        schools. In order to ensure that there are equal educational 
        opportunities for all gifted and talented students in the 
        United States, the public schools should provide gifted and 
        talented education programs carried out by qualified 
        professionals.
          ``(2) Due to the wide dispersal of students who are gifted 
        and talented and the national interest in a well-educated 
        populace, it is the Federal Government that can most 
        effectively and appropriately conduct scientifically based 
        research and development to ensure that there is a national 
        capacity to educate students who are gifted and talented in the 
        21st century.
          ``(3) Many State and local educational agencies lack the 
        specialized resources and trained personnel necessary to 
        consistently plan and implement effective programs for the 
        identification of gifted and talented students and for the 
        provision of educational services and programs appropriate for 
        the needs of such students.
          ``(4) Because gifted and talented students are generally more 
        advanced academically, are generally able to learn more 
        quickly, and generally study in more depth and complexity than 
        others their age, they require educational opportunities and 
        experiences that are different from those usually available to 
        other students.
          ``(5) A typical elementary school student who is academically 
        gifted and talented has already mastered 35 to 50 percent of 
        the content to be learned in several subjects in any school 
        year before that year begins. Without an advanced and 
        challenging curriculum, such a student may lose motivation and 
        develop poor study habits that are difficult to break.
          ``(6) Classes in elementary and secondary schools in the 
        United States consist of students with a wide variety of 
        traits, characteristics, and needs. Although most teachers 
        receive some training to meet the needs of students with 
        limited English proficiency, students with disabilities, and 
        students from diverse cultural and racial backgrounds, few 
        receive training to meet the needs of students who are gifted 
        and talented.
  ``(b) 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 and secondary schools 
nationwide to meet the special educational needs of gifted and talented 
students.

``SEC. 4163. 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. 4164. AUTHORIZED PROGRAMS.

  ``(a) Establishment of Program.--
          ``(1) In general.--From the sums available to carry out this 
        subpart in any fiscal year, the Secretary (after consultation 
        with experts in the field of the education of gifted and 
        talented students) shall 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 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.--
                  ``(A) In general.--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.
                  ``(B) Contents.--Each application submitted under 
                this paragraph shall describe how--
                          ``(i) the proposed gifted and talented 
                        services, materials, and methods can be 
                        adapted, if appropriate, for use by all 
                        students; and
                          ``(ii) 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) Professional development (including fellowships) for 
        personnel (including leadership personnel) involved in the 
        education of gifted and talented students.
          ``(3) Establishment and operation of 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, including 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) 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.
  ``(c) Establishment of National Center.--
          ``(1) In general.--The Secretary (after consultation with 
        experts in the field of the education of gifted and talented 
        students) shall establish a National Center for Research and 
        Development in 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 paragraph (1) of subsection (b).
          ``(2) Director.--The National Center established under 
        paragraph (1) 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 or local educational 
        agencies, or other public or private agencies and 
        organizations.
  ``(d) Limitation.--Not more than 30 percent of the funds available in 
any fiscal year to carry out the programs and projects authorized by 
this section may be used to conduct activities pursuant to subsection 
(b)(1) or subsection (c).
  ``(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. 4165. 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 who may not be 
        identified and served through traditional assessment methods 
        (including economically disadvantaged individuals, individuals 
        of limited English proficiency, and individuals with 
        disabilities).
  ``(b) Service Priority.--In approving applications for assistance 
under section 4164(a)(2), the Secretary shall ensure that in each 
fiscal year not less than 50 percent of the applications approved under 
such section address the priority described in subsection (a)(2) of 
this section.

``SEC. 4166. 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 and secondary schools, including the participation 
of teachers and other personnel in professional development programs 
serving such children.
  ``(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 and local educational 
        agencies and other appropriate organizations, including 
        nonprofit private organizations; and
          ``(3) evaluate the effectiveness of programs under this 
        subpart in accordance with section 8651, both 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 the Congress not later than 2 years after 
        the date of the 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; and
          ``(3) assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying research 
        priorities which reflect the needs of gifted and talented 
        students.

``SEC. 4167. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this subpart 
such sums as may be necessary for each of fiscal years 2002 through 
2006.''.

SEC. 402. CONTINUATION OF AWARDS.

  Notwithstanding any other provision of this Act, any person or agency 
that was awarded a grant under part B or D of title X (20 U.S.C. 8031 
et seq., 8091 et seq.) prior to the date of the enactment of this Act 
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 B--PUBLIC CHARTER SCHOOLS

SEC. 411. PUBLIC CHARTER SCHOOLS.

  Title IV, as amended by section 401, is further amended by adding at 
the end the following:

                    ``PART B--PUBLIC CHARTER SCHOOLS

``SEC. 4201. FINDINGS AND PURPOSE.

  ``(a) Findings.--The Congress finds that--
          ``(1) enhancement of parent and student choices among public 
        schools can assist in promoting comprehensive educational 
        reform and give more students the opportunity to meet 
        challenging State academic content standards and State student 
        academic achievement standards, if sufficiently diverse and 
        high-quality choices, and genuine opportunities to take 
        advantage of such choices, are available to all students;
          ``(2) useful examples of such choices can come from States 
        and communities that experiment with methods of offering 
        teachers and other educators, parents, and other members of the 
        public the opportunity to design and implement new public 
        schools and to transform existing public schools;
          ``(3) charter schools are a mechanism for testing a variety 
        of educational approaches and should, therefore, be exempted 
        from restrictive rules and regulations if the leadership of 
        such schools commits to attaining specific and ambitious 
        educational results for educationally disadvantaged students 
        consistent with challenging State academic content standards 
        and State student academic achievement standards for all 
        students;
          ``(4) charter schools can embody the necessary mixture of 
        enhanced choice, exemption from restrictive regulations, and a 
        focus on learning gains;
          ``(5) charter schools, including charter schools that are 
        schools-within-schools, can help reduce school size, and this 
        reduction can have a significant effect on student achievement;
          ``(6) the Federal Government should test, evaluate, and 
        disseminate information on a variety of charter school models 
        in order to help demonstrate the benefits of this promising 
        educational reform; and
          ``(7) there is a strong documented need for cash-flow 
        assistance to charter schools that are starting up, because 
        State and local operating revenue streams are not immediately 
        available.
  ``(b) Purpose.--It is the purpose of this part 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 achievement, staff, and parents; 
        and
          ``(3) expanding the number of high-quality charter schools 
        available to students across the Nation.

``SEC. 4202. PROGRAM AUTHORIZED.

  ``(a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to section 
4203 to enable such agencies to conduct a charter school grant program 
in accordance with this part.
  ``(b) Special Rule.--If a State educational agency elects not to 
participate in the program authorized by this part or does not have an 
application approved under section 4203, the Secretary may award a 
grant to an eligible applicant that serves such State and has an 
application approved pursuant to section 4203(c).
  ``(c) Program Periods.--
          ``(1) Grants to states.--Grants awarded to State educational 
        agencies under this part shall be awarded 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 part 
        shall be awarded 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 
                4204(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 part from 
        any funds appropriated under section 4211, 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) is 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 academic 
        performance 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 part.
                  ``(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.
                  ``(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 part 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. 4203. APPLICATIONS.

  ``(a) Applications From State Agencies.--Each State educational 
agency desiring a grant from the Secretary under this part 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 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
                          ``(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 
                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 applicant will cooperate 
                with the Secretary and the State educational agency in 
                evaluating the program assisted under this part;
                  ``(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 4202(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) Contents of Eligible Applicant Application.--Each eligible 
applicant desiring a grant pursuant to section 4202(b) shall submit an 
application to the State educational agency or Secretary, respectively, 
at such time, in such manner, and accompanied by such information as 
the State educational agency or Secretary, respectively, may reasonably 
require.
  ``(d) Contents of Application.--Each application submitted pursuant 
to subsection (c) shall contain--
          ``(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 4204(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 this requirement 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. 4204. ADMINISTRATION.

  ``(a) Selection Criteria for State Educational Agencies.--The 
Secretary shall award grants to State educational agencies under this 
part on the basis of the quality of the applications submitted under 
section 4203(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 to achieving State academic content standards and 
        State student academic achievement standards and, in general, a 
        State's education improvement plan;
          ``(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 part in the State; and
          ``(7) in the case of State educational agencies that propose 
        to use grant funds to support dissemination activities under 
        section 4202(c)(2)(C), 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 part on the basis 
of the quality of the applications submitted under section 4203(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;
          ``(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 
        section 4202(c)(2)(C), 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 part, shall use a peer review process to 
review applications for assistance under this part.
  ``(d) Diversity of Projects.--The Secretary and each State 
educational agency receiving a grant under this part, shall award 
subgrants under this part 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 4210(1), if--
          ``(1) the waiver is requested in an approved application 
        under this part; and
          ``(2) the Secretary determines that granting such a waiver 
        will promote the purpose of this part.
  ``(f) Use of Funds.--
          ``(1) State educational agencies.--Each State educational 
        agency receiving a grant under this part 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 part, 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 part.
          ``(3) Allowable activities.--An eligible applicant receiving 
        a grant or subgrant under this part 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
                  ``(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.--Each State educational agency 
        receiving a grant pursuant to this part may reserve not more 
        than 5 percent of such grant funds for administrative expenses 
        associated with the charter school grant program assisted under 
        this part. A local educational agency may not deduct funds for 
        administrative fees or expenses from a subgrant awarded to an 
        eligible applicant.
          ``(5) Revolving loan funds.--Each State educational agency 
        receiving a grant pursuant to this part may reserve not more 
        than 10 percent of the grant amount 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 
        part, under such terms as may be determined by the State 
        educational agency, for the initial operation of the charter 
        school grant program of such recipient 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 part, whether or not the charter 
                school has applied for or received funds under this 
                part 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, 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, 
                        academic assessments, and other materials that 
                        promote increased student academic 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 academic 
                        achievement in other schools.
  ``(g) Tribally Controlled Schools.--Each State that receives a grant 
under this part 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. 4205. 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 part, 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 part;
                  ``(B) assistance to applicants for assistance under 
                this part with the preparation of applications under 
                section 4203;
                  ``(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.
  ``(b) Construction.--Nothing in this section shall be construed to 
require charter schools to collect any data described in subsection 
(a).

``SEC. 4206. 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 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. 4207. 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 part, 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 (20 U.S.C. 1400 et seq.), or any other 
program administered by the Secretary that provides education funds to 
charter schools or regulates the activities of charter schools.

``SEC. 4208. 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 (20 
U.S.C. 1401(11)), are transferred to a charter school upon the transfer 
of the student to the charter school, to another public school upon the 
transfer of the student from a charter school to another public school, 
and to a private school upon the transfer of the student from a charter 
or public school to the private school (with the written consent of a 
parent of the student), in accordance with applicable State law.

``SEC. 4209. PAPERWORK REDUCTION.

  ``To the extent practicable, the Secretary and each authorized public 
chartering agency shall ensure that implementation of this part results 
in a minimum of paperwork for any eligible applicant or charter school.

``SEC. 4210. DEFINITIONS.

  ``As used in this part:
          ``(1) 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 
                exempted 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;
                  ``(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, or in another nondiscriminatory manner 
                consistent with State law, 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 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 academic 
                achievement will be measured in charter schools 
                pursuant to State academic 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) 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) The term `eligible applicant' means a developer that 
        has--
                  ``(A) applied to an authorized public chartering 
                authority; and
                  ``(B) provided adequate and timely notice to that 
                authority under section 4203(d)(3).
          ``(4) 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. 4211. AUTHORIZATION OF APPROPRIATIONS.

  ``For the purpose of carrying out this part, there are authorized to 
be appropriated $225,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 4 succeeding fiscal years.''.

SEC. 412. CONTINUATION OF AWARDS.

  Notwithstanding any other provision of this Act, any person or agency 
that was awarded a grant or subgrant under subpart 1 of part C of title 
X (20 U.S.C. 8061 et seq.) prior to the date of the enactment of this 
Act 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 C--MAGNET SCHOOLS ASSISTANCE; WOMEN'S EDUCATIONAL EQUITY

SEC. 421. MAGNET SCHOOLS ASSISTANCE.

  Title IV, as amended by sections 401 and 411, is further amended by 
adding at the end the following:

    ``PART C--MAGNET SCHOOLS ASSISTANCE; WOMEN'S EDUCATIONAL EQUITY

                 ``Subpart 1--Magnet Schools Assistance

``SEC. 4301. FINDINGS.

  ``The Congress finds as follows:
          ``(1) Magnet schools are a significant part of the Nation's 
        efforts to achieve voluntary desegregation in our 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 quality education that will prepare them to 
                function well in a highly competitive economy;
                  ``(C) to maximize the ability of local educational 
                agencies to plan, develop, implement, and continue 
                effective and innovative magnet schools that contribute 
                to State and local systemic reform; and
                  ``(D) to ensure that grant recipients provide 
                adequate data that demonstrate an ability to improve 
                student academic achievement.

``SEC. 4302. STATEMENT OF 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--
          ``(1) the elimination, reduction, or prevention of minority 
        group isolation in elementary and secondary schools with 
        substantial proportions of minority students;
          ``(2) the development and implementation of magnet school 
        projects 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 and secondary schools and 
        educational programs; and
          ``(4) courses of instruction within magnet schools that will 
        substantially strengthen the knowledge of academic subjects and 
        the grasp of tangible and marketable vocational and technical 
        skills of students attending such schools.

``SEC. 4303. PROGRAM AUTHORIZED.

  ``The Secretary, in accordance with this part, is authorized to make 
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. 4304. DEFINITION.

  ``For the purpose of this part, the term `magnet school' means a 
public elementary or secondary school or public elementary or secondary 
education center that offers a special curriculum capable of attracting 
substantial numbers of students of different racial backgrounds.

``SEC. 4305. ELIGIBILITY.

  ``A local educational agency, or consortium of such agencies where 
appropriate, is eligible to receive assistance 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 and 
        secondary schools of such agency; or
          ``(2) without having been required to do so, has adopted and 
        is implementing, or will, if assistance is made available to 
        such local educational agency or consortium of such agencies 
        under this part, adopt and implement a plan that has been 
        approved 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. 4306. APPLICATIONS AND REQUIREMENTS.

  ``(a) Applications.--An eligible local educational agency, or 
consortium of such agencies, desiring to receive assistance 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 such application shall 
include--
          ``(1) a description of--
                  ``(A) how assistance made available under this part 
                will be used to promote desegregation, including how 
                the proposed magnet school project will increase 
                interaction among students of different social, 
                economic, ethnic, and racial backgrounds;
                  ``(B) the manner and extent to which the magnet 
                school project will increase student academic 
                achievement in the instructional area or areas offered 
                by the school;
                  ``(C) how an applicant will continue the magnet 
                school project after assistance under this part is no 
                longer available, including, if applicable, an 
                explanation of why magnet schools established or 
                supported by the applicant with funds under this part 
                cannot be continued without the use of funds under this 
                part;
                  ``(D) how funds under this part will be used to 
                improve student academic performance for all students 
                attending the magnet schools; and
                  ``(E) the criteria to be used in selecting students 
                to attend the proposed magnet school projects; and
          ``(2) assurances that the applicant will--
                  ``(A) use funds under this part for the purpose 
                specified in section 4302;
                  ``(B) employ fully 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 agency or other personnel for 
                        whom the agency has any administrative 
                        responsibility;
                          ``(ii) the assignment of students to schools, 
                        or to courses of instruction within the school, 
                        of such agency, 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 projects equitable 
                consideration for placement in those projects.

``SEC. 4307. PRIORITY.

  ``In approving applications 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 an 
        approved desegregation plan and the projects for which 
        assistance is sought;
          ``(2) propose to carry out new magnet school projects, or 
        significantly revise existing magnet school projects; and
          ``(3) propose to select students to attend magnet school 
        projects by methods such as lottery, rather than through 
        academic examination.

``SEC. 4308. 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 thereof, 
        necessary for the conduct of programs in magnet schools;
          ``(3) for the payment, or subsidization of the compensation, 
        of elementary and secondary school teachers who are fully 
        qualified, and instructional staff where applicable, who are 
        necessary for the conduct of 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 project 
                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; and
          ``(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.
  ``(b) Special Rule.--Grant funds under this part may be used in 
accordance with paragraphs (2) and (3) of subsection (a) only if the 
activities described in such paragraphs are directly related to 
improving the students' academic performance based on the State's 
challenging academic content standards and student academic achievement 
standards or directly related to improving the students' reading skills 
or knowledge of mathematics, science, history, geography, English, 
foreign languages, art, or music, or to improving vocational and 
technical skills.

``SEC. 4309. PROHIBITIONS.

  ``(a) Transportation.--Grants under this part may not be used for 
transportation or any activity that does not augment academic 
improvement.
  ``(b) Planning.--A local educational agency shall not expend funds 
under this part after the third year that such agency receives funds 
under this part for such project.

``SEC. 4310. LIMITATIONS.

  ``(a) Duration of Awards.--A grant under this part shall be awarded 
for a period that shall not exceed three fiscal years.
  ``(b) Limitation on Planning Funds.--A local educational agency may 
expend for planning not more than 50 percent of the funds received 
under this part for the first year of the project, 15 percent of such 
funds for the second such year, and 10 percent of such funds for the 
third such year.
  ``(c) Amount.--No local educational agency or consortium awarded a 
grant under this part shall receive more than $4,000,000 under this 
part in any one fiscal year.
  ``(d) 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. 4311. EVALUATIONS.

  ``(a) Reservation.--The Secretary may reserve not more than 2 percent 
of the funds appropriated under section 4312(a) for any fiscal year to 
carry out evaluations, technical assistance, and dissemination projects 
with respect to magnet school projects and 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 quality education;
          ``(3) the extent to which magnet school programs lead to the 
        elimination, reduction, or prevention of minority group 
        isolation in elementary 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.

``SEC. 4312. 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 4 succeeding 
fiscal years.
  ``(b) Availability of Funds for Grants to Agencies Not Previously 
Assisted.--In any fiscal year for which the amount appropriated 
pursuant to subsection (a) exceeds $75,000,000, the Secretary shall 
give priority to using such amounts in excess of $75,000,000 to award 
grants to local educational agencies or consortia of such agencies that 
did not receive a grant under this part in the preceding fiscal 
year.''.

SEC. 422. WOMEN'S EDUCATIONAL EQUITY.

  (a) Transfer and Redesignation.--Part B of title V (20 U.S.C. 7231 et 
seq.) is transferred and redesignated as subpart 2 of part C of title 
IV. Sections 5201 through 5208 are redesignated as sections 4321 
through 4328, respectively.
  (b) Report.--Section 4326 (as so redesignated) is amended by striking 
``January 1, 1999,'' and inserting ``January 1, 2005,''.
  (c) Evaluation and Dissemination.--Section 4327(a) (as so 
redesignated) is amended--
          (1) by striking ``14701,'' and inserting ``8651,''; and
          (2) by striking ``January 1, 1998.'' and inserting ``January 
        1, 2004.''.
  (d) Reauthorization.--Section 4328 (as so redesignated) is amended by 
striking ``$5,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years,'' and inserting 
``$3,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the four succeeding fiscal years,''.
  (e) Other Conforming Amendments.--
          (1) Short title.--Section 4321(a) (as so redesignated) is 
        amended to read as follows:
  ``(a) Short Title.--This subpart may be cited as the `Women's 
Educational Equity Act of 2001'.''.
          (2) References.--Subpart 2 of part C of title IV (as so 
        redesignated) is amended--
                  (A) by striking ``this part'' each place such term 
                appears and inserting ``this subpart''; and
                  (B) by striking ``5203(b)'' each place such term 
                appears and inserting ``4423(b)''.

SEC. 423. CONTINUATION OF AWARDS.

  Notwithstanding any other provision of this Act, any person or agency 
that was awarded a grant under part A of title V (20 U.S.C. 7201 et 
seq.), or a grant, contract, or cooperative agreement under part B of 
such title (20 U.S.C. 7231 et seq.), prior to the date of the enactment 
of this Act 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.

                     TITLE V--21ST CENTURY SCHOOLS

SEC. 501. SAFE SCHOOLS.

  Title V, except part B (which is transferred and redesignated as 
subpart 2 of part C of title IV by section 422(a) of this Act) is 
amended to read as follows:

                    ``TITLE V--21ST CENTURY SCHOOLS

    ``PART A--SUPPORTING VIOLENCE AND DRUG PREVENTION AND ACADEMIC 
                               ENRICHMENT

``SEC. 5001. SHORT TITLE.

  ``This part may be cited as the `21st Century Schools Act of 2001'.

``SEC. 5002. PURPOSE.

  ``The purpose of this part is to support programs that prevent the 
use of illegal drugs, prevent violence, provide quality before and 
after school activities and supervision for school age youth, involve 
parents and communities, and are coordinated with related Federal, 
State, and community efforts and resources to foster a safe and drug-
free learning environment in which students increase their 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 drug and violence prevention in elementary 
        and secondary schools;
          ``(2) States for grants to local educational agencies, 
        community-based organizations, and other public entities and 
        private organizations, for before and after school programs for 
        youth; and
          ``(3) States and public and private nonprofit and for-profit 
        organizations to conduct training, demonstrations, and 
        evaluations.

``SEC. 5003. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated--
          ``(1) $475,000,000 for fiscal year 2002, and such sums as may 
        be necessary for each of the 4 succeeding fiscal years, for 
        State grants under subpart 1;
          ``(2) $900,000,000 for fiscal year 2002, and such sums as may 
        be necessary for each of the four succeeding fiscal years, for 
        State grants under subpart 2; and
          ``(3) $60,000,000 for fiscal year 2002, and for each of the 4 
        succeeding fiscal years, for national programs under subpart 3.

                       ``Subpart 1--Safe Schools

``SEC. 5111. RESERVATIONS AND ALLOTMENTS.

  ``(a) Reservations.--From the amount made available under section 
5003(1) to carry out this subpart for each fiscal year, the Secretary--
          ``(1) 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;
          ``(2) 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;
          ``(3) shall reserve 0.2 percent of such amount for Native 
        Hawaiians to be used to carry out programs described in this 
        subpart;
          ``(4) notwithstanding section 3 of the Leave No Child Behind 
        Act of 2001, shall reserve an amount necessary to make 
        continuation grants to grantees under part I of title X of this 
        Act (under the terms of those grants), as such part existed on 
        the day before the effective date of the Leave No Child Behind 
        Act of 2001; and
          ``(5) notwithstanding section 3 of the Leave No Child Behind 
        Act of 2001, shall reserve an amount necessary to make 
        continuation grants to grantees under the Safe Schools/Healthy 
        Students initiative (under the terms of those grants), as it 
        existed on the day before the date of the effective date of the 
        Leave No Child Behind Act of 2001.
  ``(b) State Allotments.--
          ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary, for each fiscal year, shall allocate 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 part 
                A of title I 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 one-
        half of 1 percent of the total amount allotted to all the 
        States under this subsection.
  ``(c) Reallotment of Unused Funds.--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.
  ``(d) Definition.--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.

``SEC. 5112. RESERVATION OF STATE FUNDS FOR SAFE SCHOOLS.

  ``(a) State Reservation for the Governor.--
          ``(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 5111(b) for each fiscal year to award 
        competitive grants and contracts to local educational agencies, 
        community-based organizations, and other public entities and 
        private organizations for programs or activities to support 
        community efforts that complement activities of local 
        educational agencies described in section 5115. Such officer 
        shall award grants based on--
                  ``(A) the quality of the activity or program 
                proposed; and
                  ``(B) how the program or activity is aligned with the 
                appropriate principles of effectiveness described in 
                section 5114(a).
          ``(2) Special consideration.--In awarding funds under 
        subparagraph (A), a chief executive officer shall give special 
        consideration to grantees that pursue a comprehensive approach 
        to drug and violence prevention by providing and incorporating 
        mental health services in their programs.
          ``(3) Administrative costs.--The chief executive officer of a 
        State may use not more than 1 percent of the amount described 
        in subparagraph (A) for the administrative costs incurred in 
        carrying out the duties of such officer under this section.
  ``(b) State Funds.--
          ``(1) Additional reservations.--Each State shall reserve an 
        amount equal to the total amount allotted to a State under 
        section 5111(b), less the amount reserved under subsection (a) 
        and paragraphs (2) and (3) of this subsection, for each fiscal 
        year for its local educational agencies.
          ``(2) State activities.--A State may use not more than 4 
        percent of the total amount available under subsection (a) for 
        State activities described in subsection (c).
          ``(3) State administration.--A State may use not more than 1 
        percent of the amount made available under subsection (a) for 
        the administrative costs of carrying out its responsibilities 
        under this subpart.
  ``(c) Activities.--
          ``(1) In general.--A State shall use a portion of the funds 
        described in subsection (b)(2), either directly, or through 
        grants and contracts, to plan, develop, and implement capacity 
        building, technical assistance, evaluation, program improvement 
        services, and coordination activities for local educational 
        agencies, community-based organizations, other public entities, 
        and private organizations that are designed to support the 
        implementation of programs and activities under this subpart.
          ``(2) Data collection.--
                  ``(A) Statistics.--A State may use a portion of the 
                funds, not to exceed 20 percent, described in 
                subsection (b)(2), either directly or through grants 
                and contracts, to establish and implement a statewide 
                system of collecting data regarding statistics on--
                          ``(i) truancy rates; and
                          ``(ii) the frequency, seriousness, and 
                        incidence of violence and drug related offenses 
                        resulting in suspensions and expulsion in 
                        elementary and secondary schools in States.
                  ``(B) Compilation of statistics.--The statistics 
                shall be compiled in accordance with definitions as 
                determined in the State 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.
                  ``(C) Reporting.--Such data and statistics shall be 
                reported to the public and shall be reported on a 
                school-by-school basis.
                  ``(D) Limitation.--Nothing in this subsection shall 
                be construed to authorize the Secretary to require 
                particular policies, procedures, or practices with 
                respect to crimes on school property or school 
                security.
          ``(3) Safe schools.--The State shall establish and implement 
        a statewide policy requiring that students attending 
        persistently dangerous public elementary and secondary schools, 
        as determined by the State, or who become a victim of a violent 
        criminal offense, as defined 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 or secondary school, within the local educational 
        agency, including a public charter school and allowing payment 
        of reasonable transportation costs and tuition costs for such 
        students.

``SEC. 5113. STATE APPLICATION.

  ``(a) In General.--In order to receive an allotment under section 
5111 for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
          ``(1) describes the activities to be funded under section 
        5112(c);
          ``(2) describes how activities funded under this subpart will 
        support State academic achievement standards in accordance with 
        section 1111;
          ``(3) describes how funds under this subpart will be 
        coordinated with programs under this Act, and other programs, 
        as appropriate, in accordance with the provisions of section 
        8306;
          ``(4) 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;
          ``(5) provides an assurance that the State will cooperate 
        with, and assist, the Secretary in conducting data collection 
        as required by section 5116(a);
          ``(6) provides an assurance that the local educational 
        agencies in the State will comply with the provisions of 
        section 8503 pertaining to the participation of private school 
        children and teachers in the programs and activities under this 
        subpart;
          ``(7) 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 
        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;
          ``(8) describes the results of the State's needs and 
        resources assessment for violence and illegal drug use 
        prevention which shall be based on the results of on-going 
        evaluation (which may include data on the incidence and 
        prevalence, age of onset, perception of health risk and 
        perception of social disapproval of violence and illegal drug 
        use by youth in schools and communities and the prevalence of 
        risk and protective factors or other scientifically based 
        research variables in the school and community);
          ``(9)(A) provides a statement of the State's performance 
        measures for drug and violence prevention programs and 
        activities to be funded under this part that shall be developed 
        in consultation between the State and local officials and that 
        consist of--
                  ``(i) performance indicators for drug and violence 
                prevention programs and activities; and
                  ``(ii) levels of performance for each performance 
                indicator;
          ``(B) a description of the procedures the State will use for 
        assessing and publicly reporting progress toward meeting those 
        performance measures; and
          ``(C) a plan for monitoring the implementation of, and 
        providing technical assistance regarding, the activities and 
        programs conducted by local educational agencies, community-
        based organizations, other public entities, and private 
        organizations under this subpart;
          ``(10) provides an assurance that the State will consult with 
        a representative sample of local educational agencies in the 
        development of the definition of `persistently dangerous 
        school' for the purposes of section 5112(c)(3);
          ``(11) provides a description of how the State defines 
        `persistently dangerous school' for the purposes of section 
        5112(c)(3); and
          ``(12) provides an assurance that the State application will 
        be available for public review after submission of the 
        application.
  ``(b) General Approval.--A State application submitted 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 90-day period beginning on the date that the Secretary receives the 
application, that the application is in violation of this subpart.
  ``(c) Disapproval.--The Secretary shall not finally disapprove a 
State application, except after giving the State notice and opportunity 
for a hearing.

``SEC. 5114. FORMULA GRANT 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 sections 5111 and 5112 
        to local educational agencies for drug and violence prevention 
        and education 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 to local educational 
                agencies based on the relative enrollments in public 
                and private nonprofit elementary 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 
        1 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 that a local educational agency receives 
                its allocation--
                          ``(i) such agency shall return to the State 
                        any funds from such allocation that remain 
                        unobligated; and
                          ``(ii) the State 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, an 
                        amount that exceeds 25 percent of such 
                        allocation.
  ``(b) Eligibility.--To be eligible to receive a subgrant under this 
subpart, a local educational agency desiring a subgrant shall submit an 
application to the State. Such an application shall be amended, as 
necessary, to reflect changes in 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, school personnel, and community organizations 
                with relevant and demonstrated expertise in drug and 
                violence prevention activities, students and parents.
                  ``(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, 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 5115(a).
  ``(d) Contents of Applications.--
          ``(1) In general.--An application submitted by a local 
        educational agency under this section shall contain--
                  ``(A) an assurance that the activities or programs to 
                be funded support State academic achievement goals in 
                accordance with section 1111;
                  ``(B) a detailed explanation of the local educational 
                agency's comprehensive plan for drug and violence 
                prevention, which shall include a description of--
                          ``(i) how the plan will be coordinated with 
                        programs under this Act, other Federal, State, 
                        and local programs for drug and violence 
                        prevention, in accordance with the provisions 
                        of section 8306;
                          ``(ii) 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; and
                                  ``(II) levels of performance for each 
                                performance indicator;
                          ``(iii) how such agency will assess and 
                        publicly report progress toward attaining its 
                        performance measures;
                          ``(iv) 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 5115(a), and the means of evaluating 
                        such activity or program; and
                          ``(v) how the services will be targeted to 
                        schools and students with the greatest need;
                  ``(C) a certification that a meaningful assessment 
                has been conducted to determine community needs 
                (including consultation with community leaders, 
                businesses, and school officials), available resources 
                and capacity in the public and private sector (which 
                may include an analysis based on data reasonably 
                available at the time 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, prevalence of risk and 
                protective factors, buffers or assets, or other 
                scientifically based research variables in the school 
                and community), the findings of such assessments;
                  ``(D) 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;
                  ``(E) a description of the mechanisms used to provide 
                effective notice to the community of an intention to 
                submit an application under this title;
                  ``(F) an assurance that drug prevention programs 
                supported under this part convey a clear and consistent 
                message that the illegal use of drugs is wrong and 
                harmful;
                  ``(G) an assurance that the local educational agency 
                has established and implemented a student code of 
                conduct policy that clearly states responsibilities of 
                students, teachers, and administrators in maintaining a 
                classroom environment that allows a teacher to 
                communicate effectively with all students in the class, 
                that allows all students in the class to learn, has 
                consequences that are fair and appropriate for 
                violations, and is enforced equitably;
                  ``(H) an assurance that the application and any 
                waiver request will be available for public review 
                after submission of the application; and
                  ``(I) such other information and assurances as the 
                State may reasonably require.
          ``(2) General approval.--A local educational agency's 
        application submitted to the State under this subpart shall be 
        deemed to be approved by the State unless the State makes a 
        written determination, prior to the expiration of the 90-day 
        period beginning on the date that the State receives the 
        application, that the application is in violation of this 
        subpart.
          ``(3) Disapproval.--The State shall not finally disapprove a 
        local educational agency application, except after giving such 
        agency notice and an opportunity for a hearing.

``SEC. 5115. 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 upon an assessment of objective data 
                regarding the incidence of violence and illegal drug 
                use in the elementary and secondary schools and 
                communities to be served, including an objective 
                analysis 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 upon an established set of performance 
                measures aimed at ensuring that the elementary and 
                secondary schools and communities to be served by the 
                program have a drug-free, safe, and orderly learning 
                environment; and
                  ``(C) be based upon scientifically based research 
                that provides evidence that the program to be used will 
                reduce violence and illegal drug use.
          ``(2) Periodic evaluation.--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 
        5114(d)(1)(B)(ii) The results shall be used to refine, improve, 
        and strengthen the program, and to refine the performance 
        measures. The results 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 paragraph (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 5114 to develop, 
        implement, and evaluate comprehensive programs and activities, 
        which are coordinated with other school and community-based 
        services and programs, that shall--
                  ``(A) support State academic achievement goals in 
                accordance with section 1111;
                  ``(B) be consistent with the principles of 
                effectiveness described in subsection (a);
                  ``(C) be designed to--
                          ``(i) prevent or reduce violence and illegal 
                        drug use, delinquency, serious discipline 
                        problems, and poor academic achievement and 
                        illegal drug use; 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 to 
                        provide behavioral interventions as part of 
                        classroom management efforts; and
                  ``(D) include activities to promote the involvement 
                of parents in the activity or program, to promote 
                coordination with community groups and coalitions, and 
                government agencies, and to 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, such 
        as--
                  ``(A) developmentally appropriate drug and violence 
                prevention programs in both elementary and secondary 
                schools that incorporate a variety of prevention 
                strategies and activities, which may include--
                          ``(i) teaching students that most people do 
                        not use illegal drugs;
                          ``(ii) teaching students to recognize social 
                        and peer pressure to use illegal drugs and the 
                        skills for resisting illegal drug use;
                          ``(iii) teaching students about the dangers 
                        of emerging drugs;
                          ``(iv) engaging students in the learning 
                        process;
                          ``(v) incorporating activities in secondary 
                        schools that reinforce prevention activities 
                        implemented in elementary schools; and
                          ``(vi) involving families and communities in 
                        setting clear expectations against violence and 
                        illegal drug use and enforcing appropriate 
                        consequences for violence and illegal drug use;
                  ``(B) training of school personnel and parents in 
                youth drug and violence prevention, including training 
                in early identification, intervention, and prevention 
                of threatening behavior;
                  ``(C) community-wide strategies for reducing violence 
                and illegal drug use, and illegal gang activity;
                  ``(D) to the extent that expenditures do not exceed 
                20 percent of the amount made available to a local 
                educational agency under this subpart, law enforcement 
                and security activities, including--
                          ``(i) acquisition and installation of metal 
                        detectors;
                          ``(ii) hiring and training of security 
                        personnel, that are related to youth drug and 
                        violence prevention;
                          ``(iii) reporting of criminal offenses on 
                        school property; and
                          ``(iv) development of comprehensive school 
                        security assessments;
                  ``(E) expanding and improving school-based mental 
                health services, including early identification of 
                violence and illegal drug use, assessment, and direct 
                individual or group counseling services provided to 
                students, parents, and school personnel by qualified 
                school based mental health services personnel;
                  ``(F) establishing and maintaining peer mediation 
                programs that include educating and training peer 
                mediators and a designated faculty supervisor and 
                purchasing necessary materials to facilitate training 
                and the mediation process;
                  ``(G) alternative education programs or services that 
                reduce the need for suspensions or expulsions or 
                programs or services for students who have been 
                expelled or suspended from the regular educational 
                settings, including programs or services to assist 
                students to reenter the regular education setting upon 
                return from treatment or alternative education 
                programs;
                  ``(H) counseling, mentoring, and referral services, 
                and other student assistance practices and programs, 
                including assistance provided by qualified school based 
                mental health services personnel and the training of 
                teachers by school-based mental health service 
                providers in appropriate identification and 
                intervention techniques for students, at risk of 
                violent behavior and drug use;
                  ``(I) activities that reduce truancy;
                  ``(J) age appropriate, developmentally based violence 
                prevention and education programs that address the 
                legal, health, personal, and social consequences of 
                illegal drug use and violent and disruptive behavior 
                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;
                  ``(K) providing guidance to students that encourages 
                students to seek advice for anxiety, threats of 
                violence, or actual violence and to confide in a 
                trusted adult regarding an uncomfortable or threatening 
                situation;
                  ``(L) the development of educational programs that 
                prevent school based crime, including preventing crimes 
                motivated by hate that result in acts of physical 
                violence at school and any programs or published 
                materials that address school based crime shall not 
                recommend or require any action that abridges or 
                infringes upon the constitutionally protected rights of 
                free speech, religion, and equal protection of 
                students, their parents, or legal guardians;
                  ``(M) testing students for illegal drug use or 
                conducting student locker searches for illegal drugs or 
                drug paraphernalia consistent with the 4th amendment to 
                the Constitution;
                  ``(N) emergency intervention services following 
                traumatic crisis events, such as a shooting, major 
                accident, or a drug-related incident, that has 
                disrupted the learning environment;
                  ``(O) establishing and implementing a system for 
                transferring suspension and expulsion records by a 
                local educational agency to any public or private 
                elementary or secondary school;
                  ``(P) allowing students attending a persistently 
                dangerous public elementary or secondary school, as 
                determined by the State, or who become a victim of a 
                violent criminal offense, as defined by State law, 
                while in or on the grounds of a public elementary 
                school or secondary school that the student attends, to 
                attend a safe public elementary or secondary school, 
                within the local educational agency, including a public 
                charter school, and allowing payment of reasonable 
                transportation costs and tuition costs for such 
                students;
                  ``(Q) the development and implementation of character 
                education and training programs that reflect values, 
                that take into account the views of parents or 
                guardians of the student for whom the program is 
                intended, which may include honesty, citizenship, 
                courage, justice, respect, personal responsibility, and 
                trustworthiness;
                  ``(R) establishing and maintaining a school violence 
                hotline;
                  ``(S) activities to ensure students' safe travel to 
                and from school, including pedestrian and bicycle 
                safety education; and
                  ``(T) the evaluation of any of the activities 
                authorized under this subsection and the collection of 
                any data required by this part.

``SEC. 5116. EVALUATION AND REPORTING.

  ``(a) Data Collection.--
          ``(1) In general.--The National Center for Education 
        Statistics shall report, and when appropriate, collect data to 
        determine the frequency, seriousness, and incidence of illegal 
        drug use and violence by youth in schools and communities in 
        the States, using if appropriate, data submitted by the States 
        pursuant to subsection (b).
          ``(2) Report.--The Secretary shall submit to the Congress a 
        report on the data collected under this subsection.
  ``(b) State Report.--
          ``(1) In general.--Not later than October 1, 2004, and every 
        third year thereafter, the chief executive officer of a State, 
        in consultation with the State educational agency, shall submit 
        to the Secretary a report on the implementation and 
        effectiveness of State and local programs under this subpart.
          ``(2) Special rule.--The report required by this subsection 
        shall be--
                  ``(A) based on the State's ongoing evaluation 
                activities, and shall include data on the prevalence of 
                violence and illegal drug use by youth in schools and 
                communities; and
                  ``(B) made available to the public upon request, with 
                public notice of such availability provided.
  ``(c) Local Educational Agency Report.--Each local educational agency 
receiving funds under this subpart shall submit to the State such 
information, and at such intervals as the State reasonably requires to 
complete the State report required by subsection (b), information on 
the prevalence of violence and illegal drug use by youth in the schools 
and the community and the progress of the local educational agency 
toward meeting its performance measures. The report shall be made 
available to the public upon request, with public notice of such 
availability provided.

                   ``Subpart 2--21st Century Schools

``SEC. 5121. STATE ALLOTMENTS FOR 21ST CENTURY SCHOOLS.

  ``(a) State Allotments.--
          ``(1) In general.--Except as provided in paragraph (2), from 
        the amount made available under section 5003(2) to carry out 
        this subpart for each fiscal year, the Secretary shall allocate 
        among the States--
                  ``(A) one-half of such amount 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 amount according to the ratio 
                between the amount each State received under part A of 
                title I 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 one-
        half of 1 percent of the total amount allotted to all the 
        States under this subsection.
  ``(b) Reallotment of Unused Funds.--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.
  ``(c) State Funds.--
          ``(1) In general.--Each State that receives a grant under 
        this subpart shall reserve an amount equal to the amount 
        allotted to such State under subsection (a), less the amount 
        reserved under paragraphs (2) and (3) of this subsection, for 
        each fiscal year for its local educational agencies.
          ``(2) State administration.--A State may use not more than 1 
        percent of the amount made available under subsection (a) for 
        the administrative costs of carrying out its responsibilities 
        under this subpart.
          ``(3) State activities.--A State may use not more than 4 
        percent of the amount made available under subsection (a) for 
        the following activities:
                  ``(A) Monitoring and evaluation of programs and 
                activities assisted under this subpart.
                  ``(B) Providing capacity building, training, and 
                technical assistance under this subpart.

``SEC. 5122. STATE APPLICATION.

  ``(a) In General.--In order to receive an allotment under section 
5121(a) 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 subpart;
          ``(2) describes the competitive procedures and criteria the 
        State will use to ensure that grants under this subpart will 
        support quality extended learning opportunities;
          ``(3) an assurance that the program will primarily target 
        schools eligible for schoolwide programs under section 1114;
          ``(4) describes the steps the State will take to ensure that 
        programs implement effective strategies, including providing 
        ongoing technical assistance and training, evaluation, and 
        dissemination of promising practices;
          ``(5) describe how activities funded under this subpart will 
        support State academic achievement goals in accordance with 
        section 1111;
          ``(6) describe how funds under this subpart will be 
        coordinated with programs under this Act, and other programs; 
        as appropriate, in accordance with the provisions of section 
        8306;
          ``(7) 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 
        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:
          ``(8) provides an assurance that the application was 
        developed in consultation and coordination with appropriate 
        State officials, including the chief State school officer, the 
        heads of the State health and mental health agencies or their 
        designees, representatives of teachers, parents, students, the 
        business community, and community-based organizations, 
        including religious organizations;
          ``(9) 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;
          ``(10) describes how the State will evaluate the 
        effectiveness of programs and activities carried out under this 
        subpart which shall include at a minimum--
                  ``(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 subpart; 
                and
          ``(11) provides for timely public notice of intent to file 
        application and an assurance that the application will be 
        available for public review after submission of the 
        application.
  ``(b) General Approval.--A State application submitted 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 90-day period beginning on the date that the Secretary receives the 
application, that the application is in violation of this subpart.
  ``(c) Disapproval.--The Secretary shall not finally disapprove a 
State application, except after giving the State notice and opportunity 
for a hearing.

``SEC. 5123. COMPETITIVE GRANT PROGRAM.

  ``(a) In General.--A State that receives funds under this subpart 
shall provide the amount made available under section 5121 to eligible 
entities for 21st century community learning programs in accordance 
with this subpart.
  ``(b) Eligibility.--
          ``(1) In general.--To be eligible to receive a subgrant under 
        this subpart, an eligible entity desiring a subgrant shall 
        submit an application to the State that contains--
                  ``(A) a description of the before and after school 
                activity 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 center will travel safely 
                        to and from the community learning center and 
                        back home; and
                          ``(iii) a description of how the eligible 
                        applicant will disseminate information about 
                        the project (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 performance;
                  ``(C) a description of how the activity will meet the 
                principles of effectiveness described in section 5124;
                  ``(D) an assurance that the program will primarily 
                target students who attend schools eligible for 
                schoolwide programs under section 1114;
                  ``(E) 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 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;
                  ``(F) a description of the partnership with local 
                educational agency, a community-based organization, and 
                another public entity or private organization, if 
                appropriate;
                  ``(G) a certification that a meaningful assessment 
                has been conducted to determine community needs, 
                available resources and capacity in the findings of 
                such assessments, and a description of the mechanisms 
                used to provide effective notice to the community of an 
                intention to submit an application under this subpart;
                  ``(H) a description of the applicants experience, or 
                promise of success, in providing educational or related 
                activities that will compliment and enhance the 
                student's academic achievement;
                  ``(I) an assurance that the applicant will develop a 
                plan to continue the activity after funding under this 
                subpart ends;
                  ``(J) an assurance that the application and any 
                waiver request will be available for public review 
                after submission of the application; and
                  ``(K) such other information and assurances as the 
                State may reasonably require.
          ``(2) Eligible entity.--An eligible entity under this subpart 
        is a local educational agency, community-based organization, 
        and other public entity or private organization or a consortium 
        of two or more of such groups.
  ``(c) Peer Review.--In reviewing local applications under this 
section, a State shall use a peer review process or other methods of 
assuring the quality of such applications.
  ``(d) Geographic Diversity.--To the extent practicable, a State shall 
distribute funds equitably among geographic areas within the State.
  ``(e) Duration of Awards.--Grants under this subpart may be awarded 
for a period of not less than 3 years and not more than 5 years.
  ``(f) Amount of Awards.--A grant awarded under this subpart may not 
be made in an amount of less than $50,000.
  ``(g) Priority.--In making awards under this subpart, the State shall 
give priority to applications submitted by applicants proposing to 
target services to students who attend schools that have been 
identified as in need of improvement under section 1116.
  ``(h) Permissive Local Match.--
          ``(1) In general.--A State may require an eligible entity to 
        match funds awarded under this subpart, except that such match 
        may not exceed the amount of the grant award.
          ``(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) Consideration.--Notwithstanding this subsection, a 
        State shall not consider an eligible entity's ability to match 
        funds when determining which eligible entities will receive 
        subgrants under this subpart.

``SEC. 5124. LOCAL 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 upon an assessment of objective data 
                regarding the need for before and after school programs 
                and activities in such schools and communities;
                  ``(B) be based upon an established set of performance 
                measures aimed at ensuring the availability of quality 
                extended learning opportunities; and
                  ``(C) if appropriate, be based upon scientifically 
                based research that provides evidence that the program 
                will help students meet State and local performance 
                standards to be used.
          ``(2) Periodic evaluation.--The program or activity shall 
        undergo a periodic evaluation to assess its progress toward 
        achieving its goal of providing quality extended learning 
        opportunities. The results shall be used to refine, improve, 
        and strengthen the program, and to refine the performance 
        measures. The results 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 paragraph (1)(C) to 
        allow innovative activities or programs that demonstrate 
        substantial likelihood of success.
  ``(b) Services.--Each eligible entity that receives a subgrant under 
this subpart shall use such funds to establish or expand activities in 
community learning centers that--
          ``(1) provide quality extended learning opportunities to help 
        students, particularly students who attend low-performing 
        schools, to meet State and local student performance standards 
        in the core academic subjects, such as reading and mathematics; 
        and
          ``(2) provide students with additional activities, such as 
        drug and violence prevention programs, art and music programs, 
        technology education programs, recreational activity, and 
        character education programs that are linked to, and reinforce, 
        the regular academic program of schools those students attend.
  ``(c) Authorized Activities.--Each eligible entity that receives a 
subgrant under this subpart may use such funds to carry out activities, 
such as--
          ``(1) before and after school activities that advance student 
        achievement, including--
                  ``(A) remedial education activities and academic 
                enrichment learning programs, including providing 
                additional assistance to students in order to allow 
                them to improve their academic achievement;
                  ``(B) math and science education activities;
                  ``(C) arts and music education activities;
                  ``(D) entrepreneurial education programs;
                  ``(E) tutoring services (including those provided by 
                senior citizen volunteers) and mentoring programs;
                  ``(F) recreational activities;
                  ``(G) telecommunications and technology education 
                programs;
                  ``(H) expanded library service hours;
                  ``(I) programs that promote parental involvement; and
                  ``(J) programs that provide assistance to students 
                who have been truant, suspended, or expelled to allow 
                them to improve their academic achievement; and
          ``(2) establishing or enhancing programs or initiatives that 
        improve academic achievement.
  ``(d) Definition.--For the purpose of this section, a `community 
learning center' is an entity that assists students to meet State and 
local content and student performance standards in core academic 
subjects, such as reading and mathematics, by providing them with 
quality extended learning opportunities and related activities (such as 
drug and violence-prevention programs, art and music programs, 
recreational programs, technology education programs, and character 
education programs) that are linked to, and reinforce, the regular 
academic program of schools attended by the students served and is 
operated by a local educational agency, community-based organization, 
other public entity or private organization or a consortium of two or 
more such groups. Community learning centers shall operate outside 
school hours, such as before or after school or when school is not in 
session.

                     ``Subpart 3--National Programs

``SEC. 5131. FEDERAL ACTIVITIES.

  ``(a) Program Authorized.--
          ``(1) In general.--From funds made available to carry out 
        this part under section 5003(3), 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 evaluate the effectiveness of programs and 
        activities that prevent violence and the illegal use of drugs 
        by youth, that promote safety and discipline for students in 
        elementary and secondary schools, and that provide before and 
        after school supervision and academic enrichment, based on the 
        needs reported by States and local educational agencies.
          ``(2) Coordination.--The Secretary shall carry out activities 
        described in paragraph (1) directly, or through grants, 
        contracts, or cooperative agreements with public and private 
        nonprofit and for-profit organizations, and individuals, or 
        through agreements with other Federal agencies, and shall 
        coordinate such activities with other appropriate Federal 
        activities.
          ``(3) Programs.--Activities described in paragraph (1) may 
        include--
                  ``(A) demonstrations and rigorous scientifically 
                based evaluations of innovative approaches to drug and 
                violence prevention and before and after school 
                activities based on needs reported by State and local 
                educational agencies;
                  ``(B) 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;
                  ``(C) the provision of information on violence 
                prevention and school safety to the Attorney General 
                for dissemination; and
                  ``(D) continuing technical assistance to chief 
                executive officers, State agencies, and local 
                educational agencies to build capacity to develop and 
                implement high-quality, effective programs consistent 
                with the principles of effectiveness.
  ``(b) Peer Review.--The Secretary shall use a peer review process in 
reviewing applications for funds under this section.

                      ``Subpart 4--Gun Possession

``SEC. 5141. GUN-FREE SCHOOL REQUIREMENTS.

  ``(a) Requirements.--
          ``(1) State law.--Each State receiving funds under this Act 
        shall--
                  ``(A) have in effect a State law requiring each local 
                educational agency to expel from school for a period of 
                not less than one year a student who is determined to 
                have possessed a firearm in or at a school or on school 
                grounds under the jurisdiction of a local educational 
                agency in that State, except that such State law shall 
                allow the chief administering officer of such local 
                educational agency to modify such expulsion requirement 
                for a student on a case-by-case basis; and
                  ``(B) require each local educational agency to adopt 
                a policy requiring each elementary and secondary school 
                to refer to the criminal justice or juvenile 
                delinquency system any student who possesses a firearm 
                in school.
          ``(2) Construction.--Nothing in this part shall be construed 
        to prevent a State from allowing a local educational agency 
        that has expelled a student from such student's regular school 
        setting from providing educational services to such student in 
        an alternative setting.
  ``(b) 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 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 requirements of subsection (a); and
          ``(2) a description of the circumstances surrounding 
        incidents of possessions and any expulsions imposed under the 
        State law required by subsection (a)(1), including--
                  ``(A) the name of the school concerned;
                  ``(B) the number of students expelled from such 
                school for firearm possession; and
                  ``(C) the type of firearm concerned.
  ``(c) Special Rule.--The provisions of this section shall be 
construed in a manner consistent with the Individuals with Disabilities 
Education Act.
  ``(d) Definitions.--For the purpose of this subpart--
          ``(1) the term `firearm' has the same meaning given to such 
        term under section 921(a)(3) of title 18, United States Code; 
        and
          ``(2) the term `school' does not include a home school, 
        regardless of whether a home school is treated as a private 
        school under State law.

                    ``Subpart 5--General Provisions

``SEC. 5151. DEFINITIONS.

  ``For the purposes of this part, the following terms have the 
following meanings:
          ``(1) Before and after school activities.--The term `before 
        and after school activities' means academic, recreational, and 
        enrichment activities for school-age youth outside of the 
        regular school hours or school year.
          ``(2) 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)).
          ``(3) 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.
          ``(4) 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; and
                  ``(B) with respect to violence, the promotion of 
                school safety, such that students and school personnel 
                are free from violent and disruptive acts, 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.
          ``(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) School-aged population.--The term `school-aged 
        population' means the population aged 5 through 17, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data available from the Department of Commerce.
          ``(7) 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.
          ``(8) School personnel.--The term `school personnel' includes 
        teachers, principals, administrators, guidance 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.
          ``(9) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 5152. MESSAGE AND MATERIALS.

  ``(a) `Wrong and Harmful' Message.--Drug prevention programs 
supported under this title shall convey a clear and consistent message 
that the illegal use of drugs is wrong and harmful.
  ``(b) Curriculum.--The Secretary shall not prescribe the use of 
specific curricula for programs supported under this part.

``SEC. 5153. 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 title. 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 title, other than classroom instruction.

``SEC. 5154. 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, use of drugs or crime.

            ``PART B--ENHANCING EDUCATION THROUGH TECHNOLOGY

``SEC. 5201. SHORT TITLE.

  ``This part may be cited as the `Enhancing Education Through 
Technology Act of 2001'.

``SEC. 5202. PURPOSES.

  ``The purposes of this part are as follows:
          ``(1) To provide assistance to States and localities for 
        implementing innovative technology initiatives that lead to 
        increased student academic achievement and that may be 
        evaluated for effectiveness and replicated if successful.
          ``(2) To encourage the establishment or expansion of 
        initiatives, including those involving public-private 
        partnerships, designed to increase access to technology, 
        particularly in 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 effectively 
        integrate technology into curriculum that is 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 updated research in teaching and learning via 
        electronic means.
          ``(6) To support the development of electronic networks and 
        other innovative methods, such as distance learning, of 
        delivering challenging courses and curricula for students who 
        would otherwise not have access to such courses and curricula, 
        particularly in geographically remote regions.
          ``(7) To support the rigorous evaluation of programs funded 
        under this part, particularly the impact of such initiatives on 
        student academic performance, and ensure that timely 
        information on the results of such evaluations is widely 
        accessible through electronic means.
          ``(8) To support local efforts for the use of technology to 
        promote parent and family involvement in education and 
        communication among students, parents, teachers, principals, 
        and administrators.

``SEC. 5203. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

  ``(a) In General.--There are authorized to be appropriated--
          ``(1) to carry out subparts 1 and 2 of this part--
                  ``(A) $1,000,000,000 for fiscal year 2002; and
                  ``(B) such sums as may be necessary for each of 
                fiscal years 2003 through 2006; and
          ``(2) to carry out subpart 3 of this part--
                  ``(A) $24,500,000 for fiscal year 2002; and
                  ``(B) such sums as may be necessary for each of 
                fiscal years 2003 through 2006.
  ``(b) Allocation of Funds Between National and State and Local 
Initiatives.--The amount of funds made available under subsection (a) 
shall be allocated as follows:
          ``(1) Not less than 95 percent shall be made available for 
        State and local technology initiatives under subpart 1.
          ``(2) Not more than 5 percent may be made available for 
        activities of the Secretary under subpart 2, of which not more 
        than $15,000,000 may be used for the study required by section 
        5221(a)(1).

``SEC. 5204. DEFINITIONS.

  ``In this part:
          ``(1) The term `distance learning' means the transmission of 
        educational or instructional programming to geographically 
        dispersed individuals and groups via telecommunications.
          ``(2) The term `eligible local entity' means--
                  ``(A) a high-need local educational agency; or
                  ``(B) an eligible local partnership.
          ``(3) The term `eligible local partnership' means a 
        partnership that includes at least one high-need local 
        educational agency and at least one--
                  ``(A) local educational agency that can demonstrate 
                that teachers in schools served by that agency are 
                effectively integrating technology and proven teaching 
                practices into instruction, based on scientifically 
                based research, that result in improvement in--
                          ``(i) classroom instruction in the core 
                        academic subject areas; and
                          ``(ii) the preparation of students to meet 
                        challenging State academic content and student 
                        academic achievement standards;
                  ``(B) institution of higher education that is in full 
                compliance with the reporting requirements of section 
                207(f) of the Higher Education Act of 1965 (20 U.S.C. 
                1027(f)) and that has not been identified by its State 
                as low-performing under section 208 of such Act (20 
                U.S.C. 1028);
                  ``(C) for-profit business or organization that 
                develops, designs, manufactures, or produces technology 
                products or services, or has substantial expertise in 
                the application of technology; or
                  ``(D) public or private nonprofit organization with 
                demonstrated experience in the application of 
                educational technology.
          ``(4) The term `high-need local educational agency' means a 
        local educational agency that--
                  ``(A) is among the local educational agencies in the 
                State with the highest numbers or percentages of 
                children from families with incomes below the poverty 
                line, as defined by the Office of Management and Budget 
                and revised annually in accordance with section 673(2) 
                of the Community Services Block Grant Act (42 U.S.C. 
                9902(2));
                  ``(B) includes one or more schools identified under 
                section 1116; and
                  ``(C) has a substantial need for assistance in 
                acquiring and using technology.

       ``Subpart 1--State and Local Technology for Success Grants

``SEC. 5211. DETERMINATION OF AMOUNT OF STATE ALLOTMENT.

  ``(a) In General.--Except as otherwise provided in this subpart, each 
State shall be eligible to receive a grant under this subpart for a 
fiscal year in an allotment determined as follows:
          ``(1) 50 percent shall bear the same relationship to the 
        amount made available under section 5203(b)(1) for such year as 
        the amount such State received under part A for title I for 
        such year bears to the amount received for such year under such 
        part by all States.
          ``(2) 50 percent shall be determined on the basis of the 
        State's relative population of individuals age 5 through 17, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data.
  ``(b) Reservation of Funds for Bureau of Indian Affairs and Outlying 
Areas.--Of the amount made available to carry out this subpart under 
section 5203(b)(1) for a fiscal year--
          ``(1) the Secretary shall reserve \1/2\ 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; and
          ``(2) the Secretary shall reserve \1/2\ of 1 percent to 
        provide assistance under this subpart to the outlying areas.
  ``(c) Minimum Allotment.--The amount of any State's allotment under 
subsection (a) for any fiscal year may not be less than \1/2\ of 1 
percent of the amount made available under section 5203(b)(1) for such 
year.
  ``(d) Reallotment of Unused Funds.--If any State does not apply for 
an allotment under this subpart for a fiscal year, or does not use its 
entire allotment for that fiscal year, the Secretary shall reallot the 
amount of the State's allotment, or the unused portion thereof, to the 
remaining States in accordance with this section.

``SEC. 5212. USE OF ALLOTMENT BY STATE.

  ``(a) In General.--Of the amount provided to a State from its 
allotment under section 5211--
          ``(1) the State may use not more than 5 percent to carry out 
        activities under section 5215; and
          ``(2) subject to subsection (b), not less than 95 percent 
        shall be distributed by the State as follows:
                  ``(A) 60 percent of such amount shall--
                          ``(i) be awarded to local educational 
                        agencies that have submitted applications to 
                        the State under section 5214 (which, in the 
                        case of a local educational agency that is an 
                        eligible local entity, may be combined with an 
                        application for funds awarded under 
                        subparagraph (B)), in an amount that bears the 
                        same relationship to the amount made available 
                        under section 5211(a) for such year as the 
                        amount such local educational agency received 
                        under part A of title I for such year bears to 
                        the amount received for such year under such 
                        part by all local educational agencies within 
                        the State; and
                          ``(ii) be used for the activities described 
                        in section 5216.
                  ``(B) 40 percent of such amount shall be awarded 
                through a State-determined competitive process to 
                eligible local entities that have submitted 
                applications to the State under section 5214 (which, in 
                the case of an eligible local entity that is a local 
                educational agency, may be combined with an application 
                for funds provided under subparagraph (A)), to be used 
                to carry out activities consistent with activities 
                described in section 5216.
  ``(b) Continuation of Awards.--Notwithstanding section 3 of the No 
Child Left Behind Act of 2001, a State shall make continuation awards 
on multiyear grants awarded by the State under section 3132(a)(2) (as 
in effect on the day preceding the date of enactment of such Act) from 
the funds described in subsection (a)(2) for the shorter of--
          ``(1) the duration of the original grant period; or
          ``(2) two years after the date of enactment of such Act.

``SEC. 5213. STATE APPLICATIONS.

  ``(a) In General.--To be eligible to receive a grant under this 
subpart, a State shall submit an application to the Secretary 
containing a new or updated statewide, long-range strategic educational 
technology plan (which shall consider the educational technology needs 
of local educational agencies), and such other information as the 
Secretary may reasonably require, at such time and in such manner as 
the Secretary may specify.
  ``(b) Contents.--Each State application submitted under this section 
shall include the following:
          ``(1) A description of how the State will use funds provided 
        under this subpart to improve the academic achievement of all 
        students and to improve the capacity of all teachers to provide 
        instruction in the State through the use of education 
        technology.
          ``(2) A description of the State's goals for using advanced 
        technology to improve student achievement aligned to 
        challenging State academic content and student academic 
        achievement standards.
          ``(3) A description of how the State will take steps 
        (including through public and private partnerships) to ensure 
        that all students and teachers in the State, particularly those 
        residing or teaching in districts served by high-need local 
        educational agencies, will have increased access to educational 
        technology.
          ``(4) A description of--
                  ``(A) how the State will ensure that ongoing 
                integration of technology into instructional strategies 
                and school curricula in all schools in the State so 
                that technology will be fully integrated into those 
                schools by December 31, 2006; and
                  ``(B) the process and accountability measures the 
                State will use for the evaluation of such integration, 
                including whether such integration--
                          ``(i) has increased the ability of teachers 
                        to teach effectively; and
                          ``(ii) has enabled students to meet 
                        challenging State academic content and student 
                        academic achievement standards.
          ``(5) A description of how the State 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 and distance learning, 
        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 shall supplement, not supplant, State and local 
        funds.
          ``(7) A description of how the State will ensure that every 
        teacher and principal within a school funded under this subpart 
        will be computer-literate and proficient (as determined by the 
        State) by December 31, 2006.
          ``(8) A description of how the State will ensure that each 
        grant under section 5212(a)(2)(B) to an eligible local 
        applicant is of sufficient duration, size, scope, and quality 
        to carry out the purposes of this part effectively.
          ``(9) A description of how the State educational agency will 
        provide technical assistance to eligible local applicants, and 
        its capacity for providing such assistance, including 
        developing public and private partnerships under this part.
  ``(c) Deemed Approval.--A State application submitted to the 
Secretary under this section shall be deemed to be approved by the 
Secretary unless the Secretary makes a written determination, prior to 
the expiration of the 90-day period that begins on the date the 
Secretary receives the complete application, that the application does 
not reasonably meet the purposes of this subpart.
  ``(d) Disapproval.--The Secretary may issue a final disapproval of a 
State's application under this subpart only after giving the State 
notice and an opportunity for a hearing.
  ``(e) Dissemination of Information on State Applications.--The 
Secretary shall make information on State applications under this 
subpart widely available to schools and the general public, including 
through dissemination on the Internet, in a timely and user-friendly 
manner.

``SEC. 5214. LOCAL APPLICATIONS.

  ``(a) In General.--An applicant seeking to receive funds from a State 
under this subpart shall submit to the State an application containing 
a new or updated long-range local strategic educational technology plan 
consistent with the objectives of the statewide education technology 
plan described in section 5213(a), and such other information as the 
State may reasonably require, at such time, and in such manner as the 
State may specify.
  ``(b) Contents of Local Application.--Each local application 
described in this section shall include the following:
          ``(1) A description of how the applicant will use Federal 
        funds provided under this subpart to improve the academic 
        achievement of all students and to improve the capacity of all 
        teachers to provide instruction through the use of education 
        technology.
          ``(2) A description of the applicant's specific goals for 
        using advanced technology to improve student achievement 
        aligned to challenging State academic content and student 
        academic achievement standards.
          ``(3) A description of--
                  ``(A) how the applicant will take steps to ensure 
                that all students and teachers in schools served by the 
                local educational agency (particularly those in high-
                poverty and high-need schools) have increased access to 
                educational technology; and
                  ``(B) how such technology will be used to improve the 
                academic achievement for such students.
          ``(4) A description of how the applicant will promote--
                  ``(A) the utilization of teaching strategies and 
                curricula, based on scientifically based research, 
                which effectively integrate technology into 
                instruction, leading to improvements in student 
                academic achievement as measured by challenging State 
                academic content and student academic achievement 
                standards; and
                  ``(B) sustained and intensive, high-quality 
                professional development consistent with section 2033 
                (as applicable), based on scientifically based 
                research, which increases teacher and principal 
                capacity to create improved learning environments 
                through the integration of technology into instruction 
                through proven strategies and improved content as 
                described in subparagraph (A).
          ``(5) A description of how the applicant will integrate 
        technology across the curriculum and a time line for such 
        integration, including a description of how the applicant will 
        make effective use of new and emerging technologies and 
        teaching practices that are linked to such emerging 
        technologies to provide challenging content and improved 
        classroom instruction.
          ``(6) A description of how the applicant will coordinate 
        education technology activities funded under this subpart, 
        including professional development, with any such activities 
        provided under other Federal, State, and local programs, 
        including those authorized under title I, title II, title IV, 
        and the Individuals with Disabilities Education Act (20 U.S.C. 
        1400 et seq.) and the Carl D. Perkins Vocational and Technical 
        Education Act of 1998 (20 U.S.C. 2301 et seq.).
          ``(7) A description of the accountability measures and 
        process the applicant will use for the evaluation of the extent 
        to which funds provided under this subpart were effective in 
        integrating technology into school curriculum, increasing the 
        ability of teachers to teach, and enabling students to meet 
        challenging State academic content and student academic 
        achievement standards.
          ``(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 and distance learning, 
        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 what steps the applicant has taken, or 
        will take, to comply with section 5205(a)(1).
          ``(10) If requested by the State--
                  ``(A) a description of how the applicant will use 
                funds provided under this subpart in a manner that is 
                consistent with any statewide education technology 
                priorities that may be established by the State 
                consistent with this subpart; and
                  ``(B) an assurance that any technology obtained with 
                funds provided under this subpart will have 
                compatibility and interconnectivity with technology 
                obtained with funds provided previously under title III 
                (as in effect on the day preceding the date of 
                enactment of the No Child Left Behind Act of 2001), as 
                appropriate.

``SEC. 5215. STATE ACTIVITIES.

  ``(a) In General.--From funds made available under section 
5212(a)(1), a State shall carry out activities and assist local efforts 
to carry out the purposes of this subpart, which may include the 
following activities:
          ``(1) Developing, or assisting applicants in the development 
        and utilization of, innovative strategies to deliver rigorous 
        academic programs through the use of technology and distance 
        learning, and providing other technical assistance to such 
        applicants throughout the State, with a priority 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 applicants in providing sustained and 
        intensive, high-quality professional development based on 
        scientifically based research in the integration of advanced 
        technologies (including emerging technologies) into curriculum 
        and in using those technologies to create new learning 
        environments, including training in the use of technology to--
                  ``(A) access data and resources to develop curricula 
                and instructional materials;
                  ``(B) enable teachers--
                          ``(i) to use the Internet 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 subject areas, which effectively 
                prepare students to meet challenging State academic 
                content and student academic achievement standards.
          ``(4) Assisting applicants in providing all students 
        (including students with disabilities and students with limited 
        English proficiency) and teachers with access to educational 
        technology.
          ``(5) Establishing or expanding access to technology in areas 
        served by high-need local educational agencies, with special 
        emphasis on access provided through technology centers in 
        partnership with libraries and with the support of the private 
        sector.
          ``(6) Developing enhanced performance measurement systems to 
        determine the effectiveness of education technology programs 
        funded under this subpart, particularly in determining the 
        extent to which education technology funded under this subpart 
        has been successfully integrated into teaching strategies and 
        school curriculum, has increased the ability of teachers to 
        teach, and has enabled students to meet challenging State 
        academic content and student academic achievement standards.
          ``(7) Collaborating with other States on distance learning, 
        including making advanced courses available to students who 
        would otherwise not have access to such courses.
  ``(b) Limitation on Administrative Costs.--Of the 5 percent of the 
State's allotment under section 5211 which may be used to carry out 
activities under this section, not more than 40 percent may be used by 
the State for administrative costs.

``SEC. 5216. LOCAL ACTIVITIES.

  ``(a) Professional Development.--A recipient of funds made available 
under section 5212(a)(2)(A) shall use not less than 20 percent of such 
funds to provide sustained and intensive, high-quality professional 
development, consistent with section 2033 (as applicable), based on 
scientifically based research in the integration of advanced 
technologies (including emerging technologies) into curriculum and in 
using those technologies to create new learning environments, including 
professional development in the use of technology to--
          ``(1) access data and resources to develop curricula and 
        instructional materials;
          ``(2) enable teachers--
                  ``(i) to use the Internet to communicate with 
                parents, other teachers, principals, and 
                administrators; and
                  ``(ii) to retrieve Internet-based learning resources; 
                and
          ``(3) lead to improvements in classroom instruction in the 
        core academic subject areas, which effectively prepare students 
        to meet challenging State academic content and student academic 
        achievement standards.
  ``(b) Waiver.--Subsection (a) does not apply to a recipient of funds 
under section 5212(a)(2)(A) that demonstrates, to the satisfaction of 
the State, that such recipient already provides sustained and 
intensive, high-quality professional development based on 
scientifically based research in the integration of technology 
(including emerging technologies) into the curriculum.
  ``(c) Other Activities.--In addition to the activities described in 
subsection (a), a recipient of funds distributed by a State under 
section 5212(a)(2)(A) shall use such funds to carry out other 
activities consistent with this subpart, which may include the 
following:
          ``(1) Adapting or expanding existing and new applications of 
        technology to enable teachers to increase student academic 
        achievement through the use of teaching practices and advanced 
        technologies that are based on scientifically based research 
        and are designed to prepare students to meet challenging State 
        academic content and student academic achievement standards, 
        and for developing and utilizing innovative strategies to 
        deliver rigorous academic programs.
          ``(2) Expanding, acquiring, implementing, applying, and 
        maintaining education technology as a means to improve the 
        academic achievement of all students.
          ``(3) The establishment or expansion of initiatives, 
        particularly those involving public-private partnerships, 
        designed to increase access to technology for students and 
        teachers, with special emphasis on the access of high-need 
        local educational agencies to technology.
          ``(4) Using technology to promote parent and family 
        involvement, and support communications between students, 
        parents, and teachers.
          ``(5) Acquiring proven and effective curricula that include 
        integrated technology and are designed to help students achieve 
        challenging State academic content and student academic 
        achievement standards.
          ``(6) Using technology to collect, manage, and analyze data 
        to inform school improvement efforts.
          ``(7) Implementing enhanced performance measurement systems 
        to determine the effectiveness of education technology programs 
        funded under this subpart, particularly in determining the 
        extent to which education technology funded under this subpart 
        has been successfully integrated into teaching strategies and 
        school curriculum, has increased the ability of teachers to 
        teach, and has enabled students to meet challenging State 
        academic content and student academic achievement standards.
          ``(8) Preparing one or more teachers in elementary 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.
          ``(9) Establishing or expanding access to technology in areas 
        served by high-need local educational agencies, with special 
        emphasis for access provided through technology centers in 
        partnership with libraries and with the support of the private 
        sector.

              ``Subpart 2--National Technology Activities

``SEC. 5221. NATIONAL ACTIVITIES.

  ``(a) In General.--Using funds made available under section 
5203(b)(2), the Secretary--
          ``(1) shall--
                  ``(A) conduct an independent, long-term study, 
                utilizing scientifically based research methods and 
                control groups, on the effect of educational technology 
                on improving student academic achievement;
                  ``(B) include in the study an identification of uses 
                of educational technology (including how teachers can 
                integrate technology into the curricula) that have a 
                measurable positive impact on student achievement;
                  ``(C) establish an independent review panel to advise 
                the Secretary on methodological and other issues that 
                arise in conducting this long-term study; and
                  ``(D) submit to the Congress interim reports, when 
                appropriate, and a final report, to be submitted not 
                later than 6 months before the end of fiscal year 2006, 
                on the findings of the study;
          ``(2) may fund national technology initiatives that are 
        supported by scientifically based research and utilize 
        technology in education, through the competitive award of 
        grants or contracts, pursuant to a peer review process, to 
        States, local educational agencies, eligible local entities, 
        institutions of higher education, public agencies, and private 
        nonprofit or for-profit agencies; and
          ``(3) may provide technical assistance (directly or through 
        the competitive award of grants or contracts) to States, local 
        educational agencies, and other recipients of funds under this 
        part in order to assist such States, local educational 
        agencies, and other recipients to achieve the purposes of this 
        part.
  ``(b) National Technology Initiatives.--
          ``(1) Use of funds.--In funding national technology 
        initiatives under subsection (a)(2), the Secretary--
                  ``(A) shall place a priority on projects that--
                          ``(i) develop innovative models using 
                        electronic networks or other forms of distance 
                        learning to provide challenging courses that 
                        are otherwise not readily available to students 
                        in a particular school district, particularly 
                        in rural areas; or
                          ``(ii) increase access to technology to 
                        students served by high-need local educational 
                        agencies; and
                  ``(B) shall, in order to identify effective uses of 
                educational technology that have a measurable positive 
                impact on student achievement and as specified in 
                paragraph (3)--
                          ``(i) develop tools and provide resources and 
                        support, including technical assistance, for 
                        recipients of funds under subsection (a)(2) to 
                        effectively evaluate their activities; and
                          ``(ii) disseminate the evaluations made under 
                        paragraph (2)(A)(ii).
          ``(2) Requirements for recipients of funds.--
                  ``(A) Application.--In order to receive a grant or 
                contract under subsection (a)(2), an entity shall 
                submit an application to the Secretary (at such time 
                and in such form as the Secretary may require), and 
                shall include in the application--
                          ``(i) a description of the project proposed 
                        to be carried out with the grant or contract 
                        and how it would carry out the purposes of 
                        subsection (a)(2); and
                          ``(ii) a detailed plan for an independent 
                        evaluation, supported by scientifically based 
                        research principles, of the project to 
                        determine the impact on the academic 
                        achievement of students served under such 
                        project, as measured by challenging State 
                        academic content and student academic 
                        achievement standards.
                  ``(B) Non-federal share.--
                          ``(i) In general.--Subject to clauses (ii) 
                        and (iii), the Secretary may require any 
                        recipient of a grant or contract under 
                        subsection (a)(2) to share in the cost of the 
                        activities assisted under such grant or 
                        contract, which may be in the form of cash or 
                        in-kind contributions, fairly valued.
                          ``(ii) Increase.--The Secretary may increase 
                        the non-Federal share required of a recipient 
                        of a grant or contract under subsection (a)(2) 
                        after the first year such recipient receives 
                        funds under such grant or contract.
                          ``(iii) Maximum.--The non-Federal share 
                        required under this subsection may not exceed 
                        50 percent of the cost of the activities 
                        assisted under a grant or contract under this 
                        subpart.
                          ``(iv) Notice.--The Secretary shall publish, 
                        in the Federal Register, the non-Federal share 
                        required under this subparagraph.
          ``(3) Evaluation and dissemination.--The Secretary shall make 
        information on each project funded with a grant or contract 
        under subsection (a)(2) widely available to schools and the 
        general public, including through dissemination on the 
        Internet, in a timely and user-friendly manner. This 
        information shall, at a minimum, include--
                  ``(A) upon the awarding of such a grant or contract 
                under subsection (a)(2), the identification of the 
                grant or contract recipient, the amount of the grant or 
                contract, the stated goals of the grant or contract, 
                the methods by which the grant or contract will be 
                evaluated in meeting such stated goals, and the 
                timeline for meeting such goals;
                  ``(B) not later than 3 months after the completion of 
                the first year of the project period, information on 
                the progress of the grant or contract recipient in 
                carrying out the grant or contract, including a 
                detailed description of the use of the funds provided, 
                the extent to which the stated goals have been reached, 
                and the results (or progress of) the evaluation of the 
                project; and
                  ``(C) not later than 3 months after the completion of 
                the second year of the project period (and updated 
                thereafter as appropriate), a followup to the 
                information described in subparagraph (B).

              ``Subpart 3--Ready to Learn, Ready to Teach

``SEC. 5231. READY TO LEARN TELEVISION.

  ``(a) Program Authorized.--
          ``(1) In general.--The Secretary shall award grants to or 
        enter into contracts or cooperative agreements with eligible 
        entities described in paragraph (3) to--
                  ``(A) 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) 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 accompanying support materials and 
                services that directly promote the effective use of 
                such programming;
                  ``(C) facilitate the development of programming and 
                digital content especially designed for nationwide 
                distribution over digital broadcasting channels and the 
                Internet, containing Ready to Learn-based children's 
                programming and resources for parents and caregivers;
                  ``(D) enable such entities to contract with other 
                entities (such as public telecommunications entities) 
                so that programs under this section are disseminated 
                and distributed by the most appropriate distribution 
                technologies to the widest possible audience 
                appropriate to be served by the programming; and
                  ``(E) develop and disseminate training and support 
                materials, including interactive programs and programs 
                adaptable to distance learning technologies which are 
                designed to--
                          ``(i) promote school readiness; and
                          ``(ii) promote the effective use of 
                        programming developed under subparagraphs (B) 
                        and (C) among parents, Head Start providers, 
                        Even Start and providers of family literacy 
                        services, child care providers, early childhood 
                        development personnel, and elementary school 
                        teachers, public libraries, and after school 
                        program personnel caring for preschool and 
                        elementary school children.
          ``(2) Availability.--In making grants, contracts, or 
        cooperative agreements under this subsection, the Secretary 
        shall ensure that recipients increase the effective use of the 
        programming under this section by making it widely available 
        with support materials, as appropriate, to young children, 
        their parents, child care workers, Head Start providers, Even 
        Start and providers of family literacy services.
          ``(3) Eligible entities described.--In this section, an 
        `eligible entity' means a nonprofit entity (including a public 
        telecommunications entity) which is able--
                  ``(A) to demonstrate a capacity for the development 
                and national distribution of educational and 
                instructional television programming of high quality 
                which is accessible by a large majority of 
                disadvantaged preschool and elementary school children; 
                and
                  ``(B) to demonstrate--
                          ``(i) a capacity to contract with the 
                        producers of children's television programming 
                        for the purpose of developing educational 
                        television programming of high quality which is 
                        accessible by a large majority of disadvantaged 
                        preschool and elementary school children, and
                          ``(ii) consistent with the entity's mission 
                        and nonprofit nature, a capacity to negotiate 
                        such contracts in a manner which returns to the 
                        entity an appropriate share of any ancillary 
                        income from sales of any program-related 
                        products.
          ``(4) Cap on administrative costs.--An entity receiving a 
        grant, contract, or cooperative agreement from the Secretary 
        under this subsection may not use more than 5 percent of the 
        amounts received under the grant, contract, or cooperative 
        agreement for the expenses of administering the grant, 
        contract, or cooperative agreement.
          ``(5) Coordination of activities.--An entity receiving a 
        grant, contract, or cooperative agreement from the Secretary 
        under this subsection shall work with the Secretary and the 
        Secretary of Health and Human Services to--
                  ``(A) maximize the utilization by preschool and 
                elementary school children of the programming under 
                this section and to make such programming widely 
                available to federally funded programs serving such 
                populations; and
                  ``(B) coordinate with Federal programs that have 
                major training components for early childhood 
                development (including Head Start, Even Start, family 
                literacy services, and State training activities funded 
                under the Child Care Development Block Grant Act of 
                1990 (42 U.S.C. 9858 et seq.)) regarding the 
                availability and utilization of materials developed 
                with funds provided under this section to enhance 
                parent and child care provider skills in early 
                childhood development and education.
  ``(b) Applications.--Any entity desiring a grant, contract, or 
cooperative agreement under subsection (a) shall submit an application 
to the Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require.
  ``(c) Report and Evaluation..--
          ``(1) Annual report by grant recipients to secretary.--Each 
        entity receiving funds under this section shall prepare and 
        submit to the Secretary an annual report which contains such 
        information as the Secretary may require. At a minimum, the 
        report shall describe the program activities undertaken with 
        funds received under this section, including information 
        regarding--
                  ``(A) the programming that has been developed 
                directly or indirectly by the 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 such materials are distributed to 
                consumers and users of the programming;
                  ``(C) the means by which the programming has been 
                distributed, including the distance learning 
                technologies that have been utilized to make 
                programming available and the geographic distribution 
                achieved through such technologies; and
                  ``(D) the initiatives undertaken by the entity to 
                develop public-private partnerships to secure non-
                Federal support for the development and 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 
        on the activities funded and carried out under this section, 
        and shall include in the report--
                  ``(A) a summary of the programming developed using 
                funds provided under this section; and
                  ``(B) a description of the training materials 
                developed using funds provided under this section, 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.
  ``(d) Funding Rule.--Not less than 60 percent of the amounts 
authorized to be appropriated under section 5233 for any fiscal year 
shall be used to carry out subparagraphs (B) and (C) of subsection 
(a)(1).

``SEC. 5232. TELECOMMUNICATIONS PROGRAM.

  ``(a) In General.--The Secretary may carry out any of the following 
activities:
          ``(1) Awarding grants to a nonprofit telecommunications 
        entity (or a partnership of such entities) for the purpose of 
        carrying out a national telecommunications-based program to 
        improve the teaching of core academic subjects and to assist 
        elementary and secondary school teachers in preparing all 
        students to achieve State academic content standards.
          ``(2) Awarding grants to or entering into contracts or 
        cooperative agreements with a local public telecommunications 
        entity to develop, produce, and distribute educational and 
        instructional video programming which is designed for use by 
        elementary and secondary school students, created for or 
        adaptable to State academic content standards, and capable of 
        distribution through digital broadcasting and school digital 
        networks.
  ``(b) Applications.--
          ``(1) In general.--Any telecommunications entity or 
        partnership of such entities desiring a grant under this 
        section shall submit an application to the Secretary.
          ``(2) Specific requirements for national telecommunications-
        based program.--Each application for a grant under subsection 
        (a)(1) shall--
                  ``(A) demonstrate that the applicant will use the 
                existing publicly funded telecommunications 
                infrastructure, the Internet, and school digital 
                networks (where available) to deliver video, voice, and 
                data in an integrated service to train teachers in the 
                use of materials and learning technologies for 
                achieving State academic content standards;
                  ``(B) assure that the program for which assistance is 
                sought will be conducted in cooperation with States as 
                appropriate, local educational agencies, and State or 
                local nonprofit public telecommunications entities;
                  ``(C) assure that a significant portion of the 
                benefits available for elementary and secondary schools 
                from the program for which assistance is sought will be 
                available to schools of local educational agencies 
                which 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.
  ``(c) Approval of Applications; Number of Demonstration Sites.--In 
approving applications under this section, the Secretary shall assure 
that--
          ``(1) the national telecommunications-based program under 
        subsection (a)(1) is conducted at elementary and secondary 
        school sites in at least 15 States; and
          ``(2) grants under subsection (a)(2) are awarded on a 
        competitive basis and for a period of 3 years to entities 
        which--
                  ``(A) enter into multiyear collaborative arrangements 
                for content development with State educational 
                agencies, local educational agencies, institutions of 
                higher education, businesses, or other agencies and 
                organizations, and
                  ``(B) contribute non-Federal matching funds 
                (including funds provided for transitions to digital 
                broadcasting as well as in-kind contributions) to the 
                activities assisted with the grant in an amount not 
                less than 100 percent of the amount of the grant.

                     ``PART C--CHARACTER EDUCATION

``SEC. 5301. CHARACTER EDUCATION PROGRAM.

  ``(a) Program Authorized.--
          ``(1) In general.--The Secretary may make grants to State 
        educational agencies, local educational agencies, or consortia 
        of such agencies for the design and implementation of character 
        education programs that--
                  ``(A) can be integrated into State academic content 
                standards for the core academic subjects; and
                  ``(B) can be carried out in conjunction with other 
                educational reform efforts.
          ``(2) Duration.--Each grant under this section shall be made 
        for a period not to exceed 5 years, of which the grant 
        recipient may not use more than 1 year for planning and program 
        design.
  ``(b) Contracts Under Program.--
          ``(1) Evaluation.--Each agency or consortium receiving 
        assistance under this section may contract with outside 
        sources, including institutions of higher education and private 
        and nonprofit organizations (including religious 
        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)(1).
          ``(2) Materials and program development.--Each agency or 
        consortium receiving assistance under this section may contract 
        with outside sources, including institutions of higher 
        education and private and nonprofit organizations (including 
        religious 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 curriculum and teaching methods of schools where 
                the program is carried out.
  ``(c) Elements of Character.--
          ``(1) Selection.--
                  ``(A) In general.--Each agency or consortium 
                receiving assistance under this section may select the 
                elements of character that will be taught under the 
                program for which the assistance is made available.
                  ``(B) Consideration of views.--In selecting elements 
                of character under paragraph (1), the agency or 
                consortium shall consider the views of the parents or 
                guardians of the students to be taught under the 
                program.
          ``(2) Example elements.--Elements of character selected under 
        this subsection may include any of the following:
                  ``(A) Trustworthiness.
                  ``(B) Respect.
                  ``(C) Responsibility.
                  ``(D) Fairness.
                  ``(E) Caring.
                  ``(F) Citizenship.
                  ``(G) Giving.
  ``(d) Application.--
          ``(1) In general.--Each agency or consortium seeking 
        assistance 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 assistance 
        under this section shall include information that--
                  ``(A) demonstrates that the program for which the 
                assistance is sought has clear goals and objectives 
                that are based on scientifically based research;
                  ``(B) describes the activities that will be carried 
                out with the assistance and how such activities will 
                meet the goals and objectives described in paragraph 
                (1); and
                  ``(C) describes how the program for which the 
                assistance is sought will be linked to other efforts to 
                improve educational achievement, including--
                          ``(i) broader educational reforms that are 
                        being instituted by the applicant or its 
                        partners; and
                          ``(ii) applicable State academic content 
                        standards for student achievement.
  ``(e) Selection of Recipients.--
          ``(1) Peer review.--
                  ``(A) In general.--In selecting agencies or consortia 
                to receive assistance under this section from among the 
                applicants for such assistance, the Secretary shall use 
                a peer review process that includes the participation 
                of experts in the field of character education.
                  ``(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 of parental, student, and community 
                involvement in the program; and
                  ``(B) the likelihood that the goals of the program 
                will be realistically 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.
  ``(f) Evaluations.--
          ``(1) In general.--As a condition of receiving assistance 
        under this section, the Secretary shall require each agency or 
        consortium receiving such assistance to transmit to the 
        Secretary, not later than 5 years after such receipt, a report 
        containing an evaluation of each program assisted.
          ``(2) Attainment of goals and objectives.--In conducting an 
        evaluation referred to in paragraph (1), each agency or 
        consortium shall evaluate the degree to which each program for 
        which assistance was made available attained the goals and 
        objectives for the program as described in the application for 
        assistance submitted under subsection (d).
          ``(3) Dissemination.--The Secretary shall--
                  ``(A) make each evaluation received under this 
                subsection publicly available; and
                  ``(B) provide public notice (through such means as 
                the Internet, the media, and public agencies) of the 
                availability of each such evaluation after it is 
                received by the Secretary.
  ``(g) Matching Funds.--As a condition of receiving assistance under 
this section, the Secretary may require that each agency or consortium 
receiving such assistance provide matching funds from non-Federal 
sources.

``SEC. 5302. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this part 
$25,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of fiscal years 2003 through 2006.''.

     ``PART D--ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS

``SEC. 5401. ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS.

  ``(a) Findings.--Congress finds as follows:
          ``(1) The Surgeon General reported in January 2001 that 1 in 
        10 children suffer from mental illnesses severe enough to 
        impair development and fewer than 1 in 5 children get treatment 
        for mental illnesses.
          ``(2) The Surgeon General reported that the burden of 
        suffering by children with mental health needs and their 
        families has created a health crisis in this country. Growing 
        numbers of children are suffering needlessly because their 
        emotional, behavioral, and developmental needs are not being 
        met by the very institutions and systems that were created to 
        take care of them.
          ``(3) As a result of the concern about the failure of the 
        healthcare system to reach children and adolescents with mental 
        illnesses, there is currently great interest in developing new 
        models for the delivery of mental health and counseling 
        services that can reach underserved groups efficiently.
          ``(4) Schools are a sensible point of intervention because of 
        their central position in many children's lives and 
        development, especially when families are unable to assume a 
        leading role.
          ``(5) School-based mental health and counseling services 
        allow for the identification of children in need of treatment 
        much earlier in their development.
          ``(6) Establishing mental health and counseling services in 
        schools provides access to underserved youth with or at risk of 
        emotional or behavioral problems.
          ``(7) The Surgeon General's 2000 report on youth violence 
        concludes that effective treatment can divert a significant 
        proportion of delinquent and violent youths from future 
        violence and crime.
          ``(8) Mental health and counseling services can play an 
        important role in violence prevention on all levels, including 
        preventing problem behaviors from developing; identifying and 
        serving specific, at-risk populations; and reducing the 
        deleterious effects of violence on victims and witnesses.
          ``(9) An evaluation of the model program for the elementary 
        school counseling demonstration program established pursuant to 
        this section prior to the date of enactment of the Elementary 
        and Secondary Counseling Improvement Act of 2001 found that the 
        number of referrals to the principal's office decreased by 
        nearly half, the use of force, weapons, and threatening of 
        others also decreased, school suspensions were reduced, and 
        students felt safer.
          ``(10) The report produced by the Institute of Medicine, 
        `Schools and Health: Our Nation's Investment', recommended a 
        student-to-school counselor ratio of 250:1, student-to-school 
        psychologist ratio of 1000:1, and a student-to-school social 
        worker ratio of 800:1. The United States average student-to-
        counselor ratio is 551:1. Ratios for school psychologists and 
        school social workers also exceed the recommended levels.
  ``(b) Grants Authorized.--
          ``(1) In general.--The Secretary may use funds provided under 
        this section to award grants to local educational agencies to 
        enable such agencies to establish or expand elementary and 
        secondary school counseling programs which meet the 
        requirements of subsection (c).
          ``(2) Priority.--In awarding grants under this section, the 
        Secretary shall give special consideration to applications 
        describing programs which--
                  ``(A) demonstrate the greatest need for new or 
                additional counseling services among children in the 
                schools served by the applicant, 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 
        urban, suburban, and rural local educational agencies.
          ``(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 program 
        shall not exceed $400,000 for any fiscal year.
          ``(6) Supplement.--Assistance made available under this 
        section shall be used to supplement, and may not supplant, 
        other Federal, State, or local funds used for providing school-
        based counseling and mental health services to students.
  ``(c) Requirements for Counseling Programs.--Each program funded 
under this section shall--
          ``(1) be comprehensive in addressing the counseling and 
        educational needs of all students;
          ``(2) use a developmental, preventive approach to counseling;
          ``(3) increase the range, availability, quantity, and quality 
        of counseling services in the elementary and secondary schools 
        of the local educational agency;
          ``(4) expand counseling services through qualified school 
        counselors, school psychologists, school social workers, and 
        child and adolescent psychiatrists;
          ``(5) 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;
          ``(6) provide counseling services in settings that meet the 
        range of needs of students;
          ``(7) include inservice training, including training for 
        teachers in appropriate identification and intervention 
        techniques for disciplining and teaching students at risk of 
        violent behavior, by school counselors, school psychologists, 
        school social workers, and child and adolescent psychiatrists;
          ``(8) involve parents of participating students in the 
        design, implementation, and evaluation of a counseling program;
          ``(9) involve community groups, social service agencies, or 
        other public or private entities in collaborative efforts to 
        enhance the program;
          ``(10) evaluate annually the effectiveness and outcomes of 
        the counseling services and activities assisted under this 
        section;
          ``(11) ensure a team approach to school counseling in the 
        elementary and secondary schools of 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
          ``(12) ensure that school counselors, school psychologists, 
        school social workers, or child and adolescent psychiatrists 
        paid from funds made available under this section spend a 
        majority of their time at the school in activities directly 
        related to the counseling process.
  ``(d) Limitation on Administrative Costs.--Not more than 3 percent of 
the amounts made available under this section in any fiscal year may be 
used for administrative costs to carry out this section.
  ``(e) Definitions.--For purposes of this section--
          ``(1) the term `school counselor' means an individual who has 
        documented competence in counseling children and adolescents in 
        a school setting and who--
                  ``(A) possesses State licensure or certification 
                granted 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;
          ``(2) the term `school psychologist' means an individual 
        who--
                  ``(A) possesses 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 shall be in the school setting;
                  ``(B) possesses State licensure or certification in 
                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;
          ``(3) 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) is licensed or certified by the State in which 
                services are provided; or
                  ``(C) 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; 
                and
          ``(4) the term `child and adolescent psychiatrist' means an 
        individual who--
                  ``(A) possesses State medical licensure; and
                  ``(B) has completed residency training programs in 
                general and child and adolescent psychiatry.
  ``(f) Report.--Not later than 1 year after assistance is made 
available under this section, the Secretary shall make publicly 
available the information from applicants regarding the ratios of 
students to school counselors, students to school social workers, and 
students to school psychologists.
  ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2002 through 2006.

                      ``PART E--MENTORING PROGRAMS

``SEC. 5501. DEFINITIONS.

  ``In this part, the following definitions apply:
          ``(1) Child with greatest need.--The term `child with 
        greatest need' means a child at risk of educational failure, 
        dropping out of school, or involvement in criminal or 
        delinquent activities, or that has lack of strong positive 
        adult role models.
          ``(2) Mentor.--The term `mentor' means an individual who 
        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.
          ``(3) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.

``SEC. 5502. PURPOSES.

  ``The purposes of this part are to make assistance available to 
promote mentoring programs for children with greatest need--
          ``(1) to assist such children in receiving support and 
        guidance from a caring adult;
          ``(2) to improve the academic performance of such children;
          ``(3) to improve interpersonal relationships between such 
        children and their peers, teachers, other adults, and family 
        members;
          ``(4) to reduce the dropout rate of such children; and
          ``(5) to reduce juvenile delinquency and involvement in gangs 
        by such children.

``SEC. 5503. GRANT PROGRAM.

  ``(a) In General.--In accordance with this section, the Secretary may 
make grants to eligible entities to assist such entities in 
establishing and supporting mentoring programs and activities that--
          ``(1) are designed to link children with greatest need 
        (particularly such children living in rural areas, high crime 
        areas, or troubled home environments, or such children 
        experiencing educational failure) with responsible adults, 
        who--
                  ``(A) have received training and support in 
                mentoring;
                  ``(B) have been screened using appropriate reference 
                checks, child and domestic abuse record checks, and 
                criminal background checks; and
                  ``(C) are interested in working with youth; and
          ``(2) are intended to achieve 1 or more of the following 
        goals:
                  ``(A) Provide general guidance to children with 
                greatest need.
                  ``(B) Promote personal and social responsibility 
                among children with greatest need.
                  ``(C) Increase participation by children with 
                greatest need in, and enhance their ability to benefit 
                from, elementary and secondary education.
                  ``(D) Discourage illegal use of drugs and alcohol, 
                violence, use of dangerous weapons, promiscuous 
                behavior, and other criminal, harmful, or potentially 
                harmful activity by children with greatest need.
                  ``(E) Encourage children with greatest need to 
                participate in community service and community 
                activities.
                  ``(F) Encourage children with greatest need to set 
                goals for themselves or to plan for their futures, 
                including encouraging such children to make graduation 
                from secondary school a goal and to make plans for 
                postsecondary education or training.
                  ``(G) Discourage involvement of children with 
                greatest need in gangs.
  ``(b) Eligible Entities.--Each of the following is an entity eligible 
to receive a grant under subsection (a):
          ``(1) A local educational agency.
          ``(2) A nonprofit, community-based organization.
          ``(3) A partnership between an agency referred to in 
        paragraph (1) and an organization referred to in paragraph (2).
  ``(c) Use of Funds.--
          ``(1) In general.--Each entity receiving a grant under this 
        section shall use the grant funds for activities that establish 
        or implement a mentoring program, including--
                  ``(A) hiring of mentoring coordinators and support 
                staff;
                  ``(B) providing for the professional development of 
                mentoring coordinators and support staff;
                  ``(C) recruitment, screening, and training of adult 
                mentors;
                  ``(D) reimbursement of schools, if appropriate, for 
                the use of school materials or supplies in carrying out 
                the program;
                  ``(E) dissemination of outreach materials;
                  ``(F) evaluation of the program using scientifically 
                based methods; and
                  ``(G) such other activities as the Secretary may 
                reasonably prescribe by rule.
          ``(2) Prohibited uses.--Notwithstanding paragraph (1), an 
        entity receiving a grant under this section may not use the 
        grant funds--
                  ``(A) to directly compensate mentors;
                  ``(B) to obtain educational or other materials or 
                equipment that would otherwise be used in the ordinary 
                course of the entity's operations;
                  ``(C) to support litigation of any kind; or
                  ``(D) for any other purpose reasonably prohibited by 
                the Secretary by rule.
  ``(d) Term of Grant.--Each grant made under this section shall be 
available for expenditure for a period of 3 years.
  ``(e) Application.--Each eligible entity seeking a grant under this 
section shall submit to the Secretary an application that includes--
          ``(1) a description of the mentoring plan the applicant 
        proposes to carry out with such grant;
          ``(2) information on the children expected to be served by 
        the mentoring program for which such grant is sought;
          ``(3) a description of the mechanism that applicant will use 
        to match children with mentors based on the needs of the 
        children;
          ``(4) an assurance that no mentor will be assigned to mentor 
        so many children that the assignment would undermine either the 
        mentor's ability to be an effective mentor or the mentor's 
        ability to establish a close relationship (a one-on-one 
        relationship, where practicable) with each mentored child;
          ``(5) an assurance that mentoring programs will provide 
        children with a variety of experiences and support, including--
                  ``(A) emotional support;
                  ``(B) academic assistance; and
                  ``(C) exposure to experiences that children might not 
                otherwise encounter on their own;
          ``(6) an assurance that mentoring programs will be monitored 
        to ensure that each child assigned a mentor benefits from that 
        assignment and that there will be a provision for the 
        assignment of a new mentor if the relationship between the 
        original mentor is not beneficial to the child;
          ``(7) information on the method by which mentors and children 
        will be recruited to the mentor program;
          ``(8) information on the method by which prospective mentors 
        will be screened;
          ``(9) information on the training that will be provided to 
        mentors; and
          ``(10) information on the system that the applicant will use 
        to manage and monitor information relating to the program's 
        reference checks, child and domestic abuse record checks, and 
        criminal background checks and to its procedure for matching 
        children with mentors.
  ``(f) Selection.--
          ``(1) Competitive basis.--In accordance with this subsection, 
        the Secretary shall select grant recipients from among 
        qualified applicants on a competitive basis.
          ``(2) Priority.--In selecting grant recipients under 
        paragraph (1), the Secretary shall give priority to each 
        applicant that--
                  ``(A) serves children with greatest need living in 
                rural areas, high crime areas, or troubled home 
                environments, or who attend schools with violence 
                problems;
                  ``(B) provides background screening of mentors, 
                training of mentors, and technical assistance in 
                carrying out mentoring programs;
                  ``(C) proposes a mentoring program under which each 
                mentor will be assigned to not more children than the 
                mentor can serve effectively; or
                  ``(D) proposes a school-based mentoring program.
          ``(3) Other considerations.--In selecting grant recipients 
        under paragraph (1), the Secretary shall also consider--
                  ``(A) the degree to which the location of the 
                programs proposed by each applicant contributes to a 
                fair distribution of programs with respect to urban and 
                rural locations;
                  ``(B) the quality of the mentoring programs proposed 
                by each applicant, including--
                          ``(i) the resources, if any, the applicant 
                        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 applicant's mentoring program;
                          ``(iii) the degree to which the applicant can 
                        ensure that mentors will develop longstanding 
                        relationships with the children they mentor;
                          ``(iv) the degree to which the applicant will 
                        serve children with greatest need in the 4th, 
                        5th, 6th, 7th, and 8th grades; and
                          ``(v) the degree to which the program will 
                        continue to serve children from the 4th grade 
                        through graduation from secondary school; and
                  ``(C) the capability of each applicant to effectively 
                implement its mentoring program.
          ``(4) Grant to each state.--Notwithstanding any other 
        provision of this subsection, in selecting grant recipients 
        under paragraph (1), the Secretary shall select not less than 1 
        grant recipient from each State for which there is a qualified 
        applicant.
  ``(g) Model Screening Guidelines.--
          ``(1) 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 
        program participants specific model guidelines for the 
        screening of mentors who seek to participate in programs to be 
        assisted under this part.
          ``(2) 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.

``SEC. 5504. STUDY BY GENERAL ACCOUNTING OFFICE.

  ``(a) In General.--The Comptroller General of the United States shall 
conduct a study to identify successful school-based mentoring programs, 
and the elements, policies, or procedures of such programs that can be 
replicated.
  ``(b) Report.--Not later than 3 years after the date of enactment of 
the Mentoring for Success Act, the Comptroller General shall submit a 
report to the Secretary and Congress containing the results of the 
study conducted under this section.
  ``(c) Use of Information.--The Secretary shall use information 
contained in the report referred to in subsection (b)--
          ``(1) to improve the quality of existing mentoring programs 
        assisted under this part and other mentoring programs assisted 
        under this Act; and
          ``(2) to develop models for new programs to be assisted or 
        carried out under this Act.

``SEC. 5505. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out section 5503 
$50,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of fiscal years 2003 through 2006.''.

                      TITLE VI--IMPACT AID PROGRAM

SEC. 601. PAYMENTS UNDER SECTION 8002 WITH RESPECT TO FISCAL YEARS IN 
                    WHICH INSUFFICIENT FUNDS ARE APPROPRIATED.

  (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 
        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 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 purposes 
        of calculating a local educational agency's maximum amount 
        under subsection (b)''.
  (d) 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. 602. CALCULATION OF PAYMENT UNDER SECTION 8003 FOR SMALL LOCAL 
                    EDUCATIONAL AGENCIES.

  Section 8003(b)(3)(B)(iv) (20 U.S.C. 7703(b)(3)(B)(iv)) is amended by 
inserting after ``of the State in which the agency is located'' the 
following: ``or less than the average per pupil expenditure of all the 
States''.

SEC. 603. CONSTRUCTION.

  (a) School Facility Emergency and Modernization Grants.--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 for emergency grants and, among such 
        applications for emergency grants, shall give priority to those 
        applications of local educational agencies based on the 
        severity of the emergency.
          ``(3) Eligibility requirements.--
                  ``(A) Emergency grants.--A local educational agency 
                is eligible to receive an emergency grant under this 
                subsection only if--
                          ``(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 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 this subsection only if--
                          ``(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) meets the requirements of 
                        subclause (I), (II), or (III) of subparagraph 
                        (A)(i);
                          ``(ii) the agency is eligible to receive 
                        assistance under section 8002 for the fiscal 
                        year and 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; and
                          ``(iii) the agency has facility needs 
                        resulting from actions of the Federal 
                        Government, such as enrollment increases due to 
                        the expansion of Federal activities, housing 
                        privatization, or the acquisition of Federal 
                        property.
                  ``(C) 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
                          ``(ii) has minimal capacity to issue bonds if 
                        the total assessed value of real property that 
                        may be taxed for school purposes is not less 
                        than $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 
                        section 8007(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
                                  ``(II) the agency's inability to 
                                maximize the use of 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)--
                                          ``(aa) shall not exceed 50 
                                        percent of the total cost of 
                                        the project to be assisted 
                                        under this subsection; and
                                          ``(bb) shall not exceed 
                                        $3,000,000 during any 5-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; or
                                  ``(II) stadiums or other facilities 
                                primarily used for athletic contests, 
                                exhibitions, or other events for which 
                                admission is charged to the general 
                                public.
                          ``(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.
                  ``(B) Emergency grants.--
                          ``(i) 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 replacement is less expensive or 
                        more cost-effective to correct the identified 
                        emergency.
                          ``(ii) Carry-over of certain applications.--
                        In the case of a local educational agency that 
                        applies for an emergency grant under this 
                        subsection for a fiscal year and does not 
                        receive the grant for the fiscal year, the 
                        Secretary--
                                  ``(I) shall, upon the request of the 
                                agency, treat the application as an 
                                application for an emergency grant 
                                under this subsection for the 
                                subsequent fiscal year in accordance 
                                with the priority requirements of 
                                paragraph (2); and
                                  ``(II) shall allow the agency to 
                                amend or otherwise update the 
                                application, as appropriate.
          ``(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) 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; and
                          ``(ii) the date on which original 
                        construction of the facility to be modernized 
                        was completed.
                  ``(D) A description of the project for which a grant 
                under this subsection would 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) 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
                          ``(ii) the Committee on Appropriations and 
                        the Committee on Health, Education, Labor and 
                        Pensions of the Senate.''.
  (b) Authorization of Appropriations.--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 
four succeeding fiscal years''.

SEC. 604. 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. 605. AUTHORIZATION OF APPROPRIATIONS.

  Section 8014 (20 U.S.C. 7714) is amended by striking ``three 
succeeding fiscal years'' each place it appears and inserting ``six 
succeeding fiscal years''.

SEC. 606. REPEAL OF EXISTING TITLE VI; TRANSFER AND REDESIGNATION OF 
                    PROGRAM.

  (a) Repeal of Existing Title VI.--Title VI (20 U.S.C. 7301 et seq.) 
is repealed.
  (b) Transfer and Redesignation of Program.--(1) Title VIII (20 U.S.C. 
7701 et seq.)--
          (A) is transferred from the current placement of the title 
        and inserted after title V; and
          (B) is redesignated as title VI.
  (2) Title VI (as redesignated by paragraph (1)(B)) is amended--
          (A) by redesignating sections 8001 through 8005 (20 U.S.C. 
        7701-7705) as sections 6001 through 6005, respectively; and
          (B) by redesignating sections 8007 through 8014 (20 U.S.C. 
        7707-7714) as sections 6006 through 6013, respectively.
  (c) Conforming Amendments.--(1) Title VI (as redesignated by 
subsection (b)) is amended by striking ``8002'', ``8003'', ``8004'', 
``8005'', ``8008'', ``8009'', ``8011'', ``8013'', and ``8014'' each 
place such terms appear and inserting ``6002'', ``6003'', ``6004'', 
``6005'', ``6007'', ``6008'', ``6010'', ``6012'', and ``6013'', 
respectively.
  (2) Section 6005 (as redesignated by subsection (b)) is amended in 
the heading by striking ``8002 and 8003'' and 
inserting ``6002 and 6003''.
  (3) Section 6009(c)(1) (as redesignated by subsection (b)) is amended 
in the heading by striking ``8003'' and inserting ``6003''.
  (d) Savings Provision.--Funds appropriated for title VIII of the 
Elementary and Secondary Education Act of 1965 (as in effect on the day 
before the date of the enactment of this Act) shall be available for 
use under title VI of such Act, as added by this section.

                       TITLE VII--ACCOUNTABILITY

SEC. 701. FLEXIBILITY AND ACCOUNTABILITY.

  Title VII is amended to read as follows:

              ``TITLE VII--FLEXIBILITY AND ACCOUNTABILITY

   ``PART A--STATE ACCOUNTABILITY FOR IMPROVING ACADEMIC ACHIEVEMENT

``SEC. 7101. STATE FINANCIAL AWARDS.

  ``(a) In General.--Beginning in the 2002-2003 school year, the 
Secretary shall make in accordance with this section financial awards, 
to be known as `Achievement in Education Awards', to States that have 
made significant progress in improving educational achievement.
  ``(b) Criteria of Progress.--For the purposes of subsection (a), the 
Secretary shall judge progress using each of the following criteria, 
giving the greatest weight to the criterion described in paragraph (1):
          ``(1) The progress of the State's students from economically 
        disadvantaged families and students from racial and ethnic 
        minority groups--
                  ``(A) on the assessments administered by the State 
                under section 1111; and
                  ``(B) beginning in the 2003-2004 school year, on 
                assessments of 4th and 8th grade reading and 
                mathematics under--
                          ``(i) the State assessments carried out as 
                        part of the National Assessment of Educational 
                        Progress under section 411 of the National 
                        Education Statistics Act of 1994 (20 U.S.C. 
                        9010); or
                          ``(ii) an assessment selected by the State 
                        that--
                                  ``(I) is administered annually;
                                  ``(II) yields high quality data that 
                                are valid and reliable;
                                  ``(III) meets widely recognized 
                                professional and technical standards, 
                                including specific and rigorous test 
                                security procedures;
                                  ``(IV) is developed by an entity 
                                independent from each State and local 
                                government agency in the State in a 
                                manner that protects against any 
                                conflict of interest ;
                                  ``(V) has no test questions that are 
                                identical to the test questions used by 
                                the assessment used to meet the State 
                                assessment requirements under section 
                                1111;
                                  ``(VI) provides results in such a 
                                form that they may be expressed in 
                                terms of achievement levels that are 
                                consistent with the achievement levels 
                                (basic, proficient, and advanced) set 
                                forth in section 1111;
                                  ``(VII) provides results in such a 
                                form that they may be disaggregated, at 
                                a minimum, according to income level 
                                and major racial and ethnic group; and
                                  ``(VIII) is administered to all 
                                students or to a representative sample 
                                of students in the 4th and 8th grades 
                                statewide, with a sample size that is 
                                sufficiently large to produce 
                                statistically significant estimates of 
                                statewide student achievement.
          ``(2) The overall improvement in the achievement of all of 
        the State's students, as measured by--
                  ``(A) the assessments administered by the State under 
                section 1111; and
                  ``(B) beginning in the 2003-2004 school year, the 
                assessments described in paragraph (1)(B).
          ``(3) The progress of the State in improving the English 
        proficiency of students who enter school with limited English 
        proficiency.
  ``(c) Other Considerations.--In judging a State's progress under 
subsection (a), the Secretary may also consider--
          ``(1) the progress of the State in increasing the percentage 
        of students who graduate from secondary schools; and
          ``(2) the progress of the State in increasing the percentage 
        of students who take advanced coursework (such as Advanced 
        Placement or International Baccalaureate courses) and who pass 
        the exams associated with such coursework.
  ``(d) Amount.--The Secretary shall determine the amount of an award 
under subsection (a) based on--
          ``(1) the school-age population of the State; and
          ``(2) the degree of progress shown by a State with respect to 
        the criteria set forth in subsections (b) and (c).
  ``(e) Use of Funds.--
          ``(1) In general.--A State receiving a financial award under 
        this section shall use the proceeds of such award only to make 
        financial awards to public elementary and secondary schools in 
        the State that have made the most significant progress with 
        respect to the criteria described in subsection (b).
          ``(2) Use by schools.--In consultation with the school's 
        teachers, the principal of each elementary or secondary school 
        that receives a financial award from a State under this section 
        shall use the proceeds of such award at the school for any 
        educational purpose permitted under State law.
          ``(3) Responsible state agency.--The State educational agency 
        for each State shall be the agency responsible for making 
        awards under this subsection.
  ``(f) Peer Review.--In selecting States for awards under subsection 
(a), the Secretary shall use a peer-review process.
  ``(g) Costs of Independent Assessments.--
          ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall make grants to States to offset the costs of 
        administering assessments administered by the States to meet 
        the requirements of (b)(1)(B)(ii).
          ``(2) Limitations.--Grants made by the Secretary in any year 
        to a State under paragraph (1)--
                  ``(A) may be awarded only to offset the costs of a 
                single administration of an assessment described in 
                such paragraph in the State for that year; and
                  ``(B) may not exceed the costs of administering in 
                the State for that year the State assessments that 
                would be carried out under the National Assessment of 
                Educational Progress described in subsection (b)(1)(B).
          ``(3) Allocation.--The Secretary may determine the 
        appropriate methodology of allocating grants to States under 
        this subsection.

``SEC. 7102. STATE SANCTIONS.

  ``(a) Failure to Make Progress.--
          ``(1) Loss of administrative funds.--The Secretary shall 
        reduce, by 30 percent, the amount of funding that a State may 
        reserve for State administration under the State formula grant 
        programs authorized by this Act if the Secretary determines 
        that, for 2 consecutive years--
                  ``(A) the State's students from economically 
                disadvantaged families and students from racial and 
                ethnic minority groups failed to make adequate yearly 
                progress on the assessments administered by the State 
                under section 1111; and
                  ``(B) the State's students from economically 
                disadvantaged families and students from racial and 
                ethnic minority groups failed to make measurable 
                progress in reading and mathematics, as measured by the 
                4th and 8th grade assessments described in subsection 
                (b)(1)(B).
          ``(2) Further reductions.--In each of the first 2 years after 
        the years described in paragraph (1), the Secretary may 
        increase the reduction described in such paragraph by any 
        amount not more than a total of an additional 45 percent.
  ``(b) Other Failures.--In addition to any action taken under 
subsection (a)(1) or (a)(2), the Secretary shall reduce, by 20 percent, 
the amount of funding that a State may reserve for State administration 
under the State formula grant programs authorized by this Act if the 
Secretary determines that, for 2 consecutive years, the State failed to 
make adequate yearly progress--
          ``(1) with respect to the achievement of children with 
        limited English proficiency under section 
        1111(b)(2)(C)(iii)(II)(dd); or
          ``(2) with respect to the acquisition of English language 
        proficiency by children with limited English proficiency under 
        section 1111(b)(2)(C)(iii)(III).
  ``(c) Use of Funds for Improvement.--
          ``(1) In general.--The Secretary shall require that any funds 
        reduced under this section be allocated by the State to local 
        educational agencies in the State for school improvement 
        purposes described in section 1116.
          ``(2) Treatment of funds.--Funds described in paragraph (1) 
        shall not count toward the amounts that are required to be 
        reserved by a State for school improvement under section 1003.

``SEC. 7103. DEVELOPMENT OF STATE STANDARDS AND ASSESSMENTS.

  ``(a) In General.--The Secretary shall make financial awards 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), 
        including the costs of working in voluntary partnerships with 
        other States, at the sole discretion of each such State, in 
        developing such assessments and standards if a State chooses to 
        do so; and
          ``(2) if a State has developed the assessments and standards 
        referred to in paragraph (1), to administer such assessments or 
        to carry out other activities described in this title and other 
        activities related to ensuring accountability for results in 
        the State's schools and local educational agencies, such as--
                  ``(A) developing academic content and achievement 
                standards and aligned assessments in other subjects not 
                required by Section 1111;
                  ``(B) developing assessments of English language 
                proficiency necessary to comply with section 
                1111(b)(7);
                  ``(C) assuring 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 
                instruction materials;
                  ``(E) providing for multiple measures to increase the 
                reliability and validity of student and school 
                classifications;
                  ``(F) strengthening the capacity of local educational 
                agencies and schools to provide all students the 
                opportunity to increase educational achievement;
                  ``(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; and
                  ``(H) improving the dissemination of information on 
                student achievement and school performance to parents 
                and the community.
  ``(b) Bonuses.--The Secretary shall make a one-time bonus payment to 
each State that completes the development of the assessments described 
in subsection (a) ahead of the deadline set forth in section 1111.

``SEC. 7104. FUNDING.

  ``(a) Authorization of Appropriations.--
          ``(1) Awards and bonus payments.--For the purposes of making 
        awards under section 7101 and bonus payments under section 
        7103(b), there are authorized to be appropriated $40,000,000 
        for fiscal year 2002 and such sums as may be necessary for each 
        of fiscal years 2003 through 2006.
          ``(2) Grants for independent assessments; administration of 
        state assessments under naep.--For the purposes of making 
        grants to offset the costs of independent assessments under 
        section 7101(g) and for the purposes of administering the State 
        assessments carried out under the National Assessment of 
        Educational Progress referred to in section 7101(b)(1)(B)(i), 
        there are authorized to be appropriated to the Secretary 
        $69,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of fiscal years 2003 through 2006.
          ``(3) Development and administration of state standards and 
        assessments.--For the purposes of carrying out subsection 
        7103(a), there are authorized to be appropriated $400,000,000 
        for fiscal year 2002 and such sums as may be necessary for each 
        of the fiscal years 2003 through 2005.
  ``(b) Allocation of Appropriated Funds.--From each of the amounts 
appropriated under subsection (a), the Secretary shall allocate to the 
States--
          ``(1) 50 percent based on the relative number of children 
        aged 5 to 17 in each State; and
          ``(2) 50 percent allocated equally among the States.

 ``PART B--FUNDING FLEXIBILITY FOR STATE AND LOCAL EDUCATIONAL AGENCIES

``SEC. 7201. SHORT TITLE.

  ``This part may be cited as the `State and Local Transferability 
Act'.

``SEC. 7202. PURPOSE.

  ``The purpose of this part 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 activities authorized under title I 
        programs.

``SEC. 7203. TRANSFERABILITY OF FUNDS.

  ``(a) Transfers by States.--
          ``(1) In general.--In accordance with this part, a State may 
        transfer up 50 percent of the nonadministrative State funds 
        allocated to the State for use for State-level activities under 
        each of the following provisions to 1 or more of the State's 
        allocations under any other of such provisions:
                  ``(A) Part A of Title II.
                  ``(B) Subpart 1 of part A of title IV.
                  ``(C) Part A or B of title V.
          ``(2) Supplemental funds for title I.--In accordance with 
        this part, a State may transfer any funds allocated to the 
        State under a provision listed in paragraph (1) to its 
        allocation under title I.
  ``(b) Transfers by Local Educational Agencies.--
          ``(1) Authority to transfer funds.--
                  ``(A) In general.--In accordance with this part, a 
                local educational agency (except a local educational 
                agency identified for improvement under section 
                1116(c)(2) or subject to corrective action under 
                section 1116(c)(9)) may transfer not more than 50 
                percent of the funds allocated to it under each of the 
                provisions listed in paragraph (2) for a fiscal year to 
                1 or more of its allocations for such fiscal year under 
                any other provision listed in paragraph (2).
                  ``(B) Agencies identified for improvement.--A local 
                educational agency identified for improvement under 
                section 1116(c)(2) may transfer in accordance with this 
                part not more than 30 percent of the funds allocated to 
                it under each of the provisions listed in paragraph 
                (2)--
                          ``(i) to its allocation for school 
                        improvement under section 1003;
                          ``(ii) to any other allocation if such 
                        transferred funds are used only for local 
                        educational agency improvement activities 
                        consistent with section 1116(d).
                  ``(C) Supplemental funds for title I.--In accordance 
                with this part, a local educational agency may transfer 
                funds allocated to such agency under a provision listed 
                in paragraph (2) to its allocation under title I.
          ``(2) Applicable provisions.--A local educational agency may 
        transfer funds under subparagraph (A) or (B) from allocations 
        made under each of the following provisions:
                  ``(A) Title II.
                  ``(B) Subpart 1 of Part A of title IV.
                  ``(C) Part A of title V or section 5212(2)(A).
  ``(c) No Transfer of Title I Funds.--A State or a local educational 
agency may not transfer under this part to any other program any funds 
allocated to it under title I.
  ``(d) Modification of plans and applications; notification.--
          ``(1) State 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 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;
                  ``(B) 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) 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 part, 
        funds transferred under this section are subject to each of the 
        rules and requirements applicable to the funds allocated by the 
        Secretary 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 8503(c), 
        if such transfer transfers funds from a program that provides 
        for the participation of students, teachers, or other 
        educational personnel, from private schools.''.

                     TITLE VIII--GENERAL PROVISIONS

SEC. 801. GENERAL PROVISIONS.

  The Elementary and Secondary Education Act of 1965, as amended by 
this Act, is further amended by adding at the end of title VII the 
following:

                    ``TITLE VIII--GENERAL PROVISIONS

                         ``PART A--DEFINITIONS

``SEC. 8101. DEFINITIONS.

  ``Except as otherwise provided, for the purposes of this Act, the 
following terms have the following meanings:
          ``(1) Average daily attendance--
                  ``(A) 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 such school year.
                  ``(B) 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 
                such other data.
                  ``(C) 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 
                in another school district, the Secretary shall, for 
                purposes of this Act--
                          ``(i) consider the child to be in attendance 
                        at a school of the agency making such payment; 
                        and
                          ``(ii) not consider the child to be in 
                        attendance at a school of the agency receiving 
                        such payment.
                  ``(D) 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 
                disabilities, as defined in paragraph (5), the 
                Secretary shall, for the purposes of this Act, consider 
                such child to be in attendance at a school of the 
                agency making such 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 such agencies; 
                        divided by
                  ``(B) the aggregate number of children in average 
                daily attendance to whom such agencies provided free 
                public education during such preceding year.
          ``(3) Beginning teacher.--The term `beginning teacher' means 
        an educator in a public school who has been teaching less than 
        a total of 3 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 disability.--The term `child with a 
        disability' means a child--
                  ``(A) with mental retardation, hearing impairments 
                (including deafness), speech or language impairments, 
                visual impairments (including blindness), serious 
                emotional disturbance (hereinafter referred to as 
                `emotional disturbance'), orthopedic impairments, 
                autism, traumatic brain injury, other health 
                impairments, or specific learning disabilities; and
                  ``(B) who, by reason thereof, needs special education 
                and related services.
          ``(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 14305.
          ``(8) Consolidated local plan.--The term `consolidated local 
        plan' means a plan submitted by a local educational agency 
        pursuant to section 14305.
          ``(9) Consolidated state application.--The term `consolidated 
        State application' means an application submitted by a State 
        educational agency pursuant to section 14302.
          ``(10) Consolidated state plan.--The term `consolidated State 
        plan' means a plan submitted by a State educational agency 
        pursuant to section 14302.
          ``(11) 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.
          ``(12) Covered program.--The term `covered program' means 
        each of the programs authorized by--
                  ``(A) part A of title I;
                  ``(B) 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 G of title I;
                  ``(G) part A of title II;
                  ``(H) part A of title III;
                  ``(I) part A of title V;
                  ``(J) part B of title V; and
                  ``(K) part A of title IV:
          ``(13) Current expenditures.--The term `current expenditures' 
        means expenditures for free public education--
                  ``(A) including expenditures for administration, 
                instruction, attendance, 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 IV.
          ``(14) Department.--The term `Department' means the 
        Department of Education.
          ``(15) 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.
          ``(16) Effective schools program.--The term `effective 
        schools program' means a school-based program that may 
        encompass preschool through secondary school levels and that 
        has the objectives of--
                  ``(A) promoting school-level planning, instructional 
                improvement, and staff development;
                  ``(B) increasing the academic achievement levels of 
                all children and particularly educationally 
                disadvantaged children; and
                  ``(C) achieving as ongoing conditions in the school 
                the following factors identified through scientifically 
                based research as distinguishing effective from 
                ineffective schools:
                          ``(i) Strong and effective administrative and 
                        instructional leadership that creates consensus 
                        on instructional goals and organizational 
                        capacity for instructional problem solving.
                          ``(ii) Emphasis on the acquisition of basic 
                        and advanced academic skills.
                          ``(iii) A safe and orderly school environment 
                        that allows teachers and pupils to focus their 
                        energies on academic achievement.
                          ``(iv) Continuous review of students and 
                        programs to evaluate the effects of 
                        instruction.
          ``(17) 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.
          ``(18) 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; and
                  ``(E) reading comprehension strategies.
          ``(19) 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.
          ``(20) 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 or secondary school education as 
                determined under applicable State law, except that such 
                term does not include any education provided beyond 
                grade 12.
          ``(21) Fully qualified.--The term `fully qualified'--
                  ``(A) when used with respect to a public elementary 
                or secondary school teacher means that the teacher has 
                obtained State certification as a teacher (including 
                certification obtained through alternative routes to 
                certification) or passed the State teacher licensing 
                exam and holds a license to teach in such State, except 
                that when used with respect to any teacher teaching in 
                a public charter school, means that the teacher meets 
                the requirements set forth in the State's public 
                charter school law; and
                  ``(B) when used with respect to--
                          ``(i) an elementary school teacher, means 
                        that the teacher holds a bachelor's degree and 
                        demonstrates knowledge and teaching skills in 
                        reading, writing, mathematics, science, and 
                        other areas of the elementary school 
                        curriculum; and
                          ``(ii) a middle or secondary school teacher, 
                        means that the teacher holds a bachelor's 
                        degree and demonstrates a high level of 
                        competency in all subject areas in which he or 
                        she teaches through--
                                  ``(I) a passing level of performance 
                                on a rigorous State or local academic 
                                subject areas test; or
                                  ``(II) completion of an academic 
                                major in each of the subject areas in 
                                which he or she provides instruction.
          ``(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 
        performance capability in areas such as intellectual, creative, 
        artistic, or leadership capacity, or in specific academic 
        fields, and who require services or activities not ordinarily 
        provided by the school in order to fully develop such 
        capabilities.
          ``(23) Institution of higher education.--The term 
        `institution of higher education' has the meaning given that 
        term in section 101 of the Higher Education Act of 1965.
          ``(24) Limited english proficient student.--The term `limited 
        English proficient student' means an individual aged 5 through 
        17 enrolled in an elementary school or secondary school--
                  ``(A) who--
                          ``(i) was not born in the United States or 
                        whose native language is a language other than 
                        English;
                          ``(ii)(I) is a Native American or Alaska 
                        Native, or a native resident of the outlying 
                        areas; and
                          ``(II) comes from an environment where a 
                        language other than English has had a 
                        significant impact on such individual's level 
                        of English language proficiency; or
                          ``(iii) 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
                  ``(B) who has sufficient difficulty speaking, 
                reading, writing, or understanding the English 
                language, and whose difficulties may deny the 
                individual--
                          ``(i) the ability to meet the State's 
                        proficient level of performance on State 
                        assessments described in section 1111(b)(4) in 
                        core academic subjects; or
                          ``(ii) the opportunity to participate fully 
                        in society.
          ``(25) Local educational agency.--(A) 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 or secondary schools in a city, 
        county, township, school district, or other political 
        subdivision of a State, or for such combination of school 
        districts or counties as are recognized in a State as an 
        administrative agency for its public elementary or secondary 
        schools.
          ``(B) The term includes any other public institution or 
        agency having administrative control and direction of a public 
        elementary or secondary school.
          ``(C) The term includes an elementary or secondary school 
        funded by the Bureau of Indian Affairs but only to the extent 
        that such inclusion makes such school eligible for programs for 
        which specific eligibility is not provided to such school in 
        another provision of law and such 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 such 
        school shall not be subject to the jurisdiction of any State 
        educational agency other than the Bureau of Indian Affairs.
          ``(D) The term includes educational service agencies and 
        consortia of such agencies.
          ``(26) Mentoring.--The term `mentoring' means a program in 
        which an adult works with a child or youth on a 1-to-1 basis, 
        establishing a supportive relationship, providing academic 
        assistance, and introducing the child or youth to new 
        experiences that enhance the child or youth's ability to excel 
        in school and become a responsible citizen.
          ``(27) Native american and native american language.--The 
        terms `Native American' and `Native American language' shall 
        have the same meaning given such terms in section 103 of the 
        Native American Languages Act of 1990.
          ``(28) Other staff.--The term `other staff' means pupil 
        services personnel, librarians, career guidance and counseling 
        personnel, education aides, and other instructional and 
        administrative personnel.
          ``(29) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands, and through 
        fiscal year 2003 and for the purpose of any discretionary grant 
        program, includes the freely associated states of the Republic 
        of the Marshall Islands, the Federated States of Micronesia, 
        and the Republic of Palau.
          ``(30) 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).
          ``(31) Pupil services personnel; pupil services.--(A) 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 such term is 
        defined in section 602(22) of the Individuals with Disabilities 
        Education Act) as part of a comprehensive program to meet 
        student needs.
          ``(B) The term `pupil services' means the services provided 
        by pupil services personnel.
          ``(32) Reading.--The term `reading' means a complex system of 
        deriving meaning from print that requires all of the following:
                  ``(A) Skills and knowledge to understand how 
                phonemes, or speech sounds are connected in print.
                  ``(B) Ability to decode unfamiliar words.
                  ``(C) Ability to read fluently.
                  ``(D) Sufficient background information and 
                vocabulary to foster reading comprehensions.
                  ``(E) Development of appropriate active strategies to 
                construct meaning from print.
                  ``(F) Development and maintenance of a motivation to 
                read.
          ``(33) Rigorous diagnostic reading and screening assessment 
        tools.--The term `rigorous diagnostic reading and screening 
        assessment tools' means a diagnostic reading assessment that--
                  ``(A) is valid, reliable, and grounded on 
                scientifically based reading research;
                  ``(B) measures progress in developing phonemic 
                awareness and phonics skills, vocabulary, reading 
                fluency, and reading comprehension;
                  ``(C) identifies students who may be at risk for 
                reading failure or who are having difficulty reading; 
                and
                  ``(D) are used to improve instruction.
          ``(34) Scientifically based research.--The term 
        `scientifically based research'--
                  ``(A) means the application of rigorous, systematic, 
                and objective procedures to obtain valid knowledge 
                relevant to education activities and programs; and
                  ``(B) shall include research that--
                          ``(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;
                          ``(iv) is evaluated using randomized 
                        experiments in which individuals, entities, 
                        programs, or activities are randomly assigned 
                        to different variations (including a control 
                        condition) to compare the relative effects of 
                        the variations; and
                          ``(v) has been accepted by a peer-reviewed 
                        journal or approved by a panel of independent 
                        experts through a comparably rigorous, 
                        objective, and scientific review.
          ``(35) 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 such term 
        does not include any education beyond grade 12.
          ``(36) Secretary.--The term `Secretary' means the Secretary 
        of Education.
          ``(37) 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.
          ``(38) State educational agency.--The term `State educational 
        agency' means the agency primarily responsible for the State 
        supervision of public elementary and secondary schools.
          ``(39) Technology.--The term `technology' means the latest 
        state-of-the-art technology products and services.

``SEC. 8102. APPLICABILITY OF TITLE.

  ``Parts B, C, D, and E of this title do not apply to title VI of this 
Act.

``SEC. 8103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED 
                    SCHOOLS.

  ``For purposes of any competitive program under this Act, a consortia 
of schools operated by the Bureau of Indian Affairs, a school operated 
under a contract or grant with the Bureau of Indian Affairs in 
consortia with another contract or grant school or tribal or community 
organization, or a Bureau of Indian Affairs school in consortia with an 
institution of higher education, a contract or grant school and 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. 8201. 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 such agency for 
        State administration under one or more of the programs under 
        paragraph (2) if such State educational agency can demonstrate 
        that the majority of such agency's 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 such 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;
                  ``(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 
                of Education.
  ``(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 such 
administration.
  ``(e) Unused Administrative Funds.--If a State educational agency 
does not use all of the funds available to such agency under this 
section for administration, such agency may use such funds during the 
applicable period of availability as funds available under one or more 
programs included in the consolidation under subsection (a).

``SEC. 8202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

  ``A State educational agency that also serves as a local educational 
agency, in such agency's applications or plans under this Act, shall 
describe how such agency will eliminate duplication in the conduct of 
administrative functions.

``SEC. 8203. 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 such program, of the total available 
for the local educational agency under such programs.
  ``(b) State Procedures.--Within one-year from 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 such 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 may use such 
consolidated funds for the administration of such programs and for 
uses, at the school district and school levels, comparable to those 
described in section 8201(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 such programs included in the consolidation.

``SEC. 8204. 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 subpart 1 
        of part B of title III, and the education for homeless children 
        and youth program under subtitle B of title VII of the Stewart 
        B. McKinney Homeless Assistance Act, the amounts allotted to 
        the Department of the Interior under those programs.
          ``(2) Agreement.--(A) 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) The agreement shall--
                  ``(i) set forth the plans of the Secretary of the 
                Interior for the use of the amount transferred and the 
                performance 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 
such department's 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. 8301. PURPOSE.

  ``The purposes of this part are to improve teaching and learning 
through greater coordination between programs and to provide greater 
flexibility to State and local authorities by allowing the 
consolidation of State and local plans, applications, and reporting.

``SEC. 8302. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.

  ``(a) General Authority.--
          ``(1) Simplification.--In order to simplify application 
        requirements and reduce the burden for States under this Act, 
        the Secretary, in accordance with subsection (b), shall 
        establish procedures and criteria under which a State 
        educational agency, in consultation with the State's Governor, 
        may submit a consolidated State plan or a consolidated State 
        application meeting the requirements of this section for--
                  ``(A) any programs under this Act in which the State 
                participates; and
                  ``(B) such other programs as the Secretary may 
                designate.
          ``(2) Consolidated applications and plans.--A State 
        educational agency, in consultation with the State's Governor, 
        that submits a consolidated State plan or a consolidated State 
        application under this section shall not be required to submit 
        a separate State plan or application for a program included in 
        the consolidated State plan or application.
  ``(b) Collaboration.--
          ``(1) In general.--In establishing criteria and procedures 
        under this section, the Secretary shall collaborate with 
        Governors, 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 the 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, and other materials that 
        are absolutely necessary for the consideration of the 
        consolidated State plan or consolidated State application.

``SEC. 8303. CONSOLIDATED REPORTING.

  ``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 State's 
Governor, may submit a consolidated State annual report. Such report 
shall contain information about the programs included in the report, 
including the State's performance under those programs, and other 
matters as the Secretary determines, such as monitoring activities. 
Such a report shall take the place of separate individual annual 
reports for the programs subject to it.

``SEC. 8304. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
                    ASSURANCES.

  ``(a) Assurances.--A State educational agency, in consultation with 
the State's Governor, that submits a consolidated State plan or 
consolidated State application under this Act, whether separately or 
under section 8302, shall have on file with the Secretary a single set 
of assurances, applicable to each program for which such 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, in a nonprofit private agency, 
        institution, or organization, or in an Indian tribe if the law 
        authorizing the program provides for assistance to such 
        entities; and
          ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will administer 
        such 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 such 
                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 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 has afforded a reasonable opportunity for 
        public comment on the plan or application and has considered 
        such comment.
  ``(b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

``SEC. 8305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

  ``(a) General Authority.--A local educational agency receiving funds 
under more than one program under this Act may submit plans or 
applications to the Governor and State educational agency under such 
programs on a consolidated basis.
  ``(b) Required Consolidated Plans or Applications.--A State that has 
an approved consolidated State plan or application under section 8302 
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 such programs, but may not require such agencies to 
submit separate plans.
  ``(c) Collaboration.--A Governor and State educational agency 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 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. 8306. OTHER GENERAL ASSURANCES.

  ``(a) Assurances.--Any applicant other than a State that submits a 
plan or application under this Act, shall have on file with the State 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 such 
        entities; and
          ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will administer 
        such 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 such applicant under 
        each such program;
          ``(6) the applicant will--
                  ``(A) make reports to the Governor and State 
                educational agency and the Secretary as may be 
                necessary to enable such agency and the Secretary to 
                perform their duties under each such program; and
                  ``(B) maintain such records, provide such 
                information, and afford access to the records as the 
                Governor and State educational agency or the Secretary 
                may find necessary to carry out the State'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 has 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. 8401. 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 
or the Carl D. Perkins Vocational and Technical Education Act of 1998 
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 which desires a waiver 
        shall submit a waiver application to the Secretary that--
                  ``(A) indicates each Federal program affected and 
                each statutory or regulatory requirement requested to 
                be waived;
                  ``(B) describes the purpose and overall expected 
                results of waiving each such requirement;
                  ``(C) describes, for each school year, specific, 
                measurable, educational goals for the State educational 
                agency and for each local educational agency, Indian 
                tribe, or school that would be affected by the waiver; 
                and
                  ``(D) explains why the waiver will assist the State 
                educational agency and each affected local educational 
                agency, Indian tribe, or school in reaching such goals.
          ``(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--
                          ``(i)(I) by local educational agencies (on 
                        behalf of such agencies and schools) to State 
                        educational agencies; and
                          ``(II) by State educational agencies (on 
                        behalf of, and based upon the requests of, 
                        local educational agencies) to the Secretary; 
                        or
                          ``(ii) by Indian tribes (on behalf of schools 
                        operated by such tribes) to the Secretary.
          ``(3) General requirements.--
                  ``(A) In the case of a waiver request submitted by a 
                State educational agency acting in 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 that the applying agency customarily 
                        provides similar notices and information to the 
                        public.
                  ``(B) In the case of a waiver request submitted by a 
                local educational agency that receives funds under this 
                Act--
                          ``(i) such request shall be reviewed by the 
                        State educational agency and be accompanied by 
                        the comments, if any, of such 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 that such 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 part B of 
        title IV; or
          ``(9) the prohibitions regarding--
                  ``(A) State aid in section 8502;
                  ``(B) use of funds for religious worship or 
                instruction in section 8507; and
                  ``(C) activities in section 8513.
  ``(d) Duration and Extension of Waiver.--
          ``(1) In general.--Except as provided in paragraph (2), the 
        duration of a waiver approved by the Secretary under this 
        section may be for a period not to exceed 5 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 recipients to carry out the 
                activities for which the waiver was requested and the 
                waiver has contributed to improved student performance; 
                and
                  ``(B) such 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 such waiver by such 
                agency or by schools;
                  ``(B) describes how schools continued to provide 
                assistance to the same populations served by the 
                programs for which waivers are requested; and
                  ``(C) evaluates the progress of such agency and of 
                schools in improving the quality of instruction or the 
                academic performance 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 such 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 such waiver by schools 
                operated by such tribe; and
                  ``(B) evaluates the progress of such schools in 
                improving the quality of instruction or the academic 
                performance of students.
          ``(4) Report to congress.--Beginning in fiscal year 2002 and 
        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 such waivers--
                          ``(i) increased the quality of instruction to 
                        students; or
                          ``(ii) improved the academic performance of 
                        students.
  ``(f) Termination of Waivers.--The Secretary shall terminate a waiver 
under this section if the Secretary determines, after notice 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) 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 such 
notice to State educational agencies, interested parties, including 
educators, parents, students, advocacy and civil rights organizations, 
and the public.

                      ``PART E--UNIFORM PROVISIONS

``SEC. 8501. 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 such agency and the State with respect to the 
provision of free public education by such agency for the preceding 
fiscal year was not less than 90 percent of such 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 to 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 such 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 such 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. 8502. PROHIBITION REGARDING STATE AID.

  ``A State shall not take into consideration payments under this Act 
(other than under title VI) in determining the eligibility of any local 
educational agency in such State for State aid, or the amount of State 
aid, with respect to free public education of children.

``SEC. 8503. 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 
        such agencies, or another entity receiving financial assistance 
        under a program specified in subsection (b), who are enrolled 
        in private elementary and secondary schools in areas served by 
        such agency, consortium or entity, such agency, consortium or 
        entity shall, after timely and meaningful consultation with 
        appropriate private school officials, provide such children and 
        their teachers or other educational personnel, on an equitable 
        basis, special educational services or other benefits that 
        address their needs under such 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 such 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 such program and shall be provided in a timely 
        manner.
          ``(4) Expenditures.--Expenditures for educational services 
        and other benefits provided under this section to eligible 
        private school children, their teachers, and other educational 
        personnel serving such 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.--Such agency, consortium or 
        entity described in subsection (a)(1) of this section may 
        provide such 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) part B, subpart 1 of title I;
                  ``(B) part C of title I;
                  ``(C) part A of title II;
                  ``(D) part A of title III.
                  ``(E) part A of title V; and
                  ``(F) part B of title V;
          ``(2) Definition.--For the purposes of this section, the term 
        `eligible children' means children eligible for services under 
        a program described in paragraph (1).
  ``(c) Consultation.--
          ``(1) In general.--To ensure timely and meaningful 
        consultation, a State educational agency, local educational 
        agency, educational service agency, consortium of such 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 such 
                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 such 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 in writing to such private 
        school officials an analysis of the reasons why the local 
        educational agency has chosen not to use a contractor.
          ``(3) Timing.--Such consultation 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 participate in 
        programs under this Act, and shall continue throughout the 
        implementation and assessment of activities under this section.
          ``(4) Discussion required.--Such consultation 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 such funds, shall be in a public 
        agency for the uses and purposes provided in this Act, and a 
        public agency shall administer such funds and property.
          ``(2) Provision of services.--
                  ``(A) The provision of services under this section 
                shall be provided--
                          ``(i) by employees of a public agency; or
                          ``(ii) through contract by such public agency 
                        with an individual, association, agency, 
                        organization, or other entity.
                  ``(B) In the provision of such services, such 
                employee, person, association, agency, organization or 
                other entity 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.
                  ``(C) Funds used to provide services under this 
                section shall not be commingled with non-Federal funds.

``SEC. 8504. STANDARDS FOR BY-PASS.

  ``If, by reason of any provision of law, a State educational agency, 
local educational agency, educational service agency, consortium, or 
other entity of such agencies, is prohibited from providing for the 
participation in programs of children enrolled in, or teachers or other 
educational personnel from, private elementary and secondary schools, 
on an equitable basis, or if the Secretary determines that such agency 
consortium or entity has substantially failed or is unwilling to 
provide for such participation, as required by section 8503, the 
Secretary shall--
          ``(1) waive the requirements of that section for such agency, 
        consortium, or entity;
          ``(2) arrange for the provision of equitable services to such 
        children, teachers, or other educational personnel through 
        arrangements that shall be subject to the requirements of this 
        section and of sections 8503, 8505, and 8506; and
          ``(3) in making the determination, consider one or more 
        factors, including the quality, size, scope, location of the 
        program and the opportunity of private school children, 
        teachers, and other educational personnel to participate.

``SEC. 8505. 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 individuals and 
organizations concerning violations of section 8503 by a State 
educational agency, local educational agency, educational service 
agency, consortium of such agencies or entity. Such individual or 
organization shall submit such complaint to the State educational 
agency for a written resolution by the State educational agency within 
a reasonable period of time.
  ``(b) Appeals to Secretary.--Such 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. Such appeal shall be 
accompanied by a copy of the State educational agency's resolution, and 
a complete statement of the reasons supporting the appeal. The 
Secretary shall investigate and resolve each such appeal not later than 
120 days after receipt of the appeal.

``SEC. 8506. BY-PASS DETERMINATION PROCESS.

  ``(a) Review.--
          ``(1) In general.--
                  ``(A) The Secretary shall not take any final action 
                under section 8504 until the State educational agency, 
                local educational agency, educational service agency, 
                consortium of such agencies or entity affected by such 
                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) 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 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) If such affected agency consortium or entity is 
                dissatisfied with the Secretary's final action after a 
                proceeding under paragraph (1), such agency consortium 
                or entity may, within 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.
                  ``(B) A copy of the petition shall be forthwith 
                transmitted by the clerk of the court to the Secretary.
                  ``(C) 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 this action, 
                as provided in section 2112 of title 28, United States 
                Code.
          ``(3) Findings of fact.--
                  ``(A) 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.
                  ``(B) Such new or modified findings of fact shall 
                likewise be conclusive if supported by substantial 
                evidence.
          ``(4) Jurisdiction.--
                  ``(A) Upon the filing of such petition, the court 
                shall have jurisdiction to affirm the action of the 
                Secretary or to set such action aside, in whole or in 
                part.
                  ``(B) 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 such 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 such agency or consortium to meet the applicable requirements 
of section 8503 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 such 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 such determination 
is consistent with the purpose of this section.

``SEC. 8507. 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. 8508. APPLICABILITY.

  ``Nothing in this Act 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 (consistent with section 8509), nor shall any 
home schooled student be required to participate in any assessment 
referenced in this Act.

``SEC. 8509. 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.

``SEC. 8510. PRIVACY OF ASSESSMENT RESULTS.

  ``Any results from individual assessments referenced in this Act 
which become part of the education records of the student shall have 
the protections as provided in section 444 of the General Education 
Provisions Act.

``SEC. 8511. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC 
                    SCHOOLS.

  ``Nothing in this Act, or any other Act administered by the 
Department, 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.

``SEC. 8512. SCHOOL PRAYER.

  ``As a condition for receipt of funds under this Act, a local 
educational agency shall certify in writing to the Secretary that no 
policy of the agency prevents or otherwise denies participation in 
constitutionally protected prayer in public schools.

``SEC. 8513. 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 such instruction is age appropriate and 
        emphasizes 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 direct, review, or control a State, local 
        educational agency, or schools' instructional content, 
        curriculum, and related activities;
          ``(2) limit the application of the General Education 
        Provisions Act (20 U.S.C.A. 1221 et seq.);
          ``(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
          ``(4) create any legally enforceable right.

``SEC. 8514. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND CONTROL.

  ``(a) General Prohibition.--Officers and employees of the Federal 
Government are prohibited from mandating, directing, or controlling a 
State, local educational agency, or school's curriculum, program of 
instruction, or allocation of State or local resources, or mandating a 
State or any subdivision thereof to spend any funds or incur any costs 
not paid for under this Act.
  ``(b) Prohibition of Federal Mandates, Direction, or Control.--
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 specific instructional 
content or academic achievement standards and assessments, curriculum, 
or program of instruction as a condition of eligibility to receive 
funds under this Act.
  ``(c) Equalized Spending.--Nothing in this Act shall be construed to 
mandate equalized spending per pupil for a State, local educational 
agency, or school.
  ``(d) Building Standards.--Nothing in this Act shall be construed to 
mandate national school building standards for a State, local agency, 
or school.

``SEC. 8515. 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. 8516. REPORT.

  ``The Secretary shall report to the Congress not later than 180 days 
after the date of enactment of the No Child Left Behind Act of 2001 
regarding how the Secretary shall ensure that audits conducted by 
Department employees of activities assisted under this Act comply with 
changes to this Act made by the No Child Left Behind Act of 2001, 
particularly with respect to permitting children with similar 
educational needs to be served in the same educational settings, where 
appropriate.

``SEC. 8517. REQUIRED APPROVAL OR CERTIFICATION PROHIBITED.

  ``(a) In General.--Notwithstanding any other provision of Federal 
law, no State shall be required to have academic content standards or 
student academic achievement standards approved or certified by the 
Federal Government, in order to receive assistance under this Act.
  ``(b) Construction.--Nothing in this section shall be construed to 
affect requirements under title I of this Act.

``SEC. 8518. PROHIBITION ON ENDORSEMENT OF CURRICULUM.

  ``Notwithstanding any other prohibition of Federal law, no funds 
provided to the Department of Education or to any applicable program 
may be used by the Department to endorse, approve, or sanction any 
curriculum designed to be used in an elementary or secondary school.

``SEC. 8519. RULE OF CONSTRUCTION ON PERSONALLY IDENTIFIABLE 
                    INFORMATION.

  ``Nothing in this Act shall be construed to permit the development of 
a national database of personally identifiable information on 
individuals involved in studies or in data collection efforts under 
this Act.

``SEC. 8520. SEVERABILITY.

  ``If any provision of this Act is held invalid, the remainder of this 
Act shall be unaffected thereby.

                      ``PART F--SENSE OF CONGRESS

``SEC. 8601. PAPERWORK REDUCTION.

  ``(a) Findings.--The Congress finds that--
          ``(1) instruction and other classroom activities provide the 
        greatest opportunity for students, especially at-risk and 
        disadvantaged students, to attain high standards and achieve 
        academic success;
          ``(2) one of the greatest obstacles to establishing an 
        effective, classroom-centered education system is the cost of 
        paperwork compliance;
          ``(3) paperwork places a burden on teachers and 
        administrators who must complete Federal and State forms to 
        apply for Federal funds and absorbs time and money which 
        otherwise would be spent on students;
          ``(4) the Education at a Crossroads Report released in 1998 
        by the Education Subcommittee on Oversight and Investigations 
        states that requirements by the Department of Education result 
        in more than 48,600,000 hours of paperwork per year; and
          ``(5) paperwork distracts from the mission of schools, 
        encumbers teachers, and administrators with nonacademic 
        responsibilities, and competes with teaching and classroom 
        activities which promote learning and achievement.
  ``(b) Sense of Congress.--It is the sense of Congress that Federal 
and State educational agencies should reduce the paperwork requirements 
placed on schools, teachers, principles, and other administrators.

``SEC. 8602. PROHIBITION ON MANDATORY NATIONAL CERTIFICATION OF 
                    TEACHERS AND PARAPROFESSIONALS.

  ``(a) Prohibition on Mandatory Testing or Certification.--
Notwithstanding any other provision of law, the Secretary is prohibited 
from using Federal funds to plan, develop, implement, or administer any 
mandatory national teacher or paraprofessional test or certification.
  ``(b) Prohibition on Withholding Funds.--The Secretary is prohibited 
from withholding funds from any State or local educational agency if 
such State or local educational agency fails to adopt a specific method 
of teacher or paraprofessional certification.

``SEC. 8603. PROHIBITION ON FEDERALLY SPONSORED TESTING.

  ``Notwithstanding any other provision of Federal law, 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.

``SEC. 8604. SENSE OF CONGRESS REGARDING MEMORIALS.

  ``It is the sense of Congress that--
          ``(1) the saying of a prayer, the reading of a scripture, or 
        the performance of religious music, as part of a memorial 
        service that is held on the campus of a public elementary or 
        secondary school in order to honor the memory of any person 
        slain on that campus is not objectionable under this Act; and
          ``(2) the design and construction of any memorial which 
        includes religious symbols, motifs, or sayings that is placed 
        on the campus of a public elementary or secondary school in 
        order to honor the memory of any person slain on that campus is 
        not objectionable under this Act.

                         ``PART G--EVALUATIONS

``SEC. 8651. 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 programs 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 utilization of information relating to 
        performance under the program or project.
  ``(b) Title I Excluded.--The Secretary may not reserve under 
subsection (a) funds appropriated to carry out any program authorized 
under title I.
  ``(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 such program or project.''.

SEC. 802. COMPREHENSIVE REGIONAL ASSISTANCE CENTERS.

  (a) In General.--Part A of title XIII (20 U.S.C. 8621 et seq.)--
          (1) is transferred to the end of title VIII, as amended by 
        section 801; and
          (2) is redesignated as part H.
  (b) Redesignation of Sections.--Sections 13101 through 13105 are 
redesignated as sections 8701 through 8705, respectively.
  (c) Conforming Amendments.--
          (1) Requirements.--Section 8702(a) (as redesignated by 
        subsection (b)) is amended--
                  (A) by striking ``section 13101(a)'' and inserting 
                ``section 8701(a)''; and
                  (B) in paragraph (7), by striking ``section 13201'' 
                and inserting ``section 8751''.
          (2) Maintenance of service.--Section 8703(b) (as redesignated 
        by subsection (b)) is amended--
                  (A) in paragraph (1), by striking ``section 13102'' 
                and inserting ``section 8702''; and
                  (B) in paragraph (2)--
                          (i) by striking ``section 13201'' and 
                        inserting ``section 8751''; and
                          (ii) by striking ``section 13401'' and 
                        inserting ``section 8851''.
          (3) Transition.--Section 8704(b)(1) (as redesignated by 
        subsection (b)) is amended by striking ``section 13105'' and 
        inserting ``section 8705''.

SEC. 803. NATIONAL DIFFUSION NETWORK.

  (a) In General.--Part B of title XIII (20 U.S.C. 8651 et seq.)--
          (1) is transferred to the end of title VIII, as amended by 
        section 802; and
          (2) is redesignated as part I.
  (b) Redesignation of Sections.--Sections 13201 and 13202 are 
redesignated as sections 8751 and 8752, respectively.
  (c) Conforming Amendment.--Section 8751 (as redesignated by 
subsection (b)) is amended--
          (1) in subsection (e)(3), by striking ``under part C'' 
        through the end thereof and inserting ``under part F; and''; 
        and
          (2) in subsection (f)(4), by striking ``section 13401'' and 
        inserting ``section 8851''.

SEC. 804. EISENHOWER REGIONAL MATHEMATICS AND SCIENCE EDUCATION 
                    CONSORTIA.

  (a) In General.--Part C of title XIII (20 U.S.C. 8671 et seq.)--
          (1) is transferred to the end of title VIII, as amended by 
        section 803; and
          (2) is redesignated as part J.
  (b) Redesignation of Sections.--Sections 13301 through 13308 are 
redesignated as sections 8801 through 8808, respectively.
  (c) Conforming Amendments.--
          (1) Grant authorization.--Section 8801(a)(3) (as redesignated 
        by subsection (b)) is amended by striking ``section 13308'' and 
        inserting ``section 8808''.
          (2) Use of funds.--Section 8802 (as redesignated by 
        subsection (b)) is amended--
                  (A) by striking ``section 13304'' and inserting 
                ``section 8804'';
                  (B) in paragraph (2), by striking ``13301(a)(1)'' and 
                inserting ``8801(a)(1)''; and
                  (C) in paragraph (3), by striking ``13301(a)(1)'' and 
                inserting ``8801(a)(1)''.
          (3) Payments.--Section 8805 (as redesignated by subsection 
        (b)) is amended in each of subsections (a) and (c) by striking 
        ``section 13303'' and inserting ``section 8803''.
          (4) Evaluation.--Section 8806(a) (as redesignated by 
        subsection (b)) is amended by striking ``section 14701'' and 
        inserting ``section 8651''.
          (5) Definitions.--Section 8807(4) (as redesignated by 
        subsection (b)) is amended by striking ``section 13301'' and 
        inserting ``section 8801''.

SEC. 805. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.

  (a) In General.--Part D of title XIII (20 U.S.C. 8701)--
          (1) is transferred to the end of title VIII, as amended by 
        section 804; and
          (2) is redesignated as part K.
  (b) Redesignation of Section.--Section 13401 is redesignated as 
section 8851.

SEC. 806. REGIONAL TECHNICAL SUPPORT AND PROFESSIONAL DEVELOPMENT.

  (a) In General.--Subpart 3 of part A of title III (20 U.S.C. 6861 et 
seq.)--
          (1) is transferred to the end of title VIII, as amended by 
        section 805; and
          (2) is redesignated as part L.
  (b) Redesignation of Section.--Section 3141 is redesignated as 
section 8901.
  (c) Conforming Amendment.--Section 8901 (as redesignated by 
subsection (b)) is amended by striking ``part C of title XIII'' and 
inserting ``part J''.

                   TITLE IX--MISCELLANEOUS PROVISIONS

                    PART A--AMENDMENTS TO OTHER ACTS

              Subpart 1--National Education Statistics Act

SEC. 901. AMENDMENT TO NESA.

  Section 411 of the National Education Statistics Act of 1994 (20 
U.S.C. 9010) is amended--
          (1) by amending subsection (b)(2) to read as follows:
          ``(2) State assessments.--(A) The Commissioner, in carrying 
        out the National Assessment--
                  ``(i) may conduct State assessments of student 
                achievement in grades 4, 8, and 12; and
                  ``(ii) shall conduct annual State assessments of 
                student achievement in reading and mathematics in 
                grades 4 and 8 in order for States to carry out section 
                1111(c)(2) of the Elementary and Secondary Education 
                Act of 1965.
          ``(B)(i) Except as provided in clause (ii), a participating 
        State shall review and give permission for the release of 
        results from any test of its students administered as a part of 
        a State assessment prior to the release of the 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 that 
        data.
          ``(ii) A State participating in the annual State assessments 
        of its students in reading and mathematics in grades 4 and 8 
        shall be deemed to have given its permission to release its 
        data if it has an approved plan under section 1111 of the 
        Elementary and Secondary Education Act of 1965.''; and
          (2) by amending subsection (d) to read as follows:
  ``(d) Participation.--
          ``(1) National and regional participation.--Participation in 
        the national and regional assessments by State and local 
        educational agencies shall be voluntary.
          ``(2) State participation.--Participation in assessments made 
        on a State basis shall be voluntary.''.

                     Subpart 2--Homeless Education

SEC. 911. SHORT TITLE.

  This subpart may be cited as the ``McKinney-Vento Homeless Education 
Assistance Improvements Act of 2001''.

SEC. 912. FINDINGS.

  Congress makes the following findings:
          (1) An estimated 1,000,000 children in the United States will 
        experience homelessness in 2001.
          (2) Homelessness has a devastating impact on the educational 
        opportunities of children and youth. Homeless children go 
        hungry at more than twice the rate of other children, have four 
        times the rate of delayed development, and are twice as likely 
        to repeat a grade.
          (3) Despite steady progress in school enrollment and 
        attendance resulting from the passage in 1987 of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11301 et seq.), 
        homeless students still face numerous barriers to education, 
        including residency, guardianship and registration 
        requirements, delays in the transfer of school records, and 
        inadequate transportation service.
          (4) School is one of the few secure factors in the lives of 
        homeless children and youth, providing stability, structure, 
        and accomplishment during a time of great upheaval.
          (5) Homeless children and youth require educational stability 
        and the opportunity to maintain regular and consistent 
        attendance in school, so that they acquire the skills necessary 
        to escape poverty and lead productive, healthy lives as adults.
          (6) In the 14 years since the passage of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11301 et seq.), 
        educators and service providers have learned much about 
        policies and practices which help remove the barriers 
        described.

SEC. 913. PURPOSE.

  The purpose of this subpart is to strengthen subtitle B of title VII 
of Public Law 100-77 (42 U.S.C. 11431 et seq.) by amending it--
          (1) to include innovative practices, proven to be effective 
        in helping homeless children and youth enroll, attend, and 
        succeed in school; and
          (2) to help ensure that all children and youth impacted by 
        the loss of fixed, regular, and adequate housing receive a 
        quality education and secure their chance for a brighter 
        future.

SEC. 914. EDUCATION FOR HOMELESS CHILDREN AND YOUTH.

  Subtitle B of title VII of Public Law 100-77 (42 U.S.C. 11431 et 
seq.) is amended to read as follows:

        ``Subtitle B--Education for Homeless Children and Youth

``SEC. 721. STATEMENT OF POLICY.

  ``It is the policy of the Congress that--
          ``(1) each State educational agency ensure that each child of 
        a homeless individual and each homeless youth has equal access 
        to the same free, public education, including a public 
        preschool education, as provided to other children and youth;
          ``(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 
        youth, the State review and undertake steps to revise such 
        laws, regulations, practices, or policies to ensure that 
        homeless children and youth are afforded the same free, public 
        education as provided to other children and youth;
          ``(3) homelessness alone is not sufficient reason to separate 
        students from the mainstream school environment; and
          ``(4) homeless children and youth must have access to the 
        education and other services that such children and youth need 
        to ensure that such children and youth have an opportunity to 
        meet the same challenging State student academic achievement 
        standards to which all students are held.

``SEC. 722. GRANTS FOR STATE AND LOCAL ACTIVITIES FOR THE EDUCATION OF 
                    HOMELESS CHILDREN AND YOUTH.

  ``(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), 
(e), (f), and (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) In general.--Subject to paragraph (2) and section 
        724(d), from the amounts appropriated for each fiscal year 
        under section 726, 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 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 $125,000 or \1/2\ of 1 percent of the amount appropriated 
        under section 726, whichever is greater.
          ``(2) Reservation.--(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 one 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, 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 this Act.
          ``(ii) The Secretary and the Secretary of the Interior shall 
        enter into an agreement, consistent with the requirements of 
        this part, 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 such clause. 
        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.--As used in this subsection, the term 
        `State' shall not include the United States Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
  ``(d) Activities.--Grants under this section shall be used--
          ``(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 youth 
        that enable such children and youth to enroll in, attend, and 
        succeed in school, or, if appropriate, in preschool programs;
          ``(3) to establish or designate an Office of Coordinator of 
        Education of Homeless Children and Youth in the State 
        educational agency in accordance with subsection (f);
          ``(4) to prepare and carry out the State plan described in 
        subsection (g); and
          ``(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 youth.
  ``(e) State and Local Grants.--
          ``(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 
        grants 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 grants 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.
          ``(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, either in a separate school or in 
                a separate program within a school, based solely on 
                such child's or youth's status as homeless.
                  ``(B) Exception.--A State that operates a separate 
                school for homeless children as of the day preceding 
                the date of enactment of the McKinney-Vento Homeless 
                Education Assistance Improvements Act of 2001--
                          ``(i) shall remain eligible to receive, and 
                        to distribute to local educational agencies, 
                        funds under this subtitle for such school; and
                          ``(ii) shall not distribute to local 
                        educational agencies in the State any funds 
                        received under this subtitle for use by any 
                        such schools not in operation as of such date 
                        of enactment.
  ``(f) Functions of the Office of Coordinator.--The Coordinator of 
Education of Homeless Children and Youth established in each State 
shall--
          ``(1) gather, to the extent possible, reliable, valid, and 
        comprehensive information on the nature and extent of the 
        problems homeless children and youth have in gaining access to 
        public preschool programs and to public elementary and 
        secondary schools, the difficulties in identifying the special 
        needs of such children and youth, 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 program under this subtitle in assisting 
        homeless children and youth 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 information 
        gathered pursuant to paragraphs (1) and (2) at such time and in 
        such manner as the Secretary may require;
          ``(4) facilitate coordination between the State educational 
        agency, the State social services agency, and other agencies 
        providing services to homeless children and youth, including 
        homeless children, including preschool-aged homeless children, 
        and youth, and families of such children and youth;
          ``(5) in order to improve the provision of comprehensive 
        education and related services to homeless children and youth 
        and their families, coordinate and collaborate with--
                  ``(A) educators, including child development and 
                preschool program personnel;
                  ``(B) State and local providers of services to 
                homeless and runaway children and youth and homeless 
                families (including domestic violence agencies, shelter 
                operators, transitional housing facilities, runaway and 
                homeless youth centers, and transitional living 
                programs for homeless youth);
                  ``(C) local educational agency liaisons for homeless 
                children and youth; and
                  ``(D) State and local community organizations and 
                groups representing homeless children and youth and 
                their families; and
          ``(6) provide technical assistance to local educational 
        agencies, in coordination with local liaisons designated under 
        subsection (g)(1)(J)(ii), to ensure that local educational 
        agencies comply with the requirements of 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 
        youth within the State, which plan shall--
                  ``(A) describe how such children and youth are or 
                will be given the opportunity to meet the same 
                challenging State student academic achievement 
                standards all students are expected to meet;
                  ``(B) describe the procedures the State educational 
                agency will use to identify such children and youth in 
                the State and to assess their special needs;
                  ``(C) describe procedures for the prompt resolution 
                of disputes regarding the educational placement of 
                homeless children and youth;
                  ``(D) describe 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 youth;
                  ``(E) describe procedures that ensure that homeless 
                children and youth who meet the relevant eligibility 
                criteria are able to participate in Federal, State, or 
                local food programs;
                  ``(F) describe 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;
                          ``(ii) homeless youth and youth separated 
                        from the public schools are identified and 
                        accorded equal access to appropriate secondary 
                        education and support services; and
                          ``(iii) homeless children and youth who meet 
                        the relevant eligibility criteria are able to 
                        participate in Federal, State, or local before- 
                        and after-school care programs;
                  ``(G) address problems set forth in the report 
                provided to the Secretary under subsection (f)(3);
                  ``(H) address other problems with respect to the 
                education of homeless children and youth, including 
                problems caused by 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) demonstrate 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 youth in schools in the State; 
                and
                  ``(J) contain assurances that--
                          ``(i) except as provided in subsection 
                        (e)(3)(B), State and local educational agencies 
                        will adopt policies and practices to ensure 
                        that homeless children and youth are not 
                        segregated solely 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 liaison for homeless children 
                        and youth, 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, 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 the 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 or 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 liaisons established under 
                this subchapter.
          ``(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, either--
                          ``(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 the academic year; or
                                  ``(II) for the remainder of the 
                                academic year, if the child becomes 
                                permanently housed during the 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 
                        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)(2) assists in 
                        placement or enrollment decisions under this 
                        subparagraph 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 
                pursuant to section 725(3) 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 liaison who shall 
                assist in obtaining necessary immunizations or 
                immunization or medical records in accordance with 
                subparagraph (E).
                  ``(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, of 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 liaison 
                        designated under paragraph (1)(J)(ii), who 
                        shall carry out the dispute resolution process 
                        as described in paragraph (1)(A) 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.
                  ``(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 required by the local 
                educational agency of a parent or guardian of a 
                nonhomeless child.
          ``(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--
                  ``(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; and
                  ``(E) school nutrition programs.
          ``(5) Coordination.--
                  ``(A) In general.--Each local educational agency 
                serving homeless children and youth 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 youth 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 
                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-Gonzales National 
                Affordable Housing Act (42 U.S.C. 12705) to minimize 
                educational disruption for children and youth who 
                become homeless.
                  ``(C) Coordination purpose.--The coordination 
                required under subparagraphs (A) and (B) shall be 
                designed to--
                          ``(i) ensure that homeless children and youth 
                        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.
          ``(6) Liaison.--
                  ``(A) Duties.--Each local liaison for homeless 
                children and youth, designated under paragraph 
                (1)(J)(ii), shall ensure that--
                          ``(i) homeless children and youth are 
                        identified by school personnel and through 
                        coordination activities with other entities and 
                        agencies;
                          ``(ii) homeless children and youth enroll in, 
                        and have an equal opportunity to succeed in, 
                        schools of that agency;
                          ``(iii) homeless families, children, and 
                        youth receive educational services for which 
                        such families, children, and youth 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 youth are informed of the 
                        education 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 youth is disseminated 
                        where such children and youth receive services 
                        under this Act, such as schools, family 
                        shelters, and soup kitchens;
                          ``(vi) enrollment disputes are mediated in 
                        accordance with subsection (g)(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)(ii), 
                        and is assisted in accessing transportation to 
                        the school selected in accordance with 
                        paragraph (3)(A).
                  ``(B) Notice.--State coordinators whose duties are 
                described under subsection (d) and local educational 
                agencies shall inform school personnel, service 
                providers, and advocates working with homeless families 
                of the duties of the liaisons.
                  ``(C) Local and state coordination.--Local 
                educational agency liaisons for homeless children and 
                youth 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 
                youth.
          ``(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 youth in schools selected in accordance 
                with 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.
                  ``(C) Special attention.--Special attention shall be 
                given to ensuring the enrollment and attendance of 
                homeless children and youth who are not currently 
                attending school.

``SEC. 723. LOCAL EDUCATIONAL AGENCY GRANTS FOR THE EDUCATION OF 
                    HOMELESS CHILDREN AND YOUTH.

  ``(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 grants to local 
        educational agencies for the purpose of facilitating the 
        enrollment, attendance, and success in school of homeless 
        children and youth.
          ``(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 youth with nonhomeless children 
                        and youth; 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 
                        youth who are determined by the local 
                        educational agency to be at risk of failing in, 
                        or dropping out of, schools, 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 
                        segregates homeless children and youth from 
                        other children and youth, except as is 
                        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 
                                youth.
          ``(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 grant 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. Each such application shall include--
          ``(1) an assessment of the educational and related needs of 
        homeless children and youth, as defined in section 725(1) and 
        (2), in the area served by such agency (which may be undertaken 
        as part of needs assessments for other disadvantaged groups);
          ``(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); and
          ``(5) a description of policies and procedures, consistent 
        with section 722(e)(3)(B), that the agency will implement to 
        ensure that activities carried out by the agency will not 
        isolate or stigmatize homeless children and youth.
  ``(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 youth enrolled in preschool, elementary, and 
        secondary schools within the area served by the agency, and 
        shall consider the needs of such children and youth and the 
        ability of the agency to meet such needs. Such agency may also 
        consider--
                  ``(A) the extent to which the proposed use of funds 
                would facilitate the enrollment, retention, and 
                educational success of homeless children and youth;
                  ``(B) the extent to which the application--
                          ``(i) reflects coordination with other local 
                        and State agencies that serve homeless children 
                        and youth; and
                          ``(ii) meets 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 youth; and
                  ``(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--
                  ``(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;
                  ``(D) the extent to which homeless children and youth 
                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 available 
                services; and
                  ``(G) such other measures as the State educational 
                agency considers indicative of a high-quality program.
          ``(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 to carry out the 
purpose of this subtitle, including--
          ``(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 youth;
          ``(2) the provision of expedited evaluations of the strengths 
        and needs of homeless children and youth, 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 youth, the rights of such 
        children and youth under this Act, and the specific educational 
        needs of runaway and homeless youth;
          ``(4) the provision of referral services to homeless children 
        and youth for medical, dental, mental, and other health 
        services;
          ``(5) the provision of assistance to defray the excess cost 
        of transportation for students pursuant to 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 children;
          ``(7) the provision of services and assistance to attract, 
        engage, and retain homeless youth (as described in paragraphs 
        (1) and (2) of section 725) in public school programs and 
        services provided to nonhomeless youth;
          ``(8) the provision for homeless children and youth 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;
          ``(9) if necessary, the payment of fees and other costs 
        associated with tracking, obtaining, and transferring records 
        necessary to enroll homeless children and youth 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 youth about the rights of, and 
        resources available to, such children and youth;
          ``(11) the development of coordination between schools and 
        agencies providing services to homeless children and youth, 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 youth that may arise from domestic violence;
          ``(14) the adaptation of space and purchase of supplies for 
        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; and
          ``(16) the provision of other extraordinary or emergency 
        assistance needed to enable homeless children and youth to 
        attend school.

``SEC. 724. SECRETARIAL RESPONSIBILITIES.

  ``(a) Review of 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 plans adequately address the problems 
of homeless children and youth relating to access to education and 
placement as described in such plans.
  ``(b) Technical Assistance.--The Secretary shall provide support and 
technical assistance to the State educational agencies to assist such 
agencies to carry out their 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 the 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 youth 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 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 (e), 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) Information.--
          ``(1) In general.--From funds appropriated under section 726, 
        the Secretary shall, either 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 youth;
                  ``(B) the education and related services such 
                children and youth receive;
                  ``(C) the extent to which such needs are being met; 
                and
                  ``(D) such other data and information as the 
                Secretary deems 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.
  ``(h) Report.--Not later than 4 years after the date of the 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 youth, which shall include information on--
          ``(1) the education of homeless children and youth; and
          ``(2) the actions of the Department and the effectiveness of 
        the programs supported under this subtitle.

``SEC. 725. DEFINITIONS.

  ``In this subtitle:
          ``(1) The term `homeless children and youth'--
                  ``(A) means individuals who lack a fixed, regular, 
                and adequate nighttime residence (within the meaning of 
                section 103(a)(1));
                  ``(B) includes--
                          ``(i) children and youth who are living in 
                        doubled-up accommodations sharing the housing 
                        of another 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) individuals 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)); 
                        and
                          ``(iii) children and youth who are living in 
                        cars, parks, public spaces, abandoned buildings 
                        or substandard housing, bus or train stations, 
                        or similar settings; and
                  ``(C) does not include migratory children (as such 
                term is defined in section 1309(2) of the Elementary 
                and Secondary Education Act of 1965), unless such 
                children are staying in accommodations not fit for 
                habitation.
          ``(2) The term `unaccompanied youth' includes youth not in 
        the physical custody of a parent or guardian.
          ``(3) The terms `enroll' and `enrollment' include within 
        their meaning the right to attend classes and to participate 
        fully in school activities.
          ``(4) The terms `local educational agency' and `State 
        educational agency' have the meanings given such terms in 
        section 8101 of the Elementary and Secondary Education Act of 
        1965.
          ``(5) The term `Secretary' means the Secretary of Education.
          ``(6) The term `State' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

  ``For the purpose of carrying out this subtitle, there are authorized 
to be appropriated $60,000,000 for fiscal year 2002 and such sums as 
may be necessary for each of the fiscal years 2003 through 2006.''.

SEC. 915. 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''.
  (b) 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 B--REPEALS

SEC. 921. REPEALS.

  The following provisions are repealed:
          (1) Goals.--Parts A and C of title II and title VI of Goals 
        2000: Educate America Act.
          (2) Troops-to-teachers program act of 1999.--The Troops-to-
        Teachers Program Act of 1999 (title XVII of Public Law 106-65; 
        20 U.S.C. 9301 et seq.).
          (3) ESEA.--
                  (A) Title IX, relating to Indian, Native Hawaiian, 
                and Alaska Native education.
                  (B) Parts A, B, C, D, F, G, I, J, L, of title X, 
                relating to programs of national significance.
                  (C) Title XI, relating to coordinated services.
                  (D) Title XII, relating to education infrastructure.
                  (E) The title heading of title XIII and sections 
                13001 and 13002.
                  (F) Title XIV, relating to general provisions.

                                Purpose

    The purpose of H.R. 1, the No Child Left Behind Act of 
2001, is to transform the federal role in education and advance 
our nation's education priorities. The bill reauthorizes the 
Elementary and Secondary Education Act of 1965 and 
fundamentally reforms the Act by increasing accountability for 
student performance, focusing on what works, reducing 
bureaucracy, increasing flexibility, and empowering parents. 
Key components of the legislation include: (1) closing the 
achievement gap through high State academic standards, annual 
State academic assessments, and consequences for schools that 
fail to teach; (2) promoting parental empowerment through 
reports to parents on the performance of States and schools, 
assisting charter schools, expanding public school choice, and 
allowing students in failing schools to receive supplementary 
educational services from a provider of their parent's choice; 
(3) improving literacy by focusing on reading in the early 
grades and early childhood reading instruction; (4) expanding 
freedom to teach and learn by increasing flexibility in Title I 
and reducing duplicative and excessive programs and 
regulations; (5) rewarding success and sanctioning failure by 
providing financial rewards for States that improve academic 
achievement and narrow the achievement gap, and reducing 
federal funds to States that fail to demonstrate results; (6) 
improving teacher quality by ensuring that all students are 
taught by fully qualified teachers, encouraging professional 
development based on research, and strengthening math and 
science education; and (7) making schools safer by protecting 
teachers from frivolous lawsuits, promoting school safety, 
allowing students to escape unsafe schools, and supporting 
character education.

                            Committee Action

                                HEARINGS

    The Committee on Education and the Workforce, the 
Subcommittee on Education Reform, and the Subcommittee on 21st 
Century Competitiveness together have held 11 hearings both in 
and outside of Washington, D.C. during the 107th Congress to 
review and make determinations on reauthorizing the Elementary 
and Secondary Education Act. A list of all the hearings are as 
follows:

Full Committee Hearings

    1. March 1, 2001, ``State Leadership in Education Reform.''
    2. March 7, 2001, ``Leave No Child Behind.''
    3. March 28, 2001, ``No Child Left Behind.''
    4. March 29, 2001, ``Transforming the Federal Role in 
Education for the 21st Century.''

Field hearings

    1. February 16, 2001, ``Flexibility, Accountability, and 
Quality Education'' in Bradenton, Florida.
    2. February 20, 2001, ``Reading and Accountability: 
Improving 21st Century Schools'' in Marietta, Georgia.
    3. March 2, 2001, ``Improving Academic Achievement with 
Freedom and Accountability'' in Chicago, Illinois.

Subcommittee on Education Reform

    1. March 8, 2001, ``Measuring Success: Using Assessments 
and Accountability to Raise Student Achievement.''
    2. March 14, 2001, ``Empowering Success: Flexibility and 
School Choice.''

Field hearing

    1. May 1, 2001, ``Ensuring Educational Opportunity for 
Minority Children'' in Lexington, Kentucky.

Subcommittee on 21st Century Competitiveness

    March 15, 2001, ``Improving Student Achievement Through 
Technology.''
    There was significant activity relating to the 
reauthorization of the Elementary and Secondary Education Act 
in the 106th Congress. In total, the full Committee, the 
Subcommittee on Early Childhood, Youth and Families, the 
Subcommittee on Postsecondary Education, Training and Life-Long 
Learning, and the Subcommittee on Oversight and Investigations, 
and held 55 hearings. Ultimately, there was not a 
reauthorization of the act during the 106th Congress.

                           LEGISLATIVE ACTION

    On March 22, 2001, Representative John Boehner (R-OH) 
introduced H.R. 1, the No Child Left Behind Act of 2001. H.R. 1 
contains the President's education proposals for elementary and 
secondary education, as well as a comprehensive reauthorization 
of the Elementary and Secondary Education Act of 1965 (ESEA).
    On the basis of the hearings, bills referred to the 
Committee, the Subcommittee on Education Reform and the 
Subcommittee on 21st Century Competitiveness, the 
recommendations of the administration, and the recommendations 
of the education community and groups representing the 
interests of families, an amendment in the nature of a 
substitute was prepared. The Committee on Education and the 
Workforce considered a substitute offered by the Chairman to 
H.R. 1, the No Child Left Behind Act of 2001 in legislative 
session on May 2, 3, and 9, 2001 during which 46 amendments 
were considered on which 8 roll call votes were taken. The 
Committee on Education and the Workforce with a majority of the 
Committee present ordered the bill favorably reported by a vote 
of 41 to 7 on May 9, 2001.

                                Summary

                              INTRODUCTION

Section 1

    Section 1 gives the short title of the bill.

Section 2

    Section 2 states that references to an amendment or repeal 
of a section or other provisions shall be considered to be made 
to the Elementary and Secondary Education Act.

Section 3

    Section 3 establishes a one-year transition rule for 
certain grants awarded prior to the date of enactment.

Section 4

    Section 4 establishes an effective date of October 1, 2001 
or the date of the enactment of the No Child Left Behind Act, 
whichever occurs later.

    Title I--Improving the Academic Performance of the Disadvantaged

                     TITLE I, PART A--BASIC PROGRAM

    Title I, Part A of H.R. 1 extends and modifies Title I, 
Part A of the Elementary and Secondary Education Act (ESEA). 
Part A provides supplemental educational services to low-
achieving students to assist them in meeting challenging State 
student academic achievement standards. The bill expands the 
existing standards and assessments-based structure to Title I 
by requiring annual academic assessments in reading and math in 
grades 3-8 instead of in just three grades; strengthens 
academic accountability by holding all States, school districts 
and schools accountable for ensuring that their students meet 
high academic standards; provides for distribution of report 
cards on the academic quality of all schools, including the 
qualifications of teachers and teachers' aides, to parents and 
communities; gives students the opportunity to leave failing 
Title I schools and enroll in other public schools or charter 
schools; allows disadvantaged students in schools that fail for 
three consecutive years to receive supplemental educational 
services from a provider of choice; provides rewards to Title I 
schools that are closing the achievement gap; ensures that all 
newly-hired teachers funded by Title I are fully qualified; 
raises the qualifications of teachers' aides; and provides 
greater flexibility to schoolwide programs.

       TITLE I, PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

Subpart 1--Reading First

    Reading First is a new program that would triple the 
funding for improving classroom reading instruction and provide 
assistance to States and local educational agencies in 
establishing scientific research-based reading programs for all 
children in kindergarten through grade three. It would provide 
the necessary professional development to ensure that teachers 
can identify children at-risk for reading failure and provide 
the most effective early instruction to overcome specific 
barriers to reading proficiency. Eighty percent of the funds 
would go to States under a poverty-based formula. The remaining 
20 percent would be made available for two-year discretionary 
performance based grants to States that reduce the number of 
children who cannot read. States could use up to 15 percent of 
the funds for professional development. States must distribute 
at least 80 percent of their funds to local educational 
agencies through a competitive process, giving priority to high 
poverty areas in which there are a high percentage of students 
in grades K-3 reading below grade level. Funds under Reading 
First are to be used for diagnostic assessments and 
instructional materials that include the essential components 
of reading instruction. The Secretary will order a five-year 
external evaluation of the Reading First program, and provide 
such technical assistance to States and local educational 
agencies as requested.

Subpart 2--Early Reading First

    Early Reading First is a new competitive grant initiative 
that will provide funds to enhance reading readiness for 
children in high poverty areas, and where there are high 
numbers of students who are not reading at grade level. Early 
Reading First is targeted towards children ages three through 
five, and would support the development of verbal skills, 
phonemic awareness, pre-reading development and assistance for 
professional development for teachers in child care centers or 
Head Start centers in instructional activities that would 
prepare children for formal reading instruction in kindergarten 
and grade one.

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

    H.R. 1 extends and reauthorizes the Even Start Family 
Literacy Program, which is designed to improve the quality of 
Even Start programs that provide literacy services to parents 
and their children in order to break cycles of illiteracy. This 
was accomplished by requiring Even Start projects to use 
instructional programs based on scientifically based research 
on reading, establishing qualifications for program 
instructors, tying local program objectives to state indicators 
of program quality, strengthening evaluation of local programs 
and their use in program improvement, and authorizing research 
to find the most effective way of improving literacy among 
adults with reading difficulties.

Subpart 4--Inexpensive Book Distribution Program

    H.R. 1 extends and reauthorizes the Inexpensive Book 
Distribution Program, which is operated under a single, 
noncompetitive award to Reading is Fundamental, Inc. (RIF). It 
supports, through subcontracts, local private nonprofit groups 
and organizations, or public agencies that distribute 
inexpensive books to children with the objective of motivating 
children to read. Federal funds pay for up to 75 percent of the 
cost of books, except that the federal share for programs 
serving the children of migrant and seasonal farm workers is 
100 percent. Contractors are to give priority to programs that 
serve a substantial number or percent of children with special 
needs, such as children with disabilities, low-income children, 
and children at risk of school failure.

            TITLE I, PART C--EDUCATION OF MIGRATORY CHILDREN

    Title I, Part C of H.R. 1 extends and modifies Title I, 
Part C of the Elementary and Secondary Education Act, 
``Education of Migratory Children.'' The bill makes slight 
modifications to the eligibility requirements for receiving 
funds under this Part to better address the needs of migrant 
children. Some of the most important provisions seek to improve 
the transfer of migrant student records. These provisions 
direct the Secretary to assist States in developing effective 
methods for the transfer of student records and for determining 
the minimum data elements to be transferred. The bill also 
provides States with increased flexibility in the use of these 
funds.

            TITLE I, PART D--NEGLECTED AND DELINQUENT YOUTH

    Title I, Part D of H.R. 1 makes several minor changes to 
Title I, Part D of ESEA for neglected and delinquent children. 
The majority of changes are made to ensure the Subpart 2 
program for local educational agencies is focused primarily on 
addressing the needs of youth returning from local correctional 
facilities to their local schools or programs of alternative 
education. The amendments would still permit local educational 
agencies to serve the needs of other at risk children as long 
as they first meet the academic and other needs of youth 
returning from local correctional facilities. The bill also 
increases the amount of Subpart 1 funds States are to set aside 
to use to transition youth in State correctional facilities 
back to their local schools from 10 to 15 percent.

                      TITLE I, PART E--EVALUATIONS

    Section 1501 authorizes the Secretary to conduct 
evaluations and assessments, collect data, and carry out other 
activities that support the Title I programs and provide 
information useful to those who would support the activities 
that are essential for the Title I programs; and helping 
States, LEAs, and schools develop management information 
systems. Section 1501 would also provide for the continued 
conduct of the national assessment of Title I and a national 
longitudinal study of Title I schools.
    Section 1502 authorizes the Secretary to conduct 
demonstrations of innovative practices.
    Section 1503 authorizes the Ellender Fellowship program. 
This program, administered by the private, non-profit Close Up 
Foundation, provides financial aid to enable low-income 
students, their teachers, older Americans, recent immigrants, 
and children of migrant parents to come to Washington, DC to 
study the operations of the three branches of government. 
Activities include attending seminars on government and current 
events, and meeting with government leaders.
    Section 1504 requires recipients of Title I funds to report 
dropouts rates to the National Center for Educational 
Statistics.

              TITLE I, PART F--COMPREHENSIVE SCHOOL REFORM

    Title I, Part F of H.R. 1 puts into statutory form the 
comprehensive school reform grant program. The comprehensive 
school reform grant program provides financial incentives for 
schools to develop comprehensive reforms to change an entire 
school. The reforms must be based upon reliable research and 
effective practices, and emphasize basic academics and parental 
involvement.

      TITLE I, PART G--RURAL EDUCATION FLEXIBILITY AND ASSISTANCE

    H.R. 1 provides rural school districts with increased 
flexibility and funding to enhance academic achievement and 
addresses the unique needs of rural school districts that 
cannot compete for federal education grants because of 
inadequate resources. Specifically, H.R. 1 will address the 
different needs of (1) small, rural school districts and (2) 
low-income, rural school districts. Under Subpart 1, an LEA 
would be eligible if the total number of students in average 
daily attendance at all of the schools served by the LEA is 
less than 600; and all of the schools served by the LEA are 
designated with a School Locale Code of 7, or 8, as determined 
by the Secretary of Education. Eligible LEAs would be able to 
combine funding under various formula grant programs to support 
local or Statewide education reform efforts intended to improve 
the academic achievement of elementary and secondary school 
students and the quality of instruction provided for these 
students. Grants under this provision would be awarded to 
eligible LEAs based on the number of students in average daily 
attendance less the amount they received from consolidated 
formula grant programs. LEAs participating in this initiative 
would have to meet high accountability standards by 
demonstrating the ability to meet academic achievement 
standards under Title I, such as the State's definition of 
adequate yearly progress. Schools failing to meet these 
requirements would not be eligible for continued funding.
    If an LEA did not qualify for funding under Subpart 1, it 
could seek funds under Subpart 2. An LEA would be eligible to 
use the applicable funding under Subpart 2 if it serves a 
school-age population, 20 percent or more of whom are from 
families with incomes below the poverty line; and all of the 
schools served by the LEA are designated with a School Locale 
Code of 6, 7, or 8, as determined by the Secretary of 
Education. Funds under this Subpart can be used for such things 
as: educational technology, professional development, technical 
assistance, and teacher recruitment and retention.

             TITLE I, PART H--GENERAL PROVISIONS OF TITLE I

    Title I, Part H of H.R. 1 includes general provisions 
governing Title I. Such provisions include negotiated 
rulemaking; State rulemaking; a State Committee of 
practitioners to advise the Statein carrying out its 
responsibilities under Title I; local educational agency administrative 
cost limitations; and rules of construction.

     Title II--Preparing, Training, and Recruiting Quality Teachers

     TITLE II, PART A--TEACHER QUALITY TRAINING AND RECRUITING FUND

    The purpose of this Part is to provide grants to States, 
LEAs, and eligible partnerships in order to assist their 
efforts to increase student academic achievement through such 
strategies as improving teacher quality and increasing the 
number of highly qualified teachers in the classroom. H.R. 1 
consolidates and streamlines the Eisenhower Professional 
Development program and the Class Size Reduction program to 
provide States and local schools additional flexibility in the 
use of these funds, in exchange for increased accountability, 
by demonstrating that student achievement is increasing.
    Funds are sent to States by formula (50 percent based on 
population and 50 percent based on poverty). State allotments 
would have to be equal to funding received under the Eisenhower 
Professional Development program and the Class Size Reduction 
program. States are authorized to retain 5 percent of funds for 
State activities. States send funding to the local level by 
formula and by competitive grant. Local educational agency 
allotments would have to be equal to funding received under the 
Eisenhower Professional Development program and the Class Size 
Reduction program. 80 to 85 percent of the funds (at the 
discretion of the State) are sent to local educational agencies 
by formula (20 percent based on population and 80 percent based 
on poverty) for local uses of finds. States, working in 
conjunction with State Agencies for Higher Education, must 
award at least 15 percent but not more than 20 percent of the 
funds (at the discretion of the State) on a competitive basis 
to eligible partnerships for math and science programs. 
Eligible partnerships must include at least: (1) a State 
educational agency; (2) a mathematics or science department of 
a private independent or State-supported public institution of 
higher education; and (3) a high need local educational agency. 
This part also continues and updates the Troops-to-Teachers and 
Transition to Teaching programs.

               TITLE II, PART B--NATIONAL WRITING PROJECT

    H.R. 1 continues and updates the authorization for the 
National Writing Project. The purpose of this program is to 
support in-service teacher training programs, including the 
dissemination of effective practices and research funding, 
regarding the teaching of writing and related skills (in 
language arts subjects and across the curriculum) at all 
educational levels. The program supports professional 
development for teachers of writing and teachers of other 
subjects who are interested in writing, including teachers who 
serve students at the pre K-12, postsecondary, and adult 
education levels. The program is also authorized to award 
grants for classroom research projects conducted by elementary 
and secondary school teachers.

                   TITLE II, PART C--CIVIC EDUCATION

    This program supports the Center for Civic Education and 
its education program that encourages instruction on the 
principles of our Constitutional democracy; the history of the 
Constitution and the Bill of Rights; congressional hearings 
simulations; and annual competitions of simulated congressional 
hearings for secondary school students. It also authorizes the 
National Council on Economic Education to conduct Cooperative 
Education Exchange programs that provide curricula and teacher 
training programs in civics education and economic education, 
developed in the U.S., for educators in eligible countries 
overseas. Countries in Central and Eastern Europe, the 
Commonwealth of Independent States, and the former Soviet Union 
are eligible.

             TITLE II, PART D--TEACHER LIABILITY PROTECTION

    This Part provides civil litigation immunity to teachers, 
principals, local school board members, superintendents, and 
other education professionals, when they are sued in their 
individual capacity under a federal cause of action for 
monetary damages. The immunity, in general, extends to 
reasonable actions that teachers and other administrators take 
to maintain order and discipline in carrying out their official 
duties. The protections do not extend to reckless or criminal 
misconduct, or to actions that are prohibited under State or 
local law. Furthermore, the immunity provisions do not affect 
in any way tort claims or other causes of action that may be 
brought under State or local law.
    Title III--Education of Limited English Proficient and 
Immigrant Children; Indian and Alaskan Native Education

     TITLE III, PART A--ENGLISH LANGUAGE PROFICIENCY AND ACADEMIC 
                            ACHIEVEMENT ACT

    Title III, Part A of H.R. 1 consolidates the Bilingual 
Education Act with the Emergency Immigrant Education Program 
and the Foreign Language Assistance Program to create a formula 
grant program to the States. The consolidated program provides 
States and local providers with the flexibility to choose the 
type of instructional program provided to limited English 
proficient (LEP) children. The majority of changes are focused 
on reforming federally funded programs for limited English 
proficient children (including immigrant children and youth) in 
order to ensure they become proficient in English and 
transition into classrooms where instruction is not tailored 
for LEP children as soon as possible. Title III, Part A 
requires local educational agencies to obtain informed parental 
consent prior to placing children in an instructional program 
that is not taught primarily in English; provides parents the 
right to choose among instructional programs if more than one 
type of program is offered; and gives parents the right to 
immediately remove their child from a program for limited 
English proficient children. Title III, Part A also requires 
reading and language arts assessments for children to be in 
English who have attended school in the United States for at 
least three consecutive years, and who participate in a program 
funded under this Act; ensures that 95 percent of funds must be 
used at the local level; and holds States accountable for 
results by reducing all ESEA administrative funds up to 20 
percent for States that fail to have the majority of their 
limited English proficient children becoming English language 
proficient

         TITLE III, PART B--INDIAN AND ALASKAN NATIVE EDUCATION

    Title III, Part B re-designates Title IX of the Elementary 
and Secondary Education Act as Title III, Part B, and amends 
the old Title IX as well as Title XI of the Education 
Amendments of 1978, and the Tribally Controlled Schools Act of 
1988. Taken together, these statutes provide most of the 
federal government's's education aid that is specifically 
targeted to American Indian and Alaska Native students and the 
schools and the organizations that serve them. In updating and 
improving these programs, the Committee has focused on 
improving student achievement, targeting resources to the 
programs that are providing the best results, greatly 
increasing the flexibility of the programs at the local level 
so that Native Americans and Alaskan Natives can make the 
decisions which impact themselves, reducing the administrative 
burden placed on participating entities, increasing the amount 
of aid that actually reaches the classroom, and increasing the 
emphasis placed on family literacy services for the effected 
populations. In addition, with respect to education programs 
funded by the Bureau of Indian Affairs, the Committee has 
shifted as much authority and responsibility to the Tribes, 
tribal organizations, and local school boards as possible while 
maintaining accountability for the use of federal funds.

  Title IV--Promoting Informed Parental Choice and Innovative Programs

                 TITLE IV, PART A--INNOVATIVE PROGRAMS

Subpart 1--State and Local Innovative Programs

    Innovative Education Program Strategies (Title VI under 
current law) is the only K-12 education block grant program 
contained within the ESEA. It is the only formula program that 
allows recipients to use funds to benefit any and all student 
populations, in any and all schools. Under H.R. 1, the purposes 
of the program are to: provide funding to enable States and 
local educational agencies to implement promising educational 
reform programs and school improvement initiatives based on 
scientifically based research; provide a continuing source of 
innovation and educational improvement, including support for 
library services and instructional and media materials; and 
meet the educational needs of all students, including at risk 
students. H.R. 1 expands the State uses of funds to include 
support for arrangements that provide for independent analysis 
to measure and report on school district achievement. In 
addition, Title IV, part A of H.R. 1 includes language to add 
more uses of funds to the current list so LEAs can broaden the 
scope of the program. These new uses include: professional 
development activities and the hiring of teachers; activities 
to promote consumer, economic, and personal finance education; 
expanding and improving school-based mental health services; 
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; activities to improve 
the quality of civics and government education; alternative 
educational programs for those students who have been expelled 
or suspended from their regular educational setting; and 
programs to hire and support school nurses. Under current law, 
up to 15 percent of the funds are retained, and controlled, at 
the State level. H.R. 1 includes language to send 100 percent 
of any new funding for this program over the FY 2001 
appropriation to the local level. This change to current law 
will result in more funds being sent to the school district and 
classroom levels.

Subpart 2--Arts Education

    H.R. 1 amends the Arts in Education programs found in Title 
X, Part D, of the Elementary and Secondary Education Act. In 
updating and improving these programs, the Committee has 
focused on increasing the involvement of local arts educators 
and State and local arts organizations, and on simplifying the 
program by targeting resources to the programs that are 
providing results. Specifically, the bill continues the Arts 
Education program at its current funding level; updates 
congressional findings and eliminates outdated references; 
eliminates a restrictive consultation provision that has 
prevented the participation of local organizations in the 
program; shifts the focus of collaborative efforts to arts 
educators and State and local arts agencies; requires the 
Secretary to consult with arts educators and organizations 
representing the arts when awarding grants; continues 
participation in the program by the Kennedy Center and VSA arts 
(formerly Very Special Arts); and requires that federal arts 
education funds be used only to supplement and not supplant 
non-federal arts activities. The bill further simplifies and 
focuses the program by eliminating the unfunded Cultural 
Partnerships for At-Risk Children and Youth program as well as 
an outdated appropriations threshold.

Subpart 3--Gifted and Talented Children

    H.R. 1 continues the Jacob K. Javits Gifted and Talented 
Students Education Program, which awards grants to State and 
local educational agencies, institutions of higher education, 
and other public and private agencies and organizations to help 
build a nationwide capability to meet the needs of gifted and 
talented students in elementary and secondary schools. Since 
1989, the Javits Gifted and Talented Program has funded almost 
100 grants that supported model programs and practices for 
educating talented students nationwide. Projects under the 
program identify gifted and talented students; individualize 
instruction; involve parents in the education of their 
children; and expand educational opportunities by collaborating 
with business, industry, and other organizations.

                   TITLE IV, PART B--CHARTER SCHOOLS

    The Public Charter Schools Program provides three-year 
competitive grants for the planning, program design and initial 
implementation of charter schools to those States that have a 
State charter statute. Charter schools are nonsectarian public 
schools. The ``charter'' establishing each school is a written 
performance contract that provides public support for the 
school for a specified period of time. The school's charter 
gives the school autonomy over its operation and frees the 
school from regulations that other public schools must follow. 
In exchange for autonomy, charter schools are held accountable 
for meeting the terms of their charters including increasing 
student academic achievement.

                    TITLE IV, PART C--MAGNET SCHOOLS

    The Magnet Schools Assistance Program (MSAP) provides 
competitive grants to local educational agencies for magnet 
schools that are implementing school desegregation plans. 
Magnet schools offer special vocational or academic programs 
designed to attract students from outside the school's 
traditional enrollment area. MSAP grantees receive three-year 
awards, which cannot exceed $4 million per year. Funds may be 
used for planning and promoting academic programs, acquiring 
instructional equipment, and paying the salaries of fully 
qualified teachers who conduct programs in magnet schools. 
However, over the three-year period, a decreasing proportion of 
the grant may be used for planning activities; 50 percent, 15 
percent, and 10 percent respectively.
    H.R. 1 reauthorizes the Women's Educational Equity Act 
(WEEA). This program promotes gender equity in education and 
provides financial assistance to enable educational agencies 
and institutions to comply with Title IX of the Education 
Amendments of 1972 (which prohibits sex discrimination in 
educational programs and activities that receive federal 
financial assistance). WEEA authorizes the Secretary of 
Education to award two types of grants: to develop and 
implement gender equity programs; and to provide ``support and 
technical assistance'' in areas such as teacher training and 
evaluation of exemplary programs, as well as for research and 
development.

                     Title V--21st Century Schools

           TITLE V, PART A--21st CENTURY SCHOOLS ACT OF 2001

    Title V, Part A of H.R. 1 extends and amends the Safe and 
Drug-Free Schools and Communities Act; the 21st Century 
Community Learning Centers Program; and the Gun Free Schools 
Act.
    Title V, Part A brings three major federal laws with a 
focus on the safety of students and teachers while at school 
facilities together to form a comprehensive approach to school 
safety and academic achievement. By bringing the Safe and Drug-
Free Schools and Communities Act, the 21st Century Community 
Learning Centers program and the Gun Free Schools Act together 
into a single title of ESEA, the Committee is signaling its 
commitment to programs and activities authorized by this part 
which will support efforts to prevent the use of illegal drugs, 
prevent violence, and provide quality before and after school 
activities for school-aged children in order to foster a safe 
and drug free learning environment in which students increase 
their academic achievement.

Subpart 1--Safe Schools

    Subpart 1 reauthorizes and reforms the Safe and Drug-Free 
Schools and Communities Act (SDFSCA). It provides funds to 
States through a formula based 50 percent on school age 
population and 50 percent on Title I to assist in the 
establishment, operation, and improvement of programs of drug 
and violence prevention in elementary and secondary schools. 
Subpart 1 continues the current law authorization for Governors 
to use up to 20 percent of a State's SDFSCA grant to provide 
competitive grants to local educational agencies, community-
based organizations, and other private and public organizations 
for activities consistent with the goals of the Act. The 
remainder of funds are distributed by formula grant to local 
educational agencies. The new formula reflects the Committee's 
desire--evident throughout H.R. 1--to target federal resources 
to schools with high proportions of low-income students.

Subpart 2--21st Century schools

    Subpart 2 specifically focuses on 21st Century Community 
Learning Centers programs and provides funds through a formula 
to the States based 50 percent on school age population and 50 
percent on Title I. States will use the federal funds to 
provide grants on a competitive basis to local educational 
agencies, community-based organizations, and other private and 
public organizations to administer before and after school 
programs for youth.

Subpart 3--National programs

    Subpart 3 authorizes national programs to support the goals 
of Title V, part A including demonstrations and evaluations of 
innovative programs, information dissemination, and technical 
assistance.

Subpart 4--Gun possession

    Subpart 4 reauthorizes the Gun Free Schools Act, which 
requires local educational agencies to have a policy in place 
requiring a one-year expulsion for any student who possesses a 
firearm on school property. The law provides flexibility for 
local schools by allowing the head of an LEA to consider the 
appropriateness of the expulsion on a case by-case basis. In 
addition to some minor modifications to the act, H.R. 1 
eliminates the section that requires the Secretary to 
disseminate policy guiding the implementation of the Act and 
its connection to Individuals with Disabilities Education Act 
(IDEA).

Subpart 5--General provisions

    Subpart 5 contains general provisions, parental consent 
requirements, prohibited uses of funds, and definitions.
    H.R. 1 also requires a greater focus on quality programming 
by including ``Principles of Effectiveness'' in Subparts 1 and 
2. The principles require any program or activity funded under 
the Act to be: based upon an assessment of objective data; 
based upon performance measures established by the LEA; based 
upon scientifically based research that provides evidence that 
the program or activity will prevent or reduce drug abuse and 
violence (there is a waiver for innovative programs with a 
likelihood of success); and be periodically evaluated with the 
results used to improve the program or activity.

        TITLE V, PART B--ENHANCING EDUCATION THROUGH TECHNOLOGY

    Enhancing Education Through Technology consolidates all of 
the current Title III programs under the Elementary and 
Secondary Education Act (except for Ready To Learn Television 
and the Telecommunications Demonstration Project for 
Mathematics) into a single performance-basedtechnology grant 
program. These programs include the Technology Literacy Challenge Fund, 
the Local Innovation Challenge Grants, Regional Consortia, Technology 
Leadership Activities, Preservice Teacher Training in Technology, 
Community-Based Technology, and Star Schools. At the federal level, 95 
percent of the consolidated funds are provided to the States through a 
formula based 50 percent on the State's school age population and 50 
percent on Title I. The Secretary may spend the remaining 5 percent on 
evaluations, technical assistance, and programs of national 
significance.
    At the State level, States may spend 5 percent on 
activities such as technical assistance and funding innovative 
programs. From the State to local level, 95 percent of the 
funds are directed to local educational agencies. Of the total 
funds going locally, 60 percent is distributed through a State 
formula based 100 percent on Title I, while the remaining 40 
percent is competitively distributed by the State. Funds may be 
used for increasing access to technology (particularly in high-
need schools), improving teacher professional development in 
technology, and/or promoting innovative State and local 
initiatives that use technology to increase academic 
achievement. Enhancing Education Through Technology also 
maintains the current legal requirement that recipients of 
funds must have technology in place for the protection of 
minors, to filter or block obscenity, child pornography, and 
material that is harmful to minors.
    Enhancing Education Through Technology also consolidates 
the Ready To Learn Television program and the 
Telecommunications Demonstration Project for Mathematics under 
a new subpart entitled Ready To Learn, Ready To Teach. Under 
this subpart, the Secretary is required to fund the Ready To 
Learn Television program and may fund the development of 
digital content and a national telecommunications-based program 
to improve the teaching of core academic subjects (similar to 
that of the Telecommunications Demonstration Project for 
Mathematics).

                  TITLE V, PART C--CHARACTER EDUCATION

    This program awards grants to State educational agencies, 
local educational agencies, or a consortia of such agencies for 
the design and implementation of character education programs 
that can be integrated in State academic content standards and 
can be carried out in conjunction with other educational reform 
efforts. Each agency or consortium may contract with outside 
sources, including institutions of higher education and private 
and nonprofit organizations (including religious 
organizations), for assistance with evaluation, developing 
secular curricula, and integrating secular character education 
into the curriculum and teaching methods. Each recipient of 
assistance under this part must take into consideration the 
views of the parents of students when selecting elements of 
character that will be taught under the program. Elements of 
character selected under the program may include the following: 
trustworthiness, respect, responsibility, fairness, caring, 
citizenship, and giving.

                   TITLE V, PART D--SCHOOL COUNSELING

    This currently authorized program provides local 
educational agencies with funding for counseling and 
educational needs of all students. Authorized activities 
include expanding counseling services through qualified 
counselors, providing innovative approaches to increase 
children's understanding of peer and family relationships, 
including in service teacher and counselor training and 
parental involvement, and ensuring team approaches to school 
counseling.

                  TITLE V, PART E--MENTORING PROGRAMS

    This new program provides assistance to promote mentoring 
programs for children with greatest need. The program is 
designed to assist such children in receiving support and 
guidance from a caring adult, to improve their academic 
performance and interpersonal relationships among their peers, 
teachers, other adults, and family members, to reduce dropout 
rates, and to reduce juvenile delinquency. Eligible entities 
include local educational agencies, community based 
organizations and partnership between the two.

                          Title VI--Impact Aid

    Title VI of H.R. 1 makes technical changes to the Impact 
Aid program that was reauthorized during the 106th Congress. 
The Impact Aid Reauthorization Act of 2000 was enacted as part 
of the Floyd D. Spence National Defense Authorization Act for 
fiscal year 2001. Title VI modifies the new ``hold harmless'' 
formula for distributing funds under Section 8002 (payments for 
federal acquisition of real property) to ensure that school 
districts of all sizes receive a fair share of funds under this 
section; makes minor modifications to the section of the 
formula benefiting small school districts; makes technical 
corrections to the construction provisions to clarify 
Congressional intent; modifies language in Section 8009 
(equalized States) to clarify that funds provided to school 
districts based on their identification as ``heavily impacted'' 
would be exempt from State equalization; extends the filing 
deadline for a school in Colorado; and extends the 
authorization for Impact Aid through 2006.
    Title VI also makes technical corrections to the Impact Aid 
construction program to correct a misinterpretation of the 
eligibility requirements for certain grants. Specifically, it 
clarifies that an LEA is considered to be unable to fund 
construction needs through bond issues if the assessed value of 
the taxable property within the LEA is less than $25 million; 
clarifies that an LEA is considered to have minimal capacity to 
fund construction needs through bond issues if the assessed 
value of the taxable property within the LEA is greater than 
$25 million but less than $50 million, and the LEA has already 
used at least 75 percent of its existing bonding authority for 
other construction needs; separates the application process for 
emergency grants from that of modernization grants; and 
clarifies that the Secretary is to fund projects that address 
threats to the health and safety of students or school staff 
prior to funding grants intended only for school modernization.

                   TITLE VII, PART A--ACCOUNTABILITY

    Part A of Title VII provides rewards for States that make 
significant progress in academic achievement for students as a 
whole, for students from low-income families, and for students 
from major racial and ethnic groups based on the State academic 
assessments under Title I and a second indicator consisting of 
the State National Assessment of Educational Progress (NAEP) or 
another assessment selected by the State; sanctions States that 
fail to make adequate yearly progress for their disadvantaged 
students by reducing their administrative funds; provides 
StatesWith funds to develop annual assessments, or if a State 
has developed those assessments and standards, to carry out other 
activities related to ensuring accountability for results in the 
State's schools and local educational agencies; and provides bonuses 
for States that have annual assessments for grades 3 through 8 in place 
prior to the 2004-2005 school year.

TITLE VII, PART B--FUNDING FLEXIBILITY FOR STATE AND LOCAL EDUCATIONAL 
                                AGENCIES

    Part B of Title VII of H.R. 1 authorizes States and local 
educational agencies to transfer their non-Title I formula 
grant allocations to other federal ESEA formula grant programs. 
Specifically, it allows States to transfer up to 50 percent of 
their State activity allocations between programs. Local 
educational agencies may transfer up to 50 percent of a 
program's allocation to other programs. LEAs identified for 
improvement under Title I can only transfer funds for school 
improvement activities, up to 30 percent. LEAs in corrective 
action cannot transfer any funds.

                     Title VIII--General Provisions

    Title VIII of H.R. 1 includes general provisions that 
affect all Elementary and Secondary Education Act (ESEA) 
programs. The bill adds several new definitions, moves some 
definitions from within individual programs into the general 
provisions and modifies other definitions. Title VIII provides 
flexibility to combine administrative funds of all ESEA 
programs, and allows States and school districts to submit 
single consolidated plans for all ESEA programs. The authority 
of the Secretary to waive burdensome regulations is continued 
from current law.
    With respect to private school students and staff, 
authority in current law for such students and staff to receive 
services under ESEA programs is strengthened. At the same time, 
H.R. 1 prohibits the federal government from exercising any 
control over home schools or private schools that do not 
receive ESEA funds.
    Many of the prohibitions placed upon the federal government 
are continued and strengthened. The Committee has continued and 
strengthened the prohibition which restricts the federal 
government from controlling, mandating or directing curriculum. 
National, tests are prohibited, as well as any kind of 
mandatory national teacher or paraprofessional test or 
certification. In addition, H.R. 1 ensures that individual 
assessment results are protected from disclosure to third 
parties pursuant to the General Education Provisions Act and 
ensures that no State is required to have academic content 
standards or achievement standards approved by the federal 
government. Protections against the establishment of any 
national database of personally identifiable information are a 
part of the bill.
    With respect to social issues, H.R. 1 prohibits funds from 
being used to operate a program of contraceptive distribution 
at schools and prohibits funding of sex education in schools 
unless such programs are age appropriate and emphasize 
abstinence.
    Two Sense of the Congress provisions are included in the 
bill--one relating to religious memorials on campus and the 
other relating to paperwork reduction.
    Other provisions authorize the Secretary to reserve funds 
to carry out program evaluations.
    A new provision relating to voluntary school prayer is 
included in the bill.
    Finally, language is included in the general provisions 
which transfers the authority under the existing Title XIII of 
ESEA relating to comprehensive regional assistance centers, the 
national diffusion network, regional math and science 
consortia, and technology based technical assistance to Title 
VIII of the ESEA; and transfers the authority of the Regional 
Technical Support Centers under the existing Subpart 3 of Part 
A of Title III to Title VIII of ESEA.

               TITLE IX, PART A--AMENDMENTS TO OTHER ACTS

Subpart 1--National Education Statistics Act

    Subpart 1 of Part A of Title IX amends the National 
Education Statistics Act to make changes to the National 
Assessment of Educational Progress (NAEP) to clarify that for 
purposes of Title VII accountability there is no cost-sharing 
requirement of the States. Subpart 1 also authorizes annual 
State NAEP assessments in reading and mathematics in the fourth 
and eighth grades.

Subpart 2--Homeless Education

    The McKinney-Vento Homeless Assistance Act authorizes 
formula grants to States, based on State allocations for grants 
to local educational agencies under Title I, Part A of the 
Elementary and Secondary Education Act. Grants must be used for 
State and local programs to provide equal access to a free, 
public education for homeless children and youth, including a 
public preschool education, equivalent to that provided to 
other children and youth. Grants must also be used to establish 
an Office of Coordinator of Education of Homeless Children and 
Youth within each State educational agency; to implement 
professional development activities for school personnel; and 
to provide each child or youth the opportunity to meet the same 
State student academic standards that others are expected to 
meet. H.R. 1 makes several changes to current law to better 
meet the educational needs of homeless children and youth. 
Among other things, H.R. 1 requires schools to immediately 
enroll homeless children and youth, thereby eliminating delays 
caused by lack of records and other enrollment requirements; 
ensures that public notice of the educational rights of 
homeless children and youth are disseminated in school 
districts; ensures that schools keep children in their school 
of origin whenever possible and appropriate; prohibits a State 
receiving funds from segregating a homeless child, either in a 
separate school or in a separate program within a school, based 
on that student's status as homeless (this provision contains a 
grandfather clause that ensures established schools do not lose 
funding); provides States with greater flexibility to use 
McKinney-Vento funds for Statewide support and technical 
assistance activities; and increases the amount of McKinney-
Vento funding available to small States.

                       TITLE IX, PART B--REPEALS

    Part B of Title IX of H.R. 1 repeals several ESEA programs 
including the National Education Goals Panel, the Fund for the 
Improvement of Education, the Urban Education program, the 
Physical Education for Progress program, the Coordinated 
Services program, and the Education Infrastructure program.

                            Committee Views

                         INTRODUCTION TO H.R. 1

Transforming the Federal Role in Education So That No Child is Left 
        Behind

    As America enters the 21st Century full of hope and 
promise, too many of our neediest students are being left 
behind.
    Although education is primarily a State and local 
responsibility, the federal government is partly at fault for 
tolerating these abysmal results. The federal government 
currently does not do enough to reward success and sanction 
failure in our education system.
    Since 1965, when the federal government embarked on its 
first major elementary-secondary education initiative, federal 
policy has strongly influenced America's schools. Over the 
years Congress has created scores of programs under the 
Elementary and Secondary Education Act of 1965 that intended to 
address problems in education without asking whether or not the 
programs produce results, or knowing their impact on local 
needs. Yet, after spending billions of dollars on education, we 
have fallen short in meeting our goals for educational 
excellence. The academic achievement gap between rich and poor, 
minorities and non-minorities, is not only wide, but in some 
cases is growing wider still.
    In reaction to these disappointing results, some have 
decided that there should be no federal involvement in 
education. Others suggest we merely add new programs into the 
old system. Surely, there must be another way--a way that 
points to a more effective federal role. The policies in H.R. 1 
are based on the fundamental notion that an enterprise works 
best when responsibility is placed closest to the most 
important activity of the enterprise, when those responsible 
are given greatest latitude and support, and when those 
responsible are held accountable for producing results. H.R. 1 
will accomplish this by granting unprecedented new flexibility 
to local school districts, demanding results in public 
education through strict accountability measures, empowering 
parents, and providing a safety valve for children trapped in 
failing schools. Specifically, it does the following:

Enhances accountability and demands results

    H.R. 1 includes President Bush's rigorous plan for holding 
State and local school districts that use federal funds 
accountable for improving student academic achievement.
    H.R. 1 requires States and local schools to demonstrate 
results through annual reading and math assessments for 
students in grades three through eight. The plan authorizes 
$400 million to help States design the tests.

Grants unprecedented local flexibility

    H.R. 1 dramatically enhances flexibility for local school 
districts, giving them the freedom to transfer up to 50 percent 
of the federal education dollars they receive among an 
assortment of ESEA programs as long as they demonstrate 
results. Local school districts do not have to receive 
permission from the State or the Education Secretary to 
transfer funds.
    This unprecedented new flexibility gives local school 
districts the freedom to target resources where they're needed 
most--from class size reduction, to higher teacher salaries, to 
technology in the classroom--and address needs that often 
change from one year to the next, since these transfers are not 
permanent and must be made on an annual basis.

Consolidates duplicative programs

    The bill gives States and local schools additional 
flexibility to improve student performance by consolidating a 
host of duplicative programs to ensure that State and local 
officials can meet the unique needs of students.
    H.R. 1 eliminates or consolidates 34 federal Elementary and 
Secondary Education Act (ESEA) programs out of a total of 66, 
streamlining over 50 percent of the federal K-12 education 
bureaucracy.

Empowers parents

    H.R. 1 requires States and school districts to prepare 
annual report cards on their schools to better inform parents 
about the quality of their child's school.
    Moreover, it allows parents to remove their child from a 
low-performing school and send them to a different public 
school immediately after their school has been identified as 
failing.

Creates a safety valve for children in failing schools

    Before giving parents the option of sending their children 
to another school, H.R. 1 gives low-performing schools the 
chance to improve by offering them financial and other 
technical assistance to improve and increase student academic 
achievement.
    If a school does not make adequate yearly progress after 
one year, the district must implement certain actions to 
improve the school, such as replacing certain staff, as well as 
offer public school choice to all students in the failing 
school.
    H.R. 1 allows parents to use Title I funds to provide 
supplementary educational services--including tutoring, after 
school services, and summer school programs--for their 
children.
    Parents will choose from a list of providers that meet 
certain criteria, including private faith-based providers.

Prohibits national testing

    H.R. 1 explicitly prohibits federally sponsored national 
testing, federally controlled curriculum, as well as any 
mandatory national teacher test or certification.

Authorizes the President's Reading First initiative

    H.R. 1 focuses on effective, proven methods of reading 
instruction and triples federal literacy funding from the 
present $300 million to $900 million in 2002.
    The President proposes to spend $5 billion over the next 
five years on reading programs for K-3 children.

Improves teacher quality

    H.R. 1 will not fund a separate program that can only be 
used by school districts for class size reduction. Instead, 
school districts will have the flexibility to use funds to 
reduce class sizes by recruiting, hiring, and training 
teachers, or on professional development.

Makes schools safer

    H.R. 1 authorizes the Safe and Drug-Free Schools program, 
the 21st Century Community Learning Centers Act, and the Gun 
Free Schools Act--which helps States and local school districts 
fund drug and violence prevention programs and before- and 
after-school activities.
    As part of the broad effort to make schools safer, H.R. 1 
allows teachers to remove violent and persistently disruptive 
students from the classroom without fear of legal 
repercussions.

Improves math and science education

    H.R. 1 establishes the Math and Science Partnership program 
to provide grant funds for States to work in conjunction with 
institutions of higher education in strengthening K-12 math and 
science education.
    Partnerships will focus on strengthening math and science 
instruction in elementary and secondary schools, and may 
include such activities as making math and science curricula 
more rigorous, improving professional development, and 
attracting math and science majors to teaching.

Protects home schools

    Home schools are freed from federal regulations not only in 
the Elementary and Secondary Education Act (H.R. 1), but also 
all programs administered through the U.S. Department of 
Education.
    The bill exempts all home schools and those private schools 
that do not use federal funds from all testing requirements 
referenced in H.R. 1.

                     TITLE I, PART A--BASIC PROGRAM

Historical Perspective

    Title I, the largest federal Elementary and Secondary 
Education Act (ESEA) program, provides supplemental educational 
services to children who are achieving below grade level. From 
the time it was first enacted in 1965 until the present, 
taxpayers have provided more than $120 billion in funding, with 
the initial investment in 1965 of $960 million having risen to 
$8.6 billion in 2001.
    The reach of Title I is broad. Title I provides services to 
more than 12.5 million students enrolled in 45,000 schools and 
13,000 school districts. Fifty-seven percent of all schools 
receive Title I funds. Ninety-six percent of the highest 
poverty schools (schools with more than 75 percent of students 
in poverty) receive Title I funds, an improvement from 79 
percent in 1993-94. Funding for low-poverty schools declined 
from 49 to 36 percent over the same period. Title I grants or 
services are provided to almost all school districts in the 
country--approximately 90 percent.
    Over its 34-year history, Title I has been confronted with 
questions about its effectiveness in raising the academic 
achievement of the students it serves. During its first 30 
years (1965-1995), Title I largely functioned as an isolated 
program with separate services, lower expectations, and 
different testing requirements. Federal dollars were tied to 
eligible students, so that federal funds provided supplementary 
aid only to eligible students rather than general aid to all 
students. Participants in Title I programs were selected by 
their test scores and usually remedied through ``pull out'' 
programs that typically provided an additional 30 minutes per 
day in basic skills. Funds were provided based on the number of 
low scoring students, which created a disincentive to improve 
scores, for when they did improve, Title I funds were 
reallocated to other students and schools with lower scores.
    The 1993 interim report of the National Assessment of Title 
I found that it did not provide the services necessary to help 
at-risk students in high-poverty schools to close their 
academic achievement gaps with students in low-poverty schools. 
Studies of Title I also found that expectations were lower for 
students in high-poverty schools, and that attending high-
poverty schools had a negative effect on student achievement. 
The final report, released in 1997, confirmed the generally 
negative findings from the interim report:

          In the period covered by this study, children in 
        high-poverty schools began school academically behind 
        their peers in low-poverty schools, and were unable to 
        close this gap in achievement as they progressed 
        through school. When assessed against high 
academicstandards, most students failed to exhibit the skill and 
mastery in reading and mathematics expected for their respective grade 
levels. Students in high-poverty schools were, by far, the least able 
to demonstrate the expected levels of academic proficiency. 
(``Prospects: The Congressionally Mandated Study Educational Growth and 
Opportunity,'' Puma et al. 1997, p. iv)

    The ESEA reauthorization in 1994 made significant changes 
to Title I based on the findings in the 1993 interim report of 
the National Assessment of Title I. The Improving America's 
Schools Act (IASA) of 1994 reshaped Title I based on a new 
approach of standards-driven reform, and an emphasis on 
schoolwide reform instead of pull-out programs. Under the new 
Title I law, States were required to develop challenging 
content and performance standards for all students that would 
be linked to an aligned assessment and accountability system. 
Students in schools receiving Title I funds would be held to 
the same standards as students in other schools, eliminating 
dual accountability systems. In addition to setting high 
standards, Title I funds were focused on teaching and learning, 
through upgrading curriculum, accelerating instruction, and 
providing teachers with professional development to teach to 
high academic standards.
    The latest report of the Congressionally mandated National 
Assessment of Title I (NATI), released in January 2001, came to 
mixed conclusions on the progress of student achievement in 
high-poverty schools. Because the changes in 1994 allowed for 
more flexible uses of Title I dollars and schoolwide reform, it 
is challenging to measure the impact of the Title I program on 
student achievement since it is difficult to disentangle its 
effect from the impact of State and local reform efforts that 
the program is designed to support. Using trends in State 
assessment data and the National Assessment of Educational 
Progress (NAEP), the report was able to show some progress and 
some stagnation. On State assessments, it found that three-year 
trends reported by nine States demonstrated progress in the 
percentage of students in the highest poverty schools meeting 
the State standards for proficiency in reading and mathematics. 
State assessments also demonstrated some progress in narrowing 
the achievement gap between high and low poverty schools.
    NAEP data, however, paint a different picture of student 
achievement since the 1994 amendments. NATI reports ``In 
contrast to the recent State assessment data, longer-term 
trends in NAEP scores depict a widening achievement gap between 
high and low poverty schools from the late 1980s to 1999.'' The 
achievement gap is ``substantial, equal to several grade 
levels.'' Furthermore, it found that ``among the lowest-
achieving students, NAEP reading performance as measured by the 
main NAEP shows no significant change during the 1990s.''
    It is difficult to link any of this achievement data to the 
changes made to Title I in 1994. The 1999 NATI study pointed 
out that ``full implementation [of the 1994 reforms] in 
classrooms across the country has yet to be accomplished.'' 
Dissemination of information about the 1994 reforms did not 
reach all schools and school districts. For example, the report 
Status of Education Reform in Public Elementary Schools: 
Principals' Perspectives, indicated that most principals in 
Title I eligible schools were unaware of the standards-based 
reforms required by the 1994 legislation, and so it is even 
more difficult to attribute the increase in scores to the 1994 
changes in Title I. Though these reports only represent a 
sample of the studies that have been conducted since 1965, they 
are reflective of continuing concerns.
    At the beginning of the 21st century, 36 years after the 
enactment of Title I, the effectiveness of Title I in improving 
the academic achievement of students below grade level remains 
unclear. In order to ensure that another decade does not go by 
with widening achievement gaps, H.R. 1, the No Child Left 
Behind Act of 2001, makes significant improvements to current 
law. It places a priority on academic accountability and 
granting flexibility to schools and teachers to make decisions 
as to how to best meet the needs of disadvantaged students. 
Final, aligned assessments required by the 1994 reauthorization 
must be in place, or a State is subject to administrative 
sanctions; States must annually assess children in reading and 
math in grades 3 through 8; all groups of students 
(economically disadvantaged, minority, limited English 
proficient, and others), not just students in the aggregate, 
are to show improvement; in order to empower parents with 
information, States, school districts and schools will issue 
report cards on the academic achievement of their students with 
results broken-down so communities can better see where 
achievement gaps remain or widen; public school choice will be 
offered to parents of students enrolled in low performing Title 
I schools; additional help and expertise will be made available 
to failing schools to help them turn themselves around; 
economically disadvantaged students in persistently failing 
schools will have the option of receiving supplemental 
educational services from a provider of their choice; and 
schools that continue to fail will be subject to corrective 
actions, and eventually significant measures such as 
reconstitution.

Achieving Excellence Through High Academic Standards and Accountability

    The structure of H.R. 1, the No Child Left Behind Act of 
2001, builds upon the standards-based approach to Title I that 
was adopted in the 1994 amendments (Improving America's Schools 
Act, P.L. 103-382) to Title I. The 1994 changes to the Title I 
statute required States to develop State content and 
performance standards by the 1997-98 school year and State 
assessments aligned to those standards by the 2000-2001 school 
year. States are now expected to have established challenging 
content and performance standards, implemented assessments that 
measure student performance against these standards, hold 
schools and school systems accountable for the achievement of 
all students, and align their Title I programs with these 
policies. A single accountability system should be in place in 
each State that applies equally to all students so that all 
students are held to the same high academic standards.
    States are complying with the current ESEA requirements to 
varying degrees. The reasons for the uneven response, according 
to the U.S. Department of Education, range from States not 
being able to easily conform their own policies to federal 
requirements, to a lack of funding and coordination at the 
State level, to miscommunication between State and federal 
officers. As of January 2001, 49 States, as well as Washington, 
D.C. and Puerto Rico, had met the requirement for developing 
core content standards in reading and math. Only 28 States had 
approved performance standards, which are closely related to 
the development of final State assessments. The U.S. Department 
of Education is currently reviewing States' final assessment 
systems, using a peer review process involving experts in 
standards, assessments and Title I. The peer review process 
does not directly examine a State's assessment instruments. 
Some systems have been granted full approval, while others 
still require improvement. Those States that have made 
significant progress but will be unable to finalize their 
systems by the 2000-01 test administration deadline have been 
granted ``timeline waivers.'' States that are 
significantlybehind and lack a clear plan for meeting the requirement 
may be required to enter into compliance agreements with the Department 
that outline how the State will make the changes necessary to comply 
with the law.
    Throughout H.R. 1, the Committee changed references in 
current law to ``content standards'' and ``performance 
standards'' to ``academic content standards'' and ``academic 
achievement standards,'' respectively. The Committee's intent 
is only to clarify the terms that are used to describe these 
standards, not to in any way require States to change what they 
have developed to meet the requirements for these standards 
under the 1994 amendments.
    It is the Committee's view that the intent of this Act is 
that States adopt standards and assessments that measure 
academic knowledge of math and reading, as opposed to applied 
and contextual learning that focus on student workplace skills 
and competencies. To the extent such research is available, 
classroom instruction should be based on rigorous, 
scientifically based research. The bill does not authorize the 
Secretary to define the term ``academic'' for the States. 
States may define the term ``academic'' as they see fit, or not 
at all.

Annual Academic Assessments in Reading and Math for Grades 3-8

    In accordance with the President's ``No Child Left Behind'' 
proposal, Section 1111 requires States to build on their 
academic standards and assessments and annually assess students 
in grades three through eight in reading and math. Only 
standards, not assessments, are required to be developed for 
science. The purpose of these annual, academic assessments is 
to empower parents with information about the achievement of 
their children, as well as to hold schools, districts and 
States accountable for improving academic achievement. Without 
assessments, no one can be held accountable for improving 
student achievement. With annual assessments in reading and 
math in grades three through eight, there will be more 
information available to more accurately determine whether a 
school is providing all of its students with a quality 
education.
    The Committee heard from several witnesses about the 
importance of measuring student achievement annually. According 
to Arizona Superintendent of Education Lisa Graham Keegan, who 
testified at the March 14, 2001 hearing on ``Empowering 
Success: Flexibility and School Choice'':

          [T]he Congress is rightly very concerned about 
        whether flexibility will lead to academic gain, or to 
        academic stagnation with no strings attached. There 
        needs to be an accountability system in place that 
        measures student progress from year to year, and shows 
        whether or not each student is progressing adequately 
        toward well defined academic standards. Ideally, our 
        assessments should also let us know how we're doing as 
        States in relation to one another, and how we as a 
        nation stack up against other countries.

    If a State only assesses in a few grades, it is more 
difficult to diagnose strengths and weaknesses, and to address 
problems in a particular classroom or grade level within a 
school. With annual tests, problems can be found before it is 
too late to fix them and can ensure that resources are directed 
as effectively as possible.
    Mr. Edward Rust, Co-Chairman of the Business Coalition for 
Excellence in Education, testified before the Education Reform 
Subcommittee on March 8, 2001, that ``we know it from a 
business standpoint that you have got to measure progress or 
you will never know whether or nor you are getting close to 
your goal.'' He also testified that,

          [T]he Committee for Economic Development's recent 
        report, entitled Measuring ``at Matters: Using 
        Assessment and Accountability to Improve Student 
        Learning, points out that tests are a means, not an 
        end, in school reform. Assessment and accountability 
        systems must be a part of the educational plan that 
        provides the data and information necessary to make 
        informed decisions about student progress. Continuous 
        review of assessment systems must be part of school 
        improvement plans. As the report notes, although there 
        are valid concerns about some testing practices, we 
        cannot wait for the ``perfect'' test. Instead, we must 
        continue to evaluate and improve the existing 
        assessment systems because they provide the best means 
        for charting our progress in improving student 
        achievement. The debate over testing should not be 
        about whether to rely on tests, but how best to improve 
        and use them to enhance educational outcomes.''

    Section 1111(b)(4)(G) requires States to develop annual 
assessments in grades three through eight in reading and math 
by the 2004-2005 school year. It is the Committee's view that 
States would continue to administer assessments developed under 
Section 1111 prior to the enactment of H.R. 1. In addition to 
implementing annual assessments in reading and math in grades 
three through eight, States would continue to administer 
reading and math assessments at least once during grades 10-12, 
as required under current law. The Committee recognizes that 
the requirement to have assessments in place by 2004-2005 will 
present numerous challenges to many States, especially those 
that have not yet met the 1994 assessments requirements. 
Therefore, the Committee encourages States to seek technical 
assistance from the U.S. Department of Education, if needed, as 
soon as possible to ensure that they meet this deadline. 
Section 1111 (b)(10) requires the Secretary to provide this 
assistance.
    States that fail to meet this deadline will be subject to 
having a portion of their administrative funds withheld under 
Section 1111(g). If they do meet the deadline, they may receive 
a financial bonus in accordance with Section 7103.
    Section 1111(b)(4)(F) also requires that State assessments 
use multiple measures to ensure students are performing 
academically. H.R. 1 clearly recognizes that States are 
responsible for designing their assessments. As Mr. Rust noted 
earlier, ``perfect'' tests do not yet exist, and high-stakes 
decisions should not rest solely on one well designed, but 
potentially fallible, assessment.

Timely and Useful Assessment Data

    It is the Committee's view that in order-for annual 
assessment data to be an effective accountability tool, school 
districts and schools should receive assessments results as 
soon as possible, but no later than the end of the school year. 
Such assessment data should be provided in a format that is 
easily accessible. State educational agencies should use 
assessment data to assist local educational agencies in 
improving the quality of instruction and identifying areas that 
needimprovement or additional resources to improve student 
academic achievement. Such assessment data should also be used to 
improve the instruction and achievement of individual children.

Testing of Students in the English language

    Recognizing the many benefits of prompt acquisition of 
English language skills, the Committee has included language in 
the bill regarding testing of students in the English language. 
Section 1111 (b)(4)(H)(iv) would require that all students who 
have attended schools in the United States for at least three 
consecutive years be tested in reading and language arts in the 
English language. Attaining both English proficiency, 
particularly for reading and language arts tests, and academic 
proficiency is especially important for the success of limited 
English proficient students in the early years. However, 
recognizing that there may be some situations where limited 
English proficient students may have difficulty mastering the 
language because of a lack of formal instruction in their 
native language prior to entering the United States, the local 
educational agency may extend the three-year time frame 
mentioned above for one additional year on an individual, case-
by-case basis.
    Section 1111 (b)(7) requires local educational agencies to 
annually assess the English proficiency of all LEP students, 
beginning no later than the 2002-2003 school year.
    The Committee strongly believes that in order to ensure 
that schools and school districts are held accountable for 
improving academic achievement and English language proficiency 
of limited English proficient and immigrant children, they 
should be tested each year in the same manner as their English 
speaking peers. Schools are held accountable for specifically 
improving the academic achievement of LEP students. States will 
include English language proficiency in their definition of 
adequate yearly progress, solely for the purpose of rewards and 
sanctions. States that fail to improve English language 
proficiency will be subject to losing twenty percent of their 
total administrative allocation under ESEA programs.

Adequate Yearly Progress for All Students

    The adequate yearly progress provision in Title I of H.R. 1 
is central to achieving the President's goal of leaving no 
child behind. H.R. 1 ensures that States hold school districts 
accountable for ensuring that schools make real progress each 
year, and do not have low standards for high-poverty schools. 
In order for all children to succeed, all schools, including 
high-poverty schools, are expected to be high quality schools. 
In order to identify low performing schools, there needs to be 
a standard definition within the State of what a low performing 
school is, based on State academic assessments in reading and 
math and other measures a State may choose to include. Neither 
current law, nor H.R. 1 specifically defines this for States. 
It only describes what minimum variables the definition should 
include, and that the State should expect its students as a 
whole to make adequate gains each year.
    As mentioned earlier in this report, under Title I law, 
States develop academic content and achievement standards and 
align their assessments to those standards. Under current law, 
for purposes of determining the academic progress of Title I 
students and schools, States develop a definition of ``adequate 
yearly progess'' that: (1) is consistent with guidelines 
established by the Secretary; (2) results in continuous and 
substantial yearly improvement of each local educational agency 
and school sufficient to achieve the goal of all children 
served under this part meeting the State's proficient and 
advanced levels of performance; and (3) links progress 
primarily to achievement on the State assessment, but 
permitting progress to be established in part through the use 
of other measures. Once a State develops its definition, it 
then becomes the measure for determining whether Title I school 
districts and schools are making adequate yearly progress.
    H.R. 1 changes current law, in accordance with the 
President's plan and bipartisan efforts during the 106th 
Congress, to ensure that Title I schools are identified for 
help and corrective actions if they aren't helping all 
children, particularly economically disadvantaged and minority 
students. Section 1111(b)(2)(C) of H.R. 1 strengthens and 
clarifies adequate yearly progress requirements to ensure that 
no child is left behind. Under current law, a school can be 
deemed as making progress regardless of whether its 
disadvantaged and ethnic minority students are improving. H.R. 
1 specifically requires States to include as part of their 
definition of adequate yearly progress the achievement of all 
students, as well as economically disadvantaged students, 
students from major racial and ethnic minority groups, students 
with disabilities, and limited English proficient students. 
Annual achievement objectives are required to be set for these 
students in order to ensure continuous and substantial yearly 
progress. Achievement goals are not required to be set for 
groups where there are an insufficient number of students to 
yield statistically significant results or would reveal the 
identity of individual students.
    A State's definition of adequate yearly progress is used to 
measure progress at the State, district and school level. In 
order to hold States accountable for ensuring its limited 
English proficient students are improving their English 
language proficiency, States are to include a measure of 
English language proficiency. This indicator is solely for the 
purpose of State accountability, described in Part A of Title 
VII, not for measuring the progress of school districts and 
schools. School districts are required to annually test limited 
English proficient students, but such tests do not need to be 
the same Statewide.
    According to the first annual School Improvement Report 
released by the U.S. Department of Education in January 2001, 
an important factor distinguishing how States define adequate 
yearly progress is ``understanding whether States require 
schools to reach a threshold about which they will not be 
identified for improvement, or whether all schools are required 
to make progress every year.'' Twelve States use absolute 
targets, rather than levels of actual progress as the only 
measure of making adequate yearly progress. The remaining 37 
States incorporate some measure of continuous progress in their 
definitions. H.R. 1 continues the flexibility States have to 
set definitions with absolute or continuous improvement 
targets. It only specifies the timeline that States should 
include in their definition (12 years) in order to ensure that 
States expect schools to make substantial and continuous 
progress.
    Under H.R. 1 as introduced, States had to include a 
timeline in their definition of progress such that gains each 
year would be sufficient to bring all students up to the 
State's definition of proficient'' in ten years. The Chairman's 
mark changes this timeline to 12 years. States differ in the 
percentage of students that schools are expected to bring up to 
the basic or proficient level. According to the Education 
Commission of the States, 14 States specify that 90-100 percent 
of students are expected to reach proficiency. States also set 
different timelines for meeting theirperformance goals, ranging 
from six to 20 years. According to the U.S. Department of Education, 
the modal target is ten years. H.R. 1 strikes a balance by requiring 
States to include in their definition a timeline that is longer than 
the target States most frequently set.
    H.R. 1 further strengthens accountability by requiring 
States to not only show progress for all students and to get 
all students to proficient within 12 years, but to also be 
closing achievement gaps at the same time. Recent NAEP results 
in reading showed that while performance improved for non-
disadvantaged students, scores dropped for disadvantaged 
students, thus widening the achievement gap. Title I funds are 
intended to improve academic achievement for the neediest 
students and should, at a minimum, be used to close achievement 
gaps, while still promoting gains for higher-achieving 
students.
    While a State's definition of adequate yearly progress 
applies to all public schools in the State, only Title I 
schools are identified for improvement, corrective action or 
restructuring, as required by Section 1116, for failing to make 
adequate yearly progress.
    It is the Committee's view that States such as Tennessee, 
which administers what is known as the Tennessee Value Added 
Assessment System (TVAAS) and measures school progress by 
comparing students achievement to their past performance, would 
not be precluded by the Title I adequate yearly progress 
requirements and assessment requirements. In fact, the 
Tennessee system is one that more accurately measures the 
effects of schools and school systems on the average progress 
of students for which they are responsible. The Committee 
encourages States to move towards adopting similar assessments 
for holding schools and school districts accountable, as well 
for assessing the performance of teachers.
    Mr. Scott (D-VA) offered an amendment in Committee, which 
passed by a vote of 26-22, to include as part of the definition 
of adequate yearly progress a measure of drop-out rates, as 
defined by the National Center for Educational Statistics.

Empowering Parents with Annual State Academic Reports and School Report 
        Cards

    In accordance with the President's proposal, Section 
1111(h) of the No Child Left Behind Act of 2001 expands upon 
current provisions of the Elementary and Secondary Education 
Act, which require schools to collect and report to the public 
information on the academic quality of Title I schools, in 
order to empower parents with information about their schools. 
Reporting this information is crucial to empowering parents to 
hold schools accountable and getting them involved, and helping 
fix schools that fail and choose another public school if their 
child's school fails. Under section 1111 of current law, States 
must develop State student assessments that will be used to 
determine the adequate yearly performance of each local 
educational agency and school. These assessments must enable 
results to be disaggregated within each State, local 
educational agency, and school by each major racial and ethnic 
group, by English proficiency status, by gender, by students 
with disabilities as compared to nondisabled students, and by 
economically disadvantaged students as compared to students who 
are not economically disadvantaged.
    In recent years, many States have sought to provide more 
information to parents and other taxpayers on the quality of 
individual schools as a means to hold them accountable. 
According to the Education Commission of the States, 40 States 
require school districts and/or schools to report academic 
achievement results to the public. However, many of these 
reports fail to provide parents with adequate information. A 
recent study called, ``Individual School Report Cards: 
Empowering Parents and Communities to Hold Schools 
Accountable,'' found that most States fail to provide parents 
with essential information about their children's education. A 
survey by Education Week found that 91 percent of taxpayers 
believed that ``widely publicized ratings on such things as 
test scores and graduation rates motivate public school 
teachers to work harder to improve schools' performance. 
``However, only 24 percent of these same taxpayers indicated 
they had ever seen a school report card.
    The No Child Left Behind Act of 2001 builds upon current 
law and the efforts of States and localities to provide parents 
and taxpayers helpful information on the quality of public 
schools. The intent of the No Child Left Behind Act of 2001 is 
to ensure that information on academic performance of Title I 
schools is made available to parents and the public at large.
    The information included in the annual State report and 
school district report cards will enable parents, taxpayers, 
and others to make informed judgments about the quality of 
education in their communities. This information will also 
empower parents to choose quality schools for their children. 
Without data on academic achievement, public school choice 
holds little promise for parents to find a better education for 
their children.

State Report Cards

    In order to hold schools accountable for improving the 
performance of all students, State assessment results would be 
reported to the public disaggregated by major subgroups of 
students. The information on the report card would be for 
public schools in the aggregate for the following categories: 
student achievement on State assessments, by subgroup; 
comparison of students at basic, proficient, and advanced 
levels of performance on State assessments; graduation rates; 
completion of Advanced Placement (AP) courses and passing AP 
tests; professional qualifications of teachers; and percentages 
of students not tested.

School District Report Cards

    School districts would prepare annual reports for parents 
and the public on the academic performance of schools in the 
aggregate in the school district and by school. The school 
district report cards would include information on: the numbers 
and percentages of schools identified within the school 
district as in ``school improvement'' (low performing) under 
Title I; in the case of an individual school, whether it has 
been identified for school improvement and how its students 
performed on the State assessment compared to the school 
district and State as a whole; comparisons of students at 
basic, proficient, and advanced levels of achievement on State 
assessments; graduation rates; completion of Advanced Placement 
courses and passing AP tests; professional qualifications of 
teachers; and percentages of students not tested.
    The Committee is aware that some States and school 
districts will need to make adjustments to be able to report 
the required information, and accordingly, language has been 
included to give States and school districts until the 
beginning of the 2003-2004 school year to first report the 
information to the public.
    In addition to annual State academic reports and school 
district reports, the No Child Left Behind Act of 2001 expands 
accountability through a new ``parents right to know'' 
provision. Under this provision, local educational agencies 
must provide parents, upon request, information on the 
professional qualifications of their child's classroom teacher. 
Such information must include whether the teacher is teaching 
under an emergency or other provisional status, and whether 
their child is being taught by a paraprofessional. Local 
educational agencies receiving Title I funds must also provide 
to parents their child's performance on each of the State 
assessments.
    These provisions come amid a growing body of research 
showing that the quality of the teacher is the number one 
factor in determining student academic success. In fact, the 
impact of being taught by an unqualified teacher has been shown 
to have a lasting negative impact on student achievement. 
Therefore, the Committee believes parents in schools funded 
under Title I should have every right to be informed when their 
child is not being taught by a fully qualified teacher.
    The Committee is aware of, and encouraged by, the 
initiative of some States to establish nonprofit education 
organizations that maintain websites of academic achievement 
data, which enable comparisons of the progress of similarly 
situated schools. For example, in Texas, the Just For Kids 
nonprofit education organization has posted student performance 
data since 1998 on a school-by-school basis. Their website 
allows parents and other members of the community to view and 
compare, on a longitudinal basis, how schools are performing 
relative to other schools with similar demographics. In 
addition, best practices at the successful schools are made 
available, through the organization, to low performing schools

Parental Rights and Notification Provisions

    Over the past few years, the Committee has heard a growing 
number of complaints from parents whose children have been 
placed and retained in bilingual education courses without 
their permission or knowledge. In many instances, these parents 
faced great resistance in their efforts to remove their 
children from such programs.
    Since the enactment of the Improving America's Schools Act, 
Title I, Part A has provided services to limited English 
proficient children. In fact, the Title I program far 
outdistances the Bilingual Education Act in the provision of 
services to limited English proficient children. For 1996-97, a 
total of 430,724 children received services under the Bilingual 
Education Act (with some children participating in several 
programs). At the same time, two million limited English 
proficient children were served under Title I, Part A. The 
Committee is concerned that many of the problems related to 
program participation that have arisen under the Title VII, 
Bilingual Education Act will emerge under Title I, Part A, as 
well.
    Because of this concern, the Committee has included 
language in Section 1112(g), as well as under Part A of Title 
III, requiring local educational agencies to obtain informed 
parental consent prior to placing a child in an English 
language instruction program for limited English proficient 
children. This restriction would not apply to classes, which 
exclusively, or almost exclusively, use the English language in 
instruction or where instruction is not tailored for limited 
English proficient children. The provision does allow LEAs to 
serve children if a response is not obtained from their parents 
after written notice and reasonable effort to obtain such 
consent is made. In such instances, a local educational agency 
must document, in writing, that it has given such written 
notice and has made specific efforts to obtain such consent. 
LEAs must then provide proof of such efforts, in writing, to 
the parents or guardian of the child at least 10 business days 
prior to the actual provision of services under this part. Such 
correspondence must include a final notice requesting parental 
consent for such services.
    Section 1112(g) also contains provisions that require the 
parent or parents of children participating in programs under 
this Act to be informed of: (1) the reasons for identification 
of their child as being in need of English language 
instruction, (2) their child's level of English proficiency and 
how it was assessed, (3) the status of their child's academic 
achievement and how the program will assist their child to 
learn English and meet age-appropriate standards for 
gradepromotion and graduation, (4) what the specific exit 
requirements are for the program, (5) the expected rate of 
transition from the program into a classroom that is not 
tailored for limited English proficient children; and (6) the 
expected rate of graduation from high school for the program 
for children in secondary schools.
    According to a November 1997, report issued by the United 
States Commission on Civil Rights, entitled ``Equal Educational 
Opportunity and Nondiscrimination for Students with Limited 
English Proficiency: Federal Enforcement of Title VI and Lau v. 
Nichols:''

          School districts across the country are experiencing 
        serious tensions between school officials and parents 
        over placement. Many parents of students with limited 
        English proficiency are expressing dissatisfaction with 
        the education their children are receiving. For 
        example, in New York City, Maria Perez, a parent who is 
        fighting her child's placement in the city's bilingual 
        education program recently stated: `what bothered me 
        was that they place children in bilingual programs and 
        keep them there for years and years. They aren't 
        learning English.' The problems that prevent academic 
        success can and should be addressed by parents working 
        together with school personnel to determine where the 
        problems exist and how they can be solved.

    The parental consent provisions in this bill make it very 
clear that parents should play a major role in determining the 
placement of their child in an English language instruction 
program. Schools should not be making decisions regarding the 
placement of English language learners unless they have reached 
an agreement on such placement with the child's parents. 
Parents want their child to learn English as quickly as 
possible because they know it is essential in order to succeed 
academically and later in the workplace. They should be able to 
prevent their child from being placed in a classroom which they 
do not believe will help them learn English and succeed in 
school. Parents should also have the ability to remove their 
child from such a classroom if they believe it is not in their 
child's best interest. The Committee agrees with the report of 
the Civil Rights Commission in stating that parents and schools 
should be working together to make the best possible decisions 
regarding the education of English language learners.
    It is the view of the Committee that parents have the 
primary responsibility for their children's education. These 
new changes ensure that the parents of limited English 
proficient children have the same rights as other parents. At 
the same time, the Committee does not view these parental 
consent provisions as a means to deny limited English 
proficient children appropriate services, especially when a 
response from the parent cannot be obtained. In such cases 
where a response has not been obtained, the Committee believes 
that limited English proficient children should receive 
appropriate services without delay.

Ranking and Priority for Grades K-6

    Under current law; once Title I funding reaches the school 
district, all schools with over 75 percent poverty must be 
served first, in rank order from highest to lowest poverty. 
This provision is intended to increase the number of high 
poverty schools that receive Title I funds, and that has been 
the effect. According to the National Assessment of Title I, 
Title I funds go to nearly all (95 percent) schools with over 
75 percent poverty and nearly 75 percent of Title I funds go to 
schools with poverty levels of 50 percent or greater. Schools 
with lower poverty rates are less likely to receive Title I 
funds. Only 36 percent of schools with 35 percent or less 
poverty receive these funds.
    Once the schools with 75 percent and greater poverty are 
served, schools below 75 percent poverty are served in rank 
order from highest to lowest poverty. A school district may not 
serve a school below 75 percent poverty until all schools above 
75 percent poverty are served. However, school districts may 
choose to serve schools below 75 percent poverty within grade 
span groupings or within the district as a whole, but 
regardless of the choice, they must serve these schools in rank 
order.
    Section 1113 of the No Child Left Behind Act would continue 
the ranking requirements under current law with the 
modification that school districts, if they wish, may give 
priority to the elementary grades before serving other schools 
or grade levels. Essentially, this permissive authority would 
allow school districts to first serve elementary schools above 
75 percent poverty, in rank order, before serving other schools 
above 75 percent poverty, and serve elementary schools below 75 
percent poverty, in rank order, before serving other schools 
below 75 percent poverty. Given the particular importance of 
the early years of a child's education, the Committee believes 
this priority will enable many school districts to more 
effectively utilize Title I funding in improving student 
academic achievement.

Schoolwide Programs

    Under current law, schools with 50 percent or more poverty 
may, if they wish, choose to serve all students in the school. 
These schools are known as ``schoolwide programs.'' Under a 
schoolwide program, funds could, for example, be used to 
provide professional development to all of a school's teachers, 
upgrade instructional technology, or implement new curricula. 
Schoolwide programs also have the added flexibility of 
combining federal, State and local education funds to serve the 
entire school, rather than having to operate many separate 
federal education programs with multiple sets of rules and 
regulations. In addition, schoolwide programs utilize a 
strategic plan. Strategic plans allow Title I services to be 
considered within the broader context of a school's reform 
goals, and provide a framework for better integration of Title 
I within the regular academic program at the school.
    In recent years, more and more schools have opted to 
utilize the schoolwide approach under Title I. According to the 
National Assessment of Title I, the number of schools 
implementing schoolwide programs has increased fourfold since 
1995 from about 5,000 to 19,227 in 1997-98. Local school 
principals, teachers and administrators enjoy having the 
schoolwide option. As of 1997-98, 82 percent of eligible 
schools were using the schoolwide option and an additional 12 
percent were considering implementing schoolwide programs. 
Forty percent of all Title I schools operated schoolwide 
programs in 1997-98.
    Principals and teachers have found the schoolwide approach 
offers increased opportunities to support comprehensive efforts 
to upgrade an entire school, and thereby more effectively help 
improve the achievement levels of the lowest achieving 
students. The February 25, 1999, testimony of Ms. Madeleine 
Manigold before the Subcommittee on Early Childhood, Youth, and 
Families, noted that Texas schoolwide programs had been 
particularly successful in improving the academic performance 
for all students and all groups of students in reading and 
mathematics. Further, her testimony indicated the achievement 
gap has been closing at schools utilizing the schoolwide 
approach at an even greater rate than in the State of Texas as 
a whole.
    The State of Maryland has also had success with schoolwide 
programs. In Garrett County, through use of the schoolwide 
approach and an Ed-Flex waiver, two elementary schools have 
shown achievement on the Comprehensive Test of Basic Skills 
(also know as TerraNova) well above national averages.
    Sections 1114 would continue to authorize the schoolwide 
approach, and expand it so that schools with 40 percent or more 
poverty could operate schoolwide programs. The Committee 
strongly endorses this increased flexibility at the local level 
and recognizes that many more schools may soon utilize this 
model for delivering Title I services than with the current 50 
percent threshold.
    It has come to the attention of the Committee that some 
schoolwide programs have not been utilizing the authority under 
current law to combine federal, State, and local education 
funds to serve the entire school, because of State and local 
fiscal accounting barriers. The consolidation of funds in order 
to use all available resources to upgrade the entire 
educational program in a high-poverty school is an integral 
component of a ``schoolwide'' program. Section 1114(b)(1) 
addresses this concern by making it clear that schools may 
``consolidate'' funds. Current law states that the funds ``may 
be used in combination'' with other funds, which is unclear. 
Section 1114(b)(3)(C) addresses barriers that may discourage 
schools from consolidating funds by clarifying that schools do 
not need to conduct separate fiscal accounting by program to 
demonstrate that the intent and purpose of the programs have 
been met. The statute does not require separate fiscal 
accounting records to demonstrate that the intent and purposes 
of all the programs that contribute funds toward the schoolwide 
program are met, but documentation is necessary. While the 
statute does not specify what type of documentation would be 
acceptable, the Committee anticipates acceptable documentation 
would include evidence that activities wereconducted which 
address the intent and purposes of the programs. Finally, Section 
1111(c)(8)-(9) also addresses schoolwide accounting barriers to 
consolidating funds by requiring States and localities to reduce any 
such barriers that schools may be experiencing.
    One of the components of a schoolwide program mentioned in 
Section 1114 are schoolwide reform strategies. Such strategies 
may include increasing the amount and quality of learning time, 
such as extending the school year, before and after school 
programs and summer programs. The Committee believes that after 
school, summer enrichment, and gifted and talented programs 
provide special opportunities for schoolwide improvement and 
are valuable education reform tools.
    With respect to pre-kindergarten services, the Committee 
wishes to note that the No Child Left Behind Act retains as a 
component part of a schoolwide program provisions for assisting 
preschool children in the transition from early childhood 
programs, such as Head Start, Even Start, or State run 
preschool programs, to elementary school programs. 
Specifically, the Committee improves upon these provisions by 
requiring local educational agencies to coordinate their 
educational services with those provided by local Head Start 
agencies, mirroring a provision added to the Head Start Act. In 
addition, local educational agency plans must describe how 
local educational agencies will coordinate and integrate 
services relating to Head Start, Even Start, and other 
preschool programs, and how Title I funds will be used to 
support preschool programs for children.

Targeted Assistance Programs

    In addition to schoolwide programs, the other major program 
model for delivery of Title I services is the targeted 
assistance program. Under a targeted program, Title I services 
are focused upon the lowest achieving students in the school. 
For example, students may be ``pulled out'' of their regular 
classroom for several hours of more intensive instruction by a 
specialist teacher each week, or funds may be used to hire a 
paraprofessional who provides additional assistance to low 
achieving pupils in their regular classroom. School districts 
and schools have substantial discretion in determining how they 
will select pupils to be served by Title I, as long as their 
methods are applied consistently to all pupils in the grades to 
be served.
    Section 1115 would essentially continue the targeted 
assistance program intact with a few minor changes. However, 
one significant change for both schoolwide programs and 
targeted assistance programs would be the scientifically based 
research requirement as mentioned below.

Academic Accountability for Title I Schools under Section 1116

            In General
    The centerpiece of President Bush's No Child Left Behind 
education reform plan is academic accountability. His 
accountability blueprint, which is included in Title I, Part A 
and Title VII, Part A of H.R. 1, holds States, local 
educational agencies (LEAs) and schools accountable for 
ensuring that all students, including disadvantaged students, 
meet high academic standards. In general, schools that fail to 
make adequate yearly progress (as defined by the State) are 
designated as low performing. The technical term for low 
performing schools under Title I is ``school improvement.'' 
Under the accountability system, schools identified for school 
improvement will first receive technical assistance and may 
receive financial assistance to help them improve. Then, if the 
schools continue to fail to make adequate yearly progress, a 
series of corrective actions and restructuring measures are 
required to be taken to help turn the school around and raise 
the academic achievement of the school.

Funds for Turning Around Low Performing Schools

    In order to assist States and school districts in their 
efforts to turn around low-performing schools, H.R. 1 has 
created a separate authorization of $500 million under Section 
1002(j) to allocate to States for school improvement in order 
to make subgrants to local educational agencies. Additionally, 
the percent of funds States may reserve for school improvement 
under Section 1003 has been increased from one percent in 2002 
and 2003, to three percent for fiscal years 2004-06. In 
awarding these funds, States are to give priority to those 
local educational agencies with the lowest achieving schools, 
have the greatest demonstrated need, and have the strongest 
commitment to helping schools meet adequate yearly progress 
requirements.

School Improvement

    Section 1116 sets forth the requirements for LEAs to review 
the academic progress of schools, to identify low performing 
schools as in need of ``school improvement,'' to provide 
technical assistance and potentially financial assistance to 
such schools, and to undertake corrective actions and 
restructuring to help improve such schools. According to the 
first annual ``School Improvement Report'' of the Department of 
Education (January 2001), the number of Title I schools States 
have identified for school improvement has grown from 7,616 in 
1996-97 to more than 8,800 in 1998-99.
    Section 1116(a) establishes the LEA as the key agency for 
reviewing the academic progress of schools. Each LEA reviews 
the test results from reading and math tests under section 
1111, as well as other measures, to determine whether each 
school in the LEA is making adequate yearly progress, as 
defined by the State. The results of this review are then 
publicized in the community and disseminated to teachers, 
staff, parents, and students. If a school is making adequate 
yearly progress, then no further action is required under this 
section. If, however, the school is not making adequate yearly 
progress, then a series of steps to improve the quality of the 
school must be taken.
    Under section 1116(b), a school that fails to make adequate 
yearly progress for one year, or that was in school improvement 
status under current law prior to the effective date of the No 
Child Left Behind Act, is designated for school improvement. 
This changes current law, which requires that school districts 
identify schools in need of improvement after two years of 
failing to make adequate yearly progress. Because of the 
President's commitment to turn around low performing schools, 
his proposal changed the timeline so that schools are 
identified after one year of failing to make progress in order 
to provide schools at risk of failure with resources as soon as 
possible to improve them as quickly as possible. The Committee 
did not change the timeline in currentlaw for identifying local 
educational agencies in need of improvement to avoid triggering an 
entire school district as needing improvement based on one year of 
data.
    Once a school is designated for school improvement, then 
the LEA is required to provide public school choice (unless 
affirmatively prohibited by State law) to all students enrolled 
in the school not later than the first day of the school year 
following identification. For example, if a school receives its 
test scores in May of 2002, then when school starts again in 
August 2002, public school choice would be available. Providing 
choice at this early stage in the process will enable parents 
to quickly take steps to improve the quality of their child's 
education. LEAs are also required to provide transportation 
costs, to ensure that choice options are truly available to 
children in the school that is identified for improvement.
    Prior to a school's identification for school improvement 
in section 1116 (b), the LEA is required to give the school an 
opportunity to review the data on which the proposed 
identification is based. Then, if the principal or a majority 
of the parents of students at the school believe the 
identification is in error, the principal may provide 
supporting evidence to the LEA, which shall be considered a 
final determination is made.
    In keeping with current law, the Committee has continued 
and strengthened requirements that schools identified for 
school improvement develop an action plan not later than three 
months after they are identified for improvement. The school's 
action plan, developed in consultation with parents, school 
staff, and the LEA, is to cover a two year period and include 
the following: (1) scientifically based research strategies to 
strengthen the core academic subjects; (2) policies that will 
be undertaken to ensure that all groups of students will meet 
the State's proficient level of achievement in 12 years; (3) 
assurances that the school will reserve at least 10% of Title I 
funds to provide high quality professional development that 
directly addresses the academic problems that resulted in the 
school improvement designation; (4) a specification of how 
school improvement funds will be used to remove the school from 
school improvement status; (5) specific annual goals for 
progress by each subgroup of students; (6) information on how 
the school will provide notification to parents about the 
school's identification for improvement; (7) the respective 
responsibilities of the school, the LEA and the SEA under the 
plan, including the technical assistance that will be provided; 
and (8) as appropriate, extended learning time.
    For each school identified for school improvement, the LEA 
has primary responsibility for providing technical assistance 
as the school develops the school plan and throughout the 
duration of the plan. In general, the technical assistance 
shall: (1) be based on scientifically based research; (2) 
include assistance in analyzing academic assessment data; (3) 
provide professional development and instructional strategies 
that are directed at lifting the school out of school 
improvement; and (4) include assistance in analyzing and 
revising the school's budget to focus on activities that will 
help lift the school out of school improvement. While the LEA 
has primary responsibility for technical assistance, the 
assistance may also be provided by the SEA, institutions of 
higher education, and other public or private entities.
    Recognizing that parents play a vital role in the success 
of schools, the Committee has taken significant steps to 
empower parents in the school improvement process. Section 
1116(b) requires LEAs to provide parents of students in schools 
identified for school improvement with an explanation of what 
school improvement means, how the school compares to other 
schools in the district, the reasons for the school improvement 
designation, an explanation of what is being done by the 
school, how the LEA and the SEA will address low academic 
achievement, an explanation of how parents can help the school 
improve, and an explanation of a parent's right to transfer 
their child to another public school, including a public 
charter school.

Corrective action

    Corrective action is reserved for those schools that have 
been identified for school improvement and which have still 
failed to make adequate yearly progress after receiving 
technical assistance for a year. Unlike current law, where 
``corrective action'' describes the most drastic actions an LEA 
can take to turn around a low performing school, in H.R. 1, 
corrective action is the second of three levels of options an 
LEA must take to improve the failing Title I school. Public 
school choice would continue to be required to be offered 
pursuant to the school improvement requirement outlined above. 
Under corrective action, the LEA is required to provide 
transportation to the students to enable them to attend a 
better public school, and the LEA may use up to 15 percent of 
its Title I allocation to offset these costs. If all public 
schools to which a student may transfer are designated for 
school improvement, then the LEA shall, to the extent 
practicable, establish a cooperative agreement with other 
neighboring local educational agencies for students to attend 
public schools outside their own LEA. During the year that 
public school choice is offered, schools identified for school 
improvement would receive technical assistance throughout the 
school year, in an effort to improve their academic 
achievement. If, after receiving technical assistance for that 
year the school continued to fail to make adequate yearly 
progress, then at least one corrective action would be 
required. Corrective action is also required for schools that 
have been in school improvement for two years, or in corrective 
action status (under provisions of current law) as of the 
effective date of the No Child Left Behind Act.
    Corrective actions include such measures as: (1) replacing 
school staff who are relevant to the failure to make progress; 
(2) implementing a new curriculum and providing appropriate 
professional development that is based on scientifically based 
research; (3) significantly decreasing management authority at 
the school; (4) appointing outside experts to advise the 
school; (5) extending the school year or school day; or (6) 
restructuring the internal organization of the school.
    As with identification of a school for school improvement, 
the LEA is required to publish and disseminate to the public 
and to the parents of each student enrolled at the school, 
information regarding corrective actions that are being taken 
against the school. It is the Committee's desire that by 
empowering parents with information on school quality, parents 
will be in a better position to make decisions about selecting 
the best possible schools for their children or helping to turn 
around their children's schools.

Restructuring

    Restructuring is the final and strongest remedy for helping 
turn around low performing schools. This is a new third 
category of failing schools. Essentially, restructuring is 
reserved for schools that continue to fail to make adequate 
yearly progress even after multiple actions have beentaken to 
help them improve. It is triggered if economically disadvantaged 
students in a school identified for corrective action fail to make 
statistically significant progress after being in corrective action for 
one full year. The rationale for only triggering restructuring if a 
school fails to make adequate yearly progress and disadvantaged student 
scores fail to increase by a statistically significant amount is to set 
a higher threshold that schools must meet in order to be identified for 
the more severe actions required by restructuring. A school identified 
for restructuring under this criterion is a school that has failed for 
three consecutive years. There is also a second condition that triggers 
restructuring. A school that is identified for corrective action and 
then fails to make adequate yearly progress for two additional years, 
as described in 1116(b)(7)(A)(ii), will be identified for 
restructuring, even if its economically disadvantaged students are 
making statistically significant progress. The rationale for this 
trigger is to ensure that schools in corrective action that continue to 
fail to make adequate yearly progress are identified for restructuring, 
even if their disadvantaged students are making some statistically 
significant progress. A school identified under this criterion is a 
school that has failed to make adequate yearly progress for four 
consecutive years.
    Under restructuring, public school choice must be provided 
to all students at the low performing school along with 
transportation to attend another school; funds must be made 
available for the purchase of supplemental educational services 
for economically disadvantaged students enrolled at the low 
performing school. And, at least one of the following 
alternative governance arrangements must be implemented, 
consistent with State law: (1) reopening the school as a public 
charter school; (2) replacing the principal and all or most of 
the school staff that are relevant to the school's failure to 
make adequate yearly progress; (3) arranging for a private 
management company to operate the school; or (4) turning the 
operation of the school over to the State, if permitted by 
State law and agreed to by the State.
    Supplemental educational services represent a refreshing 
approach to the provision of Title I services. For the first 
time, Title I dollars would follow the child from the low 
performing school to a private provider of educational 
services. These services provide an important ``safety valve'' 
for students trapped in failing schools. Specifically, under 
section 1116(d)(1), low income families that have children 
attending schools designated for restructuring would have the 
opportunity to select a private provider to provide 
supplemental educational services to their children. Parents 
would select from a list of providers that has been approved by 
the State educational agency. Once the parents select the 
provider, the parent then notifies the LEA of their choice, and 
the LEA then works out an arrangement to pay for the services, 
as well as develops a statement of specific performance goals 
for the student, how the student's progress will be measured, 
and a timetable for improving the student's academic 
achievement. Up to 40 percent of a school's Title I allocation 
may be used to provide these services. In addition, an LEA may 
use Title IV, Part A funds for this purpose and may use up to 
15 percent of its Title I allocation for transportation 
expenses.
    Private school choice was included in section 1116(d)(2) in 
the Committee substitute to H.R. 1 as one of the required 
restructuring remedies. However, during Committee consideration 
of H.R. 1, an amendment offered by Rep. George Miller (D-CA) to 
strike all references to private school choice passed the 
Committee. The amendment struck private school choice from 
section 1116(d)(2) relating to students attending low 
performing schools, from the use of funds for the Title IV, 
Part A (Innovative Programs block grant), from Title IV, Part C 
(School Choice Demonstration Research Project), and from Title 
V, Part A (Safe Schools for the 21st Century), which would have 
provided private choice to students who have been victims of 
crime or who have been attending unsafe public schools.
    Under restructuring, as with corrective action, if all 
public schools to which a student may transfer have been 
identified for school improvement, then the LEA shall, to the 
extent practicable, work out a cooperative agreement for 
students to attend schools in neighboring local educational 
agencies.
    Similarly, as with corrective action, local educational 
agencies are required under restructuring to provide 
transportation for public school choice and may use up to 15 
percent of their Title I funds for transportation expenses.

Duration of Corrective Action and Restructuring

    Corrective actions and restructuring measures are no longer 
required for school improvement schools once the school makes 
adequate yearly progress for two consecutive years. As a 
corollary, the school would no longer be identified for school 
improvement if such progress has occurred. Additionally, if any 
school identified for corrective action or restructuring fails 
to make adequate yearly progress, but children from low income 
families in the school do make statistically significant 
educational progress for one year, then the LEA shall place the 
school in corrective action or continue the school in 
corrective action.

School Improvement and Corrective Action for Local Educational Agencies 
        (LEAS)

    Much like the process involved with LEAs overseeing schools 
identified for school improvement, SEAs are responsible, under 
section 1116(c), for overseeing LEAs as a whole and identifying 
whether the LEA shall be designated as in need of improvement 
and whether corrective actions should be taken.
    As collective bargaining agreements expire, the Committee 
encourages and expects educators and administrators to 
negotiate new agreements that are consistent with the 
requirements of section 1116, especially as that section 
relates to corrective action and restructuring for failing 
schools.
    Just a few years ago the Committee heard from Ms. Alveda 
King, the niece of the late Dr. Martin Luther King, Jr., and 
herself a former public and private school teacher, about the 
importance of parental choice. She said, ``It has been 
demonstrated that when you implement a choice program, . . . 
that you empower the parents, the system improves, the schools 
begin to compete, and that hope arises.'' It is the Committee's 
hope that these choice provisions, will indeed empower parents 
and lead to great improvements in low performing Title I 
schools.

Incentives for Academic Excellence

    Under current law, authority is provided in Title I school 
support teams and the designation and use of ``distinguished 
educators'' to help turn around low performing schools. The No 
Child Left Behind Act maintains these two concepts but improves 
upon them through the establishment of the Academic Achievement 
Awards Program in section 1117A. Under the Committee 
substitute, States may set aside up to 30 percent of any 
increases in Title I funding to provide cash awards for Title I 
schools that have significantly closed the achievement gap or 
that have exceeded their adequate yearly progress goals. 
Teachers whose students have consistently made gains in 
academic achievement in the areas in which the teacher provides 
instruction may also receive cash awards. The Committee 
believes that such awards and recognition will help to motivate 
further gains in academic performance and focus our students, 
teachers, and schools on success.

Local Control and Flexibility

    H.R. 1 significantly expands the existing flexibility in 
Title I at the local level. The flexibility accorded schools 
which utilize a schoolwide approach (whereby a school is able 
to consolidate several different federal education program 
funds with State and local resources to serve all students at 
the school) is strengthened by the lowering of the schoolwide 
poverty eligibility threshold from 50 percent to 40 percent. 
Section 1114, which provides this authority, will enable more 
schools to consider utilizing this approach to serve Title I 
students. Given the growing popularity of the schoolwide 
approach (over 80 percent of schools eligible to implement a 
schoolwide program actually utilize such an approach) it can be 
expected that even more schools will take advantage of this 
opportunity. Since 1995, the number of schools implementing 
schoolwide programs has more than tripled, from about 5,000 to 
approximately 19,227. An explanation of schoolwide programs can 
be found under the heading of this report entitled ``Schoolwide 
Programs.''
    Another area where flexibility is maintained is in how a 
school district or school uses Title I resources. Under current 
law, Title I funds may be used to employ teachers and teachers' 
aides, purchase supplemental reading and math instructional 
services from a third party contractor, purchase computers, 
conduct professional development activities, and other uses. 
This flexibility in the use of funds is preserved in H.R. 1.
    The Committee would also note that for States that have 
become Ed-Flex States under the Education Flexibility 
Partnership Act (P. L. 106-25) or its predecessor, the 
Education Flexibility Partnership Demonstration Act, waivers 
may be obtained for many of the provisions of Title I. Ed-Flex 
recognizes that there may not be one single best way to operate 
a federal education program. Texas and Maryland, in particular, 
are two States that have utilized Ed-Flex authority to allow 
more schools to participate in schoolwide projects and to 
better target Title I funds to the lowest achieving students. 
Such waivers as well as waivers under the Secretary's waiver 
authority in Title VIII of H.R. 1 would remain available to 
States and school districts under the bill.

Limitations Upon State and Local Administrative Funds

    Under current law, States are permitted to set-aside one 
percent of the Title I funds received under Parts A, C and D by 
the State for State administrative expenses. The No Child Left 
Behind Act would allow States to reserve an amount equal to the 
greater of one percent of the amount it received for such parts 
in fiscal year 2001, or $400,000, including any additional 
funds the State might receive under a separate line item 
authorization provided in section 1002(i)(2).
    A large portion of these federal funds have been used in 
the past to finance up to 80 percent of the operating expenses 
of some State educational agencies. While some States have 
reduced the relative share of federal funds used for this 
purpose, the Committee believes that at a maximum, no more than 
50 percent of the State educational agency's operating expenses 
should be derived from Title I administrative funds. Section 
1002(i)(3) of the No Child Left Behind Act would limit the 
federal share to no more than State educational agency's share 
of operating expenses.
    At the school district level, no limit is currently placed 
on the amount that can be used for administrative expenses. The 
Department of Education's Study of Education Resources and 
Federal Funding: Preliminary Report, issued in June 1999, shows 
that about eight percent of Title I funds at the school 
district level are spent on administrative costs. According to 
the study, this percentage is greater than any other federal 
elementary and secondary education formula grant program except 
the Safe and Drug-Free Schools program. In keeping with the 
Committee's continuing emphasis upon sending more dollars 
directly into the classroom, the Committee has limited Title I 
administrative costs at the school district level to no more 
than four percent of the district's Title I allocation. This 
limitation is found in section 1804 of the bill. The Committee 
has further required, in section 1804, the Secretary of 
Education to develop a definition of administrative expenses in 
consultation with others.

Scientifically Based Research

    Consistent with the Reading First Act in Part B of Title I, 
the Committee believes that Title I programs--whether utilizing 
the schoolwide approach or the targeted approach--should be 
based on sound scientifically-based research. Dr. Reid Lyon of 
the National Institute of Child Health and Development (NICHD) 
in testimony before the full Committee on July 27, 1999, noted 
that many educationally disadvantaged students continue to fail 
at mastering reading because the methods of instruction--though 
touted as ``research-based''--are not of the quality and rigor 
that they should be in order to bring about improvements in 
reading achievement. He said,

          [G]iven that the term ``research-based'' implies that 
        the reading programs or approaches have been 
        objectively evaluated to determine for which children 
        the programs are most appropriate, why do so many 
        disadvantaged children continue to founder in reading? 
        One major reason is that the term ``research-based'' 
        currently means many things to many people, with 
        significant variations in the scientific quality of the 
        research described by the use of the term. For example, 
        some instructional reading programs touted as 
        ``research-based'' may be based upon mediocre and 
        substantially flawed scientific studies, while other 
        instructional programs are based on studies that meet 
        rigorous scientific criteria for research quality. The 
        problem is that many in the field of education do not 
        recognize the difference. To date, adherence to 
        scientific quality and criteria has not been a strong 
        guiding force in selecting and implementing 
        instructional reading programs and approaches for 
        children eligible for Title I services.

    To address this shortcoming, the Committee has included 
language in the bill, which ensures that the instructional 
strategies used to provide Title I supplemental educational 
services must be of high quality and based on scientifically 
based research. This means the instructional strategies must 
have resulted from the application of rigorous, systematic, and 
objective procedures; must employ systematic empirical methods 
that draw on observation or experiment; involve rigorous data 
analyses; rely upon measurements or observational methods that 
provide valid data across evaluators and observers and across 
multiple measurements and observations; and have been accepted 
by a peer-reviewed journal or approved by a panel of 
independent experts through a comparably rigorous, objective, 
and scientific review.

Empowering Parents

    For several years Title I has actively engaged parents in 
the education of their children through such things as parental 
compacts and formal parental involvement policies. School-
parent compacts, which are developed by parents and school 
officials, typically outline how parents, the school staff and 
students will share the responsibility for improving student 
achievement at the school. Such agreements also serve as the 
means by which the school and parents build and develop working 
partnerships to help children achieve to the advanced and 
proficient levels on a State's assessments.
    Section 1118 would generally continue the existing approach 
of parental involvement as outlined above, but in a more 
streamlined fashion. However, the Committee wishes to note that 
there are several other new provisions in H.R. 1, which would 
put more power in the hands of parents. As mentioned earlier in 
this report, some of the most significant parental empowerment 
provisions in the No Child Left Behind Act are the public 
school choice options. School districts may use up to 15 
percent of Title I funds for transportation in the optional 
school choice program authorized by Section 1115A. Under 
current law school districts may not use Title I funds for 
transportation. Additional school choice options are further 
described in the portion of this report that addresses academic 
accountability under Section 1116.

Teachers, Paraprofessionals, and Professional Development

    The Title I Follow-Up School Survey (Washington, DC: U.S. 
Department of Education, 1998) found that approximately 74,600 
full time teachers were funded under Title I during the 1997-98 
school year, a level that has remained fairly consistent over 
the past 20 years.
    Given that up to half of Title I funds go toward teachers, 
the Committee has been keenly interested in the quality of 
these teachers. The U.S. Department of Education's 1999 Study 
of Education Resources and Federal Funding, showed that in fact 
all Title I teachers possess a Bachelor's degree, while half 
have a Master's degree--reflecting the average educational 
attainment of teachers nationwide. However, while it is known 
that nationwide, 44 percent of middle schools teacher majored 
in an academic field, there is not reliable data on the 
percentage of Title I teachers with a major in an academic 
field. Teacher Quality: A Report on the Preparation and 
Qualifications of Public School Teachers, January 1999, 
National Center for Education Statistics.
    Although not specifically dealing with Title I teachers, a 
report by the Education Trust entitled Good Teaching Matters, 
Vol. 3, Issue 2, ``Thinking K-16'' A publication of the 
Education Trust,'' provides data compiled by Richard Ingersoll, 
a professor at the University of Georgia on the quality of 
teachers in poor schools. Specifically, he found that while 
only 15 percent of classes in low poverty schools are taught by 
teachers lacking a major in their field, fully 25 percent of 
classes in high poverty schools are taught by such teachers. As 
the report notes, ``the very youngsters who are most dependent 
on their teachers for content knowledge are systematically 
taught by teachers with the least content knowledge.''
    The United States Department of Education's 1999 National 
Assessment of Title I noted teacher quality as one of the 
challenges continuing to face Title I.

          Along with the evidence that high-achieving high-
        poverty schools focus attention on challenging 
        standards for all students, comes the reality that many 
        teachers are not prepared to teach to challenging 
        standards. In a 1998 survey, only about one-third of 
        teachers in schools with 60 percent or more poor 
        children believe they are well-equipped to use 
        standards in the classroom. This is particularly 
        noteworthy given evidence that teachers' reported 
        preparedness in both subject matter and instructional 
        strategies had a positive relationship with student 
        gains.

    It is the strongly held view of the Committee that each and 
every teacher hired using these funds be fully qualified to 
teach. In a series of hearings held over the past three years, 
the Committee has been provided the most recent findings on the 
difference that a qualified teacher can make in the academic 
lives of students.
    Given the importance of teacher quality, and the high 
proportion of federal education dollars used to fund teachers, 
the No Child Left Behind Act includes language to ensure that 
at a minimum, all teachers hired under Title I will meet the 
teaching requirements within the State they are teaching. Each 
State receiving Title I dollars will have to have a plan in 
place to ensure that all teachers are fully qualified not later 
than December 31, 2005. States will also have to report their 
progress and the agency's and schools performance in increasing 
the percentage of classes in core academic areas taught by 
fully qualified teachers. This not only raises the bar for 
teachers teaching under Title I, it also represents a signal to 
school administrators that every effort should be made to avoid 
assigning a teacher to a class in which the teacher has no 
academic subject knowledge.
    The Committee believes the combination of these minimum 
education levels, along with the increased information provided 
to the parents of students being taught by unqualified or 
underqualified teachers, will have a significant and lasting 
impact on the quality of instruction under Title I and an 
increased level of academic achievement among students in Title 
I schools.
    H.R. 1 also incorporates language that requires States to 
plan for how they will ensure all teachers in the State meet 
their minimum certification or licensure requirements and will 
be proficient in the academic subjects in which they teach.

Paraprofessionals

    Teacher aides, otherwise referred to as paraprofessionals, 
have been a fixture of Title I since its inception. In a report 
prepared for the National Education Association, 
Paraprofessionals in the Education Workforce, 1995, Anna Lou 
Pickett, referring to such programs as Title I and Head Start, 
noted ``federal legislation in the 1960's and 70's designed to 
carry out the War on Poverty provided significant impetus and 
support for the employment of paraprofessionals.''
    Given this historical perspective, it may not be surprising 
that nearly 40 years later, some leading education experts, 
including those within the U.S. Department of Education, are 
beginning to openly question whether the use of Title I aides 
has amounted to simply a jobs program for those within the 
community. This view is supported by the fact that the use of 
paraprofessionals is often far greater in urban, and other 
traditionally higher unemployment, areas.
    A Los Angeles Times article (``Title I's $118 Billion Fails 
to Close Gap,'' 1/17/99) highlighted some of the concerns 
related to the use of paraprofessionals under Title I.

          [P]art of the problem, according to high-ranking 
        education officials and other experts, is that schools 
        squander Title I funds on clerical workers and 
        classroom aides who lack the expertise to teach poor 
        students the kind of high-level skills needed to 
        compete with their more affluent peers.
          It's pretty significant that half of the 
        instructional staff under Title I were 
        paraprofessionals,'' said Val Plisko, who supervises 
        independent evaluations for the Education Department's 
        Planning and Evaluation Service. ``For children who are 
        most at risk, you want the best-educated, the most 
        knowledgeable, the most effective teachers.
    The 1999 National Assessment of Title I noted that there 
has been a growth of paraprofessionals since 1993, from 65,000 
full-time aides to 76,900 in 1997-98. (52,000 of these aides in 
1997-98 were in high-poverty schools). It is estimated that up 
to 25 percent of all Title I funds are used to hire 
paraprofessionals. ``In California, the latest available 
figures indicate that the ratio of aides to teachers paid for 
by Title I funds is 4 to 1. At Los Angeles Unified, the 
nation's second largest school district, the ratio is about 7 
to 1.'' (1/17/99 Los Angeles Times)
    Nevertheless, some educators see significant value in the 
use of Title I funds for paraprofessionals when they are 
properly trained, and utilized effectively by a qualified 
teacher. However, there is growing evidence that the roles and 
responsibilities given to paraprofessionals by both teachers 
and principals, has gone beyond the original intent. Too often 
paraprofessionals are asked to carry out duties for which they 
are not qualified.
    Currently, under ESEA, paraprofessionals employed with 
Title I funds must meet three criteria: have the knowledge and 
skills necessary to assist Title I children in meeting 
education goals; be within two years of having a diploma or GED 
(except that paraprofessionals acting as translators have no 
such requirement); and be under the direct supervision of a 
teacher.
    In fact, most paraprofessionals meet the minimum education 
requirements under current law. According to the 1999 National 
Assessment of Title I, 99 percent of paraprofessionals have a 
high school diploma or GED. However, the educational attainment 
of paraprofessionals in high-poverty schools is often far below 
that of their peers in low-poverty schools. Specifically, while 
37 percent of paraprofessionals in low-poverty schools have a 
bachelors' degree, only ten percent of those in high-poverty 
Title I schools have a bachelors' degree. Similarly, while 86 
percent of teacher aides in low-poverty schools at the 
secondary level have a bachelors' degree, just four percent of 
their counterparts in high-poverty schools have a bachelor's 
degree.
    If paraprofessionals were strictly carrying out non-
instructional duties, the fact that many have a minimum level 
of education would not pose a significant problem. However, as 
noted in the 1999 National Assessment of Title I prepared by 
the U.S. Department of Education, paraprofessionals under Title 
I ``spend a majority of their time teaching despite their lack 
of the educational background to do so.'' Providing detail as 
to the extent of this problem, the Assessment noted the 
following findings: 98 percent of aides were either teaching or 
helping to teach students; 76 percent of aides spent at least 
some of this time teaching on their own, without a teacher 
present; and 46 percent of aides in high-poverty schools spent 
half or more of this time on their own, without a teacher 
present.
    Given that Title I students are being extensively exposed 
to paraprofessionals, (often without the direct supervision of 
a teacher), the Committee is concerned with growing evidence 
that such trends may be having a negative impact upon student 
achievement. An article in the The New Republic (``The Trouble 
with Teacher's Aides,'' August 9, 1999) indicated that ``A 
recent Department of Education reanalysis of Title I data from 
the late '80s found `no positive impact' for students in 
classes with teacher aides.''
    A press release issued by the Educational Research Service 
in April 1999, entitled the Unexpected Lessons from the 
Tennessee Project Star Study provided further evidence of the 
impact paraprofessionals may have upon student achievement. The 
study found that classes of 25 students with a full-time 
teacher aide did not improve student achievement in grades K-3 
in reading or math.
    In response to these and other concerns over the use of 
paraprofessionals, the No Child Left Behind Act of 2001 
includes provisions to raise the educational level of 
paraprofessionals and to ensure they are provided with 
appropriate responsibilities.
    First, the language sets a higher threshold of 
qualifications for paraprofessionals, surpassing that of simply 
a high school diploma or its equivalent. Specifically, it 
requires paraprofessionals to have completed either two years 
of college, an associate's degree, or met a rigorous standard 
of quality through a formal assessment, have knowledge of and 
the ability to instruct in reading, writing, or math, or 
reading readiness, writing readiness, or math readiness. The 
Committee emphasizes that such assessment shall not simply be 
met by receipt of a high school degree, or its equivalent.
    Secondly, the language sets clear guidelines for duties 
that paraprofessionals may carry out. The Committee believes 
that if paraprofessionals are hired under Title I, they should 
not simply servein an administrative or child-supervisory 
capacity. Instead, paraprofessionals should, when qualified, assist 
primarily in providing instructional services to students. The 
Committee emphasizes language included under the Act which prohibits 
paraprofessionals from providing instruction if not working under the 
direct supervision of a fully qualified teacher. The language goes 
further with respect to instructional services in the area of reading, 
a subject in which 88 percent of paraprofessionals assist in providing 
instruction. Specifically, paraprofessionals may not provide 
instructional services to students in the area of reading unless the 
paraprofessional has demonstrated, through a State or local assessment, 
the ability to effectively carry out instruction in reading, writing, 
and math. This provision comes amid a growing consensus of the 
importance that students receive instruction founded upon 
scientifically based research and from fully qualified teachers.
    It is the intent of the Committee that the SEA carefully 
monitor the quality of the local formal assessment of 
paraprofessionals to ensure that the assessments are rigorous. 
The Committee intends that only qualified teachers provide 
instructional services to Title I students and that 
instructional services provided by paraprofessionals be 
restricted to one-on-one tutoring that reinforces and supports 
the instruction provided by the teacher.
    The Committee notes language that has been added to the No 
Child Left Behind Act prohibiting the Secretary from imposing 
any mandatory national certification of paraprofessionals.
    Finally, in an attempt to stem the continued growth of 
paraprofessionals hired under Title I, the provisions include a 
freeze on the hiring of paraprofessionals. The language does 
however, allow for vacancies created by departing 
paraprofessionals to be filled. The intent of the Committee is 
that local educational agencies could fill vacancies caused by 
the departure of a paraprofessional from a school, but would 
not be allowed to create ``new'' vacancies which would result 
in an increase in the number of paraprofessionals above what 
existed before departures. The Act provides an exception to 
this hiring freeze if the local educational agency is able to 
demonstrate that all teachers within the local educational 
agency are fully qualified. In any event, this exception does 
not waive the minimum qualifications paraprofessionals must 
meet, as described above and under subsections (b) and (c) of 
section 1119.
    The Committee believes that these provisions, along with 
the increased information on the quality of paraprofessionals 
provided through report cards under this Act, will 
significantly increase the quality of paraprofessionals within 
Title I schools. During the course of the next several years, 
the Committee intends to continue to closely examine the role 
of paraprofessionals to determine if further changes to Title I 
need to be made in this area.

Professional Development

    The Study of Education Resources and Federal Funding 2000 
found that for the 1997-98 school year, Title I expenditures on 
professional development at the district and school levels 
amounted to $212 million, 27 percent of all federally funded 
expenditures for professional development. The study noted that 
use of Title I funds for professional development was 
widespread, with 86 percent of district coordinators reporting 
using at least some portion of their Title I funds for this 
purpose.
    Although widespread, the intensity of professional 
development provided to Title I teachers appears to be limited. 
The 1999 National Assessment of Title I found that ``55 percent 
of teachers in high-poverty schools reported spending less than 
nine hours per year on training in the content areas. Moreover, 
70 percent of teachers in high-poverty schools report receiving 
less than nine hours per year of professional development 
related to State or district curriculum and performance 
standards . . .''
    With the focus on teacher quality and the increased 
attention on ensuring fully qualified teachers in every 
classroom, it can be expected that professional development 
will constitute a growing proportion of the use of Title I 
funds in the coming years. In anticipation of this growth, the 
No Child Left Behind Act of 2001 builds upon current Title I 
provisions to ensure that professional development under Title 
I is worthwhile.
    The No Child Left Behind Act of 2001 builds upon research 
that has been proven to have the common characteristics of 
effective professional development. This research is discussed 
in detail under the section of this report on Title II. 
Specifically, under Section 1119A and also under Title II, 
professional development must: (1) support professional 
development activities that give teachers, principals, and 
administrators the knowledge and skills to provide students 
with opportunity to meet challenging State content standards 
and student achievement standards; (2) support the recruiting, 
hiring, and training of fully qualified teachers, including 
teachers fully qualified through State and local alternative 
routes; (3) advance teacher understanding of effective 
instructional strategies based on scientifically based research 
for improving student achievement; (4) be directly related to 
the curriculum and content areas in which the teacher provides 
instruction; (5) be designed to enhance the ability of a 
teacher to understand and use the State's standards for the 
subject area in which the teacher provides instruction; (6) be 
tied to scientifically based research demonstrating the 
effectiveness of such professional development activities or 
programs in increasing student achievement; (7) be of 
sufficient intensity and duration (not to include one-day or 
short-term workshops and conferences) to have a positive and 
lasting impact; (8) be developed with extensive participation 
of teachers, principals, parents, and administrators; (9) be 
designed to give teachers of limited English proficient 
children the knowledge and skills to provide instruction and 
appropriate language and academic support services to such 
children; (10) to the extent appropriate, provide training for 
teachers and principals in the use of technology; (11) be 
regularly evaluated for their impact on increased teacher 
effectiveness and improved student achievement.
    With respect to the requirement that the activity ``be of 
sufficient intensity and duration (not to include one-day or 
short-term workshops and conferences) to have a positive and 
lasting impact,'' the Committee notes that exceptions may be 
provided if such single activity is a component of a long-term 
comprehensive professional development plan established by the 
teacher and the teachers' supervisor based upon an assessment 
of their needs, their students' needs, and the needs of the 
local educational agency. This provision is based upon the 
National Eisenhower evaluation which found that traditional 
types of professional development (such as conferences), are 
less likely to be associated with positive teacher outcomes, 
unless they occur over a long time span and involve a 
significant number of hours.
    The Committee believes that with the focus on quality under 
both Title II of ESEA and the changes made under this Act to 
Title I, teachers will have the opportunity to participate in 
high level programs that have a direct impact in not only 
raising their own skills but also translating those skills into 
gains in academic achievement of their students.

Participation of Children Enrolled in Private Schools

    In general, under current law Title I services are provided 
to eligible private school children directly by the local 
educational agency or through a third party contract with the 
school district. As a part of the process, the local 
educational agency is required to provide timely and meaningful 
consultation with private school officials on how the needs of 
private school children will be identified, what kinds of Title 
I services will be offered, how and where the services will be 
provided, how the services will be assessed, the size and scope 
of the services, and the proportion of funds allocated.
    The 1998 Department of Education publication Title I 
Services for Private School Students under the Reauthorization 
of ESEA: A Snapshot of Federal Assistance in Transition 
indicates that there is serious disagreement among public, 
private, and religious school representatives on the extent to 
which Title I consultations have been meaningful and timely. 
Catholic school officials have informed the Committee that in 
some areas of the country, local educational agencies provide 
little or no consultation with private school officials, and 
where consultation does occur, it can hardly be considered 
meaningful. In written testimony submitted to the Committee on 
Education and the Workforce on June 10, 1999, Mr. John R. 
Clark, Assistant Superintendent for the Diocese of Allentown 
Pennsylvania and Chairman of the United States Catholic 
Conference Federal Assistance Advisory Commission told how 
public and private school officials developed and implemented a 
specific signoff form by both parties as to the issues on which 
consultation takes place. This approach has worked well in 
Pennsylvania and the Committee encourages school districts to 
consider such an approach.
    The Committee has included language in Section 1120(b), 
which tightens the requirements for ``timely and meaningful 
consultation.'' Under H.R. 1, the local educational agency must 
consult with private school officials not only on how and where 
the services will be provided, as under current law, but they 
must also consult on the selection of the contractor that 
provides the services, in situations where contractors are 
utilized. In addition, the local educational agency must tell 
how the Title I services will be assessed, and how the results 
of that assessment will be used to improve the services to 
private school children. The consultations must involve not 
only meetings prior to the school district making a decision on 
the services, but also throughout the implementation and 
assessment of the services. Such measures will help ensure that 
high quality services are provided to private school children. 
The requirement that the services be assessed and that the 
district use the results to improve the services should help 
guard against private schools receiving poor quality services, 
and having no recourse. The Committee is aware of a situation 
in Compton, California where several years ago private schools 
had no choice but to continue to tolerate ineffective and poor 
quality services for an extended time, prior to the U.S. 
Department of Education reviewing the situation. Such 
situations should be less likely with these new provisions in 
place.
    H.R. 1 also provides a phase out over a two year period of 
the capital expense account for private schools, which had been 
used to offset the costs, for example, of renting space in 
``neutral'' sites to deliver instruction. With the June 23, 
1997 United States Supreme Court decision in Agostini v. Felton 
(521 U.S. 203 (1997)), such rentals are no longer essential to 
meeting federal constitutional requirements. In Agostini, the 
court abandoned the presumption that placing public employees 
within religious institutions inevitably leads to either 
indoctrination, excessive entanglement, or a symbolic union 
between government and religion. However, the Committee is 
informed that in some school districts, long-term contracts for 
the rental of neutral sites for the provision of services 
continue to exist, and in an effort to address such situations, 
the Committee has chosen to continue the authorization for 
capital expenses but only for a two-year period, through 2003.

Title I, Part A Allocation Formulas

    H.R. 1 makes minor changes to the Title I Part A formula 
because the Committee believes that the significant changes 
made to the formula in the 1994 amendments have not been 
implemented due to extraordinary hold harmless provisions and 
lack of funding for the Targeted Grant formula since FY1995. In 
an effort to break that trend, the Committee has made a change 
in how new funds are to be distributed which is described 
below. The Committee is hopeful that the Appropriations 
Committees will abide by the authorizing statute so that Title 
I funds can be distributed to those areas where the most 
disadvantaged children live so those children who need these 
educational services the most can receive them.
    With respect to the share of Part A funds to be allocated 
under each of the authorized formulas--Basic, Concentration, 
and Targeted Grants--the bill provides that an amount equal to 
the FY 2001 appropriation will be allocated under the Basic and 
Concentration Grant formulas (and in the same proportions as 
for FY 2001--85 percent Basic Grants and 15 percent 
Concentration Grants). Next, any increases in funds over the FY 
2001 appropriation for Part A will be allocated under the 
Targeted Grant formula.
    The major provisions of the Basic, Concentration, and 
Targeted Grant formulas in H.R. 1 are generally the same as 
under current law. However, the bill does make the following 
modifications to the current provisions of these formulas. 
First, a hold harmless rate, of 85 percent of previous year 
grants, will be applied to Concentration Grants. Currently, the 
ESEA provides a hold harmless rate of 85-95 percent of previous 
year grants for Basic and Targeted Grants, but no hold harmless 
for Concentration Grants. In addition, for the Concentration 
Grant formula only, H.R. 1 provides that hold harmless amounts 
would apply to all local educational agencies, including those 
which do not meet ``primary eligibility criteria''--i.e., the 
6,500 or 15 percent thresholds for receipt of Concentration 
Grants; however, this provision would no longer apply if a 
local educational agency does not meet the eligibility 
thresholds for four consecutive years.
    Third, the expenditure factor used in all of the Title I 
allocation formulas will be increased for Puerto Rico in stages 
over the FY 2002-2005 period. As a result, at the end of this 
period, the Puerto Rico expenditure factor will be at least 85 
percent of the minimum expenditure factor applicable to the 50 
States and the District of Columbia (for FY 2001, it is 75.1 
percent of thisminimum). However, this provision will not be 
implemented if it would result in any State receiving less than its 
previous year grant under Part A.
    Fourth, the bill eliminates a number of provisions that 
were in effect only for past years and are no longer relevant. 
Further, some provisions are simplified, updated, and/or 
clarified, with no substantive amendment.
    H.R. 1 deletes provisions for the fourth Title I, Part A 
allocation formula which is currently authorized, although no 
funding is provided for it--the Education Finance Incentive 
Grant formula. It also deletes the current provision for the 
reservation of $5 million each year for grants to the freely 
associated States (Palau, Federated States of Micronesia, and 
the Republic of the Marshall Islands), which are no longer U.S. 
territories, replacing it, through 2003 only, with a 
requirement for a similar amount of each year's Part A grant to 
be distributed through a competition among these areas as well 
as other outlying areas. However, the Committee wants to make 
clear that the outlying areas (U.S. Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Marianas) 
will receive their full allotment under the one percent 
reservation and do not have to compete for their share. The 
outlying areas, however, are eligible to compete for additional 
funds under the competition described above.

Title I, Part B--Reading first; early reading first; even start and the 
                 inexpensive book distribution program

Background

    Reading First and Early Reading First will provide 
assistance to States and local educational agencies in 
establishing reading programs for students in grades 
kindergarten through 3 that have the highest number of students 
who cannot read, on the latest scientific research in reading 
instruction. Funds will be used for professional development, 
diagnostic assessments, and instructional materials to 
effectively teach the essential components of reading 
instruction in the classroom. Students who can read fluently 
are more likely to develop a lifelong love of books, and be 
successful in school.

The Reading Deficit

    In April of 2001 the National Assessment of Educational 
Progress (NAEP) statistics once again sounded out the alarm: 
``63 percent of African Americans, 58 percent of Hispanic 
Americans, 60 percent of children living in poverty, and 47 
percent of children in urban schools scored `below basic' in 
reading.'' There are many adults who have already been left 
behind as reported by the National Adult Literacy Survey which 
found that nearly one half of the American population have some 
significant limitation in their reading skills.
    Americans have almost become numb to such startling 
statistics. How can it be that a nation that has such vast 
financial resources dedicated to educating its children could 
allow so many to be left behind because they have not learned 
to read? At the dawn of the 21st century, with technology 
available for instant global communication, why are so many 
children not mastering a skill as basic as reading?
    This issue is not new to the body politic. For the last 
third of the 20th century billions of dollars were appropriated 
by Congress to improve reading instruction. It is estimated 
that nearly three quarters of the $130 billion of Title I funds 
have been used to attempt to improve reading instruction, and 
yet student's reading scores have remained flat since 1972 when 
the NAEP began collecting such statistics.
    The private sector pumps millions of dollars into 
communities to encourage reading through programs like Book 
It!, sponsored by Pizza Hut, and HOSTS, designed to offer one-
on-one tutoring in reading to struggling students. For example 
HOSTS encourages parental involvement in reading with their 
children, and their programs have dramatically improved 
students' reading levels. There are many other dedicated 
Americans who help adults in organizations like Literacy 
Volunteers of America, Laubach Literacy, and scores of other 
private sector programs and corporations which seek to do the 
same. Yet, even with all this attention to reading, the problem 
of illiteracy worsens every year. The Committee recognizes that 
the love of books and the wealth of information that can be 
found in community and school libraries can only be accessed 
when children learn to read with fluency and ease. Providing 
books to children from disadvantaged backgrounds through early 
learning and child-care programs, preschools, Head Start 
Centers and throughout a students school years by including 
interesting books to read as part of the instructional 
materials available to them, will help them establish a solid 
foundation for formal reading instruction.

Reading First and Early Reading First

    Under H.R. 1, 80 percent of the funds under Reading First 
will be allocated to States in five-year grants. There is a 
limitation that funds be allocated to areas where there are the 
highest percentages of children in kindergarten through grade 
three who are reading below grade level or whose families have 
incomes below the poverty line; or which have been designated 
an empowerment zone or enterprise community; or which have 
schools in school improvement (section 1203(c)(4)). Twenty 
percent of the funds are awarded to States as competitive 
grants that will be available to schools that have made the 
most progress in reducing the number of students who can't read 
proficiently (section 1205).
    A peer review panel as defined in section 1204(c)(2) will 
review all grants submitted by States to determine whether 
their professional development programs, diagnostic assessment 
and screening tools, and instructional materials meet the 
standards of scientifically based reading research and include 
all the essential components of reading instruction. The Panel 
will submit its recommendations to the Secretary for his 
consideration.
    States will submit annual progress reports to the Secretary 
to identify those schools and local educational agencies that 
report the largest gains in reading achievement, based on valid 
assessments of reading proficiency. The essential components of 
reading instruction, defined in section 1209(2), can be taught 
in many diverse ways, but to become successful readers, 
students need to be taught each component effectively.
    Reading First is Grounded on Nearly a Half Century of 
Reading Research
    There are at least six major research reports on reading 
instruction that have been funded and released by the federal 
government over the past two decades. These reports cite 
findings on which researchers have reached consensus. 1985--
Becoming A Nation of Readers; 1990--Beginning to Read: Thinking 
and Learning About Print; 1998--Reading: A Research-Based 
Approach (National Institute For Child Health and Human 
Development); 1998--Preventing Reading Difficulties in Young 
Children (National Research Council); 1998--Every Child 
Reading: An Action Plan of the Learning First Alliance. The 
findings of these reports come from quantitative, 
scientifically based reading research as defined in section 
1209(6), and represent a consensus on the essential components 
of reading instruction.

2000--Report of the National Reading Panel

    The National Reading Panel staff reviewed more than 100,000 
research studies on reading since 1966, from which the panel 
identified 6007 that were scientifically valid. The findings of 
a careful analysis of those studies indicated that the 
following five instructional components are essential for 
effective reading instruction: phonemic awareness; systematic 
phonics instruction; oral reading for fluency; vocabulary 
development; and comprehension strategies. Listed below are the 
essential components of reading instruction as defined in 
section 1209(2), and identified as such by the National Reading 
Panel and upon which the Reading First and Early Reading First 
programs are based.

Phonemic Awareness

    Correlated studies have identified phonemic awareness, as 
one of the best predictors of how well children will learn to 
read during the first two years of instruction. Results of 
experimental studies led the Panel to conclude ``phonemic 
awareness training was the cause of improvement in students' 
phonemic awareness, reading, and spelling following training.''

Systematic Phonics Instruction

    The Panel reaffirmed previous findings: ``Systematic 
phonics instruction produces significant benefits for students 
in kindergarten through sixth grade and for children having 
difficulty learning to read. The ability to read and spell 
words was enhanced in kindergartners who received systematic 
beginning phonics instruction. First graders who were taught 
phonics skills systematically were better able to decode and 
spell, and they showed significant improvement in their ability 
to comprehend text.''

Oral Reading to Build Fluency

    The Panel found that, ``fluent readers are able to read 
orally with speed, accuracy, and proper expression. Oral 
reading fluency is another critical factor necessary for 
reading comprehension.''

Vocabulary Development

    The Panel found that ``vocabulary should be taught both 
directly and indirectly. Repetition and multiple exposures to 
vocabulary items are important. Learning in rich contexts, 
incidental learning, and use of computer technology all enhance 
the acquisition of vocabulary.''

Comprehension

    The Panel identified three prominent research themes on the 
development of reading comprehension skills: ``comprehension is 
a complex skill that depends on vocabulary development; it is 
an active process that requires intentional and thoughtful 
interaction between text and reader; and teacher preparation is 
intimately linked to students' achievement in comprehension.''

The Research is Conclusive

    Although knowledge will continue to expand, we now have 
enough information to help almost all children learn to read, 
write, speak, and spell accurately and fluently. Dr. Benita 
Blachman (1996) in a chapter, ``Preventing Early Reading 
Failure,'' in Learning Disability: Lifelong Issues, explains: 
``The good news is that there have been scientific 
breakthroughs in our knowledge about the development of 
literacy. Direct, systematic instruction about the alphabetic 
code is not routinely provided in kindergarten and first grade, 
despite the fact that, given what we know at the moment, this 
might be our most powerful weapon in the fight against 
illiteracy.''

Common Beliefs Not Supported by Scientifically Based Reading Research

    Dr. Louisa Moats has succinctly outlined some of the most 
prevalent principles that are fundamental to whole language or 
balanced instruction in reading in: Whole Language Lives On: 
The Illusion of ``Balanced'' Reading Instruction. ``Learning to 
read is not natural. The alphabetic principle is not learned 
simply from exposure to print. Context is not the primary 
factor in word recognition.'' Instructional materials or 
tutorial programs that persist in including these unproven 
practices should not be eligible for funding under the Reading 
First or Early Reading First programs.

Professional Development and Instructional Materials

    In section 1203(8)(d)(1) States may use up to 15 percent of 
their formula grant funds for professional development. To 
eliminate the reading deficit, these findings need to become a 
part of routine elementary teacher pre-service education and 
in-service professional development. For this reason, the 
Committee has structured the Reading First and Early Reading 
First programs to provide both of these opportunities, at the 
State level, for reading teachers to become informed on how to 
teach the essential components of reading instruction. States 
like California, Texas, Georgia and Virginia have already 
developed excellent programs for reading teachers. There are 
summer institutes such as the Greenwood Institute in Putney, 
Vermont, where teachers can gain the knowledge of reading 
instruction that is based on the latest research. The most 
important objective is to provide reading teachers with the 
background in the alphabetic principle that is fundamental to 
the English language, and how to teach that principle to 
beginning readers.
    Instructional materials may be purchased under section 
1203(c)(7)(A)(ii) and are critical to the success of Reading 
First. It is important that instructional programs include all 
the essential components of reading instruction. Some students 
need intensive instruction to learn decoding skills; others may 
come to school with these skills already mastered. Still other 
students may have a deficiency in spoken vocabulary, or lack 
the ability to read fluently. Care should be taken to review 
text materials to make sure that the approach to reading 
instruction is based on the latest valid, scientific research 
in reading instruction.

Diagnosing and Measuring Student Progress in Reading

    It is the Committee's view that objective diagnosis and 
measurement of student progress in the essential elements of 
reading instruction is necessary, but the determination of what 
assessment instruments to use should be left to States and 
local schools. Most research based reading instruction already 
includes regular assessment instruments to measure student 
progress in improving their reading skills. Funds to purchase 
rigorous diagnostic reading and screening assessment tools in 
section 1203(c)(7)(A)(i) are included in Reading First Grants 
because the Committee believes that without an accurate 
diagnosis and assessment of a student there is no way to 
determine what skills are missing and still need to be taught, 
and when a student has gained the ability to read 
independently, fluently, and with comprehension.

Limited English Proficient Students Learn to Read

    At a field hearing in Bradenton, Florida, the Committee 
heard from Bertha Zapata, a reading teacher in Broward 
Elementary School, Tampa, Florida. Most students in her class 
speak little or no English and the majority are Hispanic and 
Asian. By the end of one year, the majority of her students are 
speaking, reading and writing English. Ms. Zapata told the 
Committee: ``It is not magic. It is not because all these 
children are extremely bright, though many of them are. It is 
because the method that I have been using to teach non-English 
speaking children since 1994 incorporates the essential 
components of reading instruction to help them become accurate 
spellers, fluent readers, and accomplished writers.''
    In a letter to the Committee a first grade bilingual 
teacher wrote: ``I teach first grade in San Jacinto Elementary 
school. I have 45 students in my class, few of the parents of 
these children speak English, and one third of them have at 
least one parent in jail. I teach entirely in English. I began 
supplementing my regular classroom curriculum with a book I got 
from the library titled Phonics Pathways, and after only four 
months all of my first-graders read at grade level.'' This 
story is repeated over and over in schools all across America.

Specific Learning Disabilities

    It is estimated that effective reading instruction, that 
includes the essential components of reading instruction, could 
prevent as many as 70 percent, or more than 1.5 million 
students, from developing a severe reading disability and 
therefore having to be identified as learning disabled (section 
1203(c)(7)(ii)(II)(cc) under the Individuals with Disabilities 
Education Act (IDEA). This kind of remarkable success has been 
documented in research projects conducted over the past thirty 
years and funded by the federal government. The Committee notes 
that some children may need eye screening or eyeglasses to make 
sure students have no physiological impediment to learning to 
read.

External Evaluation of Reading First

    The Committee believes that it is essential that an 
external evaluation of the Reading First program be conducted. 
Objectivity is often lost when agencies evaluate the programs 
they administer. The Committee believes that the ability to 
reform or modify federal programs is most effectively done when 
an external evaluation is conducted. The Reading First program 
gives the Secretary of Education the funds and the authority to 
order this External Evaluation of Reading First in section 
1206. The cost and effort required to conduct this review is 
substantial, but its results would offer the Congress a roadmap 
for continuing or revising or changing these vital programs for 
the better in the future.

Early Reading First Develops Important Pre-Reading Skills

    The purpose of subpart 2 is to improve pre-reading skills 
in children ages 3 through 5, particularly children from low 
income families, in high-quality oral language and literature-
rich environments. Through scientific research, much has been 
learned about the way children learn to read, and the strong 
foundation that is important before children are given formal 
reading instruction in kindergarten and first grade. Child-care 
centers, public and private, and Head Start centers can help. 
In addition to caring for the emotional and social needs of 
children under their care, they can encourage and promote 
cognitive development activities along with professional 
development for teachers and staff based on scientific research 
in reading.
    Children who have poor beginning reading skills are less 
likely to develop better reading skills through their school 
careers. Early Reading First is specifically designed to help 
them reverse that trend. There are several generalizations 
about reading instruction that should be taken into account by 
pre-school and child-care teachers. For example, if children 
can correctly identify letters of the alphabet before they 
enter kindergarten, it is more likely they will learn to read 
words in school faster than children who do not possess this 
knowledge. Experimental findings consistently confirm that 
children's knowledge of the alphabet is a ``strong predictor'' 
of their later progress in learning to read words accurately, 
quickly and automatically. Professional development and 
instructional activities should include an understanding of 
semiotic concepts, a term to describe the general theory of 
signs and symbols that represent written language, comprised of 
syntactics, semantics and pragmatics.
    One of the optional uses of funds, section 1222(e)(2) in 
the Early Reading First initiative, is to provide access to 
scientific, research-based screening tools. One such screening 
tool is the National Center for Learning Disabilities Get Ready 
to Read! early literacy program. This allows teachers to screen 
four-year-olds to determine their familiarity with pre-reading 
concepts and provide parents, early childhood teachers and 
caregivers with research-based information about how to build 
young children's pre-reading skills.

William F. Goodling Even Start Family Literacy Programs

    The Even Start Program has been transferred and re-
designated under Title I, Part B, subpart 3. H.R. 1 extends and 
modifies the Even Start Family Literacy Programs until 2006 to 
reflect the ESEA authorization cycle. During the 106th Congress 
the Literacy Involves Families Together Act was enacted into 
law. Family literacy maintains its place as an important tool 
for educators and parents to utilize in ensuring children and 
families are able to read. The National Center for Family 
Literacy continues to provide quality assistance to school 
districts requesting such services.

Inexpensive Book Distribution Program

    The Inexpensive Book Distribution Program is operated under 
a single, noncompetitive award to Reading is Fundamental, Inc. 
(RIF). It supports, through subcontracts, local private 
nonprofit groups or organizations, or public agencies that 
distribute inexpensive books to children with the objective of 
motivating children to read. Federal funds pay for up to 75 
percent of the cost of books, except that the federal share for 
programs serving children of migrant and seasonal farm workers 
is 100 percent. Contractors are to give priority to programs 
that serve a substantial number or percent of children with 
special needs, such as children with disabilities, low-income 
children, and children at risk of school failure.
    The Committee has made several minor changes to the 
Inexpensive Book Distribution Program to improve its ability to 
operate in low-income and rural communities where it is often 
difficult to obtain local support.
    The first change to the program would allow subcontractors 
operating programs in low-income communities to use other 
federal dollars in order to meet the non-federal share of the 
cost of the program. However, federal dollars could not be used 
for more than 50 percent of the non-federal share used to meet 
the cost of acquiring and distributing books. The Committee 
believes it is important that local communities demonstrate 
their support of the Inexpensive Book Distribution Program by 
paying a portion of the cost of the program. The Committee 
acknowledges there may be instances where local communities 
support the Inexpensive Book Distribution Program, but have 
limited resources. In such instances this legislation would 
permit Reading is Fundamental (the federal grantee) to waive, 
in whole or in part, the cost sharing requirement for a local 
program if the subcontractor demonstrates that it would not 
otherwise be able to participate in the program.
    In addition, the Committee understands that there are 
instances where local private nonprofit groups or organizations 
operating local programs have difficulty in obtaining local 
financial support for the Inexpensive Book Distribution 
Program. This generally happens because there is only a small 
amount of funding available for a limited period of time. The 
Committee bill allows Reading is Fundamental to enter into 
multi-year subcontracts with small local sub-grantees in order 
to provide them with additional leverage in seeking local 
commitments. This legislation would not permit such agreements 
in instances where it would undermine the finances of the 
national program. It is the hope of the Committee that this 
provision will help ensure the operation of the Inexpensive 
Book Distribution Program in small, rural communities or other 
communities that have difficulty obtaining support for the 
program.

            TITLE I, PART C--EDUCATION OF MIGRATORY CHILDREN

    Title I, Part C, of the ESEA, program for the children of 
migrant workers, was created to assist migrant children in 
overcoming problems associated with multiple moves which 
interrupted their education and prevented them from performing 
well in school. The program serves migrant children ages 3-21, 
as well as emancipated youth and formerly migrant children. 
Most migrant programs are administered by local educational 
agencies (LEAs) and operate during the summer months as well as 
the regular school year.
    The children of migrant workers are some of the most 
vulnerable children in schools throughout the United States. 
Migrant children at greatest risk are those whose education is 
interrupted as they follow their parents along the migrant 
stream. According to the Department of Education, for 1996-97 
States reported approximately 580,000 Migrant Education Program 
participants, including 475,000 served during the regular 
school year and 285,000 served in the summer program.
    H.R. 1 extends the Title I, Part C, program serving the 
needs of migrant children and makes modest changes directed at 
improving services to this at-risk population. The dropout rate 
for migrant students is very high. The additional academic 
assistance they receive under this Act is often the determining 
factor in whether or not they stay in school and graduate.
    Of key interest to the Committee has been the ability of 
States to rapidly transfer student records in the absence of 
the costly Migrant Student Records Transfer System (MSRTS). 
MSRTS was eliminated in 1994 as a part of the Improving 
America's Schools Act because it was found to be ineffective in 
completing its primary responsibility of transferring student 
records. Changes to this Act during the 103rd Congress directed 
the Secretary to pursue alternative strategies for the 
effective and efficient transfer of student records. Report 
language also encouraged States to develop agreements on 
transferring credits from one school to another. In the absence 
of MSRTS, the Department of Education found that most States 
and school districts have relied on mail, telephone and fax to 
transfer records for migrant students. Although 19 States have 
some type of electronic system in place, many of these systems 
are used for maintaining, rather than transferring, student 
records.
    The Committee believes the transfer of student records is 
key to the ability of schools to adequately serve the 
educational needs of migrant students. If basic, essential 
information regarding a child's grades, test scores, and 
vaccination records are not transferred in an efficient manner, 
a child may be subjected to additional vaccinations and be 
incorrectly placed in a classroom above or below their actual 
academic abilities.
    As such, the Committee has modified the Title I, Part C, 
Migrant Education Program to require the Secretary to assist 
States in developing effective methods for the transfer of 
student records and in determining the number of migratory 
children in each State. The Secretary is also required to work 
with States in order to determine the minimum data elements for 
records to be maintained and transferred when funds under this 
part are used for record transfer. TheSecretary is further 
required to assist States in linking their records systems for the 
purpose of electronic maintenance and transfer.
    In addition, the Committee has included language in H.R. 1 
to require a local educational agency receiving assistance 
under this Part to make student records available at no cost to 
another local educational agency requesting such records in 
order to meet the needs of a migratory child. The Committee 
wants to make it very clear that the timely transfer of student 
records is an important element of the Migrant Education 
Program. It expects States and local educational agencies to 
work together to ensure that student records are transferred as 
quickly as possible through the most effective possible means. 
It would further encourage States and local educational 
agencies to develop effective means of electronically 
transferring student records. The Committee believes that an 
additional focus on the electronic transfer of student records 
is vitally important to ensure that migrant children have 
access to a high quality education.
    The Committee has also adopted language for simplifying the 
formula for distributing funds to the States. Under current 
law, counts of migrant students are based on estimates and 
full-time equivalents (FTES) of these children. Current law 
requires either a burdensome collection of data or the 
continued use of increasingly dated FTE adjustment factors 
based on 1994 data. Under H.R. 1, a State's child count would 
be based on the number of eligible children, aged 3 through 21, 
residing in the State during the previous year, plus the number 
of children who received services in summer or intersession 
programs provided by the State. This approach is easier to 
understand and administer, minimizes the data-collection burden 
on the States, and encourages the identification and 
recruitment of eligible children. Only funding appropriated for 
this program over and above the amount appropriated for fiscal 
year 2001 will be distributed based on the new formula.
    The Committee has also modified the Title I, Part C, 
program for migrant children to eliminate the requirement that 
States develop both a comprehensive service delivery plan and a 
program application. Key elements of the plan have been 
incorporated into the application requirements. This 
streamlining should reduce the paperwork burden on the States. 
The bill also provides States with greater flexibility in 
determining the activities to be provided with funds under this 
Part as long as they are first used to meet the identified 
educational needs of migratory children. Over the years since 
the enactment of the Migrant Education Program, the number of 
migrant students graduating from high school has increased 
dramatically. However, these graduation rates still lag 
significantly behind that of the general population. The 
Committee believes these changes will allow States and local 
schools to better meet the needs of this population and insure 
they receive the best possible education.

            TITLE I, PART D--NEGLECTED AND DELINQUENT YOUTH

    The Title I, Part D, program provides formula grants to 
States for neglected and delinquent children being educated in 
State agency programs. These programs serve neglected and 
delinquent children and youth in institutions or community day 
programs, as well as those who are in adult correctional 
facilities. Funds are allocated to States on a formula based 
primarily on the number of children and youth in their State 
agency program who are enrolled in a regular program of 
instruction operated by the agency for at least 20 hours a week 
for children and youth, or 15 hours a week if the participant 
is in an adult correctional facility. There is also a Subpart 2 
program for local educational agencies (LEAs), funded with 
allocations from the Title I, Part A, program for districts 
with high numbers or percentages of children in locally 
operated correction facilities. Funds are provided to LEAs for 
meeting the educational needs of youth returning from 
correctional facilities, and for meeting the unique educational 
needs of students at risk of dropping out.
    The Committee believes that far too many youth who spend 
time in correctional facilities do not graduate from high 
school. According to the Department of Education, one-third of 
16 and 17 year olds do not return to school after their release 
from a correctional facility, and one-third of the enrolled 16 
and 17 year olds dropped out within 10 months. It is the view 
of the Committee that many of these students would stay in 
school and graduate if they received quality educational 
support during their incarceration and assistance in 
transitioning back into the school environment.
    To address these concerns, the Committee has made several 
changes to Subpart 1 and Subpart 2 of current law. 
Specifically, in Subpart 1, the Committee has increased from 10 
percent to 15 percent the reservation of funding for each State 
agency to support projects that facilitate the transition of 
children from State-operated institutions to local educational 
agencies. The Committee believes that transition assistance 
plays a key role in determining whether or not delinquent youth 
will succeed in school and graduate.
    During the last reauthorization, a new Subpart 2 was added 
to Part D to address the academic needs of youth in local 
correctional facilities. Its creation was based on evidence 
that children in local correctional facilities who were counted 
for the purpose of generating funds in Title I, Part A, were in 
most instances not receiving services from Title I. Programs 
operated under this new Subpart are to address the academic 
needs of such youth while they are incarcerated and upon return 
to their local school. The portion of the program operated in 
local schools is intended to provide support to delinquent 
youth that are transitioning back into the regular school 
setting and to provide assistance to other youth at risk of 
dropping out.
    Concerns have been raised that the school portion of the 
Subpart 2 program has more often than not become a dropout 
prevention program that does not focus on assisting youth 
returning from correctional facilities. The Committee believes 
that other at-risk youth would benefit from the types of 
programs operated for delinquent youth under Subpart 2. 
However, it is the view of the Committee that programs under 
this Subpart should serve at-risk youth secondarily to serving 
youth returning from correctional facilities. As such, the 
language in Subpart 2 has been revised to focus on the 
provision of services to youth returning from correctional 
facilities. If participating schools are able to serve other 
at-risk students at the same time, they may do so. The 
Committee has also modified the Subpart 2 program to allow the 
use of funds for several new activities, including curriculum-
based youth entrepreneurship education, peer mediation, and 
mentoring.
    To be successful, it is the view of the Committee that 
curriculum-based youth entrepreneurship education programs must 
include organized academic materials that are sequentially 
based and which have been field tested and based on sound 
educational practices. Additionally, suchprograms must have a 
demonstrated record of empowering disadvantaged youth with math and 
other analytical skills. There is growing evidence that innovative 
organizations and institutions working to instill entrepreneurial 
behavior, through classroom and practical experiences, are highly 
effective in teaching some youth. Through such programs, students learn 
the basic skills required of entrepreneurs and gain a greater 
understanding of the relationship between academic subjects and the 
business world.
    In addition, mentoring programs have proven to be highly 
effective in assisting at risk and delinquent children to 
overcome academic and other problems by providing them with a 
strong adult role model. The Committee believes mentors, 
including senior volunteers, are highly effective in helping 
these youth.
    Delinquent youth are a high-risk population and the 
Committee believes they can turn to further involvement in 
criminal activities if they are not provided the support they 
need to stay in school and turn their lives around. The purpose 
of Subpart 2 is to insure they receive the assistance they need 
to graduate and lead productive lives.

            TITLE I, PART E--EVALUATIONS AND DEMONSTRATIONS

Section 1501--Evaluations

    Section 1501 authorizes the Secretary to conduct 
evaluations and assessments, collect data, and carry out other 
activities that support the Title I programs and provide 
information useful to those who would support the activities 
that are essential for the Title I programs.
    H.R. 1 amends current law to ensure that the assessments 
and evaluations of programs funded under Title I look at the 
role of public school choice programs, comprehensive school 
models, and schoolwide programs in improving the academic 
achievement of students in Title I schools.
    It is the Committee's view that the Secretary will continue 
the Department of Education's work already started on the Title 
I assessment and evaluation to the extent that it meets the 
requirements of this part. It is not the Committee's intent 
that the Secretary discontinue all of the department's current 
efforts. However, these efforts should be modified as necessary 
to comply with this part, and to follow the recommendations of 
the U.S. General Accounting Office (GAO) report on the 
longitudinal evaluation to ensure that future reports are of a 
high quality and useful for improving the Title I program.
    GAO examined the Longitudinal Evaluation of School Change 
and Progress (LESCP) and found that it had limitations that 
will restrict researchers' ability to draw strong conclusions 
from the data, especially regarding Title I or standards based 
reform. It is the Committee's view that future evaluations 
should ensure that their purposes are clear and that whenever 
possible, produce findings that can be generalized to Title I 
schools taken as a whole. The GAO study found that because the 
LESCP used a smaller, non-representative sample, it suffered 
from design limitations that would ``restrict its ability to 
fully satisfy any of the three potential purposes . . . 
envisioned by [the Department of] Education, contractors and 
panel members.''
    It is the Committee's view that the Secretary should ensure 
that the Independent Review Panel is composed of individuals 
with knowledge of Title I and other ESEA programs. However, in 
order to ensure that Title I evaluations meet the highest 
standards of methodological rigor, in Subsection (d) of Part F, 
a simple majority of individuals on the panel should represent 
fields other than education. It is also the Committee's view 
that while the panel should include practitioners, as the 
purpose of the panel is technical in nature, such individuals 
should be limited to no more than one third of the panel.
    The final evaluations should be submitted to outside 
reviewers, as required under subsection (d)(3), so that 
Congress and taxpayers will have an independent source of 
information as to the quality of the evaluations conducted by 
the Secretary.

Section 1502--Demonstrations of Innovative Practices

    It is the Committee's view that the Secretary should have 
the ability to demonstrate innovative educational practices. 
H.R. 1 streamlines language in current law and eliminates 
references to programs and practices that have been repealed.

Section 1503--Ellender-Close Up Fellowship Program

    This program, administered by the private non-profit Close 
Up Foundation, provides financial aid to enable low income 
students, their teachers, recent immigrants, and children of 
migrant parents to come to Washington, DC, to study the 
operations of the three branches of government. Activities 
include attending seminars on government and current events, 
and meeting with government leaders. H.R. 1 changes the name of 
the Allen J. Ellender Fellowship Program to the Ellender-Close 
Up Fellowship Program to better reflect the role of the Close 
Up Foundation in the program.
    The Close Up Foundation is the nation's largest non-profit 
(501(c)(3)), non-partisan citizenship education organization. 
Since its founding in 1970, Close Up has worked to promote 
responsible and informed participation in the democratic 
process through a variety of educational programs. Close Up's 
mission is built on the belief that textbooks and lectures 
alone are not enough to help students understand the democratic 
process and make it work. Students need a ``close up'' 
experience in government. Close Up's national, State, and local 
government studies programs strengthen participants' knowledge 
of how the political process works, increases their awareness 
of major national and international issues, and motivates them 
to become actively involved in the world around them. Each 
year, more than 25,000 students, teachers, and other adults 
take part in Close Up's programs in Washington, D.C. Since the 
inception of its Washington-based programs in 1971, the Close 
Up Foundation has welcomed more than 500,000 students, 
educators, and other adults to the nation's capital.

Section 1504--Dropout Reporting

    An amendment offered by Mr. Scott (D-VA) was adopted in 
Committee by a vote of 26-22, that creates a new Section 1504 
of Part E. This section requires State educational agencies 
receiving funds under Title I to report to the National Center 
of Education Statistics (NCES) on thedropout rate of students 
in the State as defined in NCES's annual survey known as the Common 
Core of Data.

              TITLE I, PART F--COMPREHENSIVE SCHOOL REFORM

    The Comprehensive School Reform program (CSR) was first 
funded in FY 1998 as part of the Departments of Labor, Health 
and Human Services, and Education Appropriations Act (P.L. 105-
78). The language in the appropriations bill in 1998 did not 
specifically amend Title I of the Elementary and Secondary 
Education Act. Rather the program was included in narrative, 
paragraph-style text in the conference report of the 
appropriations legislation. In H.R. 1 the Committee has 
incorporated the policy from that legislation into a 
categorical grant program included in the statutory text of 
Title I, Part F. The Committee has created a new part of Title 
I for this program because in general, federal education 
programs should not be funded apart from authorizing language 
to ensure that federal dollars are used effectively.
    In order to improve the quality of the entire school, CSR 
provides financial incentives for schools to develop a plan to 
implement comprehensive reforms based upon reliable research 
and effective practices. These reforms emphasize core academic 
subjects and parental involvement, and are called 
``comprehensive'' because they are intended to affect all 
aspects of school operations, including curriculum and 
instruction, school organization, professional development and 
resource use, instead of improving certain school functions 
independently of others. The intent is to provide schools with 
another means by which they may ensure that all children in a 
school meet State academic achievement standards.
    The Committee is aware that schools throughout the country 
are implementing a number of preexisting comprehensive reform 
models. While no one model fits all school situations, schools 
are encouraged to consider the positive aspects of existing 
design models with a proven track record or new approaches 
grounded in scientific research and effective practices. The 
Committee is aware that some States have attempted to limit 
schools to certain comprehensive school reform models or 
approaches. States should allow schools to select any model 
that is based on scientific research and effective practices 
and otherwise meets the requirements of this part.
    Nearly 6,000 schools, serving more than two million 
students, have in recent years adopted and begun to implement 
``research-based'' comprehensive reforms intended to improve 
student achievement. As this trend has continued to grow, so 
too has the demand by local educators to gain a better 
understanding of which programs are most suited to their unique 
circumstances and needs. To better enable schools to implement 
``research-based'' comprehensive reforms, H.R. 1 authorizes the 
Secretary to reserve two percent of funds made available under 
this part to support initiatives that accomplish this goal. One 
such entity is the Education Quality Institute (EQI). The goal 
of EQI, an independent, non-profit organization, is to assist 
local schools in these efforts by providing the support and 
tools necessary to critically evaluate, adopt, and implement 
research-based programs more effectively. To accomplish this, 
the EQI is developing a process that ``raises the bar'' for 
independently reviewing the existing evidence based on 
educational programs claiming to be research-based or research-
proven. EQI will widely disseminate these findings along with 
descriptive information on programs and decision making tools 
leading to the selection and implementation of more effective 
school improvement. In addition, EQI will offer technical 
assistance to State education officials, district- and school-
based administrators, school staff, and others so that they can 
more effectively conduct needs assessments, identify potential 
solutions, and evaluate the quality of evidence provided to 
them by program developers.
    The Committee has also made changes to the State 
application requirements in subsection (c) to require States to 
ensure that schools are selecting comprehensive school 
providers that have the capacity to provide high quality 
technical assistance over the three-year reform period. This 
change refines CSR to ensure the quality of these reform 
efforts while maintaining the ability of schools to choose from 
a broad and growing number of providers.
    It is the Committee's view that it is no longer necessary 
to prioritize CSR funds for local educational agencies that 
plan to use the funds in schools in need of improvement, 
corrective action, or restructuring under Section 1116. Many 
high-poverty Title I schools can benefit from CSR before they 
are identified for improvement. Therefore States may give 
priority either to local educational agencies that are in need 
of improvement, or to local educational agencies that 
demonstrate a commitment to assist schools to ensure that 
programs are well implemented and sustained.
    The Committee clarified that local educational agencies 
that apply for grants should ensure that schools implement 
models grounded in scientifically based research and effective 
practices. Additionally, the Committee added language that 
requires schools to implement models that have a strong 
evidentiary basis for significantly improving academic 
achievement. Specifically, the components of effective 
schoolwide reform are as follows: (1) utilization of innovative 
strategies and proven methods of learning, teaching and school 
management that are based on scientifically based research and 
effective practices; (2) integration of a comprehensive design 
for effective school functioning; (3) provision of high quality 
and continuous professional development; (4) inclusion of 
measurable goals for student performance and benchmarks for 
meeting such goals; (5) support by teachers, administrators and 
other professional staff; (6) provision for the meaningful 
involvement of parents; (7) use of high quality external 
technical support; (8) inclusion of a plan for the evaluation 
of the implementation of school reforms and student results 
achieved; (9) identification of how other resources will be 
used to coordinate services to support and sustain the school 
reform effort; and (10) a demonstration of how the 
comprehensive reform model has been found, through rigorous 
field experiments, to improve academic performance or that the 
model to be used otherwise has a strong evidentiary basis for 
significantly improving academic performance.

                    TITLE I, PART G--RURAL EDUCATION

    Each year, many rural school districts forgo federal 
funding because they lack the enrollment, financial resources, 
and poverty data needed to compete against larger school 
districts for federal education programs. Rural school 
districts find it particularly difficult to fully benefit from 
federal funds because the unique needs of rural school 
districts are not addressed in federal formula programs. 
Generally, current federal education formulas do not adequately 
address the needs of small, rural school districts because the 
formulas do not allow sufficient revenue tosubstantially 
support education reform efforts designed to improve academic 
achievement. These school districts lie in remote areas distant from 
commercial centers, making it particularly difficult for teachers and 
administrators to utilize consortia, pooled resources, and technical 
assistance. Rural school districts also have unique technology and 
communications infrastructure challenges due to their remote locations. 
In addition, rural school districts cannot adequately compete for 
federal grants since they lack resources and do not have access to 
specialists in federal grant writing as do larger school districts. 
H.R. 1 provides rural school districts with increased flexibility and 
funding to enhance academic achievement and addresses the unique needs 
of those districts that cannot compete for federal education grants 
because they do not have adequate resources.
    Title I, Part G of the No Child Left Behind Act of 2001, a 
combination of H.R. 692, the Rural Education Initiative 
Amendments Act of 2001, introduced by Rep. Tom Osborne (R-NE) 
and H.R. 1148, the Low-Income and Rural School Program, 
introduced by Rep. Van Hilleary (R-TN), addresses the unique 
problems associated with the education of students in rural 
school districts. Specifically, this program addresses the 
different needs of: (1) small, rural school districts; and (2) 
low-income, rural school districts. Under Subpart 1, eligible 
LEAs would be able to combine funding under various formula 
grant programs to support local or Statewide education reform 
efforts intended to improve the academic achievement of 
elementary and secondary school students and the quality of 
instruction provided for these students. Under Subpart 2, 
eligible LEAs could use funds for such things as: educational 
technology; professional development; technical assistance; and 
teacher recruitment and retention. This program is authorized 
at $300 million for fiscal year 2002 and such sums as may be 
necessary for each of fiscal years 2003 through 2006 to be 
equally distributed between Subparts 1 and 2.

             TITLE I, PART H--GENERAL PROVISIONS OF TITLE I

    The general provisions of Title I relate to all parts of 
Title I.
    Under section 1801 of Part H of Title I, the Secretary is 
authorized to issue such regulations as are necessary to ensure 
reasonable compliance with Title I, and is authorized to 
establish a negotiated rulemaking process on a minimum of three 
key issues: (1) accountability; (2) implementation of 
assessments; and (3) use of paraprofessionals. The authority to 
issue regulations is a continuation of authority in current 
law, the authority is a slight modification of current law 
which had allowed for negotiated rulemaking on schoolwide 
programs and standards and assessments. Negotiated rulemaking 
gives interested parties an opportunity to be involved in 
negotiations and discussions on the text of regulations issued 
by the Department of Education.
    In addition, the Committee has continued the authority for 
each State to have a Committee of Practitioners to advise the 
State in carrying out its responsibilities under Title I.
    Provisions in current law, section 1603(c), relating to a 1 
percent set-aside for State administrative expenses have been 
transferred to section 1002 of Title I, Part A.
    With respect to local administrative expenses, the 
Committee has included a new provision which limits local 
educational agency administrative expenses to no more that four 
percent of the funds they receive under Title I, Part A, 
thereby ensuring that at least 96 percent of the school 
district's Title I, Part A funds are used for classroom 
activities or related services.
    The Committee has made it absolutely clear that nothing in 
this Act affects home schools. In addition, the Committee made 
changes to ensure that private schools that do not receive ESEA 
funds are not affected either. H.R. 1 includes three rules of 
construction relating to home schools, private schools, and the 
privacy of assessment results. First, home schools and students 
who are home schooled do not receive any funds or services 
under the Elementary and Secondary Education Act. Accordingly, 
to be clear about the non-applicability of ESEA to home 
schools, the Committee has included language in section 1805 
which clarifies that nothing in Title I is intended to affect 
home schools, nor are home schooled students required to take 
any of the assessments referenced in Title I. Similarly, 
nothing in Title I is intended to affect private schools that 
do not receive ESEA funds or services under Title I, nor are 
students at private schools that do not receive funds or 
services required to participate in any assessments in Title I. 
Similar provisions to each of these latter two rules of 
construction are also included in the General Provisions of 
Title VIII.
    With respect to individual assessments, students and their 
parents will have the protections provided in section 444 of 
the General Education Provisions Act for test results that 
become part of the education records of the student. While this 
would be the case through the independent application of 
Section 444 apart from mentioning it in H.R. 1, the Committee 
has chosen to give emphasis to the protections through a cross 
reference. Under section 444 of the General Education 
Provisions Act, a student's education records may not be 
disclosed to third parties unless parental consent is given.

     TITLE II, PART A--TEACHER QUALITY TRAINING AND RECRUITING FUND

    Title II of the No Child Left Behind Act of 2001 is based 
upon three principles: teacher excellence, smaller classes, and 
local choices. It will provide a major boost to schools in 
their efforts to establish and support a high quality teaching 
force. The No Child Left Behind Act of 2001 consolidates and 
streamlines the Eisenhower Professional Development program and 
the Class Size Reduction program into a single program to 
provide States and local schools additional flexibility in the 
use of these funds, in exchange for increased accountability by 
demonstrating that student achievement is increasing. Using 
these funds, local officials will have the support and 
flexibility necessary to improve academic achievement through 
such initiatives as providing high quality training for 
teachers and reducing class size.
    The Committee notes that efforts to improve academic 
achievement take many forms. There is no single solution or 
program to accomplish this. Indeed, for every school there are 
different approaches that are appropriate to their particular 
circumstances. H.R. 1 reflects this reality and provides the 
flexibility to local school districts in how these funds may be 
directed. However, the No Child Left Behind Act of 2001 
encourages schools to focus upon efforts, such as improving 
teacher quality and class size reduction, that have been 
scientifically proven to lead to academic success, while not 
imposing any one-size-fits-all approach dictated from 
Washington upon schools on how to carry out such efforts.

Teacher Quality

    The importance of teacher quality was consistently 
highlighted by the many witnesses testifying before the 
Committee on Education and the Workforce during the 106th 
Congress. It was made clear that teacher quality, above all 
other factors within schools, is the most important determinate 
of student academic achievement. Dr. Sandra Horn, University of 
Tennessee, Value Added Research and Assessment Center in 
Knoxville, Tennessee, provided one such example. In her 
remarks, she stated:
    ``In the past few years, the team at the University of 
Tennessee Value-Added Research and Assessment Center (UT-VARAC) 
has examined the effects of class size, class heterogeneity, 
past achievement levels of students, building change, and 
several other factors on the academic growth of students. 
Although several of the factors studied affect student gains to 
some degree, in every case, the effect of the teacher has been 
found to be far and away the most important determinant of 
student academic growth. Effects of ineffective teachers are 
cumulative and very large and can be seen years after a student 
moves on to other teachers. There is no evidence that effective 
teachers can ever rectify the retardation of academic growth 
that occurred under a previous poor teacher. And there is 
evidence that teacher assignment patterns may indeed be 
perpetuating and sustaining the achievement gap between white 
students and minority students.''
    The impact of quality teachers was also highlighted in a 
report issued by The Education Trust, entitled, ``Good Teaching 
Matters--How Well-Qualified Teachers Can Close the Gap.'' Among 
the findings highlighted in the report were those from a large-
scale study in Texas conducted by Ronald Ferguson of Harvard 
University. His study ``found that teacher quality--as measured 
by education, experience, and test scores on initial teacher 
licensing exams--has more impact on student achievement 
(explained some 43 percent of the variance) than any other 
single factor, including family income and parent education.''
    Based on the same work outlined by Dr. Horn, the Education 
Trust report also noted that Dr. William Sanders of the 
University of Tennessee found that ``students who scored at 
roughly the same level on mathematics tests in third grade were 
separated by differences of as much as 50 percentage points on 
sixth grade tests depending on the quality of the teachers to 
whom they were assigned. Scoring differences of this magnitude 
can represent the difference between placement in the 
`remedial' and `accelerated' tracks.''
    Last year, a consortium of research groups, including the 
Rand Corporation, released a study, entitled, ``Class Size 
Reduction in California: The 1998-99 Evaluation Findings,'' 
that reviewed California's multi-billion dollar class size 
reduction program. The researchers found slight academic gains 
from the program, but at a very high cost in terms of 
compromising teacher quality. Specifically, while 98.2 percent 
of K-3 teachers in schools evaluated were `fully credentialed 
teachers' in 1995, this percentage plummeted to just 86.6 
percent by 1999. The report also found that during the same 
period, 4th and 5th grade teachers with full credentials 
dropped from 98.7 percent to 85.6 percent. Even in the upper 
grades, the percentage of qualified teachers dropped from 
around 98 percent to just over 90 percent. The impact of 
declining teacher quality was found to be the greatest in low-
income schools, where the percentage of qualified teachers 
dropped from 97 percent to 78 percent.
    The Committee notes that under H.R. 1, local officials have 
significant flexibility in determining the best approaches to 
improving teacher quality and improving student academic 
achievement. Accordingly, the Committee recognizes that 
reducing class size can also be an effective tool for school 
reform, if implemented properly. Rigorous, peer reviewed 
scientific research, especially Tennessee's longitudinal STAR 
(Student-Teacher Achievement Ratio) study and Wisconsin's SAGE 
(Student Achievement Guarantee in Education) program, has shown 
reduced class sizes with qualified teachers to be effective in 
substantially raising student achievement, particularly for 
poor and minority students. These gains have been observed 
primarily in the early grades. Furthermore, follow-up research 
of the STAR study has shown class-size reduction to have a 
lasting effect well into high school, resulting in higher 
academic performance, higher graduation rates, and a greater 
likelihood that students will take steps to prepare for 
college.
    Even in California, where implementation problems clearly 
weakened the benefits of class-size reduction by lowering the 
teacher quality in the State, the evaluation found that 
students overall showed slight, but significant, academic gains 
two years in a row, and these gains were found to persist after 
the students returned to larger classes.
    Given the clear importance of teacher quality, it is 
crucial that initiatives at the federal, State, and local 
levels help produce high quality teachers. Many other factors 
need to be examined in an effort to impact and improve teacher 
quality. A large percentage of the 2.8 million public school 
teachers currently in the classroom will be there for many 
years to come. Therefore, we cannot ignore the need to ensure 
that existing teachers have the skills and knowledge necessary 
to provide opportunities for every child to succeed 
academically. H.R. 1 recognizes this fact and promotes 
activities at the federal, State, and local levels to address 
quality ranging from the hiring and recruiting of new teachers 
to efforts to help teachers once they enter the classroom.

Authorized State Activities

    Under H.R. 1, States are authorized to retain up to five 
percent of funds for State activities. Among other things, 
authorized State activities include: Reforming teacher 
certification, recertification, or licensure requirements; 
expanding, establishing, or improving alternative routes to 
State certification for teachers; carrying out programs that 
include support during the initial teaching and leadership 
experience, such as mentoring programs; assisting local 
educational agencies and schools in effectively recruiting and 
retaining highly qualified and effective teachers and 
principals; reforming tenure systems; developing professional 
development programs for principals; and developing teacher 
advancement initiatives that emphasize multiple career paths 
and pay differentiation.
    States like Texas have already made great progress in 
implementing reforms related to teacher preparation programs 
and certification. Dr. Pamela Tackett, Executive Director of 
the Texas State Board for Educator Certification, testified 
before the Committee on Education and the Workforce during the 
106th Congress and provided an overview of their efforts. 
Recognizing that Texas faced over 43,000 vacant teacher 
positions, and an attrition rate among teachers of 
approximately 32 percent after three years, Texas is pursuing 
an effort to support new teachers with mentors and on-going 
training. These efforts are based on model induction programs 
inseveral Texas schools which resulted in a 95 percent 
retention rate among beginning teachers after three years. However, 
despite the need for Texas to find more teachers, they are not lowering 
their standards in order to increase the number of teachers. In fact, 
Texas is one of the few States that has implemented tough standards for 
teacher preparation programs. In order to be certified, these 
institutions are held accountable for the performance of their teacher 
candidates in taking the State's certification examinations. These 
examinations are also being strengthened to ensure teacher candidates 
are able to demonstrate specific knowledge and skills in the subjects 
in which they plan to teach.

Math and Science Partnerships

    Although the No Child Left Behind Act of 2001 consolidates 
funds from the Eisenhower Professional Development program into 
a larger grant to States and localities, it maintains some of 
the best aspects of this program. One example is the emphasis 
that H.R. 1 places on math and science activities funded 
through partnerships which include State educational agencies, 
institutions of higher education and high need local 
educational agencies.
    The purpose of the math and science partnerships program is 
to improve the achievement of students in the areas of 
mathematics and science. Activities that can be undertaken 
include encouraging States, institutions of higher education, 
and local educational agencies to participate in programs that 
focus on education and training of mathematics and science 
teachers; encouraging institutions of higher education to 
assume greater responsibility for improving mathematics and 
science teacher education; and bringing mathematics and science 
teachers together with scientists, mathematicians, and 
engineers to expand content knowledge and research in science 
and mathematics.
    The Committee notes the findings from the ``National 
Evaluation of the Eisenhower Professional Development 
Program,'' conducted by the American Institutes of Research. 
The evaluation found professional development sponsored through 
institutions of higher education to be more effective than 
district-sponsored activities. The study noted that these 
programs ``are more likely to focus on content, to provide more 
opportunities for active learning, to be more connected to 
teachers' other experiences, and to involve a greater number of 
hours, and to occur over a longer time span.''
    Under H.R. 1, States, working in conjunction with State 
agencies for higher education, must award at least 15 percent, 
but not more than 20 percent, of the funds (at the discretion 
of the State) on a competitive basis to eligible partnerships 
for math and science programs. Required participants of the 
eligible partnerships must include at least: (1) a State 
educational agency; (2) a mathematics or science department of 
a private independent or State-supported public institution of 
higher education; and (3) a high need local educational agency. 
In addition, partnerships may include: (1) another institution 
of higher education or the teacher training department of such 
institution; (2) additional local educational agencies, public 
charter schools, elementary or secondary schools; (3) a 
business; or (4) a nonprofit organization of demonstrated 
effectiveness including a museum or research institution.
    The Committee notes that science education ought to reflect 
the scientific process and be object-oriented, experiment 
centered, concept-based; and should involve students in 
scientific inquiry and analysis. Students should learn the 
basic theories and operations of mathematics, as well as 
develop the understanding that numeric systems have intrinsic 
properties that can represent objects and systems in real life 
and that the basic principles of mathematics can be applied in 
solving real world problems. Mathematics and science education 
can and often should include the study of engineering and 
technology. Engineering education, reflecting the realities of 
real world design, should involve hands-on projects and require 
students to understand and make trade-offs based upon evidence. 
Students should learn technology as a tool to solve problems 
and a process by which people adapt the natural world to suit 
their own purposes. Computers represent a particularly useful 
form of technology, enabling students and teachers to acquire 
and tabulate data, model systems, visualize phenomena, 
communicate and organize information, and collaborate with 
others in powerful new ways. A background in the basics of 
information technology is essential for success in the modern 
workplace and the modem world.

Local uses of funds

    Recognizing that the most important decisions in education 
occur at the local level, H.R. 1 provides the majority of its 
funds directly to local educational agencies, and allows 
considerable flexibility in how these funds are used. Local 
educational agency allotments would have to be equal to funding 
received under the Eisenhower Professional Development program 
and the Class Size Reduction program. 80 to 85 percent of the 
funds (at the discretion of the State and based on the amount 
reserved for math and science partnerships) are sent to local 
educational agencies by formula (80 percent based on poverty 
and 20 percent based on population) for local uses of funds. 
Among other things, local uses of funds include: Initiatives to 
assist recruitment of principals and fully qualified teachers; 
initiatives to promote retention of highly qualified teachers 
and principals; programs and activities that are designed to 
improve the quality of the teacher force; teacher opportunity 
payments; professional development activities designed to 
improve the quality of principals, including developing 
leadership academies for principals and superintendents; 
teacher advancement initiatives that emphasize multiple career 
paths and pay differentiation; and hiring fully qualified 
teachers in order to reduce class size.
    Given the flexibility provided under H.R. 1, local 
educational agencies and schools will have the opportunity to 
use these funds for reforms and innovative projects aimed at 
increasing teacher quality and student academic achievement.
    One such area involves alternative certification programs. 
These programs provide opportunities for experienced 
professionals from other fields to enter teaching without 
having to go through the traditional schools of education. Dr. 
C. Emily Feistritzer, President, National Center for Education 
Information, testified before the Committee on Education and 
the Workforce during the 106th Congress on the benefits of 
these programs and key characteristics of the best programs. 
Specifically, she noted the successful efforts in New Jersey, 
Texas, and California, where alternative route programs have 
had a significant impact on the recruitment and retention of 
highly qualified individuals for teaching. She noted, ``all 
three of these States report that teachers certified through 
their alternative routes perform as well, and, in some cases, 
better, on certification examinations as their counterparts who 
completed traditional teacher educationprograms.'' Dr. 
Feistritzer also provided the specific characteristics of highly 
effective alternative teacher certification programs. Specifically, she 
noted they have ``a strong academic coursework component; they are 
field-based programs, meaning that individuals get into classrooms 
early in their training; teacher candidates work with a qualified 
mentor teacher; candidates usually go through their program in cohorts, 
not as isolated individuals; most of these programs are collaborative 
efforts among State departments of education, whose responsibility it 
is to license teachers, colleges and universities that historically 
have had the responsibility for educating and training teachers, and 
school districts who actually hire teachers.'' The Committee urges 
States and localities to promote these characteristics in any 
alternative certification program supported with funds under this 
Title.
    H.R. 1 gives local educational agencies the flexibility to 
use funds to help recruit, reward and retain the most qualified 
teachers. The area of recruitment is becoming especially 
important as more and more of the nation's top graduates from 
education institutions never end up in the classroom. Instead, 
they are pursuing other careers, which may offer more 
competitive salaries. Under the No Child Left Behind Act of 
2001, local funds may be used to set up incentive programs to 
enable schools to attract these types of new teachers. The 
ability to implement differential pay programs with ftmds from 
H.R. 1 is important if schools are to find and retain teachers 
in areas such as math and science, where competition from the 
private sector has made it especially difficult for schools to 
hire these individuals.
    Ensuring the best teachers stay in the classroom is also 
important. Increasing retention through mentoring and induction 
programs are just some examples of the types of activities 
schools will have the flexibility to implement under H.R. 1. 
However, if the best teachers are to be justly rewarded, 
schools need to establish systems which effectively recognize 
those teachers having the greatest impact on student academic 
achievement, including those having a firm grasp of the subject 
areas in which they teach. To this end, the No Child Left 
Behind Act of 2001 permits schools to consider approaches such 
as testing teachers and merit-based systems focused on 
rewarding teachers whose students excel.
    Under H.R. 1, teachers will be empowered to play a role in 
the decisions made regarding professional development 
activities provided by local educational agencies. If a State 
determines that professional development programs funded by a 
local educational agency fail to meet requirements for 
professional development activities, the State must notify such 
agency that technical assistance is available to help meet 
those requirements. If the local educational agency fails to 
meet requirements for professional development activities for 
two consecutive years, then such agency must direct these funds 
through Teacher Opportunity Payments (TOPs) directly to the 
teachers themselves. In addition, local educational agencies 
may choose to use all of their professional development funds 
through the TOPs program.
    Teacher Opportunity Payments allow a teacher, or a group of 
teachers (within the school or district), to have the ability 
to have direct access to these funds for use toward a 
professional development program of his or her choice. For 
example, a group of teachers may decide to put their funds 
toward a program at an institution of higher education that has 
proven it can provide exceptional training for the effective 
teaching of State math standards. However, such a program would 
have to meet the quality standards set forth in the 
legislation.
    The TOPs program also recognizes that many schools have 
comprehensive reform plans in place, such as schools that have 
implemented a school-wide program, that are a school-
improvement school working under a school improvement plan, or 
have enacted a Comprehensive School Reform Demonstration 
program. In many of these schools, the actions of all teachers 
may be tied to a particular reform model, such as Success For 
All, and in these schools, individual teacher professional 
development is an important component of the whole school. In 
light of these and other school-based reform efforts, the TOPs 
program requires teachers to regularly consult with their 
principal, both on the activity to be selected, and throughout 
the training, to ensure the TOPs program provides benefits for 
both the teacher individually, and the school as a whole.
    Under the TOPs program, local educational agencies must 
provide notice regarding the availability of funds to all 
teachers within the schools identified by the agency. The 
Committee highlights the provision which will ensure that the 
principals of these schools actively recruit for TOPs, those 
teachers who are either not fully certified in their subject 
areas or who are otherwise in need of assistance to ensure the 
academic success of their students. In the event the local 
educational agency does not have adequate funding to meet the 
demands of all teachers seeking this assistance, the TOPs 
program provides a priority to assist those teachers who need 
such training the most.
    The TOPs program is based upon the belief that teachers are 
often in the best position to determine their particular 
professional development needs. The Committee has learned that 
too often professional development is selected without the 
participation of teachers, and as a result, leads to programs 
that fail to provide the maximum benefit to these teachers. The 
time available to teachers and the resources needed for 
professional development are too limited resulting in 
widespread mediocrity in the quality of programs provided to 
teachers. The TOPs program gives more authority to teachers and 
ensures quality in the professional development programs. The 
Committee also notes the increased accountability given to 
teachers across the country in improving the academic 
achievement of their students. If this is the case, it simply 
makes sense to also provide them with the ability and 
opportunity to attend professional development programs which 
they know will best help them meet this new level of 
accountability.

Professional Development for Teachers

    The relationship between high quality professional 
development and student achievement has been the focus of 
extensive research. Dr. Jane Butler Kahle, Condit Professor of 
Science Education at Miami University in Oxford Ohio, testified 
before a joint hearing with the Committee on Science during the 
106th Congress, and provided an overview of the leading 
research in this area. She noted results from a systemic 
initiative in Ohio, which found that teachers participating in 
sustained professional development, when compared to those who 
had not, had students with higher test scores. For example, she 
noted, ``African-American girls in classes of teachers with 
sustained professional development scored nine percent higher 
on the science achievement test than did their peers in 
classrooms of teachers who had not participated.''
    While some professional development can lead to higher 
student achievement, it is clear that not all professional 
development leads to such results. Dr. Kahle also noted the 
work of Dr. D.H. Monk, which concluded that ``additional 
coursework in specific areas (e.g., the number and kinds of 
science and mathematics courses) has a positive effect on 
student learning, while additional coursework by teachers in 
unrelated subjects has no, or a negative, effect on student 
learning.'' Dr. Kahle concluded that ``short-term, finite 
programs usually do not result in improved content knowledge 
for teachers, or changed teaching practice, or enhanced student 
learning.''
    The No Child Left Behind Act of 2001 builds upon research 
that has been proven to have the common characteristics of 
effective professional development. Specifically, under Title 
II, professional development must: (1) ensure that all teachers 
teaching within the State are fully qualified not later than 
December 31, 2005; (2) support professional development 
activities that 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; (3) 
support the recruiting, hiring, and training of fully qualified 
teachers, including teachers fully qualified through State and 
local alternative routes; (4) advance teacher understanding of 
effective instructional strategies based on scientifically 
based research for improving student achievement; (5) be 
directly related to the curriculum and content areas in which 
the teacher provides instruction; (6) be designed to enhance 
the ability of a teacher to understand and use the State's 
standards for subject areas in which the teacher provides 
instruction; (7) be tied to scientifically based research 
demonstrating the effectiveness of such professional 
development activities or programs in increasing student 
achievement; (8) be of sufficient intensity and duration (not 
to include 1-day or short term workshops and conferences) to 
have a positive and lasting impact; (9) be developed with 
extensive participation of teachers, principals, parents, and 
administrators; (10) be designed to give teachers of limited 
English proficient children the knowledge and skills to provide 
instruction and appropriate language and academic support 
services to such children; (11) to the extent appropriate, 
provide training for teachers and principals in the use of 
technology; and (12) be regularly evaluated for their impact on 
increased teacher effectiveness and improved student 
achievement.
    With respect to the requirement that the activity ``be of 
sufficient intensity and duration (not to include 1-day or 
short term workshops and conferences) to have a positive and 
lasting impact,'' the Committee notes that exceptions may be 
provided if such activity is a component of a long-term 
comprehensive professional development plan established by the 
teachers and the teachers' supervisor based upon an assessment 
of their needs, their students' needs, and the needs of the 
local educational agency. This provision is based upon the 
national Eisenhower evaluation which found that traditional 
types of professional development (such as conferences), are 
less likely to be associated with positive teacher outcomes, 
unless they occur over a long time span and involve a 
significant number of hours. The Committee does not expect such 
exceptions to be the norm, however.
    The 1994 reauthorization of the Eisenhower Professional 
Development Program provided an important push toward 
increasing the accountability of professional development. 
Specifically, it outlined the characteristics of high quality 
professional development and stressed that local schools only 
fund those activities with such characteristics. A report of 
the National Evaluation of the Eisenhower Program found reasons 
to be optimistic, while at the same time highlighted the 
realities of how much more needs to be done in this area. 
Testifying before the Committee on Education and the Workforce 
during the 106th Congress, Dr. Beatrice F. Birman, from the 
American Institutes for Research (AIR), stated the following 
regarding the overall quality of professional development under 
the Eisenhower program: ``While on average, districts may have 
improved some features of their professional development 
activities since the last reauthorization, the national 
evaluation's survey of district Eisenhower coordinators 
indicates that the features of Eisenhower-funded professional 
development activities vary substantially across districts.'' 
She went on to discuss how short-term, one-day workshops are 
still the norm in some districts, and that just over half of 
teachers in district level programs ``reported that 
participation enhanced their knowledge and skills in curriculum 
content.'' This evaluation has assisted the Committee in 
raising the awareness of the need to increase the quality of 
programs assisted with these federal funds. H.R. 1 helps 
promote the improvement of these programs by setting clear 
guidelines and requirements for professional development 
programs.

Troops to Teachers and Transition to Teaching

    Despite the fact that as many as two million new teachers 
may be needed in the next decade, many skilled individuals are 
prevented from entering the teaching profession because they do 
not have the time or resources to get a formal education degree 
or teaching certification. The Troops to Teachers program was 
designed in 1993 as a partial response to this problem, 
facilitating the placement of qualified military personnel in 
classrooms across the country by matching them with school 
districts that need more instructors, and by providing a 
stipend as they undergo training and certification. A 1998 
National Center for Education Statistics study found that more 
than 60 percent of Troops-to-Teachers participants were rated 
by administrators as ``among the best,'' ``well above 
average,'' or ``above average.'' H.R. 1 updates and continues 
the Troops to Teachers program.
    In addition, H.R. 1 reauthorizes the Transition to Teaching 
program. The purpose of this program is to address the need of 
high-need local educational agencies for highly qualified 
teachers based on the model of the successful Troops to 
Teachers program. The Transition to Teaching program aims to 
recruit, prepare, place, and support career-changing 
professionals who have knowledge and experience that will help 
them become high quality teachers. Funds under this program can 
be used for recruiting; training stipends, and other financial 
incentives for program participants; assisting institutions of 
higher education or other providers of teacher training to 
tailor their training to meet the particular needs of 
professionals who are changing their careers to teaching; and 
placement activities for program participants.

               TITLE II, PART B--NATIONAL WRITING PROJECT

    H.R. 1 authorizes the National Writing Project, which 
encompasses a network of 161 sites at universities in 47 
States. The National Writing Project provides intensive 
training to teachers in the area of writing. These teachers 
then return to their schools, where they pass along their 
knowledge to other teachers. The Committee notes the useful 
results of the National Writing Project and the fact that it 
provides a cost-effective mechanism by which to disseminate 
good teacher practices. In fact, the Project has been found to 
raise seven dollars for every federaldollar of support. 
Further, it has been reported to serve over 100,000 teachers every year 
at a cost of just 80 cents per participant hour.

                   TITLE II, PART C--CIVIC EDUCATION

    H.R. 1 authorizes the Education for Democracy Act. 
Specifically, the purposes of this program are (1) to improve 
the quality and student knowledge 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 and 
economic education through cooperative exchange programs with 
emerging democracies throughout the world.
    This program supports the Center for Civic Education and 
its education program that encourages instruction on the 
principles of our Constitutional democracy; the history of the 
Constitution and the Bill of Rights; congressional hearings 
simulations; and annual competitions of simulated congressional 
hearings for secondary school students. It also authorizes the 
National Council on Economic Education to conduct Cooperative 
Education Exchange programs that provide curricula and teacher 
training programs in civics education and economic education, 
developed in the U.S., for educators in emerging democracies.
    The Committee believes that the Center for Civic Education 
has operated these programs effectively and encourages the 
Department to continue to utilize the Center for these and 
other related initiatives.

             TITLE II, PART D--TEACHER LIABILITY PROTECTION

    Research confirms that teachers have a tremendous impact on 
student achievement, particularly for low-income students. Yet, 
in too many cases, teachers are not working in an environment 
conducive to learning. Violence is a threat for some, while 
others lack the authority they need to maintain discipline in 
the classroom.
    Between 1993 and 1997, teachers were victims of 1,771,000 
nonfatal crimes at school, including 1,114,000 thefts and 
657,000 violent crimes. Nearly 65 percent of public school 
teachers charge that discipline is a ``serious'' problem in 
their schools, and about 88 percent think that academic 
achievement would improve ``substantially'' if persistent 
troublemakers were removed from classes.
    The problem of enforcing discipline has been compounded by 
the increasing incidence of lawsuits. In the last two years 
alone, almost one-third of all high school principals reported 
being involved in lawsuits or out-of-court settlements, 
compared with only nine percent ten years ago. And 99 percent 
of principals say their policy on reporting bad behavior has 
been modified because of liability costs and concerns.
    To help teachers enforce discipline and shield them from 
meritless and frivolous lawsuits, H.R. 1 contains language to 
shield teachers, principals, and school board members acting in 
their official capacity from federal liability arising out of 
their efforts to maintain discipline in the classroom, as long 
as they do not engage in reckless or criminal misconduct.

   Title III--Education of Limited English Proficient and Immigrant 
              Children; Indian and Alaska Native Education

    TITLE III, PART A--EDUCATION OF LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT CHILDREN

    Today there are an estimated four million limited English 
proficient children in the United States, with only nine 
percent served under federal Bilingual Education Act programs. 
The majority of these children are located in five States--
California, Texas, New York, Florida, and Illinois. Limited 
English proficient children are present in almost half of the 
nation's school districts (46 percent). Most of these children 
are served in local, State, and other federal programs that 
address, at least in part, their special educational needs. The 
most recent estimate is that States spend at least $690 million 
on limited English proficient children for bilingual education 
and English as a Second Language training. The Elementary and 
Secondary Education Act (ESEA) Title I program for 
educationally disadvantaged students is reported to reach 2.1 
million limited English proficient children (in 1997-1998 LEP 
children made up 17 percent of Title I eligible children).
    The recurring question is how the federal government can 
best help local schools and school districts provide the best 
possible education for these children to ensure they obtain the 
English language and academic skills they need to succeed. At 
the present time, under the existing competitive grant program, 
the U.S. Department of Education decides which schools are in 
greatest need of assistance and provides funding to local 
schools and other eligible organizations based on the quality 
of their applications for assistance. However, since funding 
for special alternative projects is limited to 25 percent of 
available funds, the opportunities for funding are severely 
limited for school districts and other entities that are not 
seeking funds for transitional bilingual education programs. 
The structure of the current Bilingual Education Act not only 
limits alternatives available to local schools, it ignores the 
fact that States and local schools and communities have a 
better sense of the needs of local schools with respect to the 
education of limited English proficient children. States can 
more closely monitor increases in populations of limited 
English proficient children in its school districts and can 
respond more quickly to requests for assistance.
    It is the view of the Committee that the existing Bilingual 
Education Act is in need of reform. Of growing concern is the 
fact that nationally a large number of Hispanic students do not 
complete high school. In 1988, 54.4 percent of Hispanic 
students graduated from high school. In 1996, 55.2 percent of 
Hispanic students graduated. Considering that almost three-
fourths of limited English proficient children speak Spanish, 
the Committee has great concern that graduation rates for this 
population of students have not increased considerably between 
1988 and 1996. The ``federal'' approach has been tried for many 
years, and still dropout rates are far too high for this 
population of students. The Committee believes limited English 
proficient children should have the same opportunities for 
success as other students and that they should be held to the 
same highacademic standards. It is time to let parents, States 
and local communities determine how to best educate these students.
    During the past two Congresses, the Committee and 
Subcommittee on Early Childhood, Youth and Families held 
several hearings examining the effectiveness of the Bilingual 
Education Act. Witnesses at these hearings expressed the need 
for reform of the current bilingual education programs. 
Witnesses, including parents, expressed particular concerns 
about current law practices related to the focus on 
transitional bilingual education and a lack of parental 
involvement in deciding whether or not their children should 
participate in programs structured for limited English 
proficient children. Celia M. Ruiz, a partner in a law firm 
representing schools in California on a wide range of civil 
rights and education law issues, stated in her testimony at a 
Subcommittee hearing in the 105th Congress:

          The school districts I represent today believe that 
        local autonomy is key to meeting the needs of limited 
        English proficient children. We believe that there is 
        more than one way to do that, and that no single 
        approach can serve the needs of all children in our 
        State. Moreover, we trust our local officials to 
        exercise wisely the flexibility and discretion we give 
        them to develop and implement unique and appropriate 
        solutions to the unique needs our communities face. It 
        is for that reason that we reject the efforts of some, 
        in our State and federal departments of education, to 
        externally mandate their preferred ``solutions'' to 
        diverse and inherently local problems.

    The Committee also took note that in June 1998 the State of 
California voters, by a margin of 61 percent to 39 percent, 
approved in a referendum an end to bilingual education 
programs. They instead chose to focus programs for limited 
English proficient children on teaching children English. This 
is a clear indication that States have a strong interest in the 
education of limited English proficient children and that the 
federal government should not dictate to the States on how best 
to serve the needs of these students.
    By turning decisions on bilingual education over to local 
schools and States and strengthening parental consent 
provisions, the Committee believes that decisions will be made 
by those individuals closest to the children who are in a 
position to best understand their educational needs.

Formula Grant vs. Competitive Grant Program

    The Committee believes a formula grant to the States will 
best address many of the concerns about current law practices. 
It will provide States maximum flexibility in deciding where 
the greatest needs exist for this type of assistance. At the 
same time, it will focus funds on teaching children and youth 
English as quickly as possible to allow them to transition into 
classrooms where instruction is not tailored for LEP children, 
instead of keeping them isolated from their English-speaking 
peers.
    The formula grant contained in H.R. 1 is focused on 
supporting State and local programs in the development, 
implementation, expansion or enhancement of English language 
instruction programs.

Consolidation of Programs

    The Emergency Immigrant Education Act was developed to 
provide funds to the States to assist in the education of 
immigrant students who have been in the United States for less 
than three years. Information on recent program expenditures 
indicates more than half of the funds have been used on English 
language instruction or other bilingual education services. 
Given this, and the fact that there is likely to be a 
substantial amount of overlap among students served under this 
program and the Bilingual Education Act, the Committee has 
combined these two programs in H.R. 1, the No Child Left Behind 
Act of 2001. The Committee continues to support programs to 
help meet the educational needs of immigrant children and youth 
and encourages States to continue providing special services to 
them. This is one of the primary uses of funds under this Act.
    The Committee also does not wish to restrict the types of 
instructional programs carried out by States and eligible 
entities. In fact, this bill makes it very clear that such 
decisions are to be made at the local level, as long as they 
are consistent with State law. Critics of this proposal have 
stated that it will eliminate bilingual education altogether. 
Nothing could be further from the truth. H.R. 1 contains 
language providing that nothing in this Act shall be construed 
as requiring a State or a local educational agency to 
establish, continue or eliminate any particular type of 
instructional program for limited English proficient children.
    H.R. 1 also provides much greater flexibility than current 
law with respect to the types of instruction provided to 
English language learners. There are no restrictions on the 
types of instructional programs that can be funded. In fact, an 
eligible entity could decide to operate transitional bilingual 
programs for children who are unable to read and write in their 
native language, and English as a Second Language or structured 
immersion programs for children who are able to succeed with a 
moderate level of assistance.
    Research on the effectiveness of different methods of 
instruction has produced a variety of results. There is no 
clear evidence that any one method of instruction is superior 
in teaching children English. As such, the Committee believes 
the federal government should not endorse one practice over 
another, as is the case with respect to the current Bilingual 
Education Act. In addition, the Committee does not believe the 
focus of this legislation should be on the retention of a 
child's native language. The focus should be on the attainment 
of the English language and academic proficiency that is the 
cornerstone for such children to achieve academic success. 
While there is agreement that fluency in more than one language 
is a benefit, this clearly is not a function of the federal 
government. States and local schools and communities have the 
responsibility for making decisions regarding foreign language 
programs offered in schools or programs to help children retain 
their native language. In addition, the role of parents in 
retaining native language fluency for their children is 
critical.
    The current Emergency Immigrant Education Program is a 
formula grant program under which States determine which local 
school districts are in need of assistance and fund projects in 
such schools. There is no reason to believe States will not be 
able to make similar determinations if the Bilingual Education 
Act becomes a formula grant program. It is simply a matter of 
whetheror not we want to continue to allow the federal 
bureaucracy to make important decisions regarding the education of 
limited English proficient children or to turn these decisions over to 
States and local schools and communities.

Parental Consent

    The Committee heard from parents and other concerned 
individuals regarding the placement of their children in 
bilingual education courses without their permission or 
knowledge. Parents have also complained that schools have been 
unwilling to remove their children from such classes upon their 
request.
    According to the United States Commission on Civil Rights 
report entitled, ``Equal Educational Opportunity and 
Nondiscrimination for Students with Limited English 
Proficiency: Federal Enforcement of Title VI and Lau v. 
Nichols'':

          School districts across the country are experiencing 
        serious tensions between school officials and parents 
        over placement. Many parents of students with limited 
        English proficiency are expressing dissatisfaction with 
        the education their children are receiving. For 
        example, in New York City, Maria Perez, a parent who is 
        fighting her child's placement in the city's bilingual 
        education program recently stated: `What bothered me 
        was that they place children in bilingual programs and 
        keep them there for years and years. They aren't 
        learning English.' The problems that prevent academic 
        success can and should be addressed by parents working 
        together with school personnel to determine where 
        problems exist and how they can be solved.

    The parental consent provisions in H.R. 1 make it very 
clear that parents should play a major role in determining the 
placement of their children in English language instruction 
programs. Schools should not be making decisions regarding the 
placement of English language learners without exhausting all 
available means to reach an agreement on such placement with 
the children's parents. Parents want their children to learn 
English as quickly as possible because they know it is 
essential in order to succeed academically and in life. They 
should be able to prevent their children from being placed in 
classrooms that they do not believe will help them learn 
English and succeed in school. Parents should also have the 
ability to remove their children from such classrooms 
immediately if they believe it is not in their children's best 
interest. The Committee agrees with the report of the Civil 
Rights Commission, parents and schools should be working 
together to make the best possible decisions regarding the 
education of English language learners.
    For instance, Mr. George Louie, who testified before the 
Subcommittee on Early Childhood, Youth and Families during the 
105th Congress, spoke of his experiences with his son. Mr. 
Louie's son, Travell, was born and raised in the United States. 
Yet, he told the Subcommittee that his son was placed in a 
Chinese bilingual classroom in Oakland, California without his 
consent or knowledge. He told of over 75 calls he made to 
school officials. He also met with the administrative assistant 
to the superintendent and the general counsel in an attempt to 
have his son removed from this program. According to Mr. Louie: 
``Their initial response was, `We will transfer your kid to 
another school district'.'' This was not a satisfactory 
resolution to the problem for Mr. Louie, who was living on 
disability and could not afford to take his child on public 
transportation to another school. At the time the hearing was 
held on February 18, 1998, Travell was still in a Cantonese 
bilingual class.
    In another instance, Ms. Martha Bujanda, the former 
director of a community outreach program at the University of 
Dallas and a former bilingual education student, testified 
before the Subcommittee on Early Childhood, Youth and Families 
in the 106th Congress about numerous parents who had children 
in bilingual education classes. She told of how many of these 
parents were surprised to learn that their children were not 
being taught exclusively in English and not attaining English 
language skills. When they discovered that removing their 
children from such specialized classes was possible most were 
intimidated by the thought of having to go to their children's 
school and formally sign a written request stating their desire 
to remove their child from the bilingual education program 
since they themselves did not speak fluent English. She 
specifically stated that ``Even in those rare cases where 
parents were willing to be proactive with school administrators 
about this issue, they were often discouraged by guidance 
counselors and teachers, or were made to feel like outcasts for 
wishing to place their children in mainstream classes.'' She 
went on to discuss how she assisted a parent in removing her 
seventh grade boy from the bilingual education program at his 
middle school, ``What I thought would be a relatively easy 
task, turned into a two and half-hour situation. Disregarding 
the mother's wishes, the boy's homeroom teacher, guidance 
counselor, and principal attempted to convince them both that 
it was in the boy's best interest to remain in the program 
instead of attending mainstream classes in English.''
    Accounts such as these pointed out to the Committee the 
need for greater parental involvement in decisions regarding 
the education of children who are English language learners.
    To this end, H.R. 1 contains provisions that require the 
parent or parents of children participating in programs under 
this Act to be informed of: (1) the reasons for identification 
of their child as being in need of English language 
instruction, (2) their child's level of English proficiency and 
how it was assessed, (3) the status of their child's academic 
achievement and how the program will assist their child to 
learn English and meet age-appropriate standards for grade-
promotion and graduation, (4) what the specific exit 
requirements are for the program, (5) the expected rate of 
transition from the program into a classroom that is not 
tailored for limited English proficient children; and (6) the 
expected rate of graduation from high school for the program 
for children in secondary schools.
    H.R. 1 specifies that local educational agencies must make 
a reasonable and substantial effort to obtain informed parental 
consent prior to the placement of a child in an English 
language instruction program for LEP children. The bill further 
provides specific provisions for situations when parental 
consent is not obtained by requiring LEAs to maintain a written 
record that includes the date, manner, and specific efforts 
made to obtain such consent. Such proof of effort must be in an 
understandable form and mailed or delivered to the parent or 
parents, including a final request for parental consent for 
such services, of a child prior to placing the child in an 
English language instruction program for LEP children. H.R. 1 
provides similar provisions for children who have not been 
identified as limited English proficient prior to the beginning 
of the school year.
    The bill also requires that schools honor a parental 
request to have their child removed from a bilingual education 
program immediately should the parent or parents decide they no 
longer wish their child to participate in such a program. 
Finally, H.R. 1 provides that schools must allow the parents of 
limited English proficient children to select the method of 
English language instruction their child will receive if more 
than one method is offered.
    It is the view of the Committee that parents have the 
primary responsibility for their children's education. These 
new changes ensure that the parents of limited English 
proficient children have the same rights as other parents. In 
such cases where a response cannot be obtained, the Committee 
believes limited English proficient children should receive 
appropriate services without delay.

Testing of English Language Learners and Accountability

    H.R. 1 provides that States receiving funds under this 
program are required to assess LEP students in English who have 
attended school in the United States for three or more 
consecutive school years in reading or language arts. However, 
it does permit a local educational agency to use assessments in 
another language and form if they are likely to yield more 
accurate and reliable information on what students know and can 
do for one additional year. Such determinations are to be made 
on a case-by-case basis. The Committee is concerned that there 
will not be an accurate picture of the progress made by limited 
English proficient children if they are not tested in the 
English language.
    Further, testing these children will allow local school 
districts to determine the progress of limited English 
proficient children in mastering the English language. It will 
also allow local educational agencies to determine where they 
may need to improve assistance programs for these children if 
test scores indicate that children are not making adequate 
progress towards English language proficiency. The whole point 
of education programs for English language learners, by 
whatever method, is to assimilate limited English proficient 
children into the mainstream of society and the regular 
education population. Testing children permits schools to 
monitor whether or not there is any improvement in the child's 
English language proficiency and provide them with any 
additional support they may require.
    In addition, H.R. 1 holds States and local educational 
agencies accountable for transitioning limited English 
proficient children out of specialized programs and into 
classrooms where instruction is not tailored for limited 
English proficient children. As stated above, the bill requires 
States to test all LEP children in English after three years 
that the student is attending school in the U.S. and if LEP 
children do not meet adequate yearly progress or are not 
English proficient after such time, the State may lose up to 20 
percent of their total ESEA administrative funds.
    The Committee strongly believes that in order to ensure 
that programs for the education of limited English proficient 
and immigrant children are serving their intended purpose 
States should be held accountable for results. Holding States 
and local school districts accountable for ensuring that LEP 
children are becoming proficient in English not only ensures 
that the program is serving its intended purpose, but also 
ensures that LEP children are becoming proficient in English 
and therefore are better equipped to have successful and 
rewarding academic careers.

State and Local Use of Funds

    In an effort to best serve the needs of limited English 
proficient children, H.R. 1 drives 95 percent of available 
funds to the local level, to be used by eligible entities to 
provide assistance to children who are limited English 
proficient. States can use the remaining funds for a variety of 
activities, although the amount that can be spent on 
administration is limited to two percent.
    In restructuring the Bilingual Education Act, the Committee 
eliminated the direct funding of professional development 
programs. However, the Committee recognizes that there is a 
need for additional teachers and other professionals who are 
trained to provide services for limited English proficient 
children. As such, H.R. 1 provides that States can use funds 
for professional development activities that assist personnel 
in meeting State and local certification requirements for 
English language instruction and other activities that provide 
such personnel with the skills and knowledge necessary to 
educate LEP children. States can also use funds to provide 
scholarships and fellowships to students who agree to teach 
limited English proficient children once they graduate. In 
addition, local grantees may use funds to provide professional 
development to classroom teachers, principals, administrators 
and other school or community-based personnel to improve the 
instruction and assessment of limited English proficient 
children.
    States are also permitted to use funds to provide bonuses 
to subgrantees whose performance has been exceptional in terms 
of the speed with which children attain English language 
proficiency. The Committee believes such bonuses will encourage 
local subgrantees to work even harder to ensure that limited 
English proficient children are taught English as quickly as 
possible.
    Further, H.R. 1 allows States to use funds to provide other 
forms of assistance to local educational agencies (LEAs) that 
do not receive a subgrant under this Act. A growing number of 
schools are faced with educating limited English proficient 
children. Many of these LEAs have little or no experience in 
how to provide quality educational services to children who do 
not speak English. The Committee feels it is important to 
provide States the flexibility to use funds to provide 
assistance to these LEAs, be it technical assistance or 
curriculum materials. The Committee also encourages States to 
link LEAs with little or no experience. in educating limited 
English proficient children with schools which provide quality 
services to these children so they can share information and 
ideas on how to best address the needs of these children. While 
the focus of this legislation is on providing assistance to 
LEAs with large numbers of LEP children, the Committee does not 
want to overlook the needs of smaller LEAs, where the education 
of these children is just as important as it is in larger 
school districts.
    In addition to professional development, local entities 
requesting funds under this Act may use funds to upgrade 
program objectives and effective instructional strategies, 
improve the instruction of LEP children by providing for the 
acquisition or development of education technology or 
instructional materials, access to and participation in 
electronic networks for materials, training and communications, 
and incorporation of such resources in curricula andprograms, 
developing tutoring programs, and providing family literacy services. 
States are also permitted to fund other activities that assist in the 
education of eligible children and youth.

Evaluations and Reporting Requirements

    In order to follow the progress of the Education of Limited 
English Proficient and Immigrant Children program, H.R. 1 
requires eligible entities that receive a subgrant from a State 
to provide the State with an evaluation every two years that 
indicates: (1) the programs and activities conducted by the 
entity, (2) the progress made by students in learning the 
English language, (3) the number and percentage of students in 
the programs and activities attaining English language 
proficiency by the end of each school year, and (4) the 
progress made by students in meeting challenging State academic 
content and achievement standards.
    Such evaluations will be used by the States to determine if 
students served by the program are attaining English 
proficiency and are meeting challenging State academic content 
and achievement standards and have achieved a working knowledge 
of the English language to permit them to perform well in 
English in a classroom not tailored to limited English 
proficient children. These evaluations must assess: (1) oral 
language proficiency in kindergarten, (2) oral language 
proficiency, including speaking and listening skills in first 
grade, (3) both oral language proficiency, including speaking 
and listening skills, and reading and writing skills in grades 
2 and higher, and (4) the attainment of challenging State 
student academic achievement standards.
    Based on these evaluations, H.R. 1 further requires States 
to report every two years to the Secretary a report on the 
programs and activities undertaken by the State as to the 
effectiveness of such programs and activities in improving the 
education of limited English proficient children.
    The Committee firmly believes that in order to ensure that 
federal programs serve their intended purpose, measures must be 
in place to assess a program's successes and failures. 
Requiring States to evaluate and report to the U.S. Secretary 
of Education on the effectiveness of programs designed to 
provide services to LEP children in their State, ensures that 
States will closely monitor the progress of such programs in 
meeting their intended goals.

Changing the Name of the Office

    Currently the name of the office within the Department of 
Education responsible for the Bilingual Education Act is the 
Office of Bilingual Education and Minority Languages Affairs. 
The Committee believes the name of the office should reflect 
the primary purpose of the program. It has, therefore, renamed 
the office, the Office of Educational Services for Limited 
English Proficient Children. Since the primary purpose of this 
legislation is to provide English language learners with the 
English language skills they need to perform well in school, 
the Committee believes renaming the office is appropriate and 
consistent with the intent of this Act.

         TITLE III, PART B--INDIAN AND ALASKAN NATIVE EDUCATION

Background and Committee Views

    Programs designed to enhance the educational opportunities 
for native populations are administered by both the Department 
of Education under the Elementary and Secondary Education Act 
(ESEA) of 1965 and the Bureau of Indian Affairs (BIA). Title 
III, Part B, of the No Child Left Behind Act of 2001 updates 
and improves these programs as follows.

Department of Education Programs

    Programs administered by the Department of Education are 
designed to provide financial support to reform and improve 
elementary and secondary school programs that serve American 
Indian students; improve and enrich the quality of education 
for Indian students; research and evaluate information on the 
effectiveness of Indian education programs; and improve 
educational opportunities for adult Indians. The majority of 
the funds are distributed under a formula based on the number 
of Native American children in the LEA or BIA funded schools. 
For FY 1999, awards were made to 1,120 LEAs, 84 BIA grant/
contract schools, and 70 BIA operated schools, and served 
460,782 students in 41 States. In addition, the department 
administers a number of competitive grant programs to provide 
supplemental education for Alaska Native children and adults.
    In updating and improving these programs, the Committee 
focused on improving student academic achievement, targeting 
resources to the programs that are providing the best results, 
greatly increasing the flexibility of the programs at the local 
level, reducing the administrative burden placed on 
participating entities, increasing the amount of aid that 
actually reaches the classroom, and increasing the emphasis 
placed on family literacy services for the affected 
populations. The centerpiece of the Committee's efforts is 
flexibility coupled with accountability for results. 
Specifically, the Committee included a new provision allowing 
LEAs which receive formula grants under Title III, Part B, to 
commingle all of the federal funding they receive for educating 
Indian children, regardless of which agency provides it, into 
one coordinated, comprehensive program to meet the specific 
needs of Indian children. LEAs that choose to do this will 
submit a single plan describing how they intend to consolidate 
funding, and specifying the student academic achievement goals 
that they will meet. The Committee intends that these entities 
be given the maximum flexibility in implementing their plans, 
and expects the Secretary and the head of any affected agency 
to give applicants their fullest cooperation. The Committee is 
hopeful that the flexibility provided will allow LEAs to reduce 
administrative costs while improving educational services to 
Indian children. Additionally, the Committee has provided 
increased flexibility in counting eligible children for funding 
purposes to BIA funded schools. This is consistent with our 
efforts to reduce administrative burdens placed on grant 
recipients.
    The Committee has also eliminated four unfunded programs 
under Part B. These programs include: Fellowships for Indian 
Students; Indian Gifted and Talented programs; Grants to Tribes 
for Administrative Planning and Development; and Special 
Programs Relating to Adult Education. In taking this action, 
the Committee recognizes that none of these programs have been 
funded since FY 1995, and that two of them have never been 
funded. This action is consistent with the Committee's 
philosophy of focusing resources on the programs which are 
providing the best results, and consistent with its 
responsibility to set priorities for the Appropriations 
Committee. The Committee notes that the services that would be 
provided underthese programs to Indian youth and adults are 
currently funded through other authorities, including parts of this 
Act, the Higher Education Act, and through programs administered by the 
Bureau of Indian Affairs (BIA).
    The Committee has made significant reforms to programs for 
Alaska Natives. Specifically, the Committee has consolidated 
the three competitive grant programs serving Alaska Natives 
into a single, more efficient and flexible program to improve 
services.
    In an effort to ensure that more of the money provided 
reaches the classroom and serves the intended students, the 
Committee has limited recipients of funding under Title III, 
Part B, to using not more than 5 percent of the funding for 
administrative costs. This is consistent with the philosophy 
that a minimum of 95 percent of federal education funds should 
reach the classroom.
    The Committee has also eliminated the Native Hawaiian 
specific programs formerly authorized under Title IX, Part B, 
of the Elementary and Secondary Education Act. This action is 
consistent with attempts to reduce duplication of effort and 
focus scarce federal resources on those in greatest need. The 
Committee's rationale for repealing these programs is the fact 
that similar assistance is available to all students, including 
Native Hawaiians, under programs such as Title I, the Gifted 
and Talented program, Even Start, Special Education, the Higher 
Education Act, and other, broader authorities. Unlike other 
indigenous populations, Native Hawaiians have a trust, 
established by the last Hawaiian princess, which exists solely 
to educate Native Hawaiian children. The Bishop Trust is 
currently one of the largest charitable trusts in the world, 
valued in excess of $ 10 billion, and holds approximately 8 
percent of all land in the State of Hawaii as well as a 10 
percent share of Goldman Sachs. The Committee urges the Trust 
to redouble its efforts to educate Native Hawaiian children. 
The Committee also believes that these children should be given 
the same opportunities afforded to all of our children under 
the programs authorized in this and other acts.

Family Literacy Services

    Family literacy is a very effective method of stopping the 
cycle of illiteracy. It not only builds on the literacy skills 
of parents, but it insures their children will have every 
opportunity to succeed in school. Family literacy programs 
throughout the United States assist parents in obtaining the 
literacy and other skills they need to get a job, reduce their 
dependence on public assistance, and most importantly, to be 
their child's first and most important teacher. Family literacy 
strengthens families. Recognizing this, the Committee has 
included family literacy services as an allowable use of funds 
under formula and competitive grant programs authorized under 
Title III, Part B. The Committee was pleased to recognize the 
success of the Family and Child Education (FACE) program 
operated by the Bureau of Indian Affairs. Language included in 
this legislation makes it clear that family literacy is a use 
of funds in BIA operated programs. The Committee encourages the 
BIA to expand the number of family literacy programs in order 
to ensure positive outcomes for children and their parents.

Bureau of Indian Affairs Programs

    The Committee is encouraged that progress continues to be 
made among Indian students at schools funded by the BIA. The 
Committee is pleased to note that the tribes and tribal 
organizations continue to take increased control of the schools 
that serve their children through contract or grant 
arrangements with the bureau. The Committee recognizes that, if 
given the chance, these entities, working with the parents of 
Indian children, will do a far better job of improving student 
academic achievement than any federal agency. The Committee is 
also pleased with the continued growth in attendance at 
institutions of higher education of Indian students. It is 
estimated that current postsecondary enrollments are in excess 
of 130,000. In considering this legislation, the Committee has 
acted to increase local control of education, and to shift 
responsibility and authority for education to tribes and tribal 
organizations.
    Currently, bureau funded schools are generally required to 
meet rigid educational standards established by the bureau. In 
an attempt to increase local control, this legislation allows 
schools that choose to do so to become accredited by a tribal, 
State or regional accrediting body and meet the standards of 
accreditation rather than those imposed by the bureau. The 
Committee has modified the section on standards in recognition 
of the fact that bureau-funded schools have made substantial 
progress in the last twenty years in their educational 
programs. In contrast to 1978, when the Committee first acted 
on this topic and fewer than 2 percent of bureau-funded schools 
met accreditation standards, today, practically all schools 
exceed such standards.
    The Committee has also included a provision such that if 
the criteria with respect to accreditation are observed, the 
local school board and the administrator may choose the 
standards to be applied. Standards are required to be at least 
those necessary to meet State standards of the State or region 
in which the school is located. This does not mean that these 
standards must be the State or regional standards; rather, 
State or regional standards would be used as a floor.
    In addition, this legislation makes it clear that tribal 
entities may improve and expand educational programs at bureau 
funded schools using their own resources. The No Child Left 
Behind Act of 2001 gives tribes a greater say in repair and 
maintenance priorities; allows tribes to contract for training 
services; increases tribal authority to pick service providers 
for purchasing supplies; and gives tribes and local school 
boards more flexibility in making school staffing decisions. 
BIA inspectors will also be required to get a second opinion 
from an independent source (with tribal input) before fully and 
finally closing a BIA funded school for health and safety 
violations.
    In keeping with the philosophy of parental choice and local 
control, the Committee has included a provision to give tribes 
and parents of eligible students the choice of which bureau 
funded school their children attend. In carrying out this 
provision, the Committee expects the bureau's full cooperation 
in assuring that funding follows the child.
    The Committee remains concerned that, despite Congressional 
direction, the bureau has never established a Division of 
Budget Analysis within the Office of Indian Education Programs. 
This legislation mandates the creation of this entity within 
one year of the date of enactment of the No Child Left Behind 
Act of 2001. Some are concerned that the bureau's budget 
requests may not be sufficient to provide a quality education 
for Native American students. Therefore, in addition to the 
creation of the Budget Division, the Committee has provided 
that the Comptroller Generalexamine the funding of these 
schools in relationship to other comparable facilities, and examine the 
criteria used by the bureau in developing its budget for education 
programs.
    The Committee has taken a number of actions to modify the 
school boundaries provisions. All such actions are intended to 
assure that schools take a proactive stance on identifying and 
providing services to all Indian students in their geographic 
service area.
    Finally, the Committee greatly increased the consultation 
required throughout these Acts. In considering future changes 
to Indian education programs, the Committee expects that the 
bureau will take into account the full range of views of all 
interested parties, and will engage in a consultative process 
prior to taking action.

                 TITLE IV, PART A--INNOVATIVE PROGRAMS

Subpart 1--State and Local Innovative Programs

    Innovative Education Program Strategies (Title VI under 
current law) is the most flexible program contained within the 
Elementary and Secondary Education Act. It is the only formula 
program that allows recipients to use funds to benefit any and 
all student populations, in any and all schools. This program 
is the ``innovation money'' needed to help schools implement 
broad based accountability plans that are essential for 
education reform.
    There is ample evidence to demonstrate that this program is 
meeting the unique needs of States and local school districts 
as they implement innovative education reform efforts to 
improve student academic achievement. Pursuant to the 
requirements of the statute, the Title VI National Steering 
Committee conducted an evaluation of the effectiveness of Title 
VI for FY 1998. Forty-four States participated in the survey. 
The national compilation of survey data summarizes the impact 
of Title VI on over 19.1 million students in 5,247 public 
school districts and nearly 1.4 million students in private 
nonprofit schools. The survey, Title VI Evaluation of 
Effectiveness, National Summary, 1998, notes that public school 
districts, as well as private nonprofit schools, allocated the 
majority of their Title VI finds for library services and 
materials (including media materials). The second highest use 
of funds was for computer software and hardware for 
instructional use. The greatest benefit provided by the 
flexibility of Title VI at the local level is the ability to 
use funds to meet locally identified needs without the 
restrictions inherent in most other federal education programs.
    In an effort to increase local control and flexibility of 
funds under the Innovative Education Program Strategies, H.R. 1 
adds additional ``uses of funds'' to current law to broaden the 
scope of the program for local educational agencies.

Professional Development

    The bill provides for professional development activities 
and the hiring of teachers, including activities carried out in 
accordance with Title II that give teachers, principals, and 
administrators the knowledge and skills necessary to provide 
students with the opportunity to meet challenging State or 
local academic content standards and student academic 
achievement standards. Local educational agencies will now have 
the flexibility to focus on initiatives they believe will 
improve both teacher quality and student academic achievement, 
such as programs to recruit principals and fully qualified 
teachers; initiatives to promote retention of highly qualified 
teachers and principals; programs to improve the quality of the 
teacher force; teacher opportunity payments; professional 
development activities to improve the quality of principals; 
teacher advancement initiatives that promote professional 
growth and emphasize differential pay.

Community Service

    The No Child Left Behind Act of 2001 provides for community 
service programs that train and mobilize young people to 
measurably strengthen their communities through nonviolence, 
responsibility, compassion, respect, and moral courage. The 
Committee recognizes the accomplishments of the Do Something 
organization in engaging students in community-building 
activities in urban, rural, and suburban school districts 
around the country. Do Something is a national nonprofit 
organization that inspires young people to believe that change 
is possible, and trains, funds, and mobilizes them to be 
leaders who measurably strengthen their communities. The 
Committee believes that the inclusion of increased community 
service opportunities within the Elementary and Secondary 
Education Act will help to strengthen schools and communities 
across the nation.

Youth Entrepreneurship Education

    H.R. 1 provides for curriculum-based youth entrepreneurship 
education programs with demonstrated records of empowering 
disadvantaged youth with applied math, entrepreneurial, and 
other analytical skills. To be successful, it is the view of 
the Committee that curriculum-based youth entrepreneurship 
education programs should include organized academic materials 
that are sequentially based and which have been field-tested 
and based on sound educational practices. There is growing 
evidence that innovative organizations and institutions working 
to instill entrepreneurial behavior through classroom and 
practical experiences highly effective in teaching some youth.

Financial Literacy Education

    The No Child Left Behind Act of 2001 provides for 
activities to promote consumer, economic, and personal finance 
education. Such activities include disseminating and 
encouraging 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.
    In order to succeed in our dynamic American economy, young 
people must obtain the skills, knowledge, and experience 
necessary to manage their personal finances and obtain general 
financial literacy. Yet, despite the critical importance of 
financial literacy to young people, the average student who 
graduates from high school lacks basic skills in the management 
of personal financial affairs. A nationwide survey conducted in 
1997 by the Jump$tart Coalition for Personal Financial 
Literacy, examined the financial knowledge of 1,509 high school 
seniors. On average, survey respondents answered only 57 
percent of the questions correctly and only fivepercent of the 
respondents received a ``C'' grade or better. A similar survey 
conducted in the spring of 2000 found financial skills declining among 
12th graders, with an average of only 52 percent of the questions 
answered correctly. As a result, many State educational leaders have 
recognized the importance of providing a basic financial education to 
students and have begun integrating financial education into State 
educational standards.

Mental Health Services

    Subpart 1 of Title IV, Part A allows States and local 
educational agencies to use these funds to expand and improve 
school-based mental health services, including early 
identification, assessment, and direct individual or group 
counseling services provided to students, parents, and school 
personnel by qualified school-based mental health services 
personnel. The Committee recognizes that LEAs may find that 
school-based mental health services are a necessary and 
appropriate component of improving student learning experiences 
and outcomes.
    In addition to expanding and improving school-based mental 
health services, the Committee notes that local educational 
agencies may use funds for eating disorder prevention, 
awareness, treatment, and education programs. These types of 
programs can be an effective way to improve the education, 
health, and well being of students at-risk or suffering from 
eating disorders.
    The Committee also recognizes the continuing advancements 
in brain science and its application to learning. Consequently, 
it is the Committee's view nothing in this Subpart shall be 
construed as limiting or preventing schools or local education 
agencies to use funds under this Subpart to implement 
scientifically based research programs that assesses and 
develop the specific intellectual abilities of students to help 
them learn more effectively in order to meet State academic 
achievement standards.

Subpart 2--Arts Education

    The Arts Education program (Title X, Part D under current 
law) supports student competency in the arts by encouraging the 
integration of arts education into elementary and secondary 
school curricula. In its deliberations, the Committee has 
focused on increasing the involvement of local arts educators 
and State and local arts organizations, and on targeting 
resources to the programs that are providing results. H.R. 1 
updates and improves the program in a number of ways.
    The Committee bill continues the Arts Education program at 
its current funding level. It updates the congressional 
findings with respect to arts education. In addition, H.R. 1 
eliminates a number of outdated references to ``Goals 2000,'' 
``National Education Goals,'' and ``national efforts,'' and 
instead focuses the program on improving school-based programs 
using State academic standards.

Encouraging Local Participation and Increasing Local Control

    The Committee bill maintains the current list of eligible 
entities, and retains most of the current allowable uses of 
funds. However, consistent with the Committee's philosophy of 
increasing local involvement and local control, the focus of 
collaborative activities allowed under the Act has been shifted 
away from specific federal agencies and specifically named 
organizations, to arts educators and arts organizations 
including State and local arts agencies.
    While this legislation does not specifically mention the 
purchase of instruments or other supplies, H.R. 1 allows local 
flexibility, and the Committee believes such purchases are 
allowable in the event that local schools choose to use program 
funds in this way.
    H.R. 1 eliminates a restrictive special rule which has had 
the effect of limiting involvement by individuals and local 
organizations, and replaces it with a requirement that the 
Secretary consult with arts educators (including professional 
arts education associations), and organizations representing 
State and local arts agencies involved in arts education when 
making grants.
    In taking these actions, the Committee highlights the 
importance of consultation with the individuals and entities 
that have the primary responsibility and accountability for 
delivering a quality education in the arts. The Committee notes 
that there are currently four professional associations 
representing arts educators: MENC: the National Association for 
Music Education; the National Art Education Association; the 
American Alliance for Theater Education; and the National Dance 
Education Organization. The Committee believes that the 
Secretary, grant recipients, and ultimately America's children 
will benefit from this consultative process.

Simplification and Flexibility

    H.R. 1 eliminates an outdated funding threshold that 
required in any year that appropriations for the Arts Education 
program are below $9 million, all appropriated funds are to be 
spent on programs operated by the Kennedy Center and VSA arts. 
In taking this action, it is not the intent of the Committee to 
increase or reduce federal funding to any specific entity. 
Rather, the Committee's goal is to simplify the Act and 
increase flexibility by eliminating a provision that is no 
longer necessary or even in effect. The Committee notes that 
funding for Arts Education has exceeded the $9 million 
threshold in each of the four prior fiscal years. During that 
same time, combined funding under the program for the Kennedy 
Center and VSA arts has also grown beyond the $9 million 
threshold.
    The Committee eliminated the Cultural Partnerships for At-
Risk Children and Youth program. This program was created as a 
separate Subpart 2 during the last reauthorization of the ESEA, 
but has never been funded. This action is consistent with the 
Committee's philosophy of targeting resources to the programs 
that are providing the best results, as well as with its 
responsibility to set priorities for the Appropriations 
Committee.

Leveraging Funds

    Finally, the Committee bill includes a new provision 
stating that funds provided under this program must be used to 
supplement and not to supplant non-federal funds used for arts 
education programs. This provision was added after consultation 
with arts educators who expressed concern that a few providers 
might reduce their own efforts if or when federal funding 
became available. It is the intent of the Committee that 
initiatives provided for under thisprogram should complement 
the ongoing efforts of schools and school districts across the country.

Subpart 3--Gifted and Talented Children

    H.R. 1 continues the Jacob K. Javits Gifted and Talented 
program (Title X, Part B under current law). The Committee 
recognizes that ongoing research, model projects, and exemplary 
programs are a necessary foundation for quality gifted and 
talented education programming. The Committee also acknowledges 
the importance of identifying gifted and talented students who 
may not be identified and served through traditional assessment 
methods; mentoring programs; modifications to curriculum; 
acceleration; distance learning programs; dual enrollment; 
teacher education; and other educational activities designed to 
meet the needs of gifted and talented students.

            title iv, part b--public charter schools program

    The Public Charter Schools Program provides three-year 
competitive grants for the planning, program design and initial 
implementation of charter schools to those States that have a 
State charter statute. Charter schools are nonsectarian public 
schools. The ``charter'' establishing each school is a written 
performance contract that provides publicly funded support for 
the school for a specified period of time. The school's charter 
gives autonomy over its operation and frees the school from 
regulations that other public schools must follow. In exchange 
for autonomy, charter schools are held accountable for meeting 
the terms of their charters including increasing student 
academic achievement. Currently, 37 States, the District of 
Columbia and the Commonwealth of Puerto Rico have passed laws 
authorizing charter schools.
    The Committee strongly believes that charter schools embody 
the principles of freedom and accountability, and empower 
parents with the ability to seek out the best education 
possible for their children. By allowing parents to make 
decisions concerning their child's education, they encourage 
parental involvement. Not only do charter schools encourage 
academic achievement and parental involvement in their own 
schools, but they also help traditional public schools to 
improve. As a result of their freedom to innovate, charter 
schools provide a valuable source for determining what reforms 
should be replicated at other schools.
    Since the 105th Congress passed the Charter Schools 
Expansion Act of 1998 (P.L. 105-278), which authorizes the 
Public Charter Schools program through FY 2004, the Committee 
also believes that only five noteworthy modifications are in 
order. First, H.R. 1 clarifies that the definition of a charter 
school is, among other things, a public school that admits 
students on the basis of a lottery or in another non-
discriminatory manner consistent with State law, if more 
students apply for admission than can be accommodated.
    Second, the bill adds new language prohibiting local 
educational agencies from deducting funds for administrative 
fees or expenses from a subgrant awarded to an eligible 
applicant. The Committee notes that State educational agencies 
may reserve not more than 5 percent of grants for 
administrative expenses associated with the grant program. 
States may use these funds for technical assistance to eligible 
applicants and operating charter schools either directly, or 
indirectly, through grants or contracts with charter school 
resource centers, charter school associations or other charter 
school support organizations. In some States, eligible 
applicants and schools have found it beneficial to pool a 
portion of their grants or subgrants to purchase or provide 
technical assistance or other services provided by charter 
school support organizations. In both cases, the Committee 
believes the Department should be responsive to States and 
schools wishing to exercise such discretion.
    Third, H.R. 1 clarifies that an eligible applicant is the 
actual charter school or school planning group. Applicants must 
notify their sponsor or prospective sponsor of their interest 
and submit an application, but a potential sponsor's approval 
is not needed for an application to be considered. In some 
States, districts are delaying, preventing or discouraging 
planning groups and approved schools from applying for planning 
and start-up grants. The Committee wishes to discourage such 
action and believes that the Department should be responsive to 
States wishing to exercise discretion and flexibility in 
awarding planning grants to charter school developers, without 
reducing their overall eligibility for start-up grants once the 
schools actually open.
    Fourth, Mr. Hoekstra (R-MI) successfully offered an 
amendment in Committee, which clarifies that upon written 
parental consent, a charter school or traditional public school 
must transfer a student's records to a private school if that 
student transfers from a charter school or a traditional public 
school to a private school.
    Finally, H.R. 1 removes outdated language authorizing a 
multi-year study of charter schools that has already been 
completed, leaving in place general authority to provide for 
additional evaluations or studies pertaining to charter 
schools. The Committee recommends that such evaluations or 
studies include an examination of the extent to which charter 
schools receive federal funding for which they are eligible. 
The Committee also notes that the Secretary may use national 
activities funding to provide information and technical 
assistance to charter schools, either directly by the 
Department or indirectly, through State educational agencies, 
charter school resource centers, charter school associations or 
other charter school support organizations.

title iv, part c--magnet schools assistance; women's educational equity

Subpart 1--Magnet schools assistance

    The Magnet Schools Assistance Program (MSAP) provides 
competitive grants to local educational agencies (LEAs) for 
magnet schools that are designed to reduce, eliminate, or 
prevent minority group isolation in elementary and secondary 
schools, and to provide strengthened academic or vocational 
programs for students. Magnet schools utilize a special 
curriculum intended to attract students of different races. In 
order to be eligible for a MSAP grant, a LEA must be 
participating in a court ordered or voluntary desegregation 
plan.
    The Committee has made a number of revisions to the Magnet 
Schools Assistance Program, while keeping the basic structure 
intact. These revisions include an additional emphasis on 
student academic achievement and a renewed focus on serving 
magnet schools.
    Specifically, H.R. 1 reinstates the program's commitment to 
student academic achievement by stressing the need to reduce 
minority group isolation in elementary and secondary schools, 
and by strengthening the applications and requirements section 
in relation to student academic achievement. In addition, the 
bill allows MSAP funds to be spent on professional development.
    As for renewing the program's focus on magnet schools, the 
bill eliminates two outdated priorities and repeals the 
Innovative Programs. However, any grant recipient that has an 
agreement in effect under the Innovative Programs will continue 
to receive funds through the end of the applicable grant cycle.

Subpart 2--Women's Educational Equity Act

    H.R. 1 reauthorizes the Women's Educational Equity Act. 
This program promotes gender equity in education and provides 
financial assistance to enable educational agencies and 
institutions to comply with Title IX of the Education 
Amendments of 1972 (which prohibits sex discrimination in 
educational programs and activities that receive federal 
financial assistance). The program promotes educational equity 
for women through competitive grants to public agencies, 
private non-profits, individuals, and through dissemination of 
materials by a national equity resource center. H.R. 1 
authorizes the Secretary of Education to award two types of 
grants: (1) to develop and implement gender equity programs; 
and (2) to provide ``support and technical assistance'' in 
areas such as teacher training and evaluation of exemplary 
programs, as well as for research and development.

                     Title V--21st Century Schools

 title v, part a--supporting violence and drug prevention and academic 
                               enrichment

    The Committee held several hearings during the 106th 
Congress regarding the Safe and Drug-Free Schools and 
Communities Act and the 21st Century Community Learning Centers 
Act. These hearings examined the drug and violence prevention 
needs of our nation's youth, both during school hours and out-
of-school hours. Predictably, the Committee found that drug and 
violence prevention needs across the country varied, as did the 
successes and shortcomings of drug and violence prevention 
programs.
    Current research shows that youth drug use and violence 
remains a significant societal problem. Additionally, drug use 
by youth increases the likelihood that a child will be 
delinquent, engage in high-risk sexual activity, drop out of 
high school, and commit theft, violence, and vandalism. Drug 
use among rural youth is higher than that of youth in large 
urban centers, and many of these rural youth abuse serious 
drugs, including methamphetamine and cocaine. The National 
Center on Addiction and Substance Abuse at Columbia University 
(CASA) issued in January, 2000 a report, entitled No Place to 
Hide: Substance Abuse in Mid-Size Cities and Rural America, 
which found that eighth graders living in rural areas are 104 
percent more likely to use amphetamines and 50 percent more 
likely to use cocaine, than eighth graders in urban areas. 
According to the CASA report, the health, social service, and 
law enforcement agencies in rural communities are less equipped 
to deal with youth drug use than their counterparts in urban 
areas, which already have established drug prevention systems.
    Regarding youth violence, schools may be one of the safest 
places for youth to be, but students continue to report that 
violence, gangs, and drugs are prevalent in some schools 
(National Center on Education Statistics, Indicators of School 
Crime and Safety, 2000). If students are using drugs, 
committing violent acts, or are in fear of these behaviors, 
then they cannot focus their attention on maximizing their 
academic performance and their future opportunities. While the 
purpose of schools remains academic, schools clearly must also 
respond to the safety needs of students and communities. Drug 
and violence prevention programs and activities are 
increasingly necessary.
    This is not to imply that the Committee believes schools 
have the sole responsibility for preventing youth drug use and 
violence. In fact, studies point to the role of the family as 
the most important factor in preventing youth drug use and 
violence. The National Longitudinal Study of Adolescent Health 
(1997) found that drug and violence prevention programs that 
incorporate ``protective factors'' tend to reduce drug use and 
violence. Protective factors include a student feeling 
connected to parents and family, having parents present at key 
times of the day, having high educational expectations, feeling 
part of the school, and having high esteem. The good news is 
that this comprehensive survey of adolescent youth found that 
the benefits of these protective factors reached beyond drug 
and violence prevention to preventing such behaviors as suicide 
and sexual activity among youth.

Promoting Coordination of Programs Under the Safe and Drug-Free Schools 
        and Communities Act and the 21st Century Community Learning 
        Centers Act

    The Safe and Drug-Free Schools and Communities Act was 
created as the nation recognized that it needed a concentrated 
and united effort to prevent a generation from being lost to 
drugs and violence. Congress created the act to assist local 
schools in their efforts to ensure that every student attends a 
drug-free and safe school, with the ultimate goal to help 
students raise their academic performance and achievement.
    Originally designed as a school-use facilities program for 
individuals of all ages, the 21st Century Community Learning 
Centers Act has evolved rapidly into an after-school program 
with goals similar to those of the Safe and Drug-Free Schools 
Act--youth drug and violence prevention. This transformation 
occurred in large measure due to the Department of 
Education's--during the Clinton Administration--absolute 
priority on ``activities that offer significant expanded 
learning opportunities for children and youth in the community 
and that contribute to reduced drug use and violence.''
    However, the interconnectedness of youth drug and violence 
prevention and after school activities is not new. In a hearing 
before the Subcommittee on Early Childhood, Youth and Families 
on February 10, 2000, Dr. Marianne Kugler, Program Officer of 
the C.S. Mott Foundation, stated,

          During the Depression, Mr. Mott noticed the many 
        youth who spent their time on street comers and in 
        vacant lots playing ball, smoking, and sometimes 
        getting into serious trouble. At a suggestion from the 
        then-Assistant Superintendent, Dr. Manley, Mr. Mott 
        gave his first small community school grants to 
        encourage schools to stay open after regular hours so 
        that these youth would have somewhere to go.

    The Committee believes the interconnectedness between youth 
drug and violence prevention and after school activities must 
not be ignored. The Committee acknowledges the findings of 
reports such as the Departments of Education and Justice's Safe 
and Smart: Making After-School Hours Work for Kids (June, 
1998), that notes: ``First and foremost, after-school programs 
keep children of all ages safe and out of trouble. The after-
school hours are the time when juvenile crime hits its peak, 
but through attentive adult supervision, quality after-school 
programs can protect our children.''
    The report also points out that ``school-age children and 
teens who are unsupervised during hours after school are far 
more likely to use alcohol, drugs, and tobacco, engage in 
criminal and other high-risk behaviors, receive poor grades, 
and drop out of school than those children who have the 
opportunity to benefit from constructive activities supervised 
by responsible adults.''
    Through its decision to bring the Safe and Drug-Free 
Schools and Communities Act and the 21st Century Community 
Learning Centers Act into the same title of the Elementary and 
Secondary Education Act, the Committee seeks to encourage State 
and local government officials, school administrators and 
teachers, community and religious organizations, and parents 
and students to work together to develop a unified approach to 
youth drug and violence prevention and education efforts and to 
improve the quality of these federally supported efforts. Only 
by coordinating activities and defining goals can the full 
benefits of federal funding be realized.

Safe and Drug-Free Schools and Communities Act

    Title V of H.R. 1 maintains the federal funding formula for 
the Safe and Drug-Free Schools and Communities Act. The bill 
provides separate authorizations for the States and for the 
Secretary of Education; $475,000,000 and $60,000,000 in FY 2002 
respectively. The States receive funds through a formula grant 
based 50 percent on the school age population of each State and 
50 percent based on the amount each State receives under Title 
I, Part A. Of the funds a State receives, the bill provides 
that up to 20 percent may be reserved by the governor to fund 
competitive grants to local educational agencies, community-
based organizations, other public entities and private 
organizations who operate drug and violence prevention 
programs. Unlike current law, governors will no longer be 
required to spend a portion of their funds for law enforcement 
education partnerships such as Project Drug Abuse Resistance 
Education (DARE). While maintaining such programs as an 
allowable use of State funds, the Committee seeks to increase 
the flexibility of States and governors to fund programs they 
expect to be successful for their populations.
    H.R. 1 also authorizes the State to reserve up to one 
percent of the federal grant for administrative expenses and 
four percent for State activities including planning, 
development, and implementation of capacity building, technical 
assistance, evaluation, program improvement services, and 
activities promoting the coordination of services among local 
educational agencies as well as data collection.
    The remainder of the funds must be sent to local 
educational agencies by formula. The formula reflects the 
Committee's desire--evident throughout H.R. 1--to target 
federal resources to schools with high proportions of low 
income students. The Committee does not intend to imply that 
drug abuse and violence are only persistent at such schools. 
Instead the Committee seeks to assist local educational 
agencies that tend to have more difficulty accumulating 
financial resources than more affluent areas.
    The State-to-local formula is based 60 percent on Title I 
funds and 40 percent on population. In order to receive funds, 
a local educational agency must submit an application to the 
State which includes a detailed explanation of the LEA's drug 
and violence prevention plan, including how it will support 
academic achievement, be coordinated with other drug and 
violence prevention programs, and be targeted to serve the 
schools and children with the greatest needs for drug and 
violence prevention programs. The Committee has also asked 
local educational agencies to develop performance indicators 
tied to the Principles of Effectiveness (see below) to ensure 
that programs funded under this part produce results. Local 
educational agencies will also be required to have a student 
code of conduct policy in place in order to receive a grant.
    The funds received by the local educational agencies may be 
used for a variety of drug and violence prevention activities 
(up to one percent may be used for local administrative 
expenses). Authorized activities include drug and violence 
prevention programs tailored to the academic and developmental 
level of the targeted children; prevention training for parents 
and school personnel; law enforcement and security activities; 
mental health services; activities that reduce truancy, 
suspensions, and expulsions; and emergency intervention 
services following traumatic crisis events. Additionally, the 
Committee has included language which will promote public 
information about the safety of local schools and allow those 
students trapped in unsafe schools to attend another public 
school which is safe. Specifically, States are required to 
develop, in consultation with a representative sample of local 
educational agencies, a Statewide definition of ``persistently 
dangerous schools''. Students who attend schools that meet the 
definition of ``persistently dangerous schools'' must be 
allowed to transfer to a safe public school. The local 
educational agency must also cover reasonable transportation 
and tuition costs for students who exercise the option of 
transferring. In addition to students who attend ``persistently 
dangerous schools,'' any student who is the victim of a violent 
criminal offense while their school would also have the right 
to attend another safe public school.

Mental Health Services

    The Committee has done much to address the mental health 
needs of youth. The Committee believes that the primary purpose 
of schools is to further student academic achievement and that 
schools should not be held responsible for providing mental 
health services. Nevertheless, the Committee does recognize 
that some schools and communities may find it appropriate and 
necessary to provide mental health services to students. This 
is a local choice and not a requirement to be imposed upon 
schools. In order to assist youth in need of mental health 
services, the Committee has maintained the provision allowing 
funds to be used for counselingservices. To address the growing 
mental health needs of youth, the Committee has added a provision 
allowing funds to be used to expand and improve school based mental 
health services. Effective mental health services help to reduce 
classroom disruptions, deter students from delinquent behavior, and 
help students avoid distraction from learning. These provisions fit 
nicely with the counseling provisions in Title V, Part A (the Fund for 
the Improvement of Education) that support best practices in elementary 
and secondary school counseling demonstration projects.
    The Committee included a definition of school-based mental 
health services providers in Title V. While some have called 
for the federal government to set a national professional 
qualifications standard for school-based mental health services 
providers, the Committee does not find that appropriate. 
Instead, the Committee prefers to allow State law to determine 
what professional qualifications are necessary to provide 
school-based mental health services. Leaving this decision to 
State law will allow local communities to provide the 
appropriate range of services for youth by appropriate 
providers.

21st Century Community Learning Centers Act

    The 21st Century Community Learning Centers Act has proven 
to be one of the most popular programs among school 
administrators and educators. The flexibility in focus, 
funding, and administrative requirements allow those with the 
greatest understanding of community needs to design programs 
that meet those needs. While the Committee did receive 
testimony which raised some questions about the program, the 
vast majority of 21st Century programs are popular and 
effective. The Principles of Effectiveness (see below) included 
in this Subpart are likely to improve results further.
    The 2lst Century program was created as a grant program 
administered directly by the U.S. Department of Education. 
Local educational agencies wishing to receive a grant applied 
directly to Washington. This detached process has the potential 
to reduce the quality of programs and, despite legislative 
direction, skew the distribution of funds among the 50 States 
as well as among rural, suburban, and urban populations. In 
order to drive decision-making processes back to States and 
local communities, the Committee charges States with 
distributing funds under this Subpart through competitive grant 
programs run by State educational agencies. The Committee would 
encourage Congressional appropriators to allow States to 
administer grants and would discourage the continued practice 
of earmarking funds for specific grantees in annual 
appropriations legislation. Only by allowing all applicants to 
compete fairly, without the intervention of Congress in the 
application process, can we ensure that quality programs will 
be supported.
    The Committee wants to acknowledge significant 
contributions by the private sector to this program. For 
example, the Charles S. Mott Foundation in Flint, Michigan has 
invested significant financial resources in providing technical 
assistance and training to grantees and prospective grantees 
under this program. The Committee encourages continued and 
additional private sector support for this program.
    The Committee also provides additional flexibility to the 
competitive grant process and to grant recipients in operating 
their programs. Under current law, the Department of Education 
is allowed to make grants only to local educational agencies. 
H.R. 1 authorizes grants to ``community-based organizations, 
and other public entities and private organizations'' as well 
as local educational agencies. Under H.R. 1, States will also 
have the authority to determine the length of the grant as long 
as it exceeds three years, but is not more than five. Under 
current law, all grants are three year grants. Finally, States 
will be authorized to require grant recipients to match the 
State grant. The Committee has included limits on what a State 
can require a grantee to contribute, which protects grantees 
with limited resources or who propose to serve communities with 
significant need. Significantly, under no circumstances may a 
State discriminate against a grant applicant because of the 
applicant's inability to provide matching funds. The matching 
fund requirement will allow States, in some circumstances, to 
enhance the resources supporting local programs.
    Maintained in the 21st Century Community Learning Centers 
program is its emphasis on community consultation and 
involvement. H.R. 1 strongly encourages meaningful consultation 
with the community over the needs that should be addressed by 
the 21st Century program. Included as part of this effort 
should be consultation with business, school and community 
officials.
    Grant recipients will also find additional flexibility in 
the 21st Century Community Learning Centers program under H.R. 
1. Grantees will have more flexibility in designing their 
programs to meet local needs. Under current law, grantees are 
required to include at least four different activities 
enumerated in the law in their programs. While the intent was 
to ensure that the programs met a variety of community needs, 
the Committee believes the changes made by H.R. 1 will better 
focus programs on needs they can properly address.
    Under H.R. 1, grant recipients will be required to simply 
establish or expand community learning centers that provide 
extended learning opportunities and additional recreational 
activities to students. In order to provide direction to grant 
recipients, the Committee has included a variety of authorized 
activities including remedial education activities; math, 
science, arts, entrepreneurial, or technology education 
activities; recreational activities; mentoring and tutoring 
services; expanded library hours; programs that promote 
parental involvement; and programs that provide assistance to 
students who have been truant, suspended, or expelled. The 
authorized activities included in the legislation are not 
intended to be an exhaustive list of allowable uses under the 
21st Century Community Learning Centers program. Any program 
that provides extended learning opportunities to students, 
meets community needs, and is focused on academic activities 
that help children meet State academic content standards are 
encouraged and allowed.

Principles of Effectiveness

    The Committee included in H.R. 1 ``Principles of 
Effectiveness'' to guide the implementation of programs in the 
Safe and Drug-Free Schools and Communities Act and the 21st 
Century Community Learning Centers Act. These principles are 
similar to those being implemented through Department guidance 
for the Safe and Drug-Free Schools and Communities Act since 
1998. The Principles of Effectiveness establish a basic set of 
considerations for a school orcommunity to make when 
determining their needs under Title V programs. First, the school or 
community must assess the problems among youth, the current prevention 
strategies targeting youth, and the academic achievement of youth. 
Second, the Principles call for any program or activity to be based on 
performance measures for a drug free and safe learning environment or 
ensuring the availability of quality extended learning opportunities. 
Third, each program or activity must be based on scientifically based 
research that provides evidence that the program will have effective 
outcomes. Finally, the program or activity must undergo a periodic 
evaluation of effectiveness.
    The Principles of Effectiveness promote best practices in 
programs and activities funded under this Title. Codifying 
these principles is essential to encouraging improvements in 
the program quality. In its request for public comment on July 
16, 1997, the Department of Education gave a very succinct 
rationale for why the Principles should be adopted. It wrote, 
``The administration also has a responsibility to promote the 
most effective possible use of these limited resources, which 
in many instances are the only funds available to local schools 
to address their youth drug and violence problems.''
    The definition of scientifically based research requires 
that a program satisfy several elements of quality research, 
including that the program be tested though ``rigorous, 
systematic, and objective procedures to obtain valid knowledge 
relevant to youth drug and violence prevention activities and 
programs.'' The definition of scientifically based research and 
the rigorous, but attainable, standard it sets are essential to 
ensuring program quality under Title V, and will have the 
greatest impact on improving the quality of these programs 
implemented in local schools and communities.
    While some may be concerned that this definition sets a 
standard that all but a few programs will fail, the evidence is 
to the contrary. In just one project, ``Science-based Practices 
in Substance Abuse Prevention: A Guide,'' developed by the 
Center for Substance Abuse Prevention (CSAP) in the Substance 
Abuse and Mental Health Services Administration, at least 75 
programs of youth drug and violence prevention, including 
before and after school activities, were found to meet the high 
standards of ``scientifically based research.'' These are not 
the only programs that fit this standard. In another project, 
CSAP reviewed program outcomes and evaluations in order to 
determine whether the program is worthy of inclusion in the 
National Registry of Effective Prevention Programs. The 
Committee concludes that schools and communities should not be 
concerned about a lack of quality model programs.
    The Committee also recognizes that innovation in youth drug 
and violence prevention programs and activities must be 
encouraged and supported. For this reason, the Committee 
included a waiver to the scientifically based research 
requirement. Grantees may apply to the State for a waiver of 
the scientifically based research requirement ``to allow for 
innovative activities or programs that demonstrate substantial 
likelihood of success.'' The Committee intends that waivers be 
used to encourage the development of new approaches to youth 
drug and violence prevention. While a State should provide 
waivers to worthy programs, it should also require that 
programs receiving waivers undergo scientifically based 
research evaluation in order to judge the quality of the 
program in future funding applications.
    The Committee believes that consideration of factors 
presented in studies such as the National Longitudinal Study of 
adolescent Health can greatly assist local schools in their 
development of innovative approaches to youth drug and violence 
prevention. That study, cited in the Journal of the American 
Medical Association of September 10, 1997 (pp. 823-32), 
provides information on the characteristics of students who 
successfully avoid drugs and violence and the characteristics 
of those who do not. This scientifically based study is nation-
wide and ongoing, ensuring an up-to-date, comprehensive view of 
the health of our nation's youth. Schools can use information 
such as this when they consider the needs of their students and 
how to design the best prevention program for their students.
    The Safe and Drug-Free Schools and Communities Act programs 
and activities have a history of questionable effectiveness. To 
begin with, the Act has suffered from a lack of program 
evaluation. The General Accounting Office, reporting on the 
lack of evaluation information in October of 1997, stated that 
the ``lack of uniform information on [Safe and Drug-Free 
Schools and Communities Act] program activities and 
effectiveness may, however, create a problem for federal 
oversight.'' (Safe and Drug-Free Schools: Balancing 
Accountability with State and Local Flexibility. GAO/HEHS-98-3)
    Other researchers have found that the Act has been poorly 
implemented. An evaluation of Safe and Drug-Free Schools and 
Communities Act programs found that few schools implemented 
programs proven effective through research, and that few had 
even evaluated the effectiveness of the programs they were 
using (E. Suyapa Silvia and Judy Thorne, School-based Drug 
Prevention Programs: A Longitudinal Study in Selected School 
Districts, Research Triangle Institute, Research Triangle Park, 
NC, 1997). The reasons found for not implementing quality 
programs include lack of sufficient funds, heavy marketing of 
poor prevention activities, and lack of adequate teacher 
training to properly implement programs.

National Activities

    The Committee purposefully rewrote the Secretary's national 
programs authority from the current Safe and Drug Free Schools 
and Communities Act. In Title V, the Secretary's program 
authority is narrowly focused on those activities for which 
States and local educational agencies have reported needing 
assistance. These activities must fall within scientifically 
based evaluations of prevention programs, assistance in 
dissemination of drug and violence prevention information, and 
technical assistance to States, local educational agencies, and 
other grant recipients.
    Throughout H.R. 1, the Committee has sent a greater 
percentage of funds and more program authority down to the 
local level. Title V is certainly no different. The Committee 
believes that the federal government can provide assistance in 
youth drug and violence prevention, but the responsibility for 
establishing prevention programs and setting priorities for 
prevention programs should remain at the local level. This 
philosophy supports a locally created drug and violence 
prevention effort, rather than a nationally driven agenda and 
related initiatives.
    H.R. 1 takes a constructive approach toward preventing hate 
crimes and prejudice and intolerance. It allows local funds to 
be used for promoting positive behaviors in students.
    Specifically, it allows funds to be used for activities and 
programs regarding character education, including teaching 
honesty, citizenship, courage, justice, respect, personal 
responsibility, and trustworthiness. Additionally, funds may be 
used to develop education programs that prevent school-based 
crime, including preventing crimes motivated by hate. In 
addition, the Committee specifically prohibits any programs or 
publications that abridge or infringe upon the constitutionally 
protected rights of free speech, religion, and equal 
protection.

Gun Free Schools Act

    The Committee retains the current Gun Free Schools Act 
requirements. Current law requires a State that receives 
federal ESEA funds to have a State law requiring local 
educational agencies to expel for a year a student who brings a 
gun to school. H.R. 1 makes minor changes to the Gun Free 
Schools Act. It eliminates the section that requires the 
Secretary to disseminate policy guiding the implementation of 
the Act and its connection to the Individuals with Disabilities 
Education Act (IDEA). Additionally, it codifies the current 
practice of exempting home schools from the Act, by stating, 
``The term ``school'' does not include a home school, 
regardless of whether a home school is treated as a private 
school under State law.'' Finally, the Committee has 
incorporated the suggested clarifications included in a report 
on the implementation of the Gun Free Schools Act by the U.S. 
Department of Education's Office of the Inspector General.

Definitions

    It has been brought to the Committee's attention that some 
schools believe they cannot use current Safe and Drug Free 
Schools and Communities Act funds for activities to prevent the 
use of inhalants. This is a mistaken belief. The Committee 
intends that schools continue to have the ability to use Title 
V funds for activities to prevent the use of inhalants. 
Communities across the nation are facing a growing problem of 
youth using inhalants. Because they are uncontrolled, common 
household products, inhalants are easily accessible by youth. 
Coupling this with the lack of knowledge of the deadly effects 
of inhalant use results in a dangerous situation. The Committee 
urges schools and communities to add inhalant use to their drug 
and violence prevention programs and activities.
    Second, the Committee has included in the term ``drug and 
violence prevention'' a reference to before and after school 
activities and continuing education activities. These are 
``educational activities for individuals of all ages in the 
community that operate with a goal of drug and violence 
prevention in the school or community.'' The Committee notes 
that this definition is key to understanding how it intends 
before and after school programs and continuing education 
activities to operate in the context of drug and violence 
prevention.
    Third, the Committee wishes to clarify that the term 
``school personnel'' includes school bus drivers because it 
includes ``other support staff who are employed by a school or 
who perform services for the school on a contractual basis.'' 
Student drug use and violence is not confined to the school 
building, and can easily occur while students are on the school 
bus traveling to and from school. The Committee encourages 
schools to include school bus drivers in their drug and 
violence prevention strategies and training.

Wrong and Harmful Message

    The Committee has become aware that some local schools, in 
implementing their drug prevention activities, are not 
conveying the message that ``the use of drugs is wrong and 
harmful.'' For instance, the Committee has reviewed an article 
published February 26, 2000 in the San Diego Union-Tribune 
reporting that a program funded under the Safe and Drug-Free 
Schools and Communities Act teaches that ``drugs are likely to 
remain a part of American culture and the key measure of 
success of any drug education program should be a reduction in 
drug problems, not abstinence.'' The Committee strongly 
disagrees with this perspective. Students need clear and 
consistent messages that teach them to resist drug use because 
the use of drugs is wrong and harmful. Students are not well 
served by confusing messages. To remedy this situation, the 
Committee has included in the governor's application and the 
local educational agency application a requirement to provide 
an assurance that drug prevention programs and activities 
funded under the Safe and Drug-Free portion of Title V convey a 
``clear and consistent message that the use of drugs is wrong 
and harmful.''

Parental Consent

    H.R. 1 also requires a local educational agency, upon 
written notification from a student's parent, to withdraw the 
student from any program or activity funded under the Safe and 
Drug-Free part of Title V. Under the amendment, the local 
educational agency must make reasonable efforts to inform 
parents of the content of non-classroom instruction funded 
under Title V. The Committee believes that with the variety of 
activities a school can implement under Title V, including 
services such as mental health services, that it is wise to 
ensure that parents are aware of the services a child receives 
and has the option of withdrawing there child from such 
programs.

        TITLE V, PART B--ENHANCING EDUCATION THROUGH TECHNOLOGY

    The Committee firmly believes that technology can be a 
powerful means for improving student academic achievement. In 
fact, States and local school districts are already 
experimenting with promising technology programs--everything 
from online research to distance learning. The Committee 
believes that such innovation should be encouraged by the 
federal government and bolstered by federal funding. However, 
the Committee also believes that technology is not a means unto 
itself, and that it needs to be fully integrated into the 
curriculum in order to increase student academic achievement.
    According to the General Accounting Office, there are 35 
federal programs spread across eight federal agencies that may 
be used as a source of support for telecommunications and 
information technology in schools and libraries. Unfortunately, 
despite the significant increase in the number of educational 
technology programs, little has been learned as to what works 
and what doesn't. Moreover, according to a recent survey by the 
National Center for Education Statistics, only 20 percent of 
American teachers feel prepared to use new computer 
applications and know how to integrate them into their teaching 
and classrooms.
    Great strides have been made to ensure that schools have 
access to technology and the Internet, but clearly more needs 
to be done, especially in the most disadvantaged communities. 
Similarly, as technology has begun to play a larger role in 
schools, more attention has been paid to the fact that teachers 
need to be given proper training in how to best use technology 
in teaching. National, State and local educational technology 
efforts have begun shifting in the direction of preparing 
teachers in using this new tool, but as the Web-Based 
Commission and others have pointed out, more needs to be done.
    To help further the effort to integrate technology into 
teaching, make sure teachers know how to use technology in 
their teaching, and increase access to technology, the 
Committee has made several significant changes to the current 
technology programs under the Elementary and Secondary 
Education Act (ESEA).

Increasing Flexibility at the Local Level

    One of the most noteworthy changes is the consolidation of 
all the existing ESEA technology programs (except for Ready-To-
Learn Television and the Telecommunications Program for 
Mathematics) into a single performance-based grant program that 
sends more money directly to schools. These consolidated 
programs include the Technology Literacy Challenge Fund, the 
Local Innovation Challenge Grants, Regional Consortia, 
Technology Leadership Activities, Preservice Teacher Training 
in Technology, Community-Based Technology, and Star Schools. 
With a single performance-based technology program, schools 
will no longer have to submit multiple grant applications to 
obtain education technology funding. In addition, the funds 
will no longer be segmented so that comprehensive education 
technology strategies will be easier to implement.
    With the funds provided under this title, schools will have 
the ability to focus on projects and initiatives which best 
meet their particular needs within a framework established by 
States. This recognizes the fact that every school district is 
at a very different level in its use of technology in the 
classroom. While some schools have just begun to acquire 
computers, others will choose to focus these funds solely on 
ensuring teachers have the skills and support necessary to 
effectively use technology. The Committee believes the 
flexibility provided under the Enhancing Education Through 
Technology initiative is significant because it recognizes 
these differing needs.

Improving Student Academic Achievement

    The Committee believes that if technology is properly 
integrated into the classroom, it can greatly enhance the 
degree to which curricula and instruction are engaging and 
individualized. This type of integration provides real-time and 
real-world content and exploration, and promotes student 
collaboration and problem solving. It also encourages students 
to become technologically literate, a crucial skill in the 21st 
Century.
    For example, in 1990, West Virginia implemented the first 
stages of the Basic Skills/Computer Education (BS/CE) program. 
Their success is often cited as the primary example of how 
technology--when implemented with the right focus--may have the 
potential to improve student academic achievement.
    A 1999 study commissioned by the Milken Exchange on 
Education Technology, entitled ``The West Virginia Story: 
Achievement gains from a Statewide comprehensive instructional 
technology program,'' found several positive aspects of the BS/
CE initiative. In particular, the study found that ``the more 
students participated in BS/CE, the more their test scores rose 
on the Stanford 9.'' The report also found the, ``BS/CE was 
more cost effective in improving student achievement than (1) 
class size reduction from 35 to 20 students, (2) increasing 
instructional time, and (3) cross age tutoring programs.'' One 
of the main reasons cited for West Virginia's success was the 
program, ``clearly articulated goals focused upon increased 
student achievement in reading, mathematics and composition.''
    Enhancing Education Through Technology draws from the 
success in States like West Virginia by ensuring the first and 
foremost focus of these funds is to implement technology for 
the purpose of improving student academic achievement. 
Specifically, States and local school districts receiving these 
funds must include in their plans a description of how funds 
will be used to improve student academic achievement. In 
addition, State and local funds may be used for developing and 
implementing enhanced performance measurement systems in order 
to determine the effectiveness of technology in improving 
student academic achievement.
    The Committee also recognizes the ability of schools to use 
these funds for projects that focus on core academic subjects, 
along with components that may include practical applications 
of those subjects. This Part also includes funds for the 
Secretary of Education to conduct a much needed independent, 
long-term study, utilizing scientifically based research 
methods and control groups, on the effectiveness of the uses of 
educational technology on improving student academic 
achievement. The Committee urges the Department to consult with 
appropriate agencies, such as the National Science Foundation, 
in conducting this evaluation.

Increasing Access to Technology

    The nationwide increase in access to technology has been 
significant. In 1994, just 35 percent of schools had Internet 
access but, by 1999, this had risen to 95 percent. This high 
percentage held true even in schools where more than 70 percent 
of the children received free or reduced price school lunch. 
During this same period, the percentage of instructional rooms 
with Internet access increased from just three percent to 63 
percent. Additionally, the student-per-computer ratio dropped 
from 12 to just nine. However, in both of these indicators, 
schools in the highest poverty areas were far less likely to 
have computers in every room (just 39 percent) and the student-
per computer ratio remained relatively high at 16 to one 
(National Center for Education Statistics, ``Internet Access in 
U.S. Public Schools and Classrooms 1994-99,'' February 2000).
    These figures indicate that although there have been 
tremendous gains over the past several years in expanding 
access to technology, students in the poorest school districts 
are still lagging far behind the national average. It is for 
this reason that the Enhancing Education Through Technology 
initiative's new performance-based grant program targets funds 
to those schools with the greatest need.
    At the federal level, 95 percent of the consolidated funds 
are provided to the States through a formula based 50 percent 
on the State's school age population and 50 percent on Title I. 
The Secretary may spend the remaining five percent on 
evaluations, technical assistance, and programs of national 
significance. At the State level, States may spend five percent 
on activities such as providing technical assistance and 
funding innovative programs. From the remainder of the State's 
allocation, 95 percent of the funds are to be directed to local 
educational agencies. Of the total funds going locally, 60 
percent is distributed through a State formula based 100 
percent on Title I, while the remaining 40 percent is 
competitively distributed by the State. Funds may be used for 
increasing access to technology (particularly in high-need 
schools), improving teacher professional development in 
technology, and/or promoting innovative State and local 
initiatives that use technology to increase student academic 
achievement. Under the current program, nearly 42 percent of 
funds are awarded through a grant process by the Secretary as 
opposed to a formula for all States.
    This targeting of funds is a departure from the current 
practices under the two major ESEA technology grant programs. A 
recent GAO study (U.S. General Accounting Office, GAO/HEHS-00-
55, Education Discretionary Grants: Awards Process Could 
Benefit from Additional Improvements, March 2000), reported 
that of 20 current grants under the Technology Innovation 
Challenge Grant program, none had been reported as being 
awarded to grantees with greater than 51 percent poverty. In 
addition, the Department of Education reported in its recent 
program performance report, that only 27 States reported 
awarding 66 percent or more of their FY 97 funds under the 
Technology Literacy Challenge Fund (TLCF) to districts they 
designated as high-poverty (U.S. Department of Education Volume 
II--Individual Programs: 1999 Performance Reports and 2001 
Plans, March 2000, Washington, D.C.). The Enhancing Education 
Through Technology initiative will ensure more funds get to the 
schools that are most in need of obtaining and using education 
technology.

Using Technology to Increase Access to Rigorous Coursework

    An important use of funds under this program is to give 
students access to the highest quality teachers and courses 
possible, regardless of where in the State the students live. 
Using distance-learning technology, many communities are 
already reaching beyond the walls of their local schools to tap 
the best talent and curriculum the State has to offer. The 
Enhancing Education Through Technology initiative recognizes 
the impact this is having around the country, but also the 
potential to reach even more students, and makes funds 
available under this part for such technology.
    Students may be limited in their choice of course offerings 
due to geographic remoteness, or simply a lack of resources at 
their school to offer challenging courses. In this age of 
advanced technology and interconnectivity, no child should have 
to settle for not having access to advanced placement (AP) 
courses or advanced mathematics, science, or other courses 
simply because they live in a remote or rural community, or in 
a poor school district. Often, lack of access to these rigorous 
courses can determine the likelihood of going on to college. 
Distance learning technology can bring in the best teachers and 
courses from any part of the State, and help schools. The 
Committee encourages the use of computers, video conferencing 
technology, and other distance learning technology to increase 
access for all students to the best teachers and curriculum a 
State has to offer.

Enhancing Professional Development in Technology for Teachers

    The Committee believes that the teachers themselves must 
feel comfortable with the technology at hand, and until they 
do, further expenditures in technology are, by and large, 
misplaced. For this reason, under the Enhancing Education 
Through Technology initiative, local school districts are 
required to use at least 20 percent of their funds from a given 
grant, to provide--

          . . . sustained and intensive, high-quality 
        professional development, based on scientifically based 
        research, in the integration of advanced technologies 
        (including emerging technologies) into curriculum and 
        in using those technologies to create new learning 
        environments . . . which effectively prepare students 
        to meet challenging State academic content and student 
        academic achievement standards.

Protecting Students From Harmful Material on the Internet

    The Committee strongly believes that it would be 
irresponsible not to require blocking or filtering technology 
if a local educational agency or school chooses to use ESEA 
funds for Internet access under this part. The goal of this 
particular part is to provide technology to schools in order to 
improve student academic achievement, not to expose students to 
pornographic images and other harmful materials.
    Therefore, the Enhancing Education Through Technology 
initiative maintains the current legal requirement that 
recipients of funds must have technology in place for the 
protection of minors, to filter or block obscenity, child 
pornography, and material that is harmful to minors. For 
adults, recipients of funds must have in place technology to 
filter or block obscenity and child pornography. It also allows 
ESEA technology funds to be used for the purchase of blocking 
or filtering technology.

Ready To Learn, Ready To Teach

    During the mark up of H.R. 1 in Committee, Mr. Fletcher (R-
KY) successfully offered an amendment, co-sponsored by Mrs. 
Roukema (R-NJ) and Mr. Wu (D-OR), to restore the ``Ready To 
Learn Television'' program under a new Subpart in Title V 
entitled ``Ready To Learn, Ready To Teach.'' The Ready To Learn 
Television program authorizes the Secretary to award grants to 
or enter into contracts or cooperative agreements with 
nonprofit entities (including public telecommunications 
entities) to develop, produce, and distribute educational and 
instructional television programming and support materials for 
preschool and elementary school children and their parents.
    Under this Subpart, the Secretary is required to fund the 
Ready To Learn Television program and may also fund the 
development of digital content and a national 
telecommunications-based program to improve the teaching of 
core academic subjects (similar to that of the 
Telecommunications Demonstration Project for Mathematics). The 
amendment also includesnew language, which ensures that an 
eligible entity must have the capacity to negotiate contracts in a 
manner that returns to the program an appropriate share of any 
ancillary income from the sales of any program-related products.

                  TITLE V, PART C--CHARACTER EDUCATION

    With the growing concern for the safety of students and 
teachers in our schools, many have looked to character 
education in the schools as a solution. Making appropriate and 
good choices in life relies upon a strong character, yet some 
children do not get much guidance or support for character 
development. Supporting the ethical, social, and emotional 
development of children will help to create better schools and 
a more compassionate and responsible society.
    Research indicates that character education can help to 
improve behavior and academic achievement. A University of 
Illinois study of four schools using the ``Positive Action'' 
character development program found that the average number of 
incidents requiring disciplinary referral dropped by 74 percent 
after one year, and achievement scores improved by an average 
of 28 percentage points. Standardized test scores of students 
exposed to the ``Responsive Classroom'' program, which 
emphasizes good character, increased 22 percent on average, 
versus just three percent for students not participating in the 
program. A 1997 study demonstrated that students trained in 
``Second Step,'' a character-based violence prevention program, 
used less physical aggression and engaged in more pro-social 
interactions than peers who were not exposed to the character 
curriculum.
    Although character education has traditionally been a 
component of American education, the number of schools 
specifically teaching it has increased over the past few years. 
More than 70 percent of States support character education 
through federally funded pilot programs or legislative 
measures. Federal funding for character development programs 
totaled about $9 million in gants for States or districts for 
fiscal year 2001. In addition, current federal regulations 
limit the number of States that can receive grants each year to 
10.
    H.R. 1 removes the limit of 10 character education grants 
per year and the maximum award of $1 million to States, and 
instead authorizes the Secretary to make up to five-year grants 
to States, LEAS, or consortia of educational agencies for the 
design and implementation of character education programs. 
Under current law, character education programs are authorized 
as part of a group of programs under the Fund for the 
Improvement of Education. H.R. 1 authorizes character education 
as a separate, stand-alone program at $25 million (nearly 
tripling the amount of current funding).
    Specifically, H.R. 1 authorizes the Secretary of Education 
to award grants to State educational agencies, local 
educational agencies, or a consortia of such agencies for the 
design and implementation of character education programs that 
can be integrated in State academic content standards and can 
be carried out in conjunction with other educational reform 
efforts. Each agency or consortium may contract with outside 
sources, including institutions of higher education and private 
and nonprofit organizations (including religious 
organizations), for assistance with evaluation, developing 
secular curricula, and integrating secular character education 
into the curriculum and teaching methods. H.R. 1 ensures that 
decisions about character education and curriculum are made at 
the local level and involves individuals who have daily contact 
with students. In developing local character education 
programs, each recipient of assistance must take into 
consideration the views of the parents of students when 
selecting elements of character that will be taught under the 
program. Elements of character selected under the program may 
include the following: trustworthiness, respect, 
responsibility, fairness, caring, citizenship, and giving.
    The Committee supports the efforts of President Bush to 
improve the academic achievement of our nation's youth and his 
plan for improving our student's character. As Governor Bush 
noted in 1999, ``Yes, we want our children to be smart and 
successful. But even more, we want them to be good and kind and 
decent. Yes, our children must learn how to make a living. But 
even more, they must learn how to live, and what to love. 
`Intelligence is not enough,' said Martin Luther King, Jr. 
`Intelligence plus character--that is the true goal of 
education.'''

     TITLE V, PART D--ELEMENTARY AND SECONDARY COUNSELING PROGRAMS

    During Committee consideration Mrs. Roukema offered an 
amendment, which was adopted, to reauthorize the Elementary 
School Counseling Program, currently located in Title X of 
ESEA. The amendment authorized such sums as necessary to carry 
out the program in which the U.S. Department of Education makes 
grants directly to local educational agencies to increase the 
access of students to qualified school-based mental health 
professionals.

                  TITLE V, PART E--MENTORING PROGRAMS

    During Committee consideration, Mr. Osborne offered a 
``Mentoring for Success'' amendment, which was adopted, to 
encourage schools and communities to be involved in the 
formation of mentoring programs. The amendment creates a new 
federal program for competitive grants from the U.S. Department 
of Education to local educational agencies, community-based 
organizations, or partnerships of the two. All the funding goes 
to the local level for local decision-making.
    Research proves that mentoring works. Evaluation research 
completed by Public/Private Ventures scientifically 
demonstrated what most of us know through experiences--that 
mentoring dramatically improves the lives of children. Youth 
with mentors are 46% less likely to begin using illegal drugs, 
52% less likely to skip school, and 33% less likely to get into 
fights. Students with mentors reported greater confidence in 
their performance at school and better relationships with their 
families. In the United States, about 14 million youth under 18 
are defined as ``at risk'' of getting into trouble and in need 
of a caring adult in their lives. However, today there are only 
approximately 500,000 youths in mentoring relationships.

                          Title VI--Impact Aid

    During the 106th Congress, the Impact Aid Reauthorization 
Act of 2000 was enacted as part of the Floyd D. Spence National 
Defense Authorization Act for fiscal year 2001. Substantial 
changes were made to the Impact Aid program in this 
reauthorization act. However, after the bill was enacted into 
law (P.L. 106-398) new data and information was received that 
revealed some of the changes implemented did not serve their 
fully intended purpose. H.R. 1 includes thetechnical changes 
needed to correct these oversights as well as technical corrections to 
the Impact Aid construction program.

Technical Changes to Section 8002 (Payments for Federal Acquisition of 
        Real Property)

    As enacted in the 106th Congress, the bill established a 
new ``hold harmless'' formula for distributing funds to 
eligible school districts. Recipients of funds under Section 
8002 supported this formula change. After enactment, the U.S. 
Department of Education received information that more recent 
assessments indicated that the new formula would not provide 
the intended equitable distribution of funds. Therefore, the 
Committee has included a small modification to current law that 
will ensure that school districts of all sizes receive a fair 
share of funds under Section 8002.
    The formula in Section 8002(h) [Payments With Respect To 
Fiscal Years when there are Insufficient Appropriations] 
provides a foundation formula that will insure that small-rural 
school districts are not unfairly discriminated against when 
pro-rating funds under subsection (h). In both the second tier 
of the formula that distributes a portion of funds to 1995 
recipients, and in the second half 4(B) of the last tier that 
distributes a portion of funds to all recipients, payments are 
based upon the proportion that a district's assessed value of 
its federal property is to the ``total eligible national 
assessed value of the eligible federal property'' of all 
eligible districts. Because tax assessment practices differ 
substantially among localities and States, and because the 
equalizing effect of a locality's tax rate for different types 
of property is not taken into account in these elements of the 
foundation formula, the formula is likely to result in an 
inequitable distribution of Section 8002 funds.
    H.R. 1 addresses this issue by changing the formula (in the 
final tier only) to base these proportions on a district's 
Section 8002 maximum amount, which reflects both the assessed 
value of the eligible federal property and the local real 
property tax rate for current expenditures, rather than only 
upon the assessed value of the eligible federal property. This 
will ensure that 75 percent of the new money will be 
distributed under the same philosophy used in the base Section 
8002 program which uses both property assessment plus the local 
tax rate when determining a district's maximum payment.

Other Technical Changes to the Impact Aid Program

    H.R. 1 also includes other minor technical changes to the 
Impact Aid Reauthorization Act of 2000. These include minor 
modifications to the section of the formula benefiting small 
school districts; and modifications to Section 8009 (equalized 
States) to clarify that funds provided to school districts 
based on their identification as ``heavily impacted'' would be 
exempt from State equalization. H.R. 1 also extends the 
authorization for the Impact Aid program through FY 2006 to 
make it conform to the other titles of the Elementary and 
Secondary Education Act.

Technical Changes to the Impact Aid Construction Program

    Title VI of H.R. 1 also makes technical corrections to the 
Impact Aid construction program to correct a misinterpretation 
of the eligibility requirements for certain grants made by the 
Department of Education. Specifically, it clarifies that an LEA 
is considered to be unable to fund construction needs through 
bond issues if the assessed value of the taxable property 
within the LEA is less than $25 million. This ensures that 
federally impacted LEAs with the greatest need can qualify for 
the full cost of repairs to correct emergency situations that 
threaten the health or safety of their students. H.R. 1 also 
clarifies that an LEA is considered to have minimal capacity to 
fund construction needs through bond issues if the assessed 
value of the taxable property within the LEA is greater than 
$25 million but less than $50 million, and the LEA has already 
used at least 75 percent of its existing bonding authority for 
other construction needs. This will allow federally impacted 
LEAs with low bonding capacity that are making an effort to 
meet their own construction needs to qualify for some federal 
funding to address health or safety needs within their schools. 
Title VI also separates the application process for emergency 
grants from that of modernization grants, and clarifies that 
the Secretary is to fund projects that address threats to the 
health and safety of students or school staff prior to funding 
grants intended only for school modernization. These provisions 
will improve the application process and ensure that scarce 
federal funds are targeted to LEAs with the greatest need for 
assistance.

               Title VII--Flexibility and Accountability

Part A--State Accountability for Improving Academic Achievement

    The Committee views this Part as critical to the effective 
implementation of the President's plan because it provides for 
real and significant consequences for success or failure. These 
rewards and sanctions are designed to change the long and anti-
productive trend in federal programs of rewarding failure and 
ignoring success. Under Title VII, Part A, the rewards are 
neither too easy to get, nor so powerful as to give the federal 
government excessive sway over State decision-making. Likewise, 
the sanctions are not easily applied, or so punitive that 
reform and improvement are impaired. Both the rewards and 
sanctions are designed to fit within the overall context of the 
bill and to support a productive relationship between the 
federal government and the States.

Rewards

    Part A of Title VII provides rewards for States that make 
significant progress in academic achievement for students 
primarily based on State academic assessment results. Reward 
funds are allocated to States based on the progress of students 
from low-income families and from racial or ethnic minority 
groups, for students as a whole and for limited English 
proficient students. In order to receive a reward, progress on 
State assessments must be confirmed by a second indicator 
consisting of the National Assessment of Educational Progress 
(NAEP) or another assessment selected by the State.
    The Committee believes the ability of the State to choose 
an assessment other than NAEP as a confirmation of State 
assessment results is key to allowing States flexibility in 
achieving the goals of the bill. The alternative assessment 
must meet, however, strict criteria that ensures it will be 
valid, reliable, and able to produce results that can be both 
disaggregated and expressed in terms of the achievement levels 
described in Title I.
    Under Title VII of H.R. 1, NAEP assessments (or an 
alternative, independent assessment selected by the State) 
would be administered annually in reading and mathematics in 
fourth and eighth grade to serve as a ``second snapshot'' of 
how the State is doing academically. As Mark Musick, Chairman 
of the National Assessment Governing Board, which administers 
NAEP, told the Committee at a hearing on March 8, 2001, ``this 
is about seeing if achievement in America is moving in the same 
direction. This is about confirming that gaps are closing, 
particularly the ethnic and the socioeconomic student 
achievement gaps.'' The ``first snapshot,'' or measure of how 
students in the State are doing academically, would be the 
annual State assessments in reading and mathematics developed 
under Title I, Part A. If a State is making significant 
progress on the Title I, Part A assessments and the ``second 
snapshot'' assessment (NAEP or the independent assessment), as 
well as making progress in improving the English proficiency of 
students with limited English proficiency, then the State would 
be eligible for a financial reward from the Secretary of the 
Department of Education. The Committee emphasizes that rewards 
are provided when both indicators show progress. The ``second 
snapshot'' cannot, by itself, provide the basis for rewards 
even though it may show increases in academic achievement. In 
addition, the Secretary may take into account other 
considerations in determining the size of the reward, such as 
graduation rates and the percentage of students who take 
Advanced Placement (AP) or International Baccalaureate (IB) 
courses and pass exams associated with the AP and IB classes.
    It is the Committee's view that the ``confirmation'' of 
State assessment results with NAEP or an independent assessment 
is not to be a complex statistical process, but rather a simple 
comparison that the average person would agree with by simply 
looking at the direction of student academic achievement gains 
on both assessments.
    While the rewards are primarily based on a State's progress 
as compared to its own past performance, the Secretary is 
granted some discretion to grant larger awards to States based 
on population, as well as the relative amount of progress a 
State has made.
    A State that receives an award from the Secretary under 
this part is required to then provide awards to public 
elementary or secondary schools in the State that made the most 
significant progress in raising student academic achievement. 
The schools, once they have received the award from the State, 
may use the funds for any educational purpose allowed by State 
law.

NAEP and the Independent Assessment

    The National Assessment of Educational Progress (NAEP) is a 
series of random sample tests commonly referred to as the 
``Nation's Report Card,'' which measures the academic progress 
of elementary and secondary students in the United States. NAEP 
consists of tests of students in grades four, eight, and 12 in 
reading, writing, science, mathematics and other subjects. The 
NAEP tests are voluntary and administered to a representative 
sample of students. By design, no student takes an entire test 
and accordingly there are no individualized test results.
    The Committee recognizes the concerns of those who fear 
that the second snapshot test, and the use of State NAEP 
especially, will lead to a national test or curriculum. 
Although the President proposed in his No Child Left Behind 
initiative that NAEP alone be used for the purpose of 
confirming State assessment results for rewards and sanctions 
and shining a spotlight on States' progress in narrowing 
achievement gaps, the Committee has provided States with the 
option to select an alternative assessment that meets certain 
criteria. Many States, school districts and other groups such 
as the Business Coalition for Excellence in Education support 
using NAEP alone for purposes of the ``second snapshot.'' The 
Committee heard from Lisa Graham Keegan, Superintendent of 
Instruction in Arizona, who testified before the Committee on 
March 14, 2001, that ``in Arizona, we do have a lot of 
confidence in the standards on which NAEP is based. We've been 
using it for years, you all use it in your statistics all the 
time. For the moment, it's quite strong . . . So we would 
recommend using it as sort of a sunshine instrument.''
    However, the Committee heard from many who opposed the use 
of NAEP alone, and thus H.R. 1 allows States to select an 
independent assessment other than NAEP for purposes of 
confirming their State assessment results. The criteria for 
such a test is included in Section 1111(c) as well as this 
part. These criteria are designed to ensure that States select 
a high quality test that is not specifically designed to match 
their standards. Specifically, the independent assessment must 
(1) be administered annually; (2) yield high quality data that 
are valid and reliable; (3) meet widely recognized professional 
and technical standards, including specific and rigorous test 
security procedures; (4) be developed by an entity independent 
from each State and local government agency in the State in a 
manner that protects against any conflict of interest; (5) have 
no test questions that are identical to the test questions used 
by the assessment used to meet the State assessment 
requirements under section 1111; (6) provide results in such a 
form that they may be expressed in terms of achievement levels 
that are consistent with the achievement levels (basic, 
proficient, and advanced) set forth in section 1111; (7) 
provide results in such a form that they may be disaggregated, 
at a minimum, according to income level and major racial and 
ethnic group; and (8) be administered to all students or to a 
representative sample of students in the 4th and 8th grades 
Statewide, with a sample size that is sufficiently large to 
produce statistically significant estimates of Statewide 
student achievement.
    The Committee encourages States to select an independent 
assessment or NAEP to provide a rigorous assessment of student 
progress in that State. The purpose of the second assessment is 
to encourage States to set high standards and academic 
achievement and therefore States should select an assessment 
with that goal in view.
    It is not the Committee's intent that this legislation 
would reduce participation in the national NAEP assessment, or 
other subject areas assessed by NAEP.

Sanctions

    Section 7102 provides sanctions for States that fail to 
make adequate yearly progress for their disadvantaged students 
and students from racial and ethnic minority groups. If the 
State declines on both the annual State assessments under 
Section 1111 and the second indicator (NAEP or the alternative 
assessment) for two consecutive years, then the State would be 
subject to a 30 percent reduction in the amount of funds that 
it may reserve for administrative purposes. States receiving a 
sanction do not lose these funds. Instead of spending the funds 
on administrative purposes the funds must be reallocated to 
local educational agencies for school improvement purposes 
under Section 1116.
    If a State continues to fail to make adequate yearly 
progress on their Title I, Part A assessments and the second 
indicator for the two years following the initial failure of 
two consecutive years outlined above, then the Secretary may 
further reduce a State's administrative funds up to an 
additional 45 percent.
    Again, the Committee would emphasize that the State must 
fail to improve on both the annual State assessments required 
under Title I, Part A and the second indicator (NAEP or the 
alternative assessment) to be sanctioned under this Part.
    Furthermore, in order to hold States accountable for the 
important goal of improving English language proficiency, there 
are additional sanctions. If a State fails to meet the adequate 
yearly progress required under Title I, Part A for limited 
English proficient (LEP) students for two consecutive years, or 
the State fails to meet the acquisition of English language 
proficiency required under Title I, Part A for LEP students for 
two consecutive years, then the State is subject to an 
additional 20 percent reduction in administrative funds.

Development of State Standards and Assessments

    Section 7103 directs the Secretary to provide States with 
funds to develop the annual assessments required under Title I, 
Part A, or if a State has developed those assessments, to carry 
out other activities related to ensuring accountability for 
results in the State's schools and local educational agencies, 
including the costs of administering such assessments. States 
that have already developed their annual assessments may also 
use these funds to improve the quality of their assessments, 
and are encouraged to do so by the Committee.
    This section was amended in Committee by Mr. Schaffer (R-
CO) to clarify that while States may enter into partnerships 
with other States, such partnerships are not required. 
Partnerships, while encouraged by the Committee as a means of 
saving costs and developing higher quality assessments, are not 
required. Mr. Schaffer's amendment also makes it clear that 
H.R. 1 provides funds for States to strengthen the capacity of 
local educational agencies and schools to provide all students 
the opportunity to increase educational achievement. The bill 
does not authorize the Secretary to require States to provide 
educational facilities, instructional materials, or curriculum 
to all students.
    In addition, the Secretary is authorized to provide bonuses 
for States that have annual assessments for grades 3 through 8 
in place prior to the 2004-2005 school year. Section 7104 
authorizes $40 million for these bonuses for fiscal year 2002.

Funding

    Under H.R. 1, the expenses of NAEP for purposes of Title 
VII accountability would be covered 100 percent from federal 
resources. In addition, the costs of the alternative, 
independent assessment that may be selected instead of NAEP 
would be offset. Sixty-nine million dollars are authorized for 
such purposes. If the alternative assessment is chosen, funds 
would be provided to offset the cost of administering such an 
assessment, provided such costs do not exceed the cost the 
State would incur if it had used NAEP. The Secretary is 
authorized under Section 7101 to develop a methodology for 
allocating funds to States that select an independent 
assessment instead of the NAEP.
    Section 7104 also authorizes 400 million dollars for fiscal 
year 2002 to allocate funds for States to develop their 
assessments, as described in Section 7103. Because test 
development costs are somewhat independent of the population of 
a State, 50 percent of these funds are to be divided equally 
among the States. The other 50 percent is to be allocated on 
the basis of population.

 TITLE VII, PART B--FUNDING FLEXIBILITY FOR STATE AND LOCAL EDUCATION 
                                AGENCIES

    Part B of Title VII grants States and local educational 
agencies unprecedented flexibility to target federal dollars to 
meet State and local priorities. It dramatically enhances 
flexibility for local school districts, giving them the freedom 
to make spending decisions with up to 50 percent of the federal 
education dollars they receive, as long as they demonstrate 
results. Under current law, federal rules frequently can 
prevent States and local school districts from spending federal 
dollars as effectively as possible to meet the unique needs of 
students.
    This funding flexibility option is based on a little-used 
provision in current law. Under current law, if a State 
educational agency approves, the unneeded funds provision in 
Section 14206 of Title XIV of ESEA of 1965 allows school 
districts to shift a percentage of funding from one ESEA 
program to another in any fiscal year. In order to be granted 
permission to shift these funds, a school district must 
demonstrate that the funds are not needed for their original 
purposes. Up to five percent of these programs' funds may be 
shifted to any of these programs:
          Title I, Part C (Education of Migratory Children)
          Title II (Eisenhower Professional Development 
        program)
          Title III, Subpart 2 of Part A (Technology Innovation 
        Challenge Grants)
          Title IV, Subpart I of Part A (Safe and Drug-Free 
        Schools, Grants to LEAS)
          Title VI (Innovative Education Program Strategies)
    Five percent may also be transferred into, but not out of, 
Title I, Part A (Grants to LEAS).
    The unneeded funds provision is too limited to provide 
useful flexibility to school districts or States. In September 
1998, the GAO reported that the ``unneeded funds'' option is 
``often unavailable and seldom used.'' In their survey of 50 
State educational agencies, only half reported that they 
allowed local school districts to take advantage of this 
provision. Even when it was offered, it was rarely used. 
Districts took advantage of this option in only one third of 
the States that allowed them to do so. One State (not named by 
GAO) did make use of this provision, with more than ten percent 
of its districts exercising the provision.
    The Committee has heard from school districts around the 
country that they want meaningful flexibility in using their 
federal dollars. The unneeded funds provision is insufficient 
because it only allows a small percentage to be transferred, 
which for all but the largest school districts means that a 
very small amount of money is flexible. Limiting this option to 
a small amount offunds provides little in the way of an 
incentive to school districts to jump through the appropriate 
bureaucratic hoops to shift funds from one account to another. Five 
percent is simply too little to make a difference. In addition, States 
are not given the option of shifting State activity dollars, even 
though they are free to consolidate administrative funds from different 
programs.
    Several groups representing people involved in education at 
the local level have been supportive of this flexibility 
provision in the past, including the: American Association of 
School Administrators, the Association of Educational Service 
Agencies, the Council of the Great City Schools, the National 
Association of Secondary School Principals, the National School 
Boards Association, and the Rural Education Association. In a 
May 7, 2001, letter supporting H.R. 1 sent to Members of 
Congress, the American Association of School Administrators 
wrote that the bill ``offers substantial flexibility at the LEA 
level that will have an enormous effect on the ability for 
individual districts to respond to what is needed . . . [b]y 
allowing the LEA to shift money around according to their 
needs, they are able to maintain the most appropriate education 
for their students in need.'' Their support is extremely 
significant, as they represent the people on the front lines 
who have to administer these federal programs. Clearly, it is 
those closest to the schools that see the need and the value of 
transferability.
    The State and Local Transferability Act in H.R. 1 provides 
meaningful flexibility to States and local school districts by 
significantly increasing the percentage that they may transfer 
from one program to another. SEAs may transfer up to 50 percent 
of their State activity dollars into another program. LEAs may 
transfer up to 50 percent from one program to another without 
SEA permission. Title I remains protected.

State Transferability

    In H.R. 1, States are permitted to transfer up to 50 
percent of their State activities funds between formula grant 
programs (i.e. formula grant to the State). These programs are:
          Title II (Teachers)
          Title IV, Part A (Innovative Programs)
          Title V, Part A (Safe and Drug Free Schools and 21st
          Century Schools)
          Title V, Part B (Technology)
    Title I funds would not be transferable to non-Title I 
programs, but non-Title I funds may be transferred into Title I 
programs.
    This provision provides States with flexibility that they 
currently only have with their federal administrative dollars, 
giving them the freedom to target resources and focus on State 
priorities, such as accountability and testing, teacher 
quality, or school safety.
    It is the Committee's intent that only the non-
administrative portion of the funds explicitly setaside for use 
at the State level by the statute could be transferred under 
this authority, not funds that are required by the statute to 
be allocated to local educational agencies. States transferring 
these funds must modify their consolidated plans to reflect the 
transfer of funds.

Local Transferability

    Local educational agencies may transfer up to 50 percent 
out of a program's fiscal year allocation, to another program 
or programs, without requesting permission from the State. By 
allowing school districts to transfer a portion of funds 
without the permission of their State, the Act provides them 
with flexibility to tailor their federal dollars to their needs 
while still meeting the specific program requirements of each 
federal program.
    H.R. 1 permits school districts identified as being in need 
of improvement to transfer 30 percent of their federal funds 
rather than 50 percent, and only for the purpose of funding 
school improvement activities. Schools identified for 
corrective action and restructuring under Section 1116 may not 
transfer funds.
    School districts may transfer funds from one of the 
following federal formula grant programs to another:
          Title II (Teachers)
          Title IV, Part A (Innovative Programs)
          Title V, Part A (Safe and Drug Free Schools)
          Title V, Part B (Technology-formula portion only)
    Because the 21st Century Community Learning Centers program 
is a competitive grant program within States, local educational 
agencies would not be able to transfer those funds.
    Title I funds would not be transferable to non-Title I 
programs, but non-Title I funds may be transferred into Title 
I. This grants local school districts the flexibility to target 
additional resources, if they so choose, to meet the needs of 
the most disadvantaged students.
    A local educational agency can make more than one transfer 
out of a single federal program with out requesting State 
permission, as long as the total amount of the funds 
transferred does not constitute more than 50 percent of the 
total amount allocated to them for a fiscal year. Such 
transfers would allow school districts to focus resources on 
federal programs that most effectively address their most 
pressing needs. This threshold applies to the total amount 
transferred out of one program regardless of the amount of a 
single transfer.
    It is the Committee's intent that, whenever a State or 
local educational agency intends to transfer funds to or from a 
program that has a provision requiring consultation with 
appropriate private school officials, the provision requiring 
such consultation shall apply to the transfer of such funds in 
accordance with Section 8503(c).
    As provided in the unneeded funds provision in current law, 
State and local school districts may transfer funds from the 
above programs into any part of Title I, but no funds can be 
transferred out of Title I into another program. States and 
school districts would be free to allocate transferred funds to 
supplement any aspect of their Title I program activities. The 
purpose of this provision is to protect funding for Title I 
programs. However, by allowing transfers into Title I, it also 
grants local educational agencies the flexibility to focus 
their limited federalresources on meeting the needs of 
disadvantaged students and meeting State and Title I accountability 
requirements.
    When funds are transferred to another program, they assume 
the identity of the program to which they were transferred, and 
are governed by the requirements of that program. However, LEAs 
must continue to meet the requirements of all federal programs 
with the remaining funds that are not transferred to another 
program.

                     Title VIII--General Provisions

    Title XIV of current law of the Elementary and Secondary 
Education Act (ESEA) contains general provisions that affect 
all federal K-12 education programs. These general provisions 
are modified and moved to Title VIII of the ESEA under H.R. 1. 
The general provisions are divided into several parts: Part A--
Definitions; Part B--Flexibility in the Use of Administrative 
and Other Funds; Part C--Coordination of Programs and 
Consolidated State and Local Plans and Applications; Part D--
Waivers; Part E--Uniform Provisions; Part F--Sense of the 
Congress; and Part G--Evaluations.

                    TITLE VIII, PART A--DEFINITIONS

    The Committee has added several new definitions to the list 
of defined terms for the ESEA programs, modified other 
definitions, and moved some definitions from various individual 
programs into the general provisions.
    Definitions which have been moved to the general provisions 
from individual programs or which are new to the general 
provisions include ``child with a disability,'' ``effective 
schools program,'' ``essential components of reading 
instruction,'' ``family literacy services,'' ``fully 
qualified'' in reference to teachers, ``limited English 
proficient student,'' ``Native American and Native American 
Language,'' ``reading,'' ``rigorous diagnostic reading and 
screening assessment tools,'' and ``scientifically based 
research.'' Definitions which appear in the general provisions 
of current law and which have been modified include ``covered 
program'' ``outlying area,'' ``parent,'' and ``technology.''

TITLE VIII, PART B--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER 
                                 FUNDS

    Under current law, section 14201 of ESEA, a State may 
consolidate its administrative funds from Title I of the ESEA, 
the Eisenhower professional development program, the technology 
programs, the Safe and Drug-Free Schools program, and the 
Innovative Education Program Strategies grants, and apply the 
consolidated funds to the State's costs of administering this 
group of programs, rather than applying each funding source 
only to the administrative costs for that one program.
    According to a study prepared for the Department of 
Education and entitled Living in Interesting Times: Early State 
Implementation of New Federal Education Laws, only nine States 
have completely consolidated their administrative funds, and 
many State administrators appear to be confused as to what 
extent, if at all, administrative funds have been consolidated 
in their States. However, for States that have consolidated 
administrative funds, they have found the experience to be a 
positive one. Consolidation has eliminated the requirement of 
tracking time and effort of personnel assigned to individual 
federal education programs. Collaboration across federal 
education programs has also increased. In many cases, 
consolidated administrative funds have made it easier for 
States to fund salaries, fringe benefits, and training and 
conference expenses.
    While the provision in current law is a positive one, the 
Committee finds no sound reason why the authority to combine 
administrative funds at the State level should not be extended 
to all ESEA programs. Section 8201 would extend such authority 
to all ESEA programs for which funds are authorized to be used 
for administration at the State level.
    Similarly, current law section 14203 allows for 
consolidation of funds for local administration for certain 
ESEA programs. As with State administrative funds, the 
Committee has included language in section 8203 allowing all 
ESEA administrative funds at the local level to be combined. A 
1998 General Accounting Office report on the usefulness of 
federal flexibility provisions found the current law provision, 
in practice, to be frequently unavailable and seldom used by 
local educational agencies (LEAs). In GAO's survey of State 
educational agencies, about one third reported that they did 
not allow LEAs to combine administrative funds. It is the 
Committee's understanding that in some States, a barrier to the 
use of this option is the State or State educational agency's 
failure to establish an additional fiscal account line for 
managing these combined funds. This is largely an 
implementation problem. Accordingly, the Committee would 
strongly encourage States to take all necessary steps, 
including the modification of accounting procedures, to make 
this option available to LEAS.

 TITLE VIII, PART C--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND 
                      LOCAL PLANS AND APPLICATIONS

    In general, to receive funding for most federal education 
programs, States and LEAs must submit plans or applications to 
either the State or federal government. These plans or 
applications typically describe how the funds will be used, 
certify that federal procedures will be followed, and provide 
assurances that the funds will be spent in accordance with the 
purpose or purposes of the program.
    Section 14302 of current law gives States the option of 
consolidating State plans or applications that they submit to 
the United States Department of Education for specified ESEA 
education programs. This means that a State educational agency, 
in consultation with the Governor, may submit one plan that 
covers two or more of the specified programs. In similar 
fashion, section 14305 gives LEAs the option of consolidating 
local plans or applications that they submit to the State. As 
with the provisions on consolidated administrative funds, the 
Committee has expanded and rewritten current law sections 14302 
and 14305 as sections 8302 and 8305 to allow all ESEA programs 
to be included in a single State or LEA plan. Consolidated 
plans eliminate bureaucratic paperwork requirements, promote 
greater coordination between programs, and in general, give 
States and localities the flexibility they need to better 
administer federal education resources. As with consolidation 
of administrative funds, States that have used consolidated 
plans have found the benefits to be quite positive. In 
Virginia, for example, the use of a singleconsolidated plan has 
allowed funding for cross program planning, eliminated the need to 
track personnel time and effort in individual programs, and eliminated 
the need to develop separate program plans.
    It is the view of the Committee that all States must allow 
all LEAs to submit consolidated plans. The statute requires 
this in current law section 14305 (section 8305 in H.R. 1). On 
February 16, 1999, Carlotta Joyner of the General Accounting 
Office (GAO) sent then-Secretary of Education Richard Riley a 
memo concerning several States that may not have been 
implementing these flexibility provisions. GAO reported in its 
memo that in a survey of 50 State educational agencies, ten 
States reported that they require LEAs to submit separate plans 
for at least one of the programs covered under the law, in 
order to receive federal program dollars. Under ESEA, though, 
States may require LEAs to submit consolidated plans, but they 
cannot require them to submit separate plans for each of these 
covered programs. As a result, school districts in these States 
are not able to take advantage of the reductions in paperwork 
requirements that have been available under current law for 
several years. Consequently, in an effort to address this 
problem, H.R. 1 clearly states in section 8305 that States 
cannot require local educational agencies to submit separate 
plans for each federal program. The Committee strongly 
recommends that the Secretary communicate this to States so 
LEAs can take advantage of this flexibility.
    Part C of the general provisions also includes a new 
provision on consolidated reporting. Section 8303 gives the 
Secretary authority to establish procedures for allowing a 
State educational agency, in consultation with the Governor, to 
submit consolidated annual reports on ESEA programs. This bill 
language reinforces efforts already underway at the Department 
to use a single report in lieu of separate individual annual 
reports.

                      TITLE VIII, PART D--WAIVERS

    The general authority of the Secretary of Education to 
waive statutory and regulatory requirements of federal K-12 
education programs is found in Part D, section 14401, of the 
current ESEA. Under H.R. 1, this waiver authority is found in 
section 8401. The basic concept behind waiver authority is that 
States and LEAs may have a better way of implementing federal 
education programs and this authority enables them to do so. 
For too many years, the federal government has had a top-down, 
one-size-fits-all approach to education that has proven itself 
flawed. In recognition of this fact, Congress has begun to 
provide more flexibility to States and LEAs via the waiver 
process. Generally, the Title VIII waiver authority in H.R. 1 
allows the Secretary to consider requests from States and LEAs 
for waivers of any statutory or regulatory requirement with 
several exceptions. The Committee has continued the waiver 
authority and made minor conforming changes so that the 
Secretary's waiver authority is generally consistent with the 
waiver authority granted to States under the Education 
Flexibility Partnership Act (P.L. 106-25).
    Under current law, the Secretary may not waive statutory or 
regulatory requirements relating to the following: (1) 
allocation or distribution of funds to State educational 
agencies, local educational agencies, or other recipients of 
ESEA funds; (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) 
charter school requirements; (9) prohibitions regarding State 
aid and the use of funds for religious worship or instruction. 
In section 8401(c)(9) the Committee has added to the list of 
things that cannot be waived. The prohibitions that are 
included are: prohibition on funds being used to develop or 
distribute materials or operate programs or courses of 
instruction directed at youth that are designed to encourage 
sexual activity, whether homosexual or heterosexual; 
prohibition on funds being used to distribute or to aid in the 
distribution by any organization of legally obscene materials 
to minors on school grounds; prohibition on funds being used to 
provide sex education or HIV prevention education in schools 
unless such instruction is age appropriate and emphasizes the 
health benefits of abstinence; and prohibition on funds being 
used to operate a program of contraceptive distribution in 
schools.

                 TITLE VIII, PART E--UNIFORM PROVISIONS

    Part E includes what is commonly referred to as the 
``uniform provisions.'' These provisions include maintenance of 
effort, the participation by private school students and 
teachers in ESEA programs, prohibitions against funds being 
used for religious worship or instruction, rules of 
construction relating to home schools and private schools, 
prohibitions against federal control or endorsement of 
curriculum, prohibitions against the federal government 
requiring States to have academic content standards or 
achievement standards approved or certified by the federal 
government, privacy protections for individual assessment 
results, and prohibitions relating to sex education and 
contraceptive distribution, and other matters.
    With respect to the uniform provisions, the Committee 
wishes to make clear that the intent of this Act is that the 
standards and assessments mentioned in the Act measure academic 
knowledge of math and reading, as opposed to applied and 
contextual learning that focus on student workplace skills and 
competencies. To the extent such research is available, 
classroom instruction should be based on rigorous 
scientifically based research. The bill does not authorize the 
Secretary to define the term ``academic'' for the States. 
States may define the term ``academic'' as they see fit, or not 
at all.
    The Committee has made several significant changes to 
current law. The Committee has included language on private 
school consultations with school district officials that is 
parallel to the language in Title I Part A (Improving the 
Academic Performance of Disadvantaged Students). In general, 
LEAs are required to consult with private school officials when 
arranging for the provision of equitable services under ESEA 
programs to private school students and staff. However, 
Catholic school officials have informed the Committee that in 
some areas of the country, public school districts provide 
little or no consultation with private officials.
    To help address these concerns, H.R. 1 requires LEAs to 
consult with private school officials not only on how and where 
the services will be provided, as under current law, but also 
on the selection of the contractor that provides the services, 
in situations where contractors are utilized. In addition, the 
LEA must tell how the services will be assessed, and how the 
results of that assessment will be used to improve the services 
to private school children. The consultations must involve not 
only meetings prior to the public school district making a 
decision on theservices, but also throughout the implementation 
and assessment of the services. Such measures will help ensure that 
high quality services are provided to private school children.
    The bill also makes an additional clarifying change to 
private school participation and bypass provisions under Title 
VIII. The change would add the word ``entity'' to such 
provisions. The Committee does not intend for the addition of 
this word to change how section 1309(1)(B) is implemented 
relative to local operating agencies.
    Earlier this year, the Committee heard from many 
organizations representing private schools and home schools who 
expressed concerns that the bill be clear that its requirements 
should not apply home schools, nor should the requirements 
apply to private schools if private schools do not receive ESEA 
funds or services. Accordingly, the Committee has made 
absolutely clear that the requirements do not apply to home 
schools nor to private schools that do not receive ESEA funds 
or services. The bill language that clarifies these points is 
found in sections 8508 and 8509.
    During mark-up of H.R. 1, Rep. Pete Hoekstra (R-MI) offered 
an amendment which further strengthened the home school 
protections. The amendment passed by voice vote. The amendment 
modified section 8508 to ensure that regardless of whether a 
home school is treated as a home school or private school under 
State law, a home school is not be affected by the ESEA. In 
addition, students who are home schooled are not required to 
participate in the assessments referenced in the ESEA. The 
amendment also strengthened section 8511 by clarifying that 
nothing in the ESEA nor in any other act administered by the 
Department of Education is to be construed as authorizing any 
federal control over any private, religious or home school.
    The Committee has also heard from many individuals who are 
concerned that individual assessment results be protected from 
disclosure to third parties. Section 8510 protects the privacy 
of assessment results by reiterating the applicability of the 
parental consent and other requirements of General Education 
Provisions Act to individual assessment results that become a 
part of a student's education records.
    The Committee has included new language on school prayer 
protections. Current law states that any State or school 
district that has been found by a federal court to have 
willfully violated a court order with respect to school prayer 
is ineligible to receive ESEA funds. Sadly, this law erects 
several hurdles in the paths of students who wish to exercise 
their right to pray at school. First, current law requires one 
to have first gone to federal court and previously obtained an 
order against a school district or State. Second, one must 
additionally prove in court that a State or school district has 
willfully violated the order, before the State or school 
district would be subject to losing education funds. This 
framework is flawed. It provides a remedy only after a student 
has been compelled to go to court two times--once to get an 
initial court order and the second time to show there has been 
a violation of the court order. This puts a burden upon 
students who are simply trying to exercise a basic 
constitutional right.
    The Committee has replaced the school prayer provision from 
current law with a simple provision in Section 8512 which 
requires, as a condition for receipt of funds under ESEA, that 
a LEA certify in writing to the Secretary of Education that no 
policy of the agency prevents or otherwise denies participation 
in constitutionally protected prayer in public schools. Nothing 
in this provision is to be construed as affecting or altering 
the Equal Access Act.
    During the mark-up of the No Child Left Behind Act of 2001, 
an amendment was offered by Rep. Bob Schaffer (R-CO) to make 
clarifying changes to Title I (Improving the Academic 
Performance of the Disadvantaged), Title VII (Accountability) 
and Title VIII (General Provisions). With respect to Title 
VIII's general provisions, the amendment makes clear that under 
section 8514, officers and employees of the federal government 
are prohibited from mandating, directing, or controlling any 
curriculum, programs of instruction or allocation of State and 
local resources. The amendment passed by voice vote.
    The Committee has added new language in Section 8515 which 
ensures that regulations may be promulgated by the Secretary 
only to the extent that such regulations are necessary to 
ensure compliance with specific requirements and assurances 
required under the ESEA. This provision is consistent with 
language that has been included separately in individual 
education programs in recent years. It is included here to 
cover all elementary and secondary programs.
    Section 8516 requires the Secretary to report to Congress 
on how the Secretary will go about ensuring that audits comply 
with changes in H.R. 1.
    Section 8517 of the bill ensures that under no 
circumstances may the federal government require any States to 
have their academic standards approved or certified by the 
federal government. This further ensures the autonomy and 
control of States over their academic standards.
    The Committee has added new language in Section 8518 
prohibiting the endorsement or approval of any curriculum by 
the U.S. Department of Education. A few years ago, pursuant to 
authority under federal law, the Secretary of Education 
identified as ``exemplary'' and ``promising'' several 
questionable math programs that had been supported by the 
National Science Foundation. These programs were referred to as 
``fuzzy math,'' in part, because they adhered to a philosophy 
of math that minimized essential computational skills, were not 
based on sound scientific research, and promoted lower levels 
of proficiency in mathematics. Section 8518 will protect 
against any federal funds being used to endorse, approve or 
sanction any curriculum.
    Decisions about school curricula have been and continue to 
be local decisions. The federal government must take care not 
to have its heavy hand override State, local or parental choice 
in curricula, or use its influence or imprimatur to pressure 
State and local schools to implement national math standards.
    Section 8519 clarifies that nothing in H.R. 1 gives 
authority for any kind of development of a national database of 
personally identifiable information on individuals involved in 
studies or data collection efforts. This has been a concern in 
recent years and accordingly, the Committee has made abundantly 
clear that there is no authority in ESEA for the Department to 
develop national databases of personally identifiable 
information
    Section 8520 is a severability clause. It provides that if 
any provision of the legislation is held invalid, then the 
remainder of the legislation shall be unaffected.

                 TITLE VIII, PART F--SENSE OF CONGRESS

    Part F of Title VIII includes a Sense of Congress on 
Paperwork Reduction, a Sense of Congress regarding memorials on 
campus, a prohibition on any kind of mandatory national 
certification of teachers and paraprofessionals, and a 
prohibition on national tests.
    With respect to the Sense of Congress on Paperwork 
Reduction, many superintendents, principals, and teachers 
continue to spend significant time in filling out paperwork for 
federal education programs, and accordingly, the Committee has 
included a statement of Congress on this matter.
    The Committee has also included a Sense of Congress 
provision in Section 8604 regarding religious memorial services 
and religious memorials located on school campuses. The 
language was prompted by the circumstances surrounding the 
courageous actions of Cassie Bernall at Columbine High School 
in Littleton, Colorado, a few years ago. The Committee bill 
states that Congress does not find religious services or 
religious memorials that are located on campus to honor others 
that may have been slain on campus to be objectionable. This 
statement sends a clear signal that Members of Congress believe 
schools and communities should be free to honor their 
classmates through a religious service or memorial erected on 
campus.
    The Committee clarifies in section 8602 that the Secretary 
of Education is prohibited from using any federal funds to 
plan, develop, implement or administer any kind of mandatory 
national teacher or paraprofessional test or certification. 
This provision sends a clear message that such certifications 
and tests are within the authority of State and local 
governments, and not the federal government.
    Finally, the Committee has included a prohibition on 
national tests to make clear that under no circumstances is 
H.R. 1 intended to grant any authority to the federal 
government to develop, implement or administer any national 
test. The new tests in reading and math in grades 3-8 
authorized in Title I, Part A of H.R. 1 are to be developed by 
States, not the federal government. This prohibition on 
national tests is included in section 8603 and complements 
existing prohibitions in the General Education Provisions Act 
that were enacted into law a few years ago.

                    TITLE VIII, PART G--EVALUATIONS

    Part G of H.R. 1 continues the authority of the Secretary 
to carry out evaluations and studies of the effectiveness of 
programs under the ESEA using up to one half or one percent of 
the amount appropriated for such programs.
    Part G also transfers the authority for Title XIII programs 
(Comprehensive Regional Assistance Centers, the National 
Diffusion Network, the Eisenhower Regional Mathematics and 
Science Education Consortia, and the Technology Based Technical 
Assistance) of ESEA to Title VIII. It is the intent of the 
Committee that these programs will be addressed more fully 
during the reauthorization of the Office of Educational 
Research and Improvement.

 TITLE IX, PART A, SUBPART I--NATIONAL EDUCATION STATISTICS ACT (NESA)

    Title IX, Part A, Subpart 1, section 901 of H.R. 1 includes 
conforming changes to section 411 of the National Education 
Statistics Act (NESA). Section 411 of NESA provides the 
authority under current law for the National Assessment of 
Educational Progress (NAEP), which is a series of random sample 
tests commonly referred to as the ``Nation's Report Card'' 
which measures the academic progress of elementary and 
secondary students in the United States. NAEP consists of tests 
of students in grades 4, 8, and 12 in reading, writing, 
science, mathematics and other subjects.
    The NAEP tests are voluntary and administered to a 
representative sample of students. By design, no student takes 
an entire test and there are no individualized test results. 
Results are provided in the aggregate for the nation as a whole 
and on a State-by-State basis.
    With respect to the rewards and sanctions under Title VII, 
section 411 of the National Education Statistics Act is amended 
by section 901 of H.R. 1 to specifically authorize the annual 
use of NAEP reading and mathematics assessments in fourth and 
eighth grades. Section 411 is also amended to delete the 
requirement that States are to pay for a share of the expenses 
of NAEP. The expenses of NAEP, as well as the expenses of the 
alternative independent assessments (if a State chooses this 
approach in lieu of NAEP), would be provided for through 
federal appropriations with no required State share. For a more 
detailed discussion of rewards and sanctions, see the Committee 
views for Title VII, Part A of this report.

            TITLE IX, PART A, SUBPART 2--HOMELESS EDUCATION

    H.R. 1 reauthorizes the McKinney-Vento Homeless Education 
Assistance Improvements Act of 2001. The McKinney-Vento 
Homeless Education Assistance Act currently requires that 
States provide estimates of the number of homeless children and 
youth in their States and information about their access to 
education and related services. This provision has resulted in 
widely varying data in both quality and quantity. The lack of a 
uniform method of data collection has resulted in unreliable 
national data. H.R. 1 eliminates the requirement that the State 
homeless coordinator estimate the number of homeless children 
in the State and the number of homeless children served by the 
program. Under H.R. 1, this responsibility is placed under the 
authority of the Secretary who shall, either directly or 
through grants, contracts, or cooperative agreements, 
periodically collect and disseminate data and information on 
the number and location of homeless children and youth; the 
education and related services such children and youth receive; 
and the extent to which such needs are being met. The result of 
these changes to the McKinney-Vento Homeless Education 
Assistance Act will enable a more reliable and uniform data 
collection method that will help guide Congress in making 
accurate funding decisions.
    Many homeless children and youth are forced to wait days 
and even weeks before they can enroll in school because they do 
not have the necessary paperwork required for enrollment such 
as proof of residency, previous academic records, birth 
certificates, and other documentation.
    According to the FY 1997 Department of Education Report to 
Congress (issued in 1999), States reported that lack of school 
records and birth certificates were among the most frequent 
reasons for homeless children and youth not attending school. 
In addition, the report noted that lack of documentation is 
among the reasons that 45 percent of homeless children and 
youth were not attending school on a regular basis during their 
homelessness. H.R. 1 directs schools to immediately enroll a 
homeless child even if they are unable to produce the documents 
normally required for enrollment. In cases where a homeless 
child does not have immunization records, the enrolling school 
shall promptly refer his or her parent or guardian to the 
homeless liaison to assist in obtaining immunizations or 
immunization records.
    Homeless liaison personnel have played a key role in 
establishing relations between families, schools, shelters, and 
other homeless service agencies. H.R. 1 requires local 
educational agencies to designate a homeless liaison 
responsible for ensuring that homeless children are regularly 
attending school and are receiving equitable access to high-
quality education and support services. The liaison can be a 
federal programs coordinator, Title I coordinator, or other 
program staff.
    Many homeless children are forced to change schools because 
shelters or other temporary living accommodations are not 
located in the same school district as their school, or because 
they lack transportation. Forty-one percent of homeless 
students attend two different schools, and 28% attend three or 
more schools in a single year. This mobility puts children at 
great risk for academic failure. In response to these findings, 
H.R. 1 directs local educational agencies to continue homeless 
children's education in their school of origin, to the extent 
feasible, unless the parent or guardian wishes otherwise, for 
the duration of homelessness.
    Nationwide, the lack of transportation is one of the most 
pervasive barriers to enrollment and success in school for 
homeless children and youth. According to the FY 1997 
Department of Education Report to Congress (issued in 1999), 
the lack of transportation to or from temporary residences was 
the most frequent reason given by States as to why homeless 
children and youth did not attend school. Forty States listed 
transportation as a major need to be addressed to ensure the 
individual academic success of a homeless child or youth. H.R. 
1 directs State and local educational agencies to ensure that 
transportation is provided to the school of origin, at the 
request of the parent or guardian (or, in the case of an 
unaccompanied youth, the request of the liaison). H.R. 1 will 
enhance access to education, as well as educational continuity.
    Lack of awareness about the McKinney-Vento Homeless 
Education Assistance Act often prevents homeless families and 
youth from obtaining education, and from knowing who to contact 
for help with school enrollment and other education issues. 
H.R. 1 improves dissemination of information about the 
educational rights of homeless students by requiring school 
districts to disseminate public notice in schools, family 
shelters, soup kitchens, and other locations where students 
receive services. The Committee also instructs the Secretary of 
Education to create a public notice of the educational rights 
of homeless children and youth and disseminate this 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.
    The Office of State Coordinator for the Education of 
Homeless Children and Youth oversees all local educational 
agencies in a State, including those that do not receive 
McKinney-Vento Homeless Education Assistance Act funds. These 
LEAs are often in need of technical assistance and support in 
order to respond to the needs of their homeless students. Some 
States have responded to the need to provide Statewide 
technical assistance and support to all school districts by 
creating Statewide initiatives. These initiatives have had 
great success in expanding the reach of McKinney-Vento funds 
and increasing support for the enrollment and school success of 
homeless children Statewide. In order to successfully implement 
Statewide initiatives, the Committee provides States more 
flexibility in the reservation of funds for such activities.
    Lack of clarity about who is considered homeless for the 
purposes of this subtitle have prevented many students in 
certain homeless situations (for example, students living in 
doubled-up arrangements due to lack of shelter space or other 
accommodations, motels, etc.) from enrolling and attending 
school. H.R. 1 incorporates previously existing federal 
guidance on definitions of homelessness in order to clarify 
eligibility for this subtitle. The Committee also defines 
``enroll'' as the right to attend classes and fully participate 
in school programs. This definition will help to eliminate the 
practice of ``enrolling'' homeless students in school, but not 
actually allowing them to attend class until paperwork is 
provided.
    H.R. 1 contains language that prohibits a State receiving 
funds under the McKinney-Vento Homeless Education Assistance 
Act from segregating a homeless child, either in a separate 
school or in a separate program within a school, based on that 
student's status as homeless. However, this provision contains 
a grandfather clause that ensures established schools do not 
lose funding.

                       TITLE IX, PART B--REPEALS

    Part B of Title IX of H.R. 1 repeals the following statutes 
and programs: (1) Part A (National Education Goals Panel) and 
Part C (Authorization of Appropriations) of Title II of the 
Goals 2000: Educate America Act; (2) Title VI (International 
Education Program) of the Goals 2000: Educate America Act; (3) 
Title XVII of Public Law 106-65 (Troops-to-Teachers Program Act 
of 1999); (4) Title IX (Native American Education, Native 
Hawaiians, and Alaska Native Education) of the Elementary and 
Secondary Education Act; (5) Title X, Part A (Fund for the 
Improvement of Education) of the Elementary and Secondary 
Education Act; (6) Title X, Part B (Gifted and Talented) of the 
Elementary and Secondary Education Act; (7) Part C of Title X 
(Charter Schools) of the Elementary and Secondary Education 
Act; (8) Part D of Title X (Arts in Education) of the 
Elementary and Secondary Education Act; (9) Part F of Title X 
(Civics Education) of the Elementary and Secondary Education 
Act; (10) Part I of Title X (21st Century Community Learning 
Centers) of the Elementary and Secondary Education Act; (11) 
Part J of Title I (Urban and Rural Education) of the Elementary 
and Secondary Education Act; (12) Part L of Title X (Physical 
Education for Progress) of the Elementary and Secondary 
Education Act; (13) Title XI (Coordinated Services) of the 
Elementary and Secondary Education Act; and (14) Title XII 
(Education Infrastructure) of the Elementary and Secondary 
Education Act.
    The Committee notes that some of the programs that are 
repealed have been consolidated into other programs, some have 
been rewritten and continued elsewhere under the revised 
structure of the Elementary and Secondary Education Act, and 
some have been eliminated altogether. H.R. 1 eliminates or 
consolidates 34 federal Elementary and Secondary Education Act 
(ESEA) programs out of a total of 66, streamlining nearly 50 
percent of the federal K-12 education role.

                      Section-by-Section Analysis

    Section 1--sets forth the short title of this act as the 
`No Child Left Behind Act of 2001.'
    Section 2--states that except as otherwise specifically 
provided in this act, whenever in this act an amendment or 
repeal is expressed as the amendment 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.
    Section 3--states that except as otherwise specifically 
provided in this act, or any amendment made by this act, any 
person or agency that was awarded a grant under the Elementary 
and Secondary Education Act of 1965 prior to the date of the 
enactment of this act shall continue to receive funds in 
accordance with the terms of such award, except that such funds 
may not be provided after the date that is one year after the 
effective date of this act.
    Section 4--contains the table of contents.
    Section 5--states that except as otherwise specifically 
provided in this act, this act, and the amendments made by this 
act, shall take effect on October 1, 2001, or on the date of 
the enactment of this act, whichever occurs later.

    Title I--Improving the Academic Performance of the Disadvantaged

                         Part A--Basic Program

    Section 101--amends Section 1001 as follows:
    ``Section 1001 provides the findings; statement of purpose; 
and recognition of need.''
    Section 102--amends Section 1002 as follows:
    ``Section 1002 provides for the authorization of 
appropriations.''
    Section 103--amends Section 1003 as follows:
    ``Section 1003 states the reservation for school 
improvement.''
    Section 104--amends the heading for part A of title I and 
sections 1111 through 1115 as follows:

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

``Subpart 1--Basic Program Requirements

    ``Section 1111 sets forth provisions for state plans.
    ``Section 1112 contains provisions for local educational 
agency plans.
    ``Section 1113 sets forth provisions for eligible school 
attendance areas.
    ``Section 1114 states provisions for schoolwide programs.
    ``Section 1115 sets forth provisions for targeted 
assistance schools.''

    Section 105 amends Section 1115A as follows:
    ``Section 1115A provides for school choice. This section 
contains provisions for an optional public school choice 
program, including a provision to allow title I funds to be 
used for transportation services.''
    Section 106 amends the section heading and subsections (a) 
through (d) of section 1116 as follows:
    ``Section 1116 contains provisions relating to local 
review, school and local educational agency improvement 
provisions, technical assistance, corrective action and school 
restructuring; provisions for providing public school choice 
for students attending low-performing schools, including the 
use of funds for transportation services; provisions for 
supplemental services for disadvantaged students.''
    Section 107 amends section 1117 as follows:
    ``Section 1117 sets forth provisions pertaining to state 
assistance for school support and improvement.''
    Section 108 amends sections 1118 through 1127 as follows:
    ``Section 1117A provides for the Academic Achievement 
Awards program.
    ``Section 1118 sets provisions for parental involvement in 
programs under this section.
    ``Section 1119 establishes qualifications for teachers and 
paraprofessionals.
    ``Section 1119A sets forth provisions for professional 
development.
    ``Section 1120 contains provisions pertaining to the 
participation of children enrolled in private schools.
    ``Section 1120A sets fiscal requirements.
    ``Section 1120B sets coordination requirements.

``Subpart 2--Allocations

    ``Section 1121 provides grants for the outlying areas and 
the Secretary of the Interior.
    ``Section 1122 establishes amounts for basic grants, 
concentration grants, and targeted grants.
    ``Section 1124 sets forth provisions for basic grants to 
local educational agencies.
    ``Section 1124A contains provisions for concentration 
grants to local educational agencies.
    ``Section 1125 sets forth provisions for targeted grants to 
local educational agencies.
    ``Section 1126 sets forth provisions for special allocation 
procedures.
    ``Section 1127 contains provisions for carryover and waiver 
authority.
    ``Section 1128 states that any school that receives funds 
under this part shall ensure that educational services or other 
benefits provided under this part, including materials and 
equipment, shall be secular, neutral, and nonideological.''

           Part B--Student Reading Skills Improvement Grants

    Section 111--amends part B of title I as follows:

          ``Part B--Student Reading Skills Improvement Grants

Subpart 1--Reading First

    ``Section 1201 states the findings of Congress.
    ``Section 1202 states the purposes of this subpart.
    ``Section 1203 sets forth provisions for formula grants to 
states.
    ``Section 1204 contains provisions regarding state formula 
grant applications.
    ``Section 1205 sets forth provisions for discretionary 
grants to states.
    ``Section 1206 provides for external evaluation.
    ``Section 1207 sets forth provisions for national 
activities.
    ``Section 1208 sets forth provisions for the dissemination 
of information.
    ``Section 1209 states the definitions for this subpart.

``Subpart 2--Early Reading First

    ``Section 1221 states the purposes of this subpart.
    ``Section 1222 sets forth provisions for local early 
reading first grants.
    ``Section 1223 requires the Secretary to consult with the 
Secretary of Health and Human Services in order to coordinate 
the activities undertaken under this subpart with programs 
under the Head Start Act.
    ``Section 1224 states reporting requirements for this 
subpart.
    ``Section 1225 states evaluation requirements for this 
subpart.
    ``Section 1226 provides additional research requirements.''

    Section 112--further amends part B of title 1, as amended 
by section 111, as follows:

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

    Section 113--sets forth provisions regarding the 
Inexpensive Book Distribution Program.

                Part C--Education of Migratory Children

    Section 121--amends section 1303 regarding state 
allocations.
    Section 122--amends section 1304 pertaining to state 
applications; services.
    Section 123--amends section 1306 as follows:
    ``Section 1306 states the authorized activities.''
    Section 124--amends section 1308 regarding the coordination 
of migrant education activities.

                 Part D--Neglected or Delinquent Youth

    Section 131--amends the heading for part D of title I as 
follows:

    ``Part D--Prevention and Intervention Programs for Neglected or 
                    Delinquent Children and Youth.''

    Section 132--amends section 1401 regarding findings related 
to neglected and delinquent youth.
    Section 133--amends section 1412 pertaining to the 
allocation of funds.
    Section 134--amends section 1414 as follows:
    ``Section 1414 sets forth provisions for state plan and 
state agency applications.''
    Section 135--amends section 1415 regarding the use of 
funds.
    Section 136--amends section 1418 pertaining to transition 
services.
    Section 137--amends section 1421 regarding the purpose of 
this part.
    Section 138--amends section 1422 regarding programs 
operated by local educational agencies.
    Section 139--amends section 1423 pertaining to local 
educational agency applications.
    Section 140--amends section 1424 pertaining to the uses of 
funds.
    Section 141--amends section 1425 regarding program 
requirements.
    Section 142--amends section 1431 regarding program 
evaluations.

             Part E--Federal Evaluations and Demonstrations

    Section 151--amends section 1501 as follows:
    ``Section 1501 sets forth provisions aimed at evaluating 
programs assisted under this title.''
    Section 152--amends section 1502 regarding demonstrations 
of innovative practices.
    Section 153--further amends part E of title I by adding at 
the end the following:
    ``Section 1503 sets forth provisions for the Ellender-Close 
Up Fellowship Program.
    ``Section 1504 contains provisions for dropout reporting.''

                  Part F--Comprehensive School Reform

    Section 161--amends part F of title I as follows:

                 ``Part F--Comprehensive School Reform

    ``Section 1601 contains provisions regarding comprehensive 
school reform.''

           Part G--Rural Education Flexibility and Assistance

    Section 171--amends title I by adding at the end the 
following new part:

          ``Part G--Rural Education Flexibility and Assistance

    ``Section 1701 establishes the short title of this part as 
the `Rural Education Initiative Act.'
    ``Section 1702 sets forth the findings of Congress 
regarding rural education.

``Subpart 1--Rural Education Flexibility

    ``Section 1711 provides formula grant program 
authorization.
    ``Section 1712 provides program authorization.
    ``Section 1713 sets forth provisions designed to ensure 
accountability.

``Subpart 2--Rural Education Assistance

    ``Section 1721 provides program authorization.
    ``Section 1722 sets forth provisions regarding state 
distribution of funds.
    ``Section 1723 contains provisions for applications.
    ``Section 1724 sets forth provisions for reports.
    ``Section 1725 contains provisions for a performance 
review.
    ``Section 1726 states the definitions for this subpart.

``Subpart 3--General Provisions

    ``Section 1731 provides a definition for this part.''

                 Part H--General Provisions of Title I

    Section 181--further amends title I by adding at the end 
the following:

                      ``Part H--General Provisions

    ``Section 1801 sets forth provisions for federal 
regulations.
    ``Section 1802 contains provisions regarding agreements and 
records.
    ``Section 1803 sets forth provisions for state 
administration.
    ``Section 1804 provides a local administrative cost 
limitation.
    ``Section 1805 states that nothing in this title shall be 
construed to affect home schools nor shall any home schooled 
student be required to participate in any assessment referenced 
in this title.
    ``Section 1806 states that nothing in this title shall be 
construed to affect any private school that does not receive 
funds or services under this title, nor shall any student who 
attends a private school that does not receive funds or 
services under this title be required to participate in any 
assessment referenced in this title.
    ``Section 1807 ensures the privacy of assessment results.''

     Title II--Preparing, Training, and Recruiting Quality Teachers

    Section 201--amends title II, part A as follows:

    ``Title II--Preparing, Training, and Recruiting Quality Teachers

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

    ``Section 2001 states the purpose.

``Subpart 1--Grants to States to Prepare, Train, and Recruit Qualified 
        Teachers

    ``Section 2011 sets forth provisions for formula grants to 
states.
    ``Section 2012 provides for within-state allocations.
    ``Section 2013 sets forth provisions for applications by 
states.

``Subpart 2--Math and Science Partnerships

    ``Section 2021 states the purpose.
    ``Section 2022 sets forth provisions for application 
requirements.
    ``Section 2023 contains provisions for math and science 
partnership subgrants.
    ``Section 2024 sets forth the evaluation and accountability 
plan.
    ``Section 2025 contains provisions for reports and the 
revocation of subgrants.
    ``Section 2026 sets forth definitions.

``Subpart 3--Subgrants to Local Educational Agencies

    ``Section 2031 contains provisions for the local use of 
funds.
    ``Section 2032 provides for local applications.
    ``Section 2033 sets forth professional development for 
teachers.
    ``Section 2034 contains provisions for teacher opportunity 
payments.

``Subpart 4--Mid-Career Transitions to Teaching

            ``Chapter I--Troops-to-Teachers Program
    ``Section 2041 establishes authorization of the Troops-to-
Teachers program.
    ``Section 2042 contains provisions for the recruitment and 
selection of program participants.
    ``Section 2043 provides for participation agreement and 
financial assistance.
    ``Section 2044 sets forth provisions regarding 
participation by states.
    ``Section 2045 contains provisions for the support of 
innovative preretirement teacher certification programs.
    ``Section 2046 states reporting requirements.
    ``Section 2047 states definitions.
            ``Chapter II--Transition to Teaching
    ``Section 2048 contains provisions regarding professionals 
seeking to change careers.

``Subpart 5--Funding

    ``Section 2051 states authorizations of appropriations.

``Subpart 6--General Provisions

    ``Section 2061 states definitions.''

    Section 202--transfers the National Writing Project from 
part K of title X to part B of title II.
    Section 203--amends title II by creating a part C and D, 
Civic Education and Teacher Liability Protection as follows:

                       ``Part C--Civic Education

    ``Section 2201 states the short title of this part as the 
`Education for Democracy Act.'
    ``Section 2202 sets forth the findings of Congress.
    ``Section 2203 states the purpose.
    ``Section 2204 establishes authority.
    ``Section 2205 contains provisions regarding the We The 
People Program.
    ``Section 2206 sets forth Cooperative Civic Education and 
Economic Exchange Programs.
    ``Section 2207 contains provisions regarding funding.

                 ``Part D--Teacher Liability Protection

    ``Section 2301 sets forth provisions for teacher 
immunity.''

Title III--Education of Limited English Proficent Children; Indian and 
                        Alaska Native Education

 Part A--Education of Limited English Proficient and Immigrant Children

    Section 301--amends the heading for title III as follows:

 ``Title III--Education of Limited English Proficient Children; Indian 
                      and Alaskan Native Education

    ``Part A--Education of Limited English Proficient and immigrant 
                                Children

``Subpart 1--English Language and Academic Instructional Programs

    ``Section 3101 states the short title of this subpart as 
the `English Language Proficiency and Academic Achievement 
Act.'
    ``Section 3102 states the findings and purposes.
    ``Section 3103 sets forth provisions for parental 
notification and consent for English language instruction.
    ``Section 3104 sets forth provisions for the testing of 
limited English proficient children.
    ``Section 3105 sets forth formula grants to states.
    ``Section 3106 contains provisions for Native American and 
Alaska Native children in school.
    ``Section 3107 sets forth provisions for applications by 
states.
    ``Section 3108 contains provisions for subgrants to 
eligible entities.
    ``Section 3109 sets forth provisions for the distribution 
of gants to eligible entities.
    ``Section 3110 states authorizations of appropriations.

``Subpart 2--Administration

    ``Section 3121 provides for evaluations.
    ``Section 3122 sets forth reporting requirements.
    ``Section 3123 provides for coordination with related 
programs.

``Subpart 3--General Provisions

    ``Section 3131 sets forth the definitions.
    ``Section 3132 establishes the rules of construction.
    ``Section 3133 establishes the limitation on federal 
regulations.
    ``Section 3134 sets forth the legal authority under state 
law.
    ``Section 3135 sets forth civil rights.
    ``Section 3136 contains provisions for programs for Native 
Americans and Puerto Rico.''

    Section 302--the conforming amendment to the Department of 
Education Organization act amends Section 216 as follows:
    ``Section 216 contains provisions regarding the Office of 
Educational Services for Limited English Proficient Children.

               Part B--Indian and Alaska Native Education

    Section 311--amends title III (as amended by section 301 of 
this act) by adding at the end the following new part:

             ``Part B--Indian and Alaskan Native Education

``Subpart 1--Indian Education

    ``Section 3201 states the findings of Congress.
    ``Section 3202 states the purpose.
            ``Chapter I--Formula Grants to Local Educational Agencies
    ``Section 3211 states the purpose.
    ``Section 3212 sets forth provisions for grants to local 
educational agencies.
    ``Section 3213 establishes the amount of grants.
    ``Section 3214 contains provisions for applications 
submitted to the Secretary.
    ``Section 3215 provides for authorized services and 
activities.
    ``Section 3216 sets for provisions for the integration of 
services authorized.
    ``Section 3217 contains provisions for student eligibility 
forms.
    ``Section 3218 sets forth provisions for payments.
    ``Section 3219 establishes the state educational agency 
review.
            ``Chapter II--Special Programs and Projects to Improve 
                    Educational Opportunities for Indian Children
    ``Section 3221 contains provisions for the improvement of 
educational opportunities for Indian children.
    ``Section 3222 provides for professional development for 
teachers and education professionals.
            ``Chapter III--National Research Activities
    ``Section 3231 sets forth provisions for national 
activities.
            ``Chapter IV--Federal Administration
    ``Section 3241 contains provisions for the National 
Advisory Council on Indian Education.
    ``Section 3242 sets forth provisions for peer review.
    ``Section 3243 establishes preference for Indian 
applicants.
    ``Section 3244 establishes minimum grant criteria.
            ``Chapter V--Definitions; Authorizations of Appropriations
    ``Section 3251 sets forth definitions.
    ``Section 3252 states authorizations of appropriations.

    Section 312--amends part B of title III (as amended by 
Section 311 of this act) by adding at the end the following new 
subpart:

``Subpart 2--Alaska Native Education

    ``Section 3301 states the short title of this subpart as 
the `Alaska Native Educational Equity, Support, and Assistance 
Act.'
    ``Section 3302 states the findings of Congress.
    ``Section 3303 states the purpose.
    ``Section 3304 sets forth provisions for the authorization 
of the program.
    ``Section 3305 sets forth administrative provisions.
    ``Section 3306 sets forth definitions.

    Section 313--amends part B of title XI of the Education 
Amendments of 1978 as follows:

              ``Part B--Bureau of Indian Affairs Programs

    ``Section 1120 states findings and policy.
    ``Section 1121 provides for accreditation and standards for 
the basic education of Indian Children in Bureau of Indian 
Affairs Schools.
    ``Section 1122 provides the national criteria for home-
living situations.
    ``Section 1123 states the codification of regulations.
    ``Section 1124 establishes school boundaries.
    ``Section 1125 contains provisions for facilities 
construction.
    ``Section 1126 establishes the Bureau of Indian Affairs 
education functions and policy.
    ``Section 1127 contains provisions for the allotment 
formula.
    ``Section 1128 provides for administrative cost grants.
    ``Section 1129 establishes the Division of Budget Analysis 
under the director of the office.
    ``Section 1130 sets forth uniform direct funding and 
support.
    ``Section 1131 provides for policy for tribal control of 
Indian education.
    ``Section 1132 contains provisions for Indian education 
personnel.
    ``Section 1133 provides for the computerized management 
information system.
    ``Section 1134 establishes uniform education procedures and 
practices.
    ``Section 1135 provides for the recruitment of Indian 
educators.
    ``Section 1136 contains provisions pertaining to the 
biennial report and audits.
    ``Section 1137 sets forth the rights of Indian students.
    ``Section 1138 contains provisions for regulations.
    ``Section 1138A contains provisions for regional meetings 
and negotiated rulemaking.
    ``Section 1139 contains provisions for the early childhood 
development program.
    ``Section 1140 sets forth provisions for tribal departments 
or divisions of education.
    ``Section 1141 sets forth the definitions.''

    Section 314--amends Sections 5202 through 5212 of Public 
Law 100-297 as follows:
    ``Section 5202 states the findings of Congress.
    ``Section 5203 sets forth the declaration of policy.
    ``Section 5204 contains, provisions for grants authorized.
    ``Section 5205 provides for the composition of grants.
    ``Section 5206 sets forth eligibility for grants.
    ``Section 5207 contains provisions for the duration of 
eligibility determination.
    ``Section 5208 contains provisions pertaining to the 
payment of grants and the investment of funds.
    ``Section 5209 sets forth provisions for the application 
with respect to the Indian Self Determination and Education 
Assistance Act.
    ``Section 5210 establishes the role of the director.
    ``Section 5211 sets forth regulations.
    ``Section 5212 contains provisions for the tribally 
controlled grant school endowment program.
    ``Section 5213 sets forth the definitions.''

  Title IV--Promoting Informed Parental Choice and Innovative Programs

    Section 401--amends title IV as follows:

 ``Title IV--Promoting Informed Parental Choice and Innovative Programs

                     ``Part A--Innovative Programs

    ``Subpart 1--State and Local Innovative Programs
    ``Section 4101 sets forth findings and the statement of 
purpose.
            ``Chapter 1--State and Local Programs
    ``Section 4111 provides for allocations to states.
    ``Section 4112 sets forth allocation to local educational 
agencies.
            ``Chapter 2--State Programs
    ``Section 4121 contains provisions pertaining to the state 
use of funds.
    ``Section 4122 sets forth provisions for state 
applications.
            ``Chapter 3--Local Innovative Education Programs
    ``Section 4131 contains provisions pertaining to the use of 
funds.
    ``Section 4132 establishes administrative authority.
    ``Section 4133 sets forth provisions for local 
applications.
            ``Chapter 4--General Provisions
    ``Section 4141 sets forth provisions for the maintenance of 
effort and federal funds supplementary.
    ``Section 4142 contains provisions pertaining to the 
participation of children enrolled in private schools.
    ``Section 4143 establishes federal administration.
    ``Section 4144 sets forth the definitions.
    ``Section 4145 states the authorization of 
appropriations.''

``Subpart 2--Arts Education

    ``Section 4151 contains provisions regarding assistance for 
arts education.

``Subpart 3--Gifted and Talented Children

    ``Section 4161 states the short title of this subpart.
    ``Section 4162 states the findings of Congress and the 
purpose.
    ``Section 4163 sets forth the rule of construction.
    ``Section 4164 contains provisions pertaining to the 
authorized programs.
    ``Section 4165 sets forth provisions regarding program 
priorities.
    ``Section 4166 sets forth the general provisions.
    ``Section 4167 states the authorization of appropriations.

    Section 402--sets forth the continuation of awards.

                     Part B--Public Charter Schools

    Section 411--amends part B of title IV as follows:

                    ``Part B--Public Charter Schools

    ``Section 4201 states the findings and purpose.
    ``Section 4202 sets forth provisions regarding the program 
authorized.
    ``Section 4203 contains provisions for applications.
    ``Section 4204 sets forth provisions regarding 
administration.
    ``Section 4205 contains provisions regarding national 
activities.
    ``Section 4206 provides for federal formula allocation 
during the first year and for successive enrollment expansions.
    ``Section 4207 establishes solicitation of input from 
charter school operators.
    ``Section 4208 provides for records transfer.
    ``Section 4209 reduces paperwork for eligible applicants or 
charter schools.
    ``Section 4210 sets forth the definitions.
    ``Section 4211 establishes the authorization of 
appropriations.''

    Section 412--sets forth the continuation of awards.

     Part C--Magnet Schools Assistance; Women's Educational Equity

    Section 421--amends part C of title IV as follows:

    ``Part C--Magnet Schools Assistance; Women's Educational Equity

``Subpart 1--Magnet Schools Assistance

    ``Section 4301 states the findings of Congress.
    ``Section 4302 states the purpose.
    ``Section 4303 authorizes the program.
    ``Section 4304 sets forth the definitions.
    ``Section 4305 contains provisions regarding eligibility.
    ``Section 4306 sets forth applications and requirements.
    ``Section 4307 states the priority.
    ``Section 4308 contains provisions regarding the use of 
funds.
    ``Section 4309 states the prohibitions.
    ``Section 4310 states the limitations.
    ``Section 4311 contains provisions regarding evaluations.
    ``Section 4312 contains provisions regarding the 
authorization of appropriations and reservation.''

    Section 422--transfers Women's Educational Equity from part 
B of title V to subpart 2 of part D of title IV.
    Section 423--establishes the continuation of awards.

                     Title V--21st Century Schools

    Section 501--amends title V, except part B (which is 
transferred and re-designated as subpart 2 of part D of title 
IV by section 432 of this act) as follows:

                    ``Title V--21st Century Schools

    ``Part A--Supporting Violence and Drug Prevention and Academic 
                               Enrichment

    ``Section 5001 states the short title of this part as the 
`2lst Century Schools Act of 2001.'
    ``Section 5002 states the purpose of this part.
    ``Section 5003 provides for the authorization of 
appropriations.

``Subpart 1--Safe Schools

    ``Section 5111 sets forth provisions for reservations and 
allotments.
    ``Section 5112 provides for a reservation of state funds 
for safe schools.
    ``Section 5113 contains provisions pertaining to state 
applications.
    ``Section 5114 provides for a formula grant program.
    ``Section 5115 contains provisions regarding authorized 
activities.
    ``Section 5116 sets forth provisions for evaluation and 
reporting.

``Subpart 2--21st Century Schools

    ``Section 5121 sets forth provisions regarding state 
allotments for 21st Century Schools.
    ``Section 5122 contains provisions pertaining to state 
applications.
    ``Section 5123 provides for a competitive grant program.
    ``Section 5124 sets forth provisions regarding local 
activities.

``Subpart 3--National Programs

    ``Section 5131 contains provisions pertaining to federal 
activities.

``Subpart 4--Gun Possession

    ``Section 5141 states gun-free school requirements.

``Subpart 5--General Provisions

    ``Section 5151 states the definitions for this part.
    ``Section 5152 contains provisions for the message and 
materials.
    ``Section 5153 sets forth provisions for parental consent.
    ``Section 5154 states prohibited uses of funds.

            ``Part B--Enhancing Education Through Technology

    ``Section 5201 states the short title of this part as the 
`Enhancing Education Through Technology Act of 2001.'
    ``Section 5202 states the purposes of this part.
    ``Section 5203 provides for the authorization of 
appropriations; funding rule.
    ``Section 5204 states the definitions of this part.

``Subpart 1--State and Local Technology for Success Grants

    ``Section 5211 contains provisions pertaining to state 
grant allotment.
    ``Section 5212 states the uses of the allotment by a state.
    ``Section 5213 contains provisions regarding state 
applications.
    ``Section 5214 sets forth provisions pertaining to local 
applications.
    ``Section 5215 contains provisions pertaining to state 
activities.
    ``Section 5216 sets forth provisions for local activities.

``Subpart 2--National Technology Activities

    ``Section 5221 contains provisions regarding national 
activities.

``Subpart 3--Ready to Learn, Ready to Teach

    ``Section 5231 sets forth provisions pertaining to Ready to 
Learn Television.
    ``Section 5232 provides for a telecommunications program.

                     ``Part C--Character Education

    ``Section 5301 provides for the Character Education 
program.
    ``Section 5302 provides for the authorization of 
appropriations.

     ``Part D--Elementary and Secondary School Counseling Programs

    ``Section 5401 provides for elementary and secondary school 
counseling programs.

                      ``Part E--Mentoring Programs

    ``Section 5501 provides definitions for this part.
    ``Section 5502 states the purposes of this part.
    ``Section 5503 sets forth provisions regarding a grant 
program.
    ``Section 5504 provides for a study by the General 
Accounting Office.
    ``Section 5505 sets forth the authorization of 
appropriations.''

                      Title VI--Impact Aid Program

    Section 601--sets forth provisions for payments under 
section 8002 with respect to fiscal years in which insufficient 
funds are appropriated.
    Section 602--contains provisions regarding the calculation 
of payment under section 8003 for small local educational 
agencies.
    Section 603--contains provisions pertaining to school 
facility construction.
    Section 604--sets forth state consideration of payments in 
providing state aid.
    Section 605--authorizes appropriations.
    Section 606--sets forth provisions regarding the 
redesignation of the program.

                       Title VII--Accountability

    Section 701--amends title VII as follows:

             ``Title VII--Flexibility and Accountability.''

   ``Part A--State Accountability for Improving Academic Achievement

    ``Section 7101 sets forth provisions regarding state 
financial awards.
    ``Section 7102 sets forth state sanctions.
    ``Section 7103 provides for the development of state 
standards and assessments.
    ``Section 7104 authorizes the appropriations.

 ``Part B--Funding Flexibility For State And Local Educational Agencies

    ``Section 7201 states the short title as the `State and 
Local Transferability Act'.
    ``Section 7202 states the purpose.
    ``Section 7203 contains provisions regarding the 
transferability of funds.''

                     Title VIII--General Provisions

    Section 801--further amends the Elementary and Secondary 
Education Act of 1965, as amended by this act, by adding at the 
end of title VII the following:

                    ``Title VIII--General Provisions

    ``Part A--Definitions
    ``Section 8101 sets forth definitions for this act.
    ``Section 8102 states the applicability of this title.
    ``Section 8103 states the applicability of this act to the 
Bureau of Indian Affairs operated schools.

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

    ``Section 8201 provides for the consolidation of state 
administrative funds for elementary and secondary education 
programs.
    ``Section 8202 contains provisions pertaining to single 
local educational agency states.
    ``Section 8203 provides for the consolidation of funds for 
local administration.
    ``Section 8204 provides for a consolidated set-aside for 
the Department of the Interior's funds.

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

    ``Section 8301 states the purposes of this part.
    ``Section 8302 sets forth provisions for optional 
consolidated state plans or applications.
    ``Section 8303 provides for consolidated reporting.
    ``Section 8304 sets forth the general applicability of 
state educational agency assurances.
    ``Section 8305 sets forth provisions for consolidated local 
plans or applications.
    ``Section 8306 establishes provisions for other general 
assurances.

                           ``Part D--Waivers

    ``Section 8401 contains waivers of statutory and regulatory 
requirements.

                      ``Part E--Uniform Provisions

    ``Section 8501 contains provisions for the maintenance of 
effort.
    ``Section 8502 sets forth a prohibition regarding state 
aid.
    ``Section 8503 sets forth provisions for participation by 
private school children and teachers.
    ``Section 8504 contains standards for a by-pass.
    ``Section 8505 provides for a complaint process regarding 
the participation of private school children.
    ``Section 8506 sets forth a by-pass determination process.
    ``Section 8507 sets forth a prohibition against funds being 
provided for religious worship or instruction.
    ``Section 8508 provides that nothing in this act 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 
(consistent with section 8509), nor shall any home schooled 
student be required to participate in any assessment referenced 
in this act.
    ``Section 8509 provides that 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.
    ``Section 8510 provides for the privacy of assessment 
results.
    ``Section 8511 sets forth a general provision regarding 
nonrecipient nonpublic schools.
    ``Section 8512 contains provisions regarding school prayer.
    ``Section 8513 sets forth prohibitions on the use of funds 
and sets provisions for local control.
    ``Section 8514 provides for a prohibition on federal 
mandates, direction, and control.
    ``Section 8515 states that 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.
    ``Section 8516 sets forth reporting requirements.
    ``Section 8517 prohibits the requirement of approval or 
certification of academic content standards or student academic 
achievement standards by the federal government.
    ``Section 8518 sets forth a prohibition on an endorsement 
of a curriculum by the Department of Education.
    ``Section 8519 states that nothing in this act shall be 
construed to permit the development of a national database of 
personally identifiable information on individuals involved in 
studies or in data collection efforts under this act.
    ``Section 8520 states that if any provision of this act is 
held invalid, the remainder of this act shall be unaffected 
thereby.

                      ``Part F--Sense of Congress

    ``Section 8601 expresses the Sense of Congress regarding 
paperwork reduction.
    ``Section 8602 expresses the Sense of Congress regarding a 
prohibition on the mandatory national certification of teachers 
and paraprofessionals.
    ``Section 8603 expresses the Sense of Congress pertaining 
to a prohibition on federally sponsored testing.
    ``Section 8604 expresses the Sense of Congress regarding 
memorials.

                         ``Part G--Evaluations

    ``Section 8651 sets forth provisions for conducting 
comprehensive program or project evaluations.''

    Section 802--contains provisions pertaining to 
comprehensive regional assistance centers.
    Section 803--sets forth provisions regarding the National 
Diffusion Network program.
    Section 804--contains provisions pertaining to the 
Eisenhower Regional Mathematics and Science Education 
Corsortia.
    Section 805--contains provisions regarding technology-based 
technical assistance.
    Section 806--sets forth provisions regarding regional 
technical support and professional development.

                   Title IX--Miscellaneous Provisions

                    Part A--Amendments to Other Acts

Subpart 1--National Education Statistics Act

    Section 901--amends section 411 of the National Education 
Statistics Act of 1994.

Subpart 2--Homeless Education

    Section 911--establishes the short title of this subpart as 
the `McKinney-Vento Homeless Education Assistance Improvements 
Act of 2001'.
    Section 912--states the findings of Congress.
    Section 913--states the purpose of this subpart.
    Section 914--amends subtitle B of title VII of Public Law 
100-77 as follows:

        ``Subtitle B--Education for Homeless Children and Youth

    ``Section 721 states the policy of Congress.
    ``Section 722 provides grants for state and local 
activities for the education of homeless children and youth.
    ``Section 723 provides local educational agency grants for 
the education of homeless children and youth.
    ``Section 724 sets forth the responsibilities of the 
Secretary.
    ``Section 725 states the definitions of this subtitle.
    ``Section 726 establishes the authorization of 
appropriations.''

    Section 915--amends section I of Public Law 106-400 
regarding a technical amendment.

                            Part B--Repeals

    Section 921 sets forth provisions that are repealed.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill, H.R. 1, the ``No Child Left Behind Act of 
2001,'' authorizes programs of the Elementary and Secondary 
Education Act and provides States and school districts with 
increased flexibility. The bill does not prevent legislative 
branch employees from receiving the benefits of this 
legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. H.R. 1 authorizes programs of the Elementary and 
Secondary Education Act and provides States and school 
districts with increased flexibility. As such, the bill does 
not contain any unfunded mandates.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include for 
each record vote on a motion to report the measure or matter 
and on any amendments offered to the measure or matter the 
total number of votes for and against and the names of the 
Members voting for and against.

                             Correspondence

                     Congress of the United States,
                                  House of Representatives,
                                       Washington, DC, May 9, 2001.
Hon. John Boehner,
Chairman, Committee on Education and the Workforce,
Rayburn House Office Building, Washington, DC.
    Dear Mr. Chairman: Due to other legislative duties, I was 
unavoidably detained during Committee consideration of H.R. 1, 
``No Child Left Behind Act of 2001.'' Consequently, I missed 
roll call number 1 on the private school choice amendment 
offered by Representative Miller. Had I been present, I would 
not have voted in favor of the amendment.
    I would appreciate your including this letter in the 
Committee Report to accompany H.R. 1. Thank you for your 
attention to this matter.
            Sincerely,
                                            Ernie Fletcher,
                                                Member of Congress.
                                ------                                

                     Congress of the United States,
                                  House of Representatives,
                                       Washington, DC, May 9, 2001.
Hon. John Boehner,
Chairman, Committee on Education and the Workforce,
Rayburn House Office Building, Washington, DC.
    Dear Mr. Chairman: Due to other legislative duties, I was 
unavoidably detained during Committee consideration of H.R. 1, 
``No Child Left Behind Act of 2001.'' Consequently, I missed 
roll call number 4 on the 21st Century Learning Centers / Safe 
and Drug Free Schools amendment offered by Representative 
Kildee. Had I been present, I would have voted in favor of the 
amendment.
    I would appreciate your including this letter in the 
Committee Report to accompany H.R. 1. Thank you for your 
attention to this matter.
    Sincerely,
                                            Ernie Fletcher,
                                                Member of Congress.
                                ------                                

                     Congress of the United States,
                                  House of Representatives,
                                       Washington, DC, May 8, 2001.
Hon. John Boehner,
Chairman, Committee on Education and the Workforce,
Rayburn House Office Building, Washington, DC.
    Dear Mr. Chairman: Due to other legislative duties, I was 
unavoidably detained during Committee consideration of H.R. 1, 
``No Child Left Behind Act of 2001.'' Consequently, I missed 
roll call number 4 on the amendment offered by Reps. Kildee, 
Souder and McCarthy to maintain Safe and Drug Free Schools and 
21st Century Learning Centers as distinct programs. Had I been 
present, I would have voted in favor of the amendment.
    I would appreciate your including this letter in the 
Committee Report to accompany H.R. 1. Thank you for your 
attention to this matter.
            Sincerely,
                                            Todd R. Platts,
                                                Member of Congress.
                                ------                                

                  Committee on Education and the Workforce,
                                       Washington, DC, May 9, 2001.
Hon. Henry Hyde,
Chairman, Committee on International Relations,
Rayburn House Office Building, Washington, DC.
    Dear Chairman Hyde: This letter is to confirm our agreement 
regarding H.R. 1, ``No Child Left Behind Act of 2001,'' which 
was considered by the Committee on Education and the Workforce 
on May 2, 3, and 9, 2001. I thank you for working with me, 
specifically regarding the amendments the Committee included in 
H.R. 1, regarding Civic Education programs, specifically the 
new Title II, Part C of the Elementary and Secondary Education 
Act as included in Section 203(a) of the Committee reported 
bill, which are within the jurisdiction of the Committee on 
International Relations and the Committee on Education and the 
Workforce.
    While these provisions are within the jurisdiction of the 
Committee on International Relations, I appreciate your 
willingness to work with me in moving H.R. 1 forward without 
the need for a sequential referral to your Committee. I agree 
that this procedural route should not be construed to prejudice 
the jurisdictional interest and prerogatives of the Committee 
on International Relations on these provisions or any other 
similar legislation and will not be considered as precedent for 
consideration of matters of jurisdictional interest to your 
Committee in the future.
    I thank you for working with me regarding this matter. Your 
letter and this response will be included in the Committee 
report to accompany H.R. 1. If you have questions regarding 
this matter, please do not hesitate to call me.
            Sincerely,
                                              Joyn Boehner,
                                                          Chairman.
                                ------                                

                  Committee on Education and the Workforce,
                                       Washington, DC, May 9, 2001.
Hon. Bob Stump,
Chairman, Committee on Armed Services,
House of Representatives, Washington, DC.
    Dear Chairman Stump:
    This letter is to confirm our agreement regarding H.R. 1, 
``No Child Left Behind Act of 2001,'' which was considered by 
the Committee on Education and the Workforce on May 2, 3, and 
9, 2001. I thank you for working with me, specifically 
regarding the amendments the Committee included in H.R. 1, 
regarding Troops to Teacher programs, specifically the new 
Title II, Part A, Subpart 4 of the Elementary and Secondary 
Education Act as included in the bill as introduced and in 
Section 201 of the Committee reported bill, which are within 
the jurisdiction of the Committee on Armed Services and the 
Committee on Education and the Workforce.
    While these provisions are within the jurisdiction of the 
Committee on Armed Services, I appreciate your willingness to 
work with me in moving H.R. 1 forward without the need for a 
sequential referral to your Committee. I agree that this 
procedural route should not be construed to prejudice the 
jurisdictional interest and prerogatives of the Committee on 
Armed Services on these provisions or any other similar 
legislation and will not be considered as precedent for 
consideration of matters of jurisdictional interest to your 
Committee in the future.
    I thank you for working with me regarding this matter. Your 
letter and this response will be included in the Committee 
report to accompany H.R. 1. If you have questions regarding 
this matter, please do not hesitate to call me.
            Sincerely,
                                            John Boehner, Chairman.
                                ------                                

                               Committee on Armed Services,
                                      Washington, DC, May 11, 2001.
Hon. John Boehner,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear John: In recognition of the desire to expedite floor 
consideration of H.R. 1, the No Child Left Behind Act of 2001, 
the Committee on Armed Services agrees to waive its right to 
consider this legislation. H.R. 1, as introduced and as ordered 
reported by the Committee on Education and the Workforce on May 
9, 2001, contains subject matter that falls within the 
legislative jurisdiction of the Committee on Armed Services 
pursuant to rule X of the Rules of the House of 
Representatives. Specifically, section 201 of the committee 
reported bill, which, in part, amends the Elementary and 
Secondary Education Act of 1965 regarding the Troops-to-
Teachers program, is within the jurisdiction of this Committee.
    The Committee on Armed Services takes this action with the 
understanding that the Committee's jurisdiction over the 
provisions in question is in no way diminished or altered, and 
that the Committee's right to the appointment of conferees 
during any conference on the bill remains intact.
            Sincerely,
                                               Bob Stump, Chairman.
                                ------                                

                  Committee on Education and the Workforce,
                                       Washington, DC, May 9, 2001.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Chairman Oxley: This letter is to confirm our 
agreement regarding H.R. 1, ``No Child Left Behind Act of 
2001,'' which was considered by the Committee on Education and 
the Workforce on May 2, 3. and 9, 2001. I thank you for working 
with me, specifically regarding the amendments the Committee 
included in H.R. 1 to the McKinney-Vento Homeless Education 
Assistance Improvements Act, specifically Subpart 2 of Part A 
of Title IX, which are within the jurisdiction of the Committee 
on Financial Services and the Committee on Education and the 
Workforce.
    While these provisions are within the jurisdiction of the 
Financial Services Committee, I appreciate your willingness to 
work with me in moving H.R. 1 forward without the need for a 
sequential referral to the Committee on Financial Services. I 
agree that this procedural route should not be construed to 
prejudice the jurisdictional interest and prerogatives of the 
Committee on Financial Services on these provisions or any 
other similar legislation and will not be considered as 
precedent for consideration of matters of jurisdictional 
interest to your Committee in the future.
    I thank you for working with me regarding this matter. Your 
letter and this response will be included in the Committee 
report to accompany H.R. 1. If you have questions regarding 
this matter, please do not hesitate to call me.
            Sincerely,
                                            John Boehner, Chairman.
                                ------                                

                           Committee on Financial Services,
                                       Washington, DC, May 9, 2001.
Hon. John Boehner,
Chairman, Committee on Education and the Workforce,
Rayburn House Office Building, Washington, DC.
    Dear John: I am writing regarding H.R. 1, the ``No Child 
Left Behind Act of 2001'' which was ordered reported by the 
Committee on Education and the Workforce today. As you know, 
the legislation includes provisions amending the McKinney-Vento 
Homeless Education Assistance Improvements Act. Clause 1(g) of 
rule X of the Rules of the House of Representatives grants the 
Committee on Financial Services jurisdiction over public and 
private housing and urban development. Accordingly, amendments 
to that Act fall within the jurisdiction of both the Committee 
on Financial Services and the Committee on Education and the 
Workforce.
    Because of your willingness to consult with the Committee 
on Financial Services on this matter, and the need to move this 
legislation expeditiously, I will waive consideration of the 
bill by the Financial Services Committee. By agreeing to waive 
its consideration of the bill, the Financial Services Committee 
does not waive its jurisdiction over H.R. 1. In addition, the 
Committee on Financial Services reserves its authority to seek 
conferees on any provisions of the bill that are within the 
Financial Services Committee's jurisdiction during any House-
Senate conference that may be convened on this legislation. I 
ask your commitment to support any request by the Committee on 
Financial Services for conferees on H.R. 1 or related 
legislation.
    I request that you include this letter and your response as 
part of your committee's report on the bill. Thank you for your 
assistance in this matter.
            Sincerely,
                                        Michael G. Oxley, Chairman.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of 3(c)(3) of rule XIII of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 1 from the Director of the Congressional Budget 
Office:

                               Congressional Budget Office,
                                      Washington, DC, May 14, 2001.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1, the No Child 
Left Behind Act of 2001.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Donna Wong.
            Sincerely,
                                         Barry B. Anderson,
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 1--No Child Left Behind Act of 2001

    Summary: Programs under the Elementary and Secondary 
Education Act of 1965 (ESEA) were authorized through 2000 under 
the General Education Provisions Act (GEPA). Programs were 
authorized in 2001 by the Consolidated Appropriations Act 
(Public Law 106-554). H.R. 1 would reauthorize these programs 
through 2006. It would also reauthorize parts of the Stuart B. 
McKinney Act, the Goals 2000: Educate America Act, and the 
National Education Statistics Act.
    CBO estimates that authorizations under the bill relative 
to current law would total approximately $23 billion in 2002 
and about $135 billion over the 2002-2006 period, assuming that 
annual levels are adjusted to keep pace with inflation when 
specific annual authorizations are not provided. (Without such 
inflation adjustments, the authorization total would be about 
$132 billion over the 2002-2006 period.) CBO estimates that 
appropriations of the authorized levels would result in 
additional outlays of $99 billion over the 2002-2006 period, 
relative to estimated spending under current law, if inflation 
adjustments are included (and about $98 billion without 
inflation adjustments).
    Enacting the bill would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply.
    The programs reauthorized in this bill would provide grants 
to state and local education agencies and tribal governments to 
assist specific populations of students in meeting state 
performance standards. The bill contains no intergovernmental 
or private-sector mandates as defined in the Unfunded Mandates 
Reform Act (UMRA). Any costs incurred by state, local, or 
tribal governments would result from complying with conditions 
of aid.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1 is shown in Table 1. The costs of 
this legislation fall within budget function 500 (education, 
training, employment, and social services).

              TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1, THE NO CHILD LEFT BEHIND ACT OF 2001
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2001      2002      2003      2004      2005      2006
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

                                         With Adjustments For Inflation
Spending Under Current Law:
    Budget Authority/Authorization Level \1\........    17,790     9,928     1,233         0         0         0
    Estimated Outlays...............................    14,212    15,036     5,101       972        79        10
Total Proposed Changes:
    Estimated Authorization Level...................         0    22,834    24,555    27,526    29,270    30,727
    Estimated Outlays...............................         0     1,347    17,480    24,463    27,152    28,952
Spending Under HR. 1:
    Estimated Authorization Level...................    17,790    32,762    25,788    27,526    29,270    30,727
    Estimated Outlay................................    14,212    16,382    22,581    25,435    27,231    28,962

                                        Without Adjustments For Inflation

Spending Under Current Law:
    Budget Authority/Authorization Level \1\........    17,790     9,902     1,183         0         0         0
    Estimated Outlays...............................    14,212    15,030     5,086       964        77        10
Total Proposed Changes:
    Estimated Authorization Level...................         0    22,832    24,328    27,014    28,514    29,714
    Estimated Outlays...............................         0     1,346    17,462    24,228    26,681    28,234
Spending Under H.R. 1:
    Estimated Authorization Level...................    17,790    32,733    25,511    27,014    28,514    29,714
    Estimated Outlays...............................    14,212    16,377    22,548    25,192    26,757   28,243
----------------------------------------------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for that year.
Note:--Components may not sum to totals because of rounding.

    Basis of estimate: H.R. 1 would authorize funding through 
2006 for various programs created under ESEA. These programs 
would generally be reauthorized at specific levels for 2002 and 
for such sums as may be necessary for 2003 through 2006. Some 
programs would be authorized at such sums as may be necessary 
in all years. For these programs, CBO assumes continued funding 
at their 2001 levels, adjusted for projected inflation in the 
top panel of Table 1, and without such inflation adjustments in 
the bottom half of Table 1. In Table 1, spending under current 
law includes advance appropriations of $8.7 billion in 2002 for 
program year 2001-2002. In addition, Impact Aid and Charter 
Schools are authorized under current law through 2003.
    CBO estimates that H.R. 1 would increase authorized levels 
by $22.8 billion in 2002 and by $134.9 billion over the 2002-
2006 period assuming that ``such sums'' amounts provided after 
2002 are adjusted for inflation. If the authorized amounts are 
appropriated, outlays would increase relative to current law by 
$1.3 billion in the first year and by $99.4 billion over the 
five-year period. (Without inflation adjustments, the increased 
authorizations would result in outlays of $98 billion over the 
five years.)
    Table 2 presents CBO's estimates with inflation adjustments 
for the various components of each title under H.R. 1. CBO's 
estimate of authorized levels is generally the authorized 
amount for 2002 with those amounts inflated in later years. 
(The authorizations for some programs are specified after 
2002.) For most existing programs that H.R. 1 would 
reauthorize, the estimated outlays reflect CBO's current 
spendout rate assumptions. For new programs or significant 
revisions to existing programs, an explanation of CBO's 
estimate is provided below. Because most education programs 
operate on a forward-funded basis, spending in the first year 
is consistently slow across most programs, with variation in 
spending patterns in the subsequent years.
            Title I--Improving the Academic Performance of the 
                    Disadvantaged
    Title I of H.R. 1 would reauthorize and revise programs 
currently authorized under parts A, B, C, D, and E of Title I 
of ESEA. It also would introduce new programs for student 
assessments and reading initiatives. H.R. 1 would authorize a 
total of $14.3 billion for 2002 for all programs under Title I. 
CBO estimates the total funding for Title I for the 2002-2006 
period would be $86.9 billion, assuming adjustments for 
inflation, with resulting outlays of $63.2 billion over those 
five years.

   TABLE 2.--DETAILED EFFECTS OF H.R. 1, THE NO CHILD LEFT BEHIND ACT OF 2001, WITH ADJUSTMENTS FOR INFLATION
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2001      2002      2003      2004      2005      2006
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority/Authorization Level \1\........    17,790     9,928     1,233         0         0         0
    Estimated Outlays...............................    14,212    15,036     5,101       972        79        10

                                                Proposed Changes

                        Title I--Improving the Academic Performance of the Disadvantaged

Grants to Local Education Agencies (LEAs):
    Estimated Authorization Level...................         0    11,500    13,000    14,500    16,000    17,200
    Estimated Outlays...............................         0       575     9,275    12,545    14,245    15,730
Reading First:
    Estimated Authorization Level...................         0       900       918       935       953       971
    Estimated Outlays...............................         0        27       658       823       929       947
Early Reading First:
    Estimated Authorization Level...................         0        75        76        78        79        81
    Estimated Outlays...............................         0         2        55        69        77        79
Even Start:
    Estimated Authorization Level...................         0       275       280       286       291       297
    Estimated Outlays...............................         0         8       201       252       284       289
Inexpensive Book Distribution:
    Estimated Authorization Level...................         0        24        24        24        25        25
    Estimated Outlays...............................         0         1        16        23        24        25
Education of Migratory Children:
    Estimated Authorization Level...................         0       420       428       436       445       453
    Estimated Outlays...............................         0        21       336       419       435       443
Neglected or Delinquent Youth:
    Estimated Authorization Level...................         0        50        51        52        53        54
    Estimated Outlays...............................         0         3        40        50        52        53
Comprehensive School Reform:
    Estimated Authorization Level...................         0       260       265       270       275       281
    Estimated Outlays...............................         0        13       208       259       269       274
Rural Education:
    Estimated Authorization Level...................         0       300       306       312       318       324
    Estimated Outlays...............................         0        15       210       289       310       316
Capital Expense Account:
    Estimated Authorization Level...................         0         6         6         0         0         0
    Estimated Outlays...............................         0     (\2\)         5         6         1         0
Federal Activities--Evaluations:
    Estimated Authorization Level...................         0         9         9        10        10        10
    Estimated Outlays...............................         0     (\2\)         7         9         9         9
Federal Activities--Demonstrations of Innovative
 Practices:
    Estimated Authorization Level...................         0         2         2         2         2         2
    Estimated Outlays...............................         0     (\2\)         2         2         2         2
Allen J. Ellender Fellowship Program:
    Estimated Authorization Level...................         0         2         2         2         2         2
    Estimated Outlays...............................         0     (\2\)         1         1         2         2
State Administration Grants:
    Estimated Authorization Level...................         0        10        10        10        11        11
    Estimated Outlays...............................         0         1         8        10        10        11
Assistance for Local School Improvement:
    Estimated Authorization Level...................         0       500       510       520       529       540
    Estimated Outlays...............................         0        25       400       498       518       528
        Subtotal, Title I:
            Estimated Authorization Level...........         0    14,332    15,888    17,437    18,992    20,250
            Estimated Outlays.......................         0       692    11,423    15,255    17,169    18,708

                         Title II--Preparing, Training, and Recruiting Quality Teachers

Grants to States:
    Estimated Authorization Level...................         0     3,600     3,670     3,741     3,911     3,885
    Estimated Outlays...............................         0       180     2,524     3,473     3,720     3,790
Troops to Teachers:
    Estimated Authorization Level...................         0        50        51        52        53        54
    Estimated Outlays...............................         0         3        35        48        52        53
National Writing Project:
    Estimated Authorization Level...................         0        10        10        11        11        11
    Estimated Outlays...............................         0         1         8        10        11        11
We the People:
    Estimated Authorization Level...................         0        10        10        10        11        11
    Estimated Outlays...............................         0         1         8        10        10        11
Cooperative Civic Education and Economic Exchange
 Programs:
    Estimated Authorization Level...................         0        12        13        13        13        13
    Estimated Outlays...............................         0         1        10        12        13        13
        Subtotal, Title II:
            Estimated Authorization Level...........         0     3,683     3,755     3,827     3,899     3,975
            Estimated Outlays.......................         0       186     2,585     3,554     3,805     3,878

  Title III--Education of Limited English Proficient and Immigrant Children; Indian and Alaska Native Education

English Language and Academic Instructional
 Programs:
    Estimated Authorization Level...................         0       750       765       779       794       809
    Estimated Outlays...............................         0        38       526       724       775       790
Indian Education:
    Estimated Authorization Level...................         0       100       102       104       106       108
    Estimated Outlays...............................         0         5        80       100       104       106
Special Programs and National Research Activities:
    Estimated Authorization Level...................         0        25        25        26        26        27
    Estimated Outlays...............................         0         1        20        25        26        26
Alaska Native Education:
    Estimated Authorization Level...................         0        15        15        16        16        16
    Estimated Outlays...............................         0         1        11        14        15        16
Administrative Costs:
    Estimated Authorization Level...................         0         1         1         1         1         1
    Estimated Outlays...............................         0       (2)         1         1         1         1
Early Childhood Development:
    Estimated Authorization Level...................         0        10        10        10        11        11
    Estimated Outlays...............................         0         3        10        10        10        11
Tribal Departments or Divisions of Education:
    Estimated Authorization Level...................         0         2         2         2         2         2
    Estimated Outlays...............................         0         1         2         2         2         2
        Subtotal, Title III:
            Estimated Authorization Level...........         0       903       921       938       956       975
            Estimated Outlays.......................         0        48       649       876       933       951
                       Title IV--Promoting Informed Parental Choice and Innovative Program

State and Local Innovative Program:
    Estimated Authorization Level...................         0       450       459       468       476       486
    Estimated Outlays...............................         0        23       315       434       465       474
Arts in Education:
    Estimated Authorization Level...................         0        29        29        30        30        31
    Estimated Outlays...............................         0         1        20        28        30        30
Gifted and Talented:
    Estimated Authorization Level...................         0         8         8         8         8         8
    Estimated Outlays...............................         0         1         6         8         8         8
Charter Schools 3:
    Estimated Authorization Level...................         0        31        31       234       238       243
    Estimated Outlays...............................         0         2        22        40       173       227
Magnet Schools:
    Estimated Authorization Level...................         0       125       127       130       132       135
    Estimated Outlays...............................         0         6        88       121       129       132
Women's Educational Equity:
    Estimated Authorization Level...................         0         3         3         3         3         3
    Estimated Outlays...............................         0       (2)         2         3         3         3
        Subtotal, Title IV:
            Estimated Authorization Level...........         0       645       658       872       889       906
            Estimated Outlays.......................         0        33       453       633       808       874

                                          Title V--21st Century Schools

Safe Schools:
    Estimated Authorization Level...................         0       475       484       494       503       513
    Estimated Outlays...............................         0        24       333       458       491       500
21st Century Community Learning Centers:
    Estimated Authorization Level...................         0       900       918       935       953       971
    Estimated Outlays...............................         0       108       722       898       933       951
National Programs:
    Estimated Authorization Level...................         0        60        60        60        60        60
    Estimated Outlays...............................         0         3        42        57        60        60
Enhancing Education Through Technology:
    Estimated Authorization Level...................         0     1,000     1,020     1,039     1,059     1,079
    Estimated Outlays...............................         0       100       652       965     1,033     1,053
Ready To Learn--Ready To Teach:
    Estimated Authorization Level...................         0        25        25        25        26        26
    Estimated Outlays...............................         0         2        16        24        25        26
Character Education:
    Estimated Authorization Level...................         0        25        25        26        26        27
    Estimated Outlays...............................         0         3        20        25        26        26
Elementary and Secondary School Counseling:
    Estimated Authorization Level...................         0        31        31        32        32        33
    Estimated Outlays...............................         0         4        25        31        32        32
Mentoring:
    Estimated Authorization Level...................         0        50        51        52        53        54
    Estimated Outlays...............................         0         2        34        48        52        53
        Subtotal, Title V:
            Estimated Authorization Level...........         0     2,565     2,614     2,663     2,712     2,764
            Estimated Outlays.......................         0       245     1,844     2,505     2,652     2,701

                                            Title VI--Impact Aid \3\

Basic Program:
    Estimated Authorization Level...................         0         0         0       937       954       973
    Estimated Outlays...............................         0         0         0       843       934       971
Payments for Children with Disabilities:
    Estimated Authorization Level...................         0         0         0        53        54        55
    Estimated Outlays...............................         0         0         0        48        53        55
Facilities Maintenance:
    Estimated Authorization Level...................         0         0         0         8         9         9
    Estimated Outlays...............................         0         0         0         8         8         9
Construction:
    Estimated Authorization Level...................         0       137       140       156       159       162
    Estimated Outlays...............................         0       123       137       154       158       162
Payments for Federal Property:
    Estimated Authorization Level...................         0         0         0        43        44        45
    Estimated Outlays...............................         0         0         0        39        43        45
        Subtotal, Title VI:
            Estimated Authorization Level...........         0       137       140     1,198     1,220     1,244
            Estimated Outlays.......................         0       123       137     1,092     1,197     1,241

                                            Title VII--Accountability

Achievement in Education Awards:
    Estimated Authorization Level...................         0        40        41        42        42        43
    Estimated Outlays...............................         0         1        27        39        41        42
Grants for Independent Assessments and
 Administration of Assessments Under NAEP:
    Estimated Authorization Level...................         0        69        70        72        73        74
    Estimated Outlays...............................         0         2        47        67        71        73
Development and Administration of State Standards
 and Assessments:
    Estimated Authorization Level...................         0       400       408       416       423       432
    Estimated Outlays...............................         0        12       272       386       413       421
        Subtotal, Title VII:
    Estimated Authorization Level...................         0       509       519       529       539       549
    Estimated Outlays...............................         0        15       346       491       526       536

                                       Title IX--Miscellaneous Provisions

Homeless Education:
    Estimated Authorization Level...................         0        60        61        62        64        65
    Estimated Outlays...............................         0         3        42        58        62        63
        Total Proposed Changes:
            Estimated Authorization Level...........         0    22,834    24,555    27,526    29,270    30,727
            Estimated Outlays.......................         0     1,347    17,480    24,463    27,152    28,952
        Total Spending Under H.R. 1:
            Estimated Authorization Level...........    17,790    32,762    25,788    27,526    29,270    30,727
            Estimated Outlays.......................    14,212    16,382    22,581    25,435    27,231   28,962
----------------------------------------------------------------------------------------------------------------
\1\The 2001 level is the amount appropriated for that year.
\2\ Less than $500,000.
\3\ The Charter Schools and Impact Aid programs are currently authorized until 2003. Table 2 shows only new
  authorizations. See text for a description of total authorizations.

Note.--Components may not sum to totals because of rounding.

    Part A--Basic Program. H.R. 1 would reauthorize the Basic, 
Concentration, and Targeted Grant Programs currently authorized 
under Part A of Title I, phase out the capital expense account, 
add new requirements for states to develop more specific 
standards and assessments, and require states to report 
annually on the results of the assessments.
    The bill would authorize $11.5 billion for 2002, $13 
billion for 2003, $14.5 billion for 2004, $16 billion for 2005, 
and $17.2 billion for 2006 for basic and concentration grants 
under Part A. The comparable funding for the 2001-2002 academic 
year is $8.6 billion.
    H.R. 1 also would authorize $10 million in 2002 for 
additional state administration grants and $500 million in 2002 
for the Assistance for Local School Improvement program. States 
would use the funds to assist local educational agencies (LEAs) 
and schools which are in school improvement status.
    H.R. 1 would continue the authorization of the capital 
expense account. This account funds costs associated with 
ensuring that Title I services to private-school children are 
administeredin neutral settings. In response to the 1997 
Supreme Court ruling that overturned this requirement, H.R. 1 would 
phase out funding over two years, authorizing $6 million annually for 
2002 and 2003. The funding level for 2001 is also $6 million.
    The bill would amend Part A of Title I to include more 
specific standards and assessment requirements for state plans. 
H.R. 1 would require states to include performance indicators 
in their plans as well as sanctions and rewards for LEAs. State 
progress would be measured by each state according to its state 
plan. It also would require states to assess all students 
annually in grades 3 through 8 in mathematics and reading, and 
measure the outcomes of the assessments against the state 
content and student performance standards established in the 
state plans, beginning no later than school year 2005-2006.
    The bill also would require that states produce annual 
report cards on student achievement performance at each 
proficiency level on the state assessments. It would also 
require states to administer assessments under either the 
National Assessment of Education Progress (NAEP) or another 
academic assessment to affirm the quality of state assessments.
    In addition, H.R. 1 would establish penalties for states 
failing to meet the deadlines for creating standards and a 
system for measuring progress. States that fall to meet the 
deadlines outlined in the bill would have 25 percent of their 
funds for both state administration and activities withheld in 
each year until the Secretary of Education determines the state 
meets those requirements.
    Part B--Student Reading Skills Improvement Grants. H.R. 1 
would reauthorize funding for the Even Start Literacy program, 
currently Part B in Title I of ESEA, and the Inexpensive Book 
Distribution Program, currently authorized under Part E of 
Title X of ESEA, and create two new reading programs--the 
Reading First program and the Early Reading First program.
    H.R. 1 would authorize $900 million in 2002 for the Reading 
First program. The Reading First program replaces the Reading 
Excellence program, which is currently authorized under Part C 
of Title II of ESEA. The Reading Excellence program is funded 
at $286 million in 2001. The Reading First program would first 
provide formula grants to states. States would award grants 
competitively to LEAs. The program would allow states to apply 
for grants if funds remain. The Reading Excellence program uses 
a two-tier competitive grant structure, which has resulted in 
slow spending in the first two years relative to formula grant 
or one-tier competitive grant programs. CBO estimates that 
spending for the Reading First program would be at a rate 
comparable to spending for other formula grants to states with 
competitive grants to LEAs.
    H.R. 1 also would create a new program for pre-school 
reading programs. The Early Reading First program would provide 
competitive grants to LEAs or private organizations to develop 
and provide pre-school reading programs. H.R. 1 would authorize 
$75 million for the Early Reading First program.
    The bill would authorize $250 million for the Even Start 
program, the same amount that was appropriated for 2001.
    Finally, H.R. 1 would authorize such sums as may be 
necessary for 2002 through 2006 for the Inexpensive Book 
Distribution Program. CBO assumes funding of $24 million in 
2002 based on the 2001 funding adjusted for inflation.
    Part C--Education of Migratory Children. H.R. 1 would 
authorize $420 million in 2002 to continue to fund grants to 
support the needs of children of migrant workers, currently 
authorized under Part C of Title I. Funding in 2001 for the 
Migrant Education program is $380 million.
    Part D--Neglected or Delinquent Youth. H.R. 1 would 
authorize $50 million in 2002 to reauthorize grants for 
education programs for neglected or delinquent youth, compared 
with the 2001 funding level of $46 million.
    Part E--Federal Evaluations and Demonstrations. H.R. 1 
would authorize $9 million in 2002 for a national assessment of 
activities authorized under Title I including the 
implementation of state standards, assessments, and 
accountability systems.
    The bill also would authorize such sums as may be necessary 
for 2002 through 2006 for Federal Demonstrations of Innovative 
Practices. CBO assumes continued funding of about $2 million a 
year.
    H.R. 1 also would reauthorize funding for the Allen J. 
Ellender Fellowship Program. It would authorize such sums as 
may be necessary for 2002 through 2006. CBO assumes continued 
funding of about $2 million a year.
    Part F--Comprehensive School Reform. H.R. 1 would authorize 
$260 million in 2002 to provide grants to states and subgrants 
to LEAs for comprehensive school reform. The program received 
$210 million in 2001.
    Part G--Rural Education Flexibility and Assistance. H.R. 1 
would create a new Rural Education program to replace the Urban 
and Rural Education Assistance Program, currently authorized 
under Part J of Title X of ESEA. The bill would authorize the 
program at $300 million in 2002, of which $150 million would be 
distributed to LEAs for a RuralEducation Flexibility formula 
grant program, and $150 million for a Rural Education Assistance 
program.
    The flexibility program would allow LEAs to use the 
additional funds to carry out several different activities 
authorized by ESEA. The Rural Education Assistance program 
would allocate funds to small and low-income rural schools for 
initiatives to improve student academic achievement including 
teacher professional development, teacher recruitment, 
educational technology, and parental involvement. The Urban and 
Rural Education Assistance Program was not funded in 2001.
            Title II--Preparing, Training, and Recruiting Quality 
                    Teachers
    Title II would authorize a total of $3.7 billion for 2002 
for several initiatives that address teacher hiring, 
recruitment, and professional development. CBO estimates that 
implementing this title would cost $19.1 billion over the 2002-
2006 period.
    Teacher Quality Training and Recruiting Fund State Grants 
and Mathematics and Science Partnerships. H.R. 1 would 
authorize a total of $3.6 billion to fund both a formula grant 
to states and the Math and Science Partnership Program. The 
State Grants program would fund many activities previously 
authorized under the Eisenhower Professional Development and 
Class Size Reduction programs, both of which would be 
discontinued. The combined funding level in 2001 is $1.9 
billion under the Eisenhower Professional Development and the 
Class Size Reduction programs. CBO assumes a spending rate 
consistent with the rate of spending for other new formula 
grant programs.
    The Math and Science Partnerships program would replace the 
existing Eisenhower Regional Mathematics and Science Education 
Consortia currently authorized in Title XIII, Part C. The 
Mathematics and Science Partnerships program would provide 
grants to partnerships of states, local institutions, and 
institutions of higher education to offer summer and distance 
education workshops for math and science teachers, establish 
recruitment strategies, and provide other career development 
activities.
    Troops-to-Teachers. H.R. 1 would authorize $50 million in 
2002 to fund the Troops-to-Teachers program administered by the 
Department of Defense. The program assists former members of 
the armed forces to obtain certification or licensure as 
elementary school teachers, secondary school teachers, or 
vocational or technical teachers. The program was authorized in 
2001 by the Consolidated Appropriations Act (Public Law 106-
554) and funding in 2001 was $3 million.
    National Writing Project. H.R. 1 also would reauthorize the 
National Writing Project currently authorized in Title X, Part 
K, and set funding at such sums as may be necessary in 2002 
through 2006. CBO assumes funding will continue at the 2001 
level adjusted for inflation, or $10 million in 2002 and $53 
million over the 2002-2006 period.
    Cooperative Civic Education and Economic Exchange Programs. 
H.R. 1 would combine the Civic Education and International 
Education programs, reauthorize both as Cooperative Civic 
Education and Economic Exchange programs, and set funding at 
such sums as may be necessary in 2002 through 2006. CBO assumes 
funding would continue at the combined funding level of $12 
million in 2002, with a five-year total of $65 million.
    The bill would also reauthorize the We the People Program, 
currently administered by the Center for Civic Education, 
providing a separate authorization at such sums as may be 
necessary. Funding in 2001 was provided as a set-aside within 
the Civic Education program of $9.85 million. With inflation, 
CBO estimates the 2002 authorization would be $10.1 million, 
and the five-year total would be $52 million.
            Title III--Education of Limited English Proficient 
                    Children; Indian and Alaska Native Education
    H.R. 1 would authorize $903 million for programs in English 
language instruction, and programs for Indian and Alaska Native 
education. CBO estimates that implementing this title would 
cost $4.7 billion over the 2002-2006 period.
    Part A--Education of Limited English Proficient and 
Immigrant Children. H.R. 1 would authorize $750 million to fund 
formula grants to states for English language and academic 
instructional programs. The block grants would fund programs 
currently authorized under the Bilingual Education program in 
Title VII of ESEA. The Bilingual Education Program, Foreign 
Language Assistance Program, and the Emergency Immigrant 
Education programs would be eliminated. The total of funding 
for all three programs in 2001 is $460 million.
    Part B--Indian and Alaska Native Education. H.R. 1 would 
reauthorize Indian and Alaska Native Education programs 
currently authorized under Title IX of ESEA. For 2002, the bill 
would authorize $100 million for Indian Education grants and 
$25 million for special programs and projects to improve 
educational opportunities for Indian children and national 
research activities. Indian Education grants were funded at $93 
million in 2001 and special programs and national activities 
were funded at $23 million in 2001.
    H.R. 1 would authorize $15 million for 2002 for Alaskan 
Native Education, the same amount appropriated for 2001.
    Bureau of Indian Affairs (BIA) Programs. The Bureau of 
Indian Affairs within the Department of the Interior also 
provides educational assistance to Native Indian children. Most 
BIA programs are permanently authorized at such sums as may be 
necessary under the Snyder Act of 1921 (Public Law 65-85). CBO 
assumes continued funding of these programs at their 2001 
levels adjusted for inflation. This funding, which totals an 
estimated $3.2 billion over the 2002-2006 period, is unaffected 
by H.R. 1 and is not included in the totals presented in Tables 
1 and 2.
    H.R. 1 would establish a minimum funding level for 
administrative cost grants to BIA-run schools. CBO estimates 
this provision would increase costs by approximately $1 million 
in each of the five years.
    The Early Childhood Development Program and the Tribal 
Departments of Education are not permanently authorized. H.R. 1 
would reauthorize both of these programs through 2006, with 
specified levels for 2002 of $10 million for the Early 
Childhood Development program and $2 million for the Tribal 
Departments of Education. The Early Childhood Development 
program received $12 million in 2001 and Tribal Departments 
received $2 million in 2001.
            Title IV--Promoting Informed Parental Choice and Innovative 
                    Programs
    Title IV would authorize $645 million in 2002 for several 
programs previously authorized under other titles of ESEA. 
Programs authorized under Title IV include State and Local 
Innovative Education Programs, Arts in Education, Gifted and 
Talented, Charter Schools, School Choice Research and 
Demonstration Educational Opportunity Fund, Magnet Schools, and 
Women's Educational Equity. CBO estimates that implementing 
this title would cost $4 billion over the 2002-2006 period.
    State and Local Innovative Education Programs. H.R. 1 also 
would authorize $450 million to continue the Innovative 
Education Program. The program is currently authorized under 
Title VI of ESEA. This program is funded at $385 million in 
2001.
    Arts in Education. The bill would authorize an estimated 
$29 million in 2002 for the Arts in Education program currently 
authorized under ESEA. Funding in 2001 was $28 million.
    Gifted and Talented. H.R. 1 would authorize an estimated $8 
million in 2002 for competitive grants to states for programs 
that identify and challenge gifted and talented students under 
the Gifted and Talented program currently authorized under 
Title X, Part B of ESEA. Funding in 2001 was $8 million.
    Charter Schools. The bill would reauthorize the Charter 
School program, currently authorized through 2003 under the 
Charter School Expansion Act (Public Law 105-278). H.R. 1 would 
authorize $225 million for 2002 and extend the authorization 
through 2006. Funding in 2001 was $190 million.
    Magnet Schools Assistance. H.R. 1 would reauthorize $125 
million for 2002 to continue the Magnet Schools Assistance 
program currently authorized under Part A of Title V. Funding 
in 2001 is $110 million.
    Women's Educational Equity. Finally, the bill would 
authorize $3 million in 2002 for the Women's Educational Equity 
program. Funding in 2001 was also $3 million.
            Title V--21st Century Schools
    H.R. 1 would authorize a total of $2.6 billion in 2002 for 
Safe Schools state grants, 21st Century Community Learning 
Centers, School Safety national programs, Enhancing Education 
Through Technology, Character Education, Elementary and 
Secondary School Counseling, and mentoring programs. CBO 
estimates that implementing this title would cost $13.3 billion 
over the 2002-2006 period.
    Safe Schools. The bill would authorize $475 million in 2002 
for the Safe Schools state grant program currently authorized 
as the Safe and Drug Free Community Program under Title IV of 
ESEA. In 2001, total funding for the Safe and Drug Free 
Community Program and the Safe and Drug Free Community 
Coordinator Initiative was $489 million.
    21st Century Community Learning Centers. H.R. 1 would 
authorize $900 million in 2002 for the 21st Century Community 
Learning Centers program, currently authorized under Part I of 
Title X. The program was funded at $846 million in 2001.
    National Programs. The bill would authorize $60 million in 
2002 for national programs, which are currently funded at $155 
million.
    Enhancing Education Through Technology. H.R. 1 would 
authorize a total of $1.0 billion in 2002 for formula block 
grants to states to provide assistance to states and localities 
in implementing innovative technology initiatives. The 
Enhancing Education Through Technology program would replace 
many smaller programs currently authorized underTitle III of 
ESEA including the Literacy Challenge Fund, Innovative Challenge Fund, 
National Leadership, Technology Leadership, Teacher Training, 
Community-Based Centers, and Star Schools. The combined funding level 
in 2001 is $856 million for those programs. CBO assumes that the rates 
of spending for this program would be similar to other formula grant 
programs.
    Ready To Learn--Ready To Teach. H.R. 1 would combine the 
Ready to Learn Television program and the Telecommunication 
Demonstration Project for Math, reauthorize the program as the 
Ready To Learn--Ready To Teach program, and authorize $24.5 
million in 2002.
    Character Education. H.R. 1 would reauthorize the Character 
Education program, currently authorized as part of the Fund for 
the Improvement of Education by Title X of ESEA. The bill would 
authorize $25 million for 2002. Funding in 2001 is $8.2 
million.
    Elementary and Secondary School Counseling Programs. The 
bill would reauthorize the Elementary and Secondary School 
Counseling programs currently authorized under Title X of ESEA 
(also as part of the Fund for the Improvement of Education), 
H.R. 1 would create a separate authorization and would 
authorize such sums as may be necessary for 2002. The program 
was funded at $30 million in 2001 and CBO assumes funding would 
continue at the 2001 level adjusted for inflation. Thus, CBO 
estimates funding for the programs in 2002 would be $31 
million.
    Mentoring Programs. H.R. 1 would create a new competitive 
grant program to fund LEAS, nonprofit organizations and other 
agencies or partnerships that create personal mentorship 
programs for high-need children. It would authorize $50 million 
in 2002 and such sums as may be necessary for each of the 
fiscal years 2003 through 2006. CBO assumes that spending would 
occur at rate consistent with other competitive grant programs.
            Title VI--Impact Aid
    Impact Aid programs were reauthorized in 1999 under the 
Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-398). That law authorized 
appropriations through 2003. Title VI would authorize $150 
million in 2002 for construction and also extend all Impact Aid 
authorizations through 2006 to match other programs 
reauthorized by this bill. CBO estimates that implementing this 
title would cost $3.9 billion over the 2002-2006 period.
            Title VII--Accountability
    H.R. 1 would authorize a total of $509 million in 2002 for 
development and administration of state standards and 
assessments, administration of assessments under the National 
Assessment of Educational Progress (NAEP) and independent 
assessments, and achievement awards for states. CBO estimates 
that implementing this title would cost $2.6 billion over the 
2002-2006 period.
    Achievement in Education Awards. H.R. 1 would authorize $40 
million in 2002 for a new Education Award program that would 
allow the Secretary of Education to award grants to states that 
make significant progress in overall student achievement, 
economically disadvantaged students' achievement, and the 
English proficiency of non-English proficient students. H.R. 1 
would also authorize the Secretary to award bonus payments to 
states that complete the development of state assessments in 
advance of the deadline. States would make awards to schools 
that make the most progress in the state.
    The bill also would establish penalties for states based on 
state assessment results. States that fail to make yearly 
progress for two consecutive years could have their 
administrative funds re- 
duced up to 30 percent. States that fail to make progress in 
subse- 
quent years could have up to 75 percent of their administrative 
funds reduced. CBO expects that this provision would not 
significantly change spending.
    Development of State Standards and Assessments. H.R. 1 
would authorize $400 million in 2002 for the development and 
administration of state standards and assessments described in 
title I of this bill.
    Grants for Independent Assessments and Administration of 
State Assessments Under NAEP. The bill also would authorize $69 
million for states to administer assessments of fourth and 
eighth grade reading and mathematics under NAEP, and to offset 
the cost of independent assessments described in title I of 
this bill.
    Funding Flexibility for State and Local Education Agencies. 
H.R. 1 would allow states to transfer up to 50 percent of non-
administrative funds between the Teacher Quality, State and 
Local Innovative Programs, Safe Schools, 21st Century Community 
Learning Centers, and Enhancing Education Through Technology 
programs. H.R. 1 would also allow states to transfer fund from 
these programs into its allocation under title I of this bill. 
CBO expects that this provision would not significantly change 
spending.
            Title VIII--General Provisions
    Flexibility and Coordination. H.R. 1 would allow state 
educational agencies to consolidate funds for administration of 
programs. It also would allow state educational agencies to 
submit a consolidated state plan or application for each of the 
programs in which the state participates or applies. CBO 
anticipates that these provisions would have no budgetary 
effect.
            Title IX--Miscellaneous Provisions
    The bill would authorize a total of $60 million in 2002 for 
education for homeless children and youth and such sums as may 
be necessary for 2003 through 2006. CBO estimates that 
implementing this title would cost $312 million over the 2002-
2006 period.
    Homeless Education. H.R. 1 would amend and reauthorize 
Subtitle B of Title VII of the Stewart D. McKinney Homeless 
Assistance Act, authorizing $60 million for education for 
homeless children and youth in 2002. The appropriation for 2001 
was $35 million.
    Repeals. H.R. 1 would repeal Parts A and C of Title II, and 
Title VI of the Goals 2000: Educate America Act; the Troops to 
Teachers Act of 1999; Titles IX, XI, XII, and XIV of ESEA; and 
Parts A, B, C, D, F, G, I, J, and L of Title X of ESEA; and 
sections 13001 and 13002 of Title XIII of ESEA.
    Programs that would be repealed in H.R. 1 that do not have 
similar activities authorized elsewhere in the bill include:
          Native Hawaiian Education (Part B of Title IX),
          Fund for Improvement of Education (Part A of Title X, 
        except counseling services),
          Urban Education (Subpart 1 of Part J of Title X),
          Physical Education for Progress (Part L of Title X),
          Coordinated Services (Title XI),
          School Facilities Infrastructure Improvement Act 
        (Title XII), and
          National Education Goals Panel (Parts A and C of 
        Title II of Goals 2000).
    Pay as you go considerations: None.
    Estimated impact on state, local, and tribal governments: 
The bill would reauthorize certain sections of the Elementary 
and Secondary Education Act of 1965 and would authorize about 
$23 billion in grants to state and local education agencies and 
tribal governments to support their efforts in 2002 to improve 
educational opportunities and performance for specific 
populations of students. The bill contains no intergovernmental 
mandates as defined in UMRA. In general, any costs to state, 
local, or tribal governments as a result of enactment of this 
bill would be incurred voluntarily, as conditions of aid.
    Estimated impact on the private sector: The bill contains 
no private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Donna Wong; impact on 
state, local, and tribal governments: Susan Sieg Tompkins; 
impact on the private sector: Nabeel Alsalam.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    In accordance with clause (3)(c) of House rule XIII, the 
goals of H.R. 1 are to transform the federal role in education 
and advance our nation's education priorities. The bill 
reauthorizes the Elementary and Secondary Education Act of 1965 
and fundamentally reforms the Act by increasing accountability 
for student performance, focusing on what works, reducing 
bureaucracy, increasing flexibility, and empowering parents. 
Key components of the legislation include: (1) closing the 
achievement gap through high State academic standards, annual 
State academic assessments, and consequences for schools that 
fail to teach; (2) promoting parental empowerment through 
reports to parents on the performance of States and schools, 
assisting charter schools, expanding public school choice, and 
allowing students in failing schools to receive supplementary 
educational services from a provider of their parent's choice; 
(3) improving literacy by focusing on reading in the early 
grades and early childhood reading instruction; (4) expanding 
freedom to teach and learn by increasing flexibility in Title I 
and reducing duplicative and excessive programs and 
regulations; (5) rewarding success and sanctioning failure by 
providing financial rewards for States that improve academic 
achievement and narrow the achievement gap, and reducing 
federal funds to States that fail to demonstrate results; (6) 
improving teacher quality by ensuring that all students are 
taught by fully qualified teachers, encouraging professional 
development based on research, and strengthening math and 
science education; and (7) making schools safer by protecting 
teachers from frivolous lawsuits, promoting school safety, 
allowing students to escape unsafe schools, and supporting 
character education. The Committee expects the Department of 
Education to comply with H.R. 1 and implement the changes to 
the law in accordance with these stated goals.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress in the 
Constitution to enact the law proposed by H.R. 1. The Committee 
believes that the amendments made by this bill to the 
Elementary and Secondary Education Act are within Congress' 
authority under Article I, section 8, clause 1 of the 
Constitution.

                           Committee Estimate

    Clauses 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 1. However, clause 3(d)(3)(B) of that rule provides that 
this requirement does not apply when the Committee has included 
in its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

             ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

SECTION 1. TABLE OF CONTENTS.

  This Act may be cited as the ``Elementary and Secondary 
Education Act of 1965''.

      TITLE I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS

[SEC. 1001. DECLARATION OF POLICY AND STATEMENT OF PURPOSE.

  [(a) Statement of Policy.--
          [(1) In general.--The Congress declares it to be the 
        policy of the United States that a high-quality 
        education for all individuals and a fair and equal 
        opportunity to obtain that education are a societal 
        good, are a moral imperative, and improve the life of 
        every individual, because the quality of our individual 
        lives ultimately depends on the quality of the lives of 
        others.
          [(2) Additional policy.--The Congress further 
        declares it to be the policy of the United States to 
        expand the program authorized by this title over the 
        fiscal years 1996 through 1999 by increasing funding 
        for this title by at least $750,000,000 over baseline 
        each fiscal year and thereby increasing the percentage 
        of eligible children served in each fiscal year with 
        the intent of serving all eligible children by fiscal 
        year 2004.
  [(b) Recognition of Need.--The Congress recognizes that--
          [(1) although the achievement gap between 
        disadvantaged children and other children has been 
        reduced by half over the past two decades, a sizable 
        gap remains, and many segments of our society lack the 
        opportunity to become well educated;
          [(2) the most urgent need for educational improvement 
        is in schools with high concentrations of children from 
        low-income families and achieving the National 
        Education Goals will not be possible without 
        substantial improvement in such schools;
          [(3) educational needs are particularly great for 
        low-achieving children in our Nation's highest-poverty 
        schools, children with limited English proficiency, 
        children of migrant workers, children with 
        disabilities, Indian children, children who are 
        neglected or delinquent, and young children and their 
        parents who are in need of family-literacy services;
          [(4) while title I and other programs funded under 
        this Act contribute to narrowing the achievement gap 
        between children in high-poverty and low-poverty 
        schools, such programs need to become even more 
        effective in improving schools in order to enable all 
        children to achieve high standards; and
          [(5) in order for all students to master challenging 
        standards in core academic subjects as described in the 
        third National Education Goal described in section 
        102(3) of the Goals 2000: Educate America Act, students 
        and schools will need to maximize the time spent on 
        teaching and learning the core academic subjects.
  [(c) What Has Been Learned Since 1988.--To enable schools to 
provide all children a high-quality education, this title 
builds upon the following learned information:
          [(1) All children can master challenging content and 
        complex problem-solving skills. Research clearly shows 
        that children, including low-achieving children, can 
        succeed when expectations are high and all children are 
        given the opportunity to learn challenging material.
          [(2) Conditions outside the classroom such as hunger, 
        unsafe living conditions, homelessness, unemployment, 
        violence, inadequate health care, child abuse, and drug 
        and alcohol abuse can adversely affect children's 
        academic achievement and must be addressed through the 
        coordination of services, such as health and social 
        services, in order for the Nation to meet the National 
        Education Goals.
          [(3) Use of low-level tests that are not aligned with 
        schools' curricula fails to provide adequate 
        information about what children know and can do and 
        encourages curricula and instruction that focus on the 
        low-level skills measured by such tests.
          [(4) Resources are more effective when resources are 
        used to ensure that children have full access to 
        effective high-quality regular school programs and 
        receive supplemental help through extended-time 
        activities.
          [(5) Intensive and sustained professional development 
        for teachers and other school staff, focused on 
        teaching and learning and on helping children attain 
        high standards, is too often not provided.
          [(6) Insufficient attention and resources are 
        directed toward the effective use of technology in 
        schools and the role technology can play in 
        professional development and improved teaching and 
        learning.
          [(7) All parents can contribute to their children's 
        success by helping at home and becoming partners with 
        teachers so that children can achieve high standards.
          [(8) Decentralized decisionmaking is a key ingredient 
        of systemic reform. Schools need the resources, 
        flexibility, and authority to design and implement 
        effective strategies for bringing their children to 
        high levels of performance.
          [(9) Opportunities for students to achieve high 
        standards can be enhanced through a variety of 
        approaches such as public school choice and public 
        charter schools.
          [(10) Attention to academics alone cannot ensure that 
        all children will reach high standards. The health and 
        other needs of children that affect learning are 
        frequently unmet, particularly in high-poverty schools, 
        thereby necessitating coordination of services to 
        better meet children's needs.
          [(11) Resources provided under this title can be 
        better targeted on the highest-poverty local 
        educational agencies and schools that have children 
        most in need.
          [(12) Equitable and sufficient resources, 
        particularly as such resources relate to the quality of 
        the teaching force, have an integral relationship to 
        high student achievement.
  [(d) Statement of Purpose.--The purpose of this title is to 
enable schools to provide opportunities for children served to 
acquire the knowledge and skills contained in the challenging 
State content standards and to meet the challenging State 
performance standards developed for all children. This purpose 
shall be accomplished by--
          [(1) ensuring high standards for all children and 
        aligning the efforts of States, local educational 
        agencies, and schools to help children served under 
        this title to reach such standards;
          [(2) providing children an enriched and accelerated 
        educational program, including, when appropriate, the 
        use of the arts, through schoolwide programs or through 
        additional services that increase the amount and 
        quality of instructional time so that children served 
        under this title receive at least the classroom 
        instruction that other children receive;
          [(3) promoting schoolwide reform and ensuring access 
        of children (from the earliest grades) to effective 
        instructional strategies and challenging academic 
        content that includes intensive complex thinking and 
        problem-solving experiences;
          [(4) significantly upgrading the quality of 
        instruction by providing staff in participating schools 
        with substantial opportunities for professional 
        development;
          [(5) coordinating services under all parts of this 
        title with each other, with other educational services, 
        and, to the extent feasible, with health and social 
        service programs funded from other sources;
          [(6) affording parents meaningful opportunities to 
        participate in the education of their children at home 
        and at school;
          [(7) distributing resources, in amounts sufficient to 
        make a difference, to areas and schools where needs are 
        greatest;
          [(8) improving accountability, as well as teaching 
        and learning, by using State assessment systems 
        designed to measure how well children served under this 
        title are achieving challenging State student 
        performance standards expected of all children; and
          [(9) providing greater decisionmaking authority and 
        flexibility to schools and teachers in exchange for 
        greater responsibility for student performance.

[SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Local Educational Agency Grants.--For the purpose of 
carrying out part A, other than section 1120(e), there are 
authorized to be appropriated $7,400,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the four 
succeeding fiscal years.
  [(b) Even Start.--For the purpose of carrying out part B, 
there are authorized to be appropriated $250,000,000 for fiscal 
year 2001 and such sums as may be necessary for each of the 
four succeeding fiscal years.
  [ (c) Education of Migratory Children.--For the purpose of 
carrying out part C, there are authorized to be appropriated 
$310,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.
  [ (d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk of Dropping Out.--For the 
purpose of carrying out part D, there are authorized to be 
appropriated $40,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years.
  [ (e) Capital Expenses.--For the purpose of carrying out 
section 1120(e), there are authorized to be appropriated 
$41,434,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.
  [(f) Additional Assistance for School Improvement.--For the 
purpose of providing additional needed assistance to carry out 
sections 1116 and 1117, there are authorized to be appropriated 
such sums as may be necessary for fiscal year 1996 and each of 
the three succeeding fiscal years.
  [ (g) Federal Activities.--
          [(1) Section 1501.--For the purpose of carrying out 
        section 1501, there are authorized to be appropriated 
        $9,000,000 for fiscal year 1995 and such sums as may be 
        necessary for each of the four succeeding fiscal years.
          [(2) Sections 1502 and 1503.--For the purpose of 
        carrying out sections 1502 and 1503, there are 
        authorized to be appropriated $50,000,000 for fiscal 
        year 1995 and such sums as may be necessary for each of 
        the four succeeding fiscal years.

[SEC. 1003. RESERVATION AND ALLOCATION FOR SCHOOL IMPROVEMENT.

  [(a) Payment for School Improvement.--
          [(1) In general.--Except as provided in paragraph 
        (3), each State may reserve for the proper and 
        efficient performance of its duties under subsections 
        (c)(5) and (d) of section 1116, and section 1117, one-
        half of 1 percent of the funds allocated to the State 
        under subsections (a), (c), and (d), of section 1002 
        for fiscal year 1995 and each succeeding fiscal year.
          [(2) Minimum.--The total amount that may be reserved 
        by each State, other than the outlying areas, under 
        this subsection for any fiscal year, when added to 
        amounts appropriated for such fiscal year under section 
        1002(f) that are allocated to the State under 
        subsection (b), if any, may not be less than $200,000. 
        The total amount that may be reserved by each outlying 
        area under this subsection for any fiscal year, when 
        added to amounts appropriated for such fiscal year 
        under section 1002(f) that are allocated under 
        subsection (b) to the outlying area, if any, may not be 
        less than $25,000.
          [(3) Special rule.--If the amount reserved under 
        paragraph (1) when added to the amount made available 
        under section 1002(f) for a State is less than $200,000 
        for any fiscal year, then such State may reserve such 
        additional funds under subsections (a), (c), and (d) of 
        section 1002 as are necessary to make $200,000 
        available to such State.
  [(b) Additional State Allocations for School Improvement.--
From the amount appropriated under section 1002(f) for any 
fiscal year, each State shall be eligible to receive an amount 
that bears the same ratio to the amount appropriated as the 
amount allocated to the State under this part (other than 
section 1120(e)) bears to the total amount allocated to all 
States under this part (other than section 1120(e)).

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

                 [Subpart 1--Basic Program Requirements

[SEC. 1111. STATE PLANS.

  [(a) Plans Required.--
          [(1) In general.--Any State desiring to receive a 
        grant under this part shall submit to the Secretary a 
        plan, developed in consultation with local educational 
        agencies, teachers, pupil services personnel, 
        administrators, other staff, and parents, that 
        satisfies the requirements of this section and that is 
        coordinated with other programs under this Act, the 
        Goals 2000: Educate America Act, and other Acts, as 
        appropriate, consistent with section 14306.
          [(2) Consolidation plan.--A State plan submitted 
        under paragraph (1) may be submitted as part of a 
        consolidation plan under section 14302.
  [(b) Standards and Assessments.--
          [(1) Challenging standards.--(A) Each State plan 
        shall demonstrate that the State has developed or 
        adopted challenging content standards and challenging 
        student performance 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) If a State has State content standards or State 
        student performance standards developed under title III 
        of the Goals 2000: Educate America Act and an aligned 
        set of assessments for all students developed under 
        such title, or, if not developed under such title, 
        adopted under another process, the State shall use such 
        standards and assessments, modified, if necessary, to 
        conform with the requirements of subparagraphs (A) and 
        (D) of this paragraph, and paragraphs (2) and (3).
          [(C) If a State has not adopted State content 
        standards and State student performance standards for 
        all students, the State plan shall include a strategy 
        and schedule for developing State content standards and 
        State student performance standards for elementary and 
        secondary school children served under this part in 
        subjects as determined by the State, but including at 
        least mathematics and reading or language arts by the 
        end of the one-year period described in paragraph (6), 
        which standards shall include the same knowledge, 
        skills, and levels of performance expected of all 
        children.
          [(D) Standards under this paragraph shall include--
                  [(i) challenging 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;
                  [(ii) challenging student performance 
                standards that--
                          [(I) are aligned with the State's 
                        content standards;
                          [(II) describe two levels of high 
                        performance, proficient and advanced, 
                        that determine how well children are 
                        mastering the material in the State 
                        content standards; and
                          [(III) describe a third level of 
                        performance, partially proficient, to 
                        provide complete information about the 
                        progress of the lower performing 
                        children toward achieving to the 
                        proficient and advanced levels of 
                        performance.
          [(E) 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 standards, the 
        State plan shall describe a strategy for ensuring that 
        such students are taught the same knowledge and skills 
        and held to the same expectations as are all children.
          [(2) Yearly progress.--
                  [(A) Each State plan shall demonstrate, based 
                on assessments described under paragraph (3), 
                what constitutes adequate yearly progress of--
                          [(i) any school served under this 
                        part toward enabling children to meet 
                        the State's student performance 
                        standards; and
                          [(ii) any local educational agency 
                        that received funds under this part 
                        toward enabling children in schools 
                        receiving assistance under this part to 
                        meet the State's student performance 
                        standards.
                  [(B) Adequate yearly progress shall be 
                defined in a manner--
                          [(i) that is consistent with 
                        guidelines established by the Secretary 
                        that result in continuous and 
                        substantial yearly improvement of each 
                        local educational agency and school 
                        sufficient to achieve the goal of all 
                        children served under this part meeting 
                        the State's proficient and advanced 
                        levels of performance, particularly 
                        economically disadvantaged and limited 
                        English proficient children; and
                          [(ii) that links progress primarily 
                        to performance on the assessments 
                        carried out under this section while 
                        permitting progress to be established 
                        in part through the use of other 
                        measures.
          [(3) Assessments.--Each State plan shall demonstrate 
        that the State has developed or adopted a set of high-
        quality, yearly student assessments, including 
        assessments in at least mathematics and reading or 
        language arts, that will be used as the primary means 
        of determining the yearly performance of each local 
        educational agency and school served under this part in 
        enabling all children served under this part to meet 
        the State's student performance standards. Such 
        assessments shall--
                  [(A) be the same assessments used to measure 
                the performance of all children, if the State 
                measures the performance of all children;
                  [(B) be aligned with the State's challenging 
                content and student performance standards and 
                provide coherent information about student 
                attainment of such standards;
                  [(C) be used for purposes for which such 
                assessments are valid and reliable, and be 
                consistent with relevant, nationally recognized 
                professional and technical standards for such 
                assessments;
                  [(D) measure the proficiency of students in 
                the academic subjects in which a State has 
                adopted challenging content and student 
                performance standards and be administered at 
                some time during--
                          [(i) grades 3 through 5;
                          [(ii) grades 6 through 9; and
                          [(iii) grades 10 through 12;
                  [(E) involve multiple up-to-date measures of 
                student performance, including measures that 
                assess higher order thinking skills and 
                understanding;
                  [(F) provide for--
                          [(i) the participation in such 
                        assessments of all students;
                          [(ii) the reasonable adaptations and 
                        accommodations for students with 
                        diverse learning needs, necessary to 
                        measure the achievement of such 
                        students relative to State content 
                        standards; and
                          [(iii) the inclusion of limited 
                        English proficient students who shall 
                        be assessed, to the extent practicable, 
                        in the language and form most likely to 
                        yield accurate and reliable information 
                        on what such students know and can do, 
                        to determine such students' mastery of 
                        skills in subjects other than English;
                  [(G) 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, however 
                the performance of students who have attended 
                more than one school in the local educational 
                agency in any academic year shall be used only 
                in determining the progress of the local 
                educational agency;
                  [(H) provide individual student interpretive 
                and descriptive reports, which shall include 
                scores, or other information on the attainment 
                of student performance standards; and
                  [(I) enable results to be disaggregated 
                within each State, local educational agency, 
                and school by gender, by each major racial and 
                ethnic group, by 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.
          [(4) Special rule.--Assessment measures that do not 
        meet the requirements of paragraph (3)(C) may be 
        included as one of the multiple measures, if a State 
        includes in the State plan information regarding the 
        State's efforts to validate such measures.
          [(5) 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 
        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 assessment measures are 
        needed. Upon request, the Secretary shall assist with 
        the identification of appropriate assessment measures 
        in the needed languages through the Office of Bilingual 
        Education and Minority Languages Affairs.
          [(6) Standard and assessment development.--(A) A 
        State that does not have challenging State content 
        standards and challenging State student performance 
        standards, in at least mathematics and reading or 
        language arts, shall develop such standards within one 
        year of receiving funds under this part after the first 
        fiscal year for which such State receives such funds 
        after the date of enactment of the Improving America's 
        Schools Act of 1994.
          [(B) A State that does not have assessments that meet 
        the requirements of paragraph (3) in at least 
        mathematics and reading or language arts shall develop 
        and test such assessments within four years (one year 
        of which shall be used for field testing such 
        assessment), of receiving funds under this part after 
        the first fiscal year for which such State receives 
        such funds after the date of enactment of the Improving 
        America's Schools Act of 1994 and shall develop 
        benchmarks of progress toward the development of such 
        assessments that meet the requirements of paragraph 
        (3), including periodic updates.
          [(C) The Secretary may extend for one additional year 
        the time for testing new assessments under subparagraph 
        (B) upon the request of the State and the submission of 
        a strategy to correct problems identified in the field 
        testing of such new assessments.
          [(D) If, after the one-year period described in 
        subparagraph (A), a State does not have challenging 
        State content and challenging student performance 
        standards in at least mathematics and reading or 
        language arts, a State shall adopt a set of standards 
        in these subjects such as the standards and assessments 
        contained in other State plans the Secretary has 
        approved.
          [(E) If, after the four-year period described in 
        subparagraph (B), a State does not have assessments, in 
        at least mathematics and reading or language arts, that 
        meet the requirement of paragraph (3), and is denied an 
        extension under subparagraph (C), a State shall adopt 
        an assessment that meets the requirement of paragraph 
        (3) such as one contained in other State plans the 
        Secretary has approved.
          [(7) Transitional assessments.--(A) If a State does 
        not have assessments that meet the requirements of 
        paragraph (3) and proposes to develop such assessments 
        under paragraph (6)(B), the State may propose to use a 
        transitional set of yearly statewide assessments that 
        will assess the performance of complex skills and 
        challenging subject matter.
          [(B) For any year in which a State uses transitional 
        assessments, the State shall devise a procedure for 
        identifying local educational agencies under paragraphs 
        (3) and (7) of section 1116(d), and schools under 
        paragraphs (1) and (7) of section 1116(c), that rely on 
        accurate information about the academic progress of 
        each such local educational agency and school.
          [(8) Requirement.--Each State plan shall describe--
                  [(A) how the State educational agency will 
                help each local educational agency and school 
                affected by the State plan 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; 
                and
                  [(B) such other factors the State deems 
                appropriate to provide students an opportunity 
                to achieve the knowledge and skills described 
                in the challenging content standards adopted by 
                the State.
  [(c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
          [(1)(A) the State educational agency will implement a 
        system of school support teams under section 1117(c), 
        including provision of necessary professional 
        development for those teams;
          [(B) 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 to carry out the State educational agency's 
        responsibilities under this part, including technical 
        assistance in providing professional development under 
        section 1119 and technical assistance under section 
        1117; and
          [(C)(i) where educational service agencies exist, the 
        State educational agency will consider providing 
        professional development and technical assistance 
        through such agencies; and
          [(ii) 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;
          [(2) the State educational agency will notify local 
        educational agencies and the public of the standards 
        and 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;
          [(3) 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;
          [(4) the State educational agency will encourage the 
        use of funds from other Federal, State, and local 
        sources for schoolwide reform in schoolwide programs 
        under section 1114;
          [(5) the Committee of Practitioners established under 
        section 1603(b) will be substantially involved in the 
        development of the plan and will continue to be 
        involved in monitoring the plan's implementation by the 
        State;
          [(6) the State will coordinate activities funded 
        under this part with school-to-work, vocational 
        education, cooperative education and mentoring 
        programs, and apprenticeship programs involving 
        business, labor, and industry, as appropriate; and
          [(7) 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 
        high school diploma or its recognized equivalent or who 
        have low levels of literacy.
  [(d) Peer Review and Secretarial Approval.--
          [(1) In general.--The Secretary shall--
                  [(A) establish a peer review process to 
                assist in the review and recommendations for 
                revision of State plans;
                  [(B) appoint individuals to the peer review 
                process who are representative of State 
                educational agencies, local educational 
                agencies, teachers, and parents;
                  [(C) following an initial peer review, 
                approve a State plan the Secretary determines 
                meets the requirements of subsections (a), (b), 
                and (c);
                  [(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 under 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 content standards or to use specific 
                assessment instruments or items.
          [(2) Withholding.--The Secretary may withhold funds 
        for State administration and activities under section 
        1117 until the Secretary determines that the State plan 
        meets the requirements of this section.
  [(e) 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
                  [(B) be periodically reviewed and revised by 
                the State, as necessary, to reflect changes in 
                the State's strategies and programs under this 
                part.
          [(2) Additional information.--If the State makes 
        significant changes in its plan, such as the adoption 
        of new State content standards and State student 
        performance standards, new assessments, or a new 
        definition of adequate progress, the State shall submit 
        such information to the Secretary.
  [(f) Limitation on Conditions.--Nothing in this part 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 
or student performance standards and assessments, curriculum, 
or program of instruction, as a condition of eligibility to 
receive funds under this part.
  [(g) Special Rule.--If the aggregate State expenditure by a 
State educational agency for the operation of elementary and 
secondary education programs in the State is less than such 
agency's aggregate Federal expenditure for the State operation 
of all Federal elementary and secondary education programs, 
then the State plan shall include assurances and specific 
provisions that such State will provide State expenditures for 
the operation of elementary and secondary education programs 
equal to or exceeding the  level of  Federal  expenditures  for 
 such  operation  by October 1, 1998.

[SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

  [(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 Goals 2000: Educate 
        America Act, and other Acts, as appropriate, as 
        specified in section 14306.
          [(2) Consolidated application.--The plan may be 
        submitted as part of a consolidated application under 
        section 14304.
  [(b) Plan Provisions.--Each local educational agency plan 
shall include--
          [(1) a description of additional high-quality student 
        assessments, if any, other than the assessments 
        described in the State plan under section 1111, that 
        the local educational agency and schools served under 
        this part will use to--
                  [(A) determine the success of children served 
                under this part in meeting the State's student 
                performance standards and provide information 
                to teachers, parents, and students on the 
                progress being made toward meeting the State 
                student performance standards described in 
                section 1111(b)(1)(D)(ii);
                  [(B) assist in diagnosis, teaching, and 
                learning in the classroom in ways that best 
                enable children served under this part to meet 
                State standards and do well in the local 
                curriculum; and
                  [(C) determine what revisions are needed to 
                projects under this part so that such children 
                will meet the State's student performance 
                standards;
          [(2) at the local educational agency's discretion, a 
        description of any other indicators that will be used 
        in addition to the assessments described in paragraph 
        (1) for the uses described in such paragraph;
          [(3) a description of the strategy the local 
        educational agency will use to provide professional 
        development for teachers, and, where appropriate, pupil 
        services personnel, administrators, parents and other 
        staff, including local educational agency level staff 
        in accordance with section 1119;
          [(4) 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--
                  [(A) Even Start, Head Start, and other 
                preschool programs, including plans for the 
                transition of participants in such programs to 
                local elementary school programs, vocational 
                education programs, and school-to-work 
                transition programs; and
                  [(B) services for children with limited 
                English proficiency or with disabilities, 
                migratory children served under part C or who 
                were formerly eligible for services under part 
                C in the two-year period preceding the date of 
                the enactment of the Improving America's School 
                Act of 1994, neglected or delinquent youth and 
                youth at risk of dropping out served under part 
                D, homeless children, and immigrant children in 
                order to increase program effectiveness, 
                eliminate duplication, and reduce fragmentation 
                of the instructional program;
          [(5) a description of the poverty criteria that will 
        be used to select school attendance areas under section 
        1113;
          [(6) a description of how teachers, in consultation 
        with parents, administrators, and pupil services 
        personnel, in targeted assistance schools under section 
        1115, will identify the eligible children most in need 
        of services under this part;
          [(7) 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, for neglected and delinquent 
        children in community day school programs, and for 
        eligible homeless children;
          [(8) 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;
          [(9) where 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 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, agencies operating 
        Even Start programs, or another comparable public early 
        childhood development program.
  [(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 project authority;
                  [(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 content standards and State 
                student performance standards;
                  [(D) fulfill such agency's school improvement 
                responsibilities under section 1116, including 
                taking corrective actions under section 
                1116(c)(4);
                  [(E) coordinate and collaborate, to the 
                extent feasible and necessary as determined by 
                the local educational agency, with other 
                agencies providing services to children, youth, 
                and families, including health and social 
                services;
                  [(F) provide services to eligible children 
                attending private elementary and secondary 
                schools in accordance with section 1120, and 
                timely and meaningful consultation with private 
                school officials regarding such services;
                  [(G) take into account the experience of 
                model programs for the educationally 
                disadvantaged, and the findings of relevant 
                research indicating that services may be most 
                effective if focused on students in the 
                earliest grades at schools that receive funds 
                under this part; and
                  [(H) beginning in fiscal year 1997 and in the 
                case that a local educational agency 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 or 
                under section 651 of such Act, as such section 
                651 was in effect on the day preceding the date 
                of enactment of the Human Services Amendments 
                of 1994.
          [(2) Special rule.--In carrying out subparagraph (H) 
        of paragraph (1) the Secretary--
                  [(A) in fiscal year 1995, shall consult with 
                the Secretary of Health and Human Services on 
                the implementation of such subparagraph 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) in fiscal year 1996, shall disseminate 
                to local educational agencies the Head Start 
                Performance Standards revised pursuant to 
                section 641A(a) of the Head Start Act, and such 
                agencies effected 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.--The provisions of this 
        subsection shall not apply to preschool programs using 
        the Even Start model or to Even Start programs which 
        are expanded through the use of funds under this part.
  [(d) Plan Development and Duration.--Each local educational 
agency plan shall--
          [(1) be developed in consultation with teachers, 
        including vocational teachers, and pupil services 
        personnel, where appropriate, and parents of children 
        in schools served under this part; and
          [(2)(A) remain in effect for the duration of the 
        local educational agency's participation under this 
        part; and
          [(B) periodically be reviewed and revised, as 
        necessary, to reflect changes in the local educational 
        agency's strategies and programs.
  [(e) State Approval.--
          [(1) In general.--Each local educational agency plan 
        shall be filed according to a schedule established by 
        the State educational agency, except that a local 
        educational agency shall have not more than one year 
        after the date of enactment of the Improving America's 
        Schools Act of 1994 to have such plan provisionally 
        approved by the State educational agency and not more 
        than two years after the date of enactment of such Act 
        to have such plan finally approved 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 will enable schools served 
        under this part to substantially help all children 
        served under this part meet the standards expected of 
        all children described in section 1111(b)(1).
          [(3) Review.--The State educational agency shall 
        review the local educational agency's plan to determine 
        if such agency's professional development activities 
        are in accordance with section 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.

[SEC. 1113. 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 in 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).
          [(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 or a 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; and
                  [(C) 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)(C), 
        the number of children attending private elementary 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 paragraph (1).
  [(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 subsection (a) or (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) 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) 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) where appropriate, eligible homeless 
                children who do not attend participating 
                schools, including providing educationally 
                related support services to children in 
                shelters;
                  [(B) children in local institutions for 
                neglected or delinquent children; and
                  [(C) where appropriate, neglected and 
                delinquent children in community day school 
                programs.

[SEC. 1114. SCHOOLWIDE PROGRAMS.

  [(a) Use of Funds for Schoolwide Programs.--
          [(1) In general.--A local educational agency may use 
        funds under this part, in combination with other 
        Federal, State, and local funds, in order to upgrade 
        the entire educational program in a school described in 
        subparagraph (A) or (B) if, for the initial year of the 
        schoolwide program, the school meets either of the 
        following criteria:
                  [(A) For the school year 1995-1996--
                          [(i) the school serves an eligible 
                        school attendance area in which not 
                        less than 60 percent of the children 
                        are from low-income families; or
                          [(ii) not less than 60 percent of the 
                        children enrolled in the school are 
                        from such families.
                  [(B) For the school year 1996-1997 and 
                subsequent years--
                          [(i) the school serves an eligible 
                        school attendance area in which not 
                        less than 50 percent of the children 
                        are from low-income families; or
                          [(ii) not less than 50 percent of the 
                        children enrolled in the school are 
                        from such families.
          [(2) State assurances.--(A) A local educational 
        agency may start new schoolwide programs under this 
        section only after the State educational agency 
        provides written information to each local educational 
        agency in the State that demonstrates that such State 
        agency has established the statewide system of support 
        and improvement required by subsections (c)(1) and (e) 
        of section 1117.
          [(B) A school that desires to initiate a schoolwide 
        program under this section prior to the establishment 
        of the statewide system of support and improvement 
        required in subsections (c)(1) and (e) of section 1117 
        shall demonstrate to the local educational agency that 
        such school has received high quality technical 
        assistance and support from other providers of 
        assistance such as comprehensive technical assistance 
        centers, regional laboratories, institutions of higher 
        education, educational service agencies, or other local 
        consortia.
          [(3) Identification.--(A) No school participating in 
        a schoolwide program shall be required to identify 
        particular children under this part as eligible to 
        participate in a schoolwide program or to provide 
        supplemental services to such children.
          [(B) 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.
          [(4) Special rule.--(A) 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, or 
        any discretionary grant program administered by the 
        Secretary (other than formula or discretionary grant 
        programs under the Individuals with Disabilities 
        Education Act), to support schoolwide programs, if the 
        intent and purposes of such other programs are met.
          [(B) A school that chooses to use funds from such 
        other programs shall not be relieved of the 
        requirements relating to health, safety, civil rights, 
        gender equity, 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 or 
        local educational agencies that apply to the receipt of 
        funds from such programs.
          [(5) 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 that is based on information on 
                the performance of children in relation to the 
                State content standards and the State student 
                performance 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 
                        performance described in section 
                        1111(b)(1)(D);
                          [(ii) are based on effective means of 
                        improving the achievement of children;
                          [(iii) use effective instructional 
                        strategies, which may include the 
                        integration of vocational and academic 
                        learning (including applied learning 
                        and team teaching strategies), that--
                                  [(I) 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
                                  [(II) include strategies for 
                                meeting the educational needs 
                                of historically underserved 
                                populations, including girls 
                                and women;
                          [(iv)(I) address the needs of all 
                        children in the school, but 
                        particularly the needs of children 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, 
                                comprehensive career 
                                development, occupational 
                                information, enhancement of 
                                employability skills and 
                                occupational skills, personal 
                                finance education, job 
                                placement services, and 
                                innovative teaching methods 
                                which may include applied 
                                learning and team teaching 
                                strategies;
                                  [(cc) services to prepare 
                                students for the transition 
                                from school to work, including 
                                the formation of partnerships 
                                between elementary, middle, and 
                                secondary schools and local 
                                businesses, and the integration 
                                of school-based and work-based 
                                learning; and
                                  [(dd) incorporation of 
                                gender-equitable methods and 
                                practices; and
                          [(II) address how the school will 
                        determine if such needs have been met; 
                        and
                          [(vii) are consistent with, and are 
                        designed to implement, the State and 
                        local improvement plans, if any, 
                        approved under title III of the Goals 
                        2000: Educate America Act.
                  [(C) Instruction by highly qualified 
                professional staff.
                  [(D) In accordance with section 1119 and 
                subsection (a)(5), professional development for 
                teachers and aides, and, where appropriate, 
                pupil services personnel, parents, principals, 
                and other staff to enable all children in the 
                school to meet the State's student performance 
                standards.
                  [(E) Strategies to increase parental 
                involvement, such as family literary services.
                  [(F) Plans for assisting preschool children 
                in the transition from early childhood 
                programs, such as Head Start, Even Start, or a 
                State-run preschool program, to local 
                elementary school programs.
                  [(G) Measures to include teachers in the 
                decisions regarding the use of assessments 
                described in section 1112(b)(1) in order to 
                provide information on, and to improve, the 
                performance of individual students and the 
                overall instructional program.
                  [(H) Activities to ensure that students who 
                experience difficulty mastering any of the 
                standards required by section 1111(b) during 
                the course of the school year shall be provided 
                with effective, timely additional assistance, 
                which shall include--
                          [(i) measures to ensure that 
                        students' difficulties are identified 
                        on a timely basis and to provide 
                        sufficient information on which to base 
                        effective assistance;
                          [(ii) to the extent the school 
                        determines feasible using funds under 
                        this part, periodic training for 
                        teachers in how to identify such 
                        difficulties and to provide assistance 
                        to individual students; and
                          [(iii) for any student who has not 
                        met such standards, teacher-parent 
                        conferences, at which time the teacher 
                        and parents shall discuss--
                                  [(I) what the school will do 
                                to help the student meet such 
                                standards;
                                  [(II) what the parents can do 
                                to help the student improve the 
                                student's performance; and
                                  [(III) additional assistance 
                                which may be available to the 
                                student at the school or 
                                elsewhere in the community.
          [(2) Plan.--(A) 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 
        before the date of enactment of the Improving America's 
        Schools Act of 1994), in consultation with the local 
        educational agency and its school support team or other 
        technical assistance provider under subsections (c)(1) 
        and (e) of section 1117, a comprehensive plan for 
        reforming the total instructional program in the school 
        that--
                  [(i) incorporates 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) includes a list of State and local 
                educational agency programs and other Federal 
                programs under subsection (a)(4) that will be 
                included in the schoolwide program;
                  [(iv) describes how the school will provide 
                individual student assessment results, 
                including an interpretation of those results, 
                to the parents of a child who participates in 
                the assessment required by section 1111(b)(3);
                  [(v) provides for the collection of data on 
                the achievement and assessment results of 
                students disaggregated by gender, major ethnic 
                or racial groups, limited English proficiency 
                status, migrant students, and by children with 
                disabilities as compared to other students, and 
                by economically disadvantaged students as 
                compared to students who are not economically 
                disadvantaged;
                  [(vi) seeks to produce statistically sound 
                results for each category for which assessment 
                results are disaggregated through the use of 
                oversampling or other means; and
                  [(vii) provides for the public reporting of 
                disaggregated data only when such reporting is 
                statistically sound.
          [(B) Plans developed before a State has adopted 
        standards and a set of assessments that meet the 
        criteria in paragraphs (1) and (3) of section 1111(b) 
        shall be based on an analysis of available data on the 
        achievement of students in the school and effective 
        instructional and school improvement practices.
          [(C) 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 subsections (c) and (e) of 
                        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 Improving 
                        America's Schools Act of 1994, in which 
                        case such school may continue to 
                        operate such program, but shall develop 
                        a new plan during the first year of 
                        assistance under such Act to reflect 
                        the provisions of this section;
                  [(ii) developed with the involvement of the 
                community to be served and individuals who will 
                carry out such plan, including teachers, 
                principals, other staff, and, where 
                appropriate, pupil services personnel, and 
                parents, 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 
                translated, to the extent feasible, into any 
                language that a significant percentage of the 
                parents of participating children in the school 
                speak as their primary language; and
                  [(v) where appropriate, developed in 
                coordination with programs under the School-to-
                Work Opportunities Act of 1994, the Carl D. 
                Perkins Vocational and Technical Education Act 
                of 1998, and the National and Community Service 
                Act of 1990.
  [(c) Accountability.--A schoolwide program under this section 
shall be subject to the school improvement provisions of 
section 1116.

[SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

  [(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 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) The eligible 
        population for services under this part 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 where the local educational agency 
                provides a free public education, yet are of an 
                age at which such children can benefit from an 
                organized instructional program provided in a 
                school or other educational setting.
          [(B) 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 performance 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 two shall be 
        selected solely on the basis of such criteria as 
        teacher judgment, interviews with parents, and 
        developmentally appropriate measures.
          [(2) Children included.--(A)(i) 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.
          [(ii) Funds received under this part may not be used 
        to provide services that are otherwise required by law 
        to be made available to such children but may be used 
        to coordinate or supplement such services.
          [(B) A child who, at any time in the two years 
        preceding the year for which the determination is made, 
        participated in a Head Start or Even Start program, is 
        eligible for services under this part.
          [(C)(i) A child who, at any time in the two years 
        preceding the year for which the determination is made, 
        received services under the program for youth who are 
        neglected, delinquent, or at risk of dropping out under 
        part D (or its predecessor authority) may be eligible 
        for services under this part.
          [(ii) A child in a local institution for neglected or 
        delinquent children or attending a community day 
        program for such children may be eligible for services 
        under this part.
          [(D) A child who is homeless and attending any school 
        in the local educational agency may be eligible for 
        services under this part.
  [(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 
        student performance 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 student performance standards expected 
                for all children;
                  [(B) be based on effective means for 
                improving achievement of children;
                  [(C) ensure that planning for students served 
                under this part is incorporated into existing 
                school planning;
                  [(D) use effective instructional strategies 
                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;
                  [(E) coordinate with and support the regular 
                education program, which may include--
                          [(i) counseling, mentoring, and other 
                        pupil services;
                          [(ii) college and career awareness 
                        and preparation, such as college and 
                        career guidance, comprehensive career 
                        development, occupational information, 
                        enhancement of employability skills and 
                        occupational skills, personal finance 
                        education, job placement services, and 
                        innovative teaching methods which may 
                        include applied learning and team 
                        teaching strategies;
                          [(iii) services to prepare students 
                        for the transition from school to work, 
                        including the formation of partnerships 
                        between elementary, middle, and 
                        secondary schools and local businesses, 
                        and the integration of school-based and 
                        work-based learning; and
                          [(iv) services to assist preschool 
                        children in the transition from early 
                        childhood programs to elementary school 
                        programs;
                  [(F) provide instruction by highly qualified 
                staff;
                  [(G) in accordance with subsection (e)(3) and 
                section 1119, provide opportunities for 
                professional development with resources 
                provided under this part, and from other 
                sources to the extent feasible, for 
                administrators and for teachers and other 
                school staff who work with participating 
                children in programs under this section or in 
                the regular education program; and
                  [(H) provide strategies to increase parental 
                involvement, such as family literary services.
          [(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 performance 
        by--
                  [(A) the coordination of resources provided 
                under this part with other resources to enable 
                the children served to meet the State content 
                standards and State student performance 
                standards; 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 performance standards, such as an 
                extended school year, before- and after-school, 
                and summer, programs and opportunities, 
                training for teachers regarding how to identify 
                students that require additional assistance, 
                and training for teachers regarding how to 
                implement student performance standards in the 
                classroom.
  [(d) Assignment of Personnel.--To promote the integration of 
staff supported with funds under this part and children served 
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) 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;
          [(2) participate in general professional development 
        and school planning activities; and
          [(3) collaboratively teach with regular classroom 
        teachers, if such collaborative teaching directly 
        benefits participating children.
  [(e) Special Rules.--
          [(1) Simultaneous service.--Nothing in this section 
        shall be construed to prohibit a school from serving 
        students served under this section simultaneously with 
        students with similar educational needs, in the same 
        educational settings where appropriate.
          [(2) Comprehensive services.--If 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 if funds are not reasonably available from other 
        public or private sources to provide services under 
        this part, then a portion of the funds provided under 
        this part may be used as a last resort to provide such 
        services, including--
                  [(A) the provision of basic medical 
                equipment, such as eyeglasses and hearing aids;
                  [(B) compensation of a coordinator; and
                  [(C) 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 effectively carry out the 
        professional development activities described in 
        subparagraph (G) of subsection (c)(1) 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.

[SEC. 1115A. SCHOOL CHOICE.

  [(a) Choice Programs.--A local educational agency may use 
funds under this part, in combination with State, local, and 
private funds, to develop and implement choice programs, for 
children eligible for assistance under this part, which permit 
parents to select the public school that their children will 
attend.
  [(b) Choice Plan.--A local educational agency that chooses to 
implement a school choice plan shall first develop a 
comprehensive plan that includes assurances that--
          [(1) all eligible students across grade levels will 
        have equal access to the program;
          [(2) the program does not include schools which 
        follow a racially discriminatory policy;
          [(3) describe how the school will use resources under 
        this part and from other sources to implement the plan;
          [(4) describe how the school will provide individual 
        student assessment results, including an interpretation 
        of such results, to the parents of a child who 
        participates in the assessment required by section 
        1111(b)(3);
          [(5) the plan will be developed with the involvement 
        of the community to be served and individuals who will 
        carry out the plan, including teachers, principals, and 
        other staff, parents, and, if the plan relates to a 
        secondary school, students from the school;
          [(6) the plan will be made available to parents and 
        the public;
          [(7) the program will not include schools that do not 
        receive funds under this part;
          [(8) the program will not use funds under this part 
        to pay for transportation costs;
          [(9) both the sending and receiving schools agree to 
        the student transfer; and
          [(10) such local educational agency will comply with 
        the other requirements of this part.]

SEC. 1001. FINDINGS; STATEMENT OF PURPOSE; AND RECOGNITION OF NEED.

  (a) Findings.--Congress finds the following:
          (1) The Constitution of the United States reserves to 
        the States and to the people the responsibility for the 
        general supervision of public education in kindergarten 
        through the twelfth grade.
          (2) States, local educational agencies and schools 
        should be given maximum flexibility in exchange for 
        greater academic accountability, and be given greater 
        freedom to build upon existing innovative approaches 
        for education reform.
          (3) The best education decisions are made by those 
        who know the students and who are responsible for 
        implementing the decisions.
          (4) Educators and parents should retain the right and 
        responsibility to educate their pupils and children 
        free of excessive regulation by the Federal Government.
          (5) The Supreme Court has regarded the right of 
        parents to direct the upbringing of their children as a 
        fundamental right implicit in the concept of ordered 
        liberty within the 14th Amendment to the Constitution, 
        as specified in Meyer v. Nebraska, 262 U.S. 390 (1923), 
        and Pierce v. Society of Sisters, 268 U.S. 510 (1925).
          (6) Schools that enroll high concentrations of 
        children living in poverty face the greatest 
        challenges, but effective educational strategies based 
        on scientifically based research can succeed in 
        educating children to high academic standards.
          (7) High-poverty schools are much more likely to be 
        identified as failing to meet State academic standards 
        for satisfactory progress. As a result, these schools 
        are generally the most in need of additional resources 
        and technical assistance to build the capacity of these 
        schools to address the many needs of their students.
          (8) The educational progress of children 
        participating in programs under this title is closely 
        associated with their being taught by a highly 
        qualified staff, particularly in schools with the 
        highest concentrations of poverty, where 
        paraprofessionals, uncertified teachers, and teachers 
        teaching out of field frequently provide instructional 
        services.
          (9) Congress and the public would benefit from 
        additional data evaluating the efficacy of the 
        Elementary and Secondary Education Act of 1965.
          (10) Schools operating programs assisted under this 
        part must be held accountable for the educational 
        achievement of their students, when those students fail 
        to demonstrate progress in achieving high academic 
        standards, local educational agencies and States must 
        take significant actions to improve the educational 
        opportunities available to them.
  (b) Purpose and Intent.--The purpose and intent of this title 
are to ensure that all children have a fair and equal 
opportunity to obtain a high-quality education.
  (c) Recognition of Need.--The Congress recognizes the 
following:
          (1) Educational needs are particularly great for low-
        achieving children in our Nation's highest-poverty 
        schools, children with limited English proficiency, 
        children of migrant workers, children with 
        disabilities, Indian children, children who are 
        neglected or delinquent, and young children who are in 
        need of reading assistance and family literacy 
        assistance.
          (2) Despite more than 3 decades of Federal 
        assistance, a sizable achievement gap remains between 
        minority and nonminority students, and between 
        disadvantaged students and their more advantaged peers.
          (3) Too many students attend local schools that fail 
        to provide them with a quality education, and are given 
        no alternatives to enable them to receive a quality 
        education.
          (4) States, local educational agencies, and schools 
        need to be held accountable for improving the academic 
        achievement of all students, and for identifying and 
        turning around low-performing schools.
          (5) States and local educational agencies need to 
        ensure 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, parents, and administrators 
        can measure progress against common expectations for 
        student academic achievement.
          (6) Federal education assistance is intended not only 
        to increase pupil achievement overall, but also more 
        specifically and importantly, to help ensure that all 
        students, especially the disadvantaged, meet 
        challenging academic achievement standards. It can only 
        be determined if schools, local educational agencies, 
        and States are reaching this goal if student 
        achievement results are reported specifically by 
        disadvantaged and minority status.

SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

  (a) Local Educational Agency Grants.--For the purpose of 
carrying out part A, other than section 1120(e), there are 
authorized to be appropriated $11,500,000,000 for fiscal year 
2002, $13,000,000,000 for fiscal year 2003, $14,500,000,000 for 
fiscal year 2004, $16,000,000,000 for fiscal year 2005, and 
$17,200,000,000 for fiscal year 2006.
  (b) Student Reading Skills Improvement Grants.--
          (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 4 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 4 succeeding 
        fiscal years.
          (3) Even start.--For the purpose of carrying out 
        subpart 3 of part B, there are authorized to be 
        appropriated $275,000,000 for fiscal year 2002 and such 
        sums as may be necessary for each of the 4 succeeding 
        fiscal years.
          (4) Inexpensive book distribution program.--For the 
        purpose of carrying out subpart 4 of part B, there are 
        authorized to be appropriated such sums as may be 
        necessary for fiscal year 2002 and each of the 4 
        succeeding fiscal years.
  (c) Education of Migratory Children.--For the purpose of 
carrying out part C, there are authorized to be appropriated 
$420,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 4 succeeding fiscal years.
  (d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk of Dropping Out.--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 4 succeeding fiscal years.
  (e) Comprehensive School Reform.--For the purpose of carrying 
out part F, there are authorized to be appropriated 
$260,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 4 succeeding fiscal years.
  (f) Rural Education.--For the purpose of carrying out part G, 
there are authorized to be appropriated $300,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of 4 
succeeding fiscal years to be distributed equally between 
subparts 1 and 2.
  (g) Capital Expenses.--For the purpose of carrying out 
section 1120(e), there are authorized to be appropriated 
$6,000,000 for fiscal year 2002, and such sums as may be 
necessary for fiscal year 2003.
  (h) Federal Activities.--
          (1) Sections 1501 and 1502.--(A) For the purpose of 
        carrying out section 1501, there are authorized to be 
        appropriated $9,000,000 for fiscal year 2002 and such 
        sums as may be necessary for each of the 4 succeeding 
        fiscal years.
          (B) For the purpose of carrying out section 1502, 
        there are authorized to be appropriated such sums as 
        may be necessary for fiscal year 2002 and for each of 
        the 4 succeeding fiscal years.
          (2) Section 1503.--For the purpose of carrying out 
        section 1503, there are authorized to be appropriated 
        such sums as may be necessary for fiscal year 2002 and 
        for each of the 4 succeeding fiscal years.
  (i) State Administration.--
          (1) State reservation.--Each State may reserve, from 
        the sum of the amounts it receives under parts A, C, 
        and D of this title, an amount equal to the greater of 
        1 percent of the amount it received under such parts 
        for fiscal year 2001, or $400,000 ($50,000 for each 
        outlying area), including any funds it receives under 
        paragraph (2), to carry out administrative duties 
        assigned under parts A, C, and D.
          (2) Authorization of appropriations.--There are 
        authorized to be appropriated $10,000,000 for fiscal 
        year 2002 and such sums as may be necessary for each of 
        the 4 succeeding fiscal years for additional State 
        administration grants. Any such additional grants shall 
        be allocated among the States in proportion to the sum 
        of the amounts received by each State for that fiscal 
        year under parts A, C, and D of this title.
          (3) Special rule.--The amount received by each State 
        under paragraphs (1) and (2) may not exceed the amount 
        of State funds expended by the State educational agency 
        to administer elementary and secondary education 
        programs in such State.
  (j) Assistance for Local School Improvement.--
          (1) Program authorized.--The Secretary shall award 
        grants to States to provide subgrants to local 
        educational agencies for the purpose of providing 
        assistance for school improvement consistent with 
        section 1116. Such grants shall be allocated among 
        States, the Bureau of Indian Affairs, and the outlying 
        areas, in proportion to the grants received by the 
        State, the Bureau of Indian Affairs, and the outlying 
        areas for the fiscal year under parts A, C, and D of 
        this title. The Secretary shall expeditiously allocate 
        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 the enactment of the No Child Left Behind 
        Act of 2001.
          (2) Reallocations.--If a State does not apply for 
        funds under this subsection, the Secretary shall 
        reallocate such funds to other States in the same 
        proportion funds are allocated under paragraph (1).
          (3) 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 has submitted such information as part of its 
        State plan under this part. Each State plan shall 
        describe how such funds will be allocated to ensure 
        that the State educational agency and local educational 
        agencies comply with school improvement, corrective 
        action, and restructuring requirements of section 1116.
          (4) 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 to each participating school;
                  (B) integrated with funds awarded by the 
                State under this Act; and
                  (C) renewable for 2 additional 1-year periods 
                if schools are making yearly progress 
                consistent with State and local educational 
                agency plans developed under section 1116.
          (5) Priority.--The State, in awarding such grants, 
        shall give priority to local educational agencies with 
        the lowest achieving schools, that demonstrate the 
        greatest need for such funds, and that demonstrate the 
        strongest commitment to making sure such funds are used 
        to provide adequate resources to enable the lowest 
        achieving schools to meet the yearly progress goals 
        under State and local school improvement, corrective 
        action, and restructuring plans under section 1116.
          (6) Administrative costs.--A State educational agency 
        that receives a grant award under this subsection may 
        reserve not more than 5 percent of such award for 
        administration, evaluation, and technical assistance 
        expenses.
          (7) 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 yearly progress 
        goals under State and local school improvement, 
        corrective action, and restructuring plans under 
        section 1116.
          (8) Authorization of appropriations.--For the purpose 
        of carrying out this subsection, there are authorized 
        to be appropriated $500,000,000 for fiscal year 2002 
        and such sums as may be necessary for each of the 4 
        succeeding fiscal years.

SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

  (a) State Reservations.--Each State shall reserve 1 percent 
of the amount it receives under subpart 2 of part A for fiscal 
years 2002 and 2003, and 3 percent of the amount received under 
such subpart for fiscal years 2004 through 2006, 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 shall allocate at 
least 95 percent of that amount directly to local educational 
agencies for schools identified for school improvement, 
corrective action, and restructuring under section 1116(c) that 
have the greatest need for that assistance in amounts 
sufficient to have a significant impact in improving those 
schools.
  (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) have 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 yearly progress goals 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, it may allocate the 
excess amount to local educational agencies in accordance with 
either or both--
          (1) the relative allocations it 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 under 
subsection (a) in any given fiscal year shall not decrease the 
amount of State funds each local educational agency receives 
below the amount received by such agency under subpart 2 in the 
preceding fiscal year.

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

                 Subpart 1--Basic Program Requirements

SEC. 1111. STATE PLANS.

  (a) Plans Required.--
          (1) In general.--Any State desiring to receive a 
        grant under this part shall submit to the Secretary, by 
        March 1, 2002, a plan, developed 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 (20 U.S.C. 
        1400 et seq.), the Carl D. Perkins Vocational and 
        Technical Education Act of 1998 (20 U.S.C. 2301 et 
        seq.), the Head Start Act (42 U.S.C. 9831 et seq.), and 
        the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11431 et seq.).
          (2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a 
        consolidated plan under section 8302.
  (b) Academic Standards, Academic Assessments, and 
Accountability.--
          (1) Challenging academic standards.--
                  (A) Each State plan shall demonstrate that 
                the State has adopted challenging academic 
                content standards and challenging student 
                academic achievement 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) 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) The State shall have such academic 
                standards for all public elementary 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 
                science (beginning in the 2005-2006 school 
                year), which shall include the same knowledge, 
                skills, and levels of achievement expected of 
                all children.
                  (D) Academic 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 2 levels of 
                                high performance (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 performance (basic) to 
                                provide complete information 
                                about the progress of the lower 
                                performing children toward 
                                achieving to the proficient and 
                                advanced levels of performance.
                  (E) 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) Nothing in this part shall prohibit a 
                State from revising 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 statewide State accountability 
                system that has been or will be effective in 
                ensuring that all local educational agencies, 
                public elementary schools, and public secondary 
                schools make adequate yearly progress as 
                defined under subparagraph (B). Each State 
                accountability system shall--
                          (i) be based on the academic 
                        standards and academic assessments 
                        adopted under paragraphs (1) and (4) 
                        and take into account the performance 
                        of all public school students;
                          (ii) be the same as the 
                        accountability system the State uses 
                        for all public schools or all local 
                        educational agencies in the State, 
                        except that public schools and local 
                        educational agencies not participating 
                        under this part are not subject to the 
                        requirements of section 1116; and
                          (iii) include rewards and sanctions 
                        the State will use to hold local 
                        educational agencies and public schools 
                        accountable for student achievement and 
                        for ensuring that they make adequate 
                        yearly progress in accordance with the 
                        State's definition under subparagraph 
                        (B).
                  (B) Adequate yearly progress.--Each State 
                plan shall demonstrate, based on academic 
                assessments described under paragraph (4), what 
                constitutes adequate yearly progress of the 
                State, and of public schools and local 
                educational agencies in the State, toward 
                enabling all public 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 agency, and school.
                  (C) Definition.--``Adequate yearly progress'' 
                shall be defined by the State in a manner 
                that--
                          (i) applies the same high academic 
                        standards of academic performance to 
                        all public school students in the 
                        State;
                          (ii) measures the progress of public 
                        schools and local educational agencies 
                        based primarily on the academic 
                        assessments described in paragraph (4);
                          (iii) measures the student dropout 
                        rate, as defined for the Common Core of 
                        Data maintained by the National Center 
                        for Education Statistics established 
                        under section 403 of the National 
                        Education Statistics Act of 1994 (20 
                        U.S.C. 9002);
                          (iv) includes separate annual 
                        numerical objectives for continuing and 
                        significant improvement in each of the 
                        following (except that disaggregation 
                        of data under subclauses (II) and (III) 
                        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 individually 
                        identifiable information about an 
                        individual student):
                          (I) The achievement of all public 
                        school students.
                          (II) The achievement of--
                                          (aa) economically 
                                        disadvantaged students;
                                          (bb) students from 
                                        major racial and ethnic 
                                        groups;
                                          (cc) students with 
                                        disabilities; and
                                          (dd) students with 
                                        limited English 
                                        proficiency;
                          (III) solely for the purpose of 
                        determining adequate yearly progress of 
                        the State, the acquisition of English 
                        language proficiency by children with 
                        limited English proficiency;
                          (v) at the State's discretion, may 
                        also include other academic measures 
                        such as promotion, completion of 
                        college preparatory courses, and high 
                        school completion (and for individual 
                        local educational agencies and schools, 
                        the acquisition of English language 
                        proficiency by children with limited 
                        English proficiency), except that 
                        inclusion of such other measures may 
                        not change which schools or local 
                        educational agencies would otherwise be 
                        subject to improvement or corrective 
                        action under section 1116 if the 
                        discretionary indicators were not 
                        included; and
                          (vi) includes a timeline that--
                                  (I) uses as a baseline year 
                                the year following the date of 
                                enactment of the No Child Left 
                                Behind Act of 2001;
                                  (II) establishes a target 
                                year by which all members of 
                                each group of students 
                                described in subclauses (I) and 
                                (II) of clause (iii) shall meet 
                                or exceed the State's 
                                proficient level of academic 
                                performance on the State 
                                academic assessment used for 
                                the purposes of this section 
                                and section 1116, except that 
                                the target year shall not be 
                                more than 12 years from the 
                                baseline year; and
                                  (III) for each year until and 
                                including the target year, 
                                establishes annual goals for 
                                the academic performance of 
                                each group of students 
                                described in subclauses (I) and 
                                (II) of clause (iii) on the 
                                State academic assessment 
                                that--
                                          (aa) indicates a 
                                        minimum percentage of 
                                        students who must meet 
                                        the proficient level on 
                                        the academic 
                                        assessment, such that 
                                        the minimum percentage 
                                        is the same for each 
                                        group of students 
                                        described in subclauses 
                                        (I) and (II) of clause 
                                        (iii); or
                                          (bb) indicates an 
                                        annual minimum amount 
                                        by which the percentage 
                                        of students who meet 
                                        the proficient level 
                                        among each group of 
                                        students described in 
                                        subclauses (I) and (II) 
                                        of clause (iii) shall 
                                        increase, such that the 
                                        minimum increase for 
                                        each group is equal to 
                                        or greater than 100 
                                        percent minus the 
                                        percentage of the group 
                                        meeting the proficient 
                                        level in the baseline 
                                        year divided by the 
                                        number of years from 
                                        the baseline year to 
                                        the target year 
                                        established under 
                                        clause (I).
                  (D) Annual improvement for schools.--For a 
                school to make adequate yearly progress under 
                subparagraph (A), not less than 95 percent of 
                each group of students described in 
                subparagraph (C)(iii)(II) who are enrolled in 
                the school are required to take the academic 
                assessments, consistent with section 
                612(a)(17)(A) of the Individuals with 
                Disabilities Education Act (20 U.S.C. 
                1412(a)(17)(A)) and paragraph (4)(G)(ii), on 
                which adequate yearly progress is based.
                  (E) Public notice and comment.--Each State 
                shall ensure that in developing its plan, it 
                diligently seeks public comment from a range of 
                institutions and individuals in the State with 
                an interest in improved student achievement and 
                that the State makes and will continue to make 
                a substantial effort to ensure that information 
                under this part is widely known and understood 
                by the public, parents, teachers, and school 
                administrators throughout the State. Such 
                efforts shall include, at a minimum, 
                publication of such information and explanatory 
                text, broadly to the public through such means 
                as the Internet, the media, and public 
                agencies.
          (3) 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 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, 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 which receives grants under this part 
                will adopt curriculum content and student 
                academic achievement standards, and academic 
                assessments aligned with such standards, which 
                meet all of the criteria in this subsection and 
                any regulations regarding such standards and 
                assessments which the Secretary may publish, 
                and which are applicable to all students served 
                by each such local educational agency.
          (4) Academic Assessments.--Each State plan shall 
        demonstrate that the State has implemented a set of 
        high-quality, yearly student academic assessments that 
        include, at a minimum, academic assessments in 
        mathematics, and reading or language arts, 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 enabling all children to meet the 
        State's challenging student academic achievement 
        standards. Such assessments shall--
                  (A) be the same academic assessments used to 
                measure the performance of all children;
                  (B) be aligned with the State's challenging 
                content and student academic achievement 
                standards and provide coherent information 
                about student attainment of such standards;
                  (C) be used for purposes for which such 
                assessments are valid and reliable, and be 
                consistent with relevant, recognized 
                professional and technical standards for such 
                assessments;
                  (D) for the purposes of this part, be scored 
                to ensure the performance of each student is 
                evaluated solely against the State's 
                challenging academic content standards and not 
                relative to the score of other students;
                  (E) except as otherwise provided for grades 3 
                through 8 under subparagraph (G), measure the 
                proficiency of students in, at a minimum, 
                mathematics and reading or language arts, and 
                be administered not less than once during--
                          (i) grades 3 through 5;
                          (ii) grades 6 through 9; and
                          (iii) grades 10 through 12;
                  (F) involve multiple up-to-date measures of 
                student achievement, including measures that 
                assess critical thinking skills and 
                understanding;
                  (G) beginning not later than school year 
                2004-2005, measure the performance of students 
                against the challenging State 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 it will complete 
                implementation within the additional 1-year 
                period;
                  (H) provide for--
                          (i) the participation in such 
                        assessments of all students;
                          (ii) the reasonable adaptations and 
                        accommodations for students with 
                        disabilities defined under 602(3) of 
                        the Individuals with Disabilities 
                        Education Act (20 U.S.C. 1401(3)) 
                        necessary to measure the achievement of 
                        such students relative to State content 
                        and State student academic achievement 
                        standards;
                          (iii) the inclusion of limited 
                        English proficient students who shall 
                        be assessed, to the extent practicable, 
                        in the language and form most likely to 
                        yield accurate and reliable information 
                        on what such students know and can do 
                        in content areas;
                          (iv) notwithstanding clause (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 3 or 
                        more consecutive school years, except 
                        if the local educational agency 
                        determines, on a case-by-case 
                        individual basis, that academic 
                        assessments in another language and 
                        form would likely yield more accurate 
                        and reliable information on what such 
                        students know and can do, the local 
                        educational agency may assess such 
                        students in the appropriate language 
                        other than English for 1 additional 
                        year;
                  (I) 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;
                  (J) produce individual student reports to be 
                provided to parents, which include academic 
                assessment scores, or other information on the 
                attainment of student academic achievement 
                standards; and
                  (K) enable results to be disaggregated within 
                each State, local educational agency, and 
                school by gender, by each major racial and 
                ethnic group, by 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.
          (5) Special rule.--Academic assessment measures in 
        addition to those in paragraph (4) that do not meet the 
        requirements of such paragraph may be included as 
        additional measures, but may not be used in lieu of the 
        academic assessments required in paragraph (4). Results 
        on any additional measures under this paragraph shall 
        not change which schools or local educational agencies 
        would otherwise be subject to improvement or corrective 
        action under section 1116 if the additional measures 
        were not included.
          (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.--Each State plan shall demonstrate that 
        local educational agencies in the State will, beginning 
        no later than school year 2002-2003, annually assess 
        the English proficiency of all students with limited 
        English proficiency in their schools.
          (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(c), 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 standards.
                  (C) such other factors as the State considers 
                appropriate to provide students an opportunity 
                to achieve the knowledge and skills described 
                in the challenging academic content standards 
                adopted by the State.
          (9) Use of academic assessment results to improve 
        student achievement.--Each State plan shall describe 
        how the State will ensure that the results of the State 
        assessments described in paragraph (4)--
                  (A) will be provided promptly, but not later 
                than the end of the school year (consistent 
                with section 1116, to local educational 
                agencies, schools, and teachers in a manner 
                that is clear and easy to understand; and
                  (B) be used by those local educational 
                agencies, schools, and teachers to improve the 
                educational achievement of individual students.
          (10) Technical assistance on academic assessment 
        requirements.--The Secretary shall provide technical 
        assistance to interested States regarding how to meet 
        the requirements of paragraph (4).
  (c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
          (1) the State shall produce, beginning with the 2003-
        2004 school year, the annual State report cards 
        described in subsection (h)(1);
          (2) the State will participate, beginning in school 
        year 2002-2003, in annual academic assessments of 4th 
        and 8th grade reading and mathematics under--
                  (A) the State National Assessment of 
                Educational Progress carried out under section 
                411(b)(2) of the National Education Statistics 
                Act of 1994 (20 U.S.C. 9010(b)(2)); or
                  (B) another academic assessment selected by 
                the State which meets the criteria of section 
                7101(b)(1)(B)(ii) of this Act;
          (3) the State educational agency shall work with 
        other agencies, including educational service agencies 
        or other local consortia, and institutions to provide 
        technical assistance to local educational agencies and 
        schools to carry out the State educational agency's 
        responsibilities under this part, including technical 
        assistance in providing professional development under 
        section 1119A and technical assistance under section 
        1117; and
          (4)(A) where educational service agencies exist, the 
        State educational agency shall consider providing 
        professional development and technical assistance 
        through such agencies; and
          (B) where educational service agencies do not exist, 
        the State educational agency shall consider providing 
        professional development and technical assistance 
        through other cooperative agreements such as through a 
        consortium of local educational agencies;
          (5) the State educational agency shall 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;
          (6) the State educational agency shall provide the 
        least restrictive and burdensome regulations for local 
        educational agencies and individual schools 
        participating in a program assisted under this part;
          (7) the State educational agency shall 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 performance;
          (8) 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;
          (9) the State educational agency shall 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;
          (10) the State educational agency has involved the 
        committee of practitioners established under section 
        1603(b) in developing the plan and monitoring its 
        implementation;
          (11) the State educational agency shall inform local 
        educational agencies of the local educational agency's 
        authority to transfer funds under title VII, to obtain 
        waivers under title VIII and, if the State is an Ed-
        Flex Partnership State, to obtain waivers under the 
        Education Flexibility Partnership Act of 1999 (20 
        U.S.C. 5891a et seq.); and
          (12) the State educational agency shall 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 
        high school diploma or its recognized equivalent or who 
        have low levels of literacy.
  (d) Peer Review and Secretarial Approval.--The Secretary 
shall--
          (1) establish a peer review process to assist in the 
        review of State plans;
          (2) 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;
          (3) 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;
          (4) not decline to approve a State's plan before--
                  (A) offering the State an opportunity to 
                revise its plan;
                  (B) providing technical assistance in order 
                to assist the State to meet the requirements 
                under subsections (a), (b), and (c); and
                  (C) providing a hearing; and
          (5) 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 1 or more specific elements 
        of the State's academic content standards or to use 
        specific academic assessment instruments or items.
  (e) Duration of the Plan.--
          (1) In general.--Each State plan shall--
                  (A) be submitted for the first year for which 
                this part is in effect after the date of the 
                enactment of the No Child Left Behind Act of 
                2001;
                  (B) remain in effect for the duration of the 
                State's participation under this part; and
                  (C) be periodically reviewed and revised by 
                the State, as necessary, to reflect changes in 
                the State's strategies and programs under this 
                part.
          (2) Additional information.--If the State makes 
        significant changes in its plan, such as the adoption 
        of new or revised State academic content standards and 
        State student achievement standards, new academic 
        assessments, or a new definition of adequate yearly 
        progress, the State shall submit such information to 
        the Secretary.
  (f) Limitation on Conditions.--Officers and employees of the 
Federal Government are prohibited from mandating, directing, or 
controlling a State, local educational agency, or school's 
specific instructional content or student academic achievement 
standards and academic assessments, curriculum, or program of 
instruction, as a condition of eligibility to receive funds 
under this part.
  (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 it 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 for State administration and 
                activities in each year until the Secretary 
                determines that the State meets those 
                requirements;
                  (B) No extension.--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), the Secretary may withhold funds for 
        State administration until the Secretary determines 
        that the State has fulfilled those requirements.
  (h) Reports.--
          (1) Annual state report card.--
                  (A) In general.--Not later than the beginning 
                of the 2003-2004 school year, a State that 
                receives assistance under this Act shall 
                prepare and disseminate an annual State report 
                card.
                  (B) Implementation.--The State report card 
                shall be--
                          (i) concise; and
                          (ii) presented in a format and manner 
                        that parents can understand, and which, 
                        to the extent practicable, shall be in 
                        a language the parents can understand.
                  (C) Public dissemination.--The State shall 
                widely disseminate the information described in 
                subparagraph (D) to all schools and local 
                educational agencies in the State and make the 
                information broadly available through public 
                means, such as posting on the Internet, 
                distribution to the media, and distribution 
                through public agencies.
                  (D) 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)(4)(F) 
                        (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 the number 
                        of students in a category is 
                        insufficient to yield statistically 
                        reliable information or the results 
                        would reveal individually identifiable 
                        information about an individual 
                        student);
                          (ii) the percentage of students not 
                        tested (disaggregated by the same 
                        categories and subject to the same 
                        exception described in clause (i));
                          (iii) the percentage of students who 
                        graduate from high school within 4 
                        years of starting high school;
                          (iv) the percentage of students who 
                        take and complete advanced placement 
                        courses as compared to the population 
                        of the students eligible to take such 
                        courses, and the rate of passing of 
                        advanced placement tests;
                          (v) the professional qualifications 
                        of teachers in the aggregate, including 
                        the percentage of teachers teaching 
                        with emergency or provisional 
                        qualifications, and the percentage of 
                        class sections not taught by fully 
                        qualified teachers; and
                          (vi) such other information (such as 
                        dropout and school attendance rates; 
                        and average class size by grade level) 
                        as the State believes will best provide 
                        parents, students, and other members of 
                        the public with information on the 
                        progress of each of the State's public 
                        schools.
          (2) Content of local educational agency report 
        cards.--
                  (A) Minimum requirements.--The State shall 
                ensure that each local educational agency 
                collects appropriate data and includes in its 
                annual report for each of its schools, at a 
                minimum--
                          (i) the information described in 
                        paragraph (1)(D) for each local 
                        educational agency and school; and
                          (ii)(I) in the case of a local 
                        educational agency--
                                  (aa) the number and 
                                percentage of schools 
                                identified for school 
                                improvement and how long they 
                                have been so identified, 
                                including schools identified 
                                under section 1116(c) of this 
                                Act; and
                                  (bb) information that shows 
                                how students in its schools 
                                perform on the statewide 
                                academic assessment compared to 
                                students in the State as a 
                                whole; and
                          (II) in the case of a school--
                                  (aa) whether it has been 
                                identified for school 
                                improvement; and
                                  (bb) information that shows 
                                how its students performed on 
                                the statewide academic 
                                assessment compared to students 
                                in the local educational agency 
                                and the State as a whole.
                  (B) Other information.--A local educational 
                agency may include in its annual reports any 
                other appropriate information whether or not 
                such information is included in the annual 
                State report.
                  (C) Public dissemination.--The local 
                educational agency shall, not later than the 
                beginning of the 2003-2004 school year, 
                publicly disseminate the information described 
                in this paragraph to all schools in the 
                district and to all parents of students 
                attending those schools (to the extent 
                practicable, in a language they can 
                understand), and make the information broadly 
                available through public means, such as posting 
                on the Internet, distribution to the media, and 
                distribution through public agencies.
          (3) Pre-existing report cards.--A State 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 reports for the purpose of this subsection, 
        so long as any such report is modified, as may be 
        needed, to contain the information required by this 
        subsection.
          (4) Annual state report to the secretary.--Each State 
        receiving assistance under this Act shall report 
        annually to the Secretary, and make widely available 
        within the State--
                  (A) beginning with school year 2001-2002, 
                information on the State's progress in 
                developing and implementing the academic 
                assessment system described in subsection 
                (b)(4);
                  (B) beginning not later than school year 
                2004-2005, information on the achievement of 
                students on the academic assessments required 
                by that subsection, including the disaggregated 
                results for the categories of students 
                identified in subsection (b)(2)(C)(iii)(II);
                  (C) beginning not later than school year 
                2002-2003, information on the acquisition of 
                English proficiency by children with limited 
                English proficiency; and
                  (D) 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.
          (5) Parents right-to-know.--
                  (A) 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 they may 
                request, and shall provide the parents upon 
                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 which parents may request under 
                subparagraph (A), a school which receives funds 
                under this part shall provide to each 
                individual parent--
                          (i) information on the level of 
                        performance of the individual student 
                        for whom they are the parent in each of 
                        the State academic assessments as 
                        required under this part; and
                          (ii) timely notice that the student 
                        for whom they are the parent has been 
                        assigned, or has been taught for 4 or 
                        more consecutive weeks by, a teacher 
                        who is not fully 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.
          (6) Plan content.--A State shall include in its plan 
        under subsection (b) an assurance that it has in effect 
        a policy that meets the requirements of this section.
  (i) Privacy.--Information collected under this section shall 
be collected and disseminated in a manner that protects the 
privacy of individuals.

SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

  (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 (20 U.S.C. 1400 et seq.), 
        the Carl D. Perkins Vocational and Technical Education 
        Act of 1998 (20 U.S.C. 2301 et seq.), the Head Start 
        Act (42 U.S.C. 9831 et seq.), 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 8305.
  (b) Plan Provisions.--In order to help low achieving children 
achieve high academic standards, each local educational agency 
plan shall include--
          (1) a description of additional high-quality student 
        academic assessments, if any, other than the academic 
        assessments described in the State plan under section 
        1111, that the local educational agency and schools 
        served under this part will use to--
                  (A) determine the success of children served 
                under this part in meeting the State's student 
                academic achievement standards and provide 
                information to teachers, parents, and students 
                on the progress being made toward meeting the 
                State student academic achievement standards 
                described in section 1111(b)(1)(D)(ii);
                  (B) assist in diagnosis, teaching, and 
                learning in the classroom in ways that best 
                enable low-achieving children served under this 
                title to meet State academic standards and do 
                well in the local curriculum; and
                  (C) determine what revisions are needed to 
                projects under this title so that such children 
                meet the State's student academic achievement 
                standards;
          (2) at the local educational agency's discretion, a 
        description of any other indicators that will be used 
        in addition to the academic assessments described in 
        paragraph (1) for the uses described in such paragraph, 
        except that results on any discretionary indicators 
        shall not change which schools would otherwise be 
        subject to improvement of corrective action under 
        section 1118 if the additional measures are not 
        included;
          (3) a description of how the local educational agency 
        will provide additional educational assistance to 
        individual students assessed as needing help to achieve 
        the State's challenging academic standards;
          (4) a description of the strategy the local 
        educational agency will use to provide professional 
        development for teachers, and, if appropriate, pupil 
        services personnel, administrators, parents and other 
        staff, including local educational agency level staff 
        in accordance with section 1119A;
          (5) 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--
                  (A) 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
                  (B) services for children with limited 
                English proficiency or with disabilities, 
                migratory children served under part C, 
                neglected or delinquent youth, Indian children 
                served under part B of title III, homeless 
                children, and immigrant children in order to 
                increase program effectiveness, eliminate 
                duplication, and reduce fragmentation of the 
                instructional program;
          (6) 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 Education Statistics Act of 1994 (20 
        U.S.C. 9010(b)(2)), or in another academic assessment 
        pursuant to the State decision under section 
        7101(b)(1)(B)(ii);
          (7) a description of the poverty criteria that will 
        be used to select school attendance areas under section 
        1113;
          (8) a description of how teachers, in consultation 
        with parents, administrators, and pupil services 
        personnel, in targeted assistance schools under section 
        1115, will identify the eligible children most in need 
        of services under this part;
          (9) 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, for neglected and delinquent 
        children in community day school programs, and for 
        homeless children;
          (10) 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;
          (11) 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 (42 
        U.S.C. 9836), agencies operating Even Start programs, 
        Early Reading First, or another comparable public early 
        childhood development program;
          (12) a description of the actions the local 
        educational agency will take to assist its low-
        performing schools, including schools identified under 
        section 1116 as in need of improvement;
          (13) a description of the actions the local 
        educational agency will take to implement public school 
        choice, consistent with the requirements of section 
        1116;
          (14) a description how the local educational agency 
        will meet the requirements of section 1119(b)(1); and
          (15) a description of the services the local 
        educational agency will provide homeless children, 
        including services provided with funds reserved under 
        section 1113(f)(3)(A).
  (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 corrective actions under paragraphs (6) 
                and (7) of section 1116(b);
                  (E) provide services to eligible children 
                attending private elementary 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 academic achievement standards 
                established under section 641A(a) of the Head 
                Start Act (42 U.S.C. 9836a(a));
                  (H) comply with the requirements of section 
                1119 regarding the qualifications of teachers 
                and paraprofessionals;
                  (I) inform eligible schools of the local 
                educational agency's authority to obtain 
                waivers on the school's behalf under title VIII 
                of this Act, and if the State is an Ed-Flex 
                Partnership State, to obtain waivers under the 
                Education Flexibility Partnership Act of 1999; 
                and
                  (J) coordinate and collaborate, to the extent 
                feasible and necessary as determined by the 
                local educational agency, with other agencies 
                providing services to children, youth, and 
                families.
          (2) Special rule.--In carrying out subparagraph (G) 
        of paragraph (1), the Secretary--
                  (A) shall consult with the Secretary of 
                Health and Human Services on the implementation 
                of such subparagraph 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 academic achievement 
                standards as in effect under section 641A(a) of 
                the Head Start Act (42 U.S.C. 9836a(a)), 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.--The provisions of this 
        subsection shall not apply to preschool programs using 
        the Even Start model or to Even Start programs which 
        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 the enactment of the No Child 
        Left Behind Act of 2001 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.
  (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 and Consent for English Language 
Instruction.--
          (1) Notification.--If a local educational agency uses 
        funds under this part to provide English language 
        instruction to limited English proficient children, the 
        agency shall inform a parent or the parents of a child 
        participating in an English language instruction 
        program for limited English proficient children 
        assisted under this part of--
                  (A) the reasons for the identification of the 
                child as being in need of English language 
                instruction;
                  (B) the child's level of English proficiency, 
                how such level was assessed, and the status of 
                the child's academic achievement;
                  (C) how the English language instruction 
                program will specifically help the child 
                acquire English and meet age-appropriate 
                academic standards for grade promotion and 
                graduation;
                  (D) what the specific exit requirements are 
                for the program;
                  (E) the expected rate of transition from the 
                program into a classroom that is not tailored 
                for limited English proficient children; and
                  (F) the expected rate of graduation from high 
                school for students in the program if funds 
                under this part are used for children in 
                secondary schools.
          (2) Consent.--
                  (A) Agency requirements.--
                          (i) Informed consent.--For a child 
                        who has been identified as limited 
                        English proficient prior to the 
                        beginning of a school year, each local 
                        educational agency that receives funds 
                        under this part shall make a reasonable 
                        and substantial effort to obtain 
                        informed parental consent prior to the 
                        placement of a child in an English 
                        language instruction program for 
                        limited English proficient children 
                        funded under this part if the program 
                        does not include classes which 
                        exclusively or almost exclusively use 
                        the English language in instruction.
                          (ii) Written consent not obtained.--
                        If written consent is not obtained, the 
                        local educational agency shall maintain 
                        a written record that includes the date 
                        and the manner in which such informed 
                        consent was sought, including the 
                        specific efforts made to obtain such 
                        consent.
                          (iii) Proof of effort.--Notice, in an 
                        understandable form, of specific 
                        efforts made to obtain written consent 
                        and a copy of the written record 
                        required in clause (ii) shall be mailed 
                        or delivered in writing to a parent, 
                        parents, or guardian of a child prior 
                        to placing the child in a program 
                        described in clause (i) and shall 
                        include a final request for parental 
                        consent for such services. After such 
                        notice has been mailed or delivered in 
                        writing, the local educational agency 
                        shall provide appropriate educational 
                        services.
                          (iv) Special rule applicable during 
                        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 make a 
                        reasonable and substantial effort to 
                        obtain parental consent under this 
                        clause. For such children, the agency 
                        shall document, in writing, its 
                        specific efforts made to obtain such 
                        consent prior to placing the child in a 
                        program described in clause (i). After 
                        such documentation has been made, the 
                        local educational agency shall provide 
                        appropriate educational services to 
                        such child. The proof of documentation 
                        shall be mailed or delivered in writing 
                        to a parent or parents of the child in 
                        a timely manner and shall include 
                        information on how to have their child 
                        immediately removed from the program 
                        upon their request. Nothing in this 
                        clause shall be construed as exempting 
                        a local educational agency from 
                        complying with the notification 
                        requirements of subsection (g)(1) and 
                        the consent requirements of this 
                        paragraph.
          (3) Parental rights.--A parent or the parents of a 
        child participating in an English language instruction 
        program for limited English proficient children 
        assisted under this part shall--
                  (A) select among methods of instruction, if 
                more than one method is offered in the program; 
                and
                  (B) have the right to have their child 
                immediately removed from the program upon their 
                request.
          (4) Receipt of information.--A parent or the parents 
        of a limited English proficient child who is identified 
        for participation in an English language instruction 
        program for limited English proficient children 
        assisted under this part shall receive, in a manner and 
        form understandable to the parent or parents, the 
        information required by this subsection. At a minimum, 
        the parent or parents shall receive--
                  (A) timely information about English language 
                instruction programs for limited English 
                proficient children assisted under this part;
                  (B) if a parent or parents of a participating 
                child so desires, notice of opportunities for 
                regular meetings for the purpose of formulating 
                and responding to recommendations from the 
                parent or parents; and
                  (C) procedural information for removing a 
                child from a program for limited English 
                proficient children.
          (5) Basis for admission or exclusion.--Students shall 
        not be admitted to, or excluded from, any federally-
        assisted education program on the basis of a surname or 
        language-minority status.

SEC. 1113. 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 in the 
                local educational agency as a whole.
          (3) Local educational agency discretion.--
                  (A) In general.--Notwithstanding paragraph 
                (2), a local educational agency may--
                          (i) designate as eligible any school 
                        attendance area or school in which at 
                        least 35 percent of the children are 
                        from low-income families;
                          (ii) 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;
                          (iii) designate and serve a school 
                        attendance area or school that is not 
                        eligible under subsection (b), but that 
                        was eligible and that was served in the 
                        preceding fiscal year, but only for 1 
                        additional fiscal year; and
                          (iv) 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.
                  (B) Special rule.--Notwithstanding 
                subparagraph (A)(iv), the number of children 
                attending private elementary 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).
  (b) Ranking Order.--If funds allocated in accordance with 
subsection (f) are insufficient to serve all eligible school 
attendance areas, a local educational agency--
          (1) shall annually rank from highest to lowest 
        according to the percentage of children from low-income 
        families in each agency's eligible school attendance 
        areas in the following order--
                  (A) eligible school attendance areas in which 
                the concentration of children from low-income 
                families exceeds 75 percent; and
                  (B) all remaining eligible school attendance 
                areas in which the concentration of children 
                from low-income families is 75 percent or lower 
                either by grade span or for the entire local 
                educational agency;
          (2) shall, within each category listed in paragraph 
        (1), serve schools in rank order from highest to lowest 
        according to the ranking assigned under paragraph (1);
          (3) notwithstanding paragraph (2), may give priority, 
        within each such category and in rank order from 
        highest to lowest subject to paragraph (4), to eligible 
        school attendance areas that serve children in 
        elementary schools; and
          (4) not serve a school described in paragraph (1)(B) 
        before serving a school described in paragraph (1)(A).
  (c) Low-Income Measures.--In determining the number of 
children ages 5 through 17 who are from low-income families, 
the local educational agency shall apply the measures described 
in paragraphs (1) and (2) of this subsection:
          (1) Allocation to public school attendance areas.--
        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 (42 U.S.C. 1751 et seq.), 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 
                (f).
          (2) Allocation for equitable service to private 
        school students.--
                  (A) Calculation.--A local educational agency 
                shall have the final authority, consistent with 
                section 1120 to calculate the number of private 
                school children, ages 5 through 17, who are 
                low-income by--
                          (i) using the same measure of low-
                        income used to count public school 
                        children;
                          (ii) 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 not available; 
                        or
                          (iii) 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 attendance area.
                  (B) Complaint process.--Any dispute regarding 
                low-income data on private school students 
                shall be subject to the complaint process 
                authorized in section 8505.
  (d) Exception.--This section (other than subsections (a)(3) 
and (f)) shall not apply to a local educational agency with a 
total enrollment of less than 1,500 children.
  (e) 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 (f), and 
permit such agency to treat as eligible, and serve, any school 
that children attend under a desegregation plan ordered by a 
State or court or approved by the Secretary, or such a plan 
that the agency continues to implement after it has expired, 
if--
          (1) the number of economically disadvantaged children 
        enrolled in the school is not less than 25 percent of 
        the school's total enrollment; and
          (2) 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.
  (f) 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 subsection (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) 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) 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) School improvement reservation.--In addition to 
        the funding a local educational agency receives under 
        section 1003(b), a local educational agency may reserve 
        such funds as are necessary under this part to meet 
        such agency's school improvement responsibilities under 
        section 1116, including taking corrective actions under 
        paragraphs (6) and (7) of section 1116(b).
          (5) Financial incentives and rewards reservation.--A 
        local educational agency may reserve such funds as are 
        necessary under this part to provide financial 
        incentives and rewards to teachers who serve in schools 
        eligible under subsection (b)(1)(A) and identified for 
        improvement under section 1116(b)(1) for the purpose of 
        attracting and retaining qualified and effective 
        teachers.

SEC. 1114. SCHOOLWIDE PROGRAMS.

  (a) Purpose.--The purpose of a schoolwide program under this 
section is--
          (1) to enable a local educational agency to 
        consolidate funds under this part with other Federal, 
        State, and local funds, to upgrade the entire 
        educational program in a high poverty school; and
          (2) to help ensure that all children in such a school 
        meet challenging State academic standards for student 
        achievement, particularly those children who are most 
        at-risk of not meeting those standards.
  (b) Use of Funds for Schoolwide Programs.--
          (1) In general.--A local educational agency may 
        consolidate 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 to 
                identify particular children under this part as 
                eligible to participate in a schoolwide program 
                or to provide supplemental services to such 
                children.
                  (B) Supplement 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 (c), 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, uses of Federal funds to 
                supplement, not supplant non-Federal funds, or 
                the distribution of funds to State or local 
                educational agencies that apply to the receipt 
                of funds from such programs.
                  (C) Records.--A school that consolidates 
                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 it 
                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 (c)(1)(D) in 
        accordance with section 1119A for such fiscal year, 
        except that a school may enter into a consortium with 
        another school to carry out such activities.
  (c) 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 performance of children in 
                relation to the State academic content 
                standards and 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 
                        achievement described in section 
                        1111(b)(1)(D);
                          (ii) use effective methods and 
                        instructional strategies that are based 
                        upon 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) 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; 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 fully qualified (as 
                defined in section 8101) teachers.
                  (D) In accordance with section 1119A and 
                subsection (b)(4), high quality and ongoing 
                professional development for teachers and 
                paraprofessionals, and, where appropriate, 
                pupil services personnel, parents, principals, 
                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 
                teachers to high need schools, such as 
                differential pay systems or performance based 
                pay.
                  (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.
                  (H) Measures to include teachers in the 
                decisions regarding the use of academic 
                assessments described in section 1111(b)(4) in 
                order to provide information on, and to 
                improve, the performance 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) 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.
          (2) Plan.--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 effective date of the No Child 
        Left Behind Act of 2001), a comprehensive plan for 
        reforming the total instructional program in the school 
        that--
                  (A) incorporates the components described in 
                paragraph (1);
                  (B) describes how the school will use 
                resources under this part and from other 
                sources to implement those components; and
                  (C) includes a list of State and local 
                educational agency programs and other Federal 
                programs under subsection (b)(3) that will be 
                consolidated in the schoolwide program.
          (3) Plan development.--The comprehensive plan shall 
        be--
                  (A) developed during a 1-year period, 
                unless--
                          (i) the local educational agency 
                        determines that less time is needed to 
                        develop and implement the schoolwide 
                        program; or
                          (ii) the school operated a schoolwide 
                        program on the day preceding the 
                        effective date 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 after that date to 
                        reflect the provisions of this section;
                  (B) 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;
                  (C) in effect for the duration of the 
                school's participation under this part and 
                reviewed and revised, as necessary, by the 
                school;
                  (D) available to the local educational 
                agency, parents, and the public, and the 
                information contained in such plan shall be 
                provided in a format, and to the extent 
                practicable, in a language that they can 
                understand; and
                  (E) 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.
  (d) Accountability.--A schoolwide program under this section 
shall be subject to the school improvement provisions of 
section 1116.
  (e) Prekindergarten Program.--A school that is eligible for a 
schoolwide program under this section may use funds made 
available under this title to establish or enhance 
prekindergarten programs for 3-, 4-, and 5-year-old children, 
such as Even Start programs or Early Reading First programs.

SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

  (a) In General.--In all schools selected to receive funds 
under section 1113(f) that are ineligible for a schoolwide 
program under section 1114, or that choose not to operate such 
a schoolwide program, a local educational agency 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) 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) 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 academic assessments under 
        this part, and, as appropriate, 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 may be selected solely on the 
        basis of such criteria as teacher judgment, interviews 
        with parents, and other appropriate measures.
          (2) Children included.--(A)(i) Children with 
        disabilities, migrant children, and children with 
        limited English proficiency are eligible for services 
        under this part on the same basis as other children.
          (ii) Funds received under this part may not be used 
        to provide services that are otherwise required by law 
        to be made available to such children but may be used 
        to coordinate or supplement such services.
          (B) 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)(i) 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.
          (ii) A child in a local institution for neglected or 
        delinquent children or attending a community day 
        program for such children is eligible for services 
        under this part.
          (D) A child who is homeless and attending any school 
        in the local educational agency is eligible for 
        services under this part.
  (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 title 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 upon 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 such as Head 
                Start, Even Start, Early Reading First or 
                State-run preschool programs to elementary 
                school programs;
                  (E) provide instruction by fully qualified 
                teachers as defined in section 8101;
                  (F) in accordance with subsection (e)(3) and 
                section 1119A, provide opportunities for 
                professional development with resources 
                provided under this part, and, to the extent 
                practicable, from other sources, for teachers, 
                principals, and administrators and other school 
                staff, including, if appropriate, pupil 
                services personnel, who work with participating 
                children in programs under this section or in 
                the regular education program; and
                  (G) provide strategies to increase parental 
                involvement in accordance with section 1118, 
                such as family literacy services.
          (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 coordination 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 that require 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, 
public school personnel who are paid with funds received under 
this part may participate in general professional development 
and school planning activities.
  (e) Special Rules.--
          (1) Simultaneous service.--Nothing in this section 
        shall be construed to prohibit a school from serving 
        students served under this section simultaneously with 
        students with similar educational needs, in the same 
        educational settings where appropriate.
          (2) Comprehensive services.--If medical, 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 if 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--
                  (A) the provision of basic medical equipment, 
                such as eyeglasses and hearing aids; and
                  (B) 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 1119A for such fiscal year, except that a 
        school may enter into a consortium with another school 
        to carry out such activities.

SEC. 1115A. SCHOOL CHOICE.

  (a) Choice Programs.--A local educational agency may use 
funds under this part, in combination with State, local, and 
private funds, to develop and implement public school choice 
programs, for children eligible for assistance under this part, 
which permit parents to select the public school that their 
child will attend.
  (b) Choice Plan.--A local educational agency that chooses to 
implement a public school choice program shall first develop a 
plan that includes a description of how the local educational 
agency will use resources under this part and from other 
resources to implement the plan, and assurances that--
          (1) all eligible students across grade levels served 
        under this part will have equal access to the program;
          (2) the plan will be developed with the involvement 
        of parents and others in the community to be served and 
        individuals who will carry out the plan, including 
        administrators, teachers, principals, and other staff;
          (3) parents of eligible students in the local 
        educational agency will be given prompt notice of the 
        existence of the public school choice program and its 
        availability to them, and a clear explanation of how 
        the program will operate;
          (4) the program will include charter schools and any 
        other public school and shall not include a school that 
        is or has been identified as a school in school 
        improvement or is or has been in corrective action for 
        the past 2 consecutive years; and
          (5) such local educational agency will comply with 
        the other requirements of this part.
  (c) Transportation.--Transportation services or the costs of 
transportation may be provided by the local educational agency, 
except that such agency may not use more than a total of 15 
percent of its allocation under this part for such purposes.

[SEC. 1116. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
                    IMPROVEMENT.

  [(a) Local Review.--Each local educational agency receiving 
funds under this part shall--
          [(1) use the State assessments described in the State 
        plan;
          [(2) use any additional measures or indicators 
        described in the local educational agency's plan to 
        review annually the progress of each school served 
        under this part to determine whether the school is 
        meeting, or making adequate progress as defined in 
        section 1111(b)(2)(A)(i) toward enabling its students 
        to meet the State's student performance standards 
        described in the State plan;
          [(3) publicize and disseminate to teachers and other 
        staff, parents, students, and the community, the 
        results of the annual review under paragraph (2) of all 
        schools served under this part in individual school 
        performance profiles that include statistically sound 
        disaggregated results as required by section 
        1111(b)(3)(I); and
          [(4) provide the results of the local annual review 
        to schools so that the schools can continually refine 
        the program of instruction to help all children served 
        under this part in those schools meet the State's 
        student performance standards.
  [(b) Designation of Distinguished Schools.--Each State 
educational agency and local educational agency receiving funds 
under this part shall designate distinguished schools in 
accordance with section 1117.
  [(c) School Improvement.--
          [(1) In general.--A local educational agency shall 
        identify for school improvement any school served under 
        this part that--
                  [(A) has been in program improvement under 
                section 1020 of the Elementary and Secondary 
                Education Act of 1965 (as such section was in 
                effect on the day preceding the date of 
                enactment of the Improving America's Schools 
                Act of 1994), for at least two consecutive 
                school years prior to such day;
                  [(B) has not made adequate progress as 
                defined in the State's plan under section 
                1111(b)(2)(A)(i) for two consecutive school 
                years, except that--
                          [(i) this subparagraph shall not 
                        apply to a school if almost every 
                        student in such school is meeting the 
                        State's advanced level of performance; 
                        or
                          [(ii) in the case of a targeted 
                        assistance school, such school may be 
                        reviewed on the progress of only those 
                        students that have been or are served 
                        under this part; or
                  [(C) has failed to meet the criteria 
                established by the State through the State's 
                transitional procedure under section 
                1111(b)(7)(B) for two consecutive years.
          [(2) Requirement.--(A) Each school identified under 
        paragraph (1) shall--
                  [(i) in consultation with parents, the local 
                educational agency, and the school support 
                team, develop or revise a school plan in ways 
                that have the greatest likelihood of improving 
                the performance of participating children in 
                meeting the State's student performance 
                standards; and
                  [(ii) submit the plan or revised plan to the 
                local educational agency for approval.
          [(B) Before identifying a school for school 
        improvement under paragraph (1), the local educational 
        agency shall provide the school with an opportunity to 
        review the school-level data, including assessment 
        data, on which such identification is based. If the 
        school believes that such identification for school 
        improvement is in error for statistical or other 
        substantive reasons, such school may provide evidence 
        to the local educational agency to support such belief.
          [(C) During the first year immediately following such 
        identification, the school shall implement such 
        school's plan or revised plan.
          [(3) Professional development.--(A) Each school 
        identified under paragraph (1) shall, as part of the 
        school plan under paragraph (2), improve the skills of 
        its staff by providing effective professional 
        development activities. A school shall demonstrate such 
        school's compliance with this paragraph by--
                  [(i) devoting to such activities, over two 
                consecutive years, an amount equivalent to at 
                least 10 percent of the funds received by the 
                school under this part during one fiscal year; 
                or
                  [(ii) otherwise demonstrating that such 
                school is effectively carrying out professional 
                development activities.
          [(B) A school may use funds from any source to meet 
        the requirements of this subsection.
          [(C) Decisions about how to use the funds made 
        available under this part which the school makes 
        available for professional development shall be made by 
        teachers, principals, and other school staff in that 
        school.
          [(4) Technical assistance.--(A) For each school 
        identified under paragraph (1), the local educational 
        agency shall provide technical or other assistance as 
        the school develops and implements such school's plan 
        or revised plan, such as a joint plan between the local 
        educational agency and school that addresses specific 
        elements of student performance problems and that 
        specifies school and local educational agency 
        responsibilities under the plan, and waivers or 
        modifications of requirements of local educational 
        agency policy or regulation that impede the ability of 
        the school to educate students.
          [(B) Such technical assistance may be provided 
        directly by the local educational agency, through 
        mechanisms authorized under section 1117, or with the 
        local educational agency's approval, by an institution 
        of higher education, a private nonprofit organization, 
        an educational service agency, a comprehensive regional 
        assistance center under part A of title XIII, or other 
        entities with experience in helping schools improve 
        achievement.
          [(5) Corrective action.--(A) Except as provided in 
        subparagraph (C), after providing technical assistance 
        pursuant to paragraph (4) and taking other remediation 
        measures, the local educational agency may take 
        corrective action at any time against a school that has 
        been identified under paragraph (1), but, during the 
        third year following identification under paragraph 
        (1), shall take such action against any school that 
        still fails to make adequate progress.
          [(B)(i) Corrective actions are those, consistent with 
        State and local law, determined and made public and 
        disseminated by the local educational agency, which may 
        include--
                  [(I) withholding funds;
                  [(II) interagency collaborative agreements 
                between the school and other public agencies to 
                provide health, counseling, and other social 
                services needed to remove barriers to learning;
                  [(III) revoking authority for a school to 
                operate a schoolwide program;
                  [(IV) decreasing decisionmaking authority at 
                the school level;
                  [(V) making alternative governance 
                arrangements such as the creation of a public 
                charter school;
                  [(VI) reconstituting the school staff; and
                  [(VII) authorizing students to transfer, 
                including transportation costs, to other public 
                schools served by the local educational agency.
          [(ii) Notwithstanding clause (i), corrective actions 
        taken pursuant to this part shall not include the 
        actions described in subclause (I), (III), (IV), (VI), 
        or (VII) of clause (i) until the State has developed 
        assessments that meet the requirements of subparagraph 
        (C) of section 1111(b)(3).
          [(C) Prior to implementing any corrective action, the 
        local educational agency may refrain from such 
        corrective action for one additional year to the extent 
        that the failure to make progress can be attributed to 
        extenuating circumstances as determined by the local 
        educational agency.
          [(D) A school that is no longer operating its 
        schoolwide program due to a corrective action may not 
        resume operation of such a program until the local 
        educational agency determines that the school has 
        adequately reformed its schoolwide program plan to 
        enable the school to make adequate progress toward 
        meeting the State's challenging student performance 
        standards.
          [(6) State educational agency responsibilities.--The 
        State educational agency shall--
                  [(A) make technical assistance under section 
                1117 available to the schools farthest from 
                meeting the State's challenging student 
                performance standards, if requested by the 
                school or local educational agency; and
          [(7) Special rule.--Local educational agencies that 
        for at least two of the three years following 
        identification under paragraph (3) make adequate 
        progress toward meeting the State's standards no longer 
        need to be identified for local educational agency 
        improvement.]

           *       *       *       *       *       *       *

SEC. 1116. ACADEMIC ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
                    IMPROVEMENT.

  (a) Local Review.--Each local educational agency receiving 
funds under this part shall--
          (1) use the State academic assessments 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);
          (2) publicize and disseminate to teachers and other 
        staff, parents, students, and the community, the 
        results of the annual review under paragraph (2);
          (3) review the effectiveness of the actions and 
        activities the schools are carrying out under this part 
        with respect to parental involvement assisted under 
        this Act.
  (b) School Improvement.--
          (1) In general.--
                  (A) Identification.--A local educational 
                agency shall identify for school improvement 
                any elementary or secondary school served under 
                this part that--
                          (i) fails, for any year, to make 
                        adequate yearly progress as defined in 
                        the State's plan under section 
                        1111(b)(2); or
                          (ii) was in school improvement status 
                        under this section immediately before 
                        the effective date of the No Child Left 
                        Behind Act of 2001.
                  (B) Deadline.--The identification described 
                in subparagraph (A) shall take place not later 
                than the first day of the school year following 
                such failure to make adequate yearly progress.
                  (C) Application.--This paragraph does not 
                apply to a school if almost every student in 
                the school is meeting the State's advanced 
                level of performance.
                  (D) Review.--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 under this subsection, 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.--In the case of a 
                school identified for school improvement under 
                subparagraph (A), the local educational agency 
                shall, not later than the first day of the 
                school year following identification, provide 
                all students enrolled in the school with the 
                option to transfer to another public school 
                within the local educational agency, including 
                a public charter school, that has not been 
                identified for school improvement under 
                subparagraph (A), unless such an option is 
                prohibited by State law.
                  (F) Transfer.--Students who use the option to 
                transfer under subparagraph (E) shall be 
                enrolled in classes and other activities in the 
                public school to which they transfer in the 
                same manner as all other children at the public 
                school.
          (2) Opportunity to review and present evidence; time 
        limit.--
                  (A) Before identifying an elementary school 
                or a secondary school for school improvement 
                under paragraph (1), for corrective action 
                under paragraph (6), or for restructuring under 
                paragraph (7), 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), (6), or (7) 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) 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.
          (3) School plan.--
                  (A) 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, the local school board, and 
                other outside experts, for approval by such 
                local educational agency. The school plan shall 
                cover a 2-year period and--
                          (i) incorporate scientifically based 
                        research strategies that strengthen the 
                        core academic subjects in the school 
                        and address the specific academic 
                        issues that caused the school to be 
                        identified for school improvement;
                          (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)(iii)(I) and (II) and 
                        enrolled in the school will meet the 
                        State's proficient level of achievement 
                        on the State academic assessment 
                        described in section 1111(b)(4) not 
                        later than 10 years after the date of 
                        enactment of the No Child Left Behind 
                        Act of 2001;
                          (iii) provide an assurance that the 
                        school shall reserve not less than 10 
                        percent of the funds made available to 
                        the school under this part 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--
                                  (I) directly addresses the 
                                academic performance problem 
                                that caused the school to be 
                                identified for school 
                                improvement;
                                  (II) meets the requirements 
                                for professional development 
                                activities under section 1119A; 
                                and
                                  (III) is provided in a manner 
                                that affords greater 
                                opportunity for participating 
                                in such professional 
                                development;
                          (iv) specify how the funds described 
                        in clause (iii) will be used to remove 
                        the school from school improvement 
                        status;
                          (v) establish specific annual, 
                        measurable goals for continuous and 
                        significant progress by each group of 
                        students specified in section 
                        1111(b)(2)(C)(iii)(I) and (II) and 
                        enrolled in the school that will ensure 
                        that all such groups of students shall 
                        meet the State's proficient level of 
                        achievement on the State academic 
                        assessment described in section 
                        1111(b)(4) not later than 10 years 
                        after the date of enactment of the No 
                        Child Left Behind Act of 2001;
                          (vi) identify how the school will 
                        provide written notification about the 
                        identification to parents of each 
                        student enrolled in such school, in a 
                        format and, to the extent practicable, 
                        in a language 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
                          (viii) incorporate, as appropriate, 
                        extended learning time for students, 
                        such as before school, after school, 
                        during the summer and extension of the 
                        school year.
                  (B) Conditional approval.--The local 
                educational agency may condition approval of a 
                school plan on--
                          (i) inclusion of 1 or more of the 
                        corrective actions specified in 
                        paragraph (6)(D)(ii); or
                          (ii) feedback on the school 
                        improvement plan from parents and 
                        community leaders.
                  (C) 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 school year following the school year in 
                which the failure to make adequate yearly 
                progress took place.
                  (D) Notwithstanding subparagraph (C), in a 
                case in which a plan is not approved prior to 
                the beginning of a school year, such plan shall 
                be implemented immediately upon approval.
                  (E) Local educational agency approval.--The 
                local educational agency shall--
                          (i) establish a peer-review process 
                        to assist with review of a school plan 
                        prepared by a school served by the 
                        local educational agency; and
                          (ii) promptly review the school plan, 
                        work with the school as necessary, and 
                        approve the school plan if it 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 provide technical assistance as the 
                school develops and implements the school plan 
                throughout the duration of such plan.
                  (B) Specific assistance.--Such technical 
                assistance--
                          (i) shall include assistance in 
                        analyzing data from the academic 
                        assessments required under section 
                        1111(b)(4), and other samples of 
                        student work, to identify and address 
                        instructional problems and solutions;
                          (ii) shall include assistance in 
                        identifying and implementing 
                        professional development, instructional 
                        strategies, and methods of instruction 
                        that are based upon 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 resources are 
                        more effectively allocated for the 
                        activities most likely to increase 
                        student 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 (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 
                                performance.
                  (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) Notification to parents.--A local educational 
        agency shall promptly provide parents (in a format and, 
        to the extent practicable, in a language they can 
        understand) of each student in an elementary school or 
        a secondary school identified for school improvement--
                  (A) an explanation of what the school 
                improvement identification means, and how the 
                school identified for school improvement 
                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 parents described 
                in this paragraph can become involved in 
                addressing the academic issues that caused the 
                school to be identified for school improvement; 
                and
                  (F) an explanation regarding the option of 
                their child to transfer to another public 
                school, including a public charter school.
          (6) 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 
                        students enrolled in the school 
                        identified for corrective action will 
                        perform at the State's proficient and 
                        advanced levels of achievement on the 
                        State academic assessment described in 
                        section 1111(b)(4).
                  (B) System.--In order to help students served 
                under this part meet challenging State academic 
                standards, each local educational agency shall 
                implement a system of corrective action in 
                accordance with subparagraphs (C) through (F) 
                and paragraphs (7) through (9).
                  (C) Role of local educational agency.--The 
                local educational agency--
                          (i) after providing public school 
                        choice under paragraph (1)(E) and 
                        technical assistance under paragraph 
                        (4), shall identify for corrective 
                        action and take corrective action with 
                        respect to any school served by the 
                        local educational agency under this 
                        part that--
                                  (I) fails to make adequate 
                                yearly progress, as defined by 
                                the State under section 
                                1111(b)(2), at the end of the 
                                first full school year 
                                following identification under 
                                paragraph (1); or
                                  (II) was in school-
                                improvement status for 2 years 
                                or in corrective-action status 
                                under this subsection 
                                immediately before the 
                                effective date of the No Child 
                                Left Behind Act of 2001; and
                          (ii) shall continue to provide 
                        technical assistance consistent with 
                        paragraph (4) while instituting any 
                        corrective action under clause (i); and
                  (D) Requirements.--In the case of a school 
                described in subparagraph (C)(i), the local 
                educational agency shall both--
                          (i) continue to provide all students 
                        enrolled in the school with the option 
                        to transfer to another public school 
                        within the local educational agency, 
                        including a public charter school, that 
                        has not been identified for school 
                        improvement under paragraph (1), unless 
                        such an option is prohibited by State 
                        law; and
                          (ii) take at least 1 of the following 
                        corrective actions:
                                  (I) Replace the school staff 
                                which 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 performance for 
                                low-performing students and the 
                                school meeting 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 meeting 
                                adequate yearly progress, based 
                                on its school plan under this 
                                subsection.
                                  (V) Extend the school year or 
                                school day.
                                  (VI) Restructure the internal 
                                organizational structure of the 
                                school.
                  (E) Delay.--A local educational agency may 
                delay, for a period not to exceed 1 year, 
                implementation of corrective action only if the 
                school's failure to make adequate yearly 
                progress was justified 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.
                  (F) 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 a format and, to the extent 
                        practicable, in a language that the 
                        parents can understand; and
                          (iii) through such means as the 
                        Internet, the media, and public 
                        agencies.
          (7) Restructuring.--
                  (A) Failure to make adequate yearly 
                progress.--If--
                          (i) a school is subject to corrective 
                        action under paragraph (6) for one full 
                        school year, and at the end of such 
                        year continues to fail to make adequate 
                        yearly progress and students in the 
                        school who are from economically 
                        disadvantaged families are not making 
                        statistically significant progress in 
                        the subjects included in the State's 
                        definition of adequate yearly progress; 
                        or
                          (ii) for 2 additional years a school 
                        subject to corrective action under 
                        paragraph (6) fails to make adequate 
                        yearly progress, the local educational 
                        agency shall--
                                  (I) provide all students 
                                enrolled in the school with the 
                                option to transfer to another 
                                public school within the local 
                                educational agency, including a 
                                public charter school, that has 
                                not been identified for school 
                                improvement under paragraph 
                                (1), unless prohibited by State 
                                law;
                                  (II) make supplemental 
                                instructional services 
                                available, consistent with 
                                subsection (d)(1); and
                                  (III) prepare a plan and make 
                                necessary arrangements to carry 
                                out subparagraph (B).
                  (B) 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 1 of the 
                following alternative governance arrangements 
                for the school consistent with State law:
                          (i) Reopening the school as a public 
                        charter school.
                          (ii) Replacing the principal and all 
                        or most of the school staff that are 
                        relevant to the failure to make 
                        adequate yearly progress.
                          (iii) Entering into a contract with 
                        an entity, such as a private management 
                        company, to operate the public school.
                          (iv) Turning the operation of the 
                        school over to the State, if permitted 
                        under State law and agreed to by the 
                        State.
                  (C) Available results.--The State educational 
                agency shall ensure that, for any school year 
                in which a school is subject to school 
                improvement under this subsection, the results 
                of State academic assessments for that school 
                are available to the local educational agency 
                by the end of the school year in which the 
                academic assessments are administered.
                  (D) Prompt notice.--The local educational 
                agency shall provide prompt notice to teachers 
                and parents whenever subparagraph (A) or (B) 
                applies, shall provide them adequate 
                opportunity to comment before taking any action 
                under those subparagraphs and to participate in 
                developing any plan under subparagraph 
                (A)(iii), and shall provide parents an 
                explanation of the options under subparagraph 
                (A)(i) and (ii).
          (8) Transportation.--In any case described in 
        paragraph (6)(D)(i) and (7)(A)(ii)(I) the local 
        educational agency--
                  (A) shall provide, or shall pay for the 
                provision of, transportation for the student to 
                the public school the child attends; and
                  (B) may use not more than a total of 15 
                percent of its allocation under this part for 
                that purpose.
          (9) Cooperative agreement.--In any case described in 
        paragraph (6)(D)(i) or (7)(A)(ii)(I), if all public 
        schools in the local educational agency to which a 
        child may transfer to, are identified for school 
        improvement, the agency shall, to the extent 
        practicable, establish a cooperative agreement with 
        other local educational agencies in the area for a 
        transfer.
          (10) Duration.--If any school identified for 
        corrective action or restructuring--
                  (A) makes adequate yearly progress for 2 
                consecutive years, the local educational agency 
                need no longer subject it to corrective action 
                or restructuring nor identify it as in need of 
                improvement; or
                  (B) fails to make adequate yearly progress, 
                but children from low-income families in the 
                school make statistically significant 
                educational progress for 1 year, the local 
                educational agency shall place or continue as 
                appropriate the school in corrective action 
                under paragraph (6).
          (11) State responsibilities.--The State shall--
                  (A) make technical assistance under section 
                1117 available to all schools identified for 
                school improvement and restructuring under this 
                subsection;
                  (B) if it determines that a local educational 
                agency has failed to carry out its 
                responsibilities under this subsection, take 
                such corrective actions as the State finds 
                appropriate and in compliance with State law; 
                and
                  (C) ensure that academic assessment results 
                under this part are provided to schools within 
                the same school year in which the assessment 
                was given.
  (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
                  (B) publicize and disseminate to local 
                educational agencies, teachers and other staff, 
                parents, students, and the community the 
                results of the State review consistent with 
                section 1111, including statistically sound 
                disaggregated results, as required by section 
                1111(b)(2).
          (2) Identification of local educational agency for 
        improvement.--A State shall identify for improvement 
        any local educational agency that--
                  (A) for 2 consecutive years failed to make 
                adequate yearly progress as defined in the 
                State's plan under section 1111(b)(2); or
                  (B) was in improvement status under this 
                section as this section was in effect on the 
                day preceding the date of the enactment of the 
                No Child Left Behind Act of 2001.
          (3) Transition.--The 2-year period described in 
        paragraph (2)(A) shall include any continuous period of 
        time immediately preceding the date of the enactment of 
        the No Child Left Behind Act of 2001, during which a 
        local educational agency did not make adequate yearly 
        progress as defined in the State's plan, as such plan 
        was in effect on the day preceding the date of such 
        enactment.
          (4) Targeted assistance schools.--For purposes of 
        targeted assistance schools in 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 (2), a State educational agency shall 
                provide the local educational agency with an 
                opportunity to review the local educational 
                agency data, including academic assessment 
                data, on which that proposed identification is 
                based.
                  (B) Supporting evidence.--If the local 
                educational agency believes that the proposed 
                identification is in error for statistical or 
                other substantive reasons, it may provide 
                supporting evidence to the State educational 
                agency, which such agency shall consider 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 notify parents in a format, and 
        to the extent practicable in a language they can 
        understand, of each student enrolled in a school in a 
        local educational agency identified for improvement, of 
        the results of the review under paragraph (1) and, if 
        the agency is identified as in need of 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) Plan.--Each local educational agency 
                identified under paragraph (2) 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 the local 
                        educational agency;
                          (ii) identify specific goals and 
                        objectives the local educational agency 
                        will undertake to make adequate yearly 
                        progress and which--
                                  (I) have the greatest 
                                likelihood of improving the 
                                performance of participating 
                                children in meeting the State's 
                                student academic achievement 
                                standards;
                                  (II) address the professional 
                                development needs of staff; and
                                  (III) 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)(iii)(I) and (II);
                          (iii) incorporate, as appropriate, 
                        extended learning time for students 
                        such as before school, after school, 
                        during the summer, and extension of the 
                        school year.
                          (iv) identify how the local 
                        educational agency will provide written 
                        notification to parents in a format, 
                        and to the extent practicable in a 
                        language, that they can understand, 
                        pursuant to paragraph (6); and
                          (v) specify the responsibilities of 
                        the State educational agency and the 
                        local educational agency under the 
                        plan.
                  (B) Implementation.--The local educational 
                agency shall implement its plan or revised plan 
                expeditiously, but not later than the beginning 
                of the school year after which the school has 
                been identified for improvement.
          (8) State responsibility.--
                  (A) In general.--For each local educational 
                agency identified under paragraph (2), the 
                State shall provide technical or other 
                assistance, if requested, as authorized under 
                section 1117, to better enable the local 
                educational agency--
                          (i) to develop and implement its 
                        revised plan as approved by the State 
                        educational agency consistent with the 
                        requirements of this section; and
                          (ii) to work with schools needing 
                        improvement.
                  (B) Technical assistance.--Technical 
                assistance provided under this section by the 
                State educational agency or an entity 
                authorized by such agency shall be based upon 
                scientifically based research.
          (9) Corrective action.--In order to help students 
        served under this part meet challenging State academic 
        standards, each State shall implement a system of 
        corrective action in accordance with the following:
                  (A) In general.--After providing technical 
                assistance under paragraph (8) and subject to 
                subparagraph (D), the State--
                          (i) may take corrective action at any 
                        time with respect to a local 
                        educational agency that has been 
                        identified under paragraph (2);
                          (ii) shall take corrective action 
                        with respect to any local educational 
                        agency that fails to make adequate 
                        yearly progress, as defined by the 
                        State, after the end of the second year 
                        following its identification under 
                        paragraph (2); and
                          (iii) shall continue to provide 
                        technical assistance while instituting 
                        any corrective action under clause (i) 
                        or (ii).
                  (B) Definition.--As used in this paragraph, 
                the term ``corrective action'' means action, 
                consistent with State law, that--
                          (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 school; and
                          (ii) is designed to meet the goal of 
                        having all students served under this 
                        part perform at the proficient and 
                        advanced performance levels.
                  (C) Certain local educational agencies.--In 
                the case of a local educational agency 
                described in this paragraph, the State 
                educational agency shall take not less than 1 
                of the following corrective actions:
                          (i) Withhold funds from the local 
                        educational agency.
                          (ii) Replace the school district 
                        personnel who are relevant to the 
                        failure to make adequate year progress.
                          (iii) Remove particular schools from 
                        the jurisdiction of the local 
                        educational agency and establish 
                        alternative arrangements for public 
                        governance and supervision of such 
                        schools.
                          (iv) Appoint, 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.
                          (v) Abolish or restructure the local 
                        educational agency.
                          (vi) Authorize students to transfer 
                        from a school operated by a local 
                        educational agency to a higher 
                        performing public school operated by 
                        another local educational agency, or to 
                        a public charter school and provide 
                        such students transportation (or the 
                        costs of transportation to such 
                        schools), in conjunction with not less 
                        than 1 additional action described 
                        under this paragraph.
                  (D) Hearing.--Prior to implementing any 
                corrective action, the State educational agency 
                shall provide due process and a hearing to the 
                affected local educational agency, if State law 
                provides for such process and hearing.
                  (E) Publication.--The State educational 
                agency shall publish, and disseminate to 
                parents and the public any corrective action it 
                takes under this paragraph through such means 
                as the Internet, the media, and public 
                agencies.
                  (F) Delay.--A local educational agency may 
                delay, for a period not to exceed 1 year, 
                implementation of corrective action if the 
                failure to make adequate yearly progress was 
                justified 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.
          (10) Special rule.--A local educational agency, that, 
        for at least 2 of the 3 years following identification 
        under paragraph (2), makes adequate yearly progress 
        shall no longer be identified for improvement.
  (d) Parental Options.--
          (1) In any case described in subsection 
        (b)(7)(A)(ii)(II), the local educational agency shall 
        permit the parents of each eligible child to obtain 
        supplemental educational services for such child from a 
        provider, as approved by the State educational agency 
        in accordance with reasonable criteria that it shall 
        adopt. Such criteria shall require a provider to 
        demonstrate a record of effectiveness, or the potential 
        of effectiveness, in providing supplemental 
        instructional services to children, consistent with the 
        instructional program of the local educational agency 
        and the academic standards described under section 
        1111.
          (2) Selection.--In obtaining services under this 
        paragraph, a parent shall select a provider that meets 
        the criteria described under paragraph (1). The local 
        educational agency shall provide assistance, upon 
        request, to parents in the selection of a provider to 
        provide supplemental instructional services.
          (3) Contract.--In the case of the selection of a 
        provider under paragraph (2) by a parent, the local 
        educational agency shall enter into a contract with 
        such provider. Such contract shall--
                  (A) require the local educational agency to 
                develop, with parents (and the provider they 
                have chosen), a statement of specific 
                performance goals for the student, how the 
                student's progress will be measured, and a 
                timetable for improving achievement;
                  (B) provide for the termination of such 
                contract with a provider that is unable to meet 
                such goals and timetables; and
                  (C) contain provisions with respect to the 
                making of payments to the provider by the local 
                educational agency.
          (4) Additional local educational agency 
        responsibilities.--Each local educational agency 
        subject to this paragraph shall provide annual notice 
        to parents (if feasible, in the parents' language) of 
        the availability of services under this paragraph and 
        the eligible providers of those services.
          (5) State educational agency responsibilities.--Each 
        State educational agency shall--
                  (A) consult with local educational agencies 
                and promote maximum participation by providers 
                to ensure, to the extent practicable, that 
                parents have as many choices of those providers 
                as possible;
                  (B) develop criteria consistent with 
                paragraph (6) and apply such criteria to 
                potential providers to determine which, based 
                on the quality and effectiveness of their 
                services, are eligible to participate;
                  (C) maintain an updated list of approved 
                providers across the State, from which parents 
                may select;
                  (D) develop and implement standards and 
                techniques for monitoring the quality and 
                effectiveness of the services offered by 
                providers, and withdraw approval from those 
                that fail to meet those standards for two 
                consecutive years;
                  (E) provide annual notice to potential 
                providers of supplemental services of the 
                opportunity to provide services under this 
                paragraph and of the applicable procedures for 
                obtaining approval from the State educational 
                agency to be a provider of those services.
          (6) Criteria for providers.--In order for a provider 
        to be included on the State list under paragraph 
        (5)(c), a provider shall agree to the following:
                  (A) Provide parents of children receiving 
                supplemental instructional services under this 
                paragraph and the appropriate local educational 
                agency with information on the progress of 
                their children in increasing achievement, in a 
                format and, to the extent practicable, a 
                language such parents can understand.
                  (B) Ensure that instruction and content used 
                by the provider is consistent with the 
                instruction and content used by the local 
                educational agency and State.
                  (C) Require a provider to meet all applicable 
                Federal, State, and local health, safety and 
                civil rights laws.
                  (D) Ensure that all instruction and content 
                under this paragraph shall be secular, neutral, 
                and nonideological.
          (7) Costs.--
                  (A) The costs of administration of this 
                paragraph and the costs of providing such 
                supplemental instructional services shall be 
                limited to the total of 40 percent of the per 
                child allocation under subpart 2 of each school 
                identified under subsection (b)(7)(A)(ii)(II);
                  (B) Additional funds.--If the allocation 
                under subparagraph (A) is insufficient to 
                provide services for all eligible students that 
                have selected a provider, a local educational 
                agency may use funds under subpart 1 of part A 
                of title IV to pay for additional costs;
                  (C) Transportation costs.--A local 
                educational agency may use up to 15 percent of 
                its allocation under subpart 2 for 
                transportation costs.
          (8) Funds provided by state educational agency.--Each 
        State educational agency may use funds that it reserves 
        under this part, and subpart 1 of part A of title IV to 
        provide local educational agencies that do not have 
        sufficient funds to provide services under this 
        paragraph for all eligible students requesting such 
        services.
          (9) Duration.--The local educational agency shall 
        continue to provide supplemental instructional services 
        to enrolled children receiving such services under this 
        paragraph until the child completes the grade 
        corresponding to the highest grade offered at the 
        public school which was identified for restructuring 
        under subsection (b)(7), or until such school, so long 
        as the child attends such school, is not identified 
        under subsection (b)(1), (b)(6), or (b)(7), whichever 
        comes earlier.
          (10) Definitions.--As used in this subsection, the 
        term--
                  (A) ``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) ``supplemental instructional services'' 
                means tutoring and other supplemental academic 
                enrichment services that are in addition to 
                instruction provided during the school day and 
                are specifically designed to increase the 
                academic achievement of eligible children on 
                the academic assessments required under section 
                1111; and
                  (C) ``provider'' means a non-profit or a for-
                profit entity which has a demonstrated record 
                of effectiveness or the potential of 
                effectiveness--
                          (i) in providing supplemental 
                        instructional services that are 
                        consistent with the instructional 
                        program of the local educational agency 
                        and the academic standards described 
                        under section 1111; and
                          (ii) in sound fiscal management;
                  (D) ``per child allocation'' means an amount 
                that is equal to at least--
                          (i) the amount of the school's 
                        allocation under subpart 2; divided by
                          (ii) the number of children from low-
                        income families enrolled in the school.
          (11) Prohibition.--Nothing contained in this 
        paragraph shall permit the making of any payment under 
        this paragraph for religious worship or instruction.

           *       *       *       *       *       *       *

[SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

  [(a) System for Support.--
          [(1) State support.--Each State educational agency 
        shall establish a statewide system of intensive and 
        sustained support and improvement for schools receiving 
        funds under this part, including schoolwide programs 
        and schools in need of program improvement, in order to 
        increase the opportunity for all students in such 
        schools to meet the State's content standards and 
        student performance standards.
          [(2) Meeting requirements.--Funds reserved under 
        section 1003(a) or appropriated under section 1002(f) 
        shall be used to meet the requirements of this section. 
        In addition to such funds a State educational agency 
        may use State administrative funds reserved under 
        section 1603(c) to meet such requirements.
  [(b) Regional Centers.--Such a statewide system shall work 
with and receive support and assistance from the comprehensive 
regional technical assistance centers under part A of title 
XIII and the educational regional laboratories under section 
941(h) of the Educational Research, Development, Dissemination, 
and Improvement Act of 1994.
  [(c) Provisions.--The system shall include at a minimum, the 
following:
          [(1) School support teams.--
                  [(A) Each State educational agency, in 
                consultation with local educational agencies 
                and schools, shall establish a system of school 
                support teams to provide information and 
                assistance to schoolwide programs and to assist 
                such programs in providing an opportunity to 
                all students to meet the State's student 
                performance standards.
                  [(B) If funds are sufficient, school support 
                teams shall provide information and assistance 
                to--
                          [(i) schools--
                                  [(I) in which the number of 
                                students in poverty is equal to 
                                or greater than 75 percent of 
                                the total number of students 
                                enrolled in such school; and
                                  [(II) identified as in need 
                                of improvement under section 
                                1116(c)(1); and
                          [(ii) other schools in need of 
                        improvement.
                  [(C) Each such team shall be composed of 
                persons, including teachers, pupil services 
                personnel, representatives of organizations 
                knowledgeable about successful schoolwide 
                projects or comprehensive school reform 
                (especially distinguished educators described 
                in paragraph (3)), and other persons who are 
                knowledgeable about research and practice on 
                teaching and learning, particularly about 
                strategies for improving the educational 
                opportunities for low-achieving students 
                (including alternative and applied learning), 
                such as representatives of institutions of 
                higher education, regional educational 
                laboratories or research centers, and outside 
                consultant groups.
                  [(D) A school support team shall work 
                cooperatively with each school and make 
                recommendations as the school develops the 
                school's schoolwide program plan or school 
                improvement plan, review each plan, and make 
                recommendations to the school and the local 
                educational agency.
                  [(E) During the operation of the schoolwide 
                program or during school improvement 
                activities, a school support team shall--
                          [(i) periodically review the progress 
                        of the school in enabling children in 
                        the school to meet the State's student 
                        performance standards under this part;
                          [(ii) identify problems in the design 
                        and operation of the instructional 
                        program; and
                          [(iii) make recommendations for 
                        improvement to the school and the local 
                        educational agency.
          [(2) Distinguished schools.--
                  [(A) Each State shall designate as a 
                distinguished school any school served under 
                this part which, for three consecutive years, 
                has exceeded the State's definition of adequate 
                progress as defined in section 
                1111(b)(2)(A)(i), and, any school in which--
                          [(i) virtually all students have met 
                        the State's advanced level of student 
                        performance; and
                          [(ii) equity in participation and 
                        achievement of students by sex has been 
                        achieved or significantly improved.
                  [(B) Schools designated under this paragraph 
                may serve as models and provide support to 
                other schools, especially schoolwide programs 
                and schools in school improvement, to assist 
                such schools in meeting the State's student 
                performance standards.
                  [(C) States shall use funds reserved under 
                section 1003(a) and funds made available under 
                section 1002(f) to allow schools identified 
                under this paragraph to carry out the 
                activities described in subparagraph (B) and 
                may use such funds to provide awards to such 
                schools to further such school's education 
                programs under this part, provide additional 
                incentives for continued success, and reward 
                individuals or groups in the school for 
                exemplary performance.
                  [(D) A local educational agency may also 
                recognize the success of a distinguished school 
                by providing additional institutional and 
                individual rewards, such as greater 
                decisionmaking authority at the school building 
                level, increased access to resources or 
                supplemental services such as summer programs 
                that may be used to sustain or increase 
                success, additional professional development 
                opportunities, opportunities to participate in 
                special projects, and individual financial 
                bonuses.
          [(3) Distinguished educators.--
                  [(A) In order to provide assistance to 
                schools and local educational agencies 
                identified as needing improvement and schools 
                participating in schoolwide programs, each 
                State, in consultation with local educational 
                agencies and using funds reserved under section 
                1003(a) and made available under section 
                1002(f), shall establish a corps of 
                distinguished educators.
                  [(B) When possible, distinguished educators 
                shall be chosen from schools served under this 
                part that have been especially successful in 
                enabling children to meet or make outstanding 
                progress toward meeting the State's student 
                performance standards, such as the schools 
                described in paragraph (2).
                  [(C) Distinguished educators shall provide, 
                as part of the statewide system, intensive and 
                sustained assistance to the schools and local 
                educational agencies farthest from meeting the 
                State's student performance standards and to 
                schoolwide programs as such programs develop 
                and implement their plans, including 
                participation in the support teams described in 
                paragraph (1).
  [(d) Implementation.--In order to implement this section 
funds reserved under section 1003(a) and funds made available 
under section 1002(f) may be used by a State for release time 
for teachers and administrators, travel, training, and other 
related costs.
  [(e) Alternatives.--The State may devise additional 
approaches to providing the assistance described in paragraphs 
(1) and (3) of subsection (c), such as providing assistance 
through institutions of higher education and educational 
service agencies or other local consortia, and the State may 
seek approval from the Secretary to use funds reserved under 
section 1003 and funds made available under section 1002(f) for 
such approaches as part of the State plan.

[SEC. 1118. PARENTAL INVOLVEMENT.

  [(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 the provisions of this section. 
        Such activities 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 upon with, and distribute to, 
        parents of participating children a written parent 
        involvement policy that is incorporated into the local 
        educational agency's plan developed under section 1112, 
        establishes the expectations for parent involvement, 
        and describes how the local educational 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;
                  [(C) build the schools' and parents' capacity 
                for strong parent 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 Head Start, Even Start, the 
                Parents as Teachers Program, the 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 developed under this section--
                          [(i) to determine the effectiveness 
                        of the policy in increasing the 
                        participation of parents; and
                          [(ii) to identify barriers to greater 
                        participation by parents in activities 
                        authorized by this section, giving 
                        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
                  [(F) use the findings of the evaluations 
                described in subparagraph (E) in designing 
                strategies for school improvement and revising, 
                if necessary, the parental involvement policies 
                described in this subsection and subsection 
                (b)(1).
          [(3) Reservation.--(A) Each local educational agency 
        shall reserve not less than 1 percent of such agency's 
        allocation under this part to carry out this section, 
        including family literacy and parenting skills, except 
        that this paragraph shall not apply if 1 percent of 
        such agency's allocation under this part (other than 
        funds allocated under section 1002(e)) for the fiscal 
        year for which the determination is made is $5,000 or 
        less.
          [(B) 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.
  [(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 upon by such parents, that 
        shall describe the means for carrying out the 
        requirements of subsections (c) through (f). Such 
        policy shall be 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 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 participation under this part and to 
        explain this part, its requirements, and their right 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 school parental 
        involvement policy and the joint development of the 
        schoolwide program plan under section 1114(b), except 
        that if a school has in place a process for involving 
        parents in the joint planning and design of its 
        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) school performance profiles required 
                under section 1116(a)(3) and their child's 
                individual student assessment results, 
                including an interpretation of such results, as 
                required under section 1111(b)(3)(H);
                  [(C) a description and explanation of the 
                curriculum in use at the school, the forms of 
                assessment used to measure student progress, 
                and the proficiency levels students are 
                expected to meet;
                  [(D) opportunities for regular meetings to 
                formulate suggestions, share experiences with 
                other parents, and participate as appropriate 
                in decisions relating to the education of their 
                children if such parents so desire; and
                  [(E) timely responses to parents' suggestions 
                under subparagraph (D); 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 Performance.--
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 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 performance 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--
                  [(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, parents, and the community to improve student 
achievement, each school and local educational agency--
          [(1) shall provide assistance to participating 
        parents in such areas as understanding the National 
        Education Goals, the State's content standards and 
        State student performance standards, the provisions of 
        section 1111(b)(8), State and local assessments, the 
        requirements of this part, and how to monitor a child's 
        progress and work with educators to improve the 
        performance of their children as well as information on 
        how parents can participate in decisions relating to 
        the education of their children;
          [(2) shall provide materials and training, such as--
                  [(A) coordinating necessary literacy training 
                from other sources to help parents work with 
                their children to improve their children's 
                achievement; and
                  [(B) training to help parents to work with 
                their children to improve their children's 
                achievement;
          [(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 home and school;
          [(4) shall coordinate and integrate parent 
        involvement programs and activities with Head Start, 
        Even Start, the Home Instruction Programs for Preschool 
        Youngsters, the Parents as Teachers Program, and public 
        preschool programs and other programs, to the extent 
        feasible and appropriate;
          [(5) shall develop appropriate roles for community-
        based organizations and businesses in parent 
        involvement activities, including providing information 
        about opportunities for organizations and businesses to 
        work with parents and schools, and encouraging the 
        formation of partnerships between elementary, middle, 
        and secondary schools and local businesses that include 
        a role for parents;
          [(6) shall conduct other activities, as appropriate 
        and feasible, such as parent resource centers and 
        providing opportunities for parents to learn about 
        child development and child rearing issues beginning at 
        the birth of a child, that are designed to help parents 
        become full partners in the education of their 
        children;
          [(7) shall ensure, to the extent possible, that 
        information related to school and parent programs, 
        meetings, and other activities is sent to the homes of 
        participating children in the language used in such 
        homes;
          [(8) may involve parents in the development of 
        training for teachers, principals, and other educators 
        to improve the effectiveness of such training in 
        improving instruction and services to the children of 
        such parents;
          [(9) 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 activities;
          [(10) 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;
          [(11) may train and support parents to enhance the 
        involvement of other parents;
          [(12) may arrange meetings at a variety of times, 
        such as in the mornings and evenings, in order to 
        maximize the opportunities for parents to participate 
        in school related activities;
          [(13) may arrange for teachers or other educators, 
        who work directly with participating children, to 
        conduct in-home conferences with parents who are unable 
        to attend such conferences at school;
          [(14) may adopt and implement model approaches to 
        improving parental involvement, such as Even Start; and
          [(15) 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 or with disabilities, including providing 
information and school profiles in a language and form such 
parents understand.
  [(g) Parental Information and Resource Centers.--In States 
where parental information and resource centers have been 
established pursuant to section 401 of the Goals 2000: Educate 
America Act of 1994 (to provide training, information, and 
support to parents and individuals who work with parents), 
local educational agencies and schools receiving assistance 
under this part shall assist parents and parent organizations 
by informing such parents and organizations of the existence 
and purpose of such centers, providing such parents and 
organizations with a description of the services and programs 
provided by such centers, advising parents on how to use such 
centers, and helping parents to contact such centers.

[SEC. 1119. PROFESSIONAL DEVELOPMENT.

  [(a) Program Requirements.--
          [(1) In general.--Each local educational agency 
        receiving assistance under this part shall provide 
        high-quality professional development that will improve 
        the teaching of the academic subjects, consistent with 
        the State content standards, in order to enable all 
        children to meet the State's student performance 
        standards.
          [(2) Program design.--Such professional development 
        activities shall be designed by principals, teachers, 
        and other school staff in schools receiving assistance 
        under this part.
  [(b) Professional Development Activities.--
          [(1) Required activities.--Such professional 
        development activities shall--
                  [(A) support instructional practices that are 
                geared to challenging State content standards 
                and create a school environment conducive to 
                high achievement in the academic subjects;
                  [(B) support local educational agency plans 
                under section 1112 and school plans under 
                section 1114;
                  [(C) draw on resources available under this 
                part, title III of the Goals 2000: Educate 
                America Act, title II of this Act, and from 
                other sources;
                  [(D) where appropriate, as determined by the 
                local educational agency, include strategies 
                for developing curricula and teaching methods 
                that integrate academic and vocational 
                instruction (including applied learning and 
                team teaching strategies); and
                  [(E) include strategies for identifying and 
                eliminating gender and racial bias in 
                instructional materials, methods, and 
                practices.
          [(2) Optional activities.--Such professional 
        development activities may include--
                  [(A) instruction in the use of assessments;
                  [(B) instruction in ways that teachers, 
                principals, pupil services personnel, and 
                school administrators may work more effectively 
                with parents;
                  [(C) the forming of partnerships with 
                institutions of higher education to establish 
                school-based teacher training programs that 
                provide prospective teachers and novice 
                teachers with an opportunity to work under the 
                guidance of experienced teachers and college 
                faculty;
                  [(D) instruction in the use of technology;
                  [(E) the creation of career ladder programs 
                for paraprofessionals (assisting teachers under 
                this part) to obtain the education necessary 
                for such paraprofessionals to become licensed 
                and certified teachers;
                  [(F) instruction in ways to teach special 
                needs children;
                  [(G) instruction in gender-equitable 
                education methods, techniques, and practices;
                  [(H) joint professional development 
                activities involving programs under this part, 
                Head Start, Even Start, or State-run preschool 
                program personnel; and
                  [(I) instruction in experiential-based 
                teaching methods such as service learning.
  [(c) Program Participation.--Each local educational agency 
receiving assistance under this part is encouraged to design 
professional development programs so that--
          [(1) all school staff in schools participating in a 
        schoolwide program under section 1114 can participate 
        in professional development activities; and
          [(2) all school staff in targeted assistance schools 
        may participate in professional development activities 
        if such participation will result in better addressing 
        the needs of students served under this part.
  [(d) Parental Participation.--Parents may participate in 
professional development activities under this part if the 
school determines that parental participation is appropriate.
  [(e) Consortia.--In carrying out such professional 
development programs, local educational agencies may provide 
services through consortia arrangements with other local 
educational agencies, educational service agencies or other 
local consortia, institutions of higher education, or other 
public or private institutions or organizations.
  [(f) Effective Teaching Strategies.--Knowledge of effective 
teaching strategies that is gained through professional 
development activities under this section may be shared with 
teachers who are not participating in targeted assistance 
programs under this part.
  [(g) 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, title 
III of the Goals 2000: Educate America Act, and other sources.
  [(h) State Review.--
          [(1) In general.--The State educational agency shall 
        review the local educational agency's plan under 
        section 1112(b) to determine if such agency's 
        professional development activities--
                  [(A) are tied to challenging State student 
                content and student performance standards;
                  [(B) reflect research on teaching and 
                learning where possible;
                  [(C) are designed to have a positive impact 
                on the teacher's performance in the classroom;
                  [(D) contribute to continuous improvement in 
                the classroom or throughout the school;
                  [(E) include methods to teach children with 
                special needs;
                  [(F) are developed with the extensive 
                participation of teachers; and
                  [(G) include gender-equitable education 
                methods, techniques, and practices.
          [(2) Technical assistance.--If a local educational 
        agency's plan for professional development does not 
        include the activities described in paragraph (1), the 
        State educational agency shall provide technical 
        assistance to such local educational agencies to enable 
        such agencies to make progress toward inclusion of such 
        activities in the local educational agency's 
        professional development activities.
          [(3) Special rule.--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(d)(6).
  [(i) Instructional Aides.--
          [(1) In general.--If a local educational agency uses 
        funds received under this part to employ instructional 
        aides, the local educational agency shall ensure that 
        such aides--
                  [(A) possess the knowledge and skills 
                sufficient to assist participating children in 
                meeting the educational goals of this part;
                  [(B) have a secondary school diploma, or its 
                recognized equivalent, or earn either within 
                two years of employment, except that a local 
                educational agency may employ an instructional 
                aide that does not meet the requirement of this 
                subparagraph if such aide possesses proficiency 
                in a language other than English that is needed 
                to enhance the participation of children in 
                programs under this part; and
                  [(C) are under the direct supervision of a 
                teacher who has primary responsibility for 
                providing instructional services to eligible 
                children.
          [(2) Inclusion in activities.--Each local educational 
        agency receiving funds under this part, when feasible, 
        shall include instructional aides in professional 
        development activities.

[SEC. 1120.  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 a local educational agency who are enrolled 
        in private elementary 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).
          [(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.
          [(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.
          [(5) Provision of services.--The local educational 
        agency may provide such services 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 and where the services will be 
                provided;
                  [(D) how the services will be assessed; and
                  [(E) the size and scope of the equitable 
                services to be provided to the eligible private 
                school children, and what is the proportion of 
                funds allocated under subsection (a)(4) for 
                such services.
          [(2) Timing.--Such consultation 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.
          [(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.
  [(c) 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 and property.
          [(2) Provision of services.--(A) The provision of 
        services under this section shall be provided--
                  [(i) by employees of a public agency; or
                  [(ii) through contract by such public agency 
                with an individual, association, agency, or 
                organization.
          [(B) In the provision of such services, such 
        employee, person, 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.
  [(d) Standards for a Bypass.--If a local educational agency 
is prohibited by law from providing for the participation on an 
equitable basis of eligible children enrolled in private 
elementary 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; and
          [(2) arrange for the provision of services to such 
        children through arrangements that shall be subject to 
        the requirements of this section and sections 14505 and 
        14506.
  [(e) Capital Expenses.--
          [(1) In general.--(A) From the amount appropriated 
        for this subsection under section 1002(e) for any 
        fiscal year, each State is eligible to receive an 
        amount that bears the same ratio to the amount so 
        appropriated as the number of private school children 
        who received services under this part in the State in 
        the most recent year for which data satisfactory to the 
        Secretary are available bears to the number of such 
        children in all States in that same year.
          [(B) The Secretary shall reallocate any amounts 
        allocated under subparagraph (A) that are not used by a 
        State for the purpose of this subsection to other 
        States on the basis of their respective needs, as 
        determined by the Secretary.
          [(2) Capital expenses.--(A) A local educational 
        agency may apply to the State educational agency for 
        payments for capital expenses consistent with this 
        subsection.
          [(B) State educational agencies shall distribute such 
        funds under this subsection to local educational 
        agencies based on the degree of need set forth in their 
        respective applications for assistance under this 
        subsection.
          [(3) Uses of funds.--Any funds appropriated to carry 
        out this subsection shall be used only for capital 
        expenses incurred to provide equitable services for 
        private school children under this section.
          [(4) Definition.--For the purpose of this subsection, 
        the term ``capital expenses'' means--
                  [(A) 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;
                  [(B) insurance and maintenance costs;
                  [(C) transportation; and
                  [(D) other comparable goods and services.

[SEC. 1120A. FISCAL REQUIREMENTS.

  [(a) Maintenance of Effort.--A local educational agency may 
receive funds under this part for any fiscal year only if the 
State educational agency finds that the local educational 
agency has maintained its fiscal effort in accordance with 
section 14501 of this Act.
  [(b) Federal Funds To Supplement, Not Supplant, Non-Federal 
Funds.--
          [(1) In general.--A State or local educational agency 
        shall use funds received under this part only to 
        supplement the amount of 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) 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) 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 local funds to provide services 
        that, taken as a whole, are substantially comparable in 
        each school.
          [(C) 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) 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) For the purpose of subparagraph (A), 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) 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) bilingual education for children of 
                limited English proficiency; and
                  [(B) 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 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.

  [(a) In General.--Each local educational agency receiving 
assistance under this part shall carry out the activities 
described in subsection (b) to the extent feasible and 
appropriate to the circumstances, including the extent to which 
such local educational agency is able to secure the cooperation 
of parents and local Head Start agencies and, if feasible, 
other early childhood development programs.
  [(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 early childhood development programs, serving children 
who will attend the schools of such 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, other early childhood 
        development programs;
          [(2) establishing channels of communication between 
        school staff and their counterparts in such Head Start 
        agencies (including teachers, social workers, and 
        health staff) or other early childhood development 
        programs, 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, to discuss the 
        developmental and other needs of individual children; 
        and
          [(4) organizing and participating in joint transition 
        related training of school staff, Head Start staff, 
        and, where appropriate, other early childhood staff.
  [(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 Amendments of 1994.

                        [Subpart 2--Allocations

[SEC. 1121. 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), 
the Secretary shall reserve a total of 1 percent to provide 
assistance to--
          [(1) the outlying areas on the basis of their 
        respective need for such assistance according to such 
        criteria as the Secretary determines will best carry 
        out the purpose of this part; and
          [(2) the Secretary of the Interior in the amount 
        necessary to make payments pursuant to subsection (c).
  [(b) Assistance to the Outlying Areas.--
          [(1) In general.--From amounts made available under 
        subsection (a) in each fiscal year the Secretary shall 
        make grants to local educational agencies in the 
        outlying areas (other than the outlying areas assisted 
        under paragraph (3)).
          [(2) Competitive grants.--(A) The Secretary shall 
        reserve $5,000,000 from the amounts made available 
        under subsection (a) in each fiscal year to award 
        grants on a competitive basis, to local educational 
        agencies in the Federated States of Micronesia, the 
        Republic of the Marshall Islands, and the Republic of 
        Palau. The Secretary shall award such grants according 
        to the recommendations of the Pacific Region 
        Educational Laboratory which shall conduct a 
        competition for such grants.
          [(B) Except as provided in subparagraph (D), grant 
        funds awarded under this part only may be used for 
        programs described in this Act, including teacher 
        training, curriculum development, instructional 
        materials, or general school improvement and reform.
          [(C) Grant funds awarded under this paragraph only 
        may be used to provide direct educational services.
          [(D) The Secretary may provide 5 percent of the 
        amount made available for grants under this paragraph 
        to pay the administrative costs of the Pacific Region 
        Educational Laboratory regarding activities assisted 
        under this paragraph.
  [(c) 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 and secondary schools for Indian 
                children operated or supported by the 
                Department of the Interior; and
                  [(B) out-of-State Indian children in 
                elementary 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, upon 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 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.

  [(a) In General.--
          [(1) Fiscal year 1995.--For fiscal year 1995, 
        appropriations for this part shall be allocated 
        according to the provisions of sections 1005, except 
        subsection (a)(3), and 1006, part A of chapter 1 of 
        title I, Elementary and Secondary Education Act of 
        1965, as in effect on September 30, 1994, except that 
        the State minimum for section 1005 shall be the lesser 
        of 0.25 percent of total appropriations or the average 
        of 0.25 percent of total appropriations and 150 percent 
        of the national average grant per child counted for 
        grants under section 1005 multiplied by the State's 
        number of children counted for such grants, and for 
        grants under section 1006, the State minimum shall be 
        the lesser of--
                  [(A) 0.25 percent of total appropriations; 
                and
                  [(B) the average of--
                          [(i) 0.25 percent of total 
                        appropriations; and
                          [(ii) the greater of 150 percent of 
                        the national average grant per child 
                        counted for grants under such section 
                        1006 multiplied by the State total 
                        number of such children, or $340,000.
          [(2) Succeeding fiscal years.--For fiscal years 1996 
        through 1999, an amount of the appropriations for this 
        part equal to the appropriation for fiscal year 1995 
        for section 1005, shall be allocated in accordance with 
        section 1124, and an amount equal to the appropriation 
        for fiscal year 1995 for section 1006 shall be 
        allocated in accordance with section 1124A. Any 
        additional appropriations under section 1002(a) for any 
        fiscal year, after application of the preceding 
        sentence, shall be allocated in accordance with section 
        1125.
  [(b) Adjustments Where Necessitated by Appropriations.--
          [(1) In general.--If the sums available under this 
        part 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) In general.--For fiscal year 1995, 
        notwithstanding subsection (b) and without regard to 
        amounts available for delinquent children under subpart 
        2 of part D, the amount made available to each local 
        educational agency under such section 1005 shall be at 
        least 85 percent of the amount such local educational 
        agency received for the preceding year under such 
        section 1005.
          [(2) Fiscal year 1996.--Notwithstanding subsection 
        (b) and without regard to amounts available for 
        delinquent children under subpart 2 of part D, for 
        fiscal year 1996 the total amount made available to 
        each local educational agency under each of sections 
        1124 and 1124A for any fiscal year shall be at least 
        100 percent of the total amount such local educational 
        agency was allocated under such sections (or their 
        predecessor authorities) for the preceding fiscal year.
          [(3) Fiscal years 1997-1999.--For fiscal years 1997 
        through 1999, notwithstanding subsection (b) and 
        without regard to amounts available for delinquent 
        children under subpart 2 of part D, the amount made 
        available to each local educational agency under each 
        of sections 1124 and 1125 shall be at least 95 percent 
        of the previous year's amount if the number of children 
        counted for grants under section 1124 is at least 30 
        percent of the total number of children aged 5 to 17 
        years, inclusive, in the local educational agency, 90 
        percent of the previous year amount if this percentage 
        is between 15 percent and 30 percent, and 85 percent if 
        this percentage is below 15 percent. For fiscal years 
        1997 and 1998, in calculating grants on the basis of 
        population data for counties, the Secretary shall apply 
        the hold-homeless percentages in the preceding sentence 
        to counties. For fiscal years 1996 through 1998, if the 
        Secretary's allocation for a county is not sufficient 
        to meet the hold-harmless requirements of this 
        paragraph for every local educational agency within 
        that county, then 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 paragraph.
  [(d) Ratable Reductions.--
          [(1) In general.--If the sums made available under 
        this part for any fiscal year are insufficient to pay 
        the full amounts that 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 reduced.
  [(e) Definition.--For the purpose of this section and 
sections 1124 and 1125, 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.

  [(a) Amount of Grants.--
          [(1) Grants for local educational agencies and puerto 
        rico.--The grant which a local educational agency in a 
        State is eligible to receive under this subpart for a 
        fiscal year shall (except as provided in section 1126), 
        be determined by multiplying the number of children 
        counted under subsection (c) by 40 percent of the 
        amount determined under the next sentence. The amount 
        determined under this sentence shall be the average per 
        pupil expenditure in the State except that--
                  [(A) if the average per pupil expenditure in 
                the State is less than 80 percent of the 
                average per pupil expenditure in the United 
                States, such amount shall be 80 percent of the 
                average per pupil expenditure in the United 
                States; or
                  [(B) if the average per pupil expenditure in 
                the State is more than 120 percent of the 
                average per pupil expenditure in the United 
                States, such amount shall be 120 percent of the 
                average per pupil expenditure in the United 
                States.
          [(2) Basis for calculating grants.--For fiscal years 
        1995 through 1998, grants shall be calculated by the 
        Secretary 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 published by the Secretary. In any State in 
        which a large number of local educational agencies 
        overlap county boundaries, the State educational agency 
        may apply to the Secretary for authority during any 
        particular fiscal year to make the allocations under 
        this part (other than section 1124A) directly to local 
        educational agencies without regard to the counties. If 
        the Secretary approves an application of a State 
        educational agency for a particular year under this 
        subparagraph, the State educational agency shall 
        provide assurances that--
                  [(A) such allocations will be made using 
                precisely the same factors for determining a 
                grant as are used under this part;
                  [(B) such allocations will be made using 
                alternative data approved by the Secretary that 
                the State determines best reflects the 
                distribution of children in poor families and 
                is adjusted to be equivalent in proportion to 
                the number of children determined in accordance 
                with subsection (c); or
                  [(C) such allocations will be made using data 
                that the State educational agency submits to 
                the Secretary for approval that more accurately 
                target poverty.
        In addition, the State educational agency shall provide 
        assurances that a procedure will be established through 
        which local educational agencies dissatisfied with the 
        determinations made by the State educational agency may 
        appeal directly to the Secretary for a final 
        determination. Beginning in fiscal year 1999, grants 
        shall be calculated by the Secretary on the basis of 
        population data compiled for local educational 
        agencies, unless the Secretary and the Secretary of 
        Commerce determine that use of the updated population 
        data would be inappropriate or unreliable taking into 
        consideration the recommendations of the study to be 
        conducted by the National Academy of Sciences. If the 
        Secretary and the Secretary of Commerce determine that 
        some or all of the data referred to in this paragraph 
        are inappropriate or unreliable, the Secretaries shall 
        jointly issue a report setting forth their reasons in 
        detail. In years when grants are calculated by the 
        Secretary on the basis of local educational agency 
        data, for each local educational agency serving an area 
        with a total population of at least 20,000 persons, the 
        grant under this section shall be the amount determined 
        by the Secretary. For local educational agencies 
        serving areas with total populations of fewer than 
        20,000 persons, the State educational agency may 
        either--
                  [(i) distribute to such local educational 
                agencies grants under this section equal to the 
                amounts determined by the Secretary; and
                  [(ii) use an alternative method, approved by 
                the Secretary, to distribute the share of the 
                State's total grants under this section that is 
                based on local educational agencies with total 
                populations of fewer than 20,000 persons. Such 
                an alternative method of distributing grants 
                under this section among a State's local 
                educational agencies serving areas with total 
                populations of fewer than 20,000 persons shall 
                be based upon population data that the State 
                educational agency determines best reflect the 
                current distribution of children in poor 
                families among the State's local educational 
                agencies serving areas with total populations 
                of fewer than 20,000 persons. If a local 
                educational agency serving an area with total 
                population of less than 20,000 persons is 
                dissatisfied with the determination of its 
                grant by the State education agency, then such 
                local educational agency may appeal this 
                determination to the Secretary. The Secretary 
                must respond to this appeal within 45 days of 
                receipt.
          [(3) Puerto rico.--For each fiscal year, the 
        Secretary shall determine 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. The grant which 
        the Commonwealth of Puerto Rico shall be eligible to 
        receive under this section for a fiscal year shall be 
        the amount arrived at by multiplying the number of 
        children counted under subsection (c) for the 
        Commonwealth of Puerto Rico by the product of--
                  [(A) the percentage determined under the 
                preceding sentence; and
                  [(B) 32 percent of the average per pupil 
                expenditure in the United States.
          [(4) Definition.--For purposes of this subsection, 
        the term ``State'' does not include Guam, American 
        Samoa, the Virgin Islands, the Northern Mariana 
        Islands, and Palau.
  [(b) Minimum Number of Children To Qualify.--Subject to the 
succeeding sentence, a local educational agency shall be 
eligible for a basic grant for a fiscal year under this subpart 
only if the number of children counted under subsection (c) in 
the school district of such local educational agency is at 
least 10. Beginning in fiscal year 1996, no local educational 
agency shall be eligible for a grant under this section if the 
number of children counted for grants under this section is 
equal to 2 percent or less of the total school age population 
in the local educational agency. For fiscal years 1996 through 
1998, grants not made as a result of applying the preceding 
sentence 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.
  [(c) Children To Be Counted.--
          [(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 aged 5 to 17, 
                inclusive, in the school district of such 
                agency from families above the poverty level as 
                determined under paragraph (5); and
                  [(C) the number of children 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.
          [(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. For 
        fiscal year 1999 and beyond, 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.--In fiscal year 1997 and 
        every 2 years thereafter, 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 use of the 
        updated population data would be inappropriate or 
        unreliable, taking into consideration the 
        recommendations of the study to be conducted by the 
        National Academy of Sciences. If the Secretary and the 
        Secretary of Commerce determine that some or all of the 
        data referred to in this paragraph are inappropriate or 
        unreliable, they shall jointly issue a report setting 
        forth their reasons in detail. In determining the 
        families which are below the poverty level, the 
        Secretary shall utilize the criteria of poverty used by 
        the Bureau of the Census in compiling the most recent 
        decennial census, 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.
          [(4) Study.--(A) The Secretary of Education shall, 
        within 30 days after the date of enactment of the 
        Improving America's School's Act of 1994, contract with 
        the National Academy of Sciences (hereafter in this 
        section referred to as the ``Academy'') to study the 
        program to produce intercensal poverty data for small 
        geographic areas and certain age cohorts being 
        developed by the Bureau of the Census.
          [(B) In conducting its study, the Academy shall 
        consider such matters as--
                  [(i) the methodology used to produce and 
                publish intercensal poverty data, and possible 
                alternative methods to improve the usefulness 
                of the data for Federal program purposes;
                  [(ii) the availability of alternative 
                indicators of poverty for small geographic 
                areas, against which the poverty data produced 
                and published by the Bureau of the Census could 
                be compared;
                  [(iii) the reliability of the poverty data 
                produced and published by the Bureau of the 
                Census, particularly for less populous 
                geographic areas;
                  [(iv) the reliability of intercensal poverty 
                data produced and published by the Bureau of 
                the Census, as compared over time to similar 
                data produced by the Bureau of the Census 
                during the most recent decennial census; and
                  [(v) the usefulness of poverty data produced 
                and published by the Bureau of the Census for 
                Federal programs that allocate funds to State 
                and sub-State areas based, in whole or in part, 
                on such data.
          [(C) The Academy shall submit to the Secretary and 
        the Secretary of Commerce, as well as to the Committee 
        on Education and Labor and the Committee on Post Office 
        and Civil Service of the House of Representatives and 
        the Committee on Labor and Human Resources and the 
        Committee on Governmental Affairs of the Senate--
                  [(i) not later than 18 months after the date 
                on which a contract is entered into under 
                subsection (a), and not later than every 18 
                months thereafter, such interim reports on the 
                Academy's activities under this Act that the 
                Academy deems appropriate, including a detailed 
                statement of the Academy's findings and 
                conclusions with respect to any poverty data 
                which the Bureau of the Census publishes and 
                produces, within 90 days of such publication; 
                and
                  [(ii) not later than December 31, 1998, a 
                final report which shall include a more 
                detailed statement of the Academy's findings 
                and conclusions with respect to the use of any 
                intercensal poverty data produced and published 
                by the Bureau of the Census as the basis for 
                allocating Federal funds under this Act.
          [(D) Of the funds appropriated under section 1002(f) 
        of this Act, the Secretary shall use such sums as are 
        necessary in each of fiscal years 1995, 1996, 1997, 
        1998, and 1999 to carry out the provisions of this 
        paragraph.
          [(5) Other children to be counted.--For purposes 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 utilize the criteria 
        of poverty used by the Bureau of the Census in 
        compiling the most recent decennial census for a family 
        of 4 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. 
        The Secretary shall determine the number of such 
        children and the number of children of such ages 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. 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.
          [(6) 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 subparagraph (A) of this paragraph) 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. For purposes of this section, the 
        Secretary shall consider all children who are in 
        correctional institutions to be living in institutions 
        for delinquent children.
  [(d) State Minimum.--Notwithstanding subsection (b)(1) or (d) 
of 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 total grants under this section; 
        or
          [(2) the average of--
                  [(A) one-quarter of 1 percent of the total 
                amount available for such fiscal year under 
                this section; 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.  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, in a 
        State other than Guam, American Samoa, the Virgin 
        Islands, the Commonwealth of the Northern Mariana 
        Islands, and Palau, which is eligible for a grant under 
        this part for any fiscal year shall be eligible for an 
        additional grant under this section for that fiscal 
        year if--
                  [(i) the number of children counted under 
                section 1124(c) in the county (for fiscal years 
                1996 through 1998), or local educational agency 
                (for fiscal years beginning with 1999) for the 
                fiscal year exceeds 6,500; or
                  [(ii) the number of children counted under 
                section 1124(c) exceeds 15 percent of the total 
                number of children aged 5 to 17, inclusive, in 
                the county (for fiscal years 1996 through 
                1998), or local educational agency (for fiscal 
                years beginning with 1999) in that fiscal year.
          [(B) Notwithstanding such subsections (b)(1) and (d) 
        of section 1122, no State described in subparagraph (A) 
        shall receive less than the lesser of--
                  [(i) 0.25 percent of total grants; or
                  [(ii) the average of--
                          [(I) one-quarter of 1 percent of the 
                        sums available to carry out this 
                        section for such fiscal year; 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) Special rule.--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 quotient resulting from the division 
                of the amount determined for those agencies 
                under section 1124(a)(1) for the fiscal year 
                for which the determination is being made 
                divided by the total number of children counted 
                under section 1124(c) for that agency for 
                fiscal year.
          [(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) Suballocation.--For fiscal years 1996 through 
        1998, county amounts shall be suballocated to local 
        educational agencies meeting the criteria of paragraph 
        (1)(A) by State educational agencies, in accordance 
        with regulations published by the Secretary. For fiscal 
        years 1995 through 1998, grants shall be calculated by 
        the Secretary on the basis of the number of children 
        counted under section 1124(c) for counties, and State 
        educational agencies shall suballocate county amounts 
        to local educational agencies, in accordance with 
        regulations published by the Secretary. In any State in 
        which a large number of local educational agencies 
        overlap county boundaries, the State educational agency 
        may apply to the Secretary for authority during any 
        particular fiscal year to make the allocations under 
        this part (other than this section) directly to local 
        educational agencies without regard to the counties. If 
        the Secretary approves an application of a State 
        educational agency for a particular year under this 
        paragraph, the State educational agency shall provide 
        assurances that--
                  [(A) such allocations will be made using 
                precisely the same factors for determining a 
                grant as are used under this part;
                  [(B) such allocations will be made using 
                alternative data approved by the Secretary that 
                the State determines best reflects the 
                distribution of children in poor families and 
                is adjusted to be equivalent in proportion to 
                the number of children determined in accordance 
                with section 1124(c); or
                  [(C) such allocations will be made using data 
                that the State educational agency submits to 
                the Secretary for approval that more accurately 
                target poverty.
        In addition, the State educational agency shall provide 
        assurances that a procedure will be established through 
        which local educational agencies dissatisfied with the 
        determinations made by the State educational agency may 
        appeal directly to the Secretary for a final 
        determination. A State may reserve not more than 2 
        percent of its allocations in fiscal years 1996 through 
        1998 under this section for the purpose of making 
        grants to local educational agencies that meet the 
        criteria of clause (i) or (ii) of paragraph (1)(A), but 
        are in ineligible counties. For fiscal years beginning 
        with 1999, for each local educational agency serving an 
        area with a total population of at least 20,000 
        persons, the grant under this section shall be the 
        amount determined by the Secretary. For local 
        educational agencies serving areas with total 
        populations of fewer than 20,000 persons, the State 
        educational agency may either (i) distribute to such 
        local educational agencies grants under this section 
        equal to the amounts determined by the Secretary; or 
        (ii) use an alternative method, approved by the 
        Secretary, to distribute the share of the State's total 
        grants under this section that is based on local 
        educational agencies with total populations of fewer 
        than 20,000 persons. Such an alternative method of 
        distributing grants under this section among a State's 
        local educational agencies serving areas with total 
        populations of fewer than 20,000 persons shall be based 
        upon population data that the State educational agency 
        determines best reflects the current distribution of 
        children in poor families among the State's local 
        educational agencies serving areas with total 
        populations of fewer than 20,000 persons and meeting 
        the eligibility criteria of paragraph (1)(A). If a 
        local educational agency serving an area with total 
        population of less than 20,000 persons is dissatisfied 
        with the determination of its grant by the State 
        educational agency, then such local educational agency 
        may appeal this determination to the Secretary. The 
        Secretary shall respond to this appeal within 45 days 
        of receipt. The Secretary shall consult with the 
        Secretary of Commerce regarding whether available data 
        on population for local educational agencies serving 
        areas with total populations of fewer than 20,000 
        persons are sufficiently reliable to be used to 
        determine final grants to such areas meeting the 
        eligibility criteria of paragraph (1)(A).
  [(b) Reservation of Funds.--Of the total amount of funds 
available for this section and sections 1124 and 1125, an 
amount equal to the appropriation for fiscal year 1995 for 
section 1006 of this Act (as such section was in effect on the 
day preceding the date of enactment of this Act) shall be 
available to carry out this section.
  [(c) Ratable Reduction Rule.--If the sums available under 
subsection (b) for any fiscal year for making payments under 
this section are not sufficient to pay in full the total 
amounts which all States are eligible to receive under 
subsection (a) for such fiscal year, the maximum amounts which 
all States are eligible to receive under subsection (a) for 
such fiscal year shall be ratably reduced. In the case that 
additional funds become available for making such payments for 
any fiscal year during which the preceding sentence is 
applicable, such reduced amounts shall be increased on the same 
basis as they were reduced.
  [(d) States Receiving Minimum Grants.--In States that receive 
the minimum grant under subsection (a)(1)(B), the State 
educational agency shall allocate such funds among the local 
educational agencies in each 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. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  [(a) Eligibility of Local Educational Agencies.--A local 
educational agency in a State is eligible to receive a targeted 
grant under this section for any fiscal year if the number of 
children in the local educational agency counted under 
subsection 1124(c), before application of the weighting factor 
described in subsection (c), is at least 10, and if the number 
of children counted for grants under section 1124 is at least 5 
percent of the total population aged 5 to 17 years, inclusive, 
in the local educational agency. 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 Puerto Rico.--
          [(1) In general.--The amount of the grant that a 
        local educational agency in a State or that the 
        District of Columbia 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 in the second sentence of 
                subparagraph 1124(a)(1)(A).
          [(2) Puerto rico.--For each fiscal year, the amount 
        of the grant for which the Commonwealth of Puerto Rico 
        is eligible under this section shall be equal to the 
        number of children counted under subsection (c) for 
        Puerto Rico, multiplied by the amount determined in 
        subparagraph 1124(a)(3).
  [(c) Weighted Child Count.--
          [(1) Fiscal years 1966-1998.--
                  [(A) In general.--The weighted child count 
                used to determine a county's allocation under 
                this section is the larger of the two amounts 
                determined under clause (i) or (ii), as 
                follows:
                          [(i) By percentage of children.--This 
                        amount is determined by adding--
                                  [(I) the number of children 
                                determined under section 
                                1124(c) for that county 
                                constituting up to 12.20 
                                percent, inclusive, of the 
                                county's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                  [(II) the number of such 
                                children constituting more than 
                                12.20 percent, but not more 
                                than 17.70 percent, of such 
                                population, multiplied by 1.75;
                                  [(III) the number of such 
                                children constituting more than 
                                17.70 percent, but not more 
                                than 22.80 percent, of such 
                                population, multiplied by 2.5;
                                  [(IV) the number of such 
                                children constituting more than 
                                22.80 percent, but not more 
                                than 29.70 percent, of such 
                                population, multiplied by 3.25; 
                                and
                                  [(V) the number of such 
                                children constituting more than 
                                29.70 percent of such 
                                population, multiplied by 4.0.
                          [(ii) By number of children.--This 
                        amount is determined by adding--
                                  [(I) the number of children 
                                determined under section 
                                1124(c) constituting up to 
                                1,917, inclusive, of the 
                                county's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                  [(II) the number of such 
                                children between 1,918 and 
                                5,938, inclusive, in such 
                                population, multiplied by 1.5;
                                  [(III) the number of such 
                                children between 5,939 and 
                                20,199, inclusive, in such 
                                population, multiplied by 2.0;
                                  [(IV) the number of such 
                                children between 20,200 and 
                                77,999, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                  [(V) the number of such 
                                children in excess of 77,999 in 
                                such population, multiplied by 
                                3.0.
                  [(B) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for 
                Puerto Rico under this paragraph shall not be 
                greater than the total number of children 
                counted under subsection 1124(c) multiplied by 
                1.72.
          [(2) Fiscal years after 1999.--
                  [(A) In general.--For each fiscal year 
                beginning with fiscal year 1999 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 (i) and (ii), as 
                follows:
                          [(i) By percentage of children.--This 
                        amount is determined by adding--
                                  [(I) the number of children 
                                determined under section 
                                1124(c) for that local 
                                educational agency constituting 
                                up to 14.265 percent, 
                                inclusive, of the agency's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  [(II) the number of such 
                                children constituting more than 
                                14.265 percent, but not more 
                                than 21.553 percent, of such 
                                population, multiplied by 1.75;
                                  [(III) the number of such 
                                children constituting more than 
                                21.553 percent, but not more 
                                than 29.223 percent, of such 
                                population, multiplied by 2.5;
                                  [(IV) the number of such 
                                children constituting more than 
                                29.223 percent, but not more 
                                than 36.538 percent, of such 
                                population, multiplied by 3.25; 
                                and
                                  [(V) the number of such 
                                children constituting more than 
                                36.538 percent of such 
                                population, multiplied by 4.0.
                          [(ii) By number of children.--This 
                        amount is determined by adding--
                                  [(I) the number of children 
                                determined under section 
                                1124(c) constituting up to 575, 
                                inclusive, of the agency's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  [(II) the number of such 
                                children between 576 and 1,870, 
                                inclusive, in such population, 
                                multiplied by 1.5;
                                  [(III) the number of such 
                                children between 1,871 and 
                                6,910, inclusive, in such 
                                population, multiplied by 2.0;
                                  [(IV) the number of such 
                                children between 6,911 and 
                                42,000, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                  [(V) the number of such 
                                children in excess of 42,000 in 
                                such population, multiplied by 
                                3.0.
                  [(B) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for 
                Puerto Rico under this paragraph shall not be 
                greater than the total number of children 
                counted under section 1124(c) multiplied by 
                1.72.
  [(d) Local Educational Agency Allocations.--For fiscal years 
1995 through 1998, grants shall be calculated by the Secretary 
on the basis of the number of children counted under section 
1124 for counties, and State educational agencies shall 
suballocate county amounts to local educational agencies, in 
accordance with regulations published by the Secretary. In any 
State in which a large number of local educational agencies 
overlap county boundaries, the State educational agency may 
apply to the Secretary for authority during any particular 
fiscal year to make the allocations under this part (other than 
section 1124A) directly to local educational agencies without 
regard to the counties. If the Secretary approves an 
application of a State educational agency for a particular year 
under this subparagraph, the State educational agency shall 
provide assurances that--
          [(1) such allocations will be made using precisely 
        the same factors for determining a grant as are used 
        under this part;
          [(2) such allocations will be made using alternative 
        data approved by the Secretary that the State 
        determines best reflects the distribution of children 
        in poor families and is adjusted to be equivalent in 
        proportion to the number of children determined in 
        accordance with section 1124(c); or
          [(3) such allocations will be made using data that 
        the State educational agency submits to the Secretary 
        for approval that more accurately target poverty.
In addition, the State educational agency shall provide 
assurances that a procedure will be established through which 
local educational agencies dissatisfied with the determinations 
made by the State educational agency may appeal directly to the 
Secretary for a final determination. For fiscal years beginning 
in 1999, for each local educational agency serving an area with 
a total population of at least 20,000 persons, the grant under 
this section shall be the amount determined by the Secretary. 
For local educational agencies serving areas with total 
populations of fewer than 20,000 persons, the State educational 
agency may either (1) distribute to such local educational 
agencies grants under this section equal to the amounts 
determined by the Secretary; or (2) use an alternative method, 
approved by the Secretary, to distribute the share of the 
State's total grants under this section that is based on local 
educational agencies with total populations of fewer than 
20,000 persons. Such an alternative method of distributing 
grants under this section among a State's local educational 
agencies serving areas with total populations of fewer than 
20,000 persons shall be based upon population data that the 
State educational agency determines best reflects the current 
distribution of children in poor families among the State's 
local educational agencies serving areas with total populations 
of fewer than 20,000 persons. If a local educational agency 
serving an area with total populations of less than 20,000 
persons is dissatisfied with the determination of its grant by 
the State educational agency, then the local educational agency 
may appeal this determination to the Secretary. The Secretary 
shall respond to this appeal within 45 days of receipt.
  [(e) State Minimum.--Notwithstanding any other provision of 
this section or subsection (b)(1) or (d) of 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) 0.25 percent of total appropriations; or
          [(2) the average of--
                  [(A) one-quarter of 1 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.

[SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.

  [(a) Grants.--The Secretary is authorized to make grants to 
States from the sums appropriated pursuant to subsection (e) to 
carry out the purposes of this part.
  [(b) Distribution Based Upon Fiscal Effort and Equity.--
          [(1) In general.--Funds appropriated pursuant to 
        subsection (e) shall be allotted to each State based 
        upon the number of children aged 5 to 17, inclusive, of 
        such State multiplied by the product of--
                  [(A) such State's effort factor described in 
                paragraph (2); multiplied by
                  [(B) 1.30 minus such State's equity factor 
                described in paragraph (3),
        except that for each fiscal year no State shall receive 
        less than one-quarter of 1 percent of the total amount 
        appropriated pursuant to subsection (e) for such fiscal 
        year.
          [(2) Effort factor.--(A) 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 .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 three-year 
        average per-pupil expenditure in the State multiplied 
        by the three-year average per capita income in the 
        United States and the denominator of which is the 
        product of the three-year average per capita income in 
        such State multiplied by the three-year average per-
        pupil expenditure in the United States.
          [(B) 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)(i) 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)(I) 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), (IV), and (V).
          [(II) 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 in the local educational 
        agency.
          [(III) In determining the number of pupils under this 
        paragraph in each local educational agency and each 
        State, the Secretary shall multiply the number of 
        children from low-income families by 1.4 under this 
        paragraph.
          [(IV) In computing coefficients of variation, the 
        Secretary shall include only those local educational 
        agencies with an enrollment of more than 200 students.
          [(V) The Secretary shall compute separate 
        coefficients of variation for elementary, secondary, 
        and unified local educational agencies and shall 
        combine such coefficients into a single weighted 
        average coefficient for the State by multiplying each 
        coefficient by the total enrollments of the local 
        educational agencies in each group, adding such 
        products, and dividing such sum by the total 
        enrollments of the local educational agencies in the 
        State.
          [(B) The equity factor for a State that meets the 
        disparity standard described in section 222.63 of title 
        34, Code of Federal Regulations (as such section was in 
        effect on the day preceding the date of enactment of 
        this Act) or a State with only one local educational 
        agency shall be not greater than .10.
          [(C) The Secretary may revise each State's equity 
        factor as necessary based on the advice of independent 
        education finance scholars to reflect other need-based 
        costs of local educational agencies in addition to low-
        income student enrollment, such as differing geographic 
        costs, costs associated with students with 
        disabilities, children with limited-English proficiency 
        or other meaningful educational needs, which deserve 
        additional support. In addition and also with the 
        advice of independent education finance scholars, the 
        Secretary may revise each State's equity factor to 
        incorporate other valid and accepted methods to achieve 
        adequacy of educational opportunity that may not be 
        reflected in a coefficient of variation method.
  [(c) Use of Funds.--All funds awarded to each State under 
this section shall be allocated to local educational agencies 
and schools on a basis consistent with the distribution of 
other funds to such agencies and schools under sections 1124, 
1124A, and 1125 to carry out activities under this part.
  [(d) 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 part 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 the 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 one 
        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.
  [(e) Authorization of Appropriations.--For the purpose of 
making grants under this section, there are authorized to be 
appropriated $200,000,000 for fiscal year 1996 and such sums as 
may be necessary for each of the three succeeding fiscal years.

[SEC. 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 
        subparagraph 1124(c)(1)(C), 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, and 1125 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, and 1125 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, and 1125 is more than such 
local 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. 1127. CARRYOVER AND WAIVER.

  [(a) Limitation on Carryover.--Notwithstanding section 421 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.
  [(b) Waiver.--A State educational agency may, once every 
three 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.]

SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

  (a) System for Support.--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 in those agencies and schools to 
meet the State's academic content standards and student 
academic achievement standards.
  (b) Priorities.--In carrying out this section, a State 
shall--
          (1) first, provide support and assistance to local 
        educational agencies subject to corrective action under 
        section 1116 and assist schools, in accordance with 
        section 1116(b)(10), for which a local educational 
        agency has failed to carry out its responsibilities 
        under paragraphs (6) and (7) of section 1116(b);
          (2) second, provide support and assistance to other 
        local educational agencies identified as in need of 
        improvement under section 1116(b); and
          (3) 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.
  (c) Approaches.--In order to achieve the purpose described in 
subsection (a), each such system shall provide technical 
assistance and support through such approaches as--
          (1) school support teams, composed of individuals who 
        are knowledgeable about scientifically based research 
        and practice on teaching and learning, particularly 
        about strategies for improving educational results for 
        low-achieving children; and
          (2) the designation and use of ``Distinguished 
        Educators'', chosen from schools served under this part 
        that have been especially successful in improving 
        academic achievement.
  (d) Funds.--Each State--
          (1) shall use funds reserved under section 1003(a); 
        and
          (2) may use State administrative funds authorized 
        under section 1002(i) for such purpose to establish a 
        Statewide system of support.
  (e) Alternatives.--The State may devise additional approaches 
to providing the assistance described in paragraphs (1) and (2) 
of subsection (c), 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 and the State may 
seek approval from the Secretary to use funds made available 
under section 1002(j) for such approaches as part of the State 
plan.

SEC. 1117A. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.

  (a) Establishment of Academic Achievement Awards Program.--
          (1) In general.--Each State receiving a grant under 
        this part may establish a program for making academic 
        achievement awards to recognize and financially reward 
        schools served under this part that have--
                  (A) significantly closed the achievement gap 
                between the groups of students defined in 
                section 1111(b)(2); or
                  (B) exceeded their adequate yearly progress 
                goals, consistent with section 1111(b)(2), for 
                2 or more consecutive years.
          (2) 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 whose students consistently make 
        significant gains in academic achievement in the areas 
        in which the teacher provides instruction.
  (b) Funding.--
          (1) Reservation of funds by state.--For the purpose 
        of carrying out this section, each State receiving a 
        grant under this part may reserve, from the amount (if 
        any) by which the funds received by the State under 
        this part for a fiscal year exceed the amount received 
        by the State under this part for the preceding fiscal 
        year, not more than 30 percent of such excess amount.
          (2) Use within 3 years.--Notwithstanding any other 
        provision of law, the amount reserved under paragraph 
        (1) by a State for each fiscal year shall remain 
        available to the State until expended for a period not 
        exceeding 3 years.
          (3) Special allocation rule for schools in high-
        poverty areas.--
                  (A) In general.--Each State receiving a grant 
                under this part shall distribute at least 75 
                percent of the amount reserved under paragraph 
                (1) for each fiscal year to schools described 
                in subparagraph (B), or to teachers teaching in 
                such schools.
                  (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.

  (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 the provisions of this section. 
        Such activities 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 upon with, and distribute to, 
        parents of participating children a written parent 
        involvement policy that is incorporated into the local 
        educational agency's plan developed under section 1112, 
        establishes the expectations for parent involvement, 
        and describes how the local educational 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;
                  (C) build the schools' and parents' capacity 
                for strong parent 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 Head Start, Early Reading 
                First, Reading First, Even Start, the Parents 
                as Teachers Program, the 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 quality of the 
                schools served under this part; 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 this part to 
                carry out this section, including family 
                literacy and parenting skills, except that this 
                paragraph shall not apply if 1 percent of such 
                agency's allocation under this part (other than 
                funds allocated under section 1002(g) 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 upon by such parents, that 
        shall describe the means for carrying out the 
        requirements of subsections (c) through (f). Parents 
        shall be notified of the policy in a format, and to the 
        extent practicable in a language they can understand. 
        Such policy shall be 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 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 participation under this part and to 
        explain this part, its requirements, and their right 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 school parental 
        involvement policy and the joint development of the 
        schoolwide program plan under section 1114(c)(2) and 
        (c)(3), except that if a school has in place a process 
        for involving parents in the joint planning and design 
        of its 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
          (5) if the schoolwide program plan under section 
        1114(c)(2) and (c)(3) 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 Performance.--As 
a component of the school-level parental involvement policy 
developed under subsection (b), each school served under this 
part shall agree with parents of children served under this 
part regarding how parents, the entire school staff, and 
students will share the responsibility for improved student 
achievement and the means by which the school and parents will 
build and develop a partnership to help children achieve the 
State's high academic standards.
  (e) Building Capacity for Involvement.--To ensure effective 
involvement of parents and to support a partnership among the 
school, parents, and the community to improve student 
achievement, each school and local educational agency--
          (1) shall provide assistance to participating parents 
        in such areas as understanding 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 performance of their children;
          (2) shall provide materials and training to help 
        parents to work with their children to improve their 
        children's achievement;
          (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 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 programs and 
        other programs, to the extent feasible and appropriate;
          (5) shall ensure, to the extent possible, that 
        information related to school and parent programs, 
        meetings, and other activities is sent to the parents 
        of participating children in the language used by such 
        parents;
          (6) may involve parents in the development of 
        training for teachers, principals, and other educators 
        to improve the effectiveness of such training in 
        improving instruction and services to the children of 
        such parents in a format, and to the extent 
        practicable, in a language the parent can understand;
          (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 activities;
          (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;
          (10) may arrange for teachers or other educators, who 
        work directly with participating children, to conduct 
        in-home conferences with parents who are unable to 
        attend such conferences at school;
          (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 
        part;
          (13) may develop appropriate roles for community-
        based organizations and businesses in parent 
        involvement activities; and
          (14) may arrange for teachers or other educators, who 
        work directly with participating children, to conduct 
        in-home conferences with parents who are unable to 
        attend such conferences at school.
  (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 or 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.

SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

  (a) Teachers.--
          (1) In general.--Each local educational agency 
        receiving assistance under this part shall ensure that 
        all teachers hired on or after the effective date of 
        the No Child Left Behind Act of 2001 and teaching in a 
        program supported with funds under this part are fully 
        qualified.
          (2) Plan.--Each State receiving assistance under this 
        part shall develop and submit to the Secretary a plan 
        to ensure that all teachers teaching within the State 
        are fully qualified not later than December 31, 2005. 
        Such plan shall include an assurance that the State 
        will require each local educational agency and school 
        receiving funds under this part publicly to report 
        their annual progress on the agency's and the school's 
        performance in increasing the percentage of classes in 
        core academic areas taught by fully qualified teachers.
  (b) New Paraprofessionals.--
          (1) In general.--Each local educational agency 
        receiving assistance under this part shall ensure that 
        all paraprofessionals hired 1 year or more after the 
        effective date of the No Child Left Behind Act of 2001 
        and working in a program supported with funds under 
        this part shall--
                  (A) have completed at least 2 years of study 
                at an institution of higher education;
                  (B) have obtained an associate's (or higher) 
                degree; or
                  (C) have met a rigorous standard of quality 
                that demonstrates, through a formal academic 
                assessment--
                          (i) knowledge of, and the ability to 
                        assist in instructing reading, writing, 
                        and math; or
                          (ii) knowledge of, and the ability to 
                        assist in instructing reading 
                        readiness, writing readiness, and math 
                        readiness, as appropriate.
          (2) Clarification.--For purposes of paragraph (1)(C), 
        the receipt of a high school diploma (or its recognized 
        equivalent) shall be necessary but not by itself 
        sufficient to satisfy the requirements of such 
        paragraph.
  (c) Existing Paraprofessionals.--Each local educational 
agency receiving assistance under this part shall ensure that 
all paraprofessionals hired before the date that is 1 year 
after the effective date of the No Child Left Behind Act of 
2001 and working in a program supported with funds under this 
part shall, not later than 3 years after such effective date, 
satisfy the requirements of subsection (b).
  (d) Exceptions for Translation and Parental Involvement 
Activities.--Subsections (b) and (c) 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.
  (e) 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 
paraprofessional's hiring date, possess a high school diploma 
or its recognized equivalent.
  (f) 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 only 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.
          (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 fully 
                qualified teacher; and
                  (B) may not provide instructional services to 
                students in the area of reading, writing, or 
                math unless the paraprofessional has 
                demonstrated, through a State or local academic 
                assessment, the ability to effectively carry 
                out reading, writing, or math instruction.
  (g) Use of Funds.--
          (1) Professional development.--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.
          (2) Limitation on use of funds for 
        paraprofessionals.--
                  (A) In general.--Beginning on and after the 
                effective date of the No Child Left Behind Act 
                of 2001, a local educational agency may not use 
                funds received under this part to fund any 
                paraprofessional hired after such date unless 
                the hiring is to fill a vacancy created by the 
                departure of another paraprofessional funded 
                under this part and such new paraprofessional 
                satisfies the requirements of subsection (b), 
                except as provided in subsection (d).
                  (B) Exception.--Subparagraph (A) shall not 
                apply for a fiscal year to a local educational 
                agency that can demonstrate to the State that 
                all teachers under the jurisdiction of the 
                agency are fully qualified.
  (h) 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 annually 
        attest 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 upon request.

SEC. 1119A. PROFESSIONAL DEVELOPMENT.

  (a) Purpose.--The purpose of this section is to assist each 
local educational agency receiving assistance under this part 
in increasing the academic achievement of children served under 
this part through improved teacher quality.
  (b) Professional Development Activities.--Professional 
development activities under this section shall--
          (1) 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) support the recruiting, hiring, and training of 
        fully qualified teachers, including teachers fully 
        qualified through State and local alternative routes;
          (3) advance teacher understanding of effective 
        instructional strategies based on scientifically based 
        research for improving student achievement, at a 
        minimum, in reading or language arts and mathematics;
          (4) be directly related to the curriculum and content 
        areas in which the teacher provides instruction, except 
        this requirement does not apply to activities that 
        instruct in methods of improving student behavior;
          (5) be designed to enhance the ability of a teacher 
        to understand and use the State's academic standards 
        for the subject area in which the teacher provides 
        instruction;
          (6) be tied to scientifically based research 
        demonstrating the effectiveness of such professional 
        development activities or programs in increasing 
        student achievement or substantially increasing the 
        knowledge and teaching skills of teachers;
          (7) be of sufficient intensity and duration (not to 
        include 1-day or short-term workshops and conferences) 
        to have a positive and lasting impact on the teacher's 
        performance in the classroom;
          (8) be developed with extensive participation of 
        teachers, principals, parents, and administrators of 
        schools to be served under this part;
          (9) be designed to give teachers of limited English 
        proficient children, other teachers, and instructional 
        staff the knowledge and skills to provide instruction 
        and appropriate language and academic support services 
        to such children, including the appropriate use of 
        curriculum and academic assessments;
          (10) to the extent appropriate, provide training for 
        teachers in the use of technology so that technology 
        and its applications are effectively used in the 
        classroom to improve teaching and learning in the 
        curriculum and academic content areas in which the 
        teachers provide instruction; and
          (11) as a whole, be regularly evaluated for their 
        impact on increased teacher effectiveness and improved 
        student achievement, with the findings of such 
        evaluations used to improve the quality of professional 
        development.
  (c) Additional Professional Development Activities.--Such 
professional development activities may include--
          (1) instruction in the use of data and academic 
        assessments to inform and instruct classroom practice;
          (2) instruction in ways that teachers, principals, 
        pupil services personnel, and school administrators may 
        work more effectively with parents;
          (3) the forming of partnerships with institutions of 
        higher education to establish school-based teacher 
        training programs that provide prospective teachers and 
        novice teachers with an opportunity to work under the 
        guidance of experienced teachers and college faculty;
          (4) the creation of career ladder programs for 
        paraprofessionals (assisting teachers under this part) 
        to obtain the education necessary for such 
        paraprofessionals to become licensed and certified 
        teachers; and
          (5) instruction in ways to teach special needs 
        children.
  (d) Program Participation.--Each local educational agency 
receiving assistance under this part may design professional 
development programs so that--
          (1) all school staff in schools participating in a 
        schoolwide program under section 1114 can participate 
        in professional development activities; and
          (2) all school staff in targeted assistance schools 
        may participate in professional development activities 
        if such participation will result in better addressing 
        the needs of students served under this part.
  (e) Parental Participation.--Parents may participate in 
professional development activities under this part if the 
school determines that parental participation is appropriate.
  (f) Consortia.--In carrying out such professional development 
programs, local educational agencies may provide services 
through consortia arrangements with other local educational 
agencies, educational service agencies or other local 
consortia, institutions of higher education, or other public or 
private institutions or organizations.
  (g) Consolidation of Funds.--Funds provided under this part 
that are used for professional development purposes may be 
consolidated with funds provided under title II of this Act and 
other sources.
  (h) Special Rule.--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(b)(3)(A)(iii).

SEC. 1120. 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 a local educational agency who are enrolled 
        in private elementary 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 these students 
        participate, on an equitable basis, in services and 
        activities developed pursuant to sections 1118 and 
        1119A.
          (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 shall 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 amount of funds 
                generated by low-income private school children 
                in each participating attendance area;
                  (F) the method or sources of data that are 
                used under subsection (a)(4) and section 
                1113(c)(2) to determine the number of children 
                from low-income families in participating 
                school attendance areas who attend private 
                schools; and
                  (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 
                contract services through potential third party 
                providers.
  If the local educational agency disagrees with the views of 
the private school officials on the provision of services, 
through a contract, the local educational agency shall 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.
          (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 its records and provide to the State 
        educational agency a written affirmation signed by 
        officials of each participating private school that the 
        consultation required by this section has occurred.
          (5) Compliance.--Private school officials shall have 
        the right to appeal to the State as to whether the 
        consultation provided for in this section was 
        meaningful and timely, and that due consideration was 
        given to the views of private school officials. If the 
        private school wishes to appeal, the basis of the claim 
        of noncompliance with this section by a local 
        educational agency shall be provided to the State, and 
        the local educational agency shall forward the 
        documentation provided in subsection (b)(4) to the 
        State.
  (c) 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 and property.
          (2) Provision of services.--(A) The provision of 
        services under this section shall be provided--
                  (i) by employees of a public agency; or
                  (ii) through contract by such public agency 
                with an individual, association, agency, or 
                organization.
          (B) In the provision of such services, such employee, 
        person, 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.
  (d) Standards for a Bypass.--If a local educational agency is 
prohibited by law from providing for the participation on an 
equitable basis of eligible children enrolled in private 
elementary 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 8505 and 
        8506; and
          (3) in making the determination, consider 1 or more 
        factors, including the quality, size, scope, and 
        location of the program and the opportunity of eligible 
        children to participate.
  (e) Capital Expenses.--
          (1) In general.--(A) From the amount appropriated for 
        this subsection under section 1002(g) for any fiscal 
        year, each State is eligible to receive an amount that 
        bears the same ratio to the amount so appropriated as 
        the number of private school children who received 
        services under this part in the State in the most 
        recent year for which data satisfactory to the 
        Secretary are available bears to the number of such 
        children in all States in that same year.
          (B) The Secretary shall reallocate any amounts 
        allocated under subparagraph (A) that are not used by a 
        State for the purpose of this subsection to other 
        States on the basis of their respective needs, as 
        determined by the Secretary.
          (2) Capital expenses.--(A) A local educational agency 
        may apply to the State educational agency for payments 
        for capital expenses consistent with this subsection.
          (B) State educational agencies shall distribute such 
        funds under this subsection to local educational 
        agencies based on the degree of need set forth in their 
        respective applications for assistance under this 
        subsection.
          (3) Uses of funds.--Any funds appropriated to carry 
        out this subsection shall be used only for capital 
        expenses incurred to provide equitable services for 
        private school children under this section.

SEC. 1120A. FISCAL REQUIREMENTS.

  (a) Maintenance of Effort.--A local educational agency may 
receive funds under this part for any fiscal year only if the 
State educational agency finds that the local educational 
agency has maintained its fiscal effort in accordance with 
section 8501 of this Act.
  (b) Federal Funds To Supplement, Not Supplant, Non-Federal 
Funds.--
          (1) In general.--A State or local educational agency 
        shall use funds received under this part only to 
        supplement the amount of 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) 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) 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 local funds to provide services that, 
        taken as a whole, are substantially comparable in each 
        school.
          (C) 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) 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) For the purpose of subparagraph (A), 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) 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 1 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) English language instruction for children 
                of limited English proficiency; and
                  (B) 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 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.

  (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 early childhood development programs such as 
Early Reading First.
  (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 early childhood development programs, such as Early 
Reading First serving children who will attend the schools of 
such 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, other early childhood 
        development programs such as Early Reading First;
          (2) establishing channels of communication between 
        school staff and their counterparts in such Head Start 
        agencies (including teachers, social workers, and 
        health staff) or other early childhood development 
        programs such as Early Reading First, 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 Early 
        Reading First, to discuss the developmental and other 
        needs of individual children;
          (4) organizing and participating in joint transition 
        related training of school staff, Head Start staff, 
        Early Reading First staff and, where appropriate, other 
        early childhood staff; and
          (5) linking the educational services provided in such 
        local educational agency with the services provided in 
        local Head Start agencies and 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. 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), 
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 the outlying areas.
          (2) Competitive grants.--For each of fiscal years 
        2002 and 2003, the Secretary shall carry out the 
        competition described in paragraph (3), except that the 
        amount reserved to carry out such competition shall not 
        exceed the amount reserved under this section for the 
        freely associated states for fiscal year 1999.
          (3) Limitation for competitive grants.--
                  (A) Competitive grants.--The Secretary shall 
                use funds described in paragraph (2) to award 
                grants, on a competitive basis, 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, pursuant to the recommendations of the 
                Pacific Region Educational Laboratory in 
                Honolulu, Hawaii.
                  (C) 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 purposes 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 and secondary schools for Indian 
                children operated or supported by the 
                Department of the Interior; and
                  (B) out-of-State Indian children in 
                elementary 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, upon 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 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. AMOUNTS FOR BASIC GRANTS, CONCENTRATION GRANTS, AND TARGETED 
                    GRANTS.

  (a) Allocation Formula.--Of the amount appropriated to carry 
out this part for each of fiscal years 2002 through 2006 
(referred to in this subsection as the current fiscal year)--
          (1) an amount equal to the amount appropriated to 
        carry out section 1124 for fiscal year 2001 shall be 
        allocated in accordance with section 1124;
          (2) an amount equal to the amount appropriated 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 appropriated under section 
        1002(a) for the current fiscal year exceeds the amount 
        appropriated under such section 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 
        part 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 and 1125.--For each 
        fiscal year, the amount made available to each local 
        educational agency under each of sections 1124 and 1125 
        shall be--
                  (A) not less than 95 percent of the amount 
                made available in 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 in 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 in the preceding fiscal year if 
                the percentage described in subparagraph (A) is 
                below 15 percent.
          (2) Amount for section 1124a.--The amount made 
        available to each local educational agency under 
        section 1124A shall be not less than 85 percent of the 
        amount made available in the preceding fiscal year.
          (3) Payments.--If sufficient funds are appropriated, 
        the amounts described in paragraph (2) shall be paid to 
        all local educational agencies that received grants 
        under section 1124A for the preceding fiscal year, 
        regardless of whether the local educational agency 
        meets the minimum eligibility criteria for that fiscal 
        year provided 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 (2).
          (4) Population data.--In 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 part for any fiscal year are insufficient to pay 
        the full amounts that 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, and 1125, 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.

  (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 
                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) the 2 Secretaries shall publicly 
                        disclose the reasons for their 
                        determination in detail; and
                          (ii) paragraph (3) shall apply.
                  (B) Allocations to large and small local 
                educational agencies.--(i) For any fiscal year 
                in 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) 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 section 1124(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 part for a particular 
                fiscal year directly to local educational 
                agencies without regard to counties.
                  (C) Assurances.--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 part; 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 shall 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 which 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) 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
                          (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; and
                          (iv) for fiscal year 2005 and 
                        succeeding fiscal years, 85.0 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 part than it received under 
                this part for the preceding fiscal year, the 
                percentage in subparagraph (A) shall be the 
                greater of the percentage in subparagraph 
                (A)(i) or the percentage used for the preceding 
                fiscal year.
          (5) Definition.--For purposes of this subsection, the 
        term ``State'' does not include Guam, American Samoa, 
        the Virgin Islands, and the Northern Mariana Islands.
  (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.--
          (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 2 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.--In fiscal year 2001 and 
        every 2 years thereafter, the Secretary shall use 
        updated data on the number of children, aged 5 to 17, 
        inclusive, from families below the poverty level for 
        local educational agencies or counties, published by 
        the Department of Commerce, unless the Secretary and 
        the Secretary of Commerce determine that use of the 
        updated population data would be inappropriate or 
        unreliable. If the Secretary and the Secretary of 
        Commerce determine that some or all of the data 
        referred to in this paragraph are inappropriate or 
        unreliable, they shall publicly disclose their reasons. 
        In determining the families which are below the poverty 
        level, the Secretary shall utilize the criteria of 
        poverty used by the Bureau of the Census in compiling 
        the most recent decennial census, 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.
          (4) Other children to be counted.--For the purposes 
        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 
        utilize the criteria of poverty used by the Bureau of 
        the Census in compiling the most recent decennial 
        census for a family of 4 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. 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. 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. 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 subparagraph (A) of this paragraph) 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 total grants under this section; 
        or
          (2) the average of--
                  (A) one-quarter of 1 percent of the total 
                amount available for such fiscal year under 
                this section; 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. 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, in a 
        State other than Guam, American Samoa, the Virgin 
        Islands, and the Commonwealth of the Northern Mariana 
        Islands, 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 described 
        in subparagraph (A) shall receive less than the lesser 
        of--
                  (i) 0.25 percent of total grants; or
                  (ii) the average of--
                          (I) one-quarter of 1 percent of the 
                        sums available to carry out this 
                        section for such fiscal year; 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) Special rule.--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 quotient resulting from the division 
                of the amount determined for those agencies 
                under section 1124(a)(1) for the fiscal year 
                for which the determination is being made 
                divided by the total number of children counted 
                under section 1124(c) for that agency for that 
                fiscal year.
          (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) and (3).
          (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) States Receiving Minimum Grants.--In States that receive 
the minimum grant under subsection (a)(1)(B), the State 
educational agency shall allocate such funds among the local 
educational agencies in each 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. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  (a) Eligibility of Local Educational Agencies.--A local 
educational agency in a State is eligible to receive a targeted 
grant under this section for any fiscal year if the number of 
children in the local educational agency counted under 
subsection 1124(c), before application of the weighting factor 
described in subsection (c), is at least 10, and if the number 
of children counted for grants under section 1124 is at least 5 
percent of the total population aged 5 to 17 years, inclusive, 
in the local educational agency. For each fiscal year for which 
the Secretary uses county population data to calculate grants, 
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 Puerto Rico.--
          (1) In general.--The amount of the grant that a local 
        educational agency in a State or that the District of 
        Columbia 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 in paragraph 1124(a)(1)(B).
          (2) Puerto rico.--For each fiscal year, the amount of 
        the grant for which the Commonwealth of Puerto Rico is 
        eligible under this section shall be equal to the 
        number of children counted under subsection (c) for 
        Puerto Rico, multiplied by the amount determined in 
        subparagraph 1124(a)(4).
  (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 2 amounts 
                determined under clause (i) or (ii), as 
                follows:
                          (i) By percentage of children.--This 
                        amount is determined by adding--
                                  (I) the number of children 
                                determined under section 
                                1124(c) for that county 
                                constituting up to 15 percent, 
                                inclusive, of the county's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  (II) the number of such 
                                children constituting more than 
                                15 percent, but not more than 
                                19 percent, of such population, 
                                multiplied by 1.75;
                                  (III) the number of such 
                                children constituting more than 
                                19 percent, but not more than 
                                24.20 percent, of such 
                                population, multiplied by 2.5;
                                  (IV) the number of such 
                                children constituting 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 constituting more than 
                                29.20 percent of such 
                                population, multiplied by 4.0.
                          (ii) By number of children.--This 
                        amount is determined by adding--
                                  (I) the number of children 
                                determined under section 
                                1124(c) constituting up to 
                                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) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighted child count for 
                Puerto Rico under this paragraph shall not be 
                greater than the total number of children 
                counted under subsection 1124(c) multiplied by 
                1.72.
          (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 2 
                amounts determined under clauses (i) and (ii), 
                as follows:
                          (i) By percentage of children.--This 
                        amount is determined by adding--
                                  (I) the number of children 
                                determined under section 
                                1124(c) for that local 
                                educational agency constituting 
                                up to 15.233 percent, 
                                inclusive, of the agency's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  (II) the number of such 
                                children constituting more than 
                                15.233 percent, but not more 
                                than 22.706 percent, of such 
                                population, multiplied by 1.75;
                                  (III) the number of such 
                                children constituting more than 
                                22.706 percent, but not more 
                                than 32.213 percent, of such 
                                population, multiplied by 2.5;
                                  (IV) the number of such 
                                children constituting more than 
                                32.213 percent, but not more 
                                than 41.452 percent, of such 
                                population, multiplied by 3.25; 
                                and
                                  (V) the number of such 
                                children constituting more than 
                                41.452 percent of such 
                                population, multiplied by 4.0.
                          (ii) By number of children.--This 
                        amount is determined by adding--
                                  (I) the number of children 
                                determined under section 
                                1124(c) constituting up to 710, 
                                inclusive, of the agency's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  (II) the number of such 
                                children between 711 and 2,384, 
                                inclusive, in such population, 
                                multiplied by 1.5;
                                  (III) the number of such 
                                children between 2,385 and 
                                9,645, inclusive, in such 
                                population, multiplied by 2.0;
                                  (IV) the number of such 
                                children between 9,646 and 
                                54,600, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                  (V) the number of such 
                                children in excess of 54,601 in 
                                such population, multiplied by 
                                3.0.
                  (B) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighted child count for 
                Puerto Rico under this paragraph shall not be 
                greater than the total number of children 
                counted under section 1124(c) multiplied by 
                1.72.
  (d) Calculation of Grant Amounts.--Grants under this section 
shall be calculated in accordance with 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) 0.25 percent of total appropriations; or
          (2) the average of--
                  (A) one-quarter of 1 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.

SEC. 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 
        subparagraph (B) of section 1124(c)(1), 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, and 1125 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, and 1125 among the affected local 
educational agencies--
          (1) if 2 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 1 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, and 1125 is more than such 
local 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. 1127. CARRYOVER AND WAIVER.

  (a) Limitation on Carryover.--Notwithstanding section 421 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 1 additional fiscal year.
  (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.

SEC. 1128. SECULAR, NEUTRAL, AND NONIDEOLOGICAL.

  Any school that receives funds under this part shall ensure 
that educational services or other benefits provided under this 
part, including materials and equipment, shall be secular, 
neutral, and nonideological.

   [PART B--WILLIAM F. GOODLING EVEN START FAMILY LITERACY PROGRAMS]

           PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                        Subpart 1--Reading First

SEC. 1201. FINDINGS.

  The Congress finds as follows:
          (1) The 2000 National Assessment of Educational 
        Progress found that 68 percent of fourth grade students 
        in the United States are reading below the proficient 
        level.
          (2) According to the 2000 National Assessment of 
        Educational Progress report on reading, 63 percent of 
        African Americans, 58 percent of Hispanic Americans, 60 
        percent of children living in poverty, and 47 percent 
        of children in urban schools scored ``below basic'' in 
        reading.
          (3) More than \1/2\ of the students placed in special 
        education classes are identified as learning disabled 
        and, for as many as 80 percent of the students so 
        identified, reading is the primary difficulty.
          (4) It is estimated that, at a minimum, 10,000,000 
        children have difficulty learning to read. 10 to 15 
        percent of those children eventually drop out of high 
        school, and only 2 percent complete a 4-year program at 
        an institution of higher education.
          (5) It is estimated that the number of children who 
        are typically identified as poor readers can be 
        significantly reduced through the implementation of 
        early identification and prevention programs that are 
        based on scientifically based reading research.
          (6) The report issued by the National Reading Panel 
        in 2000 found that the course of reading instruction 
        that obtains maximum benefits for students includes 
        explicit and systematic instruction in phonemic 
        awareness, phonics, vocabulary development, reading 
        fluency, and reading comprehension strategies.

SEC. 1202. PURPOSES.

  The purposes of this subpart are as follows:
          (1) To provide assistance to States and local 
        educational agencies in establishing reading programs 
        for students in grades kindergarten through 3 that are 
        based on scientifically based reading research, in 
        order to ensure that every student can read at grade 
        level or above not later than the end of the third 
        grade.
          (2) To provide assistance to States 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 States and local 
        educational agencies in selecting and administering 
        rigorous diagnostic reading and screening assessment 
        tools that are valid and reliable, document the 
        effectiveness of this subpart in improving the reading 
        skills of students, and improve classroom instruction.
          (4) To provide assistance to States and local 
        educational agencies in selecting or developing 
        effective classroom instructional materials, programs, 
        and strategies to implement scientific research-based 
        methods that have been proven to prevent or remediate 
        reading failure.
          (5) To strengthen coordination among schools and 
        early literacy programs in order to improve reading 
        achievement for all children.

SEC. 1203. FORMULA GRANTS TO STATES.

  (a) In General.--
          (1) Authorization to make grants.--In the case of 
        each State that in accordance with section 1204 submits 
        to the Secretary an application for a 5-year period, 
        the Secretary, subject to the application's approval, 
        shall make a grant to the State 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 under subsection 
        (b).
          (2) Duration of grants.--
                  (A) In general.--Subject to subparagraph (B), 
                a grant under this section shall be awarded for 
                a period of not more than 5 years.
                  (B) Interim review.--
                          (i) Progress report.--
                                  (I) Submission.--Not later 
                                than 60 days after the 
                                termination of the third year 
                                of the grant period, each State 
                                receiving a grant under this 
                                section shall submit a progress 
                                report to the Secretary.
                                  (II) Information included.--
                                The progress report shall 
                                include information on the 
                                progress the State, and local 
                                educational agencies within the 
                                State, are making in reducing 
                                the number of students served 
                                under this subpart in the first 
                                and second grades 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 and its local educational 
                                agencies that they have 
                                significantly increased the 
                                number of students reading at 
                                grade level or above, 
                                significantly increased the 
                                percentages of students in 
                                ethnic, racial, and low-income 
                                populations who are reading at 
                                grade level or above, and 
                                successfully implemented this 
                                subpart.
                          (ii) Peer review.--The progress 
                        report described in clause (i) shall be 
                        reviewed by the peer review panel 
                        convened under section 1204(c)(2).
                          (iii) Consequences of insufficient 
                        progress.--After the submission of the 
                        progress report described in clause 
                        (i), if the Secretary determines that 
                        the State is not making significant 
                        progress in meeting the purposes of 
                        this subpart, the Secretary may 
                        withhold from the State, in whole or in 
                        part, further payments under this 
                        section in accordance with section 455 
                        of the General Education Provisions Act 
                        (20 U.S.C. 1234d) or take such other 
                        action authorized by law as the 
                        Secretary deems necessary, including 
                        providing technical assistance upon 
                        request of the State.
  (b) Determination of Amount of Allotments.--
          (1) Reservations from appropriations.--From the total 
        amount made available under section 1002(b)(1) to carry 
        out this subpart for a fiscal year, the Secretary--
                  (A) shall reserve \1/2\ of 1 percent for 
                allotments for the 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 \1/2\ 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) shall reserve not more than 3 percent or 
                $30,000,000, whichever is less, to carry out 
                section 1206;
                  (D) may reserve not more than 1 percent to 
                carry out section 1207; and
                  (E) shall reserve $5,000,000 to carry out 
                section 1208.
          (2) State allotments.--From the total amount made 
        available under section 1002(b)(1) to carry out this 
        subpart for a fiscal year and not reserved under 
        paragraph (1), the Secretary shall allot 80 percent 
        under this section among each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto 
        Rico.
          (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 described in such paragraph in 
                proportion to the number of children, aged 5 to 
                17, who reside within the State from families 
                with incomes below the poverty line (as defined 
                by the Office of Management and Budget and 
                revised annually in accordance with section 
                673(2) of the Community Services Block Grant 
                Act (42 U.S.C. 9902(2)) applicable to a family 
                of the size involved 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) In general.--Subject to clause 
                        (ii), no State receiving an allotment 
                        under subparagraph (A) may receive less 
                        than \1/4\ 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) Reallotment.--If a State described in paragraph 
        (2) does not apply for an allotment under this section 
        for any fiscal year, or if the State's application is 
        not approved, the Secretary shall reallot such amount 
        to the remaining States in accordance with paragraph 
        (3).
  (c) Subgrants to Local Educational Agencies.--
          (1) Distribution of subgrants.--The Secretary may 
        make a grant to a State under this section only if the 
        State 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 this subsection, 
        competitive subgrants to local educational agencies.
          (2) Notice.--A State 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) Local applications.--To be eligible to receive a 
        subgrant under this subsection, a local educational 
        agency shall submit an application to the State at such 
        time, in such manner, and containing such information 
        as the State may reasonably require.
          (4) Limitation to certain local agencies.--A State 
        receiving a grant under this section may award 
        subgrants under this subsection only to local 
        educational agencies--
                  (A) that have the highest percentages of 
                students in grades kindergarten through 3 
                reading below grade level; and
                  (B) that--
                          (i) have jurisdiction over--
                                  (I) 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; or
                                  (II) a significant number of 
                                schools that are identified for 
                                school improvement under 
                                section 1116(b); or
                          (ii) are located in areas having the 
                        greatest numbers or percentages of 
                        children aged 5 through 17 from low-
                        income families.
          (5) State requirement.--In distributing subgrant 
        funds to local educational agencies under this 
        subsection, a State shall provide funds in sufficient 
        size and scope to enable local educational agencies to 
        improve reading instruction, as determined by rigorous 
        diagnostic reading and screening assessment tools.
          (6) Limitation to certain schools.--In distributing 
        subgrant funds under this subsection, a local 
        educational agency may provide funds only to schools--
                  (A) that have the highest percentages of 
                students in grades kindergarten through 3 
                reading below grade level; and
                  (B) that--
                          (i) are identified for school 
                        improvement under section 1116(b); or
                          (ii) have the greatest numbers or 
                        percentages of children aged 5 through 
                        17 from low-income families.
          (7) Local uses of funds.--
                  (A) Required uses.--Subject to paragraph (8), 
                a 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 
                        rigorous diagnostic reading and 
                        screening assessment tools.
                          (ii) Selecting and implementing a 
                        program or programs of classroom 
                        reading instruction based on 
                        scientifically based reading research 
                        that--
                                  (I) includes the essential 
                                components of reading 
                                instruction; and
                                  (II) provides such 
                                instruction to all children, 
                                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 such Act, 
                                        have not been 
                                        identified as being a 
                                        child with a disability 
                                        (as defined in section 
                                        602 of such 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 such Act) related to 
                                        reading;
                                          (ee) are deficient in 
                                        their phonemic 
                                        awareness, phonics 
                                        skills, vocabulary 
                                        development, oral 
                                        reading fluency, or 
                                        comprehension 
                                        strategies; or
                                          (ff) are identified 
                                        as having limited 
                                        English proficiency.
                          (iii) Procuring classroom 
                        instructional materials based on 
                        scientifically based reading research.
                          (iv) Providing professional 
                        development for teachers of grades 
                        kindergarten through 3, and special 
                        education teachers of grades 
                        kindergarten through 12, that--
                                  (I) will prepare these 
                                teachers in all of the 
                                essential components of reading 
                                instruction;
                                  (II) shall include--
                                          (aa) information, 
                                        instructional 
                                        materials, programs, 
                                        strategies, and 
                                        approaches based on 
                                        scientifically based 
                                        reading research, 
                                        including early 
                                        intervention and 
                                        classroom reading 
                                        materials and remedial 
                                        programs and 
                                        approaches; and
                                          (bb) instruction in 
                                        the use of rigorous 
                                        diagnostic reading and 
                                        screening assessment 
                                        tools 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 fully qualified in 
                                accordance with the 
                                requirements of section 1119.
                  (B) Optional uses.--Subject to paragraph (8), 
                a 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) Providing training to parents and 
                        other individuals who volunteer to be 
                        reading tutors in the essential 
                        components of reading instruction.
                          (ii) Providing family literacy 
                        services, especially to parents 
                        enrolled in participating schools, 
                        through the use of library materials 
                        and reading programs, strategies, and 
                        approaches that are based on 
                        scientifically based reading research, 
                        to encourage reading and support their 
                        children's reading development.
          (8) Local planning and administration.--A local 
        educational agency that receives a subgrant under this 
        subsection may use not more than 2 percent of the funds 
        provided under the subgrant for planning and 
        administration.
  (d) Other State Uses of Funds.--
          (1) Professional development.--
                  (A) In general.--A State that receives a 
                grant under this section may expend not more 
                than 15 percent of the amount of the funds 
                provided under the grant--
                          (i) to develop and implement a 
                        program of in-service professional 
                        development for teachers of 
                        kindergarten through third grade, and 
                        special education teachers of grades 
                        kindergarten through 12, that--
                                  (I) will prepare these 
                                teachers in all of the 
                                essential components of reading 
                                instruction;
                                  (II) shall include--
                                          (aa) information on 
                                        interventions, 
                                        instructional 
                                        materials, programs, 
                                        and approaches based on 
                                        scientifically based 
                                        reading research, 
                                        including early 
                                        intervention and 
                                        reading remediation 
                                        materials, programs, 
                                        and approaches; and
                                          (bb) instruction in 
                                        the use of rigorous 
                                        diagnostic reading and 
                                        screening assessment 
                                        tools and other 
                                        procedures to improve 
                                        instruction and 
                                        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;
                          (ii) to strengthen and enhance 
                        professional development courses for 
                        students preparing, at all public 
                        institutions of higher education in the 
                        State, to teach kindergarten through 
                        third grades by--
                                  (I) reviewing such courses to 
                                determine whether their 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) preparing a report on 
                                the results of such reviews, 
                                submitting it to the reading 
                                and literacy partnership for 
                                the State established under 
                                section 1204(d), and making it 
                                available for public review via 
                                the Internet; and
                          (iii) to make recommendations on how 
                        the State's licensure and certification 
                        standards in the area of reading might 
                        be improved.
                  (B) Funds not used for professional 
                development.--Any portion of the funds 
                described in subparagraph (A) that a State does 
                not expend in accordance with such subparagraph 
                shall be expended for the purpose of making 
                subgrants in accordance with subsection (c).
          (2) Other state-level activities.--A State that 
        receives a grant under this section may expend not more 
        than 3 percent of the amount of the funds provided 
        under the grant for one or more of the following 
        authorized State activities:
                  (A) Assisting local educational agencies in 
                accomplishing the tasks required to design and 
                implement a classroom reading program under 
                this subpart, including--
                          (i) selecting and implementing a 
                        program or programs of classroom 
                        reading instruction based on 
                        scientifically based reading research;
                          (ii) selecting rigorous diagnostic 
                        reading and screening assessment tools; 
                        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 to students in kindergarten 
                through third grades, through appropriate 
                providers, reading instruction that includes--
                          (i) rigorous diagnostic reading and 
                        screening assessment tools; and
                          (ii) as need is indicated by such 
                        assessments, instruction based on 
                        scientifically based reading research 
                        that includes the essential components 
                        of reading instruction.
          (3) Planning, administration, and reporting.--
                  (A) In general.--A State that receives a 
                grant under this section shall expend not more 
                than 2 percent of the amount of the funds 
                provided under the grant for the activities 
                described in this paragraph.
                  (B) Planning and administration.--A State 
                that receives a grant under this section may 
                expend funds described in subparagraph (A) 
                for--
                          (i) planning and administration 
                        relating to the State uses of funds 
                        authorized under this subpart, 
                        including administering the 
                        distribution of competitive subgrants 
                        to local educational agencies under 
                        this section and section 1205; and
                          (ii) assessing and evaluating, on a 
                        regular basis, local educational agency 
                        activities assisted under this subpart, 
                        with respect to whether they have been 
                        effective in increasing the number of 
                        children in first and second grades 
                        served under this subpart who can read 
                        at or above grade level.
                  (C) Annual reporting.--
                          (i) In general.--A State that 
                        receives a grant under this section 
                        shall expend funds provided under the 
                        grant to provide the Secretary annually 
                        with a report on the implementation of 
                        this subpart. The report shall include 
                        evidence that the State is fulfilling 
                        its obligations under this subpart. The 
                        report shall include a specific 
                        identification of those schools and 
                        local educational agencies that report 
                        the largest gains in reading 
                        achievement.
                          (ii) Privacy protection.--Data in the 
                        report shall be set forth in a manner 
                        that protects the privacy of 
                        individuals.
                          (iii) Contract.--To the extent 
                        practicable, a State shall enter into a 
                        contract with an entity that conducts 
                        scientifically based reading research, 
                        under which contract the entity will 
                        produce the reports required to be 
                        submitted under this subparagraph.

SEC. 1204. STATE FORMULA GRANT APPLICATIONS.

  (a) In General.--A State that desires to receive a grant 
under section 1203 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).
  (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's activities under this 
                subpart.
          (2) An assurance that the State will submit to the 
        Secretary, at such time and in such manner as the 
        Secretary may reasonably require, a State plan 
        containing a description of a process--
                  (A) to evaluate programs carried out by local 
                educational agencies under this subpart;
                  (B) to assist local educational agencies in 
                identifying rigorous diagnostic reading and 
                screening assessment tools; and
                  (C) to assist local educational agencies in 
                identifying interventions, and instructional 
                materials, programs and approaches, based on 
                scientifically based reading research, 
                including early intervention and classroom 
                reading materials and remedial programs and 
                approaches.
          (3) An assurance that the State, and local 
        educational agencies in the State, will participate in 
        all national evaluations under this subpart.
  (c) Approval of Applications.--
          (1) In general.--The Secretary, in consultation with 
        the peer review panel convened under paragraph (2), 
        shall approve an application of a State under this 
        section 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) 3 individuals selected by the 
                        Secretary;
                          (ii) 3 individuals selected by the 
                        National Institute for Literacy;
                          (iii) 3 individuals selected by the 
                        National Research Council of the 
                        National Academy of Sciences; and
                          (iv) 3 individuals selected by the 
                        National Institute of Child Health and 
                        Human Development.
                  (B) Experts.--The panel shall include experts 
                who are competent, by virtue of their training, 
                expertise, or experience, to evaluate 
                applications under this section, and experts 
                who provide professional development to 
                teachers of reading to children and adults, and 
                experts who provide professional development to 
                other instructional staff, based on 
                scientifically based reading research.
                  (C) Recommendations.--The panel shall 
                recommend grant applications from States under 
                this section to the Secretary for funding or 
                for disapproval.
  (d) Reading and Literacy Partnerships.--
          (1) In general.--In order for a State to receive a 
        grant under section 1203, 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 local educational agency that is 
                eligible to receive a subgrant under section 
                1203.
                  (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.
                  (G) A parent of a public or private school 
                student or a parent who educates their child or 
                children in their 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 
                an 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 
                based on scientifically based reading research 
                in the State;
                  (B) a local educational agency;
                  (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.

SEC. 1205. DISCRETIONARY GRANTS TO STATES.

  (a) In General.--In the case of a State that, in accordance 
with sections 1203 and 1204, has received approval of an 
application for a 5-year formula grant, the Secretary may make 
additional 2-year discretionary grants to the State for the use 
specified in (d). For each fiscal year, the funds provided 
under the discretionary grant shall equal the allotment 
determined for the State under subsection (b).
  (b) Determination of Amount of Allotments.--From the total 
amount made available under section 1002(b)(1) to carry out 
this subpart for a fiscal year and not reserved under paragraph 
(1), the Secretary, upon the recommendation of the peer review 
panel convened under section 1204(c)(2), shall allot 20 percent 
under this section among the States described in subsection 
(a)--
          (1) for fiscal years 2002 and 2003, based upon a 
        determination of such States' relative likelihood of 
        effectively implementing a program under this subpart; 
        and
          (2) for fiscal year 2004 and subsequent fiscal years, 
        based upon such States' applications under subsection 
        (c).
  (c) State Discretionary Grant Applications.--
          (1) In general.--A State that desires to receive a 
        grant under this section for a grant period that 
        includes any fiscal year after fiscal year 2003 shall 
        submit the information described in paragraph (3) to 
        the Secretary at such time and in such form as the 
        Secretary may require.
          (2) Peer review.--The peer review panel convened 
        under section 1204(c)(2) shall review the information 
        submitted under this subsection. The panel shall 
        recommend such applications to the Secretary for 
        funding or for disapproval.
          (3) Information.--The information described in this 
        paragraph is the following:
                  (A) An assurance that the State will award 
                competitive subgrants to local educational 
                agencies consistent with subsection (d)(4).
                  (B) An assurance that the State will ensure 
                that local educational agencies that receive a 
                subgrant under subsection (d) use the funds 
                provided under the subgrant in accordance with 
                subsection (d)(5).
                  (C) Evidence that the State has increased 
                significantly the percentage of students 
                reading at grade level or above.
                  (D) Evidence that the State has been 
                successful in increasing the percentage of 
                students in ethnic, racial, and low-income 
                populations who are reading at grade level or 
                above.
                  (E) Any additional evidence that demonstrates 
                success in the implementation of this subpart.
  (d) Subgrants to Local Educational Agencies.--
          (1) In general.--The Secretary may make a grant to a 
        State under this section only if the State 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 local 
        educational agencies.
          (2) Notice.--A State 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, a local educational 
        agency shall submit an application to the State at such 
        time, in such manner, and containing such information 
        as the State may reasonably require.
          (4) Distribution.--
                  (A) In general.--A State shall distribute 
                subgrants under this section through a 
                competitive process based on relative need and 
                the evidence described in this paragraph.
                  (B) Evidence used in all years.--For all 
                fiscal years, a State shall distribute 
                subgrants under this section based on evidence 
                that a local educational agency--
                          (i) satisfies the requirements of 
                        section 1203(c)(4);
                          (ii) will carry out its obligations 
                        under this subpart, particularly 
                        paragraph (5); and
                          (iii) will work with other local 
                        educational agencies in the State that 
                        have not received a subgrant under this 
                        subsection to assist such non-receiving 
                        agencies in increasing the reading 
                        achievement of students.
                  (C) Evidence used in fiscal years after 
                2003.--For fiscal year 2004 and subsequent 
                fiscal years, a State shall distribute 
                subgrants under this section based on the 
                evidence described in subparagraph (B) and, in 
                addition, evidence that a local educational 
                agency--
                          (i) has significantly increased the 
                        percentage of all students reading at 
                        grade level or above;
                          (ii) has significantly increased the 
                        percentage of students in ethnic, 
                        racial, and low-income populations who 
                        are reading at grade level or above; 
                        and
                          (iii) has demonstrated success in the 
                        implementation of this subpart.
          (5) Local uses of funds.--A local educational agency 
        that receives a subgrant under this subsection--
                  (A) shall use the funds provided under the 
                subgrant to carry out the activities described 
                in section 1203(c)(7)(A); and
                  (B) may use such funds to carry out the 
                activities described in section 1203(c)(7)(B).
  (e) Definition.--For purposes of this section, the term 
``State'' means each of the 50 States, the District of 
Columbia, and the Commonwealth of Puerto Rico.

SEC. 1206. EXTERNAL EVALUATION.

  (a) In General.--From funds reserved under section 
1203(b)(1)(C), the Secretary shall contract with an independent 
outside organization for a 5-year, rigorous, scientifically 
valid, quantitative evaluation of this subpart.
  (b) Process.--Such evaluation shall be conducted by an 
organization outside of the Department that is capable of 
designing and carrying out an independent evaluation that 
identifies the effects of specific activities carried out by 
States and local educational agencies under this subpart on 
improving reading instruction. Such evaluation shall use only 
data relating to students served under this subpart and shall 
take into account factors influencing student performance that 
are not controlled by teachers or education administrators.
  (c) Analysis.--Such evaluation 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 
        States and local educational agencies measure the 
        essential components of reading instruction.
          (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 
        discretionary grant under section 1205 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 
        rigorous diagnostic reading and screening assessment 
        tools assist teachers in identifying specific reading 
        deficiencies.
          (7) A measurement of the extent to which professional 
        development programs implemented by States 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 States and 
local educational agencies on a periodic basis for use in 
program improvement.

SEC. 1207. NATIONAL ACTIVITIES.

  From funds reserved under section 1203(b)(1)(D), the 
Secretary may provide technical assistance in achieving the 
purposes of this subpart to States, local educational agencies, 
and schools requesting such assistance.

SEC. 1208. INFORMATION DISSEMINATION.

  (a) In General.--From funds reserved under section 
1203(b)(1)(E), 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--
          (1) shall disseminate information on scientifically 
        based reading research pertaining to children, youth, 
        and adults;
          (2) shall identify and disseminate information about 
        schools, local educational agencies, and States that 
        effectively developed and implemented classroom reading 
        programs that meet the requirements of this subpart, 
        including those effective States, local educational 
        agencies, and schools identified through the evaluation 
        and peer review provisions of this subpart; and
          (3) shall 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.--
          (1) In general.--At a minimum, the National Institute 
        for Literacy shall disseminate such information to--
                  (A) recipients of Federal financial 
                assistance under part A of this title, part A 
                of title III, the Head Start Act, the 
                Individuals with Disabilities Education Act, 
                and the Adult Education and Family Literacy 
                Act; and
                  (B) each Bureau funded school (as defined in 
                section 1141(3) of the Education Amendments of 
                1978).
          (2) Use of existing networks.--In carrying out this 
        section, the National Institute for Literacy shall, to 
        the extent practicable, utilize existing information 
        and dissemination networks developed and maintained 
        through other public and private entities.

SEC. 1209. DEFINITIONS.

  For purposes of this subpart:
          (1) 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.
          (2) 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) oral reading fluency; and
                  (E) reading comprehension strategies.
          (3) 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.
          (4) 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.
          (5) Rigorous diagnostic reading and screening 
        assessment tools.--The term ``rigorous diagnostic 
        reading and screening assessment tools'' means 
        assessments that--
                  (A) are valid, reliable, and based on 
                scientifically based reading research;
                  (B) measure progress in developing phonemic 
                awareness and phonics skills, vocabulary, 
                reading fluency, and reading comprehension;
                  (C) identify students who may be at risk for 
                reading failure or who are having difficulty 
                reading; and
                  (D) are used to improve instruction.
          (6) Scientifically based reading research.--The term 
        ``scientifically based reading research''--
                  (A) means the application of rigorous, 
                systematic, and objective procedures to obtain 
                valid knowledge relevant to reading 
                development, reading instruction, and reading 
                difficulties; and
                  (B) shall include research that--
                          (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.

                     Subpart 2--Early Reading First

SEC. 1221. PURPOSES.

  The purposes of this subpart are as follows:
          (1) To improve prereading skills in children aged 3 
        through 5, particularly children from low-income 
        families, in high-quality oral language and literature-
        rich environments.
          (2) To provide professional development for early 
        childhood teachers that prepares them with scientific 
        research-based knowledge of early reading development 
        to assist in developing the children's--
                  (A) automatic recognition of the letters of 
                the alphabet;
                  (B) understanding that spoken words are made 
                up of small segments of speech sounds and that 
                certain letters regularly represent such speech 
                sounds;
                  (C) spoken vocabulary and oral comprehension 
                abilities; and
                  (D) understanding of semiotic concepts.
          (3) To use scientific research-based screening tools 
        or other appropriate measures to determine whether 
        preschool children are developing the skills identified 
        in this section.
          (4) To identify and provide scientific research-based 
        prereading language and literacy activities and 
        instructional materials that can be used to assist in 
        the development of prereading skills in children.
          (5) To integrate such scientific research-based 
        instructional materials and literacy activities with 
        existing programs of preschools, child care agencies, 
        and Head Start centers, and with family literacy 
        services.

SEC. 1222. LOCAL EARLY READING FIRST GRANTS.

  (a) Program Authorized.--From amounts appropriated under 
section 1002(b)(2), the Secretary shall make awards, on a 
competitive basis and for periods of not more than 5 years, to 
eligible applicants to enable such applicants to carry out 
activities that are consistent with the purposes of this 
subpart.
  (b) Definition of Eligible Applicant.--In this subpart, the 
term ``eligible applicant'' means--
          (1) a local educational agency;
          (2) one or more public or private organizations, 
        acting on behalf of one or more programs that serve 
        children aged 3 through 5 (such as a program at a child 
        care agency or Head Start center or a family literacy 
        program), which organizations shall be located in a 
        community served by a local educational agency; or
          (3) one or more local educational agencies in 
        collaboration with one or more organizations described 
        in paragraph (2).
  (c) Applications.--An eligible applicant that desires to 
receive a grant under this subpart shall submit an application 
to the Secretary, which shall include a description of--
          (1) the programs to be served by the proposed 
        project, including general demographic and 
        socioeconomic information on the communities in which 
        the proposed project will be administered;
          (2) how the proposed project will enhance the school 
        readiness of children aged 3 through 5 in high-quality 
        oral language and literature-rich environments;
          (3) how the proposed project will provide early 
        childhood teachers with scientific research-based 
        knowledge of early reading development and assist such 
        teachers in developing the children's prereading 
        skills;
          (4) how the proposed project will provide services 
        and utilize 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 integrate such 
        instructional materials and literacy activities with 
        existing preschool programs and family literacy 
        services;
          (6) how the proposed project will help staff in the 
        programs to meet the diverse needs of children in the 
        community, including children with limited English 
        proficiency and children with learning disabilities;
          (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) how the activities conducted under this subpart 
        will be coordinated with the eligible applicant's 
        activities under subpart 1, if the applicant has 
        received a subgrant under such subpart, at the 
        kindergarten through third grade levels;
          (9) how the proposed project will evaluate the 
        success of the activities supported under this subpart 
        in enhancing the early language and reading development 
        of children served by the project; and
          (10) such other information as the Secretary may 
        require.
  (d) 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 the peer 
review panel convened under section 1204(c)(2).
  (e) Local Uses of Funds.--
          (1) Required 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:
                  (A) Providing children aged 3 through 5 with 
                high-quality oral language and literature-rich 
                environments in which to acquire prereading 
                skills.
                  (B) Providing professional development for 
                early childhood teachers that prepares them 
                with scientific research-based knowledge of 
                early reading development to assist in 
                developing the children's--
                          (i) automatic recognition of the 
                        letters of the alphabet;
                          (ii) understanding that spoken words 
                        are made up of small segments of speech 
                        sounds and that certain letters 
                        regularly represent such speech sounds;
                          (iii) spoken vocabulary and oral 
                        comprehension abilities; and
                          (iv) understanding of semiotic 
                        concepts.
                  (C) Identifying and providing scientific 
                research-based prereading language and literacy 
                activities and instructional materials for use 
                in developing the children's--
                          (i) automatic recognition of the 
                        letters of the alphabet;
                          (ii) understanding that spoken words 
                        are made up of small segments of speech 
                        sounds and that certain letters 
                        regularly represent such speech sounds;
                          (iii) spoken vocabulary and oral 
                        comprehension abilities; and
                          (iv) understanding of semiotic 
                        concepts.
          (2) Optional activities.--An eligible applicant that 
        receives a grant under this subpart may use the funds 
        provided under the grant to carry out the following 
        activities:
                  (A) Using scientific research-based screening 
                tools or other appropriate measures to 
                determine whether preschool children are 
                developing the skills identified in this 
                subsection.
                  (B) Integrating such instructional materials 
                and literacy activities with programs of 
                existing child care agencies, preschools, and 
                Head Start centers, and with family literacy 
                services.
  (f) Award Amounts.--The Secretary may establish a maximum 
award amount, or ranges of award amounts, for grants under this 
subpart.

SEC. 1223. FEDERAL ADMINISTRATION.

  The Secretary shall consult with the Secretary of Health and 
Human Services in order to coordinate the activities undertaken 
under this subpart with programs under the Head Start Act (42 
U.S.C. 9831 et seq.).

SEC. 1224. 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.

SEC. 1225. EVALUATION.

  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 $1,000,000 
to conduct an independent evaluation of the effectiveness of 
this subpart.

SEC. 1226. ADDITIONAL RESEARCH.

  From the amount made available under section 1002(b)(2) for 
each of the fiscal years 2002 through 2006, the Secretary shall 
reserve not more than $3,000,000 to conduct, in consultation 
with the National Institute for Child Health and Human 
Development, the National Institute for Literacy, and the 
Department of Health and Human Services, additional research on 
language and literacy development for children aged 3 through 
5.

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

SEC. [1201.] 1231. STATEMENT OF PURPOSE.

  It is the purpose of this [part] subpart to help break the 
cycle of poverty and illiteracy by 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''. The 
program shall--
          (1) * * *

           *       *       *       *       *       *       *

          (4) use instructional programs based on 
        scientifically based reading research (as defined in 
        section [2252)] 1209) and the prevention of reading 
        difficulties for children and adults, to the extent 
        such research is available.

SEC. [1202.] 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)] 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 [part] subpart, and 
        according to their relative needs, for--
                  (A) * * *

           *       *       *       *       *       *       *

  (b) Reservation for Federal Activities.--
          (1) Evaluation, technical assistance, program 
        improvement, and replication activities.--From amounts 
        appropriated under section [1002(b)] 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 [1209] 1239; and
                  (B) providing, through grants or contracts 
                with eligible organizations, technical 
                assistance, program improvement, and 
                replication activities.
          (2) Research.--In the case of fiscal years 2001 
        through 2004, if the amount appropriated under section 
        [1002(b)] 1002(b)(3) for any of such years--
                  (A) is equal to or less than the amounts 
                appropriated for the preceding fiscal year, the 
                Secretary may reserve from such amount only the 
                amount necessary to continue multiyear 
                activities carried out pursuant to section 
                [1211(b)] 1241(b) that began during or prior to 
                the preceding fiscal year; or
                  (B) exceeds the amount appropriated for the 
                preceding fiscal year, the Secretary shall 
                reserve from such excess amount $2,000,000 or 
                50 percent, whichever is less, to carry out 
                section [1211(b)] 1241(b).
  (c) Reservation for Grants.--
          (1) Grants authorized.--For any fiscal year for which 
        at least one State applies and submits an application 
        that meets the requirements and goals of this 
        subsection and for which the amount appropriated under 
        section [1002(b)] 1002(b)(3) exceeds the amount 
        appropriated under such section for the preceding 
        fiscal year, the Secretary shall reserve, from the 
        amount of such excess remaining after the application 
        of subsection (b)(2), the amount of such remainder or 
        $1,000,000, whichever is less, to award grants, on a 
        competitive basis, to States to enable such States 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 [part] 
        subpart. Such coordination and integration shall 
        include funds available under the Adult Education and 
        Family Literacy Act, the Head Start Act, this [part] 
        subpart, part A of this title, and part A of title IV 
        of the Social Security Act. No State may receive more 
        than one grant under this subsection.
          (2) Consortia.--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(C) Coordination with part c of title ii.--
                The consortium shall coordinate its activities 
                with the activities of the reading and literacy 
                partnership for the State established under 
                section 2253(d), if the State educational 
                agency receives a grant under section 2253.]
                  (C) Coordination with subpart 1.--The 
                consortium shall coordinate its activities with 
                the activities of the reading and literacy 
                partnership for the State established under 
                section 1204(d), if the State receives a grant 
                under section 1203.
          (3) Reading instruction.--Statewide family literacy 
        initiatives implemented under this subsection shall 
        base reading instruction on scientifically based 
        reading research (as such term is defined in section 
        [2252)] 1209).

           *       *       *       *       *       *       *

  (d) State Allocation.--
          (1) In general.--From amounts appropriated under 
        section [1002(b)] 1002(b)(3) and not reserved under 
        subsections (a), (b), and (c), the Secretary shall make 
        grants to States from allocations under paragraph (2).

           *       *       *       *       *       *       *

          (3) Minimum.--No State shall receive a grant under 
        paragraph (1) in any fiscal year in an amount which is 
        less than $250,000, or one-half of 1 percent of the 
        amount appropriated under section [1002(b)] 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 [part] subpart--
          (1) * * *

           *       *       *       *       *       *       *

SEC. [1203.] 1233. STATE PROGRAMS.

  (a) State Level Activities.--Each State that receives a grant 
under section [1202(d)(1)] 1232(d)(1) may use not more than a 
total of 6 percent of the grant funds for the costs of--
          (1) administration, not to exceed half of such 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 section [1210.] 1240.
  (b) Subgrants for Local Programs.--
          (1) In general.--Each State shall use the grant funds 
        received under section [1202(d)(1)] 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 shall award 
                a subgrant under paragraph (1) in an amount 
                less than $75,000.
                  (B) Subgrantees in ninth and succeeding 
                years.--No State 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 [part] subpart or its 
                predecessor authority for the ninth (or any 
                subsequent) fiscal year.

           *       *       *       *       *       *       *

SEC. [1204.] 1234. USES OF FUNDS.

  (a) In General.--In carrying out an Even Start program under 
this [part] subpart, a recipient of funds under this [part] 
subpart shall use such funds to pay the Federal share of the 
cost of providing intensive family literacy services that 
involve parents and children, from birth through age seven, 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) Except as provided in paragraph 
        (2), the Federal share under this [part] subpart may 
        not exceed--
                  (i) 90 percent of the total cost of the 
                program in the first year that such program 
                receives assistance under this [part] subpart 
                or its predecessor authority;
                  (ii) 80 percent in the second such year;
                  (iii) 70 percent in the third such year;
                  (iv) 60 percent in the fourth such year;
                  (v) 50 percent in the fifth, sixth, seventh, 
                and eighth such years; and
                  (vi) 35 percent in any subsequent such year.
          (B) The remaining cost of a program assisted under 
        this [part] 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.
          (2) Waiver.--The State educational agency may waive, 
        in whole or in part, the cost-sharing requirement 
        described in paragraph (1) for an eligible entity if 
        such entity--
                  (A) demonstrates that such entity otherwise 
                would not be able to participate in the program 
                assisted under this [part] 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 
        [part] subpart may not be used for the indirect costs 
        of a program assisted under this [part] subpart, except 
        that the Secretary may waive this paragraph if an 
        eligible recipient of funds reserved under section 
        [1202(a)(1)(C)] 1232(a)(1)(C) demonstrates to the 
        Secretary's satisfaction that such recipient otherwise 
        would not be able to participate in the program 
        assisted under this [part] subpart.
  (c) Use of Funds for Family Literacy Services.--
          (1) In general.--From funds reserved under section 
        [1203(a),] 1233(a), a State may use a portion of such 
        funds to assist eligible entities receiving a subgrant 
        under section [1203(b)] 1233(b) in improving the 
        quality of family literacy services provided under Even 
        Start programs under this [part] subpart, except that 
        in no case may a State'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 
        shall give priority to programs that were of low 
        quality, as evaluated based on the indicators of 
        program quality developed by the State under section 
        [1210.] 1240.

           *       *       *       *       *       *       *

SEC. [1205.] 1235. PROGRAM ELEMENTS.

  Each program assisted under this [part] subpart shall--
          (1) include the identification and recruitment of 
        families most in need of services provided under this 
        [part] 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 such 
        parents to participate fully in the activities and 
        services provided under this [part] 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 such services are 
        unavailable from other sources, necessary for 
        participation in the activities assisted under this 
        [part] 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 
                [part] subpart; and
                  (C) transportation for the purpose of 
                enabling parents and their children to 
                participate in programs authorized by this 
                [part] subpart;

           *       *       *       *       *       *       *

          (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 [part] subpart, 
        ensure that--
                  (A) not later than 4 years after the date of 
                the enactment of the Literacy Involves Families 
                Together Act--
                          (i) * * *
                          (ii) the individual responsible for 
                        administration of family literacy 
                        services under this [part] subpart has 
                        received training in the operation of a 
                        family literacy program; and

           *       *       *       *       *       *       *

          (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 [part] 
        subpart;

           *       *       *       *       *       *       *

          (10) use instructional programs based on 
        scientifically based reading research (as defined in 
        section [2252)] 1209) for children and adults, to the 
        extent such research is available;

           *       *       *       *       *       *       *

          (12) include reading readiness activities for 
        preschool children based on scientifically based 
        reading research (as defined in section [2252,)] 1209), 
        to the extent available, to ensure children enter 
        school ready to learn to read;

           *       *       *       *       *       *       *

          (14) ensure that the programs will serve those 
        families most in need of the activities and services 
        provided by this [part] subpart; and
          (15) provide for an independent evaluation of the 
        [program.] program to be used for program improvement.

SEC. [1206.] 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 [part] subpart, or who are 
                attending secondary school; and
          (2) the child or children, from birth through age 
        seven, 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 [part] subpart, when appropriate to serve the 
        purpose of this [part] subpart.
          (2) Special rule.--Any family participating in a 
        program assisted under this [part] subpart that becomes 
        ineligible for such participation as a result of one or 
        more members of the familybecoming ineligible for such 
        participation may continue to participate in the 
        program until all members of the family become 
        ineligible for such participation, which--
                  (A) * * *

           *       *       *       *       *       *       *

          (3) Children 8 years of age or older.--If an Even 
        Start program assisted under this [part] subpart 
        collaborates with a program under part A, and funds 
        received under such part A program contribute to paying 
        the cost of providing programs under this [part] 
        subpart to children 8 years of age or older, the Even 
        Start program, notwithstanding subsection (a)(2), may 
        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. [1207.] 1237. APPLICATIONS.

  (a) Submission.--To be eligible to receive a subgrant under 
this [part] 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 [part] 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.--Such application shall also include 
        a plan of operation and continuous improvement for the 
        program which shall include--
                  (A) a description of the program objectives, 
                strategies to meet such objectives, and how 
                they 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 [1205;] 1235;

           *       *       *       *       *       *       *

                  (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 [part] subpart;
                          (ii) to provide services under this 
                        [part] 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, consistent with 
                section [14306;] 8306; and

           *       *       *       *       *       *       *

          (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 
                [part] subpart; and
                  (B) be periodically reviewed and revised by 
                the eligible entity as necessary.
  (d) Consolidated Application.--The plan described in 
subsection (c)(1)(F) may be submitted as part of a consolidated 
application under section [14302.] 8302.

SEC. [1208.] 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 
                        [part] subpart; and
                          (ii) effectively implementing the 
                        program elements required under section 
                        [1205;] 1235;

           *       *       *       *       *       *       *

                  (F) demonstrate the applicant's ability to 
                provide the non-Federal share required by 
                section [1204(b);] 1234(b);
                  (G) are representative of urban and rural 
                regions of the State; and

           *       *       *       *       *       *       *

  (b) Duration.--
          (1) In general.--Subgrants under this [part] subpart 
        may be awarded for a period not to exceed four years.

           *       *       *       *       *       *       *

          (3) Continuing eligibility.--In awarding subgrant 
        funds to continue a program under this [part] 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 [1207(c)(1)(A)] 1237(c)(1)(A) and shall 
        evaluate the program based on the indicators of program 
        quality developed by the State under section [1210.] 
        1240.
          (4) Insufficient progress.--The State educational 
        agency may refuse to award subgrant funds if such 
        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 [1210,] 1240, 
        after--
                  (A) providing technical assistance to the 
                eligible entity; and
                  (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 [part] 
        subpart may reapply under this [part] subpart for 
        additional subgrants.
          (B) The Federal share of any subgrant renewed under 
        subparagraph (A) shall be limited in accordance with 
        section [1204(b).] 1234(b).

SEC. [1209.] 1239. EVALUATION.

  From funds reserved under section [1202(b)(1),] 1232(b)(1), 
the Secretary shall provide for an independent evaluation of 
programs assisted under this [part] subpart--
          (1) to determine the performance and effectiveness of 
        programs assisted under this [part] subpart;
          (2) to identify effective Even Start programs 
        assisted under this [part] subpart that can be 
        duplicated and used in providing technical assistance 
        to Federal, State, and local programs; and
          (3) to provide States and eligible entities receiving 
        a subgrant under this [part] 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 local evaluations undertaken under 
        section [1205(10)] 1235(10) provide accurate 
        information on the effectiveness of programs assisted 
        under this [part] subpart.

SEC. [1210.] 1240. INDICATORS OF PROGRAM QUALITY.

  Each State receiving funds under this [part] subpart shall 
develop, based on the best available research and evaluation 
data, indicators of program quality for programs assisted under 
this [part] subpart. Such indicators shall be used to monitor, 
evaluate, and improve such programs within the State. Such 
indicators shall include the following:
          (1) * * *

           *       *       *       *       *       *       *

SEC. [1211.] 1241. RESEARCH.

  (a) In General.--The Secretary shall carry out, through grant 
or contract, research into the components of successful family 
literacy services, to use--
          (1) to improve the quality of existing programs 
        assisted under this [part] subpart or other family 
        literacy programs carried out under this Act or the 
        Adult Education and Family Literacy Act; and
          (2) to 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 
        [1202(b)(2),] 1232(b)(2), the National Institute for 
        Literacy, in consultation with the Secretary, shall 
        carry out research that--
                  (A) is scientifically based reading research 
                (as defined in section [2252);] 1209); and

           *       *       *       *       *       *       *

  (c) Dissemination.--The National Institute for Literacy shall 
disseminate, pursuant to section [2258,] 1208, the results of 
the research described in subsections (a) and (b) to States and 
recipients of subgrants under this [part] subpart.

SEC. [1212.] 1242. CONSTRUCTION.

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

        [PART E] Subpart 4_Inexpensive Book Distribution Program

SEC. [10501.] 1251. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING 
                    MOTIVATION.

  (a) Purpose.--The purpose of this program is to establish and 
implement a model partnership between a governmental entity and 
a private entity, to help prepare young children for reading, 
and 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 literacy resources, and shall 
assign the highest priority to serving the youngest and 
neediest children in the United States.
  [(a)] (b) Authorization.--The 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 students, that motivate children to 
read.] books to young and school-aged children that motivate 
them to read.
  [(b)] (c) Requirements of Contract.--Any contract entered 
into under subsection [(a)] (b) shall--

           *       *       *       *       *       *       *

          (4) provide that the contractor will provide such 
        training and technical assistance to subcontractors as 
        may be necessary to carry out the purpose of this 
        section;
          (5) provide that the contractor will annually report 
        to the Secretary the number of, and describe, programs 
        funded under paragraph (3); and
          (6) include such other terms and conditions as the 
        Secretary determines to be appropriate to ensure the 
        effectiveness of such programs.
  [(c)] (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 
        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.
  [(d)] (g) Definition of ``Federal Share''.--For the purpose 
of this section, the term ``Federal share'' means, with respect 
to the cost to a subcontractor of purchasing books to be paid 
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.
  [(e) Authorization of Appropriations.--For the purpose of 
carrying out this section, there are authorized to be 
appropriated $10,300,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years.]

PART C--EDUCATION OF MIGRATORY CHILDREN

           *       *       *       *       *       *       *

SEC. 1303. STATE ALLOCATIONS.

  [(a) State Allocations.--Each State (other than the 
Commonwealth of Puerto Rico) is entitled to receive under this 
part, for each fiscal year, an amount equal to--
          [(1) the sum of the estimated number of migratory 
        children aged three through 21 who reside in the State 
        full time and the full-time equivalent of the estimated 
        number of migratory children aged three through 21 who 
        reside in the State part time, as determined in 
        accordance with subsection (e); multiplied by
          [(2) 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 than 48 percent, of the average expenditure per 
        pupil in the United States.
  [(b) Allocation to Puerto Rico.--For each fiscal year, the 
amount for which the Commonwealth of Puerto Rico is eligible 
under this section shall be equal to--
          [(1) the number of migratory children in Puerto Rico, 
        determined under subsection (a)(1); multiplied by
          [(2) the product of--
                  [(A) the percentage that the average per-
                pupil expenditure in 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.]
  (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 three through 21 who 
                reside in the State full time and the full-time 
                equivalent of the estimated number of migratory 
                children aged three through 21 who reside in 
                the State part time, as determined in 
                accordance with subsection (d); 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 than 48 
                percent, of the average expenditure per pupil 
                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 
        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--
                  (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 part than it 
        received under this part for the preceding fiscal year, 
        the percentage in paragraph (1) shall be the greater of 
        the percentage in paragraph (1)(A) or the percentage 
        used for the preceding fiscal year.

           *       *       *       *       *       *       *

  [(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
                  [(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)] (d) 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) * * *

           *       *       *       *       *       *       *

SEC. 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 
        comprehensive plan for needs assessment and service 
        delivery that meets the requirements of section 1306;] 
        `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 programs under part A 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;

           *       *       *       *       *       *       *

          (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 
        requirements of paragraph (1);] the numbers and needs 
        of migratory children, the requirements of subsection 
        (d), and the availability of funds from other Federal, 
        State, and local programs;

           *       *       *       *       *       *       *

  (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(b)(1);] 1306(a); and

           *       *       *       *       *       *       *

          (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, section 
        1120, and subsections (b) and (c) of section 1120A, and 
        part [F;] H;
          (3) in the planning and operation of programs and 
        projects at both the State and local operating agency 
        level, there is [appropriate] consultation with parent 
        advisory councils for programs of one school year in 
        duration, and that all such programs and projects are 
        carried [out, to the extent feasible,] out in a manner 
        consistent with section [1118;] 1118, unless 
        extraordinary circumstances make implementation 
        consistent with such section impractical;

           *       *       *       *       *       *       *

          (7) the State will assist the Secretary in 
        determining the number of migratory children under 
        [section 1303(e)] paragraphs (1)(A) and (2)(B)(i) of 
        section 1303(a), through such procedures as the 
        Secretary may require.

           *       *       *       *       *       *       *

[SEC. 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, the Goals 2000: Educate America Act, 
                or other Acts, as appropriate, consistent with 
                section 14306;
                  [(B) may be submitted as a part of 
                consolidated application under section 14302;
                  [(C) provides that migratory children will 
                have an opportunity to meet the same 
                challenging State content standards and 
                challenging State student performance 
                standards, set out in such plans, 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 bilingual education 
                programs under part A of title VII; 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) In general.--In implementing the comprehensive 
        plan described in subsection (a), each local operating 
        agency shall have the flexibility to determine the 
        activities to be provided with funds made available 
        under this part, except that--
          [(A) before funds under this part are used to provide 
        services described in subparagraph (B), such funds 
        shall be used to meet the identified needs of migratory 
        children that--
                          [(i) result from the effects of their 
                        migratory lifestyle, or are needed to 
                        permit migratory children to 
                        participate effectively in school; and
                          [(ii) are not addressed by services 
                        provided under other programs, 
                        including programs under part A; and
                  [(B) all migratory children who are eligible 
                to receive services under part A shall receive 
                such services with funds provided under this 
                part or under part A.
          [(2) Construction.--Nothing in this part shall be 
        construed to prohibit a local operating agency from 
        serving migrant students simultaneously with students 
        with similar educational needs, in the same educational 
        settings where appropriate.
          [(3) Special rule.--Notwithstanding section 1114, a 
        school that receives funds under this part shall 
        continue to address the identified needs described in 
        paragraph (1)(A).]

SEC. 1306. AUTHORIZED ACTIVITIES.

  (a) In General.--
          (1) Flexibility.--Each State educational agency, 
        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 shall first 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 of this title 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).
  (b) 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.
  (c) Special Rule.--Notwithstanding section 1114, a school 
that receives funds under this part shall continue to address 
the identified needs described in subsection (a)(1).

           *       *       *       *       *       *       *

SEC. 1308. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

  (a) Improvement of Coordination.--
          (1) * * *
          (2) Duration.--Grants under this [subpart] subsection 
        may be awarded for not more than five years.
  [(b) Assistance and Reporting.--
          [(1) Student records.--(A) The Secretary shall 
        solicit information on how student records are 
        transferred from one school to another and shall 
        solicit recommendations on whether new procedures and 
        technologies for record transfer should be employed to 
        better meet the needs of the migrant population.
          [(B) The Secretary shall also seek recommendations on 
        the most effective means for determining the number of 
        students or full-time equivalent students in each State 
        for the purpose of allocating funds under this part.
          [(2) Report to congress.--(A) Not later than April 
        30, 1995, the Secretary shall report to the Committee 
        on Labor and Human Resources of the Senate and the 
        Committee on Education and Labor of the House of 
        Representatives the Secretary's findings and 
        recommendations, and shall include in this report, 
        recommendations for interim measures that may be taken 
        to ensure continuity of services in this program.
          [(B) The Secretary shall assist States in developing 
        effective methods for the transfer of student records 
        and in determining the number of students or full-time 
        equivalent students in each State if such interim 
        measures are required.]
  (b) Student Records.--
          (1) Assistance.--The Secretary shall assist States in 
        developing effective methods for the transfer of 
        student records and in determining the number of 
        migratory children in each State. The Secretary, in 
        consultation with the States, shall determine the 
        minimum data elements that each State receiving funds 
        under this part shall collect and maintain. The 
        Secretary shall assist States to implement a system of 
        linking their student record transfer systems for the 
        purpose of electronic records maintenance and transfer 
        for migrant students.
          (2) 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 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.
  (c) Availability of Funds.--For the purpose of carrying out 
this section in any fiscal year, the Secretary shall reserve 
not more than [$6,000,000] $10,000,000 of the amount 
appropriated to carry out this part for such year.
  [(d) Incentive Grants.--
          [(1) In general.--From the amounts made available to 
        carry out this section, the Secretary shall reserve not 
        more than $1,500,000 to award, on a competitive basis, 
        grants in the amount of not more than $250,000 to State 
        educational agencies with consortium agreements under 
        section 1303(d).
          [(2) Limitation.--Not less than 10 of such grants 
        shall be awarded to States which receive allocations of 
        less than $1,000,000 if such States have approved 
        agreements.]
  (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.

           *       *       *       *       *       *       *

 [PART D--PREVENTION AND INTERVENTION PROGRAMS FOR CHILDREN AND YOUTH 
       WHO ARE NEGLECTED, DELINQUENT, OR AT RISK OF DROPPING OUT]

     PART D--PREVENTION AND INTERVENTION PROGRAMS FOR NEGLECTED OR 
                     DELINQUENT CHILDREN AND YOUTH

SEC. 1401. FINDINGS; PURPOSE; PROGRAM AUTHORIZED.

  (a) Findings.--Congress finds the following:
          (1) * * *

           *       *       *       *       *       *       *

          [(6) A continuing need exists for activities and 
        programs to reduce the incidence of youth dropping out 
        of school.
          [(7) Federal dropout prevention programs have 
        demonstrated effectiveness in keeping children and 
        youth in school.
          [(8) Pregnant and parenting teens are a high at-risk 
        group for dropping out of school and should be targeted 
        by dropout prevention programs.
          [(9) Such youth need a strong dropout prevention 
        program which provides such youth with high level 
        skills and which provides supports to youth returning 
        from correctional facilities in order to keep such 
        youth in school.]
          (6) Youth returning from correctional facilities need 
        to be involved in programs that provide them with high-
        level skills and other support to help them stay in 
        school and complete their education.
          (7) Pregnant and parenting teenagers are a high-at-
        risk group for dropping out of school and should be 
        targeted by dropout prevention programs.

           *       *       *       *       *       *       *

Subpart 1--State Agency Programs

           *       *       *       *       *       *       *

SEC. 1412. ALLOCATION OF FUNDS.

  (a) * * *
  [(b) Subgrants to State Agencies in Puerto Rico.--For each 
fiscal year, the amount of the subgrant for which a State 
agency in the Commonwealth of Puerto Rico is eligible under 
this part shall be equal to--
          [(1) the number of children and youth counted under 
        subsection (a)(1) for the Commonwealth of Puerto Rico; 
        multiplied by
          [(2) the product of--
                  [(A) 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
                  [(B) 32 percent of the average per-pupil 
                expenditure in the United States.]
  (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 
        part shall be the amount determined by multiplying the 
        number of children counted under subparagraph (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--
                  (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 part than it 
        received under this part for the preceding fiscal year, 
        the percentage in paragraph (1) shall be the greater of 
        the percentage in paragraph (1)(A) or the percentage 
        used for the preceding fiscal year.

           *       *       *       *       *       *       *

[SEC. 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 part shall 
        submit, for approval by the Secretary, a plan for 
        meeting the needs of neglected and delinquent youth 
        and, where applicable, youth at risk of dropping out of 
        school which is integrated with other programs under 
        this Act, the Goals 2000: Educate America Act, or other 
        Acts, as appropriate, consistent with section 14306.
          [(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 
                academic and vocational skills of children in 
                the program;
                  [(B) provide that, to the extent feasible, 
                such children will have the same opportunities 
                to learn as such children would have if such 
                children were in the schools of local 
                educational agencies in the State; and
                  [(C) contain assurances that the State 
                educational agency will--
                          [(i) ensure that programs assisted 
                        under this part will be carried out in 
                        accordance with the State plan 
                        described in this subsection;
                          [(ii) carry out the evaluation 
                        requirements of section 1416;
                          [(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; Peer Review.--
          [(1) In general.--The Secretary shall approve each 
        State plan that meets the requirements of this part.
          [(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 part 
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;
          [(2) provides assurances that in making services 
        available to youth in adult correctional facilities, 
        priority will be given to such 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 under this subpart;
          [(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 agency will carry out the 
        evaluation requirements of section 14701 and how the 
        results of the most recent evaluation are used to plan 
        and improve the program;
          [(7) includes data showing that the agency has 
        maintained fiscal effort required of a local 
        educational agency, in accordance with section 14501 of 
        this title;
          [(8) describes how the programs will be coordinated 
        with other appropriate State and Federal programs, such 
        as programs under or title I of the Workforce 
        Investment Act of 1998, vocational education programs, 
        State and local dropout prevention programs, and 
        special education programs;
          [(9) describes how appropriate professional 
        development will be provided to teachers and other 
        staff;
          [(10) designates an individual in each affected 
        institution to be responsible for issues relating to 
        the transition of children and youth from the 
        institution to locally operated programs;
          [(11) describes how the agency will, endeavor to 
        coordinate with businesses for training and mentoring 
        for participating youth;
          [(12) provides assurances that the agency will assist 
        in locating alternative programs through which students 
        can continue their education if students are not 
        returning to school after leaving the correctional 
        facility;
          [(13) provides assurances that the agency will work 
        with parents to secure parents' assistance in improving 
        the educational achievement of their children and 
        preventing their children's further involvement in 
        delinquent activities;
          [(14) provides assurances that the agency works with 
        special education youth in order to meet an existing 
        individualized education program and an assurance that 
        the agency will notify the youth's local school if such 
        youth--
                  [(A) is identified as in need of special 
                education services while the youth is in the 
                facility; and
                  [(B) intends to return to the local school;
          [(15) provides assurances that the agency will work 
        with youth who dropped out of school before entering 
        the facility to encourage the youth to reenter school 
        once the term of the youth has been completed or 
        provide the youth with the skills necessary to gain 
        employment, continue the education of the youth, or 
        achieve a secondary school diploma or the recognized 
        equivalent if the youth does not intend to return to 
        school;
          [(16) provides assurances that teachers and other 
        qualified staff are also trained to work with children 
        with disabilities and other students with special needs 
        taking into consideration the unique needs of such 
        students;
          [(17) describes any additional services provided to 
        youth, such as career counseling, and assistance in 
        securing student loans and grants; and
          [(18) provides assurances that the program under this 
        subpart will be coordinated with any programs operated 
        under the Juvenile Justice and Delinquency Prevention 
        Act of 1974 or other comparable programs, if 
        applicable.]

SEC. 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 part shall 
        submit, for approval by the Secretary, a plan for 
        meeting the educational needs of neglected and 
        delinquent youth, for assisting in their transition 
        from institutions to locally operated programs, and 
        which is integrated with other programs under this Act 
        or other Acts, as appropriate, consistent with section 
        8306.
          (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 
                academic and vocational and technical skills of 
                children in the program;
                  (B) provide that, to the extent feasible, 
                such children will have the same opportunities 
                to learn as such children would have if such 
                children were in the schools of local 
                educational agencies in the State; and
                  (C) contain assurances that the State 
                educational agency will--
                          (i) ensure that programs assisted 
                        under this part will be carried out in 
                        accordance with the State plan 
                        described in this subsection;
                          (ii) carry out the evaluation 
                        requirements of section 1416;
                          (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 part.
          (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 part 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;
          (2) provides assurances that in making services 
        available to youth in adult correctional facilities, 
        priority will be given to such 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 under this subpart;
          (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 agency will carry out the 
        evaluation requirements of section 8651 and how the 
        results of the most recent evaluation are used to plan 
        and improve the program;
          (7) includes data showing that the agency has 
        maintained fiscal effort required of a local 
        educational agency, in accordance with section 8501;
          (8) describes how the programs will be coordinated 
        with other appropriate State and Federal programs, such 
        as job training programs, vocational and technical 
        education programs, State and local dropout prevention 
        programs, and special education programs;
          (9) describes how States will encourage correctional 
        facilities receiving funds under this subpart to 
        coordinate with local educational agencies or 
        alternative education programs attended by incarcerated 
        youth prior to their incarceration to ensure that 
        student assessments and appropriate academic records 
        are shared jointly between the 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 
        institution to be responsible for issues relating to 
        the transition of children and youth from the 
        institution to locally operated programs;
          (12) describes how the agency will endeavor to 
        coordinate with businesses for training and mentoring 
        for participating youth;
          (13) provides assurances that the agency will assist 
        in locating alternative programs through which students 
        can continue their education if students are not 
        returning to school after leaving the correctional 
        facility;
          (14) provides assurances that the agency will work 
        with parents to secure parents' assistance in improving 
        the educational achievement of their children and 
        preventing their children's further involvement in 
        delinquent activities;
          (15) provides assurances that the agency works with 
        special education youth in order to meet an existing 
        individualized education program and an assurance that 
        the agency will notify the youth's local school if such 
        youth--
                  (A) is identified as in need of special 
                education services while the youth is in the 
                facility; and
                  (B) intends to return to the local school;
          (16) provides assurances that the agency will work 
        with youth who dropped out of school before entering 
        the facility to encourage the youth to reenter school 
        once the term of incarceration has been completed or 
        provide the youth with the skills necessary to gain 
        employment, continue the education of the youth, or 
        achieve a secondary school diploma or the recognized 
        equivalent if the youth does not intend to return to 
        school;
          (17) provides assurances that teachers and other 
        qualified staff are also trained to work with children 
        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 youth, such as career counseling, distance learning, 
        and assistance in securing student loans and grants; 
        and
          (19) provides assurances 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.

SEC. 1415. USE OF FUNDS.

  (a) In General.--
          (1) Uses.--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 and skills needed to make a 
                successful transition to secondary school 
                completion, vocational and 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 identified by the 
                        State agency as failing, or most at 
                        risk of failing, to meet the State's 
                        challenging State content standards and 
                        challenging State student performance 
                        standards; and
                          (ii) supplement and improve the 
                        quality of the educational services 
                        provided to such children by the State 
                        agency[; and];
                          [(iii) afford such children an 
                        opportunity to learn to such 
                        challenging State standards;]
                  (C) shall be carried out in a manner 
                consistent with section 1120A and [part F of 
                this title] part H; and
                  (D) may include the costs of meeting the 
                evaluation requirements of section [14701] 
                8651.

           *       *       *       *       *       *       *

SEC. 1418. TRANSITION SERVICES.

  (a) Transition Services.--Each State agency shall reserve not 
more than [10] 15 percent of the amount such agency receives 
under this subpart for any fiscal year to support projects that 
facilitate the transition of children from State-operated 
institutions to local educational agencies.

           *       *       *       *       *       *       *

                    Subpart 2--Local Agency Programs

SEC. 1421. PURPOSE.

  The purpose of this subpart is to support the operation of 
local educational agency programs which involve collaboration 
with locally operated correctional facilities to--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) operate dropout prevention programs in local 
        schools for youth at risk of dropping out of school and 
        youth returning from correctional facilities.]
          (3) operate programs in local schools for youth 
        returning from correctional facilities and programs 
        which may also serve youth at risk of dropping out of 
        school.

SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

  (a) Local Subgrants.--With funds [retained] made available 
under section 1402(b), the State educational agency shall award 
subgrants to local educational agencies with high numbers or 
percentages of youth residing in locally operated (including 
county operated) correctional facilities for youth (including 
facilities involved in day programs).
  [(b) Special Rule.--A local educational agency which includes 
a correctional facility that operates a school is not required 
to operate a dropout prevention program if more than 30 percent 
of the youth attending such facility will reside outside the 
boundaries of the local educational agency upon leaving such 
facility.]
  (b) Special Rule.--A local educational agency which includes 
a correctional facility that operates a school is not required 
to operate a program of support for children returning from 
such school to a school not operated by a correctional agency 
but served by such local educational agency if more than 30 
percent of the youth attending the school operated by the 
correctional facility will reside outside the boundaries of the 
local educational agency after leaving such facility.

           *       *       *       *       *       *       *

  (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. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

  Eligible local educational agencies desiring assistance under 
this section shall submit an application to the State 
educational agency, containing such information as the State 
educational agency may require. Each such application shall 
include--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) as appropriate, a description of the dropout 
        prevention program operated by participating schools 
        and the types of services such schools will provide to 
        at-risk youth in participating schools and youth 
        returning from correctional facilities;
          [(5) as appropriate, a description of the youth 
        expected to be served by the dropout prevention program 
        and how the school will be coordinating existing 
        educational programs to meet unique education needs;
          [(6) as appropriate, a description of how schools 
        will coordinate with existing social and health 
        services to meet the needs of students at risk of 
        dropping out of school and other participating 
        students, including prenatal health care and nutrition 
        services related to the health of the parent and child, 
        parenting and child development classes, child care, 
        targeted re-entry and outreach programs, referrals to 
        community resources, and scheduling flexibility;
          [(7) as appropriate, a description of any 
        partnerships with local businesses to develop training 
        and mentoring services for participating students;
          [(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 
        the Workforce Investment Act of 1998 and vocational 
        education programs serving this at-risk population of 
        youth;]
          (4) a description of the program operated by 
        participating schools for children returning from 
        correctional facilities and the types of services that 
        such schools will provide such youth and other at-risk 
        youth;
          (5) a description of the characteristics (including 
        learning difficulties, substance abuse problems, and 
        other special needs) of the youth who will be returning 
        from correctional facilities and, as appropriate, other 
        at-risk youth expected to be served by the program and 
        how the school will coordinate existing educational 
        programs to meet the unique educational needs of such 
        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, students at risk of dropping 
        out of school, and other participating students, 
        including prenatal health care and nutrition services 
        related to the health of the parent and child, 
        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;
          (8) as appropriate, a description of how programs 
        will involve parents in efforts to improve the 
        educational achievement of their children, prevent the 
        involvement of their children in delinquent activities, 
        and encourage their children to remain in school and 
        complete their education;
          (9) a description of how the program under this 
        subpart will be coordinated with other Federal, State, 
        and local programs, such as job training programs and 
        vocational and technical education programs serving 
        this at-risk population of youth.

           *       *       *       *       *       *       *

SEC. 1424. USES OF FUNDS.

  Funds provided to local educational agencies under this 
subpart may be used, where appropriate, for--
          [(1) dropout prevention programs which serve youth at 
        educational risk, including pregnant and parenting 
        teens, youth who have come in contact with the juvenile 
        justice system, youth at least one year behind their 
        expected grade level, migrant youth, immigrant youth, 
        students with limited-English proficiency and gang 
        members;
          [(2) the coordination of health and social services 
        for such individuals if there is a likelihood that the 
        provision of such services, including day care and drug 
        and alcohol counseling, will improve the likelihood 
        such individuals will complete their education; and
          [(3) programs to meet the unique education needs of 
        youth at risk of dropping out of school, which may 
        include vocational education, special education, career 
        counseling, and assistance in securing student loans or 
        grants.]
          (1) programs that serve youth returning from 
        correctional facilities to local schools, to assist in 
        the transition of such youth to the school environment 
        and help them remain in school in order to complete 
        their education;
          (2) providing assistance to other youth at risk of 
        dropping out of school, including pregnant and 
        parenting teenagers;
          (3) the coordination of social, health, and other 
        services, including day care, for participating youth, 
        if the provision of such services will improve the 
        likelihood that such youth will complete their 
        education;
          (4) special programs to meet the unique academic 
        needs of participating 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. 1425. PROGRAM REQUIREMENTS FOR CORRECTIONAL FACILITIES RECEIVING 
                    FUNDS UNDER [THIS SECTION] THIS SUBPART.

  Each correctional facility entering into an agreement with a 
local educational agency under section 1422(a) to provide 
services to youth under this [section] subpart shall--
          (1) [where feasible, ensure educational programs] to 
        the extent practicable, ensure that educational 
        programs in juvenile facilities are coordinated with 
        the student's home school, particularly with respect to 
        special education students with an individualized 
        education program;

           *       *       *       *       *       *       *

          (3) [where feasible,] to the extent practicable, 
        provide transition assistance to help the 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;

           *       *       *       *       *       *       *

          (8) [where feasible,] to the extent practicable, 
        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 [program] 
        subpart with other local, State, and Federal funds 
        available to provide services to participating youth, 
        such as funds made available under [title I of the 
        Workforce Investment Act of 1998] other job training 
        programs, 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 (42 U.S.C. 5601 et 
        seq.) and other comparable programs, if applicable; and
          [(11) if appropriate, work with local businesses to 
        develop training and mentoring programs for 
        participating youth.]
          (11) if appropriate, work with local businesses to 
        develop training, curriculum-based youth 
        entrepreneurship education, and mentoring programs for 
        youth.

           *       *       *       *       *       *       *

                     Subpart 3--General Provisions

SEC. 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 [sex, and if feasible,] gender, by race, 
ethnicity, and age, not less than once every three years to 
determine the program's impact on the ability of participants 
to--
          (1) * * *

           *       *       *       *       *       *       *

  PART E--FEDERAL EVALUATIONS, DEMONSTRATIONS, AND TRANSITION PROJECTS

[SEC. 1501. EVALUATIONS.

  [(a) National Assessment.--
          [(1) In general.--The Secretary shall conduct a 
        national assessment of programs assisted under this 
        title, in coordination with the ongoing National 
        Evaluation under subsection (b) that shall be planned, 
        reviewed, and conducted in consultation with an 
        independent panel of researchers, State practitioners, 
        local practitioners, and other appropriate individuals.
          [(2) Examination.--The assessment shall examine how 
        well schools, local educational agencies, and States 
        are--
                  [(A) progressing toward the goal of all 
                children served under this title reaching the 
                State's challenging State content standards and 
                challenging State student performance 
                standards; and
                  [(B) accomplishing the purpose set forth in 
                section 1001(d) to achieve the goal described 
                in paragraph (1), including--
                          [(i) ensuring challenging State 
                        content standards and challenging State 
                        student performance standards for all 
                        children served under this title and 
                        aligning the efforts of States, local 
                        educational agencies, and schools to 
                        help such children reach such 
                        standards;
                          [(ii) providing children served under 
                        this title an enriched and accelerated 
                        educational program through schoolwide 
                        programs or through additional services 
                        that increase the amount and quality of 
                        instructional time that such children 
                        receive;
                          [(iii) promoting schoolwide reform 
                        and access for all children served 
                        under this title to effective 
                        instructional strategies and 
                        challenging academic content;
                          [(iv) significantly upgrading the 
                        quality of the curriculum and 
                        instruction by providing staff in 
                        participating schools with substantial 
                        opportunities for professional 
                        development;
                          [(v) coordinating services provided 
                        under all parts of this title with each 
                        other, with other educational and pupil 
                        services, including preschool services, 
                        and, to the extent feasible, with 
                        health and social service programs 
                        funded from other sources;
                          [(vi) affording parents of children 
                        served under this title meaningful 
                        opportunities to participate in the 
                        education of their children at home and 
                        at school, such as the provision of 
                        family literacy services;
                          [(vii) distributing resources to 
                        areas where needs are greatest;
                          [(viii) improving accountability, as 
                        well as teaching and learning, by 
                        making assessments under this title 
                        congruent with State assessment 
                        systems; and
                          [(ix) providing greater 
                        decisionmaking authority and 
                        flexibility to schools in exchange for 
                        greater responsibility for student 
                        performance.
          [(3) NAEP information.--Where feasible, the Secretary 
        shall use information gathered from a variety of 
        sources, including the National Assessment of 
        Educational Progress, State evaluations, and available 
        research studies, in carrying out this subsection.
          [(4) Interim and final reports.--The Secretary shall 
        submit to the President and the appropriate committees 
        of the Congress an interim report by January 1, 1996, 
        summarizing the preliminary findings of the assessment 
        and a final report of the findings of the assessment by 
        January 1, 1999.
  [(b) Studies and Data Collection.--
          [(1) In general.--The Secretary may collect such 
        data, as necessary, at the State, local, and school 
        levels and conduct studies and evaluations, including 
        national studies and evaluations, to assess on an 
        ongoing basis the effectiveness of programs under this 
        title and to report on such effectiveness on a periodic 
        basis. The Secretary shall report not later than 
        December 31, 1997 to the Committee on Education and 
        Labor of the House of Representatives and the Committee 
        on Labor and Human Resources of the Senate on how 
        schoolwide programs are meeting the needs of children 
        from migratory families.
          [(2) Minimum information.--At a minimum, the 
        Secretary shall collect trend information on the effect 
        of programs under this title. Such data shall 
        complement the data collected and reported under 
        subsections (a) and (c).
  [(c) National Evaluation of Part A of Title I.--
          [(1) In general.--The Secretary shall carry out an 
        ongoing evaluation of the program assisted under part A 
        of title I in order to provide the public, the 
        Congress, and educators involved in such program, an 
        accurate description of the short- and long-term 
        effectiveness of such program and to provide 
        information that can be used to improve such program's 
        effectiveness in enabling students to meet challenging 
        State content standards and challenging State student 
        performance standards, graduate from secondary school, 
        and make successful transitions to postsecondary 
        education and work. Such evaluation shall--
                  [(A) have a longitudinal design that tracks 
                cohorts of students within schools of differing 
                poverty concentrations for at least three years 
                which, when the cohorts are taken as a whole, 
                provides a picture of such program's 
                effectiveness over the elementary and secondary 
                grades;
                  [(B) be separate and independent from State 
                and local assessments and evaluations as 
                required under this title;
                  [(C) utilize the highest available content 
                standards that are generally accepted as 
                national in scope;
                  [(D) provide information on all students, 
                students served under part A, and, if funds are 
                sufficient, information on students from low-
                income families, limited-English-proficient 
                students, and students with disabilities; and
                  [(E) when feasible, collect, cross-tabulate, 
                and report data by sex within race or ethnicity 
                and socioeconomic status.
          [(2) Use.--The Secretary shall use the results of the 
        evaluation described in paragraph (1) as part of the 
        national assessment required by subsection (a) and 
        shall report the data from such evaluation to the 
        Congress and the public at least as frequently as 
        reports are made under subsection (a)(4).
  [(d) Developmentally Appropriate Measures.--In conducting the 
national assessment under subsection (a) and the national 
ongoing evaluation under subsection (c), the Secretary shall 
use developmentally appropriate measures to assess student 
performance and progress.
  [(e) Parental Involvement, Study, Report and Dissemination.--
          [(1) In general.--The Secretary, through the Office 
        of Education Research and Improvement, shall conduct a 
        study to identify and describe--
                  [(A) common barriers to effective parental 
                involvement in the education of participating 
                children; and
                  [(B) successful local policies and programs 
                which improve parental involvement and the 
                performance of participating children.
          [(2) Duties of secretary.--The Secretary shall--
                  [(A) complete such study by December 31, 
                1996;
                  [(B) report the findings of such study to the 
                Committee on Education and Labor of the House 
                of Representatives and to the Committee on 
                Labor and Human Resources of the Senate; and
                  [(C) disseminate the findings, relating to 
                the successful local policies and programs 
                which improve parental involvement and the 
                performance of participating children, to local 
                educational agencies.]

SEC. 1501. EVALUATIONS.

  (a) National Assessment.--
          (1) In general.--In accordance with this section, the 
        Secretary shall conduct a national assessment of 
        programs assisted under this title.
          (2) Issues to be examined.--In conducting the 
        assessment under this subsection, the Secretary shall 
        examine--
                  (A) the implementation of programs assisted 
                under this title and the impact of such 
                implementation on increasing student academic 
                achievement, particularly schools with high 
                concentrations of children living in poverty;
                  (B) the implementation of State standards, 
                assessments, and accountability systems 
                developed under this title and the impact of 
                such implementation on educational programs and 
                instruction at the local level;
                  (C) the impact of schoolwide programs and 
                targeted assistance programs under this title 
                on improving student academic achievement;
                  (D) the extent to which varying models of 
                comprehensive school reform are funded under 
                this title, and the effect of the 
                implementation of such models on improving 
                achievement of disadvantaged students;
                  (E) the costs as compared to the benefits of 
                the activities assisted under this title;
                  (F) the impact of school choice options under 
                section 1116 on the academic achievement of 
                disadvantaged students, on schools in school 
                improvement, and on schools from which students 
                have transferred under such options;
                  (G) the extent to which actions authorized 
                under section 1116 of this title are employed 
                by State and local educational agencies to 
                improve the academic achievement of students in 
                low-performing schools, and the effectiveness 
                of the implementation of such actions;
                  (H) the extent to which technical assistance 
                made available under this title is used to 
                improve the achievement of students in low-
                performing schools, and the impact of such 
                assistance on such achievement;
                  (I) the extent to which State and local 
                fiscal accounting requirements under this title 
                limit the flexibility of schoolwide programs;
                  (J) the impact of the professional 
                development activities assisted under this 
                title on instruction and student performance;
                  (K) the extent to which the assistance made 
                available under this title is targeted to 
                disadvantaged students and schools that need 
                them the most;
                  (L) the effectiveness of Federal 
                administration assistance made available under 
                this title, including monitoring and technical 
                assistance; and
                  (M) 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 (20 U.S.C. 9010)), 
        state evaluations, and other research studies.
          (4) Coordination.--In carrying out this subsection, 
        the Secretary shall--
                  (A) coordinate conducting the national 
                assessment with conducting 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, including 
                planning for and reviewing the assessment.
          (5) Reports.--
                  (A) Interim report.--Not later than 3 years 
                after the date of enactment of the Leave No 
                Child Behind Act of 2001, the Secretary shall 
                transmit to the President and the Congress an 
                interim report on the national assessment 
                conducted under this subsection.
                  (B) Final report.--Not later than 4 years 
                after the date of enactment of the Leave No 
                Child Behind Act of 2001, the Secretary shall 
                transmit to the President and the Congress 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 the making of grants to or contracts with 
        appropriate entities--
                  (A) conduct studies and evaluations of the 
                need for, and effectiveness of, each program 
                authorized 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 can develop program 
                performance indicators in order to improve 
                services and performance.
          (2) Minimum information.--Under 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 this title.
          (2) Issues to be examined.--In carrying out this 
        subsection, the Secretary shall ensure that the study 
        referred to in paragraph (1) provides the Congress and 
        educators with each of the following:
                  (A) An accurate description and analysis of 
                short-term and long-term effectiveness of the 
                assistance made available under this title upon 
                academic performance.
                  (B) Information that can be used to improve 
                the effectiveness of the assistance made 
                available under this title in enabling students 
                to meet challenging 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 
                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 part;
                  (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) 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; and
                          (iii) other individuals with 
                        technical expertise who would 
                        contribute to the overall rigor and 
                        quality of the program evaluation.
                  (B) Limitations.--In appointing members of 
                the Review Panel under this subparagraph (A), 
                the Secretary shall ensure that--
                          (i) in order to ensure diversity, a 
                        majority of the number of individuals 
                        appointed under subparagraph (A)(i) 
                        represent disciplines or programs 
                        outside the field of education; and
                          (ii) the total number of the 
                        individuals appointed under 
                        subparagraph (A)(ii) or (A)(iii) does 
                        not exceed \1/3\ 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--
                          (i) that the final report described 
                        in subsection (a)(5)(B) is reviewed not 
                        later than 120 days after its 
                        completion by not less than 2 
                        independent experts in program 
                        evaluation;
                          (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)(5)(B).

SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

  [(a) Demonstration Programs To Improve Achievement.--
          [(1) In general.--From the]
  (a) In General.--From the funds appropriated for any fiscal 
year under section 1002(g)(2), the Secretary may make 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 performance standards] student 
achievement standards. [Such projects shall include promising 
strategies such as--
                  [(A) accelerated curricula, the application 
                of new technologies to improve teaching and 
                learning, extended learning time, and a safe 
                and enriched full-day environment for children 
                to provide children the opportunity to reach 
                such standards;
                  [(B) integration of education services with 
                each other and with health, family, and other 
                social services such as mentoring programs, 
                particularly in empowerment zones and 
                enterprise communities;
                  [(C) effective approaches to whole school 
                reform;
                  [(D) programs that have been especially 
                effective with limited-English-proficient 
                children, migratory children and other highly 
                mobile students, children leaving institutions 
                for neglected or delinquent children and 
                returning to school, and homeless children and 
                youth;
                  [(E) programs which are especially effective 
                in recruiting, inducting, and retaining highly 
                qualified teachers for service in schools with 
                low student achievement; and
                  [(F) programs that are built upon 
                partnerships developed between elementary and 
                middle schools, employers, and the community, 
                which emphasize the integration of high quality 
                academic and vocational learning, stress 
                excellence and high expectations for success in 
                academic subjects, instill responsibility, 
                decisionmaking, problem solving, interpersonal 
                skills, and other compentencies in students, 
                and make school relevant to the workplace and 
                the community, through applied and interactive 
                teaching methodologies, team teaching 
                strategies, learning opportunities connecting 
                school, the workplace, and the community, and 
                career exploration, awareness, and career 
                guidance opportunities.]
          [(2) Evaluation.--The Secretary]
  (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.
  [(b)] (c) Partnerships.--From funds appropriated under 
section 1002(g)(2) 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. 1503. ELLENDER-CLOSE UP FELLOWSHIP PROGRAM

  (a) Findings.--Congress finds the following:
          (1) It is a worthwhile goal to ensure that all 
        students in America are prepared for responsible 
        citizenship and that all students should have the 
        opportunity to be involved in activities that promote 
        and demonstrate good citizenship.
          (2) It is a worthwhile goal to ensure that America's 
        educators have access to programs for the continued 
        improvement of their professional skills.
          (3) Allen J. Ellender, a Senator from Louisiana and 
        President pro tempore of the United States Senate, had 
        a distinguished career in public service characterized 
        by extraordinary energy and real concern for young 
        people. Senator Ellender provided valuable support and 
        encouragement to the Close Up Foundation, a 
        nonpartisan, nonprofit foundation promoting knowledge 
        and understanding of the Federal Government among young 
        people and educators. Therefore, it is a fitting and 
        appropriate tribute to Senator Ellender to provide 
        fellowships in his name to students of limited economic 
        means and the teachers who work with such students, so 
        that such students and teachers may participate in the 
        programs supported by the Close Up Foundation.
          (4) The Close Up Foundation is a nonpartisan, 
        nonprofit, education foundation promoting civic 
        responsibility and knowledge and understanding of the 
        Federal Government among young people and educators. 
        The Congress has consistently supported the Close Up 
        Foundation's work with disadvantaged young people and 
        their educators through the Allen J. Ellender 
        Fellowship Program. Therefore, it is fitting and 
        appropriate to continue support under the successor 
        Ellender-Close Up Fellowship Program to students of 
        limited economic means and the teachers who work with 
        such students, so that such students and teachers may 
        participate in the programs supported by the Close Up 
        Foundation.
  (b) Program for Middle 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 Federal Government among 
                middle 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 
                program described in subparagraph (A). 
                Financial assistance received pursuant to this 
                subsection by such students shall be known as 
                Ellender-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 provisions to assure--
                          (i) that fellowship grants are made 
                        to economically disadvantaged middle 
                        and secondary school students;
                          (ii) that every effort will be made 
                        to ensure the participation of students 
                        from rural and small town areas, as 
                        well as from urban areas, and that in 
                        awarding fellowships to economically 
                        disadvantaged students, special 
                        consideration will be given to the 
                        participation of students with special 
                        educational needs, including students 
                        with disabilities, ethnic minority 
                        students, recent immigrants, and gifted 
                        and talented students; and
                          (iii) the proper disbursement of the 
                        funds received under this subsection.
  (c) Program for Middle 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 
                and secondary school teachers and to promote 
                greater civic understanding and responsibility 
                among the students of such teachers.
  (B) Use of funds.--Grants under this subsection shall be used 
only for financial assistance to teachers who participate in 
the program described in subparagraph (A). Financial assistance 
received pursuant to this subpart by such individuals shall be 
known as Ellender-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 provisions to assure--
                          (i) that fellowship grants are made 
                        only to teachers who have worked with 
                        at least one student from such 
                        teacher's school who participates in 
                        the programs described in subsection 
                        (b);
                          (ii) that no teacher in each school 
                        participating in the programs assisted 
                        under subsection (b) may receive more 
                        than one fellowship in any fiscal year; 
                        and
                          (iii) the proper disbursement of the 
                        funds received under this subsection.
  (d) Programs for Recent Immigrants and Students of Migrant 
Parents.--
          (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 understanding of the 
                Federal Government among economically 
                disadvantaged recent immigrants and students of 
                migrant parents.
                  (B) Use of funds.--Grants under this 
                subsection shall be used for financial 
                assistance to economically disadvantaged older 
                Americans, recent immigrants and students of 
                migrant parents who participate in the program 
                described in subsection (a). Financial 
                assistance received pursuant to this subpart by 
                such individuals shall be known as Ellender-
                Close Up fellowships.
          (2) Applications.--
                  (A) Application Required.--No grant under 
                this subsection may be made except upon 
                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 provisions--
                          (i) to assure that fellowship grants 
                        are made to economically disadvantaged 
                        recent immigrants and students of 
                        migrant parents;
                          (ii) to assure that every effort will 
                        be made to ensure the participation of 
                        recent immigrants and students of 
                        migrant parents from rural and small 
                        town areas, as well as from urban 
                        areas, and that in awarding 
                        fellowships, special consideration will 
                        be given to the participation of recent 
                        immigrants and students of migrant 
                        parents with special needs, including 
                        individuals with disabilities, ethnic 
                        minorities, and gifted and talented 
                        students;
                          (iii) that fully describe the 
                        activities to be carried out with the 
                        proceeds of the grant; and
                          (iv) to assure the proper 
                        disbursement of the funds received 
                        under this subsection.
  (e) General Provisions.--
          (1) Administrative provisions.--
                  (A) General rule.--Payments under this 
                section may be made in installments, in 
                advance, or by way of reimbursement, with 
                necessary adjustments on account of 
                underpayment or overpayment.
                  (B) 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.
  (f) Limitation.--Of the funds appropriated to carry out this 
section under section 1002, the Secretary may use not more than 
30 percent to carry out subsection (c) of this section.

SEC. 1504. DROPOUT REPORTING.

  State eduational agencies receiving funds under this title 
shall annually report to the National Center on Education 
Statistics (established under section 403 of the National 
Education Statistics Act of 1994 (20 U.S.C. 9002)) on the 
dropout rate of students in the State, as defined for the 
Center's Common Core of Data.

                      [PART F--GENERAL PROVISIONS

[SEC. 1601. FEDERAL REGULATIONS.

  [(a) In General.--The Secretary is authorized to issue such 
regulations as are necessary to reasonably ensure that there is 
compliance with this title.
  [(b) Negotiated Rulemaking Process.--
          [(1) In general.--Prior to 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, and 
        members of local boards of education involved with the 
        implementation and operation of programs under this 
        title.
          [(2) Meetings and electronic exchange.--Such advice 
        and recommendation may be obtained through such 
        mechanisms as regional meetings and electronic 
        exchanges of information.
          [(3) Proposed regulations.--After obtaining such 
        advice and recommendations, and prior to publishing 
        proposed regulations, the Secretary shall--
                  [(A) establish a negotiated rulemaking 
                process on a minimum of two key issues, 
                including--
                          [(i) schoolwide programs; and
                          [(ii) standards and assessment;
                  [(B) select individuals to participate in 
                such process from among individuals or groups 
                which provided advice and recommendations, 
                including representation from all geographic 
                regions of the United States; and
                  [(C) prepare a draft of proposed policy 
                options that shall be provided to the 
                individuals selected by the Secretary under 
                subparagraph (A) not less than 15 days prior to 
                the first meeting under such process.
          [(4) Process.--Such process--
                  [(A) shall be conducted in a timely manner to 
                ensure that final regulations are issued by the 
                Secretary not later than July 1, 1995; 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 with a very limited time to assist State 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 prior to 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. 1602. COORDINATION OF FEDERAL, STATE, AND LOCAL ADMINISTRATION.

  [(a) Program Assistance Manual.--The Secretary shall, not 
later than six months after the publication of final 
regulations under this title, prepare and distribute to State 
educational agencies, State agencies operating programs under 
parts C and D, and local educational agencies, and shall make 
available to parents and other interested individuals, 
organizations, and agencies, a manual for this title to--
          [(1) assist such agencies in--
                  [(A) enhancing the quality, increasing the 
                depth, or broadening the scope of activities 
                for programs under this title;
                  [(B) applying for program funds under this 
                title; and
                  [(C) meeting the program objectives under 
                this title;
          [(2) assist State educational agencies in achieving 
        proper and efficient administration of programs funded 
        under this title;
          [(3) assist parents to become involved in the 
        planning for, and implementation and evaluation of, 
        programs and projects under this title; and
          [(4) ensure that officers and employees of the 
        Department, including officers and employees of the 
        Secretary and officers and employees of the Department 
        charged with auditing programs carried on under this 
        title, uniformly interpret, apply, and enforce 
        requirements under this title throughout the United 
        States.
  [(b) Contents of Policy Manual.--The policy manual shall, 
with respect to programs carried out under this title, contain 
descriptions, statements, procedural and substantive rules, 
opinions, policy statements and interpretations and indices to 
and amendments of the foregoing, and in particular, whether or 
not such descriptions, statements, procedural and substantive 
rules, opinions, policy statements and interpretations and 
indices are required under section 552 of title 5, United 
States Code, to be published or made available. The manual 
shall include--
          [(1) a statement of the requirements applicable to 
        the programs carried out under this title, including 
        such requirements contained in this title, the General 
        Education Provisions Act, other applicable statutes, 
        and regulations issued under the authority of such 
        statutes;
          [(2) an explanation of the purpose of each 
        requirement and its interrelationship with other 
        applicable requirements; and
          [(3) model forms and instructions developed by the 
        Secretary for use by State and local educational 
        agencies, at the discretion of such agencies, 
        including, application forms, application review 
        checklists, and instruments for monitoring programs 
        under this title.
  [(c) Response to Inquiries.--The Secretary shall respond with 
written guidance not later than 90 days after any written 
request (return receipt requested) from a State or local 
educational agency regarding a policy, question, or 
interpretation under this title is received. In the case of a 
request from a local educational agency, such agency is 
required to address its request to the State educational agency 
first.

[SEC. 1603. 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 
                under subsection (b) for their review and 
                comment;
                  [(B) minimize such rules, regulations, and 
                policies to which their local educational 
                agencies and schools are subject; and
                  [(C) 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 content 
        standards and challenging State student performance 
        standards.
  [(b) Committee of Practitioners.--
          [(1) In general.--Each State educational agency shall 
        create a State committee of practitioners to advise the 
        State in carrying out its responsibilities under this 
        title.
          [(2) Membership.--Each such committee shall include--
                  [(A) as a majority of its members, 
                representatives from local educational 
                agencies;
                  [(B) administrators;
                  [(C) teachers, including vocational 
                educators;
                  [(D) parents;
                  [(E) members of local boards of education;
                  [(F) representatives of private school 
                children; and
                  [(G) pupil services personnel.
          [(3) Duties.--The duties of such committee shall 
        include a review, prior to 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 prior to issuance in final form.
  [(c) Payment for State Administration.--Each State may 
reserve for the proper and efficient performance of its duties 
under this title the greater of--
          [(1) 1.00 percent of the funds received under 
        subsections (a), (c), and (d) of section 1002; or
          [(2) $400,000, or $50,000 in the case of the outlying 
        areas.

[SEC. 1604. CONSTRUCTION.

  [(a) Prohibition of 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 or pupil performance 
standards and assessments, curriculum, or program of 
instruction as a condition of eligibility to receive funds 
under this title.
  [(b) Equalized Spending.--Nothing in this title shall be 
construed to mandate equalized spending per pupil for a State, 
local educational agency, or school.
  [(c) Building Standards.--Nothing in this title shall be 
construed to mandate national school building standards for a 
State, local educational agency, or school.]

                  PART F--COMPREHENSIVE SCHOOL REFORM

SEC. 1601. COMPREHENSIVE SCHOOL REFORM.

  (a) Findings and Purpose.--
          (1) Findings.--Congress finds the following:
                  (A) A number of schools across the country 
                have shown impressive gains in student 
                performance through the use of comprehensive 
                models for schoolwide change that incorporate 
                virtually all aspects of school operations.
                  (B) No single comprehensive school reform 
                model may be suitable for every school, 
                however, schools should be encouraged to 
                examine successful, externally developed 
                comprehensive school reform approaches as they 
                undertake comprehensive school reform.
                  (C) Comprehensive school reform is an 
                important means by which children are assisted 
                in meeting challenging State student academic 
                achievement standards.
          (2) Purpose.--The purpose of this section 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 content and academic achievement 
        standards.
  (b) Program Authorized.--
          (1) In general.--The Secretary is authorized to 
        provide grants to State educational agencies to provide 
        subgrants to local educational agencies to carry out 
        the purpose described in subsection (a)(2).
          (2) Allocation.--
                  (A) Reservation.--Of the amount appropriated 
                under this section, the Secretary may reserve--
                          (i) not more than 1 percent for 
                        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;
                          (ii) not more than 1 percent to 
                        conduct national evaluation activities 
                        described under subsection (e); and
                          (iii) not more than 2 percent of the 
                        amount appropriated in fiscal year 2002 
                        to carry out this part, for quality 
                        initiatives described under subsection 
                        (f).
                  (B) In general.--Of the amount of funds 
                remaining after the reservation under 
                subparagraph (A), the Secretary shall allocate 
                to each State for a 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 allocated 
                under section 1124 to all States for that year.
                  (C) Reallocation.--If a State does not apply 
                for funds under this section, the Secretary 
                shall reallocate such funds to other States 
                that do apply in proportion to the amount 
                allocated to such States under subparagraph 
                (B).
  (c) State Awards.--
          (1) State application.--
                  (A) In general.--Each 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 and 
                containing such other information as the 
                Secretary may reasonably require.
                  (B) Contents.--Each State application shall 
                also describe--
                          (i) the process and selection 
                        criteria by which the State educational 
                        agency, using expert review, will 
                        select local educational agencies to 
                        receive subgrants under this section;
                          (ii) how the agency will ensure that 
                        funds under this part are used only for 
                        comprehensive school reform programs 
                        that--
                                  (I) include each of the 
                                components described in 
                                subsection (d)(2);
                                  (II) have the capacity to 
                                improve the academic 
                                achievement of all students in 
                                core academic subjects within 
                                participating schools; and
                                  (III) are supported by 
                                technical assistance providers 
                                that have a successful track 
                                record, financial stability, 
                                and the capacity to deliver 
                                high-quality materials and 
                                professional development for 
                                school personnel.
                          (iii) how the agency will disseminate 
                        materials regarding information on 
                        comprehensive school reforms that are 
                        based on scientifically-based research 
                        and effective practices;
                          (iv) how the agency will evaluate 
                        annually the implementation of such 
                        reforms and measure the extent to which 
                        the reforms resulted in increased 
                        student academic performance; and
                          (v) how the 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.
          (2) Uses of funds.--
                  (A) In general.--Except as provided in 
                subparagraph (E), a State educational agency 
                that receives an award under this section shall 
                use such funds to provide competitive grants to 
                local educational agencies or consortia of 
                local educational agencies in the State 
                receiving funds under part A to support 
                comprehensive school reforms in schools 
                eligible for funds under such part.
                  (B) Grant requirements.--A grant to a local 
                educational agency or consortium shall be--
                          (i) of sufficient size and scope to 
                        support the initial costs of the 
                        comprehensive school reforms selected 
                        or designed by each school identified 
                        in the application of the local 
                        educational agency or consortium;
                          (ii) in an amount not less than 
                        $50,000 to each participating school; 
                        and
                          (iii) renewable for two additional 1-
                        year periods after the initial 1-year 
                        grant is made if schools are making 
                        substantial progress in the 
                        implementation of their reforms.
                  (C) Priority.--The State, in awarding grants 
                under this paragraph, shall give priority to 
                local educational agencies that--
                          (i) plan to use the funds in schools 
                        identified as being in need of 
                        improvement or corrective action under 
                        section 1116(c); or
                          (ii) 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 making subgrant 
                awards under this part, the State educational 
                agency shall take into account the equitable 
                distribution of awards 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 award 
                under this section may reserve not more than 5 
                percent of such award for administrative, 
                evaluation, and technical assistance expenses.
                  (F) Supplement.--Funds made available under 
                this section shall be used to supplement, not 
                supplant, any other Federal, State, or local 
                funds that would otherwise be available to 
                carry out this section.
          (3) Reporting.--Each State educational agency that 
        receives an award under this section shall provide to 
        the Secretary such information as the Secretary may 
        require, including the names of local educational 
        agencies and schools selected to receive subgrant 
        awards under this section, the amount of such award, a 
        description of the comprehensive school reforms 
        selected and in use and a copy of the State's annual 
        evaluation of the implementation of comprehensive 
        school reforms supported under this part and student 
        achievement results.
  (d) Local Awards.--
          (1) In general.--Each local educational agency or 
        consortium that applies for a subgrant under this 
        section shall--
                  (A) identify which schools eligible for funds 
                under part A plan to implement a comprehensive 
                school reform program, including the projected 
                costs of such a program;
                  (B) describe the comprehensive school reforms 
                based on scientifically-based research and 
                effective practices that such schools will 
                implement;
                  (C) describe how the agency or consortium 
                will provide technical assistance and support 
                for the effective implementation of the school 
                reforms based on scientifically-based research 
                and effective practices selected by such 
                schools; and
                  (D) describe how the agency or consortium 
                will evaluate the implementation of such 
                reforms and measure the results achieved in 
                improving student academic performance.
          (2) Components of the program.--A local educational 
        agency that receives a subgrant award under this 
        section shall provide such funds to schools that 
        implement a comprehensive school reform program that--
                  (A) 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 similar schools;
                  (B) 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 reform plan 
                for schoolwide change designed to enable all 
                students to meet challenging State content and 
                challenging student performance standards and 
                addresses needs identified through a school 
                needs assessment;
                  (C) provides high-quality and continuous 
                teacher and staff professional development;
                  (D) includes measurable goals for student 
                performance and benchmarks for meeting such 
                goals;
                  (E) is supported by teachers, principals, 
                administrators, and other professional staff;
                  (F) provides for the meaningful involvement 
                of parents and the local community in planning 
                and implementing school improvement activities;
                  (G) uses high quality external technical 
                support and assistance from an entity, which 
                may be an institution of higher education, with 
                experience and expertise in schoolwide reform 
                and improvement;
                  (H) includes a plan for the annual evaluation 
                of the implementation of school reforms and the 
                student results achieved;
                  (I) identifies how other resources, including 
                Federal, State, local, and private resources, 
                available to the school will be used to 
                coordinate services to support and sustain the 
                school reform effort; and
                  (J)(i) has been found, through rigorous field 
                experiments in multiple sites, to significantly 
                improve the academic performance of students 
                participating in such activity or program as 
                compared to similar students in similar 
                schools, who have not participated in such 
                activity or program; or
                  (ii) has been found to have strong evidence 
                that such model will significantly improve the 
                performance of participating children.
          (3) 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 its own comprehensive school reform 
        program for schoolwide change that complies with 
        paragraph (2).
  (e) Evaluation and Report.--
          (1) In general.--The Secretary shall develop a plan 
        for a national evaluation of the programs developed 
        pursuant to this section.
          (2) Evaluation.--This national evaluation shall 
        evaluate the implementation and results achieved by 
        schools after 3 years of implementing comprehensive 
        school reforms, and assess the effectiveness of 
        comprehensive school reforms in schools with diverse 
        characteristics.
          (3) Reports.--Prior to the completion of a national 
        evaluation, the Secretary shall submit an interim 
        report outlining first year implementation activities 
        to the Committees on Education and the Workforce and 
        Appropriations of the House of Representatives and the 
        Committees on Health, Education, Labor, and Pensions 
        and Appropriations of the Senate.
  (f) Quality Initiatives.--The Secretary, through grants or 
contracts, shall provide funds for the following activities:
          (1) Technical assistance.--A joint public and private 
        partnership that receives matching funds from private 
        organizations, in order to assist States, local 
        educational agencies, and schools in making informed 
        decisions when approving or selecting providers of 
        comprehensive school reform, consistent with the 
        requirements described in subsection (d)(3).
          (2) Other activities.--Other activities that--
                  (A) encourage the development of 
                comprehensive reform models;
                  (B) build the capacity of comprehensive 
                school reform providers to increase the number 
                of schools the providers can serve; and
                  (C) ensure that schools served receive high 
                quality services that meet the needs of their 
                teachers and students.

           PART G--RURAL EDUCATION FLEXIBILITY AND ASSISTANCE

SEC. 1701. SHORT TITLE.

  This part may be cited as the ``Rural Education Initiative 
Act''.

SEC. 1702. FINDINGS.

  Congress finds the following:
          (1) While there are rural education initiatives 
        identified at the State and local level, no Federal 
        education policy focuses on the specific and unique 
        needs of rural school districts and schools.
          (2) Small school districts often cannot use Federal 
        grant funds distributed by formula because the formula 
        allocation does not provide enough revenue to carry out 
        the program the grant is intended to fund.
          (3) Rural schools often cannot compete for Federal 
        funding distributed by competitive grants because the 
        schools lack the personnel needed to prepare grant 
        applications and the resources to hire specialists in 
        the writing of Federal grant proposals.
          (4) A critical problem for rural school districts 
        involves the hiring and retention of qualified 
        administrators and certified teachers (especially in 
        reading, science, and mathematics). As a result, 
        teachers in rural schools are almost twice as likely to 
        provide instruction in three or more subject areas than 
        teachers in urban schools. Rural schools also face 
        other tough challenges, such as shrinking local tax 
        bases, high transportation costs, aging buildings, 
        limited course offerings, and limited resources.

                 Subpart 1--Rural Education Flexibility

SEC. 1711. FORMULA GRANT PROGRAM AUTHORIZED.

  (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 in part 
        A of title I, part A of title II, part A of title III, 
        part A of title IV, or part A or B 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) not 
        later than 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) the total number of students in 
                average daily attendance at all of the schools 
                served by the local educational agency is less 
                than 600; 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 of Education; 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 or not to waive the criteria described in 
        paragraph (1)(A)(ii) based on a demonstration by a 
        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.--In this section, the term 
``applicable funding'' means funds provided under part A of 
title II, section 3106, part A of title IV, part A of title V, 
and section 5212(2)(A).
  (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 that 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) Supplement Not Supplant.--Funds used under this section 
shall be used to supplement and not supplant any other Federal, 
State, or local education funds that would otherwise be 
available for the purpose of this subpart.
  (f) Applicable Rule.--Except as otherwise provided in this 
subpart, funds transferred under this subpart are subject to 
each of the rules and requirements applicable to the funds 
allocated by the Secretary under the provision to which the 
transferred funds are transferred.

SEC. 1712. PROGRAM AUTHORIZED.

  (a) In General.--The Secretary is authorized to award grants 
to eligible local educational agencies under section 1711(b) to 
enable the local educational agencies to support local or 
statewide education reform efforts intended to improve the 
academic achievement of elementary school and secondary school 
students and the quality of instruction provided for the 
students.
  (b) Allocation.--
          (1) In general.--Except as provided in paragraph (3), 
        the Secretary shall award a grant to an eligible local 
        educational agency under section 1711(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 under the provisions of 
        law described under section 1711(c) for the preceding 
        fiscal year.
          (2) Determination of the initial amount.--The initial 
        amount referred to in paragraph (1) is equal to $100 
        multiplied by the total number of students, over 50 
        students, in average daily attendance in such eligible 
        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 
                for this subpart 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.
          (4) Census determination.--
                  (A) In general.--Each local educational 
                agency desiring a grant under this section 
                shall conduct a census not later than December 
                1 of each year to determine the number of 
                kindergarten through grade 12 students in 
                average daily attendance at the schools served 
                by the local educational agency.
                  (B) Submission.--Each local educational 
                agency shall submit the number described in 
                subparagraph (A) to the Secretary not later 
                than March 1 of each year.
  (c) Disbursal.--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 year.
  (d) Special Rule.--A local educational agency that is 
eligible to receive a grant under this subpart for a fiscal 
year shall be ineligible to receive funds for such fiscal year 
under subpart 2.
  (e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other 
Federal, State, or local education funds.

SEC. 1713. ACCOUNTABILITY.

  (a) Academic Achievement.--
          (1) In general.--Each local educational agency that 
        uses or receives funds under section 1711 or 1712 for a 
        fiscal year shall administer an assessment consistent 
        with section 1111.
          (2) Special rule.--Each local educational agency that 
        uses or receives funds under section 1711 or 1712 shall 
        use the same assessment described in paragraph (1) for 
        each year of participation in the program under such 
        section.
  (b) State Educational Agency Determination Regarding 
Continuing Participation.--Each State educational agency that 
receives funding under the provisions of law described in 
section 1711(c) shall--
          (1) after the second year that a local educational 
        agency participates in a program under section 1711 or 
        1712 and on the basis of the results of the assessments 
        described in subsection (a), determine whether the 
        schools served by the local educational agency 
        participating in the program performed in accordance 
        with section 1111; and
          (2) only permit those local educational agencies that 
        so participated and make adequate yearly progress, as 
        described in section 1111(b)(2), to continue to so 
        participate.

                 Subpart 2--Rural Education Assistance

SEC. 1721. PROGRAM AUTHORIZED.

  (a) Reservations.--From amounts appropriated under section 
1002(f) for this subpart for a fiscal year, the Secretary shall 
reserve \1/2\ of 1 percent to make awards to elementary or 
secondary schools operated or supported by the Bureau of Indian 
Affairs to carry out the purpose of this subpart.
  (b) Grants to States.--
          (1) In general.--From amounts appropriated under 
        section 1002(f) for this subpart that are not reserved 
        under subsection (a), the Secretary shall award grants 
        for a fiscal year to State educational agencies that 
        have applications approved under section 1723 to enable 
        the State educational agencies to award subgrants to 
        eligible local educational agencies for local 
        authorized activities described in subsection (c)(2).
          (2) Allocation.--From amounts appropriated for this 
        subpart, the Secretary shall allocate to each State 
        educational agency for a fiscal year an amount that 
        bears the same ratio to the amount of funds 
        appropriated under section 1002(f) for this subpart 
        that are not reserved under subsection (a) as the 
        number of students in average daily attendance served 
        by eligible local educational agencies in the State 
        bears to the number of all such students served by 
        eligible local educational agencies in all States for 
        that fiscal year.
          (3) Direct awards to specially qualified agencies.--
                  (A) Nonparticipating state.--If a State 
                educational agency elects not to participate in 
                the program under this subpart or does not have 
                an application approved under section 1723 a 
                specially qualified agency in such State 
                desiring a grant under this subpart shall 
                submit an application under such section 
                directly to the Secretary to receive an award 
                under this subpart.
                  (B) Direct awards to specially qualified 
                agencies.--The Secretary may award, on a 
                competitive basis, the amount the State 
                educational agency is eligible to receive under 
                paragraph (2) directly to specially qualified 
                agencies in the State.
  (c) Local Awards.--
          (1) Eligibility.--A local educational agency shall be 
        eligible to receive funds under this subpart if--
                  (A) 20 percent or more of the children aged 5 
                to 17, inclusive, 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 code of 6, 7, or 8 
                as determined by the Secretary of Education.
          (2) Uses of funds.--Grant funds awarded to local 
        educational agencies or made available to schools under 
        this subpart shall be used for--
                  (A) teacher recruitment and retention, 
                including the use of signing bonuses and other 
                financial incentives;
                  (B) teacher professional development, 
                including programs that train teachers to 
                utilize technology to improve teaching and to 
                train special needs teachers;
                  (C) educational technology, including 
                software and hardware as described in part B of 
                title V;
                  (D) parental involvement activities; or
                  (E) programs to improve student academic 
                achievement.

SEC. 1722. STATE DISTRIBUTION OF FUNDS.

  (a) Award Basis.--A State educational agency shall award 
grants to eligible local educational agencies--
          (1) on a competitive basis; or
          (2) according to a formula based on the number of 
        students in average daily attendance served by the 
        eligible local educational agencies or schools (as 
        appropriate) in the State, as determined by the State.
  (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.

SEC. 1723. APPLICATIONS.

  Each State educational agency and 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. 
Such application shall include specific measurable goals and 
objectives relating to increased student academic achievement, 
decreased student dropout rates, or such other factors that the 
State educational agency or specially qualified agency may 
choose to measure.

SEC. 1724. REPORTS.

  (a) State Reports.--Each State educational agency that 
receives a grant under this subpart shall provide an annual 
report to the Secretary. The report shall describe--
          (1) the method the State educational agency used to 
        award grants to eligible local educational agencies and 
        to provide assistance to schools under this 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 1723.
  (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 1723.
  (c) Report to Congress.--The Secretary shall prepare and 
submit to the Committee on Education and the Workforce for the 
House of Representatives and the Committee on Health, 
Education, Labor, and Pensions for the Senate an annual report. 
The report shall describe--
          (1) the methods the State educational agency used to 
        award grants to eligible local educational agencies and 
        to provide assistance to schools under this subpart;
          (2) how eligible local educational agencies and 
        schools used funds provided under this subpart; and
          (3) progress made in meeting specific measurable 
        educational goals and objectives.

SEC. 1725. PERFORMANCE REVIEW.

  Three years after a State educational agency or specially 
qualified agency receives funds under this part, the Secretary 
shall review the progress of such agency toward achieving the 
goals and objectives included in its application, to determine 
whether the agency has made progress toward meeting such goals 
and objectives. To review the performance of each agency, the 
Secretary shall--
          (1) review the use of funds of such agency under 
        section 1721(c)(2); and
          (2) deny the provision of additional funds in 
        subsequent fiscal years to an agency only if the 
        Secretary determines, after notice and an opportunity 
        for a hearing, that the agency's use of funds has been 
        inadequate to justify continuation of such funding.

SEC. 1726. DEFINITIONS.

  In this subpart--
          (1) The term ``poverty line'' means the poverty line 
        (as defined by the Office of Management and Budget, and 
        revised annually in accordance with section 673(2) of 
        the Community Services Block Grant Act (42 U.S.C. 
        9902(2))) applicable to a family of the size involved.
          (2) The term ``specially qualified agency'' means an 
        eligible local educational agency, located in a State 
        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 section 
        1721(b)(3)(A).

                     Subpart 3--General Provisions

SEC. 1731. DEFINITION.

  In this part, the term ``State'' means each of the 50 States, 
the District of Columbia, and the Commonwealth of Puerto Rico.

                       PART H--GENERAL PROVISIONS

SEC. 1801. FEDERAL REGULATIONS.

  (a) In General.--The Secretary is authorized to issue such 
regulations as are necessary to ensure reasonable compliance 
with this title.
  (b) Negotiated Rulemaking Process.--
          (1) In general.--Prior to 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 boards of 
        education involved with the implementation and 
        operation of programs under this title.
          (2) Meetings and electronic exchange.--Such advice 
        and recommendation may be obtained through such 
        mechanisms as regional meetings and electronic 
        exchanges of information.
          (3) Proposed regulations.--After obtaining such 
        advice and recommendations, and prior to publishing 
        proposed regulations, the Secretary shall--
                  (A) establish a negotiated rulemaking process 
                on a minimum of three key issues, including--
                          (i) accountability;
                          (ii) implementation of assessments; 
                        and
                          (iii) use of paraprofessionals;
                  (B) select individuals to participate in such 
                process from among individuals or groups which 
                provided advice and recommendations, including 
                representation from all geographic regions of 
                the United States; and
                  (C) prepare a draft of proposed regulations 
                that shall be provided to the individuals 
                selected by the Secretary under subparagraph 
                (B) not less than 15 days prior to the first 
                meeting under such process.
          (4) Process.--Such process--
                  (A) shall be conducted in a timely manner to 
                ensure that final regulations are issued by the 
                Secretary not later than 1 year after the date 
                of the 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 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 prior to 
                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. 1802. AGREEMENTS AND RECORDS.

  (a) Agreements.--All published proposed regulations shall 
conform to agreements that result from negotiated rulemaking 
described in section 1801 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. 1803. 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 under subsection 
                (b) for their review and comment;
                  (B) minimize such rules, regulations, and 
                policies to which their 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 shall 
        create a State committee of practitioners to advise the 
        State in carrying out its responsibilities under this 
        title.
          (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 boards of education;
                  (F) representatives of private school 
                children; and
                  (G) pupil services personnel.
          (3) Duties.--The duties of such committee shall 
        include a review, prior to 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 prior to issuance in final form.

SEC. 1804. LOCAL ADMINISTRATIVE COST LIMITATION.

  (a) Local Administrative Cost Limitation.--Each local 
educational agency may use not more than 4 percent of funds 
received under part A for administrative expenses.
  (b) Regulations.--The Secretary, after consulting with State 
and local officials and other experts in school finance, shall 
develop and issue regulations that define the term 
administrative cost for purposes of this title. Such definition 
shall be consistent with generally accepted accounting 
principles. The Secretary shall publish final regulations on 
this section not later than 1 year after the date of the 
enactment of the No Child Left Behind Act of 2001.

SEC. 1805. APPLICABILITY.

  Nothing in this title shall be construed to affect home 
schools nor shall any home schooled student be required to 
participate in any assessment referenced in this title.

SEC. 1806. PRIVATE SCHOOLS.

  Nothing in this title shall be construed to affect any 
private school that does not receive funds or services under 
this title, nor shall any student who attends a private school 
that does not receive funds or services under this title be 
required to participate in any assessment referenced in this 
title.

SEC. 1807. PRIVACY OF ASSESSMENT RESULTS.

  Any results from individual assessments referenced in this 
title which become part of the education records of the student 
shall have the protections as provided in section 444 of the 
General Education Provisions Act.

    [TITLE II--DWIGHT D. EISENHOWER PROFESSIONAL DEVELOPMENT PROGRAM

[SEC. 2001. FINDINGS.

  [The Congress finds as follows:
          [(1) Reaching the National Education Goals, 
        particularly the third, fourth, and fifth National 
        Education Goals, requires a comprehensive educational 
        reform strategy that involves parents, schools, 
        government, communities, and other public and private 
        organizations at all levels.
          [(2) A crucial component of the strategy for 
        achieving such goals is ensuring, through sustained and 
        intensive high-quality professional development, that 
        all teachers will provide challenging learning 
        experiences in the core academic subjects for their 
        students.
          [(3) Decisionmaking as to what activities a State or 
        local educational agency should undertake to improve 
        teaching and learning are best made by individuals in 
        the schools closest to the classroom and most 
        knowledgeable about the needs of schools and students.
          [(4) The potential positive impact of high-quality 
        professional development is underscored by recent 
        research findings that--
                  [(A) professional development must be focused 
                on teaching and learning in order to improve 
                the opportunities of all students to achieve 
                higher standards;
                  [(B) effective professional development 
                focuses on discipline-based knowledge and 
                effective subject-specific pedagogical skills, 
                involves teams of teachers, and, where 
                appropriate, administrators and pupil services 
                personnel, in a school and, through 
                professional networks of teachers, and, where 
                appropriate, teacher educators, administrators, 
                pupil services personnel, and parents, is 
                interactive and collaborative, motivates by its 
                intrinsic content and relationship to practice, 
                builds on experience and learning-by-doing, and 
                becomes incorporated into the everyday life of 
                the school;
                  [(C) professional development can 
                dramatically improve classroom instruction and 
                learning when teachers, and, where appropriate, 
                administrators, pupil services personnel, and 
                parents, are partners in the development and 
                implementation of such professional 
                development; and
                  [(D) new and innovative strategies for 
                teaching to high standards will require time 
                for teachers, outside of the time spent 
                teaching, for instruction, practice, and 
                collegial collaboration.
          [(5) Special attention must be given in professional 
        development activities to ensure that education 
        professionals are knowledgeable of, and make use of, 
        strategies for serving populations that historically 
        have lacked access to equal opportunities for advanced 
        learning and career advancement.
          [(6) Professional development is often a victim of 
        budget reductions in fiscally difficult times.
          [(7) The Federal Government has a vital role in 
        helping States and local educational agencies to make 
        sustained and intensive high-quality professional 
        development in the core academic subjects become an 
        integral part of the elementary and secondary education 
        system.
          [(8) Professional development activities must prepare 
        teachers, pupil services personnel, paraprofessionals 
        and other staff in the collaborative skills needed to 
        appropriately teach children with disabilities, in the 
        core academic subjects.
          [(9) Parental involvement is an important aspect of 
        school reform and improvement. There is a need for 
        special attention to ensure the effective involvement 
        of parents in the education of their children. 
        Professional development should include methods and 
        strategies to better prepare teachers and, where 
        appropriate, administrators, to enable parents to 
        participate fully and effectively in their children's 
        education.

[SEC. 2002. PURPOSES.

  [The purposes of this title are to provide assistance to 
State and local educational agencies and to institutions of 
higher education with teacher education programs so that such 
agencies and institutions can determine how best to improve the 
teaching and learning of all students by--
          [(1) helping to ensure that teachers, and, where 
        appropriate, other staff and administrators, have 
        access to sustained and intensive high-quality 
        professional development that is aligned to challenging 
        State content standards and challenging State student 
        performance standards, and to support the development 
        and implementation of sustained and intensive high-
        quality professional development activities in the core 
        academic subjects; and
          [(2) helping to ensure that teachers, and, where 
        appropriate, administrators, other staff, pupil 
        services personnel, and parents, have access to 
        professional development that--
                  [(A) is tied to challenging State content 
                standards and challenging State student 
                performance standards;
                  [(B) reflects recent research on teaching and 
                learning;
                  [(C) includes strong academic content and 
                pedagogical components;
                  [(D) incorporates effective strategies, 
                techniques, methods, and practices for meeting 
                the educational needs of diverse student 
                populations, including females, minorities, 
                individuals with disabilities, limited-English-
                proficient individuals, and economically 
                disadvantaged individuals, in order to ensure 
                that all students have the opportunity to 
                achieve challenging State student performance 
                standards;
                  [(E) is of sufficient intensity and duration 
                to have a positive and lasting impact on the 
                teacher's performance in the classroom; and
                  [(F) is part of the everyday life of the 
                school and creates an orientation toward 
                continuous improvement throughout the school.

[SEC. 2003. AUTHORIZATION OF APPROPRIATIONS; ALLOCATION BETWEEN PARTS.

  [(a) Authorization of Appropriations.--For the purpose of 
carrying out this title (other than part C), there are 
authorized to be appropriated $800,000,000 for fiscal year 1995 
and such sums as may be necessary for each of the four 
succeeding fiscal years.
  [(b) Allocation Between Parts.--Of the amounts appropriated 
to carry out this title for any fiscal year, the Secretary 
shall make available--
          [(1) 5 percent of such amounts to carry out subpart 
        1, of which 5 percent of such 5 percent shall be 
        available to carry out section 2103;
          [(2) 94 percent of such amounts to carry out part B; 
        and
          [(3) 1 percent of such amounts to carry out part D 
        except that such 1 percent shall not exceed $3,200,000 
        in any fiscal year.

                      [PART A--FEDERAL ACTIVITIES

[SEC. 2101. PROGRAM AUTHORIZED.

  [(a) In General.--The Secretary is authorized to make grants 
to, and enter into contracts and cooperative agreements with, 
local educational agencies, educational service agencies, State 
educational agencies, State agencies for higher education, 
institutions of higher education, and other public and private 
agencies, organizations, and institutions to--
          [(1) support activities of national significance that 
        the Secretary determines will contribute to the 
        development and implementation of high-quality 
        professional development activities in the core 
        academic subjects; and
          [(2) evaluate activities carried out under this part 
        and parts B and C, in accordance with section 14701.
  [(b) Requirements.--In carrying out the activities described 
in subsection (a), the Secretary shall coordinate professional 
development programs within the Department, particularly with 
those programs within the Office of Educational Research and 
Improvement and the Office of Special Education and 
Rehabilitative Services, and shall consult and coordinate with 
the National Science Foundation, the National Endowment for the 
Humanities, the National Endowment for the Arts, the Institute 
of Museum and Library Services, and other appropriate Federal 
agencies and entities.

[SEC. 2102. AUTHORIZED ACTIVITIES.

  [(a) Activities.--The Secretary shall use funds available to 
carry out this part for--
          [(1) providing seed money to the entities described 
        in section 2101(a) to develop the capacity of such 
        entities to offer sustained and intensive high-quality 
        professional development;
          [(2) awarding a grant or contract, in consultation 
        with the Director of the National Science Foundation, 
        to establish an Eisenhower National Clearinghouse for 
        Mathematics and Science Education (hereafter in this 
        section referred to as the ``Clearinghouse''); and
          [(3) evaluating programs assisted under this part and 
        parts B and C, in accordance with section 14701.
  [(b) Clearinghouse.--
          [(1) Application and award basis.--Each entity 
        desiring to establish and operate the Clearinghouse 
        authorized by subsection (a)(2) 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 grant or contract 
        awarded pursuant to subsection (a)(2) shall be made on 
        a competitive, merit basis.
          [(2) Duration.--The grant or contract awarded under 
        subsection (a)(2) shall be awarded for a period of five 
        years and shall be reviewed by the Secretary not later 
        than 30 months from the date the grant or contract is 
        awarded.
          [(3) Use of funds.--The grant or contract awarded 
        under subsection (a)(2) shall be used to--
                  [(A) maintain a permanent repository of 
                mathematics and science education instructional 
                materials and programs for elementary and 
                secondary schools, including middle schools 
                (including, to the extent practicable, all 
                materials and programs developed with Federal 
                and non-Federal funds, such as instructional 
                materials developed by the Department, 
                materials developed by State and national 
                mathematics and science programs assisted under 
                this part, and other instructional materials) 
                for use by the regional consortia established 
                under part C of title XIII and by the general 
                public;
                  [(B) compile information on all mathematics 
                and science education programs administered by 
                each Federal agency or department;
                  [(C) disseminate information, programs, and 
                instructional materials to the public, 
                dissemination networks, and the regional 
                consortia established under part C of title 
                XIII;
                  [(D) coordinate with identifiable and 
                existing data bases containing mathematics and 
                science curriculum and instructional materials, 
                including Federal, non-Federal, and, where 
                feasible, international, data bases;
                  [(E) participate in collaborative meetings of 
                representatives of the Clearinghouse and the 
                regional consortia established under part C of 
                title XIII to discuss issues of common interest 
                and concern, to foster effective collaboration 
                and cooperation in acquiring and distributing 
                curriculum materials and programs, and to 
                coordinate computer network access to the 
                Clearinghouse and the resources of the regional 
                consortia, except that not more than 3 percent 
                of the funds awarded under subsection (a)(2) 
                shall be used to carry out this subparagraph; 
                and
                  [(F) gather qualitative and evaluative data 
                on submissions to the Clearinghouse.
          [(4) Submission to clearinghouse.--Each Federal 
        agency or department which develops mathematics or 
        science education instructional material or programs, 
        including the National Science Foundation and the 
        Department, shall submit to the Clearinghouse copies of 
        such material or programs.
          [(5) Peer review.--The Secretary shall establish a 
        peer review process to select the recipient of the 
        award under subsection (a)(2).
          [(6) Steering committee.--The Secretary may appoint a 
        steering committee to recommend policies and activities 
        for the Clearinghouse.
          [(7) Application of copyright laws.--Nothing in this 
        subsection shall be construed to allow the use or 
        copying, in any media, of any material collected by the 
        Clearinghouse that is protected under the copyright 
        laws of the United States unless the permission of the 
        owner of the copyright is obtained. The Clearinghouse, 
        in carrying out the provisions of this subsection, 
        shall ensure compliance with title 17, United States 
        Code.
          [(8) Dissemination of information.--The Secretary 
        shall disseminate information concerning the grant or 
        contract awarded under this section to State and local 
        educational agencies and institutions of higher 
        education. Such dissemination of information shall 
        include examples of exemplary national programs in 
        mathematics and science instruction and necessary 
        technical assistance for the establishment of similar 
        programs.
  [(c) Uses of Funds.--The Secretary may use funds available to 
carry out this part for--
          [(1) the development and maintenance of national 
        clearinghouses for core academic subjects as the 
        Secretary determines are needed and which shall be 
        administered as adjunct clearinghouses of the 
        Educational Resources Information Center Clearinghouses 
        system of clearinghouses supported by the Office of 
        Educational Research and Improvement;
          [(2) professional development institutes that provide 
        teachers or teams of teachers, and, where appropriate, 
        administrators, pupil services personnel and other 
        staff, from individual schools, with professional 
        development that contains strong and integrated 
        disciplinary and pedagogical components;
          [(3) encouraging the development of local and 
        national professional networks, such as the Teacher 
        Research Dissemination Demonstration Program under 
        section 941(j) of the Educational Research, 
        Development, Dissemination, and Improvement Act of 
        1994, that provide a forum for interaction among 
        teachers of the core academic subjects and that allow 
        the exchange of information on advances in content and 
        pedagogy;
          [(4) efforts to train teachers in the innovative uses 
        and applications of technology to enhance student 
        learning;
          [(5) the development and dissemination of model 
        teaching standards in the core academic subjects;
          [(6) disseminating standards in the core academic 
        subjects, including information on voluntary national 
        content standards and voluntary national student 
        performance standards and related models of high-
        quality professional development;
          [(7) the dissemination of information about voluntary 
        national content standards, State content standards, 
        voluntary national student performance standards and 
        State student performance standards, and related models 
        of high-quality professional development;
          [(8) efforts to train teachers in innovative 
        instructional methodologies designed to meet the 
        diverse learning needs of individual students, 
        including methodologies which integrate academic and 
        vocational learning and applied learning, interactive, 
        interdisciplinary team teaching, and other alternative 
        teaching strategies, such as service learning, 
        experiential learning, career-related education, and 
        environmental education, that integrate real world 
        applications into the core academic subjects;
          [(9) disseminating models of high-quality 
        professional development activities that train 
        educators in strategies, techniques, methods, and 
        practices for meeting the educational needs of 
        historically underserved populations, including 
        females, minorities, individuals with disabilities, 
        limited-English-proficient individuals, and 
        economically disadvantaged individuals, in order to 
        ensure that all students have the opportunity to 
        achieve challenging State student performance 
        standards;
          [(10) promoting the transferability of licensure and 
        certification of teachers and administrators among 
        State and local jurisdictions;
          [(11) supporting the National Board for Professional 
        Teaching Standards;
          [(12) developing activities to prepare teachers, and, 
        where appropriate, paraprofessionals, pupil services 
        personnel, and other staff in the collaborative skills 
        needed to appropriately teach children with 
        disabilities in the core academic subjects;
          [(13) encouraging the development of innovative 
        models for recruitment, induction, retention, and 
        assessment of new, highly qualified teachers, 
        especially such teachers from historically 
        underrepresented groups; and
          [(14) joint activities with other Federal agencies 
        and entities engaged in or supporting similar 
        professional development efforts.

[SEC. 2103. NATIONAL TEACHER TRAINING PROJECT.

  [(a) Short Title; Findings; Definitions.--
          [(1) Short title.--This section may be cited as the 
        ``National Teacher Training Project Act of 1994''.
          [(2) Findings.--The Congress finds that--
                  [(A) teachers must be major players in 
                educational reform in the United States;
                  [(B) teachers are isolated from their peers 
                and have virtually no time during the school 
                day to consult with other teachers;
                  [(C) there is a shortage of sustained, year-
                round professional development programs for 
                teachers;
                  [(D) successful teaching methods are not 
                adequately shared among teachers;
                  [(E) teachers are the best teachers of other 
                teachers because practicing classroom teachers 
                have experience that no outside consultant can 
                match;
                  [(F) it is important for universities and 
                schools to collaborate on teacher development 
                programs if teaching and learning are to be 
                improved;
                  [(G) pertinent research is not shared among 
                teachers in a professional setting;
                  [(H) exemplary teachers should be recognized 
                for their abilities and contributions and 
                encouraged to refine their teaching methods;
                  [(I) each State should support a nationally 
                based teacher training program, that is modeled 
                after the National Writing Project, for 
                teachers of early childhood education, and for 
                teachers of core academic subjects including 
                teachers of mathematics, science, English, 
                civics and government, foreign languages, and 
                arts;
                  [(J) the National Writing Project is a 
                nationally recognized and honored nonprofit 
                organization that recognizes there are teachers 
                in every region of the United States who have 
                developed successful methods for teaching 
                writing and that such teachers can be trained 
                and encouraged to train other teachers;
                  [(K) the National Writing Project is a 
                collaborative university-school program which 
                offers summer and school year inservice teacher 
                training programs and a dissemination network 
                to inform and teach teachers regarding 
                developments in the field of writing;
                  [(L) each year, over 125,000 teachers 
                voluntarily seek training in National Writing 
                Project intensive summer institutes and 
                workshops and school year inservice programs 
                through one of the 155 sites located within the 
                United States, and in 18 sites located outside 
                of the United States;
                  [(M) in the 20 years of its existence, over 
                1,100,000 teachers, administrators, and parents 
                have participated in National Writing Project 
                programs;
                  [(N) less than $16 per teacher was the 
                average cost in Federal dollars for all teacher 
                training at writing projects in academic year 
                1991-1992;
                  [(O) for every dollar in Federal support, the 
                National Writing Project provides over $5 in 
                matching funds from States, local universities 
                and schools, and the private sector;
                  [(P) private foundation resources, although 
                generous in the past concerning National 
                Writing Project programs, are inadequate to 
                fund all of the National Teacher Training 
                Project sites needed, and the future of the 
                program is in jeopardy without secure financial 
                support;
                  [(Q) the National Writing Project has become 
                a model for programs in other fields, such as 
                science, mathematics, history, literature, 
                foreign languages, and the performing arts, and 
                the development of programs in other fields 
                should continue with the support of Federal 
                funds; and
                  [(R) each of the 50 States should participate 
                in the National Teacher Training Project by 
                establishing regional teacher training sites in 
                early childhood development, mathematics, 
                science, English, civics and government, 
                foreign languages, and arts to serve all 
                teachers within the State.
          [(3) Definitions.--For the purpose of this section--
                  [(A) the term ``contractor'' means--
                          [(i) a local educational agency;
                          [(ii) an educational service agency; 
                        or
                          [(iii) an institution of higher 
                        education that awards a bachelor's 
                        degree; and
                  [(B) the term ``eligible recipient'' means a 
                nonprofit educational organization which has as 
                its primary purpose the improvement of student 
                learning in one of the core academic subjects 
                described in subsection (b)(2).
  [(b) Grants Authorized.--
          [(1) Grants to eligible recipients.--The Secretary is 
        authorized to award a grant to an eligible recipient to 
        enable such recipient--
                  [(A) to support and promote the establishment 
                of teacher training programs in early childhood 
                development and one of the nine core subject 
                areas described in paragraph (2), including the 
                dissemination of effective practices and 
                research findings regarding teacher training, 
                and administrative activities;
                  [(B) to support classroom research on 
                effective teaching practices in such area; and
                  [(C) to pay the Federal share of the cost of 
                such programs and research.
          [(2) Core subject areas.--To the extent feasible, the 
        Secretary shall award a grant under paragraph (1) for 
        the establishment of a National Teacher Training 
        Project in early childhood development and each of the 
        following core subject areas:
                  [(A) Mathematics.
                  [(B) Science.
                  [(C) English.
                  [(D) Civics and government.
                  [(E) Foreign languages.
                  [(F) Arts.
                  [(G) Geography.
                  [(H) History.
                  [(I) Economics.
          [(3) Number of grants and eligible recipients.--The 
        Secretary shall award not more than ten grants under 
        paragraph (1) to ten different eligible recipients.
          [(4) Equitable distribution.--The Secretary shall 
        award grants under paragraph (1) to eligible recipients 
        from different geographic areas of the United States.
          [(5) Special rule.--Each grant under paragraph (1) 
        shall be of sufficient size, scope, and quality to be 
        effective.
          [(6) Administrative costs and technical assistance.--
        Each eligible recipient receiving a grant under 
        paragraph (1) may use not more than a total of 5 
        percent of the grant funds for administrative costs and 
        the costs of providing technical assistance to a 
        contractor.
  [(c) Grant Requirements.--Each eligible recipient receiving a 
grant under subsection (b) shall--
          [(1) enter into a contract with a contractor under 
        which such contractor agrees--
                  [(A) 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 the core academic 
                subjects for which such eligible recipient was 
                awarded a grant, including approaches and 
                processes to obtain parental involvement in a 
                child's education; and
                  [(B) to use funds received from the eligible 
                recipient to pay the Federal share of the cost 
                of establishing and operating teacher training 
                programs described in subparagraph (A);
          [(2) to submit annual reports to the Secretary and be 
        responsible for oversight of the funds expended at each 
        teacher training program described in subparagraph (A); 
        and
          [(3) meet such other conditions and standards as the 
        Secretary determines to be necessary to ensure 
        compliance with this section and provide such technical 
        assistance as may be necessary to carry out this 
        section.
  [(d) Teacher Training Programs.--The teacher training 
programs described in subsection (b) shall--
          [(1) be conducted during the school year and during 
        the summer months;
          [(2) train teachers who teach grades kindergarten 
        through college;
          [(3) select teachers to become members of a National 
        Teacher Training Project, which members shall conduct 
        inservice workshops for other teachers in the area 
        subject matter served by the National Teacher Training 
        Project site;
          [(4) use teacher training principles and receive 
        technical assistance from the National Writing Project; 
        and
          [(5) encourage teachers from all disciplines to 
        participate in such teacher training programs.
  [(e) Federal Share.--The term ``Federal share'' means, with 
respect to the costs of teacher training programs described in 
subsection (b), 50 percent of such costs to the contractor.
  [(f) Application.--Each eligible recipient 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.
  [(g) Participants and Selection Process.--The selection 
process for participation in a teacher training program 
described in subsection (b) shall--
          [(1) reward exemplary teachers with varying levels of 
        teaching experience who are nominated by other teachers 
        and administrators;
          [(2) involve an application process to select 
        participants for a summer program;
          [(3) ensure the selection of a geographically and 
        ethnically diverse group of teachers by soliciting 
        applications from teachers of both public and private 
        institutions in rural, urban, and suburban settings in 
        each State; and
          [(4) automatically offer a place in a summer program 
        to the ``Teacher of the Year'' chosen pursuant to a 
        Federal or State teacher recognition program.
  [(h) Limitation.--A contractor entering into a contract under 
subsection (c)(1) shall not spend more than 5 percent of funds 
received under the contract for administrative costs.

                  [PART B--STATE AND LOCAL ACTIVITIES

[SEC. 2201. PROGRAM AUTHORIZED.

  [The Secretary is authorized to make grants to State 
educational agencies for the improvement of teaching and 
learning through sustained and intensive high-quality 
professional development activities in the core academic 
subjects at the State and local levels.

[SEC. 2202. ALLOCATION OF FUNDS.

  [(a) Reservation of Funds.--From the amount available to 
carry out this part for any fiscal year, the Secretary shall 
reserve--
          [(1) \1/2\ of 1 percent for the outlying areas, to be 
        distributed among the outlying areas on the basis of 
        their relative need, as determined by the Secretary in 
        accordance with the purposes of this part; and
          [(2) \1/2\ of 1 percent for the Secretary of the 
        Interior for programs under this part for professional 
        development activities for teachers, other staff, and 
        administrators in schools operated or funded by the 
        Bureau of Indian Affairs.
  [(b) State Allocations.--The Secretary shall allocate the 
amount available to carry out this part and not reserved under 
subsection (a) to each of the 50 States, the District of 
Columbia, and the Commonwealth of Puerto Rico as follows, 
except that no State shall receive less than \1/2\ of 1 percent 
of such amount:
          [(1) Fifty percent shall be allocated among such 
        jurisdictions on the basis of their relative 
        populations of individuals aged five through 17, as 
        determined by the Secretary on the basis of the most 
        recent satisfactory data.
          [(2) Fifty percent shall be allocated among such 
        jurisdictions in accordance with the relative amounts 
        such jurisdictions received under part A of title I for 
        the preceding fiscal year, or for fiscal year 1995 
        only, such part's predecessor authority.
  [(c) Reallocation.--If any jurisdiction does not apply for an 
allotment under subsection (b) for any fiscal year, the 
Secretary shall reallocate such amount to the remaining 
jurisdictions in accordance with such subsection.

[SEC. 2203. WITHIN-STATE ALLOCATIONS.

  [Of the amounts received by a State under this part for any 
fiscal year--
          [(1) 84 percent shall be available for local 
        allowable activities under section 2210(b), of which--
                  [(A) not more than 5 percent may be used for 
                the administrative costs of the State 
                educational agency and for State-level 
                activities described in section 2207; and
                  [(B) of the remaining amount--
                          [(i) 50 percent shall be distributed 
                        to local educational agencies--
                                  [(I) for use in accordance 
                                with section 2210; and
                                  [(II) in accordance with the 
                                relative enrollments in public 
                                and private nonprofit 
                                elementary and secondary 
                                schools within the boundaries 
                                of such agencies; and
                          [(ii) 50 percent of such amount shall 
                        be distributed to local educational 
                        agencies--
                                  [(I) for use in accordance 
                                with section 2210; and
                                  [(II) in accordance with the 
                                relative amount such agencies 
                                received under part A of title 
                                I or for fiscal year 1995 for 
                                the preceding fiscal year, such 
                                part's predecessor authority; 
                                and
          [(2) 16 percent shall be available to the State 
        agency for higher education for activities under 
        section 2211, of which not more than 5 percent may be 
        used for the administrative costs of the State agency 
        for higher education.

[SEC. 2204. CONSORTIUM REQUIREMENT.

  [(a) In General.--A local educational agency receiving a 
grant under this part of less than $10,000 shall form a 
consortium with another local educational agency or an 
educational service agency serving another local educational 
agency to be eligible to participate in programs assisted under 
this part.
  [(b) Waiver.--The State educational agency may waive the 
application of paragraph (1) in the case of any local 
educational agency that demonstrates that the amount of its 
allocation under this part is sufficient to provide a program 
of sufficient size, scope, and quality to be effective. In 
granting waivers under the preceding sentence, the State 
educational agency shall--
          [(1) give special consideration to local educational 
        agencies serving rural areas if distances or traveling 
        time between schools make formation of the consortium 
        more costly or less effective; and
          [(2) consider cash or in-kind contributions provided 
        from State or local sources that may be combined with 
        the local educational agency's allocation for the 
        purpose of providing services under this part.
  [(c) Special Rule.--Each consortium shall rely, as much as 
possible, on technology or other arrangements to provide staff 
development programs tailored to the needs of each school or 
school district participating in a consortium described in 
subsection (a).

[SEC. 2205. STATE APPLICATIONS.

  [(a) Applications Required.--Each State educational agency 
that wishes to receive an allotment under this part for any 
fiscal year shall submit an application to the Secretary at 
such time, in such form, and containing such information as the 
Secretary may require.
  [(b) State Plan To Improve Teaching and Learning.--
          [(1) In general.--Each application under this section 
        shall include a State plan that is coordinated with the 
        State's plan under other programs assisted under this 
        Act, the Goals 2000: Educate America Act, and other 
        Acts, as appropriate, consistent with the provisions of 
        section 14306.
          [(2) Contents.--Each such State plan shall--
                  [(A) be developed in conjunction with the 
                State agency for higher education, community-
                based and other nonprofit organizations of 
                demonstrated effectiveness, institutions of 
                higher education or schools of education, and 
                with the extensive participation of local 
                teachers, administrators and pupil services 
                personnel and show the role of each such entity 
                in implementation of the plan;
                  [(B) be designed to give teachers, and, where 
                appropriate, administrators and pupil services 
                personnel in the State, the knowledge and 
                skills necessary to provide all students the 
                opportunity to meet challenging State content 
                standards and challenging State student 
                performance standards;
                  [(C) include an assessment of State and local 
                needs for professional development specifically 
                related to subparagraph (B);
                  [(D) include a description of how the plan 
                has assessed the needs of local educational 
                agencies serving rural and urban areas, and 
                what actions are planned to meet such needs;
                  [(E) include a description of how the 
                activities assisted under this part will 
                address the needs of teachers in schools 
                receiving assistance under part A of title I;
                  [(F) a description of how programs in all 
                core academic subjects, but especially in 
                mathematics and science, will take into account 
                the need for greater access to, and 
                participation in, such disciplines by students 
                from historically underrepresented groups, 
                including females, minorities, individuals with 
                limited English proficiency, the economically 
                disadvantaged, and individuals with 
                disabilities, by incorporating pedagogical 
                strategies and techniques which meet such 
                individuals' educational needs;
                  [(G) be consistent with the State's needs 
                assessment under subparagraph (C), and describe 
                how the State will work with teachers, 
                including teachers in schools receiving 
                assistance under part A of title I, 
                administrators, parents, local educational 
                agencies, schools, educational service 
                agencies, institutions of higher education, and 
                nonprofit organizations of demonstrated 
                effectiveness, to ensure that such individuals 
                develop the capacity to support sustained and 
                intensive, high-quality professional 
                development programs in the core academic 
                subjects;
                  [(H) describe how the State requirements for 
                licensure of teachers and administrators, 
                including certification and recertification, 
                support challenging State content standards and 
                challenging State student performance standards 
                and whether such requirements are aligned with 
                such standards;
                  [(I) address the need for improving teaching 
                and learning through teacher development 
                beginning with recruitment, preservice, and 
                induction, and continuing throughout the 
                professional teaching career, taking into 
                account the need, as determined by the State, 
                for greater access to and participation in the 
                teaching profession by individuals from 
                historically underrepresented groups;
                  [(J) describe how the State will prepare all 
                teachers to teach children with diverse 
                learning needs, including children with 
                disabilities;
                  [(K) describe how the State will prepare 
                teachers, and, where appropriate, 
                paraprofessionals, pupil services personnel, 
                and other staff in the collaborative skills 
                needed to appropriately teach children with 
                disabilities, in the core academic subjects;
                  [(L) describe how the State will use 
                technology, including the emerging national 
                information infrastructure, to enhance the 
                professional development of teachers, and, 
                where appropriate, administrators and pupil 
                services personnel;
                  [(M) describe how the State will provide 
                incentives to teachers and administrators to 
                focus their professional development on 
                preparing such teachers and administrators to 
                provide instruction consistent with challenging 
                State content standards and challenging State 
                student performance standards;
                  [(N) set specific performance indicators for 
                professional development; and
                  [(O) describe how parents can be involved in 
                professional development programs to enhance 
                the participation of parents in the education 
                of their children.
          [(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.
  [(c) Additional Material.--Each State application shall 
include--
          [(1) a description of how the activities assisted 
        under this part will be coordinated, as appropriate, 
        with--
                  [(A) other activities conducted with Federal 
                funds, especially activities supported under 
                part A of title I of this Act and the 
                Individuals with Disabilities Education Act;
                  [(B) programs supported by State and local 
                funds;
                  [(C) resources from business and industry, 
                museums, libraries, educational television 
                stations, and public and private nonprofit 
                organizations of demonstrated experience; and
                  [(D) funds received from other Federal 
                agencies, such as the National Science 
                Foundation, the Departments of Commerce, 
                Energy, and Health and Human Services, the 
                National Endowment for the Arts, the Institute 
                of Museum and Library Services, and the 
                National Endowment for the Humanities; and
          [(2) a description of the activities to be sponsored 
        under the State-level activities under section 2207 and 
        the higher education activities under section 2211.
  [(d) Peer Review and Secretarial Approval.--
          [(1) In general.--The Secretary shall approve an 
        application of a State educational agency under this 
        section if such application meets the requirements of 
        this section and holds reasonable promise of achieving 
        the purposes of this part.
          [(2) Review.--In reviewing applications under this 
        section, the Secretary shall obtain the advice of non-
        Federal experts on education in the core academic 
        subjects and on teacher education, including teachers 
        and administrators.

[SEC. 2206. PRIORITY FOR PROFESSIONAL DEVELOPMENT IN MATHEMATICS AND 
                    SCIENCE.

  [(a) Appropriation of Less Than $250,000,000.--In any fiscal 
year for which the amount appropriated for this title (other 
than part C) is less than $250,000,000, each State shall ensure 
that all funds distributed in accordance with section 
2203(1)(C) are used for professional development in mathematics 
and science.
  [(b) Appropriation Equal To or Above $250,000,000.--In any 
fiscal year for which the amount appropriated for this title 
(other than part C) is equal to or exceeds $250,000,000, each 
State and local educational agency shall use for professional 
development activities in mathematics and science the amount of 
funds that would have been made available to each such agency 
in accordance with sections 2202 and 2203 if the amount 
appropriated was $250,000,000, consistent with subsection (a), 
and are permitted and encouraged to use the amount of funds in 
excess of $250,000,000 that is made available in accordance 
with sections 2202 and 2203 for professional development 
activities in mathematics and science.

[SEC. 2207. STATE-LEVEL ACTIVITIES.

  [Each State may use funds made available under section 
2203(1)(A) to carry out activities described in the plan under 
section 2205(b), such as--
          [(1) reviewing and reforming State requirements for 
        teacher and administrator licensure, including 
        certification and recertification, to align such 
        requirements with the State's challenging State content 
        standards and ensure that teachers and administrators 
        have the knowledge and skills necessary to help 
        students meet challenging State student performance 
        standards;
          [(2) developing performance assessments and peer 
        review procedures, as well as other methods, for 
        licensing teachers and administrators;
          [(3) providing technical assistance to schools and 
        local educational agencies, especially schools and 
        local educational agencies that receive assistance 
        under part A of title I, to help such schools and 
        agencies provide effective professional development in 
        the core academic subjects;
          [(4) developing or supporting professional 
        development networks, either within a State or in a 
        regional consortium of States, that provide a forum for 
        interaction among teachers and that allow exchange of 
        information on advances in content and pedagogy;
          [(5) supporting partnerships between schools, 
        consortia of schools, or local educational agencies and 
        institutions of higher education, including schools of 
        education, which encourage--
                  [(A) teachers to participate in intensive, 
                ongoing professional development programs, both 
                academic and pedagogical, at institutions of 
                higher education; and
                  [(B) students at institutions of higher 
                education studying to become teachers to have 
                direct, practical experience at the schools;
          [(6) providing professional development in the 
        effective use of educational technology as an 
        instructional tool for increasing student understanding 
        of the core academic subjects, including efforts to 
        train teachers in methods of achieving gender equity 
        both in students' access to computers and other 
        educational technology and in teaching practices used 
        in the application of educational technology;
          [(7) providing incentives for teachers to be involved 
        in assessment, curriculum development, and technical 
        assistance processes for teachers and students;
          [(8) providing professional development to enable 
        teachers, and, where appropriate, pupil services 
        personnel, and other school staff, to ensure that girls 
        and young women, minorities, limited English proficient 
        students, individuals with disabilities, and 
        economically disadvantaged students have the full 
        opportunity to achieve challenging State content 
        standards and challenging State student performance 
        standards in the core academic subjects by, for 
        example, encouraging girls and young women and 
        minorities to pursue advanced courses in mathematics 
        and science;
          [(9) professional development and recruitment 
        activities designed to increase the numbers of 
        minorities, individuals with disabilities, and women 
        teaching in the core academic subjects in which such 
        individuals are underrepresented;
          [(10) providing financial or other incentives for 
        teachers to become certified by nationally recognized 
        professional teacher enhancement organizations;
          [(11) providing professional development activities 
        which prepare teachers, and where appropriate, pupil 
        services personnel, paraprofessionals, and other staff 
        in the collaborative skills needed to appropriately 
        teach children with disabilities, in the core academic 
        subjects;
          [(12) identifying, developing, or supporting 
        professional development strategies to better equip 
        parents to assist their children in raising their 
        children's achievement in the core academic subjects; 
        and
          [(13) professional development activities designed to 
        increase the number of women and other underrepresented 
        groups in the administration of schools.

[SEC. 2208. LOCAL PLAN AND APPLICATION FOR IMPROVING TEACHING AND 
                    LEARNING.

  [(a) Local Application.--
          [(1) In general.--Each local educational agency that 
        wishes to receive a subgrant under this part shall 
        submit an application (singly or as a consortium as 
        described in section 2204) to the State educational 
        agency at such time as the State educational agency 
        shall require, but not less frequently than every three 
        years, that is coordinated with other programs under 
        this Act, the Goals 2000: Educate America Act, or other 
        Acts, as appropriate, consistent with the provisions of 
        section 14306.
          [(2) Indicators.--A local educational agency shall 
        set specific performance indicators for improving 
        teaching and learning through professional development.
  [(b) Needs Assessment.--
          [(1) In general.--A local educational agency that 
        wishes to receive a subgrant under this part shall 
        include in its application an assessment of local needs 
        for professional development as identified by the local 
        educational agency and school staff.
          [(2) Requirements.--Such needs assessment shall be 
        carried out with the involvement of teachers, including 
        teachers in schools receiving assistance under part A 
        of title I, and shall take into account what activities 
        need to be conducted in order to give teachers and, 
        where appropriate, administrators, the means, including 
        the knowledge and skills, to provide students with the 
        opportunity to meet challenging State or local student 
        performance standards.
  [(c) Application Contents.--Each application under this 
section shall include the local educational agency's plan for 
professional development that--
          [(1) focuses on teaching and learning in the core 
        academic subjects; and
          [(2) has been developed with the extensive 
        participation of administrators, staff, and pupil 
        services personnel, which teachers shall also be 
        representative of the grade spans within schools to be 
        served and of schools which receive assistance under 
        part A of title I.
  [(d) Plan Contents.--
          [(1) In general.--Based on the needs assessment 
        required under subsection (b), the local educational 
        agency's plan shall--
                  [(A) include a description of how the plan 
                contributes to the local educational agency's 
                overall efforts for school reform and 
                educational improvement;
                  [(B) include a description of how the 
                activities funded under this section will 
                address the needs of teachers in schools 
                receiving assistance under part A of title I;
                  [(C) be aligned with the State's challenging 
                State content standards and challenging State 
                student performance standards;
                  [(D) describe a strategy, tied to challenging 
                State content standards and challenging State 
                student performance standards, consistent with 
                the needs assessment under subsection (b);
                  [(E) be of sufficient intensity and duration 
                to have a positive and lasting impact on the 
                student's performance in the classroom;
                  [(F) describe how programs in all core 
                academic subjects, but especially in 
                mathematics and science, will take into account 
                the need for greater access to, and 
                participation in, such disciplines by students 
                from historically underrepresented groups, 
                including girls and women, minorities, 
                individuals with limited English proficiency, 
                the economically disadvantaged, and individuals 
                with disabilities, by incorporating pedagogical 
                strategies and techniques which meet such 
                individuals' educational need;
                  [(G) contain an assurance that the activities 
                conducted with funds received under this part 
                will be assessed at least every three years 
                using the performance indicators;
                  [(H) describe how the program funded under 
                this part will be coordinated, as appropriate, 
                with--
                          [(i) activities conducted under 
                        section 2131 and other services of 
                        institutions of higher education;
                          [(ii) similar State and local 
                        activities;
                          [(iii) resources provided under part 
                        A of title I and other provisions of 
                        this Act;
                          [(iv) resources from business, 
                        industry, public and private nonprofit 
                        organizations (including museums, 
                        libraries, educational television 
                        stations, community-based 
                        organizations, professional 
                        organizations and associations 
                        specializing in, or with a demonstrated 
                        expertise in the core academic 
                        subjects);
                          [(v) funds or programming from other 
                        Federal agencies, such as the National 
                        Science Foundation, the Department of 
                        Energy, the Department of Health and 
                        Human Services, the Institute of Museum 
                        and Library Services, the National 
                        Endowment for the Humanities, and the 
                        National Endowment for the Arts;
                          [(vi) services of educational service 
                        agencies; and
                          [(vii) resources provided under the 
                        Individuals with Disabilities Education 
                        Act;
                  [(I) identify the sources of funding that 
                will provide the local educational agency's 
                contribution under section 2209; and
                  [(J) describe the professional development 
                strategies to be employed to more fully and 
                effectively involve parents in the education of 
                their children.
          [(2) Duration of the plan.--Each local plan described 
        in subsection (b)(1) shall--
                  [(A) remain in effect for the duration of the 
                local educational agency's participation under 
                this part; and
                  [(B) be periodically reviewed and revised by 
                the local educational agency, as necessary, to 
                reflect changes in the local educational 
                agency's strategies and programs under this 
                part.

[SEC. 2209. LOCAL COST-SHARING.

  [(a) In General.--Each local educational agency shall provide 
not less than 33 percent of the cost of the activities assisted 
under this part, excluding the cost of services provided to 
private school teachers.
  [(b) Available Resources for Cost-Sharing.--
          [(1) In general.--A local educational agency may meet 
        the requirement of subsection (a) through one or more 
        of the following:
                  [(A) Cash expenditures from non-Federal 
                sources, including private contributions, 
                directed toward professional development 
                activities.
                  [(B) Release time for teachers participating 
                in professional development assisted under this 
                part.
                  [(C) Funds received under one or more of the 
                following programs, so long as such funds are 
                used for professional development activities 
                consistent with this part and the statutes 
                under which such funds were received, and are 
                used to benefit students and teachers in 
                schools that otherwise would have been served 
                with such funds:
                          [(i) Helping disadvantaged children 
                        meet high standards under part A of 
                        title I.
                          [(ii) The Safe and Drug-Free Schools 
                        and Communities program under title IV.
                          [(iii) Bilingual Education Programs 
                        under part A of title VII.
                          [(iv) Programs under the Women's 
                        Educational Equity Act of 1994.
                          [(v) Programs under title III of the 
                        Goals 2000: Educate America Act.
                          [(vi) Programs that are related to 
                        the purposes of this Act that are 
                        administered by other Federal agencies, 
                        including the National Science 
                        Foundation, the National Endowment for 
                        the Humanities, the National Endowment 
                        for the Arts, the Institute of Museum 
                        and Library Services, and the 
                        Department of Energy.
                          [(vii) Programs under the Individuals 
                        with Disabilities Education Act.
          [(2) Special rule.--A local educational agency may 
        meet the requirement of subsection (a) through 
        contributions described in paragraph (1) that are 
        provided in cash or in kind, fairly evaluated.
  [(c) Waiver.--The State educational agency may approve an 
application which has not fully met the requirements of 
subsection (a) and waive the requirements of subsection (a) if 
a local educational agency can demonstrate that such agency is 
unable to meet the requirements of subsection (a) due to 
economic hardship and that compliance with such requirements 
would preclude such agency's participation in the program.

[SEC. 2210. LOCAL ALLOCATION OF FUNDS AND ALLOWABLE ACTIVITIES.

  [(a) Local Allocation of Funds.--Each local educational 
agency that receives funds under this part for any fiscal 
year--
          [(1) shall use not less than 80 percent of such funds 
        for professional development of teachers, and, where 
        appropriate, administrators, and, where appropriate, 
        pupil services personnel, parents, and other staff of 
        individual schools in a manner that--
                  [(A) is determined by such teachers and 
                staff;
                  [(B) to the extent practicable, takes place 
                at the individual school site; and
                  [(C) is consistent with the local educational 
                agency's application under section 2208, any 
                school plan under part A of title I, and any 
                other plan for professional development carried 
                out with Federal, State, or local funds that 
                emphasizes sustained, ongoing activities; and
          [(2) may use not more than 20 percent of such funds 
        for school district-level professional development 
        activities, including, where appropriate, the 
        participation of administrators, policymakers, and 
        parents, if such activities directly support 
        instructional personnel.
  [(b) Authorized Activities.--
          [(1) In general.--Each local educational agency and 
        school that receives funds under this part shall use 
        such funds for activities that give teachers and 
        administrators the knowledge and skills to provide 
        students with the opportunity to meet challenging State 
        or local content standards and student performance 
        standards.
          [(2) Professional development activities.--
        Professional development activities funded under this 
        part shall--
                  [(A) be tied to challenging State content 
                standards or challenging local content 
                standards, and challenging State student 
                performance standards or challenging local 
                student performance standards;
                  [(B) take into account recent research on 
                teaching and learning;
                  [(C) provide professional development which 
                incorporates effective strategies, techniques, 
                methods, and practices for meeting the 
                educational needs of diverse groups of 
                students, including girls and women, 
                minorities, individuals with disabilities, 
                limited English proficient individuals, and 
                economically disadvantaged individuals;
                  [(D) include strong academic content and 
                pedagogical components; and
                  [(E) be of sufficient intensity and duration 
                to have a positive and lasting impact on the 
                teacher's performance in the classroom.
          [(3) Activities.--Funds under this part may be used 
        for professional development activities such as--
                  [(A) professional development for teams of 
                teachers, and, where appropriate, 
                administrators, pupil services personnel, or 
                other staff from individual schools, to support 
                teaching consistent with challenging State 
                content standards and challenging State student 
                performance standards;
                  [(B) support and time, which in the case of 
                teachers may include release time with pay, for 
                teachers, and, where appropriate, pupil 
                services personnel and other school staff to 
                enable such teachers, personnel, and staff to 
                participate in professional development in the 
                core academic subjects that are offered through 
                professional associations, universities, 
                community-based organizations, and other 
                providers, such as educational partnership 
                organizations, science centers, and museums;
                  [(C) activities that provide followup for 
                teachers who have participated in professional 
                development activities that are designed to 
                ensure that the knowledge and skills learned by 
                the teacher are implemented in the classroom;
                  [(D) support for partnerships between 
                schools, consortia of schools, or local 
                educational agencies, and institutions of 
                higher education, including schools of 
                education, which partnerships shall encourage--
                          [(i) teachers to participate in 
                        intensive, ongoing professional 
                        development programs, both academic and 
                        pedagogical, at institutions of higher 
                        education; and
                          [(ii) students at institutions of 
                        higher education studying to become 
                        teachers to have direct, practical 
                        experience at schools;
                  [(E) the establishment and maintenance of 
                local professional networks that provide a 
                forum for interaction among teachers and that 
                allow exchange of information on advances in 
                content and pedagogy;
                  [(F) preparing teachers in the effective use 
                of educational technology and assistive 
                technology as instructional tools for 
                increasing student understanding of the core 
                academic subjects;
                  [(G) professional development to enable 
                teachers, and, where appropriate, pupil 
                services personnel and other school staff, to 
                ensure that girls and young women, minorities, 
                limited English proficient students, 
                individuals with disabilities, and the 
                economically disadvantaged have full 
                opportunity to achieve the challenging State 
                content standards and challenging State student 
                performance standards in the core academic 
                subjects;
                  [(H) professional development and recruitment 
                activities designed--
                          [(i) to increase the number of 
                        minorities, individuals with 
                        disabilities, and females teaching in 
                        the core academic subjects in which 
                        such individuals are underrepresented; 
                        and
                          [(ii) to increase the numbers of 
                        women and members of other 
                        underrepresented groups who are science 
                        and mathematics teachers, through such 
                        programs as career ladder programs that 
                        assist educational paraprofessionals to 
                        obtain teaching credentials in the core 
                        academic subjects;
                  [(I) providing financial or other incentives 
                for teachers to become certified by nationally 
                recognized professional teacher enhancement 
                programs;
                  [(J) support and time for teachers, and, 
                where appropriate, pupil services personnel, 
                and other school staff to learn and implement 
                effective collaboration for the instruction of 
                children with disabilities in the core academic 
                subject areas;
                  [(K) preparing teachers, and, where 
                appropriate, pupil services personnel to work 
                with parents and families on fostering student 
                achievement in the core academic subjects;
                  [(L) professional development activities and 
                other support for new teachers as such teachers 
                move into the classroom to provide such 
                teachers with practical support and to increase 
                the retention of such teachers;
                  [(M) professional development for teachers, 
                parents, early childhood educators, 
                administrators, and other staff to support 
                activities and services related to preschool 
                transition programs to raise student 
                performance in the core academic subjects;
                  [(N) professional development activities to 
                train teachers in innovative instructional 
                methodologies designed to meet the diverse 
                learning needs of individual students, 
                including methodologies which integrate 
                academic and vocational learning and applied 
                learning, interactive and interdisciplinary 
                team teaching, and other alternative teaching 
                strategies such as service learning, 
                experiential learning, career-related 
                education, and environmental education, that 
                integrate real world applications into the core 
                academic subjects;
                  [(O) developing professional development 
                strategies and programs to more effectively 
                involve parents in helping their children 
                achieve in the core academic subjects;
                  [(P) professional development activities 
                designed to increase the number of women and 
                other underrepresented groups in the 
                administration of schools; and
                  [(Q) release time with pay for teachers.

[SEC. 2211. HIGHER EDUCATION ACTIVITIES.

  [(a) Activities.--
          [(1) In general.--From amounts made available under 
        section 2203(2), the State agency for higher education, 
        working in conjunction with the State educational 
        agency (if such agencies are separate), shall make 
        grants to, or enter into contracts or cooperative 
        agreements with, institutions of higher education and 
        nonprofit organizations of demonstrated effectiveness, 
        including museums and educational partnership 
        organizations, which must work in conjunction with a 
        local educational agency, consortium of local 
        educational agencies, or schools, for--
                  [(A) professional development activities in 
                the core academic subjects that contribute to 
                the State plan for professional development;
                  [(B) developing and providing assistance to 
                local educational agencies, and the teachers 
                and staff of each such agency, for sustained, 
                high-quality professional development 
                activities; and
                  [(C) improving teacher education programs in 
                order to promote further innovation in teacher 
                education programs within an institution of 
                higher education and to better meet the needs 
                of the local educational agencies for well-
                prepared teachers.
          [(2) Competitive basis.--Each grant, contract, or 
        cooperative agreement described in paragraph (1) shall 
        be awarded on a competitive basis.
          [(3) Special rule.--No institution of higher 
        education may receive assistance under (a)(1) of this 
        subsection unless the institution enters into an 
        agreement with a local educational agency, or 
        consortium of such agencies, to provide sustained, 
        high-quality professional development for the 
        elementary and secondary school teachers in the schools 
        of each such agency.
          [(4) Joint efforts.--Each activity assisted under 
        this section, where applicable, shall involve the joint 
        effort of the institution of higher education's school 
        or department of education, if any, and the schools or 
        departments in the specific disciplines in which such 
        professional development will be provided.
  [(b) Allowable Activities.--A recipient of funds under this 
section shall use such funds for--
          [(1) sustained and intensive high-quality 
        professional development for teams of teachers, or 
        teachers, and, where appropriate, pupil services 
        personnel and administrators from individual schools or 
        school districts;
          [(2) other sustained and intensive professional 
        development activities related to achievement of the 
        State plan for professional development; and
          [(3) preservice training activities.
  [(c) Partnerships.--Each institution of higher education 
receiving a grant under this section may also enter into a 
partnership with a private industry, museum, library, 
educational television station, or public or private nonprofit 
organization of demonstrated experience to carry out 
professional development activities assisted under this 
section.

                  [PART C--READING AND LITERACY GRANTS

[SEC. 2251. PURPOSES.

  [The purposes of this part are as follows:
          [(1) To provide children with the readiness skills 
        they need to learn to read once they enter school.
          [(2) To teach every child to read in the child's 
        early childhood years--
                  [(A) as soon as the child is ready to read; 
                or
                  [(B) as soon as possible once the child 
                enters school, but not later than 3d grade.
          [(3) To improve the reading skills of students, and 
        the instructional practices for current teachers (and, 
        as appropriate, other instructional staff) who teach 
        reading, through the use of findings from 
        scientifically based reading research, including 
        findings relating to phonemic awareness, systematic 
        phonics, fluency, and reading comprehension.
          [(4) To expand the number of high-quality family 
        literacy programs.
          [(5) To provide early literacy intervention to 
        children who are experiencing reading difficulties in 
        order to reduce the number of children who are 
        incorrectly identified as a child with a disability and 
        inappropriately referred to special education.

[SEC. 2252. DEFINITIONS.

  [For purposes of this part:
          [(1) Eligible professional development provider.--The 
        term ``eligible professional development provider'' 
        means a provider of professional development in reading 
        instruction to teachers that is based on scientifically 
        based reading research.
          [(2) 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.
          [(3) 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.
          [(4) Scientifically based reading research.--The term 
        ``scientifically based reading research''--
                  [(A) means the application of rigorous, 
                systematic, and objective procedures to obtain 
                valid knowledge relevant to reading 
                development, reading instruction, and reading 
                difficulties; and
                  [(B) shall include research that--
                          [(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.

[SEC. 2253. READING AND LITERACY GRANTS TO STATE EDUCATIONAL AGENCIES.

  [(a) Program Authorized.--
          [(1) In general.--Subject to the provisions of this 
        part, the Secretary shall award grants to State 
        educational agencies to carry out the reading and 
        literacy activities authorized under this section and 
        sections 2254 through 2256.
          [(2) Limitations.--
                  [(A) Single grant per state.--A State 
                educational agency may not receive more than 
                one grant under paragraph (1).
                  [(B) 3-year term.--A State educational agency 
                that receives a grant under paragraph (1) may 
                expend the funds provided under the grant only 
                during the 3-year period beginning on the date 
                on which the grant is made.
  [(b) Application.--
          [(1) In general.--A State educational agency that 
        desires to receive a grant under this part 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 paragraph 
        (2).
          [(2) Contents.--An application under this subsection 
        shall contain the following:
                  [(A) 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--
                          [(i) assisted in the development of 
                        the State plan;
                          [(ii) will be involved in advising on 
                        the selection of subgrantees under 
                        sections 2255 and 2256; and
                          [(iii) will assist in the oversight 
                        and evaluation of such subgrantees.
                  [(B) A description of the following:
                          [(i) How the State educational agency 
                        will ensure that professional 
                        development activities related to 
                        reading instruction and provided under 
                        this part are--
                                  [(I) coordinated with other 
                                State and local level funds and 
                                used effectively to improve 
                                instructional practices for 
                                reading; and
                                  [(II) based on scientifically 
                                based reading research.
                          [(ii) How the activities assisted 
                        under this part will address the needs 
                        of teachers and other instructional 
                        staff, and will effectively teach 
                        students to read, in schools receiving 
                        assistance under section 2255 and 2256.
                          [(iii) The extent to which the 
                        activities will prepare teachers in all 
                        the major components of reading 
                        instruction (including phonemic 
                        awareness, systematic phonics, fluency, 
                        and reading comprehension).
                          [(iv) How the State educational 
                        agency will use technology to enhance 
                        reading and literacy professional 
                        development activities for teachers, as 
                        appropriate.
                          [(v) How parents can participate in 
                        literacy-related activities assisted 
                        under this part to enhance their 
                        children's reading.
                          [(vi) How subgrants made by the State 
                        educational agency under sections 2255 
                        and 2256 will meet the requirements of 
                        this part, including how the State 
                        educational agency will ensure that 
                        subgrantees will use practices based on 
                        scientifically based reading research.
                          [(vii) How the State educational 
                        agency will, to the extent practicable, 
                        make grants to subgrantees in both 
                        rural and urban areas.
                          [(viii) The process that the State 
                        used to establish the reading and 
                        literacy partnership described in 
                        subsection (d).
                  [(C) An assurance that each local educational 
                agency to which the State educational agency 
                makes a subgrant--
                          [(i) will provide professional 
                        development for the classroom teacher 
                        and other appropriate instructional 
                        staff on the teaching of reading based 
                        on scientifically based reading 
                        research;
                          [(ii) will provide family literacy 
                        services based on programs such as the 
                        Even Start family literacy model 
                        authorized under part B of title I, to 
                        enable parents to be their child's 
                        first and most important teacher;
                          [(iii) will carry out programs to 
                        assist those kindergarten students who 
                        are not ready for the transition to 
                        first grade, particularly students 
                        experiencing difficulty with reading 
                        skills; and
                          [(iv) will use supervised individuals 
                        (including tutors), who have been 
                        appropriately trained using 
                        scientifically based reading research, 
                        to provide additional support, before 
                        school, after school, on weekends, 
                        during noninstructional periods of the 
                        school day, or during the summer, for 
                        children preparing to enter 
                        kindergarten and students in 
                        kindergarten through grade 3 who are 
                        experiencing difficulty reading.
                  [(D) An assurance that instruction in reading 
                will be provided to children with reading 
                difficulties who--
                          [(i) are at risk of being referred to 
                        special education based on these 
                        difficulties; or
                          [(ii) have been evaluated under 
                        section 614 of the Individuals with 
                        Disabilities Education Act but, in 
                        accordance with section 614(b)(5) of 
                        such Act, have not been identified as 
                        being a child with a disability (as 
                        defined in section 602 of the such 
                        Act).
                  [(E) A description of how the State 
                educational 
                agency--
                          [(i) will build on, and promote 
                        coordination among, literacy programs 
                        in the State (including federally 
                        funded programs such as the Adult 
                        Education and Family Literacy Act and 
                        the Individuals with Disabilities 
                        Education Act), in order to increase 
                        the effectiveness of the programs in 
                        improving reading for adults and 
                        children and to avoid duplication of 
                        the efforts of the programs;
                          [(ii) will promote reading and 
                        library programs that provide access to 
                        engaging reading material;
                          [(iii) will make local educational 
                        agencies described in sections 
                        2255(a)(1) and 2256(a)(1) aware of the 
                        availability of subgrants under 
                        sections 2255 and 2256; and
                          [(iv) will assess and evaluate, on a 
                        regular basis, local educational agency 
                        activities assisted under this part, 
                        with respect to whether they have been 
                        effective in achieving the purposes of 
                        this part.
                  [(F) A description of the evaluation 
                instrument the State educational agency will 
                use for purposes of the assessments and 
                evaluations under subparagraph (E)(iv).
  [(c) Approval of Applications.--
          [(1) In general.--The Secretary shall approve an 
        application of a State educational agency under this 
        section only--
                  [(A) if such application meets the 
                requirement of this section; and
                  [(B) after taking into account the extent to 
                which the application furthers the purposes of 
                this part and the overall quality of the 
                application.
          [(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) representatives of the National 
                        Institute for Literacy, the National 
                        Research Council of the National 
                        Academy of Sciences, and the National 
                        Institute of Child Health and Human 
                        Development;
                          [(ii) 3 individuals selected by the 
                        Secretary;
                          [(iii) 3 individuals selected by the 
                        National Institute for Literacy;
                          [(iv) 3 individuals selected by the 
                        National Research Council of the 
                        National Academy of Sciences; and
                          [(v) 3 individuals selected by the 
                        National Institute of Child Health and 
                        Human Development.
                  [(B) Experts.--The panel shall include 
                experts who are competent, by virtue of their 
                training, expertise, or experience, to evaluate 
                applications under this section, and experts 
                who provide professional development to 
                teachers of reading to children and adults, and 
                experts who provide professional development to 
                other instructional staff, based on 
                scientifically based reading research.
                  [(C) Priority.--The panel shall recommend 
                grant applications from State educational 
                agencies under this section to the Secretary 
                for funding or for disapproval. In making such 
                recommendations, the panel shall give priority 
                to applications from State educational agencies 
                whose States have modified, are modifying, or 
                provide an assurance that not later than 18 
                months after receiving a grant under this 
                section the State educational agencies will 
                increase the training and the methods of 
                teaching reading required for certification as 
                an elementary school teacher to reflect 
                scientifically based reading research, except 
                that nothing in this Act shall be construed to 
                establish a national system of teacher 
                certification.
                  [(D) Minimum grant amounts.--
                          [(i) States.--Each State educational 
                        agency selected to receive a grant 
                        under this section shall receive an 
                        amount for the grant period that is not 
                        less than $500,000.
                          [(ii) Outlying areas.--The Virgin 
                        Islands, Guam, American Samoa, and the 
                        Commonwealth of the Northern Mariana 
                        Islands selected to receive a grant 
                        under this section shall receive an 
                        amount for the grant period that is not 
                        less than $100,000.
                  [(E) Limitation.--The Republic of the 
                Marshall Islands, the Federated States of 
                Micronesia, and the Republic of Palau shall not 
                be eligible to receive a grant under this part.
  [(d) Reading and Literacy Partnerships.--
          [(1) Required participants.--In order for a State 
        educational agency to receive a grant under this 
        section, the Governor of the State, in consultation 
        with the State educational agency, shall establish a 
        reading and literacy partnership consisting of at least 
        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 local educational 
                agency that is eligible to receive a subgrant 
                under section 2255.
                  [(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.
                  [(G) A parent of a public or private school 
                student or a parent who educates their child or 
                children in their home, selected jointly by the 
                Governor and the chief State school officer.
                  [(H) A teacher who successfully teaches 
                reading and an 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.
          [(2) Optional participants.--A 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 
                based on scientifically based reading research 
                in the State;
                  [(B) a local educational agency;
                  [(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.
          [(3) Preexisting partnership.--If, before the date of 
        the enactment of the Reading Excellence Act, a State 
        established a consortium, partnership, or any other 
        similar body, that includes the Governor and the chief 
        State school officer and has, as a central part of its 
        mission, the promotion of literacy for children in 
        their early childhood years through the 3d grade and 
        family literacy services, but that does not satisfy the 
        requirements of paragraph (1), the State may elect to 
        treat that consortium, partnership, or body as the 
        reading and literacy partnership for the State 
        notwithstanding such paragraph, and it shall be 
        considered a reading and literacy partnership for 
        purposes of the other provisions of this part.

[SEC. 2254. USE OF AMOUNTS BY STATE EDUCATIONAL AGENCIES.

  [A State educational agency that receives a grant under 
section 2253--
          [(1) shall use not more than 5 percent of the funds 
        made available under the grant for the administrative 
        costs of carrying out this part (excluding section 
        2256), of which not more than 2 percent may be used to 
        carry out section 2259; and
          [(2) shall use not more than 15 percent of the funds 
        made available under the grant to solicit applications 
        for, award, and oversee the performance of, not less 
        than one subgrant pursuant to section 2256.

[SEC. 2255. LOCAL READING IMPROVEMENT SUBGRANTS.

  [(a) In General.--
          [(1) Subgrants.--A State educational agency that 
        receives a grant under section 2253 shall make 
        subgrants, on a competitive basis, to local educational 
        agencies that either--
                  [(A) have at least one school that is 
                identified for school improvement under section 
                1116(c) in the geographic area served by the 
                agency;
                  [(B) have the largest, or second largest, 
                number of children who are counted under 
                section 1124(c), in comparison to all other 
                local educational agencies in the State; or
                  [(C) have the highest, or second highest, 
                school-age child poverty rate, in comparison to 
                all other local educational agencies in the 
                State.
        For purposes of subparagraph (C), the term ``school-age 
        child poverty rate'' means the number of children 
        counted under section 1124(c) who are living within the 
        geographic boundaries of the local educational agency, 
        expressed as a percentage of the total number of 
        children aged 5-17 years living within the geographic 
        boundaries of the local educational agency.
          [(2) Subgrant amount.--A subgrant under this section 
        shall consist of an amount sufficient to enable the 
        subgrant recipient to operate a program for a 2-year 
        period and may not be revoked or terminated on the 
        grounds that a school ceases, during the grant period, 
        to meet the requirements of subparagraph (A), (B), or 
        (C) of paragraph (1).
  [(b) Applications.--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 including such information as the agency may 
require. The application--
          [(1) shall describe how the local educational agency 
        will work with schools selected by the agency to 
        receive assistance under subsection (d)(1)--
                  [(A) to select one or more programs of 
                reading instruction, developed using 
                scientifically based reading research, to 
                improve reading instruction by all academic 
                teachers for all children in each of the 
                schools selected by the agency under such 
                subsection and, where appropriate, for their 
                parents; and
                  [(B) to enter into an agreement with a person 
                or entity responsible for the development of 
                each program selected under subparagraph (A), 
                or a person with experience or expertise about 
                the program and its implementation, under which 
                the person or entity agrees to work with the 
                local educational agency and the schools in 
                connection with such implementation and 
                improvement efforts;
          [(2) shall include an assurance that the local 
        educational agency--
                  [(A) will carry out professional development 
                for the classroom teacher and other 
                instructional staff on the teaching of reading 
                based on scientifically based reading research;
                  [(B) will provide family literacy services 
                based on programs such as the Even Start family 
                literacy model authorized under part B of title 
                I, to enable parents to be their child's first 
                and most important teacher;
                  [(C) will carry out programs to assist those 
                kindergarten students who are not ready for the 
                transition to first grade, particularly 
                students experiencing difficulty with reading 
                skills; and
                  [(D) will use supervised individuals 
                (including tutors), who have been appropriately 
                trained using scientifically based reading 
                research, to provide additional support, before 
                school, after school, on weekends, during 
                noninstructional periods of the school day, or 
                during the summer, for children preparing to 
                enter kindergarten and students in kindergarten 
                through grade 3 who are experiencing difficulty 
                reading;
          [(3) shall describe how the applicant will ensure 
        that funds available under this part, and funds 
        available for reading instruction for kindergarten 
        through grade 6 from other appropriate sources, are 
        effectively coordinated, and, where appropriate, 
        integrated with funds under this Act in order to 
        improve existing activities in the areas of reading 
        instruction, professional development, program 
        improvement, parental involvement, technical 
        assistance, and other activities that can help meet the 
        purposes of this part;
          [(4) shall describe, if appropriate, how parents, 
        tutors, and early childhood education providers will be 
        assisted by, and participate in, literacy-related 
        activities receiving financial assistance under this 
        part to enhance children's reading fluency;
          [(5) shall describe how the local educational 
        agency--
                  [(A) provides instruction in reading to 
                children with reading difficulties who--
                          [(i) are at risk of being referred to 
                        special education based on these 
                        difficulties; or
                          [(ii) have been evaluated under 
                        section 614 of the Individuals with 
                        Disabilities Education Act but, in 
                        accordance with section 614(b)(5) of 
                        such Act, have not been identified as 
                        being a child with a disability (as 
                        defined in section 602 of the such 
                        Act); and
                  [(B) will promote reading and library 
                programs that provide access to engaging 
                reading material; and
          [(6) shall include an assurance that the local 
        educational agency will make available, upon request 
        and in an understandable and uniform format, to any 
        parent of a student attending any school selected to 
        receive assistance under subsection (d)(1) in the 
        geographic area served by the local educational agency, 
        information regarding the professional qualifications 
        of the student's classroom teacher to provide 
        instruction in reading.
  [(c) Special Rule.--To the extent feasible, a local 
educational agency that desires to receive a grant under this 
section shall form a partnership with one or more community-
based organizations of demonstrated effectiveness in early 
childhood literacy, and reading readiness, reading instruction, 
and reading achievement for both adults and children, such as a 
Head Start program, family literacy program, public library, or 
adult education program, to carry out the functions described 
in paragraphs (1) through (6) of subsection (b). In evaluating 
subgrant applications under this section, a State educational 
agency shall consider whether the applicant has satisfied the 
requirement in the preceding sentence. If not, the applicant 
must provide information on why it would not have been feasible 
for the applicant to have done so.
  [(d) Use of Funds.--
          [(1) In general.--Subject to paragraph (2), a local 
        educational agency that receives a subgrant under this 
        section shall use amounts from the subgrant to carry 
        out activities to advance reform of reading instruction 
        in any school that (A) is described in subsection 
        (a)(1)(A), (B) has the largest, or second largest, 
        number of children who are counted under section 
        1124(c), in comparison to all other schools in the 
        local educational agency, or (C) has the highest, or 
        second highest, school-age child poverty rate (as 
        defined in the second sentence of subsection (a)(1)), 
        in comparison to all other schools in the local 
        educational agency. Such activities shall include the 
        following:
                  [(A) Securing technical and other assistance 
                from--
                          [(i) a program of reading instruction 
                        based on scientifically based reading 
                        research;
                          [(ii) a person or entity with 
                        experience or expertise about such 
                        program and its implementation, who has 
                        agreed to work with the recipient in 
                        connection with its implementation; or
                          [(iii) a program providing family 
                        literacy services.
                  [(B) Providing professional development 
                activities to teachers and other instructional 
                staff (including training of tutors), using 
                scientifically based reading research and 
                purchasing of curricular and other supporting 
                materials.
                  [(C) Promoting reading and library programs 
                that provide access to engaging reading 
                material.
                  [(D) Providing, on a voluntary basis, 
                training to parents of children enrolled in a 
                school selected to receive assistance under 
                subsection (d)(1) on how to help their children 
                with school work, particularly in the 
                development of reading skills. Such training 
                may be provided directly by the subgrant 
                recipient, or through a grant or contract with 
                another person. Such training shall be 
                consistent with reading reforms taking place in 
                the school setting. No parent shall be required 
                to participate in such training.
                  [(E) Carrying out family literacy services 
                based on programs such as the Even Start family 
                literacy model authorized under part B of title 
                I, to enable parents to be their child's first 
                and most important teacher.
                  [(F) Providing instruction for parents of 
                children enrolled in a school selected to 
                receive assistance under subsection (d)(1), and 
                others who volunteer to be reading tutors for 
                such children, in the instructional practices 
                based on scientifically based reading research 
                used by the applicant.
                  [(G) Programs to assist those kindergarten 
                students enrolled in a school selected to 
                receive assistance under subsection (d)(1) who 
                are not ready for the transition to first 
                grade, particularly students experiencing 
                difficulty with reading skills.
                  [(H) Providing additional support for 
                children preparing to enter kindergarten and 
                students in kindergarten through grade 3 who 
                are enrolled in a school selected to receive 
                assistance under subsection (d)(1), who are 
                experiencing difficulty reading, before school, 
                after school, on weekends, during 
                noninstructional periods of the school day, or 
                during the summer, using supervised individuals 
                (including tutors), who have been appropriately 
                trained using scientifically based reading 
                research.
                  [(I) Providing instruction in reading to 
                children with reading difficulties who--
                          [(i) are at risk of being referred to 
                        special education based on these 
                        difficulties; or
                          [(ii) have been evaluated under 
                        section 614 of the Individuals with 
                        Disabilities Education Act but, in 
                        accordance with section 614(b)(5) of 
                        such Act, have not been identified as 
                        being a child with a disability (as 
                        defined in section 602 of the such 
                        Act).
                  [(J) Providing coordination of reading, 
                library, and literacy programs within the local 
                educational agency to avoid duplication and 
                increase the effectiveness of reading, library, 
                and literacy activities.
          [(2) Limitation on administrative expenses.--A 
        recipient of a subgrant under this section may use not 
        more than 5 percent of the subgrant funds for 
        administrative costs.
  [(e) Training Nonrecipients.--A recipient of a subgrant under 
this section may train, on a fee-for-service basis, personnel 
from schools, or local educational agencies, that are not a 
beneficiary of, or receiving, such a subgrant, in the 
instructional practices based on scientifically based reading 
research used by the recipient. Such a nonrecipient school or 
agency may use funds received under title I of this Act, and 
other appropriate Federal funds used for reading instruction, 
to pay for such training, to the extent consistent with the law 
under which such funds were received.

[SEC. 2256. TUTORIAL ASSISTANCE SUBGRANTS.

  [(a) In General.--
          [(1) Subgrants.--Except as provided in paragraph (4), 
        a State educational agency that receives a grant under 
        section 2253 shall make at least one subgrant on a 
        competitive basis to--
                  [(A) local educational agencies that have at 
                least one school in the geographic area served 
                by the agency that--
                          [(i) is located in an area designated 
                        as an empowerment zone under part I of 
                        subchapter U of chapter 1 of the 
                        Internal Revenue Code of 1986; or
                          [(ii) is located in an area 
                        designated as an enterprise community 
                        under part I of subchapter U of chapter 
                        1 of the Internal Revenue Code of 1986;
                  [(B) local educational agencies that have at 
                least one school that is identified for school 
                improvement under section 1116(c) in the 
                geographic area served by the agency;
                  [(C) local educational agencies with the 
                largest, or second largest, number of children 
                who are counted under section 1124(c), in 
                comparison to all other local educational 
                agencies in the State; or
                  [(D) local educational agencies with the 
                highest, or second highest, school-age child 
                poverty rate, in comparison to all other local 
                educational agencies in the State.
        For purposes of subparagraph (D), the term ``school-age 
        child poverty rate'' means the number of children 
        counted under section 1124(c) who are living within the 
        geographic boundaries of the local educational agency, 
        expressed as a percentage of the total number of 
        children aged 5-17 years living within the geographic 
        boundaries of the local educational agency.
          [(2) Notification.--
                  [(A) To local educational agencies.--A State 
                educational agency shall provide notice to all 
                local educational agencies within the State 
                regarding the availability of the subgrants 
                under this section.
                  [(B) To providers and parents.--Not later 
                than 30 days after the date on which the State 
                educational agency provides notice under 
                subparagraph (A), each local educational agency 
                described in paragraph (1) shall, as a 
                condition on the agency's receipt of funds made 
                available under title I of this Act, provide 
                public notice to potential providers of 
                tutorial assistance operating in the 
                jurisdiction of the agency, and parents 
                residing in such jurisdiction, regarding the 
                availability of the subgrants under this 
                section.
          [(3) 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 including such 
        information as the agency may require. The application 
        shall include an assurance that the local educational 
        agency will use the subgrant funds to carry out the 
        duties described in subsection (b) for children 
        enrolled in any school selected by the agency that (A) 
        is described in paragraph (1)(A), (B) is described in 
        paragraph (1)(B), (C) has the largest, or second 
        largest, number of children who are counted under 
        section 1124(c), in comparison to all other schools in 
        the local educational agency, or (D) has the highest, 
        or second highest, school-age child poverty rate (as 
        defined in the second sentence of paragraph (1)), in 
        comparison to all other schools in the local 
        educational agency.
          [(4) Exception.--If no local educational agency 
        within the State submits an application to receive a 
        subgrant under this section within the 6-month period 
        beginning on the date on which the State educational 
        agency provided notice to the local educational 
        agencies regarding the availability of the subgrants, 
        the State educational agency may use funds otherwise 
        reserved under 2254(2) for the purpose of providing 
        local reading improvement subgrants under section 2255 
        if the State educational agency certifies to the 
        Secretary that the requirements of paragraph (2) have 
        been met and each local educational agency in the State 
        described in subparagraph (B) of such paragraph has 
        demonstrated to the State educational agency that no  
        provider  of  tutorial  assistance  described in such 
        subparagraph requested the local educational agency to 
        submit under paragraph (3) an application for a 
        tutorial assistance subgrant.
  [(b) Use of Funds.--
          [(1) In general.--A local educational agency that 
        receives a subgrant under this section shall carry out, 
        using the funds provided under the subgrant, each of 
        the duties described in paragraph (2).
          [(2) Duties.--The duties described in this paragraph 
        are the provision of tutorial assistance in reading, 
        before school, after school, on weekends, or during the 
        summer, to children who have difficulty reading, using 
        instructional practices based on scientifically based 
        reading research, through the following:
                  [(A) The creation and implementation of 
                objective criteria to determine in a uniform 
                manner the eligibility of tutorial assistance 
                providers and tutorial assistance programs 
                desiring to provide tutorial assistance under 
                the subgrant. Such criteria shall include the 
                following:
                          [(i) A record of effectiveness with 
                        respect to reading readiness, reading 
                        instruction for children in 
                        kindergarten through 3d grade, and 
                        early childhood literacy, as 
                        appropriate.
                          [(ii) Location in a geographic area 
                        convenient to the school or schools 
                        attended by the children who will be 
                        receiving tutorial assistance.
                          [(iii) The ability to provide 
                        tutoring in reading to children who 
                        have difficulty reading, using 
                        instructional practices based on 
                        scientifically based reading research 
                        and consistent with the reading 
                        instructional methods and content used 
                        by the school the child attends.
                  [(B) The provision, to parents of a child 
                eligible to receive tutorial assistance 
                pursuant to this section, of multiple choices 
                among tutorial assistance providers and 
                tutorial assistance programs determined to be 
                eligible under the criteria described in 
                subparagraph (A). Such choices shall include a 
                school-based program and at least one tutorial 
                assistance program operated by a provider 
                pursuant to a contract with the local 
                educational agency.
                  [(C) The development of procedures--
                          [(i) for the provision of information 
                        to parents of an eligible child 
                        regarding such parents' choices for 
                        tutorial assistance for the child;
                          [(ii) for considering children for 
                        tutorial assistance who are identified 
                        under subparagraph (D) and for whom no 
                        parent has selected a tutorial 
                        assistance provider or tutorial 
                        assistance program that give such 
                        parents additional opportunities to 
                        select a tutorial assistance provider 
                        or tutorial assistance program referred 
                        to in subparagraph (B); and
                          [(iii) that permit a local 
                        educational agency to recommend a 
                        tutorial assistance provider or 
                        tutorial assistance program in a case 
                        where a parent asks for assistance in 
                        the making of such selection.
                  [(D) The development of a selection process 
                for providing tutorial assistance in accordance 
                with this paragraph that limits the provision 
                of assistance to children identified, by the 
                school the child attends, as having difficulty 
                reading, including difficulty mastering 
                phonemic awareness, systematic phonics, 
                fluency, and reading comprehension.
                  [(E) The development of procedures for 
                selecting children to receive tutorial 
                assistance, to be used in cases where 
                insufficient funds are available to provide 
                assistance with respect to all children 
                identified by a school under subparagraph (D), 
                that--
                          [(i) give priority to children who 
                        are determined, through State or local 
                        reading assessments, to be most in need 
                        of tutorial assistance; and
                          [(ii) give priority, in cases where 
                        children are determined, through State 
                        or local reading assessments, to be 
                        equally in need of tutorial assistance, 
                        based on a random selection principle.
                  [(F) The development of a methodology by 
                which payments are made directly to tutorial 
                assistance providers who are identified and 
                selected pursuant to this section and selected 
                for funding. Such methodology shall include the 
                making of a contract, consistent with State and 
                local law, between the provider and the local 
                educational agency. Such contract shall satisfy 
                the following requirements:
                          [(i) It shall contain specific goals 
                        and timetables with respect to the 
                        performance of the tutorial assistance 
                        provider.
                          [(ii) It shall require the tutorial 
                        assistance provider to report to the 
                        local educational agency on the 
                        provider's performance in meeting such 
                        goals and timetables.
                          [(iii) It shall specify the 
                        measurement techniques that will be 
                        used to evaluate the performance of the 
                        provider.
                          [(iv) It shall require the provider 
                        to meet all applicable Federal, State, 
                        and local health, safety, and civil 
                        rights laws.
                          [(v) It shall ensure that the 
                        tutorial assistance provided under the 
                        contract is consistent with reading 
                        instruction and content used by the 
                        local educational agency.
                          [(vi) It shall contain an agreement 
                        by the provider that information 
                        regarding the identity of any child 
                        eligible for, or enrolled in the 
                        program, will not be publicly disclosed 
                        without the permission of a parent of 
                        the child.
                          [(vii) It shall include the terms of 
                        an agreement between the provider and 
                        the local educational agency with 
                        respect to the provider's purchase and 
                        maintenance of adequate general 
                        liability insurance.
                          [(viii) It shall contain provisions 
                        with respect to the making of payments 
                        to the provider by the local 
                        educational agency.
                  [(G) The development of procedures under 
                which the local educational agency carrying out 
                this paragraph--
                          [(i) will ensure oversight of the 
                        quality and effectiveness of the 
                        tutorial assistance provided by each 
                        tutorial assistance provider that is 
                        selected for funding;
                          [(ii) will provide for the 
                        termination of contracts with 
                        ineffective and unsuccessful tutorial 
                        assistance providers (as determined by 
                        the local educational agency based upon 
                        the performance of the provider with 
                        respect to the goals and timetables 
                        contained in the contract between the 
                        agency and the provider under 
                        subparagraph (F));
                          [(iii) will provide to each parent of 
                        a child identified under subparagraph 
                        (D) who requests such information for 
                        the purpose of selecting a tutorial 
                        assistance provider for the child, in a 
                        comprehensible format, information with 
                        respect to the quality and 
                        effectiveness of the tutorial 
                        assistance referred to in clause (i);
                          [(iv) will ensure that each school 
                        identifying a child under subparagraph 
                        (D) will provide upon request, to a 
                        parent of the child, assistance in 
                        selecting, from among the tutorial 
                        assistance providers who are identified 
                        pursuant to subparagraph (B) the 
                        provider who is best able to meet the 
                        needs of the child;
                          [(v) will ensure that parents of a 
                        child receiving tutorial assistance 
                        pursuant to this section are informed 
                        of their child's progress in the 
                        tutorial program; and
                          [(vi) will ensure that it does not 
                        disclose the name of any child who may 
                        be eligible for tutorial assistance 
                        pursuant to this section, the name of 
                        any parent of such a child, or any 
                        other personally identifiable 
                        information about such a parent or 
                        child, to any tutorial assistance 
                        provider (excluding the agency itself), 
                        without the prior written consent of 
                        such parent.

[SEC. 2257. NATIONAL EVALUATION.

  [From funds reserved under section 2260(b)(1), the Secretary, 
through grants or contracts, shall conduct a national 
assessment of the programs under this part. In developing the 
criteria for the assessment, the Secretary shall receive 
recommendations from the peer review panel convened under 
section 2253(c)(2).

[SEC. 2258. INFORMATION DISSEMINATION.

  [(a) In General.--From funds reserved under section 
2260(b)(2), the National Institute for Literacy shall 
disseminate information on scientifically based reading 
research and information on subgrantee projects under section 
2255 or 2256 that have proven effective. At a minimum, the 
institute shall disseminate such information to all recipients 
of Federal financial assistance under titles I and VII of this 
Act, the Head Start Act, the Individuals with Disabilities 
Education Act, and the Adult Education and Family Literacy Act.
  [(b) Coordination.--In carrying out this section, the 
National Institute for Literacy--
          [(1) shall use, to the extent practicable, 
        information networks developed and maintained through 
        other public and private persons, including the 
        Secretary, the National Center for Family Literacy, and 
        the Readline Program;
          [(2) shall work in conjunction with any panel 
        convened by the National Institute of Child Health and 
        Human Development and the Secretary and any panel 
        convened by the Office of Educational Research and 
        Improvement to assess the current status of research-
        based knowledge on reading development, including the 
        effectiveness of various approaches to teaching 
        children to read, with respect to determining the 
        criteria by which the National Institute for Literacy 
        judges scientifically based reading research and the 
        design of strategies to disseminate such information; 
        and
          [(3) may assist any State educational agency selected 
        to receive a grant under section 2253, and that 
        requests such assistance--
                  [(A) in determining whether applications 
                submitted under section 2253 meet the 
                requirements of this title relating to 
                scientifically based reading research; and
                  [(B) in the development of subgrant 
                application forms.

[SEC. 2259. STATE EVALUATIONS; PERFORMANCE REPORTS.

  [(a) State Evaluations.--
          [(1) In general.--Each State educational agency that 
        receives a grant under section 2253 shall evaluate the 
        success of the agency's subgrantees in meeting the 
        purposes of this part. At a minimum, the evaluation 
        shall measure the extent to which students who are the 
        intended beneficiaries of the subgrants made by the 
        agency have improved their reading skills.
          [(2) Contract.--A State educational agency shall 
        carry out the evaluation under this subsection by 
        entering into a contract with an entity that conducts 
        scientifically based reading research, under which 
        contract the entity will perform the evaluation.
          [(3) Submission.--A State educational agency shall 
        submit the findings from the evaluation under this 
        subsection to the Secretary. The Secretary shall submit 
        a summary of the findings from the evaluations under 
        this subsection and the national assessment conducted 
        under section 2257 to the appropriate committees of the 
        Congress, including the Committee on Education and the 
        Workforce of the House of Representatives and the 
        Committee on Labor and Human Resources of the Senate.
  [(b) Performance Reports.--A State educational agency that 
receives a grant under section 2253 shall submit performance 
reports to the Secretary pursuant to a schedule to be 
determined by the Secretary, but not more frequently than 
annually. Such reports shall include--
          [(1) with respect to subgrants under section 2255, 
        the program or programs of reading instruction, based 
        on scientifically based reading research, selected by 
        subgrantees;
          [(2) the results of use of the evaluation referred to 
        in section 2253(b)(2)(E)(iv); and
          [(3) a description of the subgrantees receiving funds 
        under this part.

[SEC. 2260. AUTHORIZATIONS OF APPROPRIATIONS; RESERVATIONS FROM 
                    APPROPRIATIONS; SUNSET.

  [(a) Authorizations.--
          [(1) FY 1999.--There are authorized to be 
        appropriated to carry out this part $260,000,000 for 
        fiscal year 1999.
          [(2) FY 2000.--There are authorized to be 
        appropriated to carry out this part $260,000,000 for 
        fiscal year 2000.
  [(b) Reservations.--From each of the amounts appropriated 
under subsection (a) for a fiscal year, the Secretary--
          [(1) shall reserve 1.5 percent to carry out section 
        2257(a); and
          [(2) shall reserve $5,000,000 to carry out section 
        2258.
  [(c) Sunset.--Notwithstanding section 422(a) of the General 
Education Provisions Act, this part is not subject to extension 
under such section.

        [PART D--PROFESSIONAL DEVELOPMENT DEMONSTRATION PROJECT

[SEC. 2301. FINDINGS AND PURPOSE.

  [(a) Findings.--The Congress finds that--
          [(1) underlying the standards-driven framework of the 
        Goals 2000: Educate America Act and the high academic 
        standards for eligible students under title I is a 
        widespread need to prepare teachers to teach to higher 
        standards;
          [(2) prospective and current teachers need knowledge 
        and skills beyond what such teachers currently possess;
          [(3) while both the Goals 2000: Educate America Act 
        and titles I and II of this Act have extensive 
        references to professional development of teachers, 
        there are no provisions to incorporate ``on-the-
        ground'' planning and implementation to serve as models 
        for local educational agencies across the Nation; and
          [(4) better prepared teachers can lead to improved 
        student achievement, especially for students who are 
        furthest from reaching high standards.
  [(b) Purpose.--It is the purpose of this part--
          [(1) to address the need for professional development 
        with a primary focus on teachers;
          [(2) to provide both prospective teachers and current 
        teachers opportunities to learn both the content and 
        the pedagogy needed to teach to high standards; and
          [(3) to build models, in a few cities and States, 
        that demonstrate new organizational arrangements and 
        deep investments in teachers necessary to better 
        prepare teachers for new standards and assessments.

[SEC. 2302. DEMONSTRATION PROGRAM AUTHORIZED.

  [(a) General Authority.--
          [(1) In general.--The Secretary shall carry out a 
        demonstration project under which the Secretary awards 
        grants in accordance with this part to eligible 
        partnerships to enable such partnerships to plan and 
        implement professional development programs.
          [(2) Program requirements.--The programs described in 
        paragraph (1)--
                  [(A) shall focus on increasing teachers' 
                knowledge and understanding of content by 
                providing teachers opportunities to improve 
                their knowledge and to improve their classroom 
                practice in order to help students meet high 
                academic standards;
                  [(B) shall include teachers at all career 
                stages, from student teachers or interns 
                through senior team leaders or department 
                chairs; and
                  [(C) may incorporate professional development 
                for principals, pupil services personnel, 
                aides, other school-based staff, and parents.
  [(b) Eligible Partnerships.--For the purpose of this part, 
the term ``eligible partnership'' means a partnership 
consisting of--
          [(1) a local educational agency, a subunit of such 
        agency, or a consortium of such agencies, in which not 
        less than 50 percent of the schools served by such 
        agency, subunit, or consortium are eligible to 
        participate in schoolwide programs under section 1114; 
        or
          [(2) other partners that--
                  [(A) shall include, at a minimum, a teachers' 
                union (if appropriate), one or more 
                institutions of higher education which may 
                include faculty from schools of education and 
                faculty from schools of arts and sciences, and 
                a local parent or community council; and
                  [(B) may include a business partner or a 
                nonprofit organization with a demonstrated 
                record in staff development.

[SEC. 2303. GRANTS.

  [(a) Authority.--
          [(1) In general.--The Secretary shall award grants 
        for planning, and grants for the implementation of, 
        professional development programs under this part.
          [(2) Distribution.--The Secretary shall award not 
        less than 75 percent of the funds available for grants 
        under this part to eligible partnerships serving the 
        schools with the greatest number of poor students. To 
        the extent possible, such grants shall be awarded to 
        eligible partnerships serving both rural and urban 
        school districts and in a manner that reflects 
        geographic and racial diversity.
          [(3) Number of grants.--In the first year that the 
        Secretary awards grants under this part, the Secretary 
        shall award at least twice as many planning grants as 
        implementation grants in order to receive well-
        developed plans for long-term funding under this part.
  [(b) Grant Requirements.--
          [(1) Duration.--The Secretary shall award--
                  [(A) planning grants under this part for a 
                period of not less than six months and not more 
                than nine months; and
                  [(B) implementation grants under this part 
                for a period of four fiscal years.
          [(2) Amount.--The Secretary shall award grants under 
        this part in an amount determined on the basis of the 
        size of the program and the level of investment the 
        eligible partnership is making in teacher development 
        in the area served by the eligible partnership, 
        including local, State, and Federal funds and existing 
        higher education resources, except that no grant under 
        this part shall exceed $500,000 in any one fiscal year.

[SEC. 2304. PLAN.

  [Each eligible partnership desiring assistance under this 
part shall develop a plan for the program to be assisted under 
this part. Such plan shall--
          [(1) identify clearly how such plan will support an 
        overall systemic reform strategy giving special 
        attention to the role of teacher preparation for new 
        standards and assessment;
          [(2) describe the eligible partnership's 
        instructional objectives and how the professional 
        development activities will support such objectives;
          [(3) specify the organizational arrangements and 
        delivery strategies to be used, such as teacher 
        centers, professional development schools, teacher 
        networks, and academic alliances, as well as the 
        curriculum for teachers;
          [(4) specify the commitments the local educational 
        agencies, teacher's union, institutions of higher 
        education, or any other entity participating in such 
        partnership are prepared to make, not only to support 
        program activities such as release time, contractual 
        flexibility, support for interns or student teachers if 
        applicable, but also to sustain the central aspects of 
        the plan after the expiration of the grant; and
          [(5) describe how the activities described under this 
        part will lead to districtwide policy and budget 
        changes.

[SEC. 2305. TECHNICAL ASSISTANCE.

  [The Secretary is authorized to enter into an arrangement 
with an intermediary organization to enable such organization 
to provide technical assistance to eligible partnerships 
receiving assistance under this part.

[SEC. 2306. MATCHING FUNDS.

  [The Secretary shall give special priority to awarding grants 
under this part to eligible partnerships that demonstrate such 
partnership's ability to raise matching funds from private 
sources.

                      [PART E--GENERAL PROVISIONS

[SEC. 2401. REPORTING AND ACCOUNTABILITY.

  [(a) States.--Each State that receives funds under this title 
(other than part C) shall submit a report to the Secretary 
every three years, beginning with fiscal year 1997, on the 
State's progress toward the performance indicators identified 
in such State's plan, as well as on the effectiveness of State 
and local activities assisted under this title (other than part 
C).
  [(b) Local Educational Agencies.--Each local educational 
agency that receives funds under this part shall submit a 
report to the State every three years, beginning with fiscal 
year 1997, regarding the progress of such agency toward 
performance indicators identified in such agency's local plan, 
as well as on the effectiveness of such agency's activities 
under this part.
  [(c) Federal Evaluation.--The Secretary shall report to the 
President and the Congress on the effectiveness of programs and 
activities assisted under this part in accordance with section 
14701.
  [(d) Prohibition on Funds Being Used for Construction or 
Renovation.--Funds received under this part shall not be used 
for construction or renovation of buildings, rooms, or any 
other facilities.

[SEC. 2402. DEFINITIONS.

  [As used in this title (other than part C)--
          [(1) the term ``core academic subjects'' means those 
        subjects listed in the State plan under title III of 
        the Goals 2000: Educate America Act or under the third 
        National Education Goal as set forth in section 102(3) 
        of such Act;
          [(2) the term ``performance indicators'' means 
        measures of specific outcomes that the State or local 
        educational agency identifies as assessing progress 
        toward the goal of ensuring that all teachers have the 
        knowledge and skills necessary to assist their students 
        to meet challenging State content standards and 
        challenging State student performance standards in the 
        core academic subjects, such as--
                  [(A) the degree to which licensure 
                requirements are tied to challenging State 
                content standards and challenging State student 
                performance standards;
                  [(B) specific increases in the number of 
                elementary and secondary teachers with strong 
                content backgrounds in the core academic 
                subjects;
                  [(C) incorporating effective strategies, 
                techniques, methods, and practices for meeting 
                the educational needs of diverse students, 
                including females, minorities, individuals with 
                disabilities, limited English proficient 
                individuals, and economically disadvantaged 
                individuals, in order to ensure that all 
                students have the opportunity to achieve 
                challenging student performance standards;
                  [(D) specific increases in the number of 
                teachers who are certified by the National 
                Board for Professional Teaching Standards or 
                other nationally recognized professional 
                teacher enhancement organizations; and
                  [(E) specific increases in the number of 
                teachers licensed in each core academic 
                subject;
          [(3) the term ``sustained and intensive high-quality 
        professional development'' means professional 
        development activities that--
                  [(A) are tied to challenging State content 
                standards, challenging State student 
                performance standards, voluntary national 
                content standards or voluntary national student 
                performance standards;
                  [(B) reflect up-to-date research in teaching 
                and learning and include integrated content and 
                pedagogical components appropriate for students 
                with diverse learning needs;
                  [(C) incorporate effective strategies, 
                techniques, methods, and practices for meeting 
                the educational needs of diverse students, 
                including females, minorities, individuals with 
                disabilities, limited English proficient 
                individuals, and economically disadvantaged 
                individuals, in order to ensure that all 
                students have the opportunity to achieve 
                challenging student performance standards;
                  [(D) are of sufficient intensity and duration 
                to have a positive and lasting impact on the 
                teacher's performance in the classroom or the 
                administrator's performance on the job; and
                  [(E) recognize teachers as an important 
                source of knowledge that should inform and help 
                shape professional development; and
          [(4) the term ``local'', when used with respect to 
        standards, means challenging content and student 
        performance standards in the core academic subjects (in 
        addition to challenging State content and student 
        performance standards approved by the State for title 
        I).]

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

          PART A--TEACHER QUALITY TRAINING AND RECRUITING FUND

SEC. 2001. PURPOSE.

  The purpose of this part is to provide grants to States and 
local educational agencies in order to assist their efforts to 
increase student academic achievement through such strategies 
as improving teacher and principal quality and increasing the 
number of highly qualified teachers in the classroom.

 Subpart 1--Grants to States to Prepare, Train, and Recruit Qualified 
                                Teachers

SEC. 2011. FORMULA GRANTS TO STATES.

  (a) In General.--In the case of each State that in accordance 
with section 2013 submits to the Secretary an application for a 
fiscal year, the Secretary shall make a grant for the year to 
the State for the uses specified in section 2012. The grant 
shall consist of the allotment determined for the State under 
subsection (b).
  (b) Determination of Amount of Allotments.--
          (1) Reservation of funds.--From the amount made 
        available to carry out this subpart for any fiscal 
        year, the Secretary shall reserve--
                  (A) \1/2\ of 1 percent for allotments for the 
                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 purpose 
                of this part; and
                  (B) \1/2\ of 1 percent for the Secretary of 
                the Interior for programs under this subpart 
                for professional development activities for 
                teachers, other staff, and administrators 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 total amount 
                        made available to carry out this 
                        subpart 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 the 
                                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) Nonparticipating states.--In the 
                        case of a State that did not receive 
                        any funds for fiscal year 2001 under 
                        one or both of the provisions referred 
                        to in subclauses (I) and (II) of clause 
                        (i), the amount allotted to the State 
                        under such clause shall be the total 
                        amount that the State would have 
                        received for fiscal year 2001 if it had 
                        elected to participate in all of the 
                        programs for which it was eligible 
                        under each of the provisions referred 
                        to in such subclauses.
                          (iii) Ratable reduction.--If the 
                        total amount made available to carry 
                        out this subpart for any fiscal year 
                        and not reserved under paragraph (1) is 
                        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 such 
                        amounts for such fiscal year.
                  (B) Allotment of additional funds.--
                          (i) In general.--Subject to clause 
                        (ii), for any fiscal year for which the 
                        total amount made available to carry 
                        out this subpart and not reserved under 
                        paragraph (1) exceeds the total amount 
                        required to make allotments under 
                        subparagraph (A), the Secretary shall 
                        allot such excess amount among the 50 
                        States, the District of Columbia, and 
                        the Commonwealth of Puerto Rico as 
                        follows:
                                  (I) 50 percent of such excess 
                                amount shall be allotted among 
                                such States on the basis of 
                                their relative populations of 
                                individuals aged 5 through 17, 
                                as determined by the Secretary 
                                on the basis of the most recent 
                                satisfactory data.
                                  (II) 50 percent of such 
                                excess amount shall be allotted 
                                among such States in proportion 
                                to the number of children, aged 
                                5 to 17, who reside within the 
                                State from families with 
                                incomes below the poverty line 
                                (as defined by the Office of 
                                Management and Budget and 
                                revised annually in accordance 
                                with section 673(2) of the 
                                Community Services Block Grant 
                                Act (42 U.S.C. 9902(2)) 
                                applicable to a family of the 
                                size involved 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.
                          (ii) Exception.--No State receiving 
                        an allotment under clause (i) may 
                        receive less than \1/2\ of 1 percent of 
                        the total excess amount allotted under 
                        such clause.
          (3) Reallotment.--If any State does not apply for an 
        allotment under this subsection for any fiscal year, 
        the Secretary shall reallot such amount to the 
        remaining States in accordance with this subsection.

SEC. 2012. WITHIN-STATE ALLOCATIONS.

  (a) Use of Funds.--Each State receiving a grant under this 
subpart shall use the funds provided under the grant in 
accordance with this section to carry out activities for the 
improvement of teaching and learning.
  (b) Reservation of Funds.--
          (1) In general.--A State that receives a grant under 
        this subpart may reserve not more than 5 percent of the 
        amount of the funds provided under the grant for--
                  (A) one or more of the authorized State 
                activities described in subsection (e); and
                  (B) planning and administration related to 
                carrying out such activities and making 
                subgrants to local educational agencies under 
                subparts 2 and 3.
          (2) Limitation on administrative costs.--The amount 
        reserved by a State under paragraph (1)(B) may not 
        exceed 1 percent of the amount of the funds provided 
        under the grant.
  (c) Subgrants to Local Educational Agencies.--
          (1) In general.--The Secretary may make a grant to a 
        State under this subpart only if the State agrees to 
        distribute the funds described in this subsection as 
        subgrants to local educational agencies under subpart 
        3.
          (2) Hold harmless.--
                  (A) In general.--From the funds that a State 
                receives under this subpart for any fiscal year 
                that are not reserved under subsection (b), the 
                State shall allot to each local educational 
                agency 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 the 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 allotted to the agency under such 
                subparagraph shall be the total amount that the 
                agency would have received for fiscal year 2001 
                if it had elected to participate in all of the 
                programs for which it was eligible under each 
                of the provisions referred to in such clauses.
                  (C) Ratable reduction.--If the funds 
                described in subparagraph (A) are insufficient 
                to pay the full amounts that all local 
                educational agencies are eligible to receive 
                under such subparagraph for any fiscal year, 
                the State shall ratably reduce such amounts for 
                such fiscal year.
          (3) Allotment of Additional Funds.--
                  (A) In general.--For any fiscal year for 
                which the funds that a State receives under 
                this subpart that are not reserved under 
                subsection (b) exceed the total amount required 
                to make allotments under paragraph (2), the 
                State shall distribute the amount described in 
                subparagraph (B) through a formula under 
                which--
                          (i) 20 percent is allocated to local 
                        educational agencies in accordance with 
                        the relative enrollment in public and 
                        private nonprofit elementary and 
                        secondary schools within the boundaries 
                        of such agencies; and
                          (ii) 80 percent is allocated to local 
                        educational agencies in proportion to 
                        the number of children, aged 5 to 17, 
                        who reside within the geographic area 
                        served by such agency from families 
                        with incomes below the poverty line (as 
                        defined by the Office of Management and 
                        Budget and revised annually in 
                        accordance with section 673(2) of the 
                        Community Services Block Grant Act (42 
                        U.S.C. 9902(2))) applicable to a family 
                        of the size involved for the most 
                        recent fiscal year for which 
                        satisfactory data are available, 
                        compared to the number of such 
                        individuals who reside in the 
                        geographic areas served by all the 
                        local educational agencies in the State 
                        for that fiscal year.
                  (B) Calculation of amount.--
                          (i) In general.--The amount described 
                        in this subparagraph for a State for 
                        any fiscal year is the base amount for 
                        such State and year, plus any 
                        additional amount for such State and 
                        year.
                          (ii) Base amount.--For purposes of 
                        this subparagraph, the term ``base 
                        amount'' means 50 percent of the funds 
                        that remain to a State after a State 
                        makes the reservations described in 
                        subsection (b) and the allotments 
                        described in paragraph (2).
                          (iii) Additional amount.--For 
                        purposes of this subparagraph, the term 
                        ``additional amount'' means the amount 
                        (if any) by which the base amount for a 
                        State exceeds the maximum amount 
                        described in subsection (d)(2)(B).
  (d) Math and Science Partnerships.--
          (1) In general.--The Secretary may make a grant to a 
        State under this subpart only if the State agrees to 
        distribute the amount described in paragraph (2) 
        through a competitive subgrant process in accordance 
        with subpart 2.
          (2) Amount described.--
                  (A) In general.--The amount described in this 
                paragraph for a State for any fiscal year is 50 
                percent of the funds that the State receives 
                under this subpart for the year that remain 
                after the State makes the reservations 
                described in subsection (b) and the allotments 
                described in subsection (c)(2).
                  (B) Limitation.--In no case may the amount 
                described in this paragraph exceed a maximum 
                amount calculated by multiplying the total 
                amount of the funds that a State receives under 
                this subpart for a fiscal year that the State 
                does not reserve under subsection (b) by a 
                percentage, selected by the State, that shall 
                be not less than 15 nor more than 20 percent.
  (e) Authorized State Activities.--The authorized State 
activities referred to in subsection (b)(1)(A) are the 
following:
          (1) Reforming teacher certification, recertification, 
        or licensure requirements to ensure that--
                  (A) teachers have the necessary teaching 
                skills and academic content knowledge in the 
                subject areas in which they are assigned to 
                teach;
                  (B) teacher certification, recertification, 
                or licensure requirements are aligned with the 
                State's challenging State academic content 
                standards; and
                  (C) teachers have the knowledge and skills 
                necessary to help students meet challenging 
                State student achievement standards.
          (2) Carrying out programs that--
                  (A) include support during the initial 
                teaching or leadership experience, such as 
                mentoring programs that--
                          (i) provide--
                                  (I) mentoring to beginning 
                                teachers from veteran teachers 
                                with expertise in the same 
                                subject matter that the 
                                beginning teachers will be 
                                teaching; or
                                  (II) similar mentoring to 
                                principals or superintendents;
                          (ii) provide mentors time for 
                        activities such as coaching, observing, 
                        and assisting the teachers or school 
                        leaders who are mentored; and
                          (iii) use standards or assessments 
                        for guiding beginning teachers that are 
                        consistent with the State's student 
                        achievement standards and with the 
                        requirements for professional 
                        development activities under section 
                        2033; and
                  (B) establish, expand, or improve alternative 
                routes to State certification of teachers, 
                especially in the areas of mathematics and 
                science, for highly qualified individuals with 
                a baccalaureate degree, including mid-career 
                professionals from other occupations, 
                paraprofessionals, former military personnel, 
                and recent college or university graduates with 
                records of academic distinction who demonstrate 
                the potential to become highly effective 
                teachers.
          (3) Developing and implementing effective mechanisms 
        to assist local educational agencies and schools in 
        effectively recruiting and retaining highly qualified 
        and effective teachers and principals.
          (4) Reforming tenure systems and implementing teacher 
        testing and other procedures to expeditiously remove 
        ineffective teachers from the classroom.
          (5) Developing enhanced performance systems to 
        measure the effectiveness of specific professional 
        development programs and strategies.
          (6) Providing technical assistance to local 
        educational agencies consistent with this part.
          (7) Funding projects to promote reciprocity of 
        teacher certification or licensure 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.
          (8) Developing or assisting local educational 
        agencies in the development and utilization of proven, 
        innovative strategies to deliver intensive professional 
        development programs that are both cost-effective and 
        easily accessible, such as through the use of 
        technology and distance learning.
          (9) Providing assistance to local educational 
        agencies for the development and implementation of 
        innovative professional development programs that train 
        teachers to use technology to improve teaching and 
        learning and are consistent with the requirements of 
        section 2033.
          (10) Developing or assisting local educational 
        agencies in developing merit-based performance systems, 
        rigorous assessments for teachers, and strategies which 
        provide differential and bonus pay for teachers in 
        high-need subject areas such as reading, math, and 
        science and in high-poverty schools and districts.
          (11) Providing assistance to local educational 
        agencies for the development and implementation of 
        professional development programs for principals that 
        enable them to be effective school leaders and prepare 
        all students to achieve challenging State content and 
        student achievement standards, including the 
        development and support of school leadership academies 
        to help exceptionally talented aspiring or current 
        principals and superintendents become outstanding 
        managers and educational leaders.
          (12) Developing, or assisting local educational 
        agencies in developing, teacher advancement initiatives 
        that promote professional growth and emphasize multiple 
        career paths, such as career teacher, mentor teacher, 
        and master teacher career paths, with pay 
        differentiation.
  (f) Coordination.--States receiving grants under section 202 
of the Higher Education Act of 1965 shall coordinate the use of 
such funds with activities carried out under this section.

SEC. 2013. APPLICATIONS BY STATES.

  (a) In General.--To be eligible to receive a grant under this 
subpart, a State 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 under this section shall 
include the following:
          (1) A description of how the State will ensure that a 
        local educational agency receiving a subgrant under 
        subpart 3 will comply with the requirements of such 
        subpart.
          (2) A description of how the State will use funds 
        under this part to meet the requirements of section 
        1119(a)(2).
          (3) A description of how the State will coordinate 
        professional development activities authorized under 
        this part with professional development activities 
        provided under other Federal, State, and local 
        programs, including those authorized under title I, 
        part A of title III, parts A and B of title V, and 
        (where applicable) the Individuals with Disabilities 
        Education Act and the Carl D. Perkins Vocational and 
        Technical Education Act. The application shall also 
        describe the comprehensive strategy that the State will 
        take as part of such coordination effort, to ensure 
        that teachers are trained in the utilization of 
        technology so that technology and its applications are 
        effectively used in the classroom to improve teaching 
        and learning in all curriculum and content areas, as 
        appropriate.
          (4) A description of how the State will encourage the 
        development of proven, innovative strategies to deliver 
        intensive professional development programs that are 
        both cost-effective and easily accessible, such as 
        through the use of technology and distance learning.
          (5) A description of how the State will ensure that 
        local educational agencies will comply with the 
        requirements under section 2033, especially with 
        respect to ensuring the participation of teachers, 
        principals, and parents.
  (c) Application Approval.--A State application submitted to 
the Secretary under this section shall be deemed approved by 
the Secretary unless the Secretary makes a written 
determination, within 90 days after receiving the application, 
that the application is in violation of the provisions of this 
subpart. The Secretary shall not finally disapprove a State 
application except after giving the State notice and 
opportunity for a hearing.

                Subpart 2--Math and Science Partnerships

SEC. 2021. PURPOSE.

  The purpose of this subpart is to improve the achievement of 
students in the areas of mathematics and science by encouraging 
States, institutions of higher education, and local educational 
agencies to participate in programs that--
          (1) focus on education and training of mathematics 
        and science teachers that improves teachers' knowledge 
        and skills and encourages intellectual growth;
          (2) improve 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 such teachers; and
          (3) bring mathematics and science teachers in 
        elementary and secondary schools together with 
        scientists, mathematicians, and engineers to increase 
        the subject matter knowledge of teachers and improve 
        their 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 schools.

SEC. 2022. APPLICATION REQUIREMENTS.

  (a) In General.--An eligible partnership seeking to receive a 
subgrant from a State under this subpart shall submit an 
application to the State at such time, in such manner, and 
accompanied by such information as the State may require.
  (b) Partnership Application Contents.--Each such application 
shall include--
          (1) an assessment of the teacher quality and 
        professional development of all the schools and 
        agencies participating in the eligible partnership with 
        respect to the teaching and learning of mathematics and 
        science;
          (2) a description of how the activities to be carried 
        out by the eligible partnership will be aligned with 
        State academic content standards in mathematics and 
        science and with other educational reform activities 
        that promote student achievement in mathematics and 
        science;
          (3) a description of how the activities to be carried 
        out by the eligible partnership will be based on a 
        review of relevant research, and an explanation of why 
        the activities are expected to improve student 
        achievement and to strengthen the quality of 
        mathematics and science instructions; and
          (4) a description of--
                  (A) how the eligible partnership will carry 
                out the activities described in section 
                2023(c); and
                  (B) the eligible partnership's evaluation and 
                accountability plan described in section 2024.

SEC. 2023. MATH AND SCIENCE PARTNERSHIP SUBGRANTS.

  (a) In General.--From the amount described in section 
2012(d), the State educational agency, working in conjunction 
with the State agency for higher education (if such agencies 
are separate), shall award subgrants on a competitive basis to 
eligible partnerships to enable such partnerships to carry out 
activities described in subsection (c).
  (b) Duration.--The State shall award subgrants under this 
subpart for a period of not less than 2 and not more than 5 
years.
  (c) Authorized Activities.--A recipient of funds provided 
under this subpart may use the funds for the following 
activities related to elementary or secondary schools:
          (1) Establishing and operating mathematics and 
        science summer professional development workshops or 
        institutes for elementary and secondary school teachers 
        that--
                  (A) shall--
                          (i) directly relate to the curriculum 
                        and content areas in which the teacher 
                        provides instruction, and focus only 
                        secondarily on pedagogy;
                          (ii) enhance the ability of a teacher 
                        to understand and use the State's 
                        academic content standards for 
                        mathematics and science and to select 
                        appropriate curricula;
                          (iii) train teachers to use curricula 
                        that are--
                                  (I) based on scientific 
                                research;
                                  (II) aligned with State 
                                academic content standards; and
                                  (III) object-centered, 
                                experiment-oriented, and 
                                concept- and content-based; and
                          (iv) provide supplemental assistance 
                        and follow-up training during the 
                        school year for summer institute 
                        graduates; and
                  (B) may include--
                          (i) programs that provide prospective 
                        teachers and novice teachers 
                        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 
                        follow-up activities, such as 
                        curriculum alignment, distance 
                        learning, and activities that train 
                        teachers to utilize technology in the 
                        classroom.
          (2) Recruiting to the teaching profession--
                  (A) students studying mathematics, 
                engineering, and science; or
                  (B) mathematicians, engineers, and scientists 
                currently working in the field.
          (3) Establishing and operating programs to bring 
        teachers into contact with working scientists, 
        mathematicians, and engineers, to expand teacher 
        content knowledge of and research in science and 
        mathematics.
  (d) Priority.--In awarding subgrants under this subpart, 
States shall give priority to applications seeking funding for 
the activity described in subsection (c)(1).
  (e) Coordination.--Partnerships receiving grants under 
section 203 of the Higher Education Act of 1965 (20 U.S.C. 
1023) shall coordinate the use of such funds with any related 
activities carried out by such partnership with funds made 
available under this subpart.

SEC. 2024. EVALUATION AND ACCOUNTABILITY PLAN.

  (a) In General.--Each eligible partnership receiving a 
subgrant under this subpart shall develop an evaluation and 
accountability plan for activities assisted under this subpart 
that includes rigorous performance objectives that measure the 
impact of activities funded under this subpart.
  (b) Contents.--The plan--
          (1) shall include measurable goals to increase the 
        number of mathematics and science teachers who 
        participate in content-based professional development 
        activities; and
          (2) may include objectives and measures for--
                  (A) improved student achievement on State 
                mathematics and science assessments;
                  (B) increased participation by students in 
                advanced courses in mathematics and science;
                  (C) increased percentages of elementary 
                school teachers with academic majors or minors, 
                or group majors or minors, in mathematics, 
                engineering, or the sciences; and
                  (D) increased percentages of secondary school 
                classes in mathematics and science taught by 
                teachers with academic majors in mathematics 
                and science, respectively.

SEC. 2025. REPORTS; REVOCATION OF SUBGRANTS.

  (a) Reports.--Each eligible partnership receiving a subgrant 
under this subpart annually shall report to the State regarding 
the eligible partnership's progress in meeting the performance 
objectives described in section 2024.
  (b) Revocation.--If the State determines that an eligible 
partnership that receives a subgrant under this subpart for 5 
years is not making substantial progress in meeting the 
performance objectives described in section 2024 by the end of 
the third year of the subgrant, the subgrant payments shall not 
be made for the fourth and fifth years.

SEC. 2026. DEFINITIONS.

  In this subpart:
          (1) Eligible partnership.--The term ``eligible 
        partnership'' means a partnership that--
                  (A) shall include--
                          (i) a State educational agency;
                          (ii) a mathematics or science 
                        department of a private independent 
                        institution of higher education or a 
                        State-supported public institution of 
                        higher education; and
                          (iii) a high need local educational 
                        agency; and
                  (B) may include--
                          (i) another institution of higher 
                        education or the teacher training 
                        department of such an institution;
                          (ii) additional local educational 
                        agencies, public charter schools, 
                        public or private elementary or 
                        secondary schools, or a consortium of 
                        such schools;
                          (iii) a business; or
                          (iv) a nonprofit organization of 
                        demonstrated effectiveness, including a 
                        museum or research institution.
          (2) Summer professional development workshop or 
        institute.--The term ``summer professional development 
        workshop or institute'' means a workshop or institute 
        that--
                  (A) is conducted during a period of not less 
                than 2 weeks;
                  (B) includes as a component a program that 
                provides direct interaction between students 
                and faculty; and
                  (C) provides for follow-up training during 
                the academic year that is conducted in the 
                classroom for a period of not less than 3 
                consecutive or nonconsecutive days, except 
                that--
                          (i) if the workshop or institute is 
                        conducted during a two-week period, the 
                        follow-up training shall be conducted 
                        for a period of at least 4 days; and
                          (ii) if the follow-up training is for 
                        teachers in rural school districts, it 
                        may be conducted through distance 
                        learning.

           Subpart 3--Subgrants to Local Educational Agencies

SEC. 2031. LOCAL USE OF FUNDS.

  (a) In General.--Subject to subsection (b), each local 
educational agency that receives a subgrant under this subpart 
may use the subgrant to carry out the following activities:
          (1) Initiatives to assist in recruiting and hiring 
        fully qualified teachers who will be assigned teaching 
        positions within their field, including--
                  (A) providing signing bonuses or other 
                financial incentives, such as differential pay, 
                for teachers to teach in academic subject areas 
                in which there exists a shortage of such fully 
                qualified teachers within a school or the local 
                educational agency;
                  (B) establishing programs that--
                          (i) recruit professionals from other 
                        fields and provide such professionals 
                        with alternative routes to teacher 
                        certification; and
                          (ii) provide increased opportunities 
                        for minorities, individuals with 
                        disabilities, and other individuals 
                        underrepresented in the teaching 
                        profession; and
                  (C) 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, coupled with a system of 
                intensive screening designed to hire the most 
                qualified applicant.
          (2) Initiatives to promote retention of highly 
        qualified teachers and principals, particularly within 
        elementary and secondary schools with a high percentage 
        of low-achieving students, including programs that 
        provide--
                  (A) mentoring to newly hired teachers, such 
                as from master teachers, or principals or 
                superintendents;
                  (B) incentives, including financial 
                incentives, to retain teachers who have a 
                record of success in helping low-achieving 
                students improve their academic success; or
                  (C) incentives, including financial 
                incentives, to principals who have a record of 
                improving the performance of all students, but 
                particularly students from economically 
                disadvantaged families and students from racial 
                and ethnic minority groups.
          (3) Programs and activities that are designed to 
        improve the quality of the teacher force, such as--
                  (A) innovative professional development 
                programs (which may be through partnerships 
                including institutions of higher education), 
                including programs that train teachers and 
                principals to utilize technology to improve 
                teaching and learning, are consistent with the 
                requirements of section 2033, and are 
                coordinated with part B of title V;
                  (B) development and utilization of proven, 
                cost-effective strategies for the 
                implementation of professional development 
                activities, such as through the utilization of 
                technology and distance learning;
                  (C) tenure reform;
                  (D) merit pay;
                  (E) testing of elementary and secondary 
                school teachers in the subject areas taught by 
                such teachers;
                  (F) professional development programs that 
                provide instruction in how to teach children 
                with different learning styles, particularly 
                children with disabilities and children with 
                special learning needs (including those who are 
                gifted and talented); and
                  (G) professional development programs that 
                provide instruction in methods of improving 
                student behavior in the classroom and how to 
                identify early and appropriate interventions to 
                help children described in subparagraph (F) 
                learn.
          (4) Teacher opportunity payments, consistent with 
        section 2034.
          (5) Professional activities designed to improve the 
        quality of principals and superintendents, including 
        the development and support of academies to help 
        exceptionally talented aspiring or current principals 
        and superintendents become outstanding managers and 
        educational leaders.
          (6) Hiring fully qualified teachers, including 
        teachers who become fully qualified through State and 
        local alternative routes, and special education 
        teachers, in order to reduce class size, particularly 
        in the early grades.
          (7) Teacher advancement initiatives that promote 
        professional growth and emphasize multiple career 
        paths, such as career teacher, mentor teacher, and 
        master teacher career paths, with pay differentiation.
  (b) Special Rule.--
          (1) In general.--For any fiscal year for which the 
        amount described in section 2012(d)(2)(A) for a State 
        is less than 15 percent of the total amount of the 
        funds that the State receives under this subpart for 
        the year that the State does not reserve under section 
        2012(b), each local educational agency that receives a 
        subgrant under this subpart from the State shall use 
        the funds to comply with paragraph (2).
          (2) Requirement.--A local educational agency required 
        to comply with this paragraph shall use not less than 
        the amount expended by the agency under section 2206(b) 
        of this Act (as in effect on the day before the date of 
        the enactment of the No Child Left Behind Act of 2001), 
        for the fiscal year preceding the year in which such 
        enactment occurs, to carry out professional development 
        activities in mathematics and science.

SEC. 2032. LOCAL APPLICATIONS.

  (a) In General.--A local educational agency seeking to 
receive a subgrant from a State under this subpart shall submit 
an application to the State--
          (1) at such time as the State shall require; and
          (2) which is coordinated with other programs under 
        this Act, or other Acts, as appropriate.
  (b) Local Application Contents.--The local application 
described in subsection (a), shall include, at a minimum, the 
following:
          (1) 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 fully 
                qualified teachers;
                  (B) have the largest average class size; or
                  (C) are identified for school improvement 
                under section 1116(b).
          (2) 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, including those authorized 
        under title I, part A of title III, parts A and B of 
        title V, and (where applicable) the Individuals with 
        Disabilities Education Act and the Carl D. Perkins 
        Vocational and Technical Education Act.
          (3) A description of how the local educational agency 
        will integrate funds under this subpart with funds 
        received under part B of title V that are used for 
        professional development to train teachers to utilize 
        technology to improve teaching and learning.
          (4) A description of how the local educational agency 
        has collaborated with teachers, principals, parents, 
        and administrators in the preparation of the 
        application.

SEC. 2033. PROFESSIONAL DEVELOPMENT FOR TEACHERS.

  (a) Requirements for Professional Development Activities.--
Professional development activities under this subpart shall--
          (1) meet the requirements of section 1119(a)(2);
          (2) support professional development activities that 
        give teachers, principals, and administrators the 
        knowledge and skills to provide students with the 
        opportunity to meet challenging State academic content 
        standards and student achievement standards;
          (3) support the recruiting, hiring, and training of 
        fully qualified teachers, including teachers fully 
        qualified through State and local alternative routes;
          (4) advance teacher understanding of effective 
        instructional strategies based on scientifically based 
        research for improving student achievement, at a 
        minimum, in reading or language arts and mathematics;
          (5) be directly related to the curriculum and content 
        areas in which the teacher provides instruction, except 
        that this paragraph shall not apply to subparagraphs 
        (F) and (G) of section 2031(3);
          (6) be designed to enhance the ability of a teacher 
        to understand and use the State's standards for the 
        subject area in which the teacher provides instruction;
          (7) be tied to scientifically based research 
        demonstrating the effectiveness of such professional 
        development activities or programs in increasing 
        student achievement or substantially increasing the 
        knowledge and teaching skills of teachers;
          (8) be of sufficient intensity and duration (not to 
        include 1-day or short-term workshops and conferences) 
        to have a positive and lasting impact on the teacher's 
        performance in the classroom;
          (9) be developed with extensive participation of 
        teachers, principals, parents, and administrators of 
        schools to be served under this subpart;
          (10) be 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 such children, including 
        the appropriate use of curriculum and assessments;
          (11) to the extent appropriate, provide training for 
        teachers and principals in the use of technology so 
        that technology and its applications are effectively 
        used in the classroom to improve teaching and learning 
        in the curriculum and academic content areas in which 
        the teachers provide instruction;
          (12) as a whole, be regularly evaluated for their 
        impact on increased teacher effectiveness and improved 
        student achievement, with the findings of such 
        evaluations used to improve the quality of professional 
        development; and
          (13) provide instruction in methods of teaching 
        children with special needs.
  (b) Professional Development Activities.--Professional 
development activities under this subpart may include--
          (1) instruction in the use of data and assessments to 
        inform and instruct classroom practice;
          (2) instruction in ways that teachers, principals, 
        pupil services personnel, and school administrators may 
        work more effectively with parents;
          (3) the forming of partnerships with institutions of 
        higher education to establish school-based teacher 
        training programs that provide prospective teachers and 
        novice teachers with an opportunity to work under the 
        guidance of experienced teachers and college faculty;
          (4) the creation of programs for paraprofessionals 
        (assisting teachers employed by a local educational 
        agency receiving assistance under this part) to obtain 
        the education necessary for such paraprofessionals to 
        become licensed and certified teachers; and
          (5) activities that provide follow-up training to 
        teachers who have participated in professional 
        development activities which are designed to ensure 
        that the knowledge and skills learned by the teacher 
        are implemented in the classroom.
  (c) Accountability.--
          (1) In general.--If, after any fiscal year, a State 
        determines that the programs or activities funded by a 
        local educational agency fail to meet the requirements 
        of subsection (a), the State shall notify the agency 
        that--
                  (A) it may be subject to paragraph (2); and
                  (B) technical assistance is available from 
                the State to help the agency meet those 
                requirements.
          (2) Requirement to provide teacher opportunity 
        payments.--A local educational agency that has been 
        notified by a State for 2 consecutive years under 
        paragraph (1) shall expend under section 2034 for the 
        succeeding fiscal year a proportion of the amount the 
        agency receives under this subpart that is equal to the 
        proportion of the amount the agency received under this 
        part for the preceding fiscal year that the agency used 
        for professional development.

SEC. 2034. TEACHER OPPORTUNITY PAYMENTS.

  (a) In General.--A local educational agency receiving funds 
under this subpart may (or, in the case of a local educational 
agency described in section 2033(c)(2), shall) provide funds 
directly to a teacher or a group of teachers seeking 
opportunities to participate in a professional development 
activity of their choice that meets the requirements of section 
2033(a) and is selected in consultation with the principal in 
order to coordinate such professional development with other 
reform efforts at the school.
  (b) Notice to Teachers.--Local educational agencies 
distributing funds under this section shall establish and 
implement a timely process through which proper notice of 
availability of funds will be given to all teachers within 
schools identified by the agency and shall develop a process 
whereby teachers will have regular consultation with and be 
specifically recommended by principals to participate in such 
program by virtue of--
          (1) a teacher not being fully qualified to teach in 
        the subject or subjects in which they teach; or
          (2) a teacher's need for additional assistance to 
        ensure that the teacher's students make progress toward 
        meeting challenging State academic content standards 
        and student achievement standards.
  (c) Selection of Teachers.--If adequate funding is not 
available to provide payments under this section to all 
teachers seeking such assistance or identified as needing such 
assistance pursuant to subsection (b), a local educational 
agency shall establish procedures for selecting teachers that 
give priority to teachers described in paragraph (1) or (2) of 
subsection (b).

             Subpart 4--Mid-Career Transitions to Teaching

                 CHAPTER 1--TROOPS-TO-TEACHERS PROGRAM

SEC. 2041. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM.

  (a) Program Authorized.--The Secretary may carry out a 
program (to be known as the ``Troops-to-Teachers Program'')--
          (1) to assist eligible members and former members of 
        the Armed Forces described in section 2042 to obtain 
        certification or licensure as fully qualified 
        elementary school teachers, secondary school teachers, 
        or vocational or technical teachers; and
          (2) to facilitate the employment of such members in 
        elementary schools or secondary schools or as 
        vocational or technical teachers.
  (b) 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 2045. 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.
  (c) Information Regarding Program.--The Secretary shall 
provide to the Secretary of Defense, 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 2042, information regarding the Troops-to-
Teachers Program and applications to participate in the 
program.
  (d) Placement Assistance and Referral Services.--As part of 
the Troops-to-Teachers Program, the Secretary may, with the 
agreement of the Secretary of Defense, provide placement 
assistance and referral services regarding employment 
opportunities with local educational agencies to members of the 
Armed Forces who are discharged or released from active duty 
under other than adverse conditions. Unless the member is also 
selected to participate in the Program under section 2042, a 
member receiving placement assistance and referral services 
under the authority of this subsection is not eligible for 
financial assistance under section 2043.

SEC. 2042. RECRUITMENT AND SELECTION OF PROGRAM PARTICIPANTS.

  (a) Eligible Members.--The following members and former 
members of the Armed Forces are eligible for selection to 
participate in the Troops-to-Teachers 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; or
                  (B) on or after the date of the enactment of 
                the No Child Left Behind Act of 2001, has an 
                approved date of voluntary retirement and, as 
                of the date the member submits an application 
                to participate in the Program, has one year or 
                less of active duty remaining before 
                retirement.
          (2) Any member who, on or after the date of the 
        enactment of the No Child Left Behind Act of 2001--
                  (A) is separated or released from active duty 
                after six or more years of continuous active 
                duty immediately before the separation or 
                release; and
                  (B) executes a reserve commitment agreement 
                for a period of three years under subsection 
                (e)(2).
          (3) Any member who, on or after the date of the 
        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--
                  (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 six 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 its repeal, and who 
                satisfied the eligibility criteria specified in 
                subsection (c) of such section 1151.
  (b) Submission of Applications.--
          (1) Form and submission.--Selection of eligible 
        members and former members of the Armed Forces to 
        participate in the Troops-to-Teachers 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 or former member 
                of the Armed Forces described in paragraph (1), 
                (2), or (3) of subsection (a), the application 
                is submitted not later than four 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 or former 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 and former members of 
        the Armed Forces to participate in the Troops-to-
        Teachers Program.
          (2) Educational background.--If a member or former 
        member of the Armed Forces described in paragraph (1), 
        (2), or (3) of subsection (a) is applying for 
        assistance for placement as an elementary 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. If 
        such a member is applying for assistance for placement 
        as a vocational or technical teacher, the Secretary 
        shall require the member--
                  (A) to have received the equivalent of one 
                year of college from an accredited institution 
                of higher education and have six or more years 
                of military experience in a vocational or 
                technical field; or
                  (B) to otherwise meet the certification or 
                licensure 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 or former member of 
        the Armed Forces is eligible to participate in the 
        Troops-to-Teachers Program only if the member's last 
        period of service in the Armed Forces was characterized 
        as honorable. If the member is selected to participate 
        in the Program before the retirement of the member or 
        the separation or release of the member from active 
        duty, the member may continue to participate in the 
        Program only if, upon the retirement or separation or 
        release from active duty, the member's last period of 
        service is characterized as honorable.
  (d) Selection Priorities.--In selecting eligible members and 
former members of the Armed Forces to receive assistance for 
placement as elementary or secondary school teachers or 
vocational or technical teachers, 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 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 or former member of the 
        Armed Forces to participate in the Troops-to-Teachers 
        Program under this section and receive financial 
        assistance under section 2043 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 2043 
        with respect to the member.
          (2) Reserve commitment agreement.--The Secretary may 
        not select an eligible member or former member of the 
        Armed Forces described in subsection (a)(2)(A) to 
        participate in the Troops-to-Teachers Program under 
        this section and receive financial assistance under 
        section 2043 unless--
                  (A) the Secretary notifies the Secretary 
                concerned and the member that the Secretary has 
                reserved a full stipend or bonus under section 
                2043 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 
                three years (in addition to any other reserve 
                commitment the member may have).

SEC. 2043. PARTICIPATION AGREEMENT AND FINANCIAL ASSISTANCE.

  (a) Participation Agreement.--An eligible member or former 
member of the Armed Forces selected to participate in the 
Troops-to-Teachers Program under section 2042 and receive 
financial assistance under this section shall be required to 
enter into an agreement with the Secretary in which the member 
agrees--
          (1) to obtain, within such time as the Secretary may 
        require, certification or licensure as a fully 
        qualified elementary school teacher, secondary school 
        teacher, or vocational or technical teacher; and
          (2) to accept an offer of full-time employment as a 
        fully qualified elementary school teacher, secondary 
        school teacher, or vocational or technical teacher for 
        not less than three school years with a local 
        educational agency or public charter school, to begin 
        the school year after obtaining that certification or 
        licensure.
  (b) Violation of Participation Agreement; Exceptions.--A 
participant in the Troops-to-Teachers 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 three 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 seeking and unable to find full-time 
        employment as a fully qualified teacher in an 
        elementary 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 Troops-
        to-Teachers Program selected under section 2042 a 
        stipend in an amount up to $5,000.
          (2) Limitation.--The total number of stipends that 
        may be paid under paragraph (1) in any fiscal year may 
        not exceed 3,000.
  (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 Troops-to-Teachers Program selected under 
        section 2042 who agrees in the participation agreement 
        under subsection (a) to accept full-time employment as 
        a fully qualified elementary school teacher, secondary 
        school teacher, or vocational or technical teacher for 
        not less than three 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 1,000.
          (3) High need school defined.--For purposes of 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) At least 50 percent of the students 
                enrolled in the school were children counted 
                under subsection (c) of section 1124 for 
                purposes of making grants under such section to 
                local educational agencies, when such counting 
                was most recently performed.
                  (B) The school has a large percentage of 
                students who qualify for assistance under part 
                B of the Individuals with Disabilities 
                Education Act (20 U.S.C. 1411 et seq.).
                  (C) The school meets any other criteria 
                established by the Secretary in consultation 
                with the National Assessment Governing Board.
  (e) Treatment of Stipend and Bonus.--A stipend or bonus paid 
under this section to a participant in the Troops-to-Teachers 
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 (20 U.S.C. 1070 et seq.).
  (f) Reimbursement Under Certain Circumstances.--
          (1) Reimbursement required.--A participant in the 
        Troops-to-Teachers 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) The participant fails to obtain teacher 
                certification or licensure or employment as a 
                fully qualified elementary school teacher, 
                secondary school teacher, or vocational or 
                technical teacher as required by the 
                participation agreement under subsection (a).
                  (B) 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 three years of required service in 
                violation of the participation agreement.
                  (C) The participant executed a written 
                agreement with the Secretary concerned under 
                section 2042(e)(2) to serve as a member of a 
                reserve component of the Armed Forces for a 
                period of three 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 three 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 ninety 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.
          (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 
        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 Troops-to-
Teachers Program 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. 2044. PARTICIPATION BY STATES.

  (a) Discharge of State Activities Through Consortia of 
States.--The Secretary may permit States participating in the 
Troops-to-Teachers 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 Troops-to-Teachers 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 and former 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 under 
        paragraph (1) in any fiscal year may not exceed 
        $4,000,000.

SEC. 2045. SUPPORT OF INNOVATIVE PRERETIREMENT TEACHER CERTIFICATION 
                    PROGRAMS.

  (a) Development, Implementation and Demonstration.--The 
Secretary may enter into a memorandum of agreement with a 
State, an institution of higher education, or a consortia of 
States or institutions of higher education, to develop, 
implement, and demonstrate teacher certification programs for 
members of the Armed Forces described in section 2042(a)(1)(B) 
for the purpose of assisting such members to consider and 
prepare for a career as a fully qualified elementary school 
teacher, secondary school teacher, or vocational or technical 
teacher upon their retirement from the Armed Forces.
  (b) Program Elements.--A teacher certification program under 
subsection (a) must--
          (1) provide recognition of military experience and 
        training as related to licensure or certification 
        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 also be delivered via 
        distance education methods; and
          (5) address any additional requirements or 
        specifications as established by the Secretary.
  (c) Application Procedures.--A State or institution of higher 
education (or a consortia of States or institutions of higher 
education) that has a program leading to State approved teacher 
certification programs may submit a proposal to the Secretary 
for consideration under subsection (a). The Secretary shall 
give preference to proposals that provide for a sharing of the 
costs to carry out the teacher certification program.
  (d) Continuation of Programs.--The purpose of this section is 
to provide funding to develop, implement, and demonstrate 
teacher certification programs under subsection (a). Upon 
successful completion of the demonstration phase, the continued 
operation of the teacher certification programs shall not be 
the responsibility of the Secretary.
  (e) Funding Limitation.--The total amount obligated by the 
Secretary under this section in any fiscal year may not exceed 
$5,000,000.

SEC. 2046. REPORTING REQUIREMENTS.

  (a) Report Required.--Not later than March 31 of each year, 
the Secretary (in consultation with the Secretary of Defense 
and the Secretary of Transportation) and the Comptroller 
General shall each submit to Congress a report on the 
effectiveness of the Troops-to-Teachers Program in the 
recruitment and retention of qualified personnel by local 
educational agencies and public charter schools.
  (b) Elements of Report.--The report under subsection (a) 
shall include information on the following:
          (1) The number of participants in the Troops-to-
        Teachers Program.
          (2) The schools in which the participants are 
        employed.
          (3) The grade levels at which the participants teach.
          (4) The subject matters 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, as the case may be, considers 
        appropriate.
  (c) Recommendations.--The report of the Comptroller General 
under this section shall also include any recommendations of 
the Comptroller General regarding any means of improving the 
Troops-to-Teachers Program, including means of enhancing the 
recruitment and retention of participants in the Program.

SEC. 2047. DEFINITIONS.

  For purposes of this chapter:
          (1) Armed forces.--The term ``Armed Forces'' means 
        the Army, Navy, Air Force, Marine Corps, and Coast 
        Guard.
          (2) Program.--The term ``Program'' means the Troops-
        to-Teachers Program authorized by this subpart.
          (3) 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.
          (4) 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 a reserve component of 
                the Navy;
                  (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.

                   CHAPTER 2--TRANSITION TO TEACHING

SEC. 2048. PROFESSIONALS SEEKING TO CHANGE CAREERS.

  (a) Purpose.--The purpose of this section is to address the 
need of high-need local educational agencies for highly 
qualified teachers in particular subject areas, such as 
mathematics, science, foreign languages, bilingual education, 
and special education, needed by those agencies, following the 
model of the program under chapter 1, by recruiting, preparing, 
placing, and supporting career-changing professionals who have 
knowledge and experience that will help them become such 
teachers.
  (b) Program Authorized.--The Secretary may award grants, 
contracts, or cooperative agreements to institutions of higher 
education and public and private nonprofit agencies or 
organizations to carry out programs authorized by this section.
  (c) Application.--Each applicant that desires an award under 
subsection (b) shall submit an application to the Secretary 
containing such information as the Secretary requires, 
including--
          (1) a description of the target group of career-
        changing professionals upon which the applicant will 
        focus its recruitment efforts in carrying out its 
        program under this section, including a description of 
        the characteristics of that target group that shows how 
        the knowledge and experience of its members are 
        relevant to meeting the purpose of this section;
          (2) a description of the training that program 
        participants will receive and how that training will 
        relate to their certification as teachers;
          (3) a description of how the applicant will 
        collaborate, as needed, with other institutions, 
        agencies, or organizations to recruit, train, place, 
        support, and provide teacher induction programs to 
        program participants under this section, including 
        evidence of the commitment of those institutions, 
        agencies, or organizations to the applicant's program;
          (4) a description of how the applicant will evaluate 
        the progress and effectiveness of its program, 
        including--
                  (A) the program's goals and objectives;
                  (B) the performance indicators the applicant 
                will use to measure the program's progress; and
                  (C) the outcome measures that will be used to 
                determine the program's effectiveness; and
          (5) such other information and assurances as the 
        Secretary may require.
  (d) Uses of Funds and Period of Service.--
          (1) Authorized activities.--Funds under this section 
        may be used for--
                  (A) recruiting program participants, 
                including informing them of opportunities under 
                the program and putting them in contact with 
                other institutions, agencies, or organizations 
                that would train, place, and support them;
                  (B) training stipends and other financial 
                incentives for program participants, not to 
                exceed $5,000 per participant;
                  (C) assisting institutions of higher 
                education or other providers of teacher 
                training to tailor their training to meet the 
                particular needs of professionals who are 
                changing their careers to teaching;
                  (D) placement activities, including 
                identifying high-need local educational 
                agencies with a need for the particular skills 
                and characteristics of the newly trained 
                program participants and assisting those 
                participants to obtain employment in those 
                local educational agencies; and
                  (E) post-placement induction or support 
                activities for program participants.
          (2) Period of service.--A program participant in a 
        program under this section who completes his or her 
        training shall serve in a high-need local educational 
        agency for at least 3 years.
          (3) Repayment.--The Secretary shall establish such 
        requirements as the Secretary determines appropriate to 
        ensure that program participants who receive a training 
        stipend or other financial incentive under paragraph 
        (1)(B), but fail to complete their service obligation 
        under paragraph (2), repay all or a portion of such 
        stipend or other incentive.
  (e) Equitable Distribution.--To the extent practicable, the 
Secretary shall make awards under this section that support 
programs in different geographic regions of the United States.
  (f) Definition.--As used in this section, the term ``program 
participants'' means career-changing professionals who--
          (1) hold at least a baccalaureate degree;
          (2) demonstrate interest in, and commitment to, 
        becoming a teacher; and
          (3) have knowledge and experience that are relevant 
        to teaching a high-need subject area in a high-need 
        local educational agency.

                           Subpart 5--Funding

SEC. 2051. AUTHORIZATIONS OF APPROPRIATIONS.

  (a) In General.--For the purpose of carrying out this part, 
other than subpart 4, there are authorized to be appropriated 
$3,600,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of fiscal years 2003 through 2006.
  (b) Subpart 4.--For the purpose of carrying out subpart 4, 
there are authorized to be appropriated $50,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of fiscal 
years 2003 through 2006.

                     Subpart 6--General Provisions

SEC. 2061. DEFINITIONS.

  For purposes of 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 subject matter 
                areas in which teachers provide instruction; 
                and
                  (B) when referring to a specific academic 
                subject matter area, the disciplines or content 
                areas in which academic majors are offered by 
                the arts and sciences organizational unit.
          (2) Beginning teacher.--The term ``beginning 
        teacher'' means an educator in a public school who has 
        not yet been teaching 3 full school years.
          (3) Mentoring program.--The term ``mentoring 
        program'' means to provide professional support and 
        development, instruction, and guidance to beginning 
        teachers, but does not include a teacher or individual 
        who begins to work in a supervisory position.
          (4) Publicly report.--The term ``publicly report'', 
        when used with respect to the dissemination of 
        information, means that the information is made widely 
        available to the public, including parents and 
        students, through such means as the Internet and major 
        print and broadcast media outlets.

                  PART [K] B--NATIONAL WRITING PROJECT

SEC. [10991.] 2101. FINDINGS.

  The Congress finds that--
          (1) * * *

           *       *       *       *       *       *       *

SEC. [10992.] 2102. NATIONAL WRITING PROJECT.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Evaluation.--
          (1) In general.--The Secretary shall conduct an 
        independent evaluation by grant or contract of the 
        teacher training programs administered pursuant to this 
        Act in accordance with section [14701.] 8651. 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 the Congress.
          (2) Funding limitation.--The Secretary shall reserve 
        not more than $150,000 from the total amount 
        appropriated pursuant to the authority of subsection 
        (i) for fiscal year [1994] 2002 and the four succeeding 
        fiscal years to conduct the evaluation described in 
        paragraph (1).

           *       *       *       *       *       *       *

  (i) Authorization of Appropriations.--There are authorized to 
be appropriated for the grant to the National Writing Project, 
[$4,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the four succeeding fiscal years,] such 
sums as may be necessary for fiscal year 2002 and the four 
succeeding fiscal years, to carry out the provisions of this 
section.

                        PART C--CIVIC EDUCATION

SEC. 2201. SHORT TITLE.

  This part may be cited as the ``Education for Democracy 
Act''.

SEC. 2202. FINDINGS.

  The Congress finds that--
          (1) college freshmen surveyed in 1999 by the Higher 
        Education Research Institute at the University of 
        California at Los Angeles demonstrated higher levels of 
        disengagement, both academically and politically, than 
        any previous entering class of students;
          (2) college freshmen in 1999 demonstrated the lowest 
        levels of political interest in the 20-year history of 
        surveys conducted by the Higher Education Research 
        Institute at the University of California at Los 
        Angeles;
          (3) United States secondary school students expressed 
        relatively low levels of interest in politics and 
        economics in a 1999 Harris survey;
          (4) the 32d Annual Phi Delta Kappa/Gallup Poll of 
        2000 indicated that preparing students to become 
        responsible citizens was the most important purpose of 
        public schools;
          (5) Americans surveyed by the Organization of 
        Economic Cooperation and Development indicated that 
        only 59 percent had confidence that schools have a 
        major effect on the development of good citizenship;
          (6) teachers too often do not have sufficient 
        expertise in the subjects that they teach, and 50 
        percent of all secondary school history students in 
        America are being taught by teachers with neither a 
        major nor a minor in history;
          (7) secondary school students correctly answered 
        fewer than 50 percent of the questions on a national 
        test of economic knowledge in a 1999 Harris survey;
          (8) the 1998 National Assessment of Educational 
        Progress indicated that students have only superficial 
        knowledge of, and lacked a depth of understanding 
        regarding, civics;
          (9) civics and economic education are important not 
        only to developing citizenship competencies in the 
        United States but also are critical to supporting 
        political stability and economic health in other 
        democracies, particularly emerging democratic market 
        economies;
          (10) more than 75 percent of Americans surveyed by 
        the National Constitution Center in 1997 admitted that 
        they knew only some or very little about the 
        Constitution of the United States; and
          (11) the Constitution of the United States is too 
        often viewed within the context of history and not as a 
        living document that shapes current events.

SEC. 2203. PURPOSE.

  It is the purpose of this part--
          (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. 2204. AUTHORITY.

  The Secretary may make grants to, or enter into contracts 
with--
          (1) the Center for Civic Education to carry out civic 
        education activities in accordance with sections 2205 
        and 2206; and
          (2) the National Council on Economic Education to 
        carry out economic education activities in accordance 
        with section 2206.

SEC. 2205. WE THE PEOPLE PROGRAM.

  (a) Use of Funds.--The Center for Civic Education may use 
funds made available under grants or contracts under section 
2204(1) only to carry out activities--
          (1) under the Citizen and the Constitution program in 
        accordance with subsection (b); and
          (2) under the Project Citizen program in accordance 
        with subsection (c).
  (b) Citizen and the Constitution Program.--
          (1) Educational activities.--The Center for Civic 
        Education--
                  (A) shall use funds made available under 
                grants or contracts under section 2204(1)--
                          (i) to continue and expand the 
                        educational activities of the program 
                        entitled the ``We the People . . . The 
                        Citizen and the Constitution'' 
                        administered by the Center for Civic 
                        Education;
                          (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 assistance made available under 
                section 2204(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.--As a condition of 
        receipt of funds under grants or contracts under 
        section 2204(1), the Secretary shall require the Center 
        for Civic Education to make the education program 
        authorized under this subsection available to public 
        and private elementary schools and secondary schools, 
        including Bureau-funded schools, in each of the 435 
        congressional districts, and in the District of 
        Columbia, the Commonwealth of Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
  (c) Project Citizen.--
          (1) Educational activities.--The Center for Civic 
        Education--
                  (A) shall use funds made available under 
                grants or contracts under section 2204(1)--
                          (i) to continue and expand the 
                        educational activities of the program 
                        entitled the ``We the People . . . 
                        Project Citizen'' program administered 
                        by the 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 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 2204(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.--As a condition of 
        receipt of funds under grants or contracts under 
        section 2204(1), the Secretary shall require the Center 
        for Civic Education to make the education program 
        authorized under this subsection available to public 
        and private middle schools, including Bureau-funded 
        schools, in each of the 50 States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
  (d) 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. 2206. COOPERATIVE CIVIC EDUCATION AND ECONOMIC EDUCATION EXCHANGE 
                    PROGRAMS.

  (a) Use of Funds.--The Center for Civic Education and the 
National Council on Economic Education may use funds made 
available under grants or contracts under section 2204(2) only 
to carry out cooperative education exchange programs that--
          (1) 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) assist eligible countries in the adaptation, 
        implementation, and institutionalization of programs 
        described in paragraph (1);
          (3) create and implement programs for civics and 
        government education, and economic education, for 
        students that draw upon the experiences of the 
        participating eligible countries;
          (4) provide means for the exchange of ideas and 
        experiences in civics and government education, and 
        economic education, among political, educational, 
        governmental, and private sector leaders of 
        participating eligible countries; and
          (5) 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.
  (b) Activities.--In carrying out the cooperative education 
exchange programs assisted under this section, the Center for 
Civic Education and the National Council on Economic Education 
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--
                          (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.
  (c) 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.
  (d) Consultation.--The Secretary may make a grant, or enter 
into a contract, under section 2204(2) only if the Secretary of 
State concurs with the Secretary that such grant, or contract, 
is consistent with the foreign policy of the United States.
  (e) 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 or the National 
        Council on Economic Education may work in conducting 
        such activities, are creditable.
  (f) 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. 2207. FUNDING.

  (a) Authorization of Appropriations.--
          (1) We the people program.--There are authorized to 
        be appropriated to carry out sections 2204(1) and 2205 
        such sums as may be necessary for each of fiscal years 
        2002 through 2006.
          (2) Cooperative civic education and economic 
        education exchange programs.--There are authorized to 
        be appropriated to carry out sections 2204(2) and 2206 
        such sums as may be necessary for each of fiscal years 
        2002 through 2006.
  (b) Limitation.--In each fiscal year, the Secretary may use 
not more than 50 percent of the amount appropriated under 
subsection (a)(2) for assistance for economic educational 
activities.

                  PART D--TEACHER LIABILITY PROTECTION

SEC. 2301. TEACHER IMMUNITY.

  (a) Immunity.--Notwithstanding any other provision of law, no 
school board member of, or teacher or administrator in, a local 
educational agency that receives funds under this Act shall be 
liable for monetary damages in his or her personal capacity for 
an action that was taken in carrying out his or her official 
duties and intended to maintain school discipline, so long as 
that action was not prohibited under State or local law and did 
not constitute reckless or criminal misconduct.
  (b) Limitation.--The immunity established under subsection 
(a) shall apply only to liability arising under Federal law.

                  [TITLE III--TECHNOLOGY FOR EDUCATION

[SEC. 3101. SHORT TITLE.

  [This title may be cited as the ``Technology for Education 
Act of 1994''.

           [PART A--TECHNOLOGY FOR EDUCATION OF ALL STUDENTS

[SEC. 3111. FINDINGS.

  [The Congress finds that--
          [(1) technology can produce far greater opportunities 
        for all students to learn to high standards, promote 
        efficiency and effectiveness in education, and help 
        propel our Nation's school systems into very immediate 
        and dramatic reform, without which our Nation will not 
        meet the National Education Goals by the target year 
        2000;
          [(2) the use of technology as a tool in the teaching 
        and learning process is essential to the development 
        and maintenance of a technologically literate citizenry 
        and an internationally competitive workforce;
          [(3) the acquisition and use of technology in 
        education throughout the United States has been 
        inhibited by--
                  [(A) the absence of Federal leadership;
                  [(B) the inability of many State and local 
                educational agencies to invest in and support 
                needed technologies;
                  [(C) the limited exposure of students and 
                teachers to the power of technology as a cost-
                effective tool to improve student learning and 
                achievement;
                  [(D) the lack of appropriate electrical and 
                telephone connections in the classroom; and
                  [(E) the limited availability of appropriate 
                technology-enhanced curriculum, instruction, 
                professional development, and administrative 
                support resources and services in the 
                educational marketplace;
          [(4) policies at the Federal, State, and local levels 
        concerning technology in education must address 
        disparities in the availability of technology to 
        different groups of students, give priority to serving 
        students in greatest need, and recognize that 
        educational telecommunications and technology can 
        address educational equalization concerns and school 
        restructuring needs by providing universal access to 
        high-quality teaching and programs, particularly in 
        urban and rural areas;
          [(5) the increasing use of new technologies and 
        telecommunications systems in business has increased 
        the gap between schooling and work force preparation, 
        and underscores the need for technology policies at the 
        Federal, State, tribal, and local levels that address 
        preparation for school-to-work transitions;
          [(6) technology can enhance the ongoing professional 
        development of teachers and administrators by providing 
        constant access to updated research in teaching and 
        learning by means of telecommunications, and, through 
        exposure to technology advancements, keep teachers and 
        administrators excited and knowledgeable about 
        unfolding opportunities for the classroom;
          [(7) planned and creative uses of technology, 
        combined with teachers adequately trained in the use of 
        technology, can reshape our Nation's traditional method 
        of providing education and empower teachers to create 
        an environment in which students are challenged through 
        rigorous, rich classroom instruction provided at a pace 
        suited to each student's learning style, and in which 
        students have increased opportunities to develop higher 
        order thinking and technical skills;
          [(8) schools need new ways of financing the 
        acquisition and maintenance of educational technology;
          [(9) the needs for educational technology differ from 
        State to State;
          [(10) technology can provide students, parents, 
        teachers, other education professionals, communities, 
        and industry with increased opportunities for 
        partnerships and with increased access to information, 
        instruction, and educational services in schools and 
        other settings, including homes, libraries, preschool 
        and child-care facilities, adult and family education 
        programs, and postsecondary institutions;
          [(11) the Department, consistent with the overall 
        national technology policy established by the 
        President, must assume a vital leadership and 
        coordinating role in developing the national vision and 
        strategy to infuse advanced technology throughout all 
        educational programs;
          [(12) Federal support can ease the burden at the 
        State and local levels by enabling the acquisition of 
        advanced technology and initiating the development of 
        teacher training and support as well as new educational 
        products;
          [(13) leadership at the Federal level should consider 
        guidelines to ensure that educational technology is 
        accessible to all users with maximum interoperability 
        nationwide;
          [(14) the rapidly changing nature of technology 
        requires coordination and flexibility in Federal 
        leadership; and
          [(15) technology has the potential to assist and 
        support the improvement of teaching and learning in 
        schools and other settings.

[SEC. 3112. STATEMENT OF PURPOSE.

  [The purpose of this part is to support a comprehensive 
system for the acquisition and use by elementary and secondary 
schools in the United States of technology and technology-
enhanced curricula, instruction, and administrative support 
resources and services to improve the delivery of educational 
services. Such system shall include--
          [(1) national leadership with respect to the need 
        for, and the provision of, appropriate technology-
        enhanced curriculum, instruction, and administrative 
        programs to improve learning in the United States, and 
        to promote equal access for all students to educational 
        opportunities in order to achieve the National 
        Education Goals by the year 2000;
          [(2) funding mechanisms which will support the 
        development, interconnection, implementation, 
        improvement, and maintenance of an effective 
        educational technology infrastructure, including 
        activities undertaken by State and local educational 
        agencies to promote and provide equipment, training for 
        teachers and school library and media personnel, and 
        technical support;
          [(3) support for technical assistance, professional 
        development, information and resource dissemination, in 
        order to help States, local educational agencies, 
        teachers, school library and media personnel, and 
        administrators successfully integrate technology into 
        kindergarten through 12th grade classrooms and library 
        media centers;
          [(4) support for the development of educational and 
        instructional programming in core subject areas, which 
        shall address the National Education Goals;
          [(5) strengthening and building upon, but not 
        duplicating, existing telecommunications 
        infrastructures dedicated to educational purposes;
          [(6) development and evaluation of new and emerging 
        educational technologies, telecommunications networks, 
        and state-of-the-art educational technology products 
        that promote the use of advanced technologies in the 
        classroom and school library media center;
          [(7) assessment data regarding state-of-the-art uses 
        of technologies in United States education upon which 
        commercial and noncommercial telecommunications 
        entities, and governments can rely for decisionmaking 
        about the need for, and provision of, appropriate 
        technologies for education in the United States;
          [(8) ensuring that uses of educational technology are 
        consistent with the overall national technology policy 
        established by the President, and ensuring that Federal 
        technology-related policies and programs will 
        facilitate the use of technology in education;
          [(9) ensuring that activities supported under this 
        part will form the basis for sound State and local 
        decisions about investing in, sustaining, and expanding 
        uses of technology in education;
          [(10) establishing working guidelines to ensure 
        maximum interoperability nationwide and ease of access 
        for the emerging technologies so that no school system 
        will be excluded from the technological revolution;
          [(11) ensuring that, as technological advances are 
        made, the educational uses of these advances are 
        considered and their applications are developed; and
          [(12) encouragement of collaborative relationships 
        among the State agency for higher education, the State 
        library administrative agency, the State 
        telecommunications agency, and the State educational 
        agency, in the area of technology support to strengthen 
        the system of education.

[SEC. 3113. DEFINITIONS.

  [For purposes of this title--
          [(1) the term ``adult education'' has the same 
        meaning given such term by section 203 of the Adult 
        Education and Family Literacy Act;
          [(2) the term ``all students'' means students from a 
        broad range of backgrounds and circumstances, including 
        disadvantaged students, students with diverse racial, 
        ethnic, and cultural backgrounds, students with 
        disabilities, students with limited English 
        proficiency, students who have dropped out of school, 
        and academically talented students;
          [(3) the term ``information infrastructure'' means a 
        network of communication systems designed to exchange 
        information among all citizens and residents of the 
        United States;
          [(4) the term ``instructional programming'' means the 
        full range of audio and video data, text, graphics, or 
        additional state-of-the-art communications, including 
        multimedia based resources distributed through 
        interactive, command and control, or passive methods 
        for the purpose of education and instruction;
          [(5) the terms ``interoperable'' and 
        ``interoperability'' mean the ability to exchange 
        easily data with, and connect to, other hardware and 
        software in order to provide the greatest accessibility 
        for all students and other users;
          [(6) the term ``Office'' means the Office of 
        Educational Technology;
          [(7) the term ``public telecommunications entity'' 
        has the same meaning given to such term by section 
        397(12) of the Communications Act of 1934;
          [(8) the term ``regional educational laboratory'' 
        means a regional educational laboratory supported under 
        section 941(h) of the Educational, Research, 
        Development, Dissemination, and Improvement Act of 
        1994;
          [(9) the term ``State educational agency'' includes 
        the Bureau of Indian Affairs for purposes of serving 
        schools funded by the Bureau of Indian Affairs in 
        accordance with this part;
          [(10) the term ``State library administrative 
        agency'' has the same meaning given to such term in 
        section 3 of the Library Services and Construction Act; 
        and
          [(11) the term ``technology'' means state-of-the-art 
        technology products and services, such as closed 
        circuit television systems, educational television and 
        radio programs and services, cable television, 
        satellite, copper and fiber optic transmission, 
        computer hardware and software, video and audio laser 
        and CD-ROM discs, and video and audio tapes.

[SEC. 3114. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

  [(a) Authorization of Appropriations.--
          [(1) Subparts 1, 2, and 3.--There are authorized to 
        be appropriated $200,000,000 for fiscal year 1995 and 
        such sums as may be necessary for each of the four 
        succeeding fiscal years to carry out subparts 1, 2, and 
        3, of which--
                  [(A)(i) $3,000,000 shall be available to 
                carry out subpart 1 (National Programs for 
                Technology in Education) for any such year for 
                which the amount appropriated under this 
                subsection is less than $75,000,000; and
                  [(ii) $5,000,000 shall be available to carry 
                out subpart 1 for any such year for which the 
                amount appropriated under this subsection is 
                equal to or greater than $75,000,000;
                  [(B) $10,000,000 shall be available to carry 
                out subpart 3 (Regional Technical Support and 
                Professional Development) for each such year; 
                and
                  [(C) the remainder shall be available to 
                carry out subpart 2 (State and Local Programs 
                for School Technology Resources) for each such 
                year.
          [(2) Subpart 4.--For the purpose of carrying out 
        subpart 4, there are authorized to be appropriated 
        $50,000,000 for fiscal year 1995 and such sums as may 
        be necessary for each of the four succeeding fiscal 
        years.
  [(b) Funding Rule.--
          [(1) Appropriations of less than $75,000,000.--For 
        any fiscal year for which the amount appropriated under 
        subsection (a)(1) is less than $75,000,000, from the 
        remainder of funds made available under subsection 
        (a)(1)(C) the Secretary shall award grants for the 
        National Challenge Grants in accordance with section 
        3136.
          [(2) Appropriations equal to or greater than 
        $75,000,000.--For any fiscal year for which the amount 
        appropriated under subsection (a)(1) is equal to or 
        greater than $75,000,000, from the remainder of funds 
        made available under subsection (a)(1)(C) the Secretary 
        shall award grants to State educational agencies from 
        allotments under section 3131, except that the 
        Secretary may reserve, from such remainder, such funds 
        as the Secretary determines necessary to meet 
        outstanding obligations for such fiscal year to 
        continue the National Challenge Grants for Technology 
        awarded under section 3136.

[SEC. 3115. LIMITATION ON COSTS.

  [Not more than 5 percent of the funds under this part that 
are made available to a recipient of funds under this part for 
any fiscal year may be used by such recipient for 
administrative costs or technical assistance.

       [Subpart 1--National Programs for Technology in Education

[SEC. 3121. NATIONAL LONG-RANGE TECHNOLOGY PLAN.

  [(a) In General.--The Secretary shall develop and publish not 
later than 12 months after the date of the enactment of the 
Improving America's Schools Act of 1994, and update when the 
Secretary determines appropriate, a national long-range plan 
that supports the overall national technology policy and 
carries out the purposes of this part.
  [(b) Plan Requirements.--The Secretary shall--
          [(1) develop the national long-range plan in 
        consultation with other Federal departments or 
        agencies, State and local education practitioners and 
        policymakers, experts in technology and the 
        applications of technology to education, 
        representatives of distance learning consortia, 
        representatives of telecommunications partnerships 
        receiving assistance under the Star Schools Act, and 
        providers of technology services and products;
          [(2) transmit such plan to the President and to the 
        appropriate committees of the Congress; and
          [(3) publish such plan in a form that is readily 
        accessible to the public.
  [(c) Contents of the Plan.--The national long-range plan 
shall describe the Secretary's activities to promote the 
purposes of this title, including--
          [(1) how the Secretary will encourage the effective 
        use of technology to provide all students the 
        opportunity to achieve State content standards and 
        State student performance standards, especially through 
        programs administered by the Department;
          [(2) joint activities in support of the overall 
        national technology policy with other Federal 
        departments or agencies, such as the Office of Science 
        and Technology Policy, the National Endowment for the 
        Humanities, the National Endowment for the Arts, the 
        National Institute for Literacy, the National 
        Aeronautics and Space Administration, the National 
        Science Foundation, the Bureau of Indian Affairs, and 
        the Departments of Commerce, Energy, Health and Human 
        Services, and Labor--
                  [(A) to promote the use of technology in 
                education, training, and lifelong learning, 
                including plans for the educational uses of a 
                national information infrastructure; and
                  [(B) to ensure that the policies and programs 
                of such departments or agencies facilitate the 
                use of technology for educational purposes, to 
                the extent feasible;
          [(3) how the Secretary will work with educators, 
        State and local educational agencies, and appropriate 
        representatives of the private sector to facilitate the 
        effective use of technology in education;
          [(4) how the Secretary will promote--
                  [(A) higher achievement of all students 
                through the integration of technology into the 
                curriculum;
                  [(B) increased access to the benefits of 
                technology for teaching and learning for 
                schools with a high number or percentage of 
                children from low-income families;
                  [(C) the use of technology to assist in the 
                implementation of State systemic reform 
                strategies;
                  [(D) the application of technological 
                advances to use in education;
                  [(E) increased access to high quality adult 
                and family education services through the use 
                of technology for instruction and professional 
                development; and
                  [(F) increased opportunities for the 
                professional development of teachers in the use 
                of new technologies;
          [(5) how the Secretary will determine, in 
        consultation with appropriate individuals, 
        organizations, industries, and agencies, the 
        feasibility and desirability of establishing guidelines 
        to facilitate an easy exchange of data and effective 
        use of technology in education;
          [(6) how the Secretary will promote the exchange of 
        information among States, local educational agencies, 
        schools, consortia, and other entities concerning the 
        effective use of technology in education;
          [(7) how the Secretary will utilize the outcomes of 
        the evaluation undertaken pursuant to section 3123 to 
        promote the purposes of this part; and
          [(8) the Secretary's long-range measurable goals and 
        objectives relating to the purposes of this part.

[SEC. 3122. FEDERAL LEADERSHIP.

  [(a) Program Authorized.--In order to provide Federal 
leadership in promoting the use of technology in education, the 
Secretary, in consultation with the National Science 
Foundation, the Department of Commerce, the United States 
National Commission on Libraries and Information Sciences, and 
other appropriate Federal agencies, may carry out activities 
designed to achieve the purposes of this part directly or by 
awarding grants or contracts competitively and pursuant to a 
peer review process to, or entering into contracts with, State 
educational agencies, local educational agencies, institutions 
of higher education, or other public and private nonprofit or 
for-profit agencies and organizations.
  [(b) Assistance.--
          [(1) In general.--The Secretary shall provide 
        assistance to the States to enable such States to plan 
        effectively for the use of technology in all schools 
        throughout the State in accordance with the purpose and 
        requirements of section 317 of the Goals 2000: Educate 
        America Act.
          [(2) Other federal agencies.--For the purpose of 
        carrying out coordinated or joint activities consistent 
        with the purposes of this part, the Secretary may 
        accept funds from, and transfer funds to, other Federal 
        agencies.
  [(c) Uses of Funds.--The Secretary shall use funds made 
available to carry out this section for activities designed to 
carry out the purpose of this part, such as--
          [(1) providing assistance to technical assistance 
        providers to enable such providers to improve 
        substantially the services such providers offer to 
        educators regarding the uses of technology for 
        education, including professional development;
          [(2) providing development grants to technical 
        assistance providers, to enable such providers to 
        improve substantially the services such providers offer 
        to educators on the educational uses of technology, 
        including professional development;
          [(3) consulting with representatives of industry, 
        elementary and secondary education, higher education, 
        adult and family education, and appropriate experts in 
        technology and educational applications of technology 
        in carrying out activities under this subpart;
          [(4) research on, and the development of, guidelines 
        to facilitate maximum interoperability, efficiency and 
        easy exchange of data for effective use of technology 
        in education;
          [(5) research on, and the development of, 
        applications for education of the most advanced and 
        newly emerging technologies which research shall be 
        coordinated, when appropriate, with the Office of 
        Educational Research and Improvement, and other Federal 
        agencies;
          [(6) the development, demonstration, and evaluation 
        of the educational aspects of high performance 
        computing and communications technologies and of the 
        national information infrastructure, in providing 
        professional development for teachers, school 
        librarians, and other educators; enriching academic 
        curricula for elementary and secondary schools; 
        facilitating communications among schools, local 
        educational agencies, libraries, parents, and local 
        communities and in other such areas as the Secretary 
        deems appropriate;
          [(7) the development, demonstration, and evaluation 
        of applications of existing technology in preschool 
        education, elementary and secondary education, training 
        and lifelong learning, and professional development of 
        educational personnel;
          [(8) the development and evaluation of software and 
        other products, including multimedia television 
        programming, that incorporate advances in technology 
        and help achieve the National Education Goals, State 
        content standards and State student performance 
        standards;
          [(9) the development, demonstration, and evaluation 
        of model strategies for preparing teachers and other 
        personnel to use technology effectively to improve 
        teaching and learning;
          [(10) the development of model programs that 
        demonstrate the educational effectiveness of technology 
        in urban and rural areas and economically distressed 
        communities;
          [(11) research on, and the evaluation of, the 
        effectiveness and benefits of technology in education;
          [(12) a biennial assessment of, and report to the 
        public regarding, the uses of technology in elementary 
        and secondary education throughout the United States 
        upon which private businesses and Federal, State, 
        tribal, and local governments may rely for 
        decisionmaking about the need for, and provision of, 
        appropriate technologies in schools, which assessment 
        and report shall use, to the extent possible, existing 
        information and resources;
          [(13) conferences on, and dissemination of 
        information regarding, the uses of technology in 
        education;
          [(14) the development of model strategies to promote 
        gender equity concerning access to, and the use of, 
        technology in the classroom;
          [(15) encouraging collaboration between the 
        Department and other Federal agencies in the 
        development, implementation, evaluation and funding of 
        applications of technology for education, as 
        appropriate; and
          [(16) such other activities as the Secretary 
        determines will meet the purposes of this subpart.
  [(d) Non-Federal Share.--
          [(1) In general.--Subject to paragraphs (2) and (3), 
        the Secretary may require any recipient of a grant or 
        contract under this section to share in the cost of the 
        activities assisted under such grant or contract, which 
        non-Federal share shall be announced through a notice 
        in the Federal Register and may be in the form of cash 
        or in-kind contributions, fairly valued.
          [(2) Increase.--The Secretary may increase the non-
        Federal share that is required of a recipient of a 
        grant or contract under this section after the first 
        year such recipient receives funds under such grant or 
        contract.
          [(3) Maximum.--The non-Federal share required under 
        this section shall not exceed 50 percent of the cost of 
        the activities assisted pursuant to a grant or contract 
        under this section.

[SEC. 3123. STUDY, EVALUATION AND REPORT OF FUNDING ALTERNATIVES.

  [The Secretary, through the Office of Educational Technology, 
shall conduct a study to evaluate, and report to the Congress 
on, the feasibility of several alternative models for providing 
sustained and adequate funding for schools throughout the 
United States so that such schools are able to acquire and 
maintain technology-enhanced curriculum, instruction, and 
administrative support resources and services. Such report 
shall be submitted to the Congress not later than one year 
after the date of enactment of the Improving America's Schools 
Act of 1994.

  [Subpart 2--State and Local Programs for School Technology Resources

[SEC. 3131. ALLOTMENT AND REALLOTMENT.

  [(a) Allotment.--
          [(1) In general.--Except as provided in paragraph 
        (2), each State educational agency shall be eligible to 
        receive a grant under this subpart for a fiscal year in 
        an amount which bears the same relationship to the 
        amount made available under section 3114(a)(1)(C) for 
        such year as the amount such State received under part 
        A of title I for such year bears to the amount received 
        for such year under such part by all States.
          [(2) Minimum.--No State educational agency shall be 
        eligible to receive a grant under paragraph (1) in any 
        fiscal year in an amount which is less than one-half of 
        one percent of the amount made available under section 
        3115(a)(1)(C) for such year.
  [(b) Reallotment of Unused Funds.--
          [(1) In general.--The amount of any State educational 
        agency's allotment under subsection (a) for any fiscal 
        year which the Secretary determines will not be 
        required for such fiscal year to carry out this subpart 
        shall be available for reallotment from time to time, 
        on such dates during such year as the Secretary may 
        determine, to other State educational agencies in 
        proportion to the original allotments to such State 
        educational agencies under subsection (a) for such 
        year, but with such proportionate amount for any of 
        such other State educational agencies being reduced to 
        the extent such amount exceeds the sum the Secretary 
        estimates such State needs and will be able to use for 
        such year.
          [(2) Other reallotments.--The total of reductions 
        under paragraph (1) shall be similarly reallotted among 
        the State educational agencies whose proportionate 
        amounts were not so reduced. Any amounts reallotted to 
        a State educational agency under this subsection during 
        a year shall be deemed a subpart of such agencies 
        allotment under subsection (a) for such year.

[SEC. 3132. SCHOOL TECHNOLOGY RESOURCE GRANTS.

  [(a) Grants to States.--
          [(1) In general.--From amounts made available under 
        section 3131, the Secretary, through the Office of 
        Educational Technology, shall award grants to State 
        educational agencies having applications approved under 
        section 3133.
          [(2) Use of grants.--(A) Each State educational 
        agency receiving a grant under paragraph (1) shall use 
        such grant funds to award grants, on a competitive 
        basis, to local educational agencies to enable such 
        local educational agencies to carry out the activities 
        described in section 3134.
          [(B) In awarding grants under subparagraph (A), each 
        State educational agency shall ensure that each such 
        grant is of sufficient duration, and of sufficient 
        size, scope, and quality, to carry out the purposes of 
        this part effectively.
  [(b) Technical Assistance.--Each State educational agency 
receiving a grant under paragraph (1) shall--
          [(1) identify the local educational agencies served 
        by the State educational agency that--
                  [(A) have the highest number or percentage of 
                children in poverty; and
                  [(B) demonstrate to such State educational 
                agency the greatest need for technical 
                assistance in developing the application under 
                section 3133; and
          [(2) offer such technical assistance to such local 
        educational agencies.

[SEC. 3133. STATE APPLICATION.

  [To receive funds under this subpart, each State educational 
agency shall submit a statewide educational technology plan 
which may include plans submitted under the Goals 2000: Educate 
America Act or other statewide technology plans which meet the 
requirements of this section. Such application shall be 
submitted to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require. Each such application shall contain a systemic 
statewide plan that--
          [(1) outlines long-term strategies for financing 
        technology education in the State and describes how 
        business, industry, and other public and private 
        agencies, including libraries, library literacy 
        programs, and institutions of higher education, can 
        participate in the implementation, ongoing planning, 
        and support of the plan; and
          [(2) meets such other criteria as the Secretary may 
        establish in order to enable such agency to provide 
        assistance to local educational agencies that have the 
        highest numbers or percentages of children in poverty 
        and demonstrate the greatest need for technology, in 
        order to enable such local educational agencies, for 
        the benefit of school sites served by such local 
        educational agencies, to carry out activities such as--
                  [(A) purchasing quality technology resources;
                  [(B) installing various linkages necessary to 
                acquire connectivity;
                  [(C) integrating technology into the 
                curriculum in order to improve student learning 
                and achievement;
                  [(D) providing teachers and library media 
                personnel with training or access to training;
                  [(E) providing administrative and technical 
                support and services that improve student 
                learning through enriched technology-enhanced 
                resources, including library media resources;
                  [(F) promoting in individual schools the 
                sharing, distribution, and application of 
                educational technologies with demonstrated 
                effectiveness;
                  [(G) assisting schools in promoting parent 
                involvement;
                  [(H) assisting the community in providing 
                literacy-related services;
                  [(I) establishing partnerships with private 
                or public educational providers or other 
                entities to serve the needs of children in 
                poverty; and
                  [(J) providing assurances that financial 
                assistance provided under this part shall 
                supplement, not supplant, State and local 
                funds.

[SEC. 3134. LOCAL USES OF FUNDS.

  [Each local educational agency, to the extent possible, shall 
use the funds made available under section 3132(a)(2) for--
          [(1) developing, adapting, or expanding existing and 
        new applications of technology to support the school 
        reform effort;
          [(2) funding projects of sufficient size and scope to 
        improve student learning and, as appropriate, support 
        professional development, and provide administrative 
        support;
          [(3) acquiring connectivity linkages, resources, and 
        services, including the acquisition of hardware and 
        software, for use by teachers, students and school 
        library media personnel in the classroom or in school 
        library media centers, in order to improve student 
        learning by supporting the instructional program 
        offered by such agency to ensure that students in 
        schools will have meaningful access on a regular basis 
        to such linkages, resources and services;
          [(4) providing ongoing professional development in 
        the integration of quality educational technologies 
        into school curriculum and long-term planning for 
        implementing educational technologies;
          [(5) acquiring connectivity with wide area networks 
        for purposes of accessing information and educational 
        programming sources, particularly with institutions of 
        higher education and public libraries; and
          [(6) providing educational services for adults and 
        families.

[SEC. 3135. LOCAL APPLICATIONS.

  [Each local educational agency desiring assistance from a 
State educational agency under section 3132(a)(2) shall submit 
an application, consistent with the objectives of the systemic 
statewide 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. Such application, at 
a minimum, shall--
          [(1) include a strategic, long-range (three- to five-
        year), plan that includes--
                  [(A) a description of the type of 
                technologies to be acquired, including specific 
                provisions for interoperability among 
                components of such technologies and, to the 
                extent practicable, with existing technologies;
                  [(B) an explanation of how the acquired 
                technologies will be integrated into the 
                curriculum to help the local educational agency 
                enhance teaching, training, and student 
                achievement;
                  [(C) an explanation of how programs will be 
                developed in collaboration with existing adult 
                literacy services providers to maximize the use 
                of such technologies;
                  [(D)(i) a description of how the local 
                educational agency will ensure ongoing, 
                sustained professional development for 
                teachers, administrators, and school library 
                media personnel served by the local educational 
                agency to further the use of technology in the 
                classroom or library media center; and
                  [(ii) a list of the source or sources of 
                ongoing training and technical assistance 
                available to schools, teachers and 
                administrators served by the local educational 
                agency, such as State technology offices, 
                intermediate educational support units, 
                regional educational laboratories or 
                institutions of higher education;
                  [(E) a description of the supporting 
                resources, such as services, software and print 
                resources, which will be acquired to ensure 
                successful and effective use of technologies 
                acquired under this section;
                  [(F) the projected timetable for implementing 
                such plan in schools;
                  [(G) the projected cost of technologies to be 
                acquired and related expenses needed to 
                implement such plan; and
                  [(H) a description of how the local 
                educational agency will coordinate the 
                technology provided pursuant to this subpart 
                with other grant funds available for technology 
                from State and local sources;
          [(2) describe how the local educational agency will 
        involve parents, public libraries, business leaders and 
        community leaders in the development of such plan;
          [(3) describe how the acquired instructionally based 
        technologies will help the local educational agency--
                  [(A) promote equity in education in order to 
                support State content standards and State 
                student performance standards that may be 
                developed; and
                  [(B) provide access for teachers, parents and 
                students to the best teaching practices and 
                curriculum resources through technology; and
          [(4) describe a process for the ongoing evaluation of 
        how technologies acquired under this section--
                  [(A) will be integrated into the school 
                curriculum; and
                  [(B) will affect student achievement and 
                progress toward meeting the National Education 
                Goals and any challenging State content 
                standards and State student performance 
                standards that may be developed.
  [(d) Formation of Consortia.--A local educational agency for 
any fiscal year may apply for financial assistance as part of a 
consortium with other local educational agencies, institutions 
of higher education, intermediate educational units, libraries, 
or other educational entities appropriate to provide local 
programs. The State educational agency may assist in the 
formation of consortia among local educational agencies, 
providers of educational services for adults and families, 
institutions of higher education, intermediate educational 
units, libraries, or other appropriate educational entities to 
provide services for the teachers and students in a local 
educational agency at the request of such local educational 
agency.
  [(e) Coordination of Application Requirements.--If a local 
educational agency submitting an application for assistance 
under this section has developed a comprehensive education 
improvement plan, in conjunction with requirements under this 
Act or the Goals 2000: Educate America Act, the State 
educational agency may approve such plan, or a component of 
such plan, notwithstanding the requirements of subsection (e) 
if the State educational agency determines that such approval 
would further the purposes of this subpart.

[SEC. 3136. NATIONAL CHALLENGE GRANTS FOR TECHNOLOGY IN EDUCATION.

  [(a) Grants Authorized.--
          [(1) In general.--From amounts made available under 
        section 3115(b)(1) for any fiscal year the Secretary is 
        authorized to award grants, on a competitive basis, to 
        consortia having applications approved under subsection 
        (d), which consortia shall include at least one local 
        educational agency with a high percentage or number of 
        children living below the poverty line and may include 
        other local educational agencies, State educational 
        agencies, institutions of higher education, businesses, 
        academic content experts, software designers, museums, 
        libraries, or other appropriate entities.
          [(2) Duration.--Grants under this section shall be 
        awarded for a period of 5 years.
  [(b) Use of Grants.--Grants awarded under subsection (a) 
shall be used for activities similar to the activities 
described in section 3134.
  [(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to consortia which demonstrate in 
the application submitted under subsection (d) that--
          [(1) the project for which assistance is sought is 
        designed to serve areas with a high number or 
        percentage of disadvantaged students or the greatest 
        need for educational technology;
          [(2) the project will directly benefit students by, 
        for example, integrating the acquired technologies into 
        curriculum to help the local educational agency enhance 
        teaching, training, and student achievement;
          [(3) the project will ensure ongoing, sustained 
        professional development for teachers, administrators, 
        and school library media personnel served by the local 
        educational agency to further the use of technology in 
        the classroom or library media center;
          [(4) the project will ensure successful, effective, 
        and sustainable use of technologies acquired under this 
        subsection; and
          [(5) members of the consortia or other appropriate 
        entities will contribute substantial financial and 
        other resources to achieve the goals of the project.
  [(d) Application.--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.

[SEC. 3137. FEDERAL ADMINISTRATION.

  [(a) Evaluation Procedures.--The Secretary shall develop 
procedures for State and local evaluations of the programs 
under this subpart.
  [(b) Evaluation Summary.--The Secretary shall submit to the 
Congress four years after the enactment of the Improving 
America's Schools Act of 1994 a summary of the State 
evaluations of programs under this subpart in accordance with 
the provisions of section 14701.

  [Subpart 3--Regional Technical Support and Professional Development

[SEC. 3141. REGIONAL TECHNICAL SUPPORT AND PROFESSIONAL DEVELOPMENT.

  [(a) Grants Authorized.--
          [(1) Authority.--The Secretary, through the Office of 
        Educational Technology, shall make grants in accordance 
        with the provisions of this section, to regional 
        entities such as the Eisenhower Mathematics and Science 
        Regional Consortia under part C of title XIII, the 
        regional education laboratories, the comprehensive 
        regional assistance centers, or such other regional 
        entities as may be designated or established by the 
        Secretary. In awarding grants under this section, the 
        Secretary shall give priority to such consortia and 
        shall ensure that each geographic region of the United 
        States shall be served by such a consortium.
          [(2) Requirements.--Each consortium receiving a grant 
        under this section shall--
                  [(A) be composed of State educational 
                agencies, institutions of higher education, 
                nonprofit organizations, or a combination 
                thereof;
                  [(B) in cooperation with State and local 
                educational agencies, develop a regional 
                program that addresses professional 
                development, technical assistance, and 
                information resource dissemination, with 
                special emphasis on meeting the documented 
                needs of educators and learners in the region; 
                and
                  [(C) foster regional cooperation and resource 
                and coursework sharing.
  [(b) Functions.--
          [(1) Technical assistance.--Each consortium receiving 
        a grant under this section shall, to the extent 
        practicable--
                  [(A) collaborate with State educational 
                agencies and local educational agencies 
                requesting collaboration, particularly in the 
                development of strategies for assisting those 
                schools with the highest numbers or percentages 
                of disadvantaged students with little or no 
                access to technology in the classroom;
                  [(B) provide information, in coordination 
                with information available from the Secretary, 
                to State educational agencies, local 
                educational agencies, schools and adult 
                education programs, on the types and features 
                of various educational technology equipment and 
                software available, evaluate and make 
                recommendations on equipment and software that 
                support the National Education Goals and are 
                suited for a school's particular needs, and 
                compile and share information regarding 
                creative and effective applications of 
                technology in the classroom and school library 
                media centers in order to support the purposes 
                of this part;
                  [(C) collaborate with such State educational 
                agencies, local educational agencies, or 
                schools requesting to participate in the 
                tailoring of software programs and other 
                supporting materials to meet challenging State 
                content standards or challenging State student 
                performance standards that may be developed; 
                and
                  [(D) provide technical assistance to 
                facilitate use of the electronic dissemination 
                networks by State and local educational 
                agencies and schools throughout the region.
          [(2) Professional development.--Each consortium 
        receiving a grant under this section shall, to the 
        extent practicable--
                  [(A) develop and implement, in collaboration 
                with State educational agencies and 
                institutions of higher education, technology-
                specific, ongoing professional development, 
                such as--
                          [(i) intensive school year and summer 
                        workshops that use teachers, school 
                        librarians, and school library 
                        personnel to train other teachers, 
                        school librarians, and other school 
                        library media personnel; and
                          [(ii) distance professional 
                        development, including--
                                  [(I) interactive training 
                                tele-courses using researchers, 
                                educators, and 
                                telecommunications personnel 
                                who have experience in 
                                developing, implementing, or 
                                operating educational and 
                                instructional technology as a 
                                learning tool;
                                  [(II) onsite courses teaching 
                                teachers to use educational and 
                                instructional technology and to 
                                develop their own instructional 
                                materials for effectively 
                                incorporating technology and 
                                programming in their own 
                                classrooms;
                                  [(III) methods for successful 
                                integration of instructional 
                                technology into the curriculum 
                                in order to improve student 
                                learning and achievement;
                                  [(IV) video conferences and 
                                seminars which offer 
                                professional development 
                                through peer interaction with 
                                experts as well as other 
                                teachers using technologies in 
                                their classrooms; and
                                  [(V) mobile education 
                                technology and training 
                                resources;
                  [(B) develop training resources that--
                          [(i) are relevant to the needs of the 
                        region and schools within the region;
                          [(ii) are relevant to the needs of 
                        adult literacy staff and volunteers, 
                        including onsite courses on how to--
                                  [(I) use instructional 
                                technology; and
                                  [(II) develop instructional 
                                materials for adult learning; 
                                and
                          [(iii) are aligned with the needs of 
                        teachers and administrators in the 
                        region;
                  [(C) establish a repository of professional 
                development and technical assistance resources;
                  [(D) identify and link technical assistance 
                providers to State and local educational 
                agencies, as needed;
                  [(E) ensure that training, professional 
                development, and technical assistance meet the 
                needs of educators, parents, and students 
                served by the region;
                  [(F) assist colleges and universities within 
                the region to develop and implement preservice 
                training programs for students enrolled in 
                teacher education programs; and
                  [(G) assist local educational agencies and 
                schools in working with community members and 
                parents to develop support from communities and 
                parents for educational technology programs and 
                projects.
          [(3) Information and resource dissemination.--Each 
        consortium receiving a grant under this section shall, 
        to the extent practicable--
                  [(A) assist State and local educational 
                agencies in the identification and procurement 
                of financial, technological and human resources 
                needed to implement technology plans;
                  [(B) provide outreach and, at the request of 
                a State or local educational agency, work with 
                such agency to assist in the development and 
                validation of instructionally based technology 
                education resources; and
                  [(C) coordinate activities and establish 
                partnerships with organizations and 
                institutions of higher education that represent 
                the interests of the region as such interests 
                pertain to the application of technology in 
                teaching, learning, instructional management, 
                dissemination, collection and distribution of 
                educational statistics, and the transfer of 
                student information.
          [(4) Coordination.--Each consortium receiving a grant 
        under this section shall work collaboratively, and 
        coordinate the services the consortium provides, with 
        appropriate regional and other entities assisted in 
        whole or in part by the Department.

                    [Subpart 4--Product Development

[SEC. 3151. EDUCATIONAL TECHNOLOGY PRODUCT DEVELOPMENT.

  [(a) Purpose.--It is the purpose of this subpart to--
          [(1) support development of curriculum-based learning 
        resources using state-of-the-art technologies and 
        techniques designed to improve student learning; and
          [(2) support development of long-term comprehensive 
        instructional programming and associated support 
        resources that ensure maximum access by all educational 
        institutions.
  [(b) Federal Assistance Authorized.--
          [(1) In general.--The Secretary shall provide 
        assistance, on a competitive basis, to eligible 
        consortia to enable such entities to develop, produce, 
        and distribute state-of-the-art technology-enhanced 
        instructional resources and programming for use in the 
        classroom or to support professional development for 
        teachers.
          [(2) Grants and loans authorized.--In carrying out 
        the purposes of this section, the Secretary is 
        authorized to pay the Federal share of the cost of the 
        development, production, and distribution of state-of-
        the-art technology enhanced instructional resources and 
        programming--
                  [(A) by awarding grants to, or entering into 
                contracts or cooperative agreements with, 
                eligible consortia; or
                  [(B) by awarding loans to eligible consortia 
                which--
                          [(i) shall be secured in such manner 
                        and be repaid within such period, not 
                        exceeding 20 years, as may be 
                        determined by the Secretary;
                          [(ii) shall bear interest at a rate 
                        determined by the Secretary which shall 
                        be not more than the total of one-
                        quarter of 1 percent per annum added to 
                        the rate of interest paid by the 
                        Secretary on funds obtained from the 
                        Secretary of the Treasury; and
                          [(iii) may be forgiven by the 
                        Secretary, in an amount not to exceed 
                        25 percent of the total loan, under 
                        such terms and conditions as the 
                        Secretary may consider appropriate.
          [(3) Matching requirement.--The Secretary may require 
        any recipient of a grant or contract under this subpart 
        to share in the cost of the activities assisted under 
        such grant or contract, which non-Federal share shall 
        be announced through a notice in the Federal Register 
        and may be in the form of cash or in-kind 
        contributions, fairly valued.
          [(4) Eligible consortium.--For the purpose of this 
        subsection, the term ``eligible consortium'' means a 
        consortium--
                  [(A) that shall include--
                          [(i) a State or local educational 
                        agency; and
                          [(ii) a business, industry, or 
                        telecommunications entity; and
                  [(B) that may include--
                          [(i) a public or private nonprofit 
                        organization; or
                          [(ii) a postsecondary institution.
          [(5) Priorities.--In awarding assistance under this 
        section, the Secretary shall give priority to 
        applications describing programs or systems that--
                  [(A) promote the acquisition of higher-order 
                thinking skills and promise to raise the 
                achievement levels of all students, 
                particularly disadvantaged students who are not 
                realizing their potential;
                  [(B) are aligned with challenging State 
                content standards and State and local 
                curriculum frameworks;
                  [(C) may be adapted and applied nationally at 
                a reasonable cost over a broad technology 
                platform;
                  [(D) convert technology resources developed 
                with support from the Department of Defense and 
                other Federal agencies for effective use in the 
                classroom;
                  [(E) show promise of reducing the costs of 
                providing high-quality instruction;
                  [(F) show promise of expanding access to 
                high-quality instruction in content areas which 
                would otherwise not be available to students in 
                rural and urban communities or who are served 
                by other educational agencies with limited 
                financial resources;
                  [(G) are developed in consultation with 
                classroom teachers;
                  [(H) are developed through consultation and 
                collaboration with appropriate education 
                entities in designing the product to ensure 
                relevance to the voluntary national content 
                standards, the voluntary national student 
                performance standards and State curriculum 
                frameworks; and
                  [(I) are developed so that the product can be 
                adapted for use by adults in need of literacy 
                services, including English as a second 
                language and preparation for a secondary school 
                diploma or its recognized equivalent.
          [(6) Requirements for federal assistance.--Each 
        eligible consortium desiring Federal assistance under 
        this section shall submit an application to the 
        Secretary at such time and in such manner as the 
        Secretary may prescribe. Each application shall 
        include--
                  [(A) a description of how the product will 
                improve the achievement levels of students;
                  [(B) a description of how the activities 
                assisted under this section will promote 
                professional development of teachers and 
                administrators in the uses and applications of 
                the product, including the development of 
                training materials;
                  [(C) a description of design, development, 
                field testing, evaluation, and distribution of 
                products, where appropriate;
                  [(D) an assurance that the product shall 
                effectively serve a significant number or 
                percentage of economically disadvantaged 
                students;
                  [(E) plans for dissemination of products to a 
                wide audience of learners;
                  [(F) a description of how the product can be 
                adapted for use by students with disabilities 
                including provisions for closed captioning or 
                descriptive video, where appropriate;
                  [(G) a description of how ownership and 
                rights to the use and marketing of any product 
                developed by the consortium, including 
                intellectual property rights, will be allocated 
                among consortium participants; and
                  [(H) a description of the contributions, 
                including services and funds, to be made by 
                each member of the consortium, and how any 
                revenues derived from the sale of any product 
                developed by the consortium shall be 
                distributed.
  [(c) Consumer Report.--The Secretary shall provide for the 
independent evaluation of products developed under this section 
and shall disseminate information about products developed 
pursuant to provisions of this section to State and local 
educational agencies, and other organizations or individuals 
that the Secretary determines to be appropriate, through print 
and electronic media that are accessible to the education 
community at large.
  [(d) Proceeds.--The Secretary shall not prohibit an eligible 
consortium or any of the members of such consortium from 
receiving financial benefits from the distribution of any 
products resulting from the assistance received under this 
section. Notwithstanding any other provision of law, any 
profits or royalties received by a State educational agency, 
local educational agency, or other nonprofit member of an 
eligible consortium receiving assistance under this section 
shall be used to support further development of curriculum-
based learning resources, services, and programming or to 
provide access to such products for a wider 
audience.

                     [PART B--STAR SCHOOLS PROGRAM

[SEC. 3201. SHORT TITLE.

  [This part may be cited as the ``Star Schools Act''.

[SEC. 3202. FINDINGS.

  [The Congress finds that--
          [(1) the Star Schools program has helped to encourage 
        the use of distance learning strategies to serve multi-
        State regions primarily by means of satellite and 
        broadcast television;
          [(2) in general, distance learning programs have been 
        used effectively to provide students in small, rural, 
        and isolated schools with courses and instruction, such 
        as science and foreign language instruction, that the 
        local educational agency is not otherwise able to 
        provide; and
          [(3) distance learning programs may also be used to--
                  [(A) provide students of all ages in all 
                types of schools and educational settings with 
                greater access to high-quality instruction in 
                the full range of core academic subjects that 
                will enable such students to meet challenging, 
                internationally competitive, educational 
                standards;
                  [(B) expand professional development 
                opportunities for teachers;
                  [(C) contribute to achievement of the 
                National Education Goals; and
                  [(D) expand learning opportunities for 
                everyone.

[SEC. 3203. PURPOSE.

  [It is the purpose of this part to encourage improved 
instruction in mathematics, science, and foreign languages as 
well as other subjects, such as literacy skills and vocational 
education, and to serve underserved populations, including the 
disadvantaged, illiterate, limited-English proficient, and 
individuals with disabilities, through a star schools program 
under which grants are made to eligible telecommunication 
partnerships to enable such partnerships to--
          [(1) develop, construct, acquire, maintain and 
        operate telecommunications audio and visual facilities 
        and equipment;
          [(2) develop and acquire educational and 
        instructional programming; and
          [(3) obtain technical assistance for the use of such 
        facilities and instructional programming.

[SEC. 3204. GRANTS AUTHORIZED.

  [(a) Authority.--The Secretary, through the Office of 
Educational Technology, is authorized to make grants, in 
accordance with the provisions of this part, to eligible 
entities to pay the Federal share of the cost of--
          [(1) the development, construction, acquisition, 
        maintenance and operation of telecommunications 
        facilities and equipment;
          [(2) the development and acquisition of live, 
        interactive instructional programming;
          [(3) the development and acquisition of preservice 
        and inservice teacher training programs based on 
        established research regarding teacher-to-teacher 
        mentoring, effective skill transfer, and ongoing, in-
        class instruction;
          [(4) the establishment of teleconferencing facilities 
        and resources for making interactive training available 
        to teachers;
          [(5) obtaining technical assistance; and
          [(6) the coordination of the design and connectivity 
        of telecommunications networks to reach the greatest 
        number of schools.
  [(b) Duration.--
          [(1) In general.--The Secretary shall award grants 
        pursuant to subsection (a) for a period of 5 years.
          [(2) Renewal.--Grants awarded pursuant to subsection 
        (a) may be renewed for one additional three-year 
        period.
  [(c) Authorization of Appropriations.--
          [(1) In general.--There are authorized to be 
        appropriated $35,000,000 for fiscal year 1995, and such 
        sums as may be necessary for each of the four 
        succeeding fiscal years, to carry out this part.
          [(2) Availability.--Funds appropriated pursuant to 
        the authority of subsection (a) shall remain available 
        until expended.
  [(d) Limitations.--
          [(1) In general.--A grant under this section shall 
        not exceed--
                  [(A) five years in duration; and
                  [(B) $10,000,000 in any one fiscal year.
          [(2) Instructional programming.--Not less than 25 
        percent of the funds available to the Secretary in any 
        fiscal year under this part shall be used for the cost 
        of instructional programming.
          [(3) Special rule.--Not less than 50 percent of the 
        funds available in any fiscal year under this part 
        shall be used for the cost of facilities, equipment, 
        teacher training or retraining, technical assistance, 
        or programming, for local educational agencies which 
        are eligible to receive assistance under part A of 
        title I.
  [(e) Federal Share.--
          [(1) In general.--The Federal share of the cost of 
        projects funded under this section shall not exceed--
                  [(A) 75 percent for the first and second 
                years for which an eligible telecommunications 
                partnership receives a grant under this part;
                  [(B) 60 percent for the third and fourth such 
                years; and
                  [(C) 50 percent for the fifth such year.
          [(2) Reduction or waiver.--The Secretary may reduce 
        or waive the requirement of the non-Federal share under 
        paragraph (1) upon a showing of financial hardship.
  [(f) Authority To Accept Funds From Other Agencies.--The 
Secretary is authorized to accept funds from other Federal 
departments or agencies to carry out the purposes of this 
section, including funds for the purchase of equipment.
  [(g) 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 part with the 
activities of such department or agency relating to a 
telecommunications network for educational purposes.
  [(h) Closed Captioning and Descriptive Video.--Each entity 
receiving funds under this part is encouraged to provide--
          [(1) closed captioning of the verbal content of such 
        program, where appropriate, to be broadcast by way of 
        line 21 of the vertical blanking interval, or by way of 
        comparable successor technologies; and
          [(2) descriptive video of the visual content of such 
        program, as appropriate.

[SEC. 3205. ELIGIBLE ENTITIES.

  [(a) Eligible Entities.--
          [(1) Required participation.--The Secretary may make 
        a grant under section 3204 to any eligible entity, if 
        at least one local educational agency is participating 
        in the proposed project.
          [(2) Eligible entity.--For the purpose of this part, 
        the term ``eligible entity'' may include--
                  [(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 and secondary schools 
                that are eligible to participate in the program 
                under part A of title I; or
                  [(B) a partnership that will provide 
                telecommunications services and which includes 
                3 or more of the following entities, at least 1 
                of which shall be an agency described in clause 
                (i) or (ii):
                          [(i) a local educational agency that 
                        serves a significant number of 
                        elementary and secondary schools that 
                        are eligible for assistance under part 
                        A of title I, or elementary and 
                        secondary schools operated or funded 
                        for Indian children by the Department 
                        of the Interior eligible under section 
                        1121(b)(2);
                          [(ii) a State educational agency;
                          [(iii) adult and family education 
                        programs;
                          [(iv) an institution of higher 
                        education or a State higher education 
                        agency;
                          [(v) a teacher training center or 
                        academy that--
                                  [(I) provides teacher pre-
                                service and in-service 
                                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; or
                          [(vii) a public or private elementary 
                        or secondary school.
  [(b) Special Rule.--An eligible entity receiving assistance 
under this part shall be organized on a statewide or multistate 
basis.

[SEC. 3206. APPLICATIONS.

  [(a) Applications Required.--Each eligible entity which 
desires to receive a grant under section 3204 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) Star School Award Applications.--Each application 
submitted pursuant to subsection (a) shall--
          [(1) describe how the proposed project will assist in 
        achieving the National Education Goals, how such 
        project will assist all students to have an opportunity 
        to learn to challenging State standards, how such 
        project will assist State and local educational reform 
        efforts, and how such project will contribute to 
        creating a high quality system of lifelong learning;
          [(2) describe 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 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, describe the types of 
        programming which will be developed to enhance 
        instruction and training and provide assurances 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) describe 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) describe 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) describe 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 part;
          [(7) describe how existing telecommunications 
        equipment, facilities, and services, where available, 
        will be used;
          [(8) provide assurances 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) provide assurances that a significant portion of 
        any facilities and equipment, technical assistance, and 
        programming for which assistance is sought for 
        elementary 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) provide assurances that the applicant will use 
        the funds provided under this part to supplement and 
        not supplant funds otherwise available for the purposes 
        of this part;
          [(11) if any member of the consortia receives 
        assistance under subpart 3 of part A, describe how 
        funds received under this part will be coordinated with 
        funds received for educational technology in the 
        classroom under such section;
          [(12) describe 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 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 voluntary national 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) describe how the proposed project as a whole 
        will be financed and how arrangements for future 
        financing will be developed before the project expires;
          [(14) provide an assurance that a significant portion 
        of any facilities, equipment, technical assistance, and 
        programming for which assistance is sought for 
        elementary 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) provide an assurance that the applicant will 
        provide such information and cooperate in any 
        evaluation that the Secretary may conduct under this 
        part; and
          [(16) include such additional assurances as the 
        Secretary may reasonably require.
  [(c) Priorities.--The Secretary, in approving applications 
for grants authorized under section 3204, shall give priority 
to applications describing projects that--
          [(1) propose high-quality plans to assist in 
        achieving one or more of the National Education Goals, 
        will provide instruction consistent with State content 
        standards, or will otherwise provide significant and 
        specific assistance to States and local educational 
        agencies undertaking systemic education reform;
          [(2) will provide services to programs serving 
        adults, especially parents, with low levels of 
        literacy;
          [(3) will serve schools with significant numbers of 
        children counted for the purposes of part A of title I;
          [(4) ensure that the eligible entity will--
                  [(A) 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;
                  [(B) 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;
                  [(C) provide a comprehensive range of courses 
                for educators to teach instructional strategies 
                for students with different skill levels;
                  [(D) provide training to participating 
                educators in ways to integrate 
                telecommunications courses into existing school 
                curriculum;
                  [(E) provide instruction for students, 
                teachers, and parents;
                  [(F) serve a multistate area; and
                  [(G) give priority to the provision of 
                equipment and linkages to isolated areas; and
          [(5) 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.
  [(d) Geographic Distribution.--In approving applications for 
grants authorized under section 3204, the Secretary shall, to 
the extent feasible, ensure an equitable geographic 
distribution of services provided under this part.

[SEC. 3207. LEADERSHIP AND EVALUATION ACTIVITIES.

  [(a) Reservation.--From the amount appropriated pursuant to 
the authority of section 3204(c)(1) in each fiscal year, the 
Secretary may reserve not more than 5 percent of such amount 
for national leadership, evaluation, and peer review 
activities.
  [(b) Method of Funding.--The Secretary may fund the 
activities described in subsection (a) directly or through 
grants, contracts, and cooperative agreements.
  [(c) Uses of Funds.--
          [(1) Leadership.--Funds reserved for leadership 
        activities under subsection (a) may be used for--
                  [(A) disseminating information, including 
                lists and descriptions of services available 
                from grant recipients under this part; and
                  [(B) other activities designed to enhance the 
                quality of distance learning activities 
                nationwide.
          [(2) Evaluation.--Funds reserved for evaluation 
        activities under subsection (a) may be used to conduct 
        independent evaluations of the activities assisted 
        under this part and of distance learning in general, 
        including--
                  [(A) analyses of distance learning efforts, 
                including such efforts that are assisted under 
                this part and such efforts that are not 
                assisted under this part; and
                  [(B) comparisons of the effects, including 
                student outcomes, of different technologies in 
                distance learning efforts.
          [(3) Peer review.--Funds reserved for peer review 
        activities under subsection (a) may be used for peer 
        review of--
                  [(A) applications for grants under this part; 
                and
                  [(B) activities assisted under this part.

[SEC. 3208. DEFINITIONS.

  [As used in this part--
          [(1) the term ``educational institution'' means an 
        institution of higher education, a local educational 
        agency, or a State educational agency;
          [(2) 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; and
          [(3) the term ``public broadcasting entity'' has the 
        same meaning given such term in section 397 of the 
        Communications Act of 1934.

[SEC. 3209. ADMINISTRATIVE PROVISIONS.

  [(a) Continuing Eligibility.--
          [(1) In general.--In order to be eligible to receive 
        a grant under section 3204 for a second 3-year grant 
        period an eligible entity shall demonstrate in the 
        application submitted pursuant to section 3206 that 
        such partnership shall--
                  [(A) continue to provide services in the 
                subject areas and geographic areas assisted 
                with funds received under this part for the 
                previous 5-year grant period; and
                  [(B) use all grant funds received under this 
                part for the second 3-year grant 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.
          [(2) Special rule.--Grant funds received pursuant to 
        paragraph (1) shall be used to supplement and not 
        supplant services provided by the grant recipient under 
        this part in the previous fiscal year.
  [(b) Federal Activities.--The Secretary may assist grant 
recipients under section 3204 in acquiring satellite time, 
where appropriate, as economically as possible.

[SEC. 3210. OTHER ASSISTANCE.

  [(a) Special Statewide Network.--
          [(1) In general.--The Secretary, through the Office 
        of Educational Technology, may provide assistance to a 
        statewide telecommunications network under this 
        subsection 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) State 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 may provide 
        assistance, on a competitive basis, to a local 
        educational agency or consortium thereof 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 and secondary 
                schools, colleges, and universities;
                  [(C) provide parent participation and family 
                programs;
                  [(D) include a staff development program; and
                  [(E) have a significant contribution and 
                participation from business and industry.
          [(3) Special rule.--Each high technology 
        demonstration program assisted under paragraph (1) 
        shall be of sufficient size and scope to have an effect 
        on meeting the National Education Goals.
          [(4) 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 
        enable such partnerships to develop and operate one or 
        more programs which provide on-line 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 section 
        shall be designed to advance adult literacy, secondary 
        school completion and the acquisition of specified 
        competency by the end of the 12th grade, as envisioned 
        by the Goals 2000: Educate America Act.
          [(2) Application.--Each eligible entity desiring a 
        grant under this section shall submit an application to 
        the Secretary. Each such application shall--
                  [(A) demonstrate 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) assure 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) incorporate, to the extent feasible, 
                materials developed in the Federal departments 
                and agencies and under appropriate federally 
                funded projects and programs;
                  [(D) assure that the applicant has the 
                technological and substantive experience to 
                carry out the program; and
                  [(E) contain such additional assurances as 
                the Secretary may reasonably require.

                   [PART C--READY-TO-LEARN TELEVISION

[SEC. 3301. READY-TO-LEARN.

  [(a) In General.--The Secretary is authorized to award grants 
to or enter into contracts or cooperative agreements with 
eligible entities described in section 3302(b) to develop, 
produce, and distribute educational and instructional video 
programming for preschool and elementary school children and 
their parents in order to facilitate the achievement of the 
National Education Goals.
  [(b) Availability.--In making such grants, contracts, or 
cooperative agreements, the Secretary shall ensure that 
recipients make programming widely available with support 
materials as appropriate to young children, their parents, 
child care workers, and Head Start providers to increase the 
effective use of such programming.

[SEC. 3302. EDUCATIONAL PROGRAMMING.

  [(a) Awards.--The Secretary shall award grants, contracts, or 
cooperative agreements to eligible entities to--
          [(1) facilitate the development directly or through 
        contracts with producers of children and family 
        educational television programming, educational 
        programming for preschool and elementary school 
        children, and accompanying support materials and 
        services that promote the effective use of such 
        programming; and
          [(2) enable such entities to contract with entities 
        (such as public telecommunications entities and those 
        funded under the Star Schools Act) so that programs 
        developed under this section are disseminated and 
        distributed to the widest possible audience appropriate 
        to be served by the programming by the most appropriate 
        distribution technologies.
  [(b) Eligible Entities.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a), an 
entity shall be--
          [(1) a nonprofit entity (including a public 
        telecommunications entity) able to demonstrate a 
        capacity for the development and distribution of 
        educational and instructional television programming of 
        high quality for preschool and elementary school 
        children; and
          [(2) able to demonstrate a capacity to contract with 
        the producers of children's television programming for 
        the purpose of developing educational television 
        programming of high quality for preschool and 
        elementary school children.
  [(c) Cultural Experiences.--Programming developed under this 
section shall reflect the recognition of diverse cultural 
experiences and the needs and experiences of both boys and 
girls in engaging and preparing young children for schooling.

[SEC. 3303. DUTIES OF SECRETARY.

  [The Secretary is authorized--
          [(1) to establish and administer a Special Projects 
        of National Significance program to award grants, 
        contracts, or cooperative agreements to public and 
        nonprofit private entities, or local public television 
        stations or such public television stations that are 
        part of a consortium with one or more State educational 
        agencies, local educational agencies, local schools, 
        institutions of higher education, or community-based 
        organizations of demonstrated effectiveness, for the 
        purpose of--
                  [(A) addressing the learning needs of young 
                children in limited English proficient 
                households, and developing appropriate 
                educational and instructional television 
                programming to foster the school readiness of 
                such children;
                  [(B) developing programming and support 
                materials to increase family literacy skills 
                among parents to assist parents in teaching 
                their children and utilizing educational 
                television programming to promote school 
                readiness; and
                  [(C) identifying, supporting, and enhancing 
                the effective use and outreach of innovative 
                programs that promote school readiness;
          [(2) to establish within the Department a 
        clearinghouse to compile and provide information, 
        referrals and model program materials and programming 
        obtained or developed under this part to parents, child 
        care providers, and other appropriate individuals or 
        entities to assist such individuals and entities in 
        accessing programs and projects under this part; and
          [(3) to develop and disseminate training materials, 
        including--
                  [(A) interactive programs and programs 
                adaptable to distance learning technologies 
                that are designed to enhance knowledge of 
                children's social and cognitive skill 
                development and positive adult-child 
                interactions; and
                  [(B) support materials to promote the 
                effective use of materials developed under 
                paragraph (2);
        among parents, Head Start providers, in-home and center 
        based day care providers, early childhood development 
        personnel, and elementary school teachers, public 
        libraries, and after school program personnel caring 
        for preschool and elementary school children;
          [(4) coordinate activities with the Secretary of 
        Health and Human Services in order to--
                  [(A) 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) provide information to recipients of 
                funds under Federal programs that have major 
                training components for early childhood 
                development, including Head Start, Even Start, 
                and State training activities funded under the 
                Child Care Development Block Grant Act of 1990 
                regarding the availability and utilization of 
                materials developed under paragraph (3) to 
                enhance parent and child care provider skills 
                in early childhood development and education.

[SEC. 3304. APPLICATIONS.

  [Each eligible entity desiring a grant, contract, or 
cooperative agreement under section 3301 or 3303 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. 3305. REPORTS AND EVALUATION.

  [(a) Annual Report to Secretary.--An entity receiving funds 
under section 3301 shall prepare and submit to the Secretary an 
annual report which contains such information as the Secretary 
may require. At a minimum, the report shall describe the 
program activities undertaken with funds received under this 
section, including--
          [(1) the programming that has been developed directly 
        or indirectly by the entity, and the target population 
        of the programs developed;
          [(2) the support materials that have been developed 
        to accompany the programming, and the method by which 
        such materials are distributed to consumers and users 
        of the programming;
          [(3) 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; and
          [(4) the initiatives undertaken by the entity to 
        develop public-private partnerships to secure non-
        Federal support for the development and distribution 
        and broadcast of educational and instructional 
        programming.
  [(b) Report to Congress.--The Secretary shall prepare and 
submit to the relevant committees of Congress a biannual report 
which includes--
          [(1) a summary of the information made available 
        under section 3302(a); and
          [(2) a description of the training materials made 
        available under section 3303(3), 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 section.

[SEC. 3306. ADMINISTRATIVE COSTS.

  [With respect to the implementation of section 3302, entities 
receiving a grant, contract, or cooperative agreement from the 
Secretary may use not more than 5 percent of the amounts 
received under such section for the normal and customary 
expenses of administering the grant, contract, or cooperative 
agreement.

[SEC. 3307. DEFINITION.

  [For the purposes of this part, the term ``distance 
learning'' means the transmission of educational or 
instructional programming to geographically dispersed 
individuals and groups via telecommunications.

[SEC. 3308. AUTHORIZATION OF APPROPRIATIONS.

  [(a) In General.--There are authorized to be appropriated to 
carry out this part, $30,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years. Not less than 60 percent of the amounts appropriated 
under this subsection for each fiscal year shall be used to 
carry out section 3302.
  [(b) Special Projects.--Of the amount appropriated under 
subsection (b) for each fiscal year, at least 10 percent of 
such amount shall be used for each such fiscal year for 
activities under section 3303(1)(C).

   [PART D--TELECOMMUNICATIONS DEMONSTRATION PROJECT FOR MATHEMATICS

[SEC. 3401. PROJECT AUTHORIZED.

  [The Secretary is authorized to make grants to a nonprofit 
telecommunications entity, or partnership of such entities, for 
the purpose of carrying out a national telecommunications-based 
demonstration project to improve the teaching of mathematics. 
The demonstration project authorized by this part shall be 
designed to assist elementary and secondary school teachers in 
preparing all students for achieving State content standards.

[SEC. 3402. APPLICATION REQUIRED.

  [(a) In General.--Each nonprofit telecommunications entity, 
or partnership of such entities, desiring a grant under this 
part shall submit an application to the Secretary. Each such 
application shall--
          [(1) demonstrate that the applicant will use the 
        existing publicly funded telecommunications 
        infrastructure to deliver video, voice and data in an 
        integrated service to train teachers in the use of new 
        standards-based curricula materials and learning 
        technologies;
          [(2) assure that the project for which assistance is 
        sought will be conducted in cooperation with 
        appropriate State educational agencies, local 
        educational agencies, State or local nonprofit public 
        telecommunications entities, and a national mathematics 
        education professional association that has developed 
        content standards;
          [(3) assure that a significant portion of the 
        benefits available for elementary and secondary schools 
        from the project for which assistance is sought will be 
        available to schools of local educational agencies 
        which have a high percentage of children counted for 
        the purpose of part A of title I; and
          [(4) contain such additional assurances as the 
        Secretary may reasonably require.
  [(b) Approval of Applications; Number of Demonstration 
Sites.--In approving applications under this section, the 
Secretary shall assure that the demonstration project 
authorized by this part is conducted at elementary and 
secondary school sites in at least 15 States.

[SEC. 3403. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
part, $5,000,000 for the fiscal year 1995, and such sums as may 
be necessary for each of the four succeeding fiscal years.

     [PART E--ELEMENTARY MATHEMATICS AND SCIENCE EQUIPMENT PROGRAM

[SEC. 3501. SHORT TITLE.

  [This part may be cited as the ``Elementary Mathematics and 
Science Equipment Act''.

[SEC. 3502. STATEMENT OF PURPOSE.

  [It is the purpose of this part to raise the quality of 
instruction in mathematics and science in the Nation's 
elementary schools by providing equipment and materials 
necessary for hands-on instruction through assistance to State 
and local educational agencies.

[SEC. 3503. PROGRAM AUTHORIZED.

  [The Secretary is authorized to make allotments to State 
educational agencies under section 3504 to enable such agencies 
to award grants to local educational agencies for the purpose 
of providing equipment and materials to elementary schools to 
improve mathematics and science education in such schools.

[SEC. 3504. ALLOTMENTS OF FUNDS.

  [(a) In General.--From the amount appropriated under section 
3509 for any fiscal year, the Secretary shall reserve--
          [(1) not more than one-half of 1 percent for 
        allotment among Guam, American Samoa, the Virgin 
        Islands, and the Northern Mariana Islands according to 
        their respective needs for assistance under this part; 
        and
          [(2) one-half of 1 percent for programs for Indian 
        students served by schools funded by the Secretary of 
        the Interior which are consistent with the purposes of 
        this part.
  [(b) Allotment.--
          [(1) In general.--The remainder of the amount so 
        appropriated (after meeting requirements in subsection 
        (a)) shall be allotted among State educational agencies 
        so that--
                  [(A) one-half of such remainder shall be 
                distributed by allotting to each State 
                educational agency an amount which bears the 
                same ratio to such one-half of such remainder 
                as the number of children aged 5 to 17, 
                inclusive, in the State bears to the number of 
                such children in all States; and
                  [(B) one-half of such remainder shall be 
                distributed according to each State's share of 
                allocations under part A of title I.
          [(2) Minimum.--Except as provided in paragraph (3), 
        no State educational agency shall receive an allotment 
        under this subsection for any fiscal year in an amount 
        that is--
                  [(A) less than one-half of 1 percent of the 
                amount made available under this subsection for 
                such fiscal year; or
                  [(B) less than the amount allotted to such 
                State for fiscal year 1988 under title II of 
                the Education for Economic Security Act.
          [(3) Ratable reductions.--(A) If the sums made 
        available under this part for any fiscal year are 
        insufficient to pay the full amounts that all State 
        educational agencies are eligible to receive under 
        paragraph (2)(B) for such year, the Secretary shall 
        ratably reduce the allotment to such agencies for such 
        year.
          [(B) If additional funds become available for making 
        payments under paragraph (2)(B) for such fiscal year, 
        allotments that were reduced under subparagraph (A) 
        shall be increased on the same basis as such allotments 
        were reduced.
  [(c) Reallotment of Unused Funds.--The amount of any State 
educational agency's allotment under subsection (b) for any 
fiscal year to carry out this part which the Secretary 
determines will not be required for that fiscal year to carry 
out this part shall be available for reallotment from time to 
time, on such dates during that year as the Secretary may 
determine, to other State educational agencies in proportion to 
the original allotments to those State educational agencies 
under subsection (b) for that year but with such proportionate 
amount for any of those other State educational agencies being 
reduced to the extent it exceeds the sum the Secretary 
estimates that the State educational agency needs and will be 
able to use for that year, and the total of those reductions 
shall be similarly reallotted among the State educational 
agencies whose proportionate amounts were not so reduced. Any 
amounts reallotted to a State educational agency under this 
subsection during a year shall be deemed a part of the State 
educational agency's allotment under subsection (b) for that 
year.
  [(d) Definition.--For the purposes of this part the term 
``State'' means each of the 50 States, the District of 
Columbia, and the Commonwealth of Puerto Rico.
  [(e) Data.--The number of children aged 5 to 17, inclusive, 
in the State and in all States shall be determined by the 
Secretary on the basis of the most recent satisfactory data 
available to the Secretary.

[SEC. 3505. STATE APPLICATION.

  [(a) Application.--Each State educational agency desiring to 
receive an allotment under this part shall file an application 
with the Secretary which covers a period of 5 fiscal years. 
Such application shall be filed at such time, in such manner, 
and containing or accompanied by such information as the 
Secretary may reasonably require.
  [(b) Contents of Application.--Each application described in 
subsection (a) shall--
          [(1) provide assurances that--
                  [(A) the State educational agency shall use 
                the allotment provided under this part to award 
                grants to local educational agencies within the 
                State to enable such local educational agencies 
                to provide assistance to schools served by such 
                agency to carry out the purpose of this part;
                  [(B) the State educational agency will 
                provide such fiscal control and funds 
                accounting as the Secretary may require;
                  [(C) every public elementary school in the 
                State is eligible to receive assistance under 
                this part once over the 5-year duration of the 
                program assisted under this part;
                  [(D) funds provided under this part will 
                supplement, not supplant, State and local funds 
                made available for activities authorized under 
                this part;
                  [(E) during the 5-year period described in 
                the application, the State educational agency 
                will evaluate its standards and programs for 
                teacher preparation and inservice professional 
                development for elementary mathematics and 
                science;
                  [(F) the State educational agency will take 
                into account the needs for greater access to 
                and participation in mathematics and science by 
                students and teachers from historically 
                underrepresented groups, including females, 
                minorities, individuals with limited English 
                proficiency, the economically disadvantaged, 
                and individuals with disabilities; and
                  [(G) that the needs of teachers and students 
                in areas with high concentrations of low-income 
                students and sparsely populated areas will be 
                given priority in awarding assistance under 
                this part;
          [(2) provide, if appropriate, a description of how 
        funds paid under this part will be coordinated with 
        State and local funds and other Federal resources, 
        particularly with respect to programs for the 
        professional development and inservice training of 
        elementary school teachers in science and mathematics; 
        and
          [(3) describe procedures--
                  [(A) for submitting applications for programs 
                described in section 3506 for distribution of 
                assistance under this part within the State; 
                and
                  [(B) for approval of applications by the 
                State educational agency, including appropriate 
                procedures to assure that such agency will not 
                disapprove an application without notice and 
                opportunity for a hearing.
  [(c) State Administration.--Not more than 5 percent of the 
funds allotted to each State educational agency under this part 
shall be used for the administrative costs of such agency 
associated with carrying out the program assisted under this 
part.

[SEC. 3506. LOCAL APPLICATION.

  [(a) Application.--A local educational agency that desires to 
receive a grant under this part shall submit an application to 
the State educational agency. Each such application shall 
contain assurances that each school served by the local 
educational agency shall be eligible for assistance under this 
part only once.
  [(b) Contents of Application.--Each application described in 
subsection (a) shall--
          [(1) describe how the local educational agency plans 
        to set priorities on the use and distribution among 
        schools of grant funds received under this part to meet 
        the purpose of this part;
          [(2) include assurances that the local educational 
        agency has made every effort to match on a dollar-for-
        dollar basis from private or public sources the funds 
        received under this part, except that no such 
        application shall be penalized or denied assistance 
        under this part based on failure to provide such 
        matching funds;
          [(3) describe, if applicable, how funds under this 
        part will be coordinated with State, local, and other 
        Federal resources, especially with respect to programs 
        for the professional development and inservice training 
        of elementary school teachers in science and 
        mathematics; and
          [(4) describe the process which will be used to 
        determine different levels of assistance to be awarded 
        to schools with different needs.
  [(c) Priority.--In awarding grants under this part, the State 
educational agency shall give priority to applications that--
          [(1) assign highest priority to providing assistance 
        to schools which--
                  [(A) are most seriously underequipped; or
                  [(B) serve large numbers or percentages of 
                economically disadvantaged students;
          [(2) are attentive to the needs of underrepresented 
        groups in science and mathematics;
          [(3) demonstrate how science and mathematics 
        equipment will be part of a comprehensive plan of 
        curriculum planning or implementation and teacher 
        training supporting hands-on laboratory activities; and
          [(4) assign priority to providing equipment and 
        materials for students in grades 1 through 6.

[SEC. 3507. PROGRAM REQUIREMENTS.

  [(a) Coordination.--Each State educational agency receiving 
an allotment under this part shall--
          [(1) disseminate information to school districts and 
        schools, including private nonprofit elementary 
        schools, regarding the program assisted under this 
        part;
          [(2) evaluate applications of local educational 
        agencies;
          [(3) award grants to local educational agencies based 
        on the priorities described in section 3506(c); and
          [(4) evaluate local educational agencies' end-of-year 
        summaries and submit such evaluation to the Secretary.
  [(b) Limitations on Use of Funds.--
          [(1) In general.--Except as provided in paragraph 
        (2), grant funds and matching funds under this part 
        only shall be used to purchase science equipment, 
        science materials, or mathematical manipulative 
        materials and shall not be used for computers, computer 
        peripherals, software, textbooks, or staff development 
        costs.
          [(2) Capital improvements.--Grant funds under this 
        part may not be used for capital improvements. Not more 
        than 50 percent of any matching funds provided by the 
        local educational agency may be used for capital 
        improvements of classroom science facilities to support 
        the hands-on instruction that this part is intended to 
        support, such as the installation of electrical 
        outlets, plumbing, lab tables or counters, or 
        ventilation mechanisms.

[SEC. 3508. FEDERAL ADMINISTRATION.

  [(a) Technical Assistance and Evaluation Procedures.--The 
Secretary shall provide technical assistance and, in 
consultation with State and local representatives of the 
program assisted under this part, shall develop procedures for 
State and local evaluations of the programs assisted under this 
part.
  [(b) Report.--The Secretary shall report to the Congress each 
year on the program assisted under this part in accordance with 
section 10701.

[SEC. 3509. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated $30,000,000 for 
fiscal year 1995, and such sums as may be necessary for each of 
the four succeeding fiscal years, to carry out this part.

   [PART F--LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS]

   TITLE III--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT 
              CHILDREN; INDIAN AND ALASKA NATIVE EDUCATION

 PART A--EDUCATION OF LIMITED ENGLISH PROFICIENT AND IMMIGRANT CHILDREN

    Subpart 1--English Language and Academic Instructional Programs

SEC. 3101. SHORT TITLE.

  This subpart may be cited as the ``English Language 
Proficiency and Academic Achievement Act''.

SEC. 3102. FINDINGS AND PURPOSES.

  (a) Findings.--The Congress finds as follows:
          (1) English is the common language of the United 
        States and every citizen and other person residing in 
        the United States should have a command of the English 
        language in order to develop to their full potential.
          (2) Limited English proficient children, including 
        recent immigrant children, must overcome a number of 
        challenges in receiving an education in order to 
        participate fully in American society, including--
                  (A) segregated educational programs;
                  (B) disproportionate and improper placement 
                in special education and other special programs 
                due to the use of inappropriate evaluation 
                procedures;
                  (C) the limited English proficiency of their 
                parents, which hinders the parents' ability to 
                fully participate in the education of their 
                children; and
                  (D) a need for additional teachers and other 
                staff who are professionally trained and 
                qualified to serve such children.
          (3) States and local educational agencies need 
        assistance in developing the capacity to provide 
        programs of instruction that offer and provide an equal 
        educational opportunity to children who need special 
        assistance because English is not their dominant 
        language.
          (4) Since 1979, the number of limited English 
        proficient children attending school in the United 
        States has more than doubled to greater than 4,000,000, 
        and demographic trends indicate the population of 
        limited English proficient children will continue to 
        increase.
          (5) Native Americans, including native residents of 
        the outlying areas, and Native American languages (as 
        such terms are defined in section 103 of the Native 
        American Languages Act) have a unique status under 
        Federal law that requires special policies within the 
        broad purposes of this part to serve the educational 
        needs of language minority students in the United 
        States.
          (6) Research, evaluation, and data collection 
        capabilities in the field of instruction for limited 
        English proficient children need to be strengthened so 
        that educators and other staff teaching limited English 
        proficient children in the classroom can better 
        identify and promote programs, program implementation 
        strategies, and instructional practices that result in 
        the effective education of limited English proficient 
        children.
          (7) The Federal Government has a special and 
        continuing obligation to ensure that States and local 
        educational agencies provide children of limited 
        English proficiency the same educational opportunities 
        afforded other children.
  (b) Purposes.--The purposes of this part are--
          (1) to help ensure that children who are limited 
        English proficient, including recent immigrant 
        children, attain English proficiency, develop high 
        levels of academic attainment in English, and meet the 
        same challenging State academic content standards and 
        challenging State student academic achievement 
        standards expected of all children;
          (2) to develop high-quality programs designed to 
        assist local educational agencies in teaching limited 
        English proficient children;
          (3) to assist local educational agencies to develop 
        and enhance their capacity to provide high-quality 
        instructional programs designed to prepare limited 
        English proficient students, including recent immigrant 
        students, to enter all-English instructional settings 
        within 3 years; and
          (4) to provide State educational agencies and local 
        educational agencies with the flexibility to implement 
        instructional programs, tied to scientifically based 
        reading research and sound research and theory on 
        teaching limited English proficient children, that the 
        agencies believe to be the most effective for teaching 
        English.

SEC. 3103. PARENTAL NOTIFICATION AND CONSENT FOR ENGLISH LANGUAGE 
                    INSTRUCTION.

  (a) Notification.--If a local educational agency uses funds 
under this subpart to provide English language instruction to 
limited English proficient children, the agency shall inform a 
parent or the parents of a child participating in an English 
language instruction program for limited English proficient 
children assisted under this subpart of--
          (1) the reasons for the identification of the child 
        as being in need of English language instruction;
          (2) the child's level of English proficiency, how 
        such level was assessed, and the status of the child's 
        academic achievement;
          (3) how the English language instruction program will 
        specifically help the child acquire English and meet 
        age-appropriate standards for grade promotion and 
        graduation;
          (4) what the specific exit requirements are for the 
        program;
          (5) the expected rate of transition from the program 
        into a classroom that is not tailored for limited 
        English proficient children; and
          (6) the expected rate of graduation from high school 
        for the program if funds under this subpart are used 
        for children in secondary schools.
  (b) Consent.--
          (1) Agency requirements.--
                  (A) Informed consent.--For a child who has 
                been identified as limited English proficient 
                prior to the beginning of the school year, each 
                local educational agency that receives funds 
                under this subpart shall make a reasonable and 
                substantial effort to obtain informed parental 
                consent prior to the placement of a child in an 
                English language instruction program for 
                limited English proficient children funded 
                under this subpart, if the program does not 
                include classes which exclusively or almost 
                exclusively use the English language in 
                instruction.
                  (B) Written consent not obtained.--
                          (i) In general.--If written consent 
                        is not obtained, the local educational 
                        agency shall maintain a written record 
                        that includes the date and the manner 
                        in which such informed consent was 
                        sought, including the specific efforts 
                        made to obtain such consent.
                          (ii) Proof of effort.--Notice, in an 
                        understandable form, of specific 
                        efforts made to obtain written consent 
                        and a copy of the written record 
                        described in clause (i) shall be mailed 
                        or delivered in writing to a parent or 
                        the parents of a child prior to placing 
                        the child in a program described in 
                        subparagraph (A), and shall include a 
                        final request for parental consent for 
                        such services. After such notice has 
                        been mailed or delivered in writing, 
                        the local educational agency shall 
                        provide appropriate educational 
                        services.
                          (iii) Special rule applicable during 
                        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 make a 
                        reasonable and substantial effort to 
                        obtain parental consent under this 
                        clause. For such children, the agency 
                        shall document, in writing, its 
                        specific efforts to obtain such consent 
                        prior to placing the child in a program 
                        described in subparagraph (A). After 
                        such documentation has been made, the 
                        local educational agency shall provide 
                        appropriate educational services to 
                        such child. The proof of documentation 
                        shall be mailed or delivered in writing 
                        to a parent or the parents of the child 
                        in a timely manner and shall include 
                        information on how to have their child 
                        immediately removed from the program 
                        upon their request. Nothing in this 
                        clause shall be construed as exempting 
                        a local educational agency from 
                        complying with the notification 
                        requirements of subsection (a) and the 
                        consent requirements of this paragraph.
          (2) Parental rights.--A parent or the parents of a 
        child participating in an English language instruction 
        program for limited English proficient children 
        assisted under this subpart--
                  (A) shall select among methods of 
                instruction, if more than one method is offered 
                in the program; and
                  (B) shall have the right to have their child 
                immediately removed from the program upon their 
                request.
  (c) Receipt of Information.--A parent or the parents of a 
child identified for participation in an English language 
instruction program for limited English proficient children 
assisted under this subpart shall receive, in a manner and form 
understandable to the parent or parents, the information 
required by this subsection. At a minimum, the parent or 
parents shall receive--
          (1) timely information about English language 
        instruction programs for limited English proficient 
        children assisted under this part;
          (2) if a parent or the parents of a participating 
        child so desire, notice of opportunities for regular 
        meetings for the purpose of formulating and responding 
        to recommendations from the parent or parents; and
          (3) procedural information for removing a child from 
        a program for limited English proficient children.
  (d) Basis for Admission or Exclusion.--Students shall not be 
admitted to, or excluded from, any federally assisted education 
program on the basis of a surname or language-minority status.

SEC. 3104. TESTING OF LIMITED ENGLISH PROFICIENT CHILDREN.

  (a) In General.--Assessments of limited English proficient 
children participating in programs funded under this subpart, 
to the extent practicable, shall be in the language and form 
most likely to yield accurate and reliable information on what 
such students know and can do in content areas.
  (b) Special Rule.--Notwithstanding subsection (a), in the 
case of an assessment of reading or language arts of any 
student who has attended school in the United States (excluding 
Puerto Rico) for 3 or more consecutive school years, the 
assessment shall be in the form of a test written in English, 
except that, if the entity administering the assessment 
determines, on a case-by-case individual basis, that 
assessments in another language or form would likely yield more 
accurate and reliable information on what such student knows 
and can do, the entity may assess such student in such language 
or form for 1 additional year.

SEC. 3105. FORMULA GRANTS TO STATES.

  (a) In General.--In the case of each State that in accordance 
with section 3107 submits to the Secretary an application for a 
fiscal year, the Secretary shall make a grant for the year to 
the State for the purposes specified in subsection (b). The 
grant shall consist of the allotment determined for the State 
under subsection (c).
  (b) Purposes of Grants.--
          (1) Required expenditures.--The Secretary may make a 
        grant under subsection (a) only if the State involved 
        agrees that the State will expend at least 95 percent 
        of its allotment under subsection (c) for the purpose 
        of making subgrants to eligible entities to provide 
        assistance to limited English proficient children in 
        accordance with sections 3108 and 3109.
          (2) Authorized expenditures.--Subject to paragraph 
        (3), a State that receives a grant under subsection (a) 
        may expend not more than 5 percent of its allotment 
        under subsection (c) for one or more of the following 
        purposes:
                  (A) Carrying out--
                          (i) professional development 
                        activities, and other activities, that 
                        assist personnel in meeting State and 
                        local certification requirements for 
                        teaching limited English proficient 
                        children; and
                          (ii) other activities that provide 
                        such personnel with the skills and 
                        knowledge necessary to educate limited 
                        English proficient children.
                  (B) Providing scholarships and fellowships to 
                students who agree to teach limited English 
                proficient children once they graduate.
                  (C) Planning, administration, and interagency 
                coordination related to the subgrants referred 
                to in paragraph (1).
                  (D) Providing technical assistance and other 
                forms of assistance to local educational 
                agencies that--
                          (i) educate limited English 
                        proficient children; and
                          (ii) are not receiving a subgrant 
                        from a State under this subpart.
                  (E) Providing bonuses to subgrantees whose 
                performance has been exceptional in terms of 
                the speed with which children enrolled in the 
                subgrantee's programs and activities attain 
                English language proficiency and meet 
                challenging State academic content standards 
                and challenging State student academic 
                achievement standards.
          (3) Limitation on administrative costs.--In carrying 
        out paragraph (2), a State that receives a grant under 
        subsection (a) may expend not more than 2 percent of 
        its allotment under subsection (c) for the purposes 
        described in paragraph (2)(C).
  (c) Determination of Allotment Amounts.--
          (1) Reservations.--From the amount appropriated under 
        section 3110 to carry out this subpart for each fiscal 
        year, the Secretary shall reserve--
                  (A) .5 percent of such amount for payments to 
                entities that are considered to be local 
                educational agencies under section 3106(a) for 
                activities approved by the Secretary;
                  (B) .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 part; and
                  (C) \1/2\ of 1 percent of such amount for 
                evaluation of the programs under this part and 
                for dissemination of best practices.
          (2) Continuation awards.--Before making awards to 
        States under paragraph (3) for any fiscal year, the 
        Secretary shall make continuation awards to recipients 
        of grants under subpart 1 of part A of the Bilingual 
        Education Act, as that Act was in effect on the day 
        before the effective date of the No Child Left Behind 
        Act of 2001, in order to allow such recipients to 
        continue to receive funds in accordance with the terms 
        of their grant until the date on which the grant period 
        otherwise would have terminated if the No Child Left 
        Behind Act of 2001 had not been enacted.
          (3) State allotments.--
                  (A) In general.--From the amount appropriated 
                under section 3110 to carry out this subpart 
                for each fiscal year that remains after 
                carrying out paragraphs (1) and (2), the 
                Secretary shall allot to each of the 50 States, 
                the District of Columbia, and the Commonwealth 
                of Puerto Rico an amount which bears the same 
                ratio to such amount as the total number of 
                children and youth who are limited English 
                proficient and who reside in such State bears 
                to the total number of such children and youth 
                residing in all such States that, in accordance 
                with section 3107, submit to the Secretary an 
                application for the year.
                  (B) Reallotment.--
                          (i) In general.--If any State 
                        described in subparagraph (A) does not 
                        submit to the Secretary an application 
                        for a fiscal year, or submits an 
                        application (or any modification to an 
                        application) 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 that satisfy 
                                the requirements applicable to 
                                eligible entities under section 
                                3108 and any additional 
                                requirements that may be 
                                imposed by the Secretary; and
                                  (II) shall reallot any 
                                portion of such allotment 
                                remaining after the application 
                                of subclause (I) to the 
                                remaining States in accordance 
                                with subparagraph (A).
                          (ii) Requirements on specially 
                        qualified agencies.--If a specially 
                        qualified agency receives funds under 
                        this subparagraph, the requirements of 
                        subsection (b) shall not apply to the 
                        agency. In lieu of those requirements, 
                        the specially qualified agency shall 
                        expend the funds for the authorized 
                        activities described in section 3108(b) 
                        and otherwise shall satisfy the 
                        requirements of section 3108.
                  (C) Special rule for puerto rico.--The total 
                amount allotted to Puerto Rico for any fiscal 
                year under subparagraph (A) shall not exceed .5 
                percent of the total amount allotted to all 
                States for that fiscal year.
          (4) Use of data for determinations.--
                  (A) In general.--Except as provided in 
                subparagraph (B), for the purpose of 
                determining the number of children and youth 
                who are limited English proficient and reside 
                in a State and in all States for each fiscal 
                year, the Secretary shall use the most recent 
                satisfactory data available from the Bureau of 
                the Census and the American Community Survey 
                available from the Department of Commerce.
                  (B) Exception.--If the data described in 
                subparagraph (A) are more than 4 years old or 
                unavailable, the Secretary shall use the most 
                recent satisfactory data provided by the 
                States, such as enrollment data and data that 
                reflect the number of students taking the 
                English proficiency assessments in the States.
          (5) No reduction permitted based on teaching 
        method.--The Secretary may not reduce a State's 
        allotment based on the State's selection of any method 
        of instruction as its preferred method of teaching the 
        English language to children who are limited English 
        proficient.

SEC. 3106. 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, 
secondary, and postsecondary schools operated predominately for 
Native American or Alaska Native children, the following shall 
be considered to be a local educational agency:
          (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 or secondary school that is 
        operated or funded by the Bureau of Indian Affairs, or 
        a consortium of such schools.
          (5) An elementary 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 or secondary school operated by the 
        Bureau of Indian Affairs and an institution of higher 
        education, in consortium with an elementary 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 a local educational agency under 
subsection (a), and that desires to submit an application for 
Federal financial assistance under this subpart, shall submit 
the application to the Secretary. In all other respects, such 
an entity shall be eligible for a subgrant under this subpart 
on the same basis as any other local educational agency.

SEC. 3107. APPLICATIONS BY STATES.

  For purposes of section 3105, an application submitted by a 
State for a grant under such section for a fiscal year is in 
accordance with this section if the application--
          (1) describes the process that the State will use in 
        making competitive subgrants to eligible entities under 
        section 3109(c);
          (2) contains an agreement that, in carrying out this 
        subpart, the State will address the needs of school 
        systems of all sizes and in all geographic areas, 
        including rural and urban schools;
          (3) contains an agreement that competitive subgrants 
        to eligible entities under section 3109(c) shall be of 
        sufficient size and scope to allow such entities to 
        carry out high quality education programs for limited 
        English proficient children;
          (4) contains an agreement that the State will 
        coordinate its programs and activities under this 
        subpart with its other programs and activities under 
        this Act and other Acts, as appropriate;
          (5) contains an agreement that the State--
                  (A) shall monitor the progress of students 
                enrolled in programs and activities receiving 
                assistance under this subpart in attaining 
                English proficiency and in attaining 
                challenging State academic content standards 
                and challenging State student academic 
                achievement standards;
                  (B) shall establish standards and benchmarks 
                for English language development that are 
                aligned with State academic content and 
                achievement standards; and
                  (C) will ensure that eligible entities comply 
                with section 3104 to annually test children in 
                English who have been in the United States for 
                3 or more consecutive years;
          (6) contains an assurance that the State will develop 
        high-quality annual assessments to measure English 
        language proficiency and require eligible entities 
        receiving a subgrant under this subpart annually to 
        assess the English proficiency of all children with 
        limited English proficiency participating in a program 
        funded under this subpart;
          (7) contains an agreement that the State will develop 
        annual performance objectives for raising the level of 
        English proficiency of each limited English proficient 
        student, and that these objectives shall include 
        percentage increases in performance on annual 
        assessments in reading, writing, speaking, and 
        listening comprehension as compared to the preceding 
        school year; and
          (8) contains an agreement that the State will require 
        eligible entities 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 English language instruction and programs which 
        assist limited English proficient children in attaining 
        challenging State academic content standards and 
        challenging State student academic achievement 
        standards once assistance under this subpart is no 
        longer available.

SEC. 3108. SUBGRANTS TO ELIGIBLE ENTITIES.

  (a) Purposes of Subgrants.--A State may make a subgrant to an 
eligible entity from funds received by the State under this 
subpart only if the entity agrees to expend the funds to 
improve the education of limited English proficient children 
and their families, through the acquisition of English and the 
attainment of challenging State academic content standards and 
challenging State student academic achievement standards, using 
approaches and methodologies based on scientifically based 
reading research and sound research and theory on teaching 
limited English proficient children, by--
          (1) developing and implementing new English language 
        and academic content instructional programs for 
        children who are limited English proficient, including 
        programs of early childhood education and kindergarten 
        through 12th grade education;
          (2) carrying out highly focused, innovative, locally 
        designed projects to expand or enhance existing English 
        language and academic content instruction programs for 
        limited English proficient children;
          (3) implementing, within an individual school, 
        schoolwide programs for restructuring, reforming, and 
        upgrading all relevant programs and operations relating 
        to English language and academic content instruction 
        for limited English proficient students; or
          (4) implementing, within the entire jurisdiction of a 
        local educational agency, agencywide programs for 
        restructuring, reforming, and upgrading all relevant 
        programs and operations relating to English language 
        and academic content instruction for limited English 
        proficient students.
  (b) Authorized Subgrantee Activities.--
          (1) In general.--Subject to paragraph (2), a State 
        may make a subgrant to an eligible entity from funds 
        received by the State under this subpart in order that 
        the eligible entity may achieve one of the purposes 
        described in subsection (a) by undertaking one or more 
        of the following activities to improve the 
        understanding, and use, of the English language, based 
        on a child's learning skills and attainment of 
        challenging State academic content standards and 
        challenging State student academic achievement 
        standards:
                  (A) Upgrading program objectives and 
                effective instructional strategies.
                  (B) Improving the instruction program for 
                limited English proficient students by 
                identifying, acquiring, and upgrading 
                curricula, instructional materials, educational 
                software, and assessment procedures.
                  (C) Providing--
                          (i) tutorials and academic or 
                        vocational education for limited 
                        English proficient children; and
                          (ii) intensified instruction.
                  (D) Developing and implementing elementary or 
                secondary school English language instructional 
                programs that are coordinated with other 
                relevant programs and services.
                  (E) Providing professional development to 
                classroom teachers, principals, administrators, 
                and other school or community-based 
                organizational personnel to improve the 
                instruction and assessment of children who are 
                limited English proficient children.
                  (F) Improving the English language 
                proficiency and academic performance of limited 
                English proficient children.
                  (G) Improving the instruction of limited 
                English proficient children by providing for 
                the acquisition or development of education 
                technology or instructional materials, access 
                to and participation in electronic networks for 
                materials, training and communications, and 
                incorporation of such resources in curricula 
                and programs, such as those funded under this 
                subpart.
                  (H) Developing tutoring programs for limited 
                English proficient children that provide early 
                intervention and intensive instruction in order 
                to improve academic achievement, to increase 
                graduation rates among limited English 
                proficient children, and to prepare students 
                for transition as soon as possible into 
                classrooms where instruction is not tailored 
                for limited English proficient children.
                  (I) Providing family literacy services and 
                parent outreach and training activities to 
                limited English proficient children and their 
                families to improve their English language 
                skills and assist parents in helping their 
                children to improve their academic performance.
                  (J) Other activities that are consistent with 
                the purposes of this part.
          (2) Moving children out of specialized classrooms.--
        Any program or activity undertaken by an eligible 
        entity using a subgrant from a State under this subpart 
        shall be designed to assist students enrolled in the 
        program or activity to attain English proficiency and 
        meet challenging State academic content standards and 
        challenging State student academic achievement 
        standards as soon as possible, but not later than after 
        3 consecutive years of attendance in United States 
        schools (excluding schools in Puerto Rico), and to move 
        into a classroom where instruction is not tailored for 
        limited English proficient children.
  (c) Selection of Method of Instruction.--To receive a 
subgrant from a State 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 
standards and challenging State student academic achievement 
standards. Such selection shall be consistent with sections 
3134 and 3135.
  (d) Duration of Subgrants.--The duration of a competitive 
subgrant made by a State under section 3109(c) shall be 
determined by the State in its discretion.
  (e) Applications by Eligible Entities.--
          (1) In general.--To receive a subgrant from a State 
        under this subpart, an eligible entity shall submit an 
        application to the State at such time, in such form, 
        and containing such information as the State may 
        require.
          (2) Required documentation.--The application shall--
                  (A) describe the programs and activities 
                proposed to be developed, implemented, and 
                administered under the subgrant;
                  (B) describe how the eligible entity will use 
                the subgrant funds to satisfy the requirement 
                in subsection (b)(2); and
                  (C) describe how the eligible entity, using 
                the disaggregated results of the student 
                assessments required under section 1111(b)(4) 
                and other measures available, will annually 
                review the progress of elementary and secondary 
                schools within its jurisdiction, or served by 
                it, to determine if such schools are making the 
                adequate yearly progress necessary to ensure 
                that limited English proficient students 
                attending the schools will meet the State's 
                proficient level of performance on the State 
                assessment described in section 1111(b)(4), and 
                will hold such schools accountable for making 
                such progress.
          (3) Requirements for approval.--The application shall 
        contain assurances that--
                  (A) the eligible entity will use qualified 
                personnel who have appropriate training and 
                professional credentials in teaching English to 
                children who are limited English proficient, 
                and who are proficient in English, including 
                written and oral communication skills;
                  (B) if the eligible entity includes one or 
                more local educational agencies, each such 
                agency is complying with section 3103(b) prior 
                to, and throughout, each school year;
                  (C) the eligible entity annually will assess 
                the English proficiency of all children with 
                limited English proficiency participating in 
                programs funded under this subpart;
                  (D) the eligible entity has based its 
                proposal on scientifically based reading 
                research and sound research and theory on 
                teaching limited English proficient children;
                  (E) the eligible entity has described in the 
                application how students enrolled in the 
                programs and activities proposed in the 
                application will be proficient in English after 
                3 academic years of enrollment;
                  (F) the eligible entity will ensure that 
                programs will enable children to speak, read, 
                write, and comprehend the English language and 
                meet challenging State academic content 
                standards and challenging State student 
                academic achievement standards; and
                  (G) 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 3134 and 3135.
          (4) Quality.--For the purposes of awarding 
        competitive subgrants under section 3109(c), a State 
        shall consider the quality of each application and 
        ensure that it is of sufficient size and scope to meet 
        the purposes of this subpart.

SEC. 3109. DISTRIBUTION OF SUBGRANTS TO ELIGIBLE ENTITIES.

  (a) In General.--A State shall expend at least 95 percent of 
its allotment under section 3105(c) each fiscal year for the 
purpose of making subgrants to eligible entities within the 
State that have approved applications, in accordance with 
subsections (b) and (c).
  (b) Formula Subgrants.--
          (1) Reservation.--75 percent of the amount expended 
        by a State for subgrants under this subpart shall be 
        reserved for subgrants to eligible entities described 
        in subsection (a) in which, during the fiscal year for 
        which the subgrant is to be made, the number of limited 
        English proficient children and youth who are enrolled 
        in public and nonpublic elementary or secondary schools 
        located in geographic areas under the jurisdiction of, 
        or served by, such entities is equal to at least 500 
        students, or 3 percent of the total number of children 
        and youth enrolled in such schools during such fiscal 
        year, whichever is less.
          (2) Allotment.--From the amount reserved under 
        paragraph (1), the State shall allot to each eligible 
        entity described in such paragraph a percentage based 
        on the ratio of--
                  (A) the number of limited English proficient 
                children and youth who are enrolled in public 
                and nonpublic elementary or secondary schools 
                located in geographic areas under the 
                jurisdiction of, or served by, such entity 
                during the fiscal year for which the allotment 
                is to be made; to
                  (B) the number of such children and youth in 
                all such eligible entities.
          (3) Reallotment.--Whenever a State determines that an 
        allotment made to an eligible entity under this 
        subsection for a fiscal year will not be used by the 
        entity for the purpose for which it was made, the State 
        shall, in accordance with such rules as it deems 
        appropriate, reallot such amount, consistent with 
        paragraph (2), to other eligible entities in the State 
        for carrying out that purpose.
  (c) Competitive Subgrants.--25 percent of the amount expended 
by a State for subgrants under this subpart shall be reserved 
for competitive subgrants to eligible entities described in 
subsection (a) that the State determines--
          (1) have experienced significant increases, as 
        compared to the previous 2 years, in the percentage or 
        number of children and youth with limited English 
        proficiency, including recent immigrant children, that 
        have enrolled in public and nonpublic elementary or 
        secondary schools in the geographic areas under the 
        jurisdiction of, or served by, such entities during the 
        fiscal year for which the subgrant is to be made; or
          (2) do not satisfy the requirements of subsection 
        (b)(1) but have significant needs for programs under 
        this subpart.

SEC. 3110. AUTHORIZATION OF APPROPRIATIONS.

  For the purpose of carrying out this subpart, there are 
authorized to be appropriated $750,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years.

                       Subpart 2--Administration

SEC. 3121. EVALUATIONS.

  (a) In General.--Each eligible entity that receives a 
subgrant from a State under subpart 1 shall provide the State, 
at the conclusion of every second fiscal year during which the 
subgrant is received, with an evaluation, in a form prescribed 
by the State, of--
          (1) the programs and activities conducted by the 
        entity with funds received under subpart 1 during the 2 
        immediately preceding fiscal years;
          (2) the progress made by students in learning the 
        English language and meeting challenging State academic 
        content standards and challenging State student 
        academic achievement standards;
          (3) the number and percentage of students in the 
        programs and activities attaining English language 
        proficiency by the end of each school year, as 
        determined by a valid and reliable assessment of 
        English proficiency; and
          (4) the progress made by students in meeting 
        challenging State academic content standards and 
        challenging State student academic achievement 
        standards for each of the 2 years after such students 
        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--
          (1) for improvement of programs and activities;
          (2) to determine the effectiveness of programs and 
        activities in assisting children who are limited 
        English proficient to attain English proficiency (as 
        measured consistent with subsection (d)) and meet 
        challenging State academic content standards and 
        challenging State student academic achievement 
        standards; and
          (3) in determining whether or not to continue funding 
        for specific programs or projects.
  (c) Evaluation Components.--An evaluation provided by an 
eligible entity under subsection (a) shall include--
          (1) an evaluation of whether students enrolling in a 
        program or activity conducted by the entity with funds 
        received under subpart 1--
                  (A) have attained English proficiency and are 
                meeting challenging State academic content 
                academic and challenging State student academic 
                achievement standards; and
                  (B) have achieved a working knowledge of the 
                English language that is sufficient to permit 
                them to perform, in English, in a classroom 
                that is not tailored to limited English 
                proficient children; and
          (2) such other information as the State may require.
  (d) Evaluation Measures.--In prescribing the form of an 
evaluation provided by an entity under subsection (a), a State 
shall approve evaluation measures, as applicable, for use under 
subsection (c) that are designed to assess--
          (1) oral language proficiency in kindergarten;
          (2) oral language proficiency, including speaking and 
        listening skills, in first grade;
          (3) both oral language proficiency, including 
        speaking and listening skills, and reading and writing 
        proficiency in grades 2 and higher; and
          (4) attainment of challenging State student academic 
        achievement standards.

SEC. 3122. REPORTING REQUIREMENTS.

  (a) States.--Based upon the evaluations provided to a State 
under section 3121, each State that receives a grant under 
subpart 1 shall prepare and submit every second year to the 
Secretary a report on programs and activities undertaken by the 
State under such subpart 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 
on--
          (1) programs and activities undertaken by States 
        under subpart 1 and the effectiveness of such programs 
        and activities in improving the education provided to 
        children who are limited English proficient;
          (2) the types of instructional programs used under 
        subpart 1 to teach limited English proficient children;
          (3) the number of programs or projects, if any, that 
        were terminated because they were not able to reach 
        program goals;
          (4) the number of limited English proficient children 
        served under subpart 1 who were transitioned out of 
        special instructional programs funded under such 
        subpart into classrooms where instruction is not 
        tailored for limited English proficient children; and
          (5) other information gathered from the reports 
        submitted under subsection (a).

SEC. 3123. 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 students that are administered by 
the Department and other agencies.

                     Subpart 3--General Provisions

SEC. 3131. DEFINITIONS.

  For purposes of this part:
          (1) Children and youth.--The term ``children and 
        youth'' means individuals aged 3 through 21.
          (2) Community-based organization.--The term 
        ``community-based organization'' means a private 
        nonprofit organization of demonstrated effectiveness or 
        Indian tribe or tribally sanctioned educational 
        authority which is representative of a community or 
        significant segments of a community and which provides 
        educational or related services to individuals in the 
        community. Such term includes a Native Hawaiian or 
        Native American Pacific Islander native language 
        educational organization.
          (3) Eligible entity.--The term ``eligible entity'' 
        means--
                  (A) one or more local educational agencies; 
                or
                  (B) one or more local educational agencies in 
                collaboration with an institution of higher 
                education, community-based organization, or 
                State educational agency.
          (4) 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 majority of its 
        governing board and employees consisting of fluent 
        speakers of the traditional Native American languages 
        used in their educational programs and with not less 
        than 5 years successful experience in providing 
        educational services in traditional Native American 
        languages.
          (5) Native language.--The term ``native language'', 
        when used with reference to an individual who is 
        limited English proficient, means the language normally 
        used by such individual.
          (6) Specially qualified agency.--The term ``specially 
        qualified agency'', when used with respect to a fiscal 
        year, means an eligible entity located in a State that, 
        for that year--
                  (A) does not submit to the Secretary an 
                application under sections 3105(a) and 3107; or
                  (B) submits an application (or any 
                modification to an application) that the 
                Secretary, after reasonable notice and 
                opportunity for a hearing, determines does not 
                satisfy the requirements of subpart 1.
          (7) 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 3106(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 for individuals served 
                        by a school described in section 
                        3106(a).

SEC. 3132. RULES OF CONSTRUCTION.

  Nothing in subpart 1 shall be construed--
          (1) to prohibit a local educational agency from 
        serving limited English proficient children and youth 
        simultaneously with students 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 as defined in the Native American 
        Languages Act of 1990.

SEC. 3133. LIMITATION ON FEDERAL REGULATIONS.

  The Secretary shall issue regulations under this part only to 
the extent that such regulations are necessary to ensure 
compliance with the specific requirements of this part.

SEC. 3134. LEGAL AUTHORITY UNDER STATE LAW.

  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. 3135. CIVIL RIGHTS.

  Nothing in this part shall be construed in a manner 
inconsistent with any Federal law guaranteeing a civil right.

SEC. 3136. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

  Programs authorized under subpart 1 that serve Native 
American children, Native Pacific Island children, and children 
in the Commonwealth of Puerto Rico, notwithstanding any other 
provision of subpart 1, may include programs of instruction, 
teacher training, curriculum development, evaluation, and 
testing designed for Native American children learning and 
studying Native American languages and children of limited 
Spanish proficiency, except that a primary outcome of programs 
serving such children shall be increased English proficiency 
among such children.

               PART B--INDIAN AND ALASKA NATIVE EDUCATION

                      Subpart 1--Indian Education

SEC. 3201. FINDINGS.

  Congress finds that--
          (1) the Federal Government has a special 
        responsibility to ensure that educational programs for 
        all American Indian and Alaska Native children and 
        adults--
                  (A) are based on high-quality, 
                internationally competitive academic content 
                standards and student academic achievement 
                standards and build on Indian culture and the 
                Indian community;
                  (B) assist local educational agencies, Indian 
                tribes, and other entities and individuals in 
                providing Indian students the opportunity to 
                achieve such standards; and
                  (C) meet the unique educational and 
                culturally related academic needs of American 
                Indian and Alaska Native students;
          (2) since the date of the enactment of the initial 
        Indian Education Act in 1972, the level of involvement 
        of Indian parents in the planning, development, and 
        implementation of educational programs that affect such 
        parents and their children has increased significantly, 
        and schools should continue to foster such involvement;
          (3) although the number of Indian teachers, 
        administrators, and university professors has increased 
        since 1972, teacher training programs are not 
        recruiting, training, or retraining a sufficient number 
        of Indian individuals as educators to meet the needs of 
        a growing Indian student population in elementary, 
        secondary, vocational, adult, and higher education;
          (4) the dropout rate for Indian students is 
        unacceptably high; 9 percent of Indian students who 
        were eighth graders in 1988 had dropped out of school 
        by 1990;
          (5) during the period from 1980 to 1990, the 
        percentage of Indian individuals living at or below the 
        poverty level increased from 24 percent to 31 percent, 
        and the readiness of Indian children to learn is 
        hampered by the high incidence of poverty, 
        unemployment, and health problems among Indian children 
        and their families; and
          (6) research related specifically to the education of 
        Indian children and adults is very limited, and much of 
        the research is of poor quality or is focused on 
        limited local or regional issues.

SEC. 3202. PURPOSE.

  (a) Purpose.--It is the purpose of this subpart 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 Indians and Alaska Natives, so that such 
students can achieve to the same challenging State academic 
achievement standards expected of all other students.
  (b) Programs.--this subpart 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;
          (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.

        CHAPTER 1--FORMULA GRANTS TO LOCAL EDUCATIONAL AGENCIES

SEC. 3211. PURPOSE.

  It is the purpose of this chapter to support local 
educational agencies in their efforts to reform elementary and 
secondary school programs that serve Indian students in order 
to ensure that such programs--
          (1) are based on challenging State academic content 
        standards and State student academic achievement 
        standards that are used for all students; and
          (2) are designed to assist Indian students in meeting 
        those standards and assist the Nation in reaching the 
        National Education Goals.

SEC. 3212. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  (a) In General.--
          (1) Enrollment requirements.--A local educational 
        agency shall be eligible for a grant under this chapter 
        for any fiscal year if the number of Indian children 
        eligible under section 3217 and 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.
  (b) Indian Tribes.--
          (1) In general.--If a local educational agency that 
        is eligible for a grant under this chapter does not 
        establish a parent committee under section 3214(c)(4) 
        for such grant, an Indian tribe that represents not 
        less than one-half 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 chapter, except that any 
        such tribe is not subject to section 3214(c)(4), 
        section 3218(c), or section 3219.

SEC. 3213. 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 which has an approved 
        application under this chapter an amount equal to the 
        product of--
                  (A) the number of Indian children who are 
                eligible under section 3217 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 in the United States.
          (2) Reduction.--The Secretary shall reduce the amount 
        of each allocation determined under paragraph (1) in 
        accordance with subsection (e).
  (b) Minimum Grant.--
          (1) In general.--Notwithstanding subsection (e), a 
        local educational agency or an Indian tribe (as 
        authorized under section 3212(b)) that is eligible for 
        a grant under section 3212, 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 chapter 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 chapter.
          (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 of 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) 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
                  (ii) 80 percent of the average per pupil 
                expenditure in the United States.
  (2) Any school described in paragraph (1)(A) that wishes to 
receive an allocation under this chapter shall submit an 
application in accordance with section 3214, and shall 
otherwise be treated as a local educational agency for the 
purpose of this chapter, except that such school shall not be 
subject to section 3214(c)(4), section 3218(c), or section 
3219.
  (e) Ratable Reductions.--If the sums appropriated for any 
fiscal year under section 3252(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. 3214. APPLICATIONS.

  (a) Application Required.--Each local educational agency that 
desires to receive a grant under this chapter 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 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) provides programs and activities to meet the 
        culturally related academic needs of American Indian 
        and Alaska Native students;
          (2)(A) is consistent with State and local plans under 
        other provisions of this Act; and
          (B) includes academic content and student performance 
        goals for such children, and benchmarks for attaining 
        such goals, that are based on the challenging State 
        standards under title I;
          (3) explains how Federal, State, and local programs, 
        especially under title I, will meet the needs of such 
        students;
          (4) demonstrates how funds made available under this 
        chapter will be used for activities described in 
        section 3215;
          (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 chapter 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 chapter, in meeting the 
                goals described in paragraph (2);
                  (B) will provide the results of each 
                assessment referred to in subparagraph (A) to--
                          (i) the committee of parents 
                        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 chapter only to supplement the 
        level of funds that, in the absence of the Federal 
        funds made available under this chapter, such agency 
        would make available for the education of Indian 
        children, and not to supplant such funds;
          (2) the local educational agency will submit such 
        reports to the Secretary, in such form and containing 
        such information, as the Secretary may require to--
                  (A) carry out the functions of the Secretary 
                under this chapter; and
                  (B) determine the extent to which funds 
                provided to the local educational agency under 
                this chapter 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 to 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 
                public hearings held by such agency to provide 
                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 and 
                        teachers; and
                          (ii) if appropriate, Indian students 
                        attending secondary schools;
                  (B) a majority of whose members are parents 
                of Indian children;
                  (C) that sets 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;
                  (D) with respect to an application describing 
                a schoolwide program in accordance with section 
                3215(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 Alaskan Native 
                        students; and
                  (E) that has adopted reasonable bylaws for 
                the conduct of the activities of the committee 
                and abides by such bylaws.

SEC. 3215. AUTHORIZED SERVICES AND ACTIVITIES.

  (a) General Requirements.--Each local educational agency that 
receives a grant under this chapter shall use the grant funds, 
in a manner consistent with the purpose specified in section 
3211, 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 3214(b);
          (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 
        standards and State 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, 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 meet the 
        purposes described in section 3211; and
          (8) family literacy services.
  (c) Schoolwide Programs.--Notwithstanding any other provision 
of law, a local educational agency may use funds made available 
to such agency under this chapter to support a schoolwide 
program under section 1114 if--
          (1) the committee composed of parents established 
        pursuant to section 3214(c)(4) approves the use of the 
        funds for the schoolwide program; and
          (2) the schoolwide program is consistent with the 
        purposes described in section 3211.
  (d) Limitation on Administrative Costs.--Not more than 5 
percent of the funds provided to a grantee under this chapter 
for any fiscal year may be used for administrative purposes.

SEC. 3216. INTEGRATION OF SERVICES AUTHORIZED.

  (a) Plan.--An entity receiving funds under this chapter may 
submit a plan to the Secretary for the integration of education 
and related services provided to Indian students.
  (b) Coordination of Programs.--Upon the receipt of an 
acceptable plan, the Secretary, in cooperation with each 
Federal agency providing grants for the provision of education 
and related services to the applicant, shall authorize the 
applicant to coordinate, in accordance with such plan, its 
federally funded education and related services programs, or 
portions thereof, 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 (b) shall include funds for any Federal program 
exclusively serving Indian children or the funds reserved under 
any program to exclusively serve Indian children under which 
the applicant is eligible for receipt of funds under a 
statutory or administrative formula for the purposes of 
providing education and related services which would be used to 
serve Indian students.
  (d) Plan Requirements.--For a plan to be acceptable pursuant 
to subsection (b), it shall--
          (1) identify the programs or funding sources to be 
        consolidated;
          (2) be consistent with the purposes of this section 
        authorizing the services to be integrated in a 
        demonstration project;
          (3) describe a comprehensive strategy which 
        identifies the full range of potential educational 
        opportunities and related services to be provided to 
        assist Indian students to achieve the goals set forth 
        in this chapter;
          (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 local, State, or tribal agency or 
        agencies to be involved in the delivery of the services 
        integrated under the plan;
          (7) identify any statutory provisions, regulations, 
        policies, or procedures that the applicant believes 
        need to be waived in order to implement its plan;
          (8) set forth measures of student achievement and 
        performance goals designed to be met within a specified 
        period of time; and
          (9) be approved by a parent committee formed in 
        accordance with section 3214(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 applicant to implement its plan. 
Notwithstanding any other provision of law, the Secretary of 
the affected department or departments shall have the authority 
to waive any regulation, policy, or procedure promulgated by 
that department that has been so identified by the applicant or 
department, unless the Secretary of the affected department 
determines that such a waiver is inconsistent with the intent 
of this chapter or those provisions of the statute from which 
the program involved derives its authority which are 
specifically applicable to Indian students.
  (f) Plan Approval.--Within 90 days after the receipt of an 
applicant's plan by the Secretary, the Secretary shall inform 
the applicant, in writing, of the Secretary's approval or 
disapproval of the plan. If the plan is disapproved, the 
applicant shall be informed, in writing, of the reasons for the 
disapproval and shall be given an opportunity to amend its plan 
or to petition the Secretary to reconsider such disapproval.
  (g) Responsibilities of Department of Education.--Not later 
than 180 days after the date of the 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 program under this section shall be--
          (1) the Secretary of the Interior, in the case of 
        applicant meeting the definition of 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 applicant.
  (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 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, 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 the demonstration 
of student 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 which 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 purposes of this 
section.
  (l) Administration of Funds.--
          (1) In general.--Program funds shall be administered 
        in such a manner as to allow for a determination that 
        funds from specific a program or programs are spent on 
        allowable activities authorized under such program, 
        except that the eligible entity shall determine the 
        proportion of the funds granted which 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 its approved 
        plan to the individual programs under which funds were 
        authorized, nor shall the eligible entity be required 
        to allocate expenditures among such individual 
        programs.
  (m) Overage.--All administrative costs may be commingled and 
participating entities shall be entitled to the full amount of 
such costs (under each program or department's regulations), 
and no overage shall be counted for Federal audit purposes, 
provided that the overage is used for the purposes provided for 
under this section.
  (n) Fiscal Accountability.--Nothing in this subpart 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 the Single Audit Act 
of 1984.
  (o) Report on Statutory Obstacles to Program Integration.--
          (1) Preliminary report.--Not later than 2 years after 
        the date of the enactment of the No Child Left Behind 
        Act of 2001, the Secretary of Education shall submit a 
        preliminary 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 on the status of the implementation 
        of the demonstration program authorized under this 
        section.
          (2) Final report.--Not later than 5 years after the 
        date of the enactment of the No Child Left Behind Act 
        of 2001, the Secretary of Education shall submit a 
        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 on the results of the implementation of 
        the demonstration program 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 
        purposes 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 
        applicant meeting the definition of 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 applicant.

SEC. 3217. STUDENT ELIGIBILITY FORMS.

  (a) In General.--The Secretary shall require that, as part of 
an application for a grant under this chapter, 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 chapter and that otherwise 
meets the requirements of subsection (b).
  (b) Forms.--
          (1) In general.--The form described in subsection (a) 
        shall include--
                  (A) either--
                          (i)(I) the name of the tribe or band 
                        of Indians (as described in section 
                        3251(3)) 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
                          (ii) if the child is not a member of 
                        a tribe or band of Indians, the name, 
                        the enrollment number (if readily 
                        available), and the organization (and 
                        address thereof) responsible for 
                        maintaining updated and accurate 
                        membership rolls of the tribe of any 
                        parent or grandparent of the child from 
                        whom the child claims eligibility;
                  (B) a statement of whether the tribe or band 
                of Indians with respect to which the child, 
                parent, or grandparent of the child claims 
                membership is federally recognized;
                  (C) the name and address of the parent or 
                legal guardian of the child;
                  (D) a signature of the parent or legal 
                guardian of the child that verifies the 
                accuracy of the information supplied; and
                  (E) any other information that the Secretary 
                considers necessary to provide an accurate 
                program profile.
          (2) Minimum information.--In order for a child to be 
        eligible to be counted for the purpose of computing the 
        amount of a grant award made under section 3213, an 
        eligibility form prepared pursuant to this section for 
        a child shall include--
                  (A) the name of the child;
                  (B) the name of the tribe or band of Indians 
                (as described in section 3251(3)) with respect 
                to which the child claims eligibility; and
                  (C) the dated signature of the parent or 
                guardian of the child.
          (3) Failure.--The failure of an applicant to furnish 
        any information described in this subsection other than 
        the information described in paragraph (2) with respect 
        to any child shall have no bearing on the determination 
        of whether the child is an eligible Indian child for 
        the purposes of determining the amount of a grant award 
        made under section 3213.
  (c) Statutory Construction.--Nothing in this section shall be 
construed to affect a definition contained in section 3251.
  (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 1985-1986 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 such eligibility; 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 under section 3213, the membership of the 
child, or any parent or grandparent of the child, in a tribe or 
band of Indians 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) 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 chapter, the Secretary 
        shall conduct a monitoring and evaluation review of a 
        sampling of the recipients of grants under this 
        chapter. The sampling conducted under this subparagraph 
        shall take into account the size of the local 
        educational agency and the geographic location of such 
        agency.
          (B) 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 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 chapter shall--
                  (A) be ineligible to apply for any other 
                grant under this subpart; and
                  (B) be liable to the United States for any 
                funds 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 3213.
  (g) Tribal Grant and Contract Schools.--Notwithstanding any 
other provision of this section, in awarding funds under this 
chapter 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:
          (1) A count of the number of students in those 
        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 chapter (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, so long as that date or period occurs 
        before the deadline established by the Secretary for 
        submitting an application under section 3214; 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. 3218. 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 chapter the amount determined under section 3213. 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 chapter 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 3213 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 any fiscal 
        year, the Secretary determines that a local educational 
        agency failed to maintain the fiscal effort of 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 
                chapter in the exact proportion of such 
                agency's failure to maintain its fiscal effort 
                at such level; and
                  (B) not use the reduced amount of the 
                agency's 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) The Secretary may waive the 
        requirement of paragraph (1), 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) The Secretary shall not use the reduced amount of 
        such 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 chapter, 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 chapter; or
          (2) otherwise become available for reallocation under 
        this chapter.

SEC. 3219. STATE EDUCATIONAL AGENCY REVIEW.

  Before submitting an application to the Secretary under 
section 3214, 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, it 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.

    CHAPTER 2--SPECIAL PROGRAMS AND PROJECTS TO IMPROVE EDUCATIONAL 
                   OPPORTUNITIES FOR INDIAN CHILDREN

SEC. 3221. 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 such 
        actions as are necessary to achieve the coordination of 
        activities assisted under this chapter with--
                  (A) other programs funded under this Act; and
                  (B) other Federal programs operated for the 
                benefit of American Indian and Alaska Native 
                children.
  (b) Eligible Entities.--For the purpose of this section, the 
term ``eligible entity'' means a State educational agency, 
local educational agency, Indian tribe, Indian organization, 
federally supported elementary and secondary school for Indian 
students, Indian institution, including an Indian institution 
of higher education, or a consortium of such institutions.
  (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 specified in 
        subsection (a)(1), 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 
                unique 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 secondary 
                school graduation;
                  (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 school 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; or
                  (L) other services that meet the purpose 
                described in subsection (a)(1).
          (2) Professional development.--Professional 
        development of teaching professionals and 
        paraprofessional may be a part of any program assisted 
        under this section.
  (d) Grant Requirements and Applications.--
          (1) Grant requirements.--(A) The Secretary may make 
        multiyear grants under this section for the planning, 
        development, pilot operation, or demonstration of any 
        activity described in subsection (c) for a period not 
        to exceed 5 years.
          (B) In making multiyear grants under this section, 
        the Secretary shall give priority to 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) The Secretary shall make a grant payment 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 (2) and any subsequent modifications to such 
        application.
          (D)(i) In addition to awarding the multiyear grants 
        described in subparagraph (A), the Secretary may award 
        grants to eligible entities for the dissemination of 
        exemplary materials or programs assisted under this 
        section.
          (ii) The Secretary may award a dissemination grant 
        under this subparagraph if, prior to awarding the 
        grant, the Secretary determines that the material or 
        program to be disseminated has been adequately reviewed 
        and has demonstrated--
                  (I) educational merit; and
                  (II) the ability to be replicated.
          (2) Application.--(A) 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 require.
          (B) Each application submitted to the Secretary under 
        subparagraph (A), other than an application for a 
        dissemination grant under paragraph (1)(D), 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 is either a research-based 
                program (which may be a research-based program 
                that has been modified to be culturally 
                appropriate for the students who will be 
                served);
                  (iv) a description of how the applicant will 
                incorporate the proposed services into the 
                ongoing school program once the grant period is 
                over; and
                  (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 chapter for any fiscal 
year may be used for administrative purposes.

SEC. 3222. 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 or local educational agency, in 
        consortium with an institution of higher education; and
          (3) an Indian tribe or organization, in consortium 
        with an institution of higher education.
  (c) Program Authorized.--The Secretary is authorized to award 
grants to eligible entities having applications approved under 
this section to enable such entities to carry out the 
activities described in subsection (d).
  (d) Authorized Activities.--
          (1) In general.--Grant funds under this section shall 
        be used to provide support and training for Indian 
        individuals in a manner consistent with the purposes of 
        this section. Such activities may include but are not 
        limited to, continuing programs, symposia, workshops, 
        conferences, and direct financial support.
          (2) Special rules.--(A) For education personnel, the 
        training received pursuant to a grant under this 
        section may be inservice or preservice training.
          (B) 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 making grants under this section, the 
Secretary--
          (1) shall consider the prior performance of the 
        eligible entity; and
          (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 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 the compliance of such recipient with the 
        work requirement under paragraph (1).

                CHAPTER 3--NATIONAL RESEARCH ACTIVITIES

SEC. 3231. NATIONAL ACTIVITIES.

  (a) Authorized Activities.--The Secretary may use funds made 
available under section 3252(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 subpart.
  (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 
        assure 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 by the Office 
        of Indian Education Programs and the Office of 
        Educational Research and Improvement.

                   CHAPTER 4--FEDERAL ADMINISTRATION

SEC. 3241. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

  (a) Membership.--There 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--
          (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 subpart--
                  (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) submit to the Congress, not later than June 30 of 
        each year, a report on the activities of the Council, 
        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. 3242. PEER REVIEW.

  The Secretary may use a peer review process to review 
applications submitted to the Secretary under chapter 2 or 3.

SEC. 3243. PREFERENCE FOR INDIAN APPLICANTS.

  In making grants under chapter 2 or 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.

SEC. 3244. MINIMUM GRANT CRITERIA.

  The Secretary may not approve an application for a grant 
under subpart 2 unless the application is for a grant that is--
          (1) of sufficient size, scope, and quality to achieve 
        the purpose or objectives of such grant; and
          (2) based on relevant research findings.

        CHAPTER 5--DEFINITIONS; AUTHORIZATIONS OF APPROPRIATIONS

SEC. 3251. DEFINITIONS.

  For the purposes of this subpart:
          (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
                  (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 it was in effect the 
                day preceding the date of the enactment of the 
                Improving America's Schools Act of 1994.

SEC. 3252. AUTHORIZATIONS OF APPROPRIATIONS.

  (a) Chapter 1.--For the purpose of carrying out chapter 1 of 
this subpart, there are authorized to be appropriated 
$100,000,000 for fiscal year 2002, and such sums as may be 
necessary for each of fiscal years 2003 through 2006.
  (b) Chapters 2 and 3.--For the purpose of carrying out 
chapters 2 and 3 of this subpart, there are authorized to be 
appropriated $25,000,000 for fiscal year 2002, and such sums as 
may be necessary for each of the fiscal years 2003 through 
2006.

                   Subpart 2--Alaska Native Education

SEC. 3301. SHORT TITLE.

  This subpart may be cited as the ``Alaska Native Educational 
Equity, Support, and Assistance Act''.

SEC. 3302. FINDINGS.

  The Congress finds and declares:
          (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. In addition to 
        low Native performance on standardized tests, 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 herein, 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 
        and village Alaska should be addressed through the 
        development and implementation of innovative, model 
        programs in a variety of areas.
          (7) Congress finds that 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. 3303. PURPOSE.

  It is the purpose of this subpart to--
          (1) recognize the unique educational needs of Alaska 
        Natives;
          (2) authorize the development of supplemental 
        educational programs to benefit Alaska Natives;
          (3) supplement existing programs and authorities in 
        the area of education to further the purposes of this 
        subpart; and
          (4) provide direction and guidance to appropriate 
        Federal, State and local agencies to focus resources, 
        including resources made available under this subpart, 
        on meeting the educational needs of Alaska Natives.

SEC. 3304. PROGRAM AUTHORIZED.

  (a) General Authority.--
          (1) Program authorized.--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, and consortia of such organizations 
        and entities to carry out programs that meet the 
        purpose of this subpart.
          (2) Permissible activities.--Programs under this 
        subpart may include--
                  (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--
                          (i) curriculum materials that reflect 
                        the cultural diversity or the 
                        contributions of Alaska Natives;
                          (ii) instructional programs that make 
                        use of Native Alaskan languages; and
                          (iii) networks that introduce 
                        successful programs, materials, and 
                        techniques to urban and rural schools;
                  (C) professional development activities for 
                educators, including--
                          (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; 
                        and
                          (iii) recruiting and preparing 
                        teachers who are Alaska Natives, 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;
                  (D) the development and operation of home 
                instruction programs for Alaska Native 
                preschool children, the purpose of which is 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 high school, to 
                        excel in science and math; and
                          (ii) provide appropriate support 
                        services to the families of such 
                        students that are needed to enable such 
                        students to benefit from the program;
                  (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 under this subpart; and
                  (I) other activities, consistent with the 
                purposes of this subpart, to meet the 
                educational needs of Alaska Native children and 
                adults.
          (3) Home instruction programs.--Home instruction 
        programs for Alaska Native preschool children under 
        paragraph (2)(D) may include--
                  (A) programs for parents and their infants, 
                from prenatal through age three;
                  (B) preschool programs; and
                  (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) Authorization of Appropriations.--There are authorized to 
be appropriated $15,000,000 for fiscal year 2002, and such sums 
as may be necessary for each of the fiscal years 2003 through 
2006 to carry out this subpart.

SEC. 3305. ADMINISTRATIVE PROVISIONS.

  (a) Application Required.--No grant may be made under this 
subpart, nor any contract be entered into under this subpart, 
unless an application is submitted 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 subpart.
  (b) Applications.--State and local educational agencies may 
apply for an award under this subpart only as subpart of a 
consortium involving an Alaska Native organization. This 
consortium may include other eligible applicants.
  (c) Consultation Required.--Each applicant for funding 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 subpart shall inform each local 
educational agency serving students who would participate in 
the project about its application.

SEC. 3306. DEFINITIONS.

  For purposes of this subpart--
          (1) the term ``Alaska Native'' has the same meaning 
        as the term ``Native'' has in section 3(b) of the 
        Alaska Native Claims Settlement Act; and
          (2) the term ``Alaska Native organization'' means a 
        federally recognized tribe, consortium of tribes, 
        regional nonprofit Native association, and other Alaska 
        Native organizations that--
                  (A) has or commits to acquire expertise in 
                the education of Alaska Natives; and
                  (B) has Alaska Natives in substantive and 
                policy-making positions within the 
                organization.

         [TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

[SEC. 4001. SHORT TITLE.

  [This title may be cited as the ``Safe and Drug-Free Schools 
and Communities Act of 1994''.

[SEC. 4002. FINDINGS.

  [The Congress finds as follows:
          [(1) The seventh National Education Goal provides 
        that by the year 2000, all schools in America will be 
        free of drugs and violence and the unauthorized 
        presence of firearms and alcohol, and offer a 
        disciplined environment that is conducive to learning.
          [(2) The widespread illegal use of alcohol and other 
        drugs among the Nation's secondary school students, and 
        increasingly by students in elementary schools as well, 
        constitutes a grave threat to such students' physical 
        and mental well-being, and significantly impedes the 
        learning process. For example, data show that students 
        who drink tend to receive lower grades and are more 
        likely to miss school because of illness than students 
        who do not drink.
          [(3) Our Nation's schools and communities are 
        increasingly plagued by violence and crime. 
        Approximately 3,000,000 thefts and violent crimes occur 
        in or near our Nation's schools every year, the 
        equivalent of more than 16,000 incidents per school 
        day.
          [(4) Violence that is linked to prejudice and 
        intolerance victimizes entire communities leading to 
        more violence and discrimination.
          [(5) The tragic consequences of violence and the 
        illegal use of alcohol and drugs by students are felt 
        not only by students and such students' families, but 
        by such students' communities and the Nation, which can 
        ill afford to lose such students' skills, talents, and 
        vitality.
          [(6) While use of illegal drugs is a serious problem 
        among a minority of teenagers, alcohol use is far more 
        widespread. The proportion of high school students 
        using alcohol, though lower than a decade ago, remains 
        unacceptably high. By the 8th grade, 70 percent of 
        youth report having tried alcohol and by the 12th 
        grade, about 88 percent have used alcohol. Alcohol use 
        by young people can and does have adverse consequences 
        for users, their families, communities, schools, and 
        colleges.
          [(7) Alcohol and tobacco are widely used by young 
        people. Such use can, and does, have adverse 
        consequences for young people, their families, 
        communities, schools, and colleges. Drug prevention 
        programs for youth that address only controlled drugs 
        send an erroneous message that alcohol and tobacco do 
        not present significant problems, or that society is 
        willing to overlook their use. To be credible, messages 
        opposing illegal drug use by youth should address 
        alcohol and tobacco as well.
          [(8) Every day approximately 3,000 children start 
        smoking. Thirty percent of all secondary school seniors 
        are smokers. Half of all new smokers begin smoking 
        before the age of 14, 90 percent of such smokers begin 
        before the age of 21, and the average age of the first 
        use of smokeless tobacco is under the age of 10. Use of 
        tobacco products has been linked to serious health 
        problems. Drug education and prevention programs that 
        include tobacco have been effective in reducing teenage 
        use of tobacco.
          [(9) Drug and violence prevention programs are 
        essential components of a comprehensive strategy to 
        promote school safety and to reduce the demand for and 
        use of drugs throughout the Nation. Schools and local 
        organizations in communities throughout the Nation have 
        a special responsibility to work together to combat the 
        growing epidemic of violence and illegal drug use and 
        should measure the success of their programs against 
        clearly defined goals and objectives.
          [(10) Students must take greater responsibility for 
        their own well-being, health, and safety if schools and 
        communities are to achieve the goals of providing a 
        safe, disciplined, and drug-free learning environment.

[SEC. 4003. PURPOSE.

  [The purpose of this title is to support programs to meet the 
seventh National Education Goal by preventing violence in and 
around schools and by strengthening programs that prevent the 
illegal use of alcohol, tobacco, and drugs, involve parents, 
and are coordinated with related Federal, State, and community 
efforts and resources, through the provision of Federal 
assistance to--
          [(1) States for grants to local educational agencies 
        and educational service agencies and consortia of such 
        agencies to establish, operate, and improve local 
        programs of school drug and violence prevention, early 
        intervention, rehabilitation referral, and education in 
        elementary and secondary schools (including 
        intermediate and junior high schools);
          [(2) States for grants to, and contracts with, 
        community-based organizations and other public and 
        private nonprofit agencies and organizations for 
        programs of drug and violence prevention, early 
        intervention, rehabilitation referral, and education;
          [(3) States for development, training, technical 
        assistance, and coordination activities;
          [(4) public and private nonprofit organizations to 
        conduct training, demonstrations, and evaluation, and 
        to provide supplementary services for the prevention of 
        drug use and violence among students and youth; and
          [(5) institutions of higher education to establish, 
        operate, expand, and improve programs of school drug 
        and violence prevention, education, and rehabilitation 
        referral for students enrolled in colleges and 
        universities.

[SEC. 4004. FUNDING.

  [There are authorized to be appropriated--
          [(1) $630,000,000 for fiscal year 1995, and such sums 
        as may be necessary for each of the four succeeding 
        fiscal years, for State grants under subpart 1; and
          [(2) $25,000,000 for fiscal year 1995, and such sums 
        as may be necessary for each of the four succeeding 
        fiscal years, for national programs under subpart 2.

    [PART A--STATE GRANTS FOR DRUG AND VIOLENCE PREVENTION PROGRAMS

   [Subpart 1--State Grants for Drug and Violence Prevention Programs

[SEC. 4011. RESERVATIONS AND ALLOTMENTS.

  [(a) Reservations.--From the amount made available under 
section 4004(a) to carry out this subpart for each fiscal year, 
the Secretary--
          [(1) shall reserve 1 percent of such amount for 
        grants under this subpart to Guam, American Samoa, the 
        Virgin Islands, and the Commonwealth of the Northern 
        Mariana Islands, to be allotted in accordance with the 
        Secretary's determination of their respective needs;
          [(2) shall reserve 1 percent of such amount for the 
        Secretary of the Interior to carry out programs under 
        this part for Indian youth;
          [(3) may reserve not more than $1,000,000 for the 
        national impact evaluation required by section 4117(a); 
        and
          [(4) shall reserve 0.2 percent of such amount for 
        programs for Native Hawaiians under section 4118.
  [(b) State Allotments.--
          [(1) In general.--Except as provided in paragraph 
        (2), the Secretary shall, for each fiscal year, 
        allocate 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 part A of title I for the 
                preceding year (or, for fiscal year 1995 only, 
                sections 1005 and 1006 of this Act as such 
                sections were in existence on the day preceding 
                the date of enactment of the Improving 
                America's Schools Act of 1994) 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 one-half of 1 percent of the total amount allotted 
        to all the States under this subsection.
          [(3) 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 two years of such allotment. Such 
        reallotments shall be made on the same basis as 
        allotments are made under paragraph (1).
          [(4) Definitions.--For the purpose of this 
        subsection--
                  [(A) the term ``State'' means each of the 50 
                States, the District of Columbia, and the 
                Commonwealth of Puerto Rico; and
                  [(B) the term ``local educational agency'' 
                includes educational service agencies and 
                consortia of such agencies.

[SEC. 4112. STATE APPLICATIONS.

  [(a) In General.--In order to receive an allotment under 
section 4111 for any fiscal year, a State shall submit to the 
Secretary, at such time as the Secretary may require, an 
application that--
          [(1) describes how funds under this subpart will be 
        coordinated with programs under this Act, the Goals 
        2000: Educate America Act, and other Acts, as 
        appropriate, in accordance with the provisions of 
        section 14306;
          [(2) contains the results of the State's needs 
        assessment for drug and violence prevention programs, 
        which shall be based on the results of on-going State 
        evaluation activities, including data on the prevalence 
        of drug use and violence by youth in schools and 
        communities;
          [(3) contains assurances that the sections of the 
        application concerning the funds provided to the chief 
        executive officer and the State educational agency were 
        developed separately by such officer or agency, 
        respectively, but in consultation and coordination with 
        appropriate State officials and others, including the 
        chief State school officer, the chief executive 
        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) contains an assurance that the State will 
        cooperate with, and assist, the Secretary in conducting 
        a national impact evaluation of programs required by 
        section 4117(a); and
          [(5) includes any other information the Secretary may 
        require.
  [(b) State Educational Agency Funds.--A State's application 
under this section shall also contain a comprehensive plan for 
the use of funds under section 4113(a) by the State educational 
agency that includes--
          [(1) a statement of the State educational agency's 
        measurable goals and objectives for drug and violence 
        prevention and a description of the procedures such 
        agency will use for assessing and publicly reporting 
        progress toward meeting those goals and objectives;
          [(2) a plan for monitoring the implementation of, and 
        providing technical assistance regarding, the drug and 
        violence prevention programs conducted by local 
        educational agencies in accordance with section 4116;
          [(3) a description of how the State educational 
        agency will use funds under section 4113(b);
          [(4) a description of 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;
          [(5) an explanation of the criteria the State 
        educational agency will use to identify which local 
        educational agencies receive supplemental funds under 
        section 4113(d)(2)(A)(ii) and how the supplemental 
        funds will be allocated among such local educational 
        agencies; and
          [(6) a description of the procedures the State 
        educational agency will use to review applications from 
        local educational agencies under section 4115.
  [(c) Governor's Funds.--A State's application under this 
section shall also contain a comprehensive plan for the use of 
funds under section 4114(a) by the chief executive officer that 
includes--
          [(1) a statement of the chief executive officer's 
        measurable goals and objectives for drug and violence 
        prevention and a description of the procedures to be 
        used for assessing and publicly reporting progress 
        toward meeting such goals and objectives;
          [(2) a description of how the chief executive officer 
        will coordinate such officer's activities under this 
        part with the State educational agency and other State 
        agencies and organizations involved with drug and 
        violence prevention efforts;
          [(3) a description of how funds reserved under 
        section 4114(a) will be used so as not to duplicate the 
        efforts of the State educational agency and local 
        educational agencies with regard to the provision of 
        school-based prevention efforts and services and how 
        those funds will be used to serve populations not 
        normally served by the State educational agency, such 
        as school dropouts and youth in detention centers;
          [(4) a description of how the chief executive officer 
        will award funds under section 4114(a) and a plan for 
        monitoring the performance of, and providing technical 
        assistance to, recipients of such funds;
          [(5) a description of the special outreach activities 
        that will be carried out to maximize the participation 
        of community-based organizations of demonstrated 
        effectiveness which provide services in low-income 
        communities; and
          [(6) a description of how funds will be used to 
        support community-wide comprehensive drug and violence 
        prevention planning.
  [(d) Peer Review.--The Secretary shall use a peer review 
process in reviewing State applications under this section.
  [(e) Interim Application.--Notwithstanding any other 
provisions of this section, a State may submit for fiscal year 
1995 a one-year interim application and plan for the use of 
funds under this subpart that are consistent with the 
requirements of this section and contain such information as 
the Secretary may specify in regulations. 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. A State may not receive a grant under this subpart for 
a fiscal year subsequent to fiscal year 1995 unless the 
Secretary has approved such State's application and 
comprehensive plan in accordance with this subpart.

[SEC. 4113. STATE AND LOCAL EDUCATIONAL AGENCY PROGRAMS.

  [(a) Use of Funds.--
          [(1) In general.--Except as provided in paragraph 
        (2), an amount equal to 80 percent of the total amount 
        allocated to a State under section 4111 for each fiscal 
        year shall be used by the State educational agency and 
        its local educational agencies for drug and violence 
        prevention activities in accordance with this section.
          [(2) Exception.--(A) If a State has, on or before 
        January 1, 1994, established an independent State 
        agency for the purpose of administering all of the 
        funds described in section 5121 of this Act (as such 
        section was in effect on the day preceding the date of 
        the enactment of the Improving America's Schools Act of 
        1994), then--
                  [(i) an amount equal to 80 percent of the 
                total amount allocated to such State under 
                section 4111 for each fiscal year shall be used 
                by the State educational agency and its local 
                educational agencies for drug and violence 
                prevention activities in accordance with this 
                section; and
                  [(ii) an amount equal to 20 percent of such 
                total amount shall be used by such independent 
                State agency for drug and violence prevention 
                activities in accordance with this section.
          [(B) Not more than 5 percent of the amount reserved 
        under subparagraph (A)(ii) may be used for 
        administrative costs of the independent State agency 
        incurred in carrying out the activities described in 
        such subparagraph.
          [(C) For purposes of this paragraph, the term 
        ``independent State agency'' means an independent 
        agency with a board of directors or a cabinet level 
        agency whose chief executive officer is appointed by 
        the chief executive officer of the State and confirmed 
        with the advice and consent of the senate of such 
        State.
  [(b) State Level Programs.--
          [(1) In general.--A State educational agency shall 
        use not more than 5 percent of the amount available 
        under subsection (a) for activities such as--
                  [(A) training and technical assistance 
                concerning drug and violence prevention for 
                local educational agencies and educational 
                service agencies, including teachers, 
                administrators, coaches and athletic directors, 
                other staff, parents, students, community 
                leaders, health service providers, local law 
                enforcement officials, and judicial officials;
                  [(B) the development, identification, 
                dissemination, and evaluation of the most 
                readily available, accurate, and up-to-date 
                curriculum materials (including videotapes, 
                software, and other technology-based learning 
                resources), for consideration by local 
                educational agencies;
                  [(C) making available to local educational 
                agencies cost effective programs for youth 
                violence and drug abuse prevention;
                  [(D) demonstration projects in drug and 
                violence prevention;
                  [(E) training, technical assistance, and 
                demonstration projects to address violence 
                associated with prejudice and intolerance;
                  [(F) financial assistance to enhance 
                resources available for drug and violence 
                prevention in areas serving large numbers of 
                economically disadvantaged children or sparsely 
                populated areas, or to meet other special needs 
                consistent with the purposes of this subpart; 
                and
                  [(G) the evaluation of activities carried out 
                within the State under this part.
          [(2) Special rule.--A State educational agency may 
        carry out activities under this subsection directly, or 
        through grants or contracts.
  [(c) State Administration.--A State educational agency may 
use not more than 4 percent of the amount reserved under 
subsection (a) for the administrative costs of carrying out its 
responsibilities under this part.
  [(d) Local Educational Agency Programs.--
          [(1) In general.--A State educational agency shall 
        distribute not less than 91 percent of the amount made 
        available under subsection (a) for each fiscal year to 
        local educational agencies in accordance with this 
        subsection.
          [(2) Distribution.--(A) Of the amount distributed 
        under paragraph (1), a State educational agency shall 
        distribute--
                  [(i) 70 percent of such amount to local 
                educational agencies, based on the relative 
                enrollments in public and private nonprofit 
                elementary and secondary schools within the 
                boundaries of such agencies; and
                  [(ii) 30 percent of such amount to local 
                educational agencies that the State educational 
                agency determines have the greatest need for 
                additional funds to carry out drug and violence 
                prevention programs authorized by this subpart.
          [(B) Where appropriate and to the extent consistent 
        with the needs assessment conducted by the State, not 
        less than 25 percent of the amount distributed under 
        subparagraph (A)(ii) for a fiscal year shall be 
        distributed to local educational agencies located in 
        rural and urban areas.
          [(C)(i) A State educational agency shall distribute 
        funds under subparagraph (A)(ii) to not more than 10 
        percent of the local educational agencies in the State, 
        or five such agencies, whichever is greater.
          [(ii) In determining which local educational agencies 
        have the greatest need for additional funds, the State 
        educational agency shall consider objective data such 
        as--
                  [(I) high rates of alcohol or drug use among 
                youth;
                  [(II) high rates of victimization of youth by 
                violence and crime;
                  [(III) high rates of arrests and convictions 
                of youth for violent or drug- or alcohol-
                related crime;
                  [(IV) the extent of illegal gang activity;
                  [(V) high incidence of violence associated 
                with prejudice and intolerance;
                  [(VI) high rates of referrals of youths to 
                drug and alcohol abuse treatment and 
                rehabilitation programs;
                  [(VII) high rates of referrals of youths to 
                juvenile court;
                  [(VIII) high rates of expulsions and 
                suspensions of students from schools; and
                  [(IX) high rates of reported cases of child 
                abuse and domestic violence.
  [(e) Reallocation of Funds.--If a local educational agency 
chooses not to apply to receive the amount allocated to such 
agency under subsection (d), or if such agency's application 
under section 4115 is disapproved by the State educational 
agency, the State educational agency shall reallocate such 
amount to one or more of the local educational agencies 
determined by the State educational agency under subsection 
(d)(2)(C)(ii) to have the greatest need for additional funds.
  [(f) Return of Funds to State Educational Agency; 
Reallocation.--
          [(1) Return.--Except as provided in paragraph (2), 
        upon the expiration of the 1-year period beginning on 
        the date that a local educational agency or educational 
        service agency under this title receives its allocation 
        under this title--
                  [(A) such agency shall return to the State 
                educational agency any funds from such 
                allocation that remain unobligated; and
                  [(B) the State educational agency shall 
                reallocate any such amount to local educational 
                agencies or educational service agencies that 
                have plans for using such amount for programs 
                or activities on a timely basis.
          [(2) Reallocation.--In any fiscal year, a local 
        educational agency, may retain for obligation in the 
        succeeding fiscal year--
                  [(A) an amount equal to not more than 25 
                percent of the allocation it receives under 
                this title for such fiscal year; or
                  [(B) upon a demonstration of good cause by 
                such agency or consortium, a greater amount 
                approved by the State educational agency.

[SEC. 4114. GOVERNOR'S PROGRAMS.

  [(a) Use of Funds.--
          [(1) In general.--An amount equal to 20 percent of 
        the total amount allocated to a State under section 
        4111(1) for each fiscal year shall be used by the chief 
        executive officer of such State for drug and violence 
        prevention programs and activities in accordance with 
        this section.
          [(2) Law enforcement education partnerships.--A chief 
        executive officer shall use not less than 10 percent of 
        the 20 percent of the total amount described in 
        paragraph (1) for each fiscal year for law enforcement 
        education partnerships in accordance with subsection 
        (d).
          [(3) Administrative costs.--A chief executive officer 
        may use not more than 5 percent of the 20 percent of 
        the total amount described in paragraph (1) for the 
        administrative costs incurred in carrying out the 
        duties of such officer under this section.
  [(b) Programs Authorized.--
          [(1) In general.--A chief executive officer shall use 
        funds made available under subsection (a)(1) for grants 
        to or contracts with parent groups, community action 
        and job training agencies, community-based 
        organizations, and other public entities and private 
        nonprofit organizations and consortia thereof. In 
        making such grants and contracts, a chief executive 
        officer shall give priority to programs and activities 
        described in subsection (c) for--
                  [(A) children and youth who are not normally 
                served by State or local educational agencies; 
                or
                  [(B) populations that need special services 
                or additional resources (such as preschoolers, 
                youth in juvenile detention facilities, runaway 
                or homeless children and youth, pregnant and 
                parenting teenagers, and school dropouts).
          [(2) Peer review.--Grants or contracts awarded under 
        this subsection shall be subject to a peer review 
        process.
  [(c) Authorized Activities.--Grants and contracts under 
subsection (b) shall be used for programs and activities such 
as--
          [(1) disseminating information about drug and 
        violence prevention;
          [(2) training parents, law enforcement officials, 
        judicial officials, social service providers, health 
        service providers and community leaders about drug and 
        violence prevention, comprehensive health education, 
        early intervention, pupil services, or rehabilitation 
        referral;
          [(3) developing and implementing comprehensive, 
        community-based drug and violence prevention programs 
        that link community resources with schools and 
        integrate services involving education, vocational and 
        job skills training and placement, law enforcement, 
        health, mental health, community service, mentoring, 
        and other appropriate services;
          [(4) planning and implementing drug and violence 
        prevention activities that coordinate the efforts of 
        State agencies with efforts of the State educational 
        agency and its local educational agencies;
          [(5) activities to protect students traveling to and 
        from school;
          [(6) before-and-after school recreational, 
        instructional, cultural, and artistic programs that 
        encourage drug- and violence-free lifestyles;
          [(7) activities that promote the awareness of and 
        sensitivity to alternatives to violence through courses 
        of study that include related issues of intolerance and 
        hatred in history;
          [(8) developing and implementing activities to 
        prevent and reduce violence associated with prejudice 
        and intolerance;
          [(9) developing and implementing strategies to 
        prevent illegal gang activity;
          [(10) coordinating and conducting community-wide 
        violence and safety assessments and surveys;
          [(11) service-learning projects that encourage drug- 
        and violence-free lifestyles; and
          [(12) evaluating programs and activities assisted 
        under this section.
  [(d) Law Enforcement Education Partnerships.--A chief 
executive officer shall use funds under subsection (a)(2) to 
award grants to State, county or local law enforcement agencies 
(including district attorneys) in consortium with local 
educational agencies or community-based agencies for the 
purposes of carrying out drug abuse and violence prevention 
activities, such as--
          [(1) Project Drug Abuse Resistance Education and 
        other programs which provide classroom instruction by 
        uniformed law enforcement officials that is designed to 
        teach students to recognize and resist pressures to 
        experiment that influence such children to use 
        controlled substances or alcohol;
          [(2) Project Legal Lives and other programs in which 
        district attorneys provide classroom instruction in the 
        law and legal system which emphasizes interactive 
        learning techniques, such as mock trial competitions;
          [(3) partnerships between law enforcement and child 
        guidance professionals; and
          [(4) before- and after-school activities.

[SEC. 4115. LOCAL APPLICATIONS.

  [(a) Application Required.--
          [(1) In general.--In order to be eligible to receive 
        a distribution under section 4113(d) for any fiscal 
        year, a local educational agency shall submit, at such 
        time as the State educational agency requires, an 
        application to the State educational agency for 
        approval. Such an application shall be amended, as 
        necessary, to reflect changes in the local educational 
        agency's program.
          [(2) Development.--(A) A local educational agency 
        shall develop its application under subsection (a)(1) 
        in consultation with a local or substate regional 
        advisory council that includes, to the extent possible, 
        representatives of local government, business, parents, 
        students, teachers, pupil services personnel, 
        appropriate State agencies, private schools, the 
        medical profession, law enforcement, community-based 
        organizations, and other groups with interest and 
        expertise in drug and violence prevention.
          [(B) In addition to assisting the local educational 
        agency to develop an application under this section, 
        the advisory council established or designated under 
        subparagraph (A) shall, on an ongoing basis--
                  [(i) disseminate information about drug and 
                violence prevention programs, projects, and 
                activities conducted within the boundaries of 
                the local educational agency;
                  [(ii) advise the local educational agency 
                regarding--
                          [(I) how best to coordinate such 
                        agency's activities under this subpart 
                        with other related programs, projects, 
                        and activities; and
                          [(II) the agencies that administer 
                        such programs, projects, and 
                        activities; and
                  [(iii) review program evaluations and other 
                relevant material and make recommendations to 
                the local educational agency on how to improve 
                such agency's drug and violence prevention 
                programs.
  [(b) Contents of Applications.--An application under this 
section shall contain--
          [(1) an objective analysis of the current use (and 
        consequences of such use) of alcohol, tobacco, and 
        controlled, illegal, addictive or harmful substances as 
        well as the violence, safety, and discipline problems 
        among students who attend the schools of the applicant 
        (including private school students who participate in 
        the applicant's drug and violence prevention program) 
        that is based on ongoing local assessment or evaluation 
        activities;
          [(2) a detailed explanation of the local educational 
        agency's comprehensive plan for drug and violence 
        prevention, which shall include a description of--
                  [(A) how the plan will be coordinated with 
                programs under this Act, the Goals 2000: 
                Educate America Act, and other Acts, as 
                appropriate, in accordance with the provisions 
                of section 14306;
                  [(B) the local educational agency's 
                measurable goals for drug and violence 
                prevention, and a description of how such 
                agency will assess and publicly report progress 
                toward attaining these goals;
                  [(C) how the local educational agency will 
                use its distribution under this subpart;
                  [(D) how the local educational agency will 
                coordinate such agency's programs and projects 
                with community-wide efforts to achieve such 
                agency's goals for drug and violence 
                prevention; and
                  [(E) how the local educational agency will 
                coordinate such agency's programs and projects 
                with other Federal, State, and local programs 
                for drug-abuse prevention, including health 
                programs; and
          [(3) such other information and assurances as the 
        State educational agency may reasonably require.
  [(c) Review of Application.--
          [(1) In general.--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.
          [(2) Considerations.--(A) In determining whether to 
        approve the application of a local educational agency 
        under this section, a State educational agency shall 
        consider the quality of the local educational agency's 
        comprehensive plan under subsection (b)(2) and the 
        extent to which such plan is coordinated with programs 
        under this Act, the Goals 2000: Educate America Act, in 
        accordance with the provisions of section 14306.
          [(B) A State educational agency may disapprove a 
        local educational agency application under this section 
        in whole or in part and may withhold, limit, or place 
        restrictions on the use of funds allotted to such a 
        local educational agency in a manner the State 
        educational agency determines will best promote the 
        purposes of this part, except that a local educational 
        agency shall be afforded an opportunity to appeal any 
        such disapproval.

[SEC. 4116. LOCAL DRUG AND VIOLENCE PREVENTION PROGRAMS.

  [(a) Program Requirements.--A local educational agency shall 
use funds received under this subpart to adopt and carry out a 
comprehensive drug and violence prevention program which 
shall--
          [(1) be designed, for all students and employees, 
        to--
                  [(A) prevent the use, possession, and 
                distribution of tobacco, alcohol, and illegal 
                drugs by students and to prevent the illegal 
                use, possession, and distribution of such 
                substances by employees;
                  [(B) prevent violence and promote school 
                safety; and
                  [(C) create a disciplined environment 
                conducive to learning; and
          [(2) include activities to promote the involvement of 
        parents and coordination with community groups and 
        agencies, including the distribution of information 
        about the local educational agency's needs, goals, and 
        programs under this subpart.
  [(b) Authorized Activities.--A comprehensive drug and 
violence prevention program carried out under this subpart may 
include--
          [(1) age-appropriate, developmentally based drug 
        prevention and education programs for all students, 
        from the preschool level through grade 12, that address 
        the legal, social, personal and health consequences of 
        the use of illegal drugs, promote a sense of individual 
        responsibility, and provide information about effective 
        techniques for resisting peer pressure to use illegal 
        drugs;
          [(2) programs of drug prevention, comprehensive 
        health education, early intervention, pupil services, 
        mentoring, or rehabilitation referral, which emphasize 
        students' sense of individual responsibility and which 
        may include--
                  [(A) the dissemination of information about 
                drug prevention;
                  [(B) the professional development of school 
                personnel, parents, students, law enforcement 
                officials, judicial officials, health service 
                providers and community leaders in prevention, 
                education, early intervention, pupil services 
                or rehabilitation referral; and
                  [(C) the implementation of strategies, 
                including strategies to integrate the delivery 
                of services from a variety of providers, to 
                combat illegal alcohol, tobacco and drug use, 
                such as--
                          [(i) family counseling;
                          [(ii) early intervention activities 
                        that prevent family dysfunction, 
                        enhance school performance, and boost 
                        attachment to school and family; and
                          [(iii) activities, such as community 
                        service and service-learning projects, 
                        that are designed to increase students' 
                        sense of community;
          [(3) age-appropriate, developmentally based violence 
        prevention and education programs for all students, 
        from the preschool level through grade 12, that address 
        the legal, health, personal, and social consequences of 
        violent and disruptive behavior, including sexual 
        harassment and abuse, and 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;
          [(4) violence prevention programs for school-aged 
        youth, which emphasize students' sense of individual 
        responsibility and may include--
                  [(A) the dissemination of information about 
                school safety and discipline;
                  [(B) the professional development of school 
                personnel, parents, students, law enforcement 
                officials, judicial officials, and community 
                leaders in designing and implementing 
                strategies to prevent school violence;
                  [(C) the implementation of strategies, such 
                as conflict resolution and peer mediation, 
                student outreach efforts against violence, 
                anti-crime youth councils (which work with 
                school and community-based organizations to 
                discuss and develop crime prevention 
                strategies), and the use of mentoring programs, 
                to combat school violence and other forms of 
                disruptive behavior, such as sexual harassment 
                and abuse; and
                  [(D) the development and implementation of 
                character education and training programs that 
                reflect the values of parents, teachers, and 
                local communities, and incorporate elements of 
                good character, including honesty, citizenship, 
                courage, justice, respect, personal 
                responsibility, and trustworthiness; and
                  [(E) comprehensive, community-wide strategies 
                to prevent or reduce illegal gang activities;
          [(5) supporting ``safe zones of passage'' for 
        students between home and school through such measures 
        as Drug- and Weapon-Free School Zones, enhanced law 
        enforcement, and neighborhood patrols;
          [(6) acquiring and installing metal detectors and 
        hiring security personnel;
          [(7) professional development for teachers and other 
        staff and curricula that promote the awareness of and 
        sensitivity to alternatives to violence through courses 
        of study that include related issues of intolerance and 
        hatred in history;
          [(8) the promotion of before-and-after school 
        recreational, instructional, cultural, and artistic 
        programs in supervised community settings;
          [(9) drug abuse resistance education programs, 
        designed to teach students to recognize and resist 
        pressures to use alcohol or other drugs, which may 
        include activities such as classroom instruction by 
        uniformed law enforcement officers, resistance 
        techniques, resistance to peer pressure and gang 
        pressure, and provision for parental involvement; and
          [(10) the evaluation of any of the activities 
        authorized under this subsection.
  [(c) Limitations.--
          [(1) In general.--Not more than 20 percent of the 
        funds made available to a local educational agency 
        under this subpart may be used to carry out the 
        activities described in paragraphs (5) and (6) of 
        subsection (b).
          [(2) Special rule.--A local educational agency shall 
        only be able to use funds received under this subpart 
        for activities described in paragraphs (5) and (6) of 
        subsection (b) if funding for such activities is not 
        received from other Federal agencies.
  [(d) Administrative Provisions.--Notwithstanding any other 
provisions of law, any funds expended prior to July 1, 1995, 
under part B of the Drug-Free Schools and Communities Act of 
1986 (as in effect prior to enactment of the Improving 
America's Schools Act) for the support of a comprehensive 
school health program shall be deemed to have been authorized 
by part B of such Act.

[SEC. 4117. EVALUATION AND REPORTING.

  [(a) National Impact Evaluation.--
          [(1) Biennial evaluation.--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 conduct 
        an independent biennial evaluation of the national 
        impact of programs assisted under this subpart and of 
        other recent and new initiatives to combat violence in 
        schools and submit a report of the findings of such 
        evaluation to the President and the Congress.
          [(2) Data collection.--(A) The National Center for 
        Education Statistics shall collect data to determine 
        the frequency, seriousness, and incidence of violence 
        in elementary and secondary schools in the States. The 
        Secretary shall collect the data using, wherever 
        appropriate, data submitted by the States pursuant to 
        subsection (b)(2)(B).
          [(B) Not later than January 1, 1998, the Secretary 
        shall submit to the Congress a report on the data 
        collected under this subsection, together with such 
        recommendations as the Secretary determines 
        appropriate, including estimated costs for implementing 
        any recommendation.
  [(b) State Report.--
          [(1) In general.--By October 1, 1997, and every third 
        year 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 4114 and section 
                4113(b) and local educational agency programs 
                under section 4113(d), as well as an assessment 
                of their effectiveness; and
                  [(B) on the State's progress toward attaining 
                its goals for drug and violence prevention 
                under subsections (b)(1) and (c)(1) of section 
                4112.
          [(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 
                prevalence of drug use and violence by youth in 
                schools and communities; and
                  [(C) made readily available to the public.
  [(c) Local Educational Agency Report.--Each local educational 
agency receiving funds under this subpart shall submit to the 
State educational agency such information, and at such 
intervals, that the State requires to complete the State report 
required by subsection (b), including information on the 
prevalence of drug use and violence by youth in the schools and 
the community. Such information shall be made readily available 
to the public.

[SEC. 4118. PROGRAMS FOR NATIVE HAWAIIANS.

  [(a) General Authority.--From the funds made available 
pursuant to section 4111(a)(4) to carry out this section, the 
Secretary shall make grants to or enter into cooperative 
agreements or contracts with organizations primarily serving 
and representing Native Hawaiians which are recognized by the 
Governor of the State of Hawaii to plan, conduct, and 
administer programs, or portions thereof, which are authorized 
by and consistent with the provisions of this title for the 
benefit of Native Hawaiians.
  [(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. FEDERAL ACTIVITIES.

  [(a) Program Authorized.--From funds made available to carry 
out this subpart under section 4004(2), the Secretary, in 
consultation with the Secretary of Health and Human Services, 
the Director of the Office of National Drug Control Policy, the 
Chair of the Ounce of Prevention Council, 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 at all educational levels from preschool through 
the postsecondary level. The Secretary shall carry out such 
programs directly, or through grants, contracts, or cooperative 
agreements with public and private nonprofit organizations 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 training school personnel, parents, and 
        members of the community, including the demonstration 
        of model preservice training programs for prospective 
        school personnel;
          [(2) demonstrations and rigorous evaluations of 
        innovative approaches to drug and violence prevention;
          [(3) 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;
          [(4) the development of curricula related to child 
        abuse prevention and education and the training of 
        personnel to teach child abuse education and prevention 
        to elementary and secondary schoolchildren;
          [(5) program evaluations in accordance with section 
        14701 that address issues not addressed under section 
        4117(a);
          [(6) direct services to schools and school systems 
        afflicted with especially severe drug and violence 
        problems;
          [(7) activities in communities designated as 
        empowerment zones or enterprise communities that will 
        connect schools to community-wide efforts to reduce 
        drug and violence problems;
          [(8) developing and disseminating drug and violence 
        prevention materials, including video-based projects 
        and model curricula;
          [(9) developing and implementing a comprehensive 
        violence prevention strategy for schools and 
        communities, that may include conflict resolution, peer 
        mediation, the teaching of law and legal concepts, and 
        other activities designed to stop violence;
          [(10) the implementation of innovative activities, 
        such as community service projects, designed to rebuild 
        safe and healthy neighborhoods and increase students' 
        sense of individual responsibility;
          [(11) grants to noncommercial telecommunications 
        entities for the production and distribution of 
        national video-based projects that provide young people 
        with models for conflict resolution and responsible 
        decisionmaking;
          [(12) 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; and
          [(13) other activities that meet unmet national needs 
        related to the purposes of this title.
  [(b) Peer Review.--The Secretary shall use a peer review 
process in reviewing applications for funds under this section.

[SEC. 4123. HATE CRIME PREVENTION.

  [(a) Grant Authorization.--From funds made available to carry 
out this subpart under section 4004(1) the Secretary may 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) In general.--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 office may 
        reasonably require.
          [(3) Requirements.--Each application under paragraph 
        (2) shall include--
                  [(A) a request for funds for the purposes 
                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, 
                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) 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.
          [(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 the Congress a 
report every two years which shall contain a detailed statement 
regarding grants and awards, activities of grant recipients, 
and an evaluation of programs established under this section.

                     [Subpart 3--General Provisions

[SEC. 4131. DEFINITIONS.

  [For the purposes of this part:
          [(1) Community-based organization.--The term 
        ``community-based organization'' means a private 
        nonprofit organization which is representative of a 
        community or significant segments of a community and 
        which provides educational or related services to 
        individuals in the community.
          [(2) 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 alcohol 
                and the use of controlled, illegal, addictive, 
                or harmful substances, including inhalants and 
                anabolic steroids;
                  [(B) prevention, early intervention, smoking 
                cessation activities, or education, related to 
                the use of tobacco by children and youth 
                eligible for services under this title; and
                  [(C) 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.
          [(3) Hate crime.--The term ``hate crime'' means a 
        crime as described in section 1(b) of the Hate Crime 
        Statistics Act of 1990.
          [(4) 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.
          [(5) 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.
          [(6) School personnel.--The term ``school personnel'' 
        includes teachers, administrators, guidance 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.

[SEC. 4132. MATERIALS.

  [(a) ``Wrong and Harmful'' Message.--Drug prevention programs 
supported under this part shall convey a clear and consistent 
message that the illegal use of alcohol and other drugs is 
wrong and harmful.
  [(b) Curriculum.--The Secretary shall not prescribe the use 
of specific curricula for programs supported under this part, 
but may evaluate the effectiveness of such curricula and other 
strategies in drug and violence prevention.

[SEC. 4133. 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); and
          [(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 use alcohol, tobacco, or 
        drugs.

[SEC. 4134. QUALITY RATING.

  [(a) In General.--The chief executive officer of each State, 
or in the case of a State in which the constitution or law of 
such State designates another individual, entity, or agency in 
the State to be responsible for education activities, such 
individual, entity, or agency, is authorized and encouraged--
          [(1) to establish a standard of quality for drug, 
        alcohol, and tobacco prevention programs implemented in 
        public elementary schools and secondary schools in the 
        State in accordance with subsection (b); and
          [(2) to identify and designate, upon application by a 
        public elementary school or secondary school, any such 
        school that achieves such standard as a quality program 
        school.
  [(b) Criteria.--The standard referred to in subsection (a) 
shall address, at a minimum--
          [(1) a comparison of the rate of illegal use of 
        drugs, alcohol, and tobacco by students enrolled in the 
        school for a period of time to be determined by the 
        chief executive officer of the State;
          [(2) the rate of suspensions or expulsions of 
        students enrolled in the school for drug, alcohol, or 
        tobacco-related offenses;
          [(3) the effectiveness of the drug, alcohol, or 
        tobacco prevention program as proven by research;
          [(4) the involvement of parents and community members 
        in the design of the drug, alcohol, and tobacco 
        prevention program; and
          [(5) the extent of review of existing community drug, 
        alcohol, and tobacco prevention programs before 
        implementation of the public school program.
  [(c) Request for Quality Program School Designation.--A 
school that wishes to receive a quality program school 
designation shall submit a request and documentation of 
compliance with this section to the chief executive officer of 
the State or the individual, entity, or agency described in 
subsection (a), as the case may be.
  [(d) Public Notification.--Not less than once a year, the 
chief executive officer of each State or the individual, 
entity, or agency described in subsection (a), as the case may 
be, shall make available to the public a list of the names of 
each public school in the State that has received a quality 
program school designation in accordance with this section.]

  TITLE IV--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                      PART A--INNOVATIVE PROGRAMS

             Subpart 1--State and Local Innovative Programs

SEC. 4101. FINDINGS AND STATEMENT OF PURPOSE.

  (a) Findings.--Congress finds that this subpart--
          (1) provides flexibility to meet local needs;
          (2) promotes local and State education reforms;
          (3) contributes to the improvement of academic 
        achievement for all students;
          (4) provides funding for critical activities; and
          (5) provides services for private school students.
  (b) Statement of Purpose.--It is the purpose of programs 
under this subpart--
          (1) to provide funding to enable States and local 
        educational agencies to implement promising educational 
        reform programs and school improvement initiatives 
        based on scientifically based research;
          (2) to provide a continuing source of innovation and 
        educational improvement, including support for library 
        services and instructional and media materials; and
          (3) to meet the educational needs of all students, 
        including at-risk youth.
  (c) State and Local Responsibility.--
          (1) In general.--The States shall have the basic 
        responsibility for the administration of funds made 
        available under this subpart, but such administration 
        shall be carried out with a minimum of paperwork.
          (2) Design and implementation.--Notwithstanding 
        paragraph (1), local educational agencies, school 
        superintendents and principals, and classroom teachers 
        and supporting personnel shall be mainly responsible 
        for the design and implementation of programs assisted 
        under this subpart, because such 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.

                  CHAPTER 1--STATE AND LOCAL PROGRAMS

SEC. 4111. ALLOCATION TO STATES.

  (a) Reservations.--From the sums appropriated to carry out 
this subpart for each fiscal year, the Secretary shall reserve 
not more than 1 percent for payments to outlying areas to be 
allotted in accordance with their respective needs.
  (b) Allocation of remainder.--From the remainder of such 
sums, the Secretary shall allocate, and make available in 
accordance with this subpart, to each State an amount which 
bears the same ratio to the amount of such remainder 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 \1/2\ of 1 percent of such 
remainder.

SEC. 4112. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

  (a) Distribution Rule.--
          (1) In general.--Subject to paragraph (2), from the 
        sums made available each year to carry out this 
        subpart, the State shall distribute not less than 85 
        percent to local educational agencies within such State 
        according to the relative enrollments in public and 
        private, nonprofit schools within the jurisdictions of 
        such agencies, adjusted, in accordance with criteria 
        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) Exception.--100 percent of any amount by which 
        the funds paid to a State under this subpart for a 
        fiscal year exceed the amount of such funds paid to the 
        State for fiscal year 2001 shall be distributed to 
        local educational agencies and used locally for 
        innovative assistance described in section 4131(b).
          (3) Limitation on use of funds for administration.--
        In each fiscal year, a State may use not more than 25 
        percent of the funds available for State programs under 
        this subpart for State administration under section 
        4121.
  (b) 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 whose parents would 
                like their children to participate in programs 
                or projects assisted under this subpart, for 
                the fiscal year preceding the fiscal year for 
                which the determination is made.
          (2) 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 chapter.
          (3) Adjustments.--
                  (A) In general.--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) Criteria.--The Secretary shall review 
                criteria submitted by a State 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 
                local educational agencies based on the factors 
                set forth in subparagraph (A).
  (c) Payment of Allocations.--
          (1) Distribution.--From the funds paid to a State 
        under this subpart for a fiscal year, a State shall 
        distribute to each eligible local educational agency 
        that has submitted an application as required in 
        section 4133 the amount of such local educational 
        agency's allocation, as determined under subsection 
        (a).
          (2) Additional funds.--
                  (A) In general.--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 and private, nonprofit 
                schools in direct proportion to the number of 
                children described in subsection (a)(1) and 
                enrolled in such schools within the local 
                educational agency.
                  (B) Election.--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 local educational 
                agency in such manner.
                  (C) 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.

                       CHAPTER 2--STATE PROGRAMS

SEC. 4121. STATE USE OF FUNDS.

  A State may use funds made available for State use under this 
subpart only for--
          (1) State administration of programs under this 
        subpart including--
                  (A) supervision of the allocation of funds to 
                local educational agencies;
                  (B) planning, supervision, and processing of 
                State funds; and
                  (C) monitoring and evaluation of programs and 
                activities under this subpart;
          (2) support for planning, designing, and initial 
        implementation of charter schools as described in part 
        B;
          (3) statewide education reform and school improvement 
        activities and technical assistance and direct grants 
        to local educational agencies which assist such 
        agencies under section 4131; and
          (4) support for arrangements that provide for 
        independent analysis to measure and report on school 
        district achievement.

SEC. 4122. STATE APPLICATIONS.

  (a) Application Requirements.--If a State seeks to receive 
assistance under this subpart, the individual, entity, or 
agency responsible for public elementary and secondary 
education policy under the State constitution or State law 
shall submit to the Secretary an application that--
          (1) provides for an annual statewide summary of how 
        assistance under this subpart is contributing toward 
        improving student achievement or improving the quality 
        of education for students;
          (2) provides information setting forth the allocation 
        of such funds required to implement section 4142;
          (3) provides that the State 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);
          (4) provides assurance that, apart from technical and 
        advisory assistance and monitoring compliance with this 
        subpart, the State 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 under section 4133;
          (5) contains assurances that there is compliance with 
        the specific requirements of this subpart; and
          (6) provides for timely public notice and public 
        dissemination of the information provided under 
        paragraph (2).
  (b) Statewide Summary.--The statewide summary referred to in 
subsection (a)(1) shall be submitted to the Secretary and shall 
be derived from the evaluation information submitted by local 
educational agencies to the State under section 4133(a)(2)(H). 
The format and content of such summary shall be in the 
discretion of the State and may include statistical measures 
such as the number of students served by each type of 
innovative assistance described in section 4131(b), including 
the number of teachers trained.
  (c) Period of Application.--An application filed by the State 
under subsection (a) shall be for a period not to exceed 3 
years, and may be amended annually as may be necessary to 
reflect changes without filing a new application.
  (d) Audit Limitation.--Each local educational agency 
receiving less than an average of $5,000 under this subpart may 
not be audited more frequently than once every 5 years.

             CHAPTER 3--LOCAL INNOVATIVE EDUCATION PROGRAMS

SEC. 4131. USE OF FUNDS.

  (a) In General.--Funds made available to local educational 
agencies under section 4112 shall be used for innovative 
assistance programs described in subsection (b).
  (b) Innovative Assistance.--The innovative assistance 
programs referred to in subsection (a) may include--
          (1) professional development activities and the 
        hiring of teachers, including 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 achievement standards;
          (2) technology related to the implementation of 
        school-based reform programs, including professional 
        development to assist teachers, and other school 
        officials, regarding how to use effectively such 
        equipment and software;
          (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 achievement, and that are part of an 
        overall education reform program;
          (4) promising education reform projects, including 
        effective schools and magnet schools;
          (5) programs to improve the academic skills of 
        disadvantaged elementary and secondary school students 
        and to prevent students from dropping out of school;
          (6) programs to combat illiteracy;
          (7) programs to provide for the educational needs of 
        gifted and talented children;
          (8) planning, designing, 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 and 
        encouraging 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);
          (12) activities to promote, implement, or expand 
        public school choice;
          (13) programs to hire and support school nurses;
          (14) expanding and improving 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; and
          (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.

SEC. 4132. ADMINISTRATIVE AUTHORITY.

  In order to conduct the activities authorized by this 
subpart, each State or local educational agency may use funds 
made available under this subpart 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, including religious organizations.

SEC. 4133. LOCAL APPLICATIONS.

  (a) Certification.--
          (1) In general.--A local educational agency or a 
        consortium of such agencies may receive an allocation 
        of funds under this subpart for any year for which the 
        agency or consortium submits an application under this 
        section that is certified by the State to meet the 
        requirements of this section.
          (2) Contents of Application.--The State shall certify 
        each application that--
                  (A) describes locally identified needs 
                relative to the purposes of this subpart and to 
                the innovative assistance described in section 
                4131(b);
                  (B) based on the needs identified in 
                subparagraph (A), sets forth the planned 
                allocation of funds among innovative assistance 
                programs described in section 4131 and 
                describes the programs, projects, and 
                activities designed to carry out such 
                innovative assistance programs that the local 
                educational agency intends to support;
                  (C) contains information setting forth the 
                allocation of such funds required to implement 
                section 4142;
                  (D) describes how assistance under this 
                subpart will contribute to improving student 
                academic achievement;
                  (E) provides assurances of compliance with 
                the provisions of this subpart, including the 
                participation of children enrolled in private, 
                nonprofit schools in accordance with section 
                4142;
                  (F) provides assurance that the local 
                educational agency will keep such records, and 
                provide such information to the State as may be 
                reasonably required for fiscal audit and 
                program evaluation, consistent with the 
                responsibilities of the State under this 
                subpart;
                  (G) provides in the allocation of funds for 
                the assistance authorized by this subpart, and 
                in the design, planning, and implementation of 
                such programs, for systematic consultation with 
                parents of children attending elementary and 
                secondary schools in the area served by the 
                local educational agency, with teachers and 
                administrative personnel in such schools, and 
                with other groups involved in the 
                implementation of this subpart (such as 
                librarians, school counselors, and other pupil 
                services personnel) as may be considered 
                appropriate by the local educational agency; 
                and
                  (H) provides assurance that--
                          (i) programs, services, and 
                        activities will be evaluated annually;
                          (ii) such evaluation will be used to 
                        determine and implement appropriate 
                        changes in program services and 
                        activities for the subsequent year;
                          (iii) such evaluation will describe 
                        how assistance under this subpart 
                        contributed toward improving student 
                        academic achievement; and
                          (iv) such evaluation will be 
                        submitted to the State in the time and 
                        manner requested by the State.
  (b) Time Period to Which Application Relates.--An application 
submitted by a local educational agency under subsection (a) 
may seek allocations under this part for a period of time not 
to exceed 3 fiscal years and may be amended annually as may be 
necessary to reflect changes without the filing of a new 
application.
  (c) Local Educational Agency Discretion.--
          (1) In general.--Subject to the limitations and 
        requirements of this subpart, a local educational 
        agency shall have complete discretion in determining 
        how funds made available under this chapter will be 
        divided among programs and activities described in 
        section 4131.
          (2) Limitation.--In exercising the discretion 
        described in paragraph (1), a local educational agency 
        shall ensure that expenditures under this chapter carry 
        out the purposes of this subpart and are used to meet 
        the educational needs within the schools of such local 
        educational agency.

                     CHAPTER 4--GENERAL PROVISIONS

SEC. 4141. MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY.

  (a) Maintenance of Effort.--
          (1) In general.--Except as provided in paragraph (2), 
        a State is entitled to receive its full allocation of 
        funds under this subpart 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 fiscal year that is 2 
        fiscal years before the fiscal year for which the 
        determination is made.
          (2) Reduction of funds.--The Secretary shall reduce 
        the amount of the allocation of funds under this 
        subpart 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) 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.
  (b) Federal Funds Supplementary.--A State or local 
educational agency may use and allocate funds received under 
this subpart only to supplement and, to the extent practical, 
to increase the level of funds that would, in the absence of 
Federal funds made available under this subpart, be made 
available from non-Federal sources, and in no case may such 
funds be used so as to supplant funds from non-Federal sources.

SEC. 4142. 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 which is eligible to receive funds 
        under this subpart or which serves the area in which a 
        program or project assisted under this subpart is 
        located, who are enrolled in private nonprofit 
        elementary and secondary schools, or with respect to 
        instructional or personnel training programs funded by 
        the State from funds made available for State use, such 
        agency, after consultation with appropriate private 
        school officials--
                  (A) shall provide for the benefit of such 
                children in such schools 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 the repair or minor 
                remodeling of public facilities as may be 
                necessary for their provision (consistent with 
                subsection (c) of this section); or
                  (B) if such services, materials, and 
                equipment are not feasible or necessary in 1 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 subpart.
          (2) Other provisions for services.--If no program or 
        project is carried out under paragraph (1) in the 
        school district of a local educational agency, the 
        State shall make arrangements, such as through 
        contracts with nonprofit agencies or organizations, 
        under which children in private schools in such 
        district are provided with services and materials to 
        the extent that would have occurred if the local 
        educational agency had received funds under this 
        subpart.
          (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 and projects carried out under 
        this subpart by a State 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 pursuant 
        to subsection (a) shall be equal (consistent with the 
        number of children to be served) to expenditures for 
        programs under this subpart 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 
        which relate to the expenditures referred to in 
        paragraph (1), and when funds available to a local 
        educational agency under this subpart are used to 
        concentrate programs or projects on a particular group, 
        attendance area, or grade or age level, children 
        enrolled in private schools who are included within the 
        group, attendance area, 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 or projects.
  (c) Administrative Rules.--
          (1) Funds and property.--The control of funds 
        provided under this subpart, 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 
        subpart, and a public agency shall administer such 
        funds and property.
          (2) Provision of services.--The provision of services 
        pursuant to this subpart shall be provided by employees 
        of a public agency or through contract by such public 
        agency with a person, an association, agency, or 
        corporation who or which, in the provision of such 
        services, is independent of such private school and of 
        any religious organizations, and such employment or 
        contract shall be under the control and supervision of 
        such public agency, and the funds provided under this 
        subpart shall not be commingled with State or local 
        funds.
  (d) Waiver.--
          (1) State prohibition waiver.--If by reason of any 
        provision of law a State or local educational agency is 
        prohibited from providing for the participation in 
        programs of children enrolled in private elementary and 
        secondary schools, as required by this section, the 
        Secretary shall waive such requirements and shall 
        arrange for the provision of services to such children 
        through arrangements which shall be subject to the 
        requirements of this section.
          (2) Failure to comply.--If the Secretary determines 
        that a State 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 and secondary schools as 
        required by this section, the Secretary may waive such 
        requirements and shall arrange for the provision of 
        services to such children through arrangements which 
        shall be subject to the requirements of this section.
  (e) Withholding of 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 allocation of the affected State 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) Term of Determinations.--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 or local educational 
agency to meet the requirements of subsections (a) and (b).
  (g) 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 such services, 
including the administrative costs of arranging for those 
services, from the appropriate allotment of the State under 
this subpart.
  (h) Review.--
          (1) Written objections.--The Secretary shall not take 
        any final action under this section until the State 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) Court action.--If a State 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. The Secretary thereupon shall file in 
        the court the record of the proceedings on which the 
        Secretary based this action, as provided in section 
        2112 of title 28, United States Code.
          (3) Remand to secretary.--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 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 such petition, 
        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 of the United States 
        upon certiorari or certification as provided in section 
        1254 of title 28, United States Code.
  (i) Prior Determination.--Any bypass determination by the 
Secretary under chapter 2 of title I of this Act (as such 
chapter was in effect on the day preceding the date of 
enactment of the Improving America's Schools Act of 1994) 
shall, to the extent consistent with the purposes of this 
title, apply to programs under this title.

SEC. 4143. FEDERAL ADMINISTRATION.

  (a) Technical Assistance.--The Secretary, upon request, shall 
provide technical assistance to States and local educational 
agencies under this subpart.
  (b) Rulemaking.--The Secretary shall issue regulations under 
this subpart only to the extent that such regulations are 
necessary to ensure that there is compliance with the specific 
requirements and assurances required by this subpart.
  (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 
activities under this subpart 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.

SEC. 4144. DEFINITIONS.

  In this subpart, the following definitions apply:
          (1) School-age population.--The term ``school-age 
        population'' means the population aged 5 through 17.
          (2) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.

SEC. 4145. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
subpart $450,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of fiscal years 2003 through 2006.

                       Subpart 2--Arts Education

SEC. 4151. ASSISTANCE FOR ARTS EDUCATION.

  (a) Findings.--The Congress finds that--
          (1) every student can benefit from an education in 
        the arts;
          (2) a growing body of research indicates that 
        education in the arts may provide cognitive benefits 
        and bolster academic achievement, beginning at an early 
        age and continuing through secondary school;
          (3) qualified arts teachers and a sequential 
        curriculum are the basis and core for substantive arts 
        education for students;
          (4) the arts should be taught according to rigorous 
        academic standards under arts education programs that 
        provide mechanisms under which educators are 
        accountable to parents, school officials, and the 
        community;
          (5) opportunities to participate in the arts have 
        enabled individuals with disabilities of all ages to 
        participate more fully in school and community 
        activities; and
          (6) arts education is a valuable part of the 
        elementary and secondary school curriculum.
  (b) Purposes.--The purposes of this subpart are to--
          (1) support systemic education reform by 
        strengthening arts education as an integral part of the 
        elementary and secondary school curriculum; and
          (2) help ensure that all students meet challenging 
        State academic content standards and challenging State 
        student academic achievement standards in the arts.
  (c) Authority.--In accordance with this subpart, the 
Secretary may make grants to, or enter into contracts or 
cooperative agreements with, eligible entities described in 
subsection (d).
  (d) Eligible Entities.--The Secretary may make assistance 
available under subsection (c) to each of the following 
entities:
          (1) States.
          (2) Local educational agencies.
          (3) Institutions of higher education.
          (4) Museums or other cultural institutions.
          (5) Any other public or private agencies, 
        institutions, and organizations.
  (e) Use of Funds.--Assistance made available under this 
subpart may be used only for--
          (1) research on arts education;
          (2) planning, developing, acquiring, expanding, 
        improving, or disseminating model school-based arts 
        education programs;
          (3) the development of model State arts education 
        assessments based on State academic 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, arts educators, and 
        organizations representing the arts, including State 
        and local arts agencies involved in arts education;
          (7) supporting model projects or programs in the 
        performing arts for children and youth or programs 
        which assure the participation in mainstream settings 
        in arts and education programs of individuals with 
        disabilities through arrangements made with 
        organizations such as the John F. Kennedy Center for 
        the Performing Arts and VSA arts;
          (8) supporting model projects or programs to 
        integrate arts education into the regular elementary 
        and secondary school curriculum; or
          (9) other activities that further the purposes of 
        this subpart.
  (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 part, 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.
  (h) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this subpart such sums as may be 
necessary for each of fiscal years 2002 through 2006.

                Subpart 3--Gifted and Talented Children

SEC. 4161. SHORT TITLE.

  This subpart may be cited as the ``Jacob K. Javits Gifted and 
Talented Students Education Act of 2001''.

SEC. 4162. FINDINGS AND PURPOSE.

  (a) Findings.--Congress finds the following:
          (1) While the families and communities of some gifted 
        and talented students can provide private educational 
        programs with appropriately trained staff to supplement 
        public educational offerings, most gifted and talented 
        students, especially those from inner cities, rural 
        communities, or low-income families, must rely on the 
        services and personnel available in public schools. In 
        order to ensure that there are equal educational 
        opportunities for all gifted and talented students in 
        the United States, the public schools should provide 
        gifted and talented education programs carried out by 
        qualified professionals.
          (2) Due to the wide dispersal of students who are 
        gifted and talented and the national interest in a 
        well-educated populace, it is the Federal Government 
        that can most effectively and appropriately conduct 
        scientifically based research and development to ensure 
        that there is a national capacity to educate students 
        who are gifted and talented in the 21st century.
          (3) Many State and local educational agencies lack 
        the specialized resources and trained personnel 
        necessary to consistently plan and implement effective 
        programs for the identification of gifted and talented 
        students and for the provision of educational services 
        and programs appropriate for the needs of such 
        students.
          (4) Because gifted and talented students are 
        generally more advanced academically, are generally 
        able to learn more quickly, and generally study in more 
        depth and complexity than others their age, they 
        require educational opportunities and experiences that 
        are different from those usually available to other 
        students.
          (5) A typical elementary school student who is 
        academically gifted and talented has already mastered 
        35 to 50 percent of the content to be learned in 
        several subjects in any school year before that year 
        begins. Without an advanced and challenging curriculum, 
        such a student may lose motivation and develop poor 
        study habits that are difficult to break.
          (6) Classes in elementary and secondary schools in 
        the United States consist of students with a wide 
        variety of traits, characteristics, and needs. Although 
        most teachers receive some training to meet the needs 
        of students with limited English proficiency, students 
        with disabilities, and students from diverse cultural 
        and racial backgrounds, few receive training to meet 
        the needs of students who are gifted and talented.
  (b) 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 and secondary schools nationwide to meet the special 
educational needs of gifted and talented students.

SEC. 4163. 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. 4164. AUTHORIZED PROGRAMS.

  (a) Establishment of Program.--
          (1) In general.--From the sums available to carry out 
        this subpart in any fiscal year, the Secretary (after 
        consultation with experts in the field of the education 
        of gifted and talented students) shall 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 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.--
                  (A) In general.--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.
                  (B) Contents.--Each application submitted 
                under this paragraph shall describe how--
                          (i) the proposed gifted and talented 
                        services, materials, and methods can be 
                        adapted, if appropriate, for use by all 
                        students; and
                          (ii) 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) Professional development (including fellowships) 
        for personnel (including leadership personnel) involved 
        in the education of gifted and talented students.
          (3) Establishment and operation of 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, including 
        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) 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.
  (c) Establishment of National Center.--
          (1) In general.--The Secretary (after consultation 
        with experts in the field of the education of gifted 
        and talented students) shall establish a National 
        Center for Research and Development in 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 paragraph (1) of subsection 
        (b).
          (2) Director.--The National Center established under 
        paragraph (1) 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 or local educational agencies, or 
        other public or private agencies and organizations.
  (d) Limitation.--Not more than 30 percent of the funds 
available in any fiscal year to carry out the programs and 
projects authorized by this section may be used to conduct 
activities pursuant to subsection (b)(1) or subsection (c).
  (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. 4165. 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 
        who may not be identified and served through 
        traditional assessment methods (including economically 
        disadvantaged individuals, individuals of limited 
        English proficiency, and individuals with 
        disabilities).
  (b) Service Priority.--In approving applications for 
assistance under section 4164(a)(2), the Secretary shall ensure 
that in each fiscal year not less than 50 percent of the 
applications approved under such section address the priority 
described in subsection (a)(2) of this section.

SEC. 4166. 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 and secondary 
schools, including the participation of teachers and other 
personnel in professional development programs serving such 
children.
  (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 and local 
        educational agencies and other appropriate 
        organizations, including nonprofit private 
        organizations; and
          (3) evaluate the effectiveness of programs under this 
        subpart in accordance with section 8651, both 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 
        the Congress not later than 2 years after the date of 
        the 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; and
          (3) assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying 
        research priorities which reflect the needs of gifted 
        and talented students.

SEC. 4167. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
subpart such sums as may be necessary for each of fiscal years 
2002 through 2006.

                     PART B--PUBLIC CHARTER SCHOOLS

SEC. 4201. FINDINGS AND PURPOSE.

  (a) Findings.--The Congress finds that--
          (1) enhancement of parent and student choices among 
        public schools can assist in promoting comprehensive 
        educational reform and give more students the 
        opportunity to meet challenging State academic content 
        standards and State student academic achievement 
        standards, if sufficiently diverse and high-quality 
        choices, and genuine opportunities to take advantage of 
        such choices, are available to all students;
          (2) useful examples of such choices can come from 
        States and communities that experiment with methods of 
        offering teachers and other educators, parents, and 
        other members of the public the opportunity to design 
        and implement new public schools and to transform 
        existing public schools;
          (3) charter schools are a mechanism for testing a 
        variety of educational approaches and should, 
        therefore, be exempted from restrictive rules and 
        regulations if the leadership of such schools commits 
        to attaining specific and ambitious educational results 
        for educationally disadvantaged students consistent 
        with challenging State academic content standards and 
        State student academic achievement standards for all 
        students;
          (4) charter schools can embody the necessary mixture 
        of enhanced choice, exemption from restrictive 
        regulations, and a focus on learning gains;
          (5) charter schools, including charter schools that 
        are schools-within-schools, can help reduce school 
        size, and this reduction can have a significant effect 
        on student achievement;
          (6) the Federal Government should test, evaluate, and 
        disseminate information on a variety of charter school 
        models in order to help demonstrate the benefits of 
        this promising educational reform; and
          (7) there is a strong documented need for cash-flow 
        assistance to charter schools that are starting up, 
        because State and local operating revenue streams are 
        not immediately available.
  (b) Purpose.--It is the purpose of this part 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 achievement, staff, 
        and parents; and
          (3) expanding the number of high-quality charter 
        schools available to students across the Nation.

SEC. 4202. PROGRAM AUTHORIZED.

  (a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to 
section 4203 to enable such agencies to conduct a charter 
school grant program in accordance with this part.
  (b) Special Rule.--If a State educational agency elects not 
to participate in the program authorized by this part or does 
not have an application approved under section 4203, the 
Secretary may award a grant to an eligible applicant that 
serves such State and has an application approved pursuant to 
section 4203(c).
  (c) Program Periods.--
          (1) Grants to states.--Grants awarded to State 
        educational agencies under this part shall be awarded 
        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 part shall be awarded 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 
                4204(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 part 
        from any funds appropriated under section 4211, 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) is 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 academic 
        performance 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 part.
                  (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.
                  (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 part 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. 4203. APPLICATIONS.

  (a) Applications From State Agencies.--Each State educational 
agency desiring a grant from the Secretary under this part 
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 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
                          (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 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 applicant will 
                cooperate with the Secretary and the State 
                educational agency in evaluating the program 
                assisted under this part;
                  (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 4202(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) Contents of Eligible Applicant Application.--Each 
eligible applicant desiring a grant pursuant to section 4202(b) 
shall submit an application to the State educational agency or 
Secretary, respectively, at such time, in such manner, and 
accompanied by such information as the State educational agency 
or Secretary, respectively, may reasonably require.
  (d) Contents of Application.--Each application submitted 
pursuant to subsection (c) shall contain--
          (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 4204(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 this requirement 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. 4204. ADMINISTRATION.

  (a) Selection Criteria for State Educational Agencies.--The 
Secretary shall award grants to State educational agencies 
under this part on the basis of the quality of the applications 
submitted under section 4203(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 to achieving State 
        academic content standards and State student academic 
        achievement standards and, in general, a State's 
        education improvement plan;
          (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 part in the State; and
          (7) in the case of State educational agencies that 
        propose to use grant funds to support dissemination 
        activities under section 4202(c)(2)(C), 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 
part on the basis of the quality of the applications submitted 
under section 4203(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;
          (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 section 4202(c)(2)(C), 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 part, shall use a peer 
review process to review applications for assistance under this 
part.
  (d) Diversity of Projects.--The Secretary and each State 
educational agency receiving a grant under this part, shall 
award subgrants under this part 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 
4210(1), if--
          (1) the waiver is requested in an approved 
        application under this part; and
          (2) the Secretary determines that granting such a 
        waiver will promote the purpose of this part.
  (f) Use of Funds.--
          (1) State educational agencies.--Each State 
        educational agency receiving a grant under this part 
        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 part, 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 part.
          (3) Allowable activities.--An eligible applicant 
        receiving a grant or subgrant under this part 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
                  (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.--Each State educational 
        agency receiving a grant pursuant to this part may 
        reserve not more than 5 percent of such grant funds for 
        administrative expenses associated with the charter 
        school grant program assisted under this part. A local 
        educational agency may not deduct funds for 
        administrative fees or expenses from a subgrant awarded 
        to an eligible applicant.
          (5) Revolving loan funds.--Each State educational 
        agency receiving a grant pursuant to this part may 
        reserve not more than 10 percent of the grant amount 
        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 part, under 
        such terms as may be determined by the State 
        educational agency, for the initial operation of the 
        charter school grant program of such recipient 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 part, whether or not the 
                charter school has applied for or received 
                funds under this part 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, 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, academic assessments, and 
                        other materials that promote increased 
                        student academic 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 academic achievement in 
                        other schools.
  (g) Tribally Controlled Schools.--Each State that receives a 
grant under this part 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. 4205. 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 part, 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 part;
                  (B) assistance to applicants for assistance 
                under this part with the preparation of 
                applications under section 4203;
                  (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.
  (b) Construction.--Nothing in this section shall be construed 
to require charter schools to collect any data described in 
subsection (a).

SEC. 4206. 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 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. 4207. 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 part, 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 (20 U.S.C. 1400 et seq.), or any other program 
administered by the Secretary that provides education funds to 
charter schools or regulates the activities of charter schools.

SEC. 4208. 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 (20 U.S.C. 1401(11)), are 
transferred to a charter school upon the transfer of the 
student to the charter school, to another public school upon 
the transfer of the student from a charter school to another 
public school, and to a private school upon the transfer of the 
student from a charter or public school to the private school 
(with the written consent of a parent of the student), in 
accordance with applicable State law.

SEC. 4209. PAPERWORK REDUCTION.

  To the extent practicable, the Secretary and each authorized 
public chartering agency shall ensure that implementation of 
this part results in a minimum of paperwork for any eligible 
applicant or charter school.

SEC. 4210. DEFINITIONS.

  As used in this part:
          (1) 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 exempted 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;
                  (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, or in another 
                nondiscriminatory manner consistent with State 
                law, 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 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 academic achievement will be measured 
                in charter schools pursuant to State academic 
                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) 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) The term ``eligible applicant'' means a developer 
        that has--
                  (A) applied to an authorized public 
                chartering authority; and
                  (B) provided adequate and timely notice to 
                that authority under section 4203(d)(3).
          (4) 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. 4211. AUTHORIZATION OF APPROPRIATIONS.

  For the purpose of carrying out this part, there are 
authorized to be appropriated $225,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years.

     PART C--MAGNET SCHOOLS ASSISTANCE; WOMEN'S EDUCATIONAL EQUITY

                  Subpart 1--Magnet Schools Assistance

SEC. 4301. FINDINGS.

  The Congress finds as follows:
          (1) Magnet schools are a significant part of the 
        Nation's efforts to achieve voluntary desegregation in 
        our 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 quality education that 
                will prepare them to function well in a highly 
                competitive economy;
                  (C) to maximize the ability of local 
                educational agencies to plan, develop, 
                implement, and continue effective and 
                innovative magnet schools that contribute to 
                State and local systemic reform; and
                  (D) to ensure that grant recipients provide 
                adequate data that demonstrate an ability to 
                improve student academic achievement.

SEC. 4302. STATEMENT OF 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--
          (1) the elimination, reduction, or prevention of 
        minority group isolation in elementary and secondary 
        schools with substantial proportions of minority 
        students;
          (2) the development and implementation of magnet 
        school projects 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 and 
        secondary schools and educational programs; and
          (4) courses of instruction within magnet schools that 
        will substantially strengthen the knowledge of academic 
        subjects and the grasp of tangible and marketable 
        vocational and technical skills of students attending 
        such schools.

SEC. 4303. PROGRAM AUTHORIZED.

  The Secretary, in accordance with this part, is authorized to 
make 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. 4304. DEFINITION.

  For the purpose of this part, the term ``magnet school'' 
means a public elementary or secondary school or public 
elementary or secondary education center that offers a special 
curriculum capable of attracting substantial numbers of 
students of different racial backgrounds.

SEC. 4305. ELIGIBILITY.

  A local educational agency, or consortium of such agencies 
where appropriate, is eligible to receive assistance 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 and secondary schools of such 
        agency; or
          (2) without having been required to do so, has 
        adopted and is implementing, or will, if assistance is 
        made available to such local educational agency or 
        consortium of such agencies under this part, adopt and 
        implement a plan that has been approved 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. 4306. APPLICATIONS AND REQUIREMENTS.

  (a) Applications.--An eligible local educational agency, or 
consortium of such agencies, desiring to receive assistance 
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 such application shall 
include--
          (1) a description of--
                  (A) how assistance made available under this 
                part will be used to promote desegregation, 
                including how the proposed magnet school 
                project will increase interaction among 
                students of different social, economic, ethnic, 
                and racial backgrounds;
                  (B) the manner and extent to which the magnet 
                school project will increase student academic 
                achievement in the instructional area or areas 
                offered by the school;
                  (C) how an applicant will continue the magnet 
                school project after assistance under this part 
                is no longer available, including, if 
                applicable, an explanation of why magnet 
                schools established or supported by the 
                applicant with funds under this part cannot be 
                continued without the use of funds under this 
                part;
                  (D) how funds under this part will be used to 
                improve student academic performance for all 
                students attending the magnet schools; and
                  (E) the criteria to be used in selecting 
                students to attend the proposed magnet school 
                projects; and
          (2) assurances that the applicant will--
                  (A) use funds under this part for the purpose 
                specified in section 4302;
                  (B) employ fully 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 agency 
                        or other personnel for whom the agency 
                        has any administrative responsibility;
                          (ii) the assignment of students to 
                        schools, or to courses of instruction 
                        within the school, of such agency, 
                        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 
                projects equitable consideration for placement 
                in those projects.

SEC. 4307. PRIORITY.

  In approving applications 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 an approved desegregation plan and the 
        projects for which assistance is sought;
          (2) propose to carry out new magnet school projects, 
        or significantly revise existing magnet school 
        projects; and
          (3) propose to select students to attend magnet 
        school projects by methods such as lottery, rather than 
        through academic examination.

SEC. 4308. 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 thereof, necessary for the conduct of 
        programs in magnet schools;
          (3) for the payment, or subsidization of the 
        compensation, of elementary and secondary school 
        teachers who are fully qualified, and instructional 
        staff where applicable, who are necessary for the 
        conduct of 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 project 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; and
          (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.
  (b) Special Rule.--Grant funds under this part may be used in 
accordance with paragraphs (2) and (3) of subsection (a) only 
if the activities described in such paragraphs are directly 
related to improving the students' academic performance based 
on the State's challenging academic content standards and 
student academic achievement standards or directly related to 
improving the students' reading skills or knowledge of 
mathematics, science, history, geography, English, foreign 
languages, art, or music, or to improving vocational and 
technical skills.

SEC. 4309. PROHIBITIONS.

  (a) Transportation.--Grants under this part may not be used 
for transportation or any activity that does not augment 
academic improvement.
  (b) Planning.--A local educational agency shall not expend 
funds under this part after the third year that such agency 
receives funds under this part for such project.

SEC. 4310. LIMITATIONS.

  (a) Duration of Awards.--A grant under this part shall be 
awarded for a period that shall not exceed three fiscal years.
  (b) Limitation on Planning Funds.--A local educational agency 
may expend for planning not more than 50 percent of the funds 
received under this part for the first year of the project, 15 
percent of such funds for the second such year, and 10 percent 
of such funds for the third such year.
  (c) Amount.--No local educational agency or consortium 
awarded a grant under this part shall receive more than 
$4,000,000 under this part in any one fiscal year.
  (d) 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. 4311. EVALUATIONS.

  (a) Reservation.--The Secretary may reserve not more than 2 
percent of the funds appropriated under section 4312(a) for any 
fiscal year to carry out evaluations, technical assistance, and 
dissemination projects with respect to magnet school projects 
and 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 quality education;
          (3) the extent to which magnet school programs lead 
        to the elimination, reduction, or prevention of 
        minority group isolation in elementary 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.

SEC. 4312. 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 4 succeeding fiscal years.
  (b) Availability of Funds for Grants to Agencies Not 
Previously Assisted.--In any fiscal year for which the amount 
appropriated pursuant to subsection (a) exceeds $75,000,000, 
the Secretary shall give priority to using such amounts in 
excess of $75,000,000 to award 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 B] Subpart 2--Women's Educational Equity

SEC. [5201] 4321. SHORT TITLE; FINDINGS.

  [(a) Short Title.--This part may be cited as the ``Women's 
Educational Equity Act of 1994''.]
  (a) Short Title.--This subpart may be cited as the ``Women's 
Educational Equity Act of 2001''.

           *       *       *       *       *       *       *

SEC. [5202] 4322. STATEMENT OF PURPOSES.

  It is the purpose of this [part] 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. [5203] 4323. 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 [part] subpart.
  (b) Grants Authorized.--
          (1) In general.--The Secretary is authorized to make 
        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 four years, to--
                  (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 [part] 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
                          (xiii) planning, development and 
                        initial implementation of--
                                  (I) comprehensive 
                                institution- 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 and local 
                                educational agencies and 
                                institutions of higher 
                                education; including community 
                                colleges; and
                                  (III) innovative approaches 
                                to school-community 
                                partnerships for educational 
                                equity. \1\
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    \1\ So in law. Period probably should be a semicolon.
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                  (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 [part] 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.

SEC. [5204] 4324. APPLICATIONS.

  An application under this [part] subpart shall--
          (1) set forth policies and procedures that will 
        ensure a comprehensive evaluation of the activities 
        assisted under this [part] 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) where appropriate, demonstrate how funds received 
        under this [part] subpart will be used to promote the 
        attainment of one or more of the National Education 
        Goals;
          (3) demonstrate how the applicant will address 
        perceptions of gender roles based on cultural 
        differences or stereotypes;
          (4) where appropriate, describe how funds under this 
        [part] subpart will be used in a manner that is 
        consistent with programs under the School-to-Work 
        Opportunities Act of 1994;
          (5) for applications for assistance under section 
        [5203(b)] 4423(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;
          (6) for applications for assistance under section 
        [5203(b)] 4423(b)(1), demonstrate how parental 
        involvement in the project will be encouraged; and
          (7) for applications for assistance under section 
        [5203(b)] 4423(b)(1), describe plans for continuation 
        of the activities assisted under this [part] subpart 
        with local support following completion of the grant 
        period and termination of Federal support under this 
        [part] subpart.

SEC. [5205] 4325. 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 [5203(b)] 4423(b) to 
        ensure that funds under this [part] subpart are used 
        for programs that most effectively will achieve the 
        purposes of this [part] subpart.
          (2) Criteria.--The criteria described in subsection 
        (a) may include the extent to which the activities 
        assisted under this [part] 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 [part] subpart has 
                terminated.
  (b) Priorities.--In approving applications under this [part] 
subpart, the Secretary may give special consideration to 
applications--
          (1) submitted by applicants that have not received 
        assistance under this [part] subpart or under part C of 
        title IX of this Act (as such part was in effect on 
        October 1, 1988);
          (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 
                [part] 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 [part] 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 
[part] 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 [part] subpart shall be 
construed as prohibiting men and boys from participating in any 
programs or activities assisted with funds under this [part] 
subpart.

SEC. [5206] 4326. REPORT.

  The Secretary, not later than January 1, [1999] 2005, shall 
submit to the President and the Congress a report on the status 
of educational equity for girls and women in the Nation.

SEC. [5207] 4327. ADMINISTRATION.

  (a) Evaluation and Dissemination.--The Secretary shall 
evaluate in accordance with section [14701,] 8651, and 
disseminate, materials and programs developed under this [part] 
subpart and shall report to the Congress regarding such 
evaluation materials and programs not later than January 1, 
[1998] 2004.
  (b) Program Operations.--The Secretary shall ensure that the 
activities assisted under this [part] subpart are administered 
within the Department by a person who has recognized 
professional qualifications and experience in the field of 
gender equity education.

SEC. [5208] 4328. AUTHORIZATION OF APPROPRIATIONS.

  For the purpose of carrying out this [part] subpart, there 
are authorized to be appropriated [$5,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the four 
succeeding fiscal years,] $3,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of the four succeeding 
fiscal years, of which not less than two-thirds of the amount 
appropriated under this section for each fiscal year shall be 
available to carry out the activities described in section 
[5203(b)] 4423(b)(1).

                       [TITLE V--PROMOTING EQUITY

                   [PART A--MAGNET SCHOOLS ASSISTANCE

[SEC. 5101. FINDINGS.

  [The Congress finds that--
          [(1) magnet schools are a significant part of our 
        Nation's effort to achieve voluntary desegregation in 
        our Nation's schools;
          [(2) the use of magnet schools has increased 
        dramatically since the date of enactment of the Magnet 
        Schools Assistance program, with approximately 
        1,400,000 students nationwide now attending such 
        schools, of which more than 60 percent of the students 
        are nonwhite;
          [(3) magnet schools offer a wide range of distinctive 
        programs that have served as models for school 
        improvement efforts;
          [(4) in administering the Magnet Schools Assistance 
        program, the Federal Government has learned that--
                  [(A) where magnet programs are implemented 
                for only a portion of a school's student body, 
                special efforts must be made to discourage the 
                isolation of--
                          [(i) magnet school students from 
                        other students in the school; and
                          [(ii) students by racial 
                        characteristics;
                  [(B) local educational agencies can maximize 
                their effectiveness in achieving the purposes 
                of the Magnet Schools Assistance program if 
                such agencies have more flexibility in the 
                administration of such program in order to 
                serve students attending a school who are not 
                enrolled in the magnet school program;
                  [(C) local educational agencies must be 
                creative in designing magnet schools for 
                students at all academic levels, so that school 
                districts do not skim off only the highest 
                achieving students to attend the magnet 
                schools;
                  [(D) consistent with desegregation 
                guidelines, local educational agencies must 
                seek to enable participation in magnet school 
                programs by students who reside in the 
                neighborhoods where the programs operate; and
                  [(E) in order to ensure that magnet schools 
                are sustained after Federal funding ends, the 
                Federal Government must assist school districts 
                to improve their capacity to continue to 
                operate magnet schools at a high level of 
                performance; and
          [(5) it is in the best interest of the Federal 
        Government to--
                  [(A) continue the Federal Government's 
                support of school districts implementing court-
                ordered desegregation plans and school 
                districts seeking to foster meaningful 
                interaction among students of different racial 
                and ethnic backgrounds, beginning at the 
                earliest stage of such students' education;
                  [(B) ensure that all students have equitable 
                access to quality education that will prepare 
                such students to function well in a culturally 
                diverse, technologically oriented, and highly 
                competitive, global community; and
                  [(C) maximize the ability of local 
                educational agencies to plan, develop, 
                implement and continue effective and innovative 
                magnet schools that contribute to State and 
                local systemic reform.

[SEC. 5102. STATEMENT OF 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--
          [(1) the elimination, reduction, or prevention of 
        minority group isolation in elementary and secondary 
        schools with substantial proportions of minority 
        students;
          [(2) the development and implementation of magnet 
        school projects that will assist local educational 
        agencies in achieving systemic reforms and providing 
        all students the opportunity to meet challenging State 
        content standards and challenging State student 
        performance standards;
          [(3) the development and design of innovative 
        educational methods and practices; and
          [(4) courses of instruction within magnet schools 
        that will substantially strengthen the knowledge of 
        academic subjects and the grasp of tangible and 
        marketable vocational skills of students attending such 
        schools.

[SEC. 5103. PROGRAM AUTHORIZED.

  [The Secretary, in accordance with this part, is authorized 
to make 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. 5104. DEFINITION.

  [For the purpose of this part, the term ``magnet school'' 
means a public elementary or secondary school or public 
elementary or secondary education center that offers a special 
curriculum capable of attracting substantial numbers of 
students of different racial backgrounds.

[SEC. 5105. ELIGIBILITY.

  [A local educational agency, or consortium of such agencies 
where appropriate, is eligible to receive assistance under this 
part to carry out the purposes 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 and secondary schools of such 
        agency; or
          [(2) without having been required to do so, has 
        adopted and is implementing, or will, if assistance is 
        made available to such local educational agency or 
        consortium of such agencies under this part, adopt and 
        implement a plan that has been approved 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. 5106. APPLICATIONS AND REQUIREMENTS.

  [(a) Applications.--An eligible local educational agency or 
consortium of such agencies desiring to receive assistance 
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 such application shall 
include--
          [(1) a description of--
                  [(A) how assistance made available under this 
                part will be used to promote desegregation, 
                including how the proposed magnet school 
                project will increase interaction among 
                students of different social, economic, ethnic, 
                and racial backgrounds;
                  [(B) the manner and extent to which the 
                magnet school project will increase student 
                achievement in the instructional area or areas 
                offered by the school;
                  [(C) how an applicant will continue the 
                magnet school project after assistance under 
                this part is no longer available, including, if 
                applicable, an explanation of why magnet 
                schools established or supported by the 
                applicant with funds under this part cannot be 
                continued without the use of funds under this 
                part;
                  [(D) how funds under this part will be used 
                to implement services and activities that are 
                consistent with other programs under this Act, 
                the Goals 2000: Educate America Act, and other 
                Acts, as appropriate, in accordance with the 
                provisions of section 14306; and
                  [(E) the criteria to be used in selecting 
                students to attend the proposed magnet school 
                projects; and
          [(2) assurances that the applicant will--
                  [(A) use funds under this part for the 
                purposes specified in section 5102;
                  [(B) employ State certified or licensed 
                teachers in the courses of instruction assisted 
                under this part to teach or supervise others 
                who are teaching the subject matter of the 
                courses of instruction;
                  [(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 agency 
                        or other personnel for whom the agency 
                        has any administrative responsibility;
                          [(ii) the assignment of students to 
                        schools, or to courses of instruction 
                        within the school, of such agency, 
                        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 
                projects equitable consideration for placement 
                in those projects.
  [(c) Special Rule.--No application may be approved under this 
section unless the Assistant Secretary of Education for Civil 
Rights determines that the assurances described in subsection 
(b)(2)(C) will be met.

[SEC. 5107. PRIORITY.

  [In approving applications 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 an approved desegregation plan and the 
        projects for which assistance is sought;
          [(2) propose to carry out new magnet school projects, 
        or significantly revise existing magnet school 
        projects;
          [(3) propose to select students to attend magnet 
        school projects by methods such as lottery, rather than 
        through academic examination;
          [(4) propose to implement innovative educational 
        approaches that are consistent with the State's and 
        local educational agency's approved systemic reform 
        plans, if any, under title III of the Goals 2000: 
        Educate America Act; and
          [(5) propose to draw on comprehensive community 
        involvement plans.

[SEC. 5108. 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 thereof, necessary for the conduct of 
        programs in magnet schools;
          [(3) for the payment, or subsidization of the 
        compensation, of elementary and secondary school 
        teachers who are certified or licensed by the State, 
        and instructional staff where applicable, who are 
        necessary for the conduct of programs in magnet 
        schools; and
          [(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 project to students who are 
                enrolled in the school but who are not enrolled 
                in the magnet school program; and
                  [(B) further the purposes of this part.
  [(b) Special Rule.--Grant funds under this part may be used 
in accordance with paragraphs (2) and (3) of subsection (a) 
only if the activities described in such paragraphs are 
directly related to improving the students' reading skills or 
knowledge of mathematics, science, history, geography, English, 
foreign languages, art, or music, or to improving vocational 
skills.

[SEC. 5109. PROHIBITIONS.

  [(a) Transportation.--Grants under this part may not be used 
for transportation or any activity that does not augment 
academic improvement.
  [(b) Planning.--A local educational agency shall not expend 
funds under this part after the third year that such agency 
receives funds under this part for such project.

[SEC. 5110. LIMITATIONS.

  [(a) Duration of Awards.--A grant under this part shall be 
awarded for a period that shall not exceed three fiscal years.
  [(b) Limitation on Planning Funds.--A local educational 
agency may expend for planning not more than 50 percent of the 
funds received under this part for the first year of the 
project, 15 percent of such funds for the second such year, and 
10 percent of such funds for the third such year.
  [(c) Amount.--No local educational agency or consortium 
awarded a grant under this part shall receive more than 
$4,000,000 under this part in any one fiscal year.
  [(d) Timing.--To the extent practicable, the Secretary shall 
award grants for any fiscal year under this part not later than 
June 1 of the applicable fiscal year.

[SEC. 5111. INNOVATIVE PROGRAMS.

  [(a) In General.--From amounts reserved under subsection (d) 
for each fiscal year, the Secretary shall award grants to local 
educational agencies or consortia of such agencies described in 
section 5105 to enable such agencies or consortia to conduct 
innovative programs that--
          [(1) carry out the purpose of this part; and
          [(2) involve strategies other than magnet schools, 
        such as neighborhood or community model schools--
                  [(A) organized around a special emphasis, 
                theme or concept; and
                  [(B) involving extensive parent and community 
                involvement.
  [(b) Applicability.--Sections 5103, 5106, 5107, and 5108, 
shall not apply to grants awarded under subsection (a).
  [(c) Applications.--Each local educational agency or 
consortia of such agencies desiring a grant under this section 
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.
  [(d) Innovative Programs.--The Secretary shall reserve not 
more than 5 percent of the funds appropriated under section 
5113(a) for each fiscal year to award grants under this 
section.

[SEC. 5112. EVALUATIONS.

  [(a) Reservation.--The Secretary may reserve not more than 
two percent of the funds appropriated under section 5113(a) for 
any fiscal year to carry out evaluations of projects 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 quality education;
          [(3) the extent to which magnet school programs lead 
        to the elimination, reduction, or prevention of 
        minority group isolation in elementary 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.

[SEC. 5113. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

  [(a) Authorization.--For the purpose of carrying out this 
part, there are authorized to be appropriated $120,000,000 for 
fiscal year 1995 and such sums as may be necessary for each of 
the 4 succeeding fiscal years.
  [(b) Availability of Funds for Grants to Agencies Not 
Previously Assisted.--In any fiscal year for which the amount 
appropriated pursuant to subsection (a) exceeds $75,000,000, 
the Secretary shall give priority to using such amounts in 
excess of $75,000,000 to award 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 C--ASSISTANCE TO ADDRESS SCHOOL DROPOUT PROBLEMS

[SEC. 5301. SHORT TITLE.

  [This part may be cited as the ``School Dropout Assistance 
Act''.

[SEC. 5302. PURPOSE.

  [The purpose of this part is to reduce the number of children 
who do not complete their elementary and secondary education by 
providing grants to local educational agencies to establish--
          [(1) effective programs to identify potential student 
        dropouts, including pregnant and parenting teenagers, 
        and prevent such students from dropping out of school;
          [(2) effective programs to identify and encourage 
        children who have already dropped out to reenter school 
        and complete their elementary and secondary education;
          [(3) effective early intervention programs designed 
        to identify at-risk students in elementary and 
        secondary schools; and
          [(4) model systems for collecting and reporting 
        information to local school officials on the number, 
        ages, sex, race or ethnicity, and grade levels of the 
        children not completing their elementary and secondary 
        education and the reasons why such children have 
        dropped out of school.

[SEC. 5303. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  [(a) Allotment to Categories of Local Educational Agencies.--
From the amount appropriated under section 5308 for any fiscal 
year, the Secretary shall first reserve not more than 
$2,000,000 for the purposes of evaluating programs carried out 
with assistance under this part in accordance with section 
14701. From the remaining amount, the Secretary shall allot the 
following percentages to each of the following categories of 
local educational agencies:
          [(1) Local educational agencies administering schools 
        with a total enrollment of 100,000 or more elementary 
        and secondary school students shall be allotted 25 
        percent of such remaining amount.
          [(2) Local educational agencies administering schools 
        with a total enrollment of at least 20,000 but less 
        than 100,000 elementary and secondary school students 
        shall be allotted 40 percent of such remaining amount.
          [(3) Local educational agencies administering schools 
        with a total enrollment of less than 20,000 elementary 
        and secondary school students shall be allotted 30 
        percent of such remaining amount. Grants may be made 
        under this paragraph to educational service agencies 
        and consortia of not more than 5 local educational 
        agencies in any case in which the total enrollment of 
        the largest such local educational agency is less than 
        20,000 elementary and secondary students. Such agencies 
        and consortia may also apply for assistance under this 
        part in conjunction with the State educational agency. 
        Not less than 20 percent of funds available under this 
        paragraph shall be awarded to local educational 
        agencies administering schools with a total enrollment 
        of less than 2,000 elementary and secondary school 
        students.
          [(4) Community-based organizations shall be allotted 
        5 percent of such remaining amount. Grants under this 
        paragraph shall be made after consultation between the 
        community-based organization and the local educational 
        agency that is to benefit from such a grant.
  [(b) Special Consideration.--
          [(1) In general.--The Secretary shall give special 
        consideration to awarding funds available for each 
        category described in paragraphs (1), (2), and (3) of 
        subsection (a) to local educational agencies 
        participating in an educational partnership.
          [(2) Educational partnerships.--For the purpose of 
        this part the term ``educational partnerships' means a 
        partnership between--
                  [(A) a local educational agency; and
                  [(B) a business concern or business 
                organization, community-based organization, 
                nonprofit private organization, institution of 
                higher education, State educational agency, 
                State or local public agency, private industry 
                council (established under the Job Training 
                Partnership Act), museum, library, or 
                educational television or broadcasting station.
  [(c) Award of Grant.--
          [(1) In general.--From the amount allotted for any 
        fiscal year to a category of local educational agencies 
        under subsection (a), the Secretary shall award as many 
        grants as practicable within each such category to 
        local educational agencies and educational partnerships 
        whose applications have been approved by the Secretary 
        for such fiscal year under section 5304 and whose 
        applications propose a program of sufficient size, 
        scope, and quality to be effective.
          [(2) Additional funds.--Any local educational agency 
        or educational partnership that has received a grant 
        under this part shall be eligible for additional funds 
        as provided under subsection (d).
          [(3) Terms and conditions.--Grants under this part 
        shall be made under such terms and conditions as the 
        Secretary shall prescribe.
  [(d) Use of Funds When Not Fully Allotted to Categories Under 
Subsection (a).--
          [(1) In general.--Whenever the Secretary determines 
        that the full amount of the sums allotted under any 
        category set forth under subsection (a) will not be 
        required for applications of the local educational 
        agencies in the case of categories described in 
        paragraphs (1), (2), or (3) of subsection (a), the 
        Secretary shall make the amount not so required 
        available to another category under subsection (a). In 
        carrying out the provisions of this subsection, the 
        Secretary shall assure that the transfer of amounts 
        from one category to another is made to a category in 
        which there is the greatest need for funds.
          [(2) Peer review.--In order to transfer funds under 
        this subsection, the Secretary shall use a peer review 
        process to determine that such excess funds are not 
        needed to fund projects in particular categories and 
        shall prepare a list of the categories in which funds 
        were not fully expended and the reasons therefor, and 
        make such list available to local educational agencies 
        and educational partnerships upon request. The 
        Secretary may use the peer review process to determine 
        grant recipients of funds transferred in accordance 
        with this subsection.
  [(e) Federal Share.--
          [(1) Federal share.--The Federal share of a grant 
        under this part may not exceed--
                  [(A) 90 percent of the total cost of a 
                project for the first year for which the 
                project receives assistance under this part; 
                and
                  [(B) 75 percent of such cost in each such 
                succeeding fiscal year.
          [(2) Remaining costs.--The remaining cost of a 
        project that receives assistance under this part may be 
        paid from any source other than funds made available 
        under this part, except that not more than 10 percent 
        of the remaining cost in any fiscal year may be 
        provided from Federal sources other than this part.
          [(3) Non-federal share.--The share of payments from 
        sources other than funds made available under this part 
        may be in cash or in kind fairly evaluated, including 
        plant, equipment or services.

[SEC. 5404. APPLICATION.

  [(a) Application Required.--
          [(1) In general.--A grant under this part may be made 
        only to a local educational agency or an educational 
        partnership which submits an application to the 
        Secretary containing such information as may be 
        required by the Secretary by regulation.
          [(2) Duration.--Each such application shall be for a 
        three-year period.
  [(b) Contents.--Each such application shall--
          [(1) provide documentation of--
                  [(A) the number of children who were enrolled 
                in the schools to be served by the applicant 
                for the five academic years prior to the date 
                application is made who have not completed 
                their elementary or secondary education and who 
                are classified as school dropouts; and
                  [(B) the percentage that such number of 
                children is of the total school-age population 
                in the applicant's schools;
          [(2) include a plan for the development and 
        implementation of a school dropout information 
        collection and reporting system for documenting the 
        extent and nature of the dropout problem, which system 
        shall collect and cross tabulate data, where feasible, 
        by sex according to race or ethnicity and socioeconomic 
        status;
          [(3) include a plan for coordinated activities 
        involving not less than one secondary school and its 
        feeder junior high or middle schools and elementary 
        schools for local educational agencies that have feeder 
        systems;
          [(4) when applicable, describe how programs assisted 
        under this part will be coordinated with, and not 
        duplicate, programs assisted under title I;
          [(5) include a description of how the program 
        assisted under this part is consistent with the second 
        National Education Goal, relating to school completion, 
        and other Federal programs as appropriate; and
          [(6) contain such other information as the Secretary 
        considers necessary to determine the nature of the 
        local needs, the quality of the proposed project, and 
        the capability of the applicant to carry out the 
        project.
  [(c) Priority.--The Secretary shall, in approving 
applications under this section, give priority to applications 
which--
          [(1) demonstrate the replication of successful 
        programs conducted in other local educational agencies 
        or the expansion of successful programs within a local 
        educational agency; and
          [(2) reflect very high numbers or very high 
        percentages of school dropouts in the schools of the 
        applicant in each category described in section 
        5303(a).
  [(d) Special Consideration.--The Secretary shall give 
additional special consideration to applications that include--
          [(1) provisions which emphasize early intervention 
        services designed to identify at-risk students in 
        elementary or early secondary schools; and
          [(2) provisions for significant parental involvement.
  [(e) Grants for New Grantees.--In awarding grants under this 
part the Secretary shall use only the priorities and special 
considerations described in subsections (c) and (d).
  [(f) Continuation of Assistance.--For the two fiscal years 
beginning after the date of enactment of the Improving 
America's Schools Act of 1994, the Secretary shall approve an 
application under this section for a local educational agency 
which received funding in fiscal year 1994 under the School 
Dropout Demonstration Assistance Act of 1988 (20 U.S.C. 3241 et 
seq.) and which--
          [(1) satisfies the requirements of this section;
          [(2) qualifies for special consideration or priority 
        under--
                  [(A) section 5303(b); and
                  [(B) subsections (c) and (d) of this section; 
                and
          [(3) provides evidence that the program for which 
        such agency is seeking assistance is effective in--
                  [(A) providing early intervention services to 
                at-risk students in elementary and secondary 
                schools;
                  [(B) identifying potential student dropouts; 
                and
                  [(C) preventing students from dropping out of 
                school.

[SEC. 5305. AUTHORIZED ACTIVITIES.

  [Grants under this part shall be used to carry out activities 
and services described in applications approved under section 
5304. In addition, grants may be used for educational, 
occupational, and basic skills testing services and activities, 
including--
          [(1) the establishment of systemwide or school-level 
        policies, procedures, and plans for dropout prevention 
        and school reentry;
          [(2) the development and implementation of 
        activities, including extended day or summer programs, 
        designed to address poor achievement, basic skills 
        deficiencies, language deficiencies, or course 
        failures, in order to assist students at risk of 
        dropping out of school and students reentering school, 
        including youth returning to school from a correctional 
        or other facility operated for delinquent youth;
          [(3) the establishment or expansion of work-study, 
        apprentice, or internship programs;
          [(4) the use of resources of the community, including 
        contracting with public or private entities or 
        community-based organizations of demonstrated 
        performance, to provide services to the grant recipient 
        or the target population;
          [(5) the evaluation and revision of program placement 
        of students at risk;
          [(6) the evaluation of program effectiveness of 
        dropout programs;
          [(7) the development and implementation of programs 
        for traditionally underserved groups of students;
          [(8) the implementation of activities which will 
        improve student motivation and the school learning 
        environment;
          [(9) the provision of training for school personnel 
        on strategies and techniques designed to--
                  [(A) identify children at risk of dropping 
                out of school;
                  [(B) intervene in the instructional program 
                for such children with support and remedial 
                services;
                  [(C) develop realistic expectations for 
                student performance; and
                  [(D) improve student-staff interactions;
          [(10) the study of the relationship between drugs and 
        school dropouts and between youth gangs and school 
        dropouts, and the coordination of dropout prevention 
        and reentry programs with appropriate drug prevention 
        and community organizations for the prevention of youth 
        gangs;
          [(11) the study of the relationship between disabling 
        conditions and student dropouts;
          [(12) the study of the relationship between the 
        dropout rate for gifted and talented students compared 
        to the dropout rate for the general student enrollment;
          [(13) the use of educational telecommunications and 
        broadcasting technologies and educational materials 
        designed to extend, motivate, and reinforce school, 
        community, and home dropout prevention and reentry 
        activities;
          [(14) the development and implementation of efforts 
        to identify and address factors in a student's decision 
        to drop out of school that are related to gender and 
        family roles, including activities and services 
        designed to meet the needs of pregnant and parenting 
        teenagers;
          [(15) the provision of other educational, 
        occupational and testing services and activities which 
        directly relate to the purpose of this part;
          [(16) activities which offer jobs and college 
        admissions for successful completion of the program for 
        which assistance is sought;
          [(17) summer employment programs;
          [(18) occupational training programs;
          [(19) career opportunity and skills counseling;
          [(20) job placement services;
          [(21) the development of skill employment competency 
        testing programs;
          [(22) special school staff training projects; and
          [(23) mentoring programs.

[SEC. 5306. DISTRIBUTION OF ASSISTANCE; LIMITATION ON COSTS.

  [(a) Distribution of Assistance.--The Secretary shall ensure 
that, to the extent practicable, in approving grant 
applications under this part--
          [(1) grants are equitably distributed on a geographic 
        basis within each category set forth in section 
        5303(a);
          [(2) the amount of a grant to a local educational 
        agency or an educational partnership for a fiscal year 
        is proportionate to the extent and severity of the 
        local school dropout problem;
          [(3) not less than 30 percent of the amount available 
        for grants in each fiscal year is used for activities 
        relating to school dropout prevention; and
          [(4) not less than 30 percent of the amount available 
        for grants in each fiscal year is used for activities 
        relating to persuading school dropouts to return to 
        school and assisting former school dropouts with 
        specialized services once school dropouts return to 
        school.
  [(b) Administrative Costs.--Not more than five percent of any 
grant made under this part may be used for administrative 
costs.

[SEC. 5307. REPORTS.

  [(a) Annual Reports.--The Secretary shall submit to the 
Congress a report by January 1 of each year, beginning on 
January 1, 1995, which sets forth the progress of the 
Commissioner of Education Statistics, established under section 
403(b) of the National Education Statistics Act of 1994, to 
implement a definition and data collection process for school 
dropouts in elementary and secondary schools, including 
statistical information for the number and percentage of 
elementary and secondary school students by gender, race, and 
ethnic origin who drop out of school each year, including 
dropouts--
          [(1) throughout the Nation by rural and urban 
        location as defined by the Secretary; and
          [(2) in each of the individual States and the 
        District of Columbia.
  [(b) Recommendations.--The report under subsection (a) shall 
also contain recommendations on ways in which the Federal 
Government, States and localities can further support the 
implementation of an effective methodology to accurately 
measure school dropout and retention rates on the national, 
State, and local levels.

[SEC. 5308. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated $50,000,000 for 
fiscal year 1995, and such sums as may be necessary for each of 
the 4 succeeding fiscal years, to carry out this part.]

                     TITLE V--21ST CENTURY SCHOOLS

PART A--SUPPORTING VIOLENCE AND DRUG PREVENTION AND ACADEMIC ENRICHMENT

SEC. 5001. SHORT TITLE.

  This part may be cited as the ``21st Century Schools Act of 
2001''.

SEC. 5002. PURPOSE.

  The purpose of this part is to support programs that prevent 
the use of illegal drugs, prevent violence, provide quality 
before and after school activities and supervision for school 
age youth, involve parents and communities, and are coordinated 
with related Federal, State, and community efforts and 
resources to foster a safe and drug-free learning environment 
in which students increase their 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 drug and violence 
        prevention in elementary and secondary schools;
          (2) States for grants to local educational agencies, 
        community-based organizations, and other public 
        entities and private organizations, for before and 
        after school programs for youth; and
          (3) States and public and private nonprofit and for-
        profit organizations to conduct training, 
        demonstrations, and evaluations.

SEC. 5003. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated--
          (1) $475,000,000 for fiscal year 2002, and such sums 
        as may be necessary for each of the 4 succeeding fiscal 
        years, for State grants under subpart 1;
          (2) $900,000,000 for fiscal year 2002, and such sums 
        as may be necessary for each of the four succeeding 
        fiscal years, for State grants under subpart 2; and
          (3) $60,000,000 for fiscal year 2002, and for each of 
        the 4 succeeding fiscal years, for national programs 
        under subpart 3.

                        Subpart 1--Safe Schools

SEC. 5111. RESERVATIONS AND ALLOTMENTS.

  (a) Reservations.--From the amount made available under 
section 5003(1) to carry out this subpart for each fiscal year, 
the Secretary--
          (1) 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;
          (2) 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;
          (3) shall reserve 0.2 percent of such amount for 
        Native Hawaiians to be used to carry out programs 
        described in this subpart;
          (4) notwithstanding section 3 of the Leave No Child 
        Behind Act of 2001, shall reserve an amount necessary 
        to make continuation grants to grantees under part I of 
        title X of this Act (under the terms of those grants), 
        as such part existed on the day before the effective 
        date of the Leave No Child Behind Act of 2001; and
          (5) notwithstanding section 3 of the Leave No Child 
        Behind Act of 2001, shall reserve an amount necessary 
        to make continuation grants to grantees under the Safe 
        Schools/Healthy Students initiative (under the terms of 
        those grants), as it existed on the day before the date 
        of the effective date of the Leave No Child Behind Act 
        of 2001.
  (b) State Allotments.--
          (1) In general.--Except as provided in paragraph (2), 
        the Secretary, for each fiscal year, shall allocate 
        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 part A of title I 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 one-half of 1 percent of the total amount allotted 
        to all the States under this subsection.
  (c) Reallotment of Unused Funds.--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.
  (d) Definition.--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.

SEC. 5112. RESERVATION OF STATE FUNDS FOR SAFE SCHOOLS.

  (a) State Reservation for the Governor.--
          (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 5111(b) for 
        each fiscal year to award competitive grants and 
        contracts to local educational agencies, community-
        based organizations, and other public entities and 
        private organizations for programs or activities to 
        support community efforts that complement activities of 
        local educational agencies described in section 5115. 
        Such officer shall award grants based on--
                  (A) the quality of the activity or program 
                proposed; and
                  (B) how the program or activity is aligned 
                with the appropriate principles of 
                effectiveness described in section 5114(a).
          (2) Special consideration.--In awarding funds under 
        subparagraph (A), a chief executive officer shall give 
        special consideration to grantees that pursue a 
        comprehensive approach to drug and violence prevention 
        by providing and incorporating mental health services 
        in their programs.
          (3) Administrative costs.--The chief executive 
        officer of a State may use not more than 1 percent of 
        the amount described in subparagraph (A) for the 
        administrative costs incurred in carrying out the 
        duties of such officer under this section.
  (b) State Funds.--
          (1) Additional reservations.--Each State shall 
        reserve an amount equal to the total amount allotted to 
        a State under section 5111(b), less the amount reserved 
        under subsection (a) and paragraphs (2) and (3) of this 
        subsection, for each fiscal year for its local 
        educational agencies.
          (2) State activities.--A State may use not more than 
        4 percent of the total amount available under 
        subsection (a) for State activities described in 
        subsection (c).
          (3) State administration.--A State may use not more 
        than 1 percent of the amount made available under 
        subsection (a) for the administrative costs of carrying 
        out its responsibilities under this subpart.
  (c) Activities.--
          (1) In general.--A State shall use a portion of the 
        funds described in subsection (b)(2), either directly, 
        or through grants and contracts, to plan, develop, and 
        implement capacity building, technical assistance, 
        evaluation, program improvement services, and 
        coordination activities for local educational agencies, 
        community-based organizations, other public entities, 
        and private organizations that are designed to support 
        the implementation of programs and activities under 
        this subpart.
          (2) Data collection.--
                  (A) Statistics.--A State may use a portion of 
                the funds, not to exceed 20 percent, described 
                in subsection (b)(2), either directly or 
                through grants and contracts, to establish and 
                implement a statewide system of collecting data 
                regarding statistics on--
                          (i) truancy rates; and
                          (ii) the frequency, seriousness, and 
                        incidence of violence and drug related 
                        offenses resulting in suspensions and 
                        expulsion in elementary and secondary 
                        schools in States.
                  (B) Compilation of statistics.--The 
                statistics shall be compiled in accordance with 
                definitions as determined in the State 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.
                  (C) Reporting.--Such data and statistics 
                shall be reported to the public and shall be 
                reported on a school-by-school basis.
                  (D) Limitation.--Nothing in this subsection 
                shall be construed to authorize the Secretary 
                to require particular policies, procedures, or 
                practices with respect to crimes on school 
                property or school security.
          (3) Safe schools.--The State shall establish and 
        implement a statewide policy requiring that students 
        attending persistently dangerous public elementary and 
        secondary schools, as determined by the State, or who 
        become a victim of a violent criminal offense, as 
        defined 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 or secondary school, within the local 
        educational agency, including a public charter school 
        and allowing payment of reasonable transportation costs 
        and tuition costs for such students.

SEC. 5113. STATE APPLICATION.

  (a) In General.--In order to receive an allotment under 
section 5111 for any fiscal year, a State shall submit to the 
Secretary, at such time as the Secretary may require, an 
application that--
          (1) describes the activities to be funded under 
        section 5112(c);
          (2) describes how activities funded under this 
        subpart will support State academic achievement 
        standards in accordance with section 1111;
          (3) describes how funds under this subpart will be 
        coordinated with programs under this Act, and other 
        programs, as appropriate, in accordance with the 
        provisions of section 8306;
          (4) 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;
          (5) provides an assurance that the State will 
        cooperate with, and assist, the Secretary in conducting 
        data collection as required by section 5116(a);
          (6) provides an assurance that the local educational 
        agencies in the State will comply with the provisions 
        of section 8503 pertaining to the participation of 
        private school children and teachers in the programs 
        and activities under this subpart;
          (7) 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 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;
          (8) describes the results of the State's needs and 
        resources assessment for violence and illegal drug use 
        prevention which shall be based on the results of on-
        going evaluation (which may include data on the 
        incidence and prevalence, age of onset, perception of 
        health risk and perception of social disapproval of 
        violence and illegal drug use by youth in schools and 
        communities and the prevalence of risk and protective 
        factors or other scientifically based research 
        variables in the school and community);
          (9)(A) provides a statement of the State's 
        performance measures for drug and violence prevention 
        programs and activities to be funded under this part 
        that shall be developed in consultation between the 
        State and local officials and that consist of--
                  (i) performance indicators for drug and 
                violence prevention programs and activities; 
                and
                  (ii) levels of performance for each 
                performance indicator;
          (B) a description of the procedures the State will 
        use for assessing and publicly reporting progress 
        toward meeting those performance measures; and
          (C) a plan for monitoring the implementation of, and 
        providing technical assistance regarding, the 
        activities and programs conducted by local educational 
        agencies, community-based organizations, other public 
        entities, and private organizations under this subpart;
          (10) provides an assurance that the State will 
        consult with a representative sample of local 
        educational agencies in the development of the 
        definition of ``persistently dangerous school'' for the 
        purposes of section 5112(c)(3);
          (11) provides a description of how the State defines 
        ``persistently dangerous school'' for the purposes of 
        section 5112(c)(3); and
          (12) provides an assurance that the State application 
        will be available for public review after submission of 
        the application.
  (b) General Approval.--A State application submitted 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 90-day period beginning on the 
date that the Secretary receives the application, that the 
application is in violation of this subpart.
  (c) Disapproval.--The Secretary shall not finally disapprove 
a State application, except after giving the State notice and 
opportunity for a hearing.

SEC. 5114. FORMULA GRANT 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 
        sections 5111 and 5112 to local educational agencies 
        for drug and violence prevention and education 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 to local 
                educational agencies based on the relative 
                enrollments in public and private nonprofit 
                elementary 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 1 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 that a local 
                educational agency receives its allocation--
                          (i) such agency shall return to the 
                        State any funds from such allocation 
                        that remain unobligated; and
                          (ii) the State 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, an amount that exceeds 25 
                        percent of such allocation.
  (b) Eligibility.--To be eligible to receive a subgrant under 
this subpart, a local educational agency desiring a subgrant 
shall submit an application to the State. Such an application 
shall be amended, as necessary, to reflect changes in 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, school 
                personnel, and community organizations with 
                relevant and demonstrated expertise in drug and 
                violence prevention activities, students and 
                parents.
                  (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, 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 
        5115(a).
  (d) Contents of Applications.--
          (1) In general.--An application submitted by a local 
        educational agency under this section shall contain--
                  (A) an assurance that the activities or 
                programs to be funded support State academic 
                achievement goals in accordance with section 
                1111;
                  (B) a detailed explanation of the local 
                educational agency's comprehensive plan for 
                drug and violence prevention, which shall 
                include a description of--
                          (i) how the plan will be coordinated 
                        with programs under this Act, other 
                        Federal, State, and local programs for 
                        drug and violence prevention, in 
                        accordance with the provisions of 
                        section 8306;
                          (ii) 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; and
                                  (II) levels of performance 
                                for each performance indicator;
                          (iii) how such agency will assess and 
                        publicly report progress toward 
                        attaining its performance measures;
                          (iv) 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 
                        5115(a), and the means of evaluating 
                        such activity or program; and
                          (v) how the services will be targeted 
                        to schools and students with the 
                        greatest need;
                  (C) a certification that a meaningful 
                assessment has been conducted to determine 
                community needs (including consultation with 
                community leaders, businesses, and school 
                officials), available resources and capacity in 
                the public and private sector (which may 
                include an analysis based on data reasonably 
                available at the time 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, prevalence of risk and protective 
                factors, buffers or assets, or other 
                scientifically based research variables in the 
                school and community), the findings of such 
                assessments;
                  (D) 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;
                  (E) a description of the mechanisms used to 
                provide effective notice to the community of an 
                intention to submit an application under this 
                title;
                  (F) an assurance that drug prevention 
                programs supported under this part convey a 
                clear and consistent message that the illegal 
                use of drugs is wrong and harmful;
                  (G) an assurance that the local educational 
                agency has established and implemented a 
                student code of conduct policy that clearly 
                states responsibilities of students, teachers, 
                and administrators in maintaining a classroom 
                environment that allows a teacher to 
                communicate effectively with all students in 
                the class, that allows all students in the 
                class to learn, has consequences that are fair 
                and appropriate for violations, and is enforced 
                equitably;
                  (H) an assurance that the application and any 
                waiver request will be available for public 
                review after submission of the application; and
                  (I) such other information and assurances as 
                the State may reasonably require.
          (2) General approval.--A local educational agency's 
        application submitted to the State under this subpart 
        shall be deemed to be approved by the State unless the 
        State makes a written determination, prior to the 
        expiration of the 90-day period beginning on the date 
        that the State receives the application, that the 
        application is in violation of this subpart.
          (3) Disapproval.--The State shall not finally 
        disapprove a local educational agency application, 
        except after giving such agency notice and an 
        opportunity for a hearing.

SEC. 5115. 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 upon an assessment of objective 
                data regarding the incidence of violence and 
                illegal drug use in the elementary and 
                secondary schools and communities to be served, 
                including an objective analysis 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 upon an established set of 
                performance measures aimed at ensuring that the 
                elementary and secondary schools and 
                communities to be served by the program have a 
                drug-free, safe, and orderly learning 
                environment; and
                  (C) be based upon scientifically based 
                research that provides evidence that the 
                program to be used will reduce violence and 
                illegal drug use.
          (2) Periodic evaluation.--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 5114(d)(1)(B)(ii) The results 
        shall be used to refine, improve, and strengthen the 
        program, and to refine the performance measures. The 
        results 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 paragraph 
        (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 5114 to 
        develop, implement, and evaluate comprehensive programs 
        and activities, which are coordinated with other school 
        and community-based services and programs, that shall--
                  (A) support State academic achievement goals 
                in accordance with section 1111;
                  (B) be consistent with the principles of 
                effectiveness described in subsection (a);
                  (C) be designed to--
                          (i) prevent or reduce violence and 
                        illegal drug use, delinquency, serious 
                        discipline problems, and poor academic 
                        achievement and illegal drug use; 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 to 
                        provide behavioral interventions as 
                        part of classroom management efforts; 
                        and
                  (D) include activities to promote the 
                involvement of parents in the activity or 
                program, to promote coordination with community 
                groups and coalitions, and government agencies, 
                and to 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, such as--
                  (A) developmentally appropriate drug and 
                violence prevention programs in both elementary 
                and secondary schools that incorporate a 
                variety of prevention strategies and 
                activities, which may include--
                          (i) teaching students that most 
                        people do not use illegal drugs;
                          (ii) teaching students to recognize 
                        social and peer pressure to use illegal 
                        drugs and the skills for resisting 
                        illegal drug use;
                          (iii) teaching students about the 
                        dangers of emerging drugs;
                          (iv) engaging students in the 
                        learning process;
                          (v) incorporating activities in 
                        secondary schools that reinforce 
                        prevention activities implemented in 
                        elementary schools; and
                          (vi) involving families and 
                        communities in setting clear 
                        expectations against violence and 
                        illegal drug use and enforcing 
                        appropriate consequences for violence 
                        and illegal drug use;
                  (B) training of school personnel and parents 
                in youth drug and violence prevention, 
                including training in early identification, 
                intervention, and prevention of threatening 
                behavior;
                  (C) community-wide strategies for reducing 
                violence and illegal drug use, and illegal gang 
                activity;
                  (D) to the extent that expenditures do not 
                exceed 20 percent of the amount made available 
                to a local educational agency under this 
                subpart, law enforcement and security 
                activities, including--
                          (i) acquisition and installation of 
                        metal detectors;
                          (ii) hiring and training of security 
                        personnel, that are related to youth 
                        drug and violence prevention;
                          (iii) reporting of criminal offenses 
                        on school property; and
                          (iv) development of comprehensive 
                        school security assessments;
                  (E) expanding and improving school-based 
                mental health services, including early 
                identification of violence and illegal drug 
                use, assessment, and direct individual or group 
                counseling services provided to students, 
                parents, and school personnel by qualified 
                school based mental health services personnel;
                  (F) establishing and maintaining peer 
                mediation programs that include educating and 
                training peer mediators and a designated 
                faculty supervisor and purchasing necessary 
                materials to facilitate training and the 
                mediation process;
                  (G) alternative education programs or 
                services that reduce the need for suspensions 
                or expulsions or programs or services for 
                students who have been expelled or suspended 
                from the regular educational settings, 
                including programs or services to assist 
                students to reenter the regular education 
                setting upon return from treatment or 
                alternative education programs;
                  (H) counseling, mentoring, and referral 
                services, and other student assistance 
                practices and programs, including assistance 
                provided by qualified school based mental 
                health services personnel and the training of 
                teachers by school-based mental health service 
                providers in appropriate identification and 
                intervention techniques for students, at risk 
                of violent behavior and drug use;
                  (I) activities that reduce truancy;
                  (J) age appropriate, developmentally based 
                violence prevention and education programs that 
                address the legal, health, personal, and social 
                consequences of illegal drug use and violent 
                and disruptive behavior 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;
                  (K) providing guidance to students that 
                encourages students to seek advice for anxiety, 
                threats of violence, or actual violence and to 
                confide in a trusted adult regarding an 
                uncomfortable or threatening situation;
                  (L) the development of educational programs 
                that prevent school based crime, including 
                preventing crimes motivated by hate that result 
                in acts of physical violence at school and any 
                programs or published materials that address 
                school based crime shall not recommend or 
                require any action that abridges or infringes 
                upon the constitutionally protected rights of 
                free speech, religion, and equal protection of 
                students, their parents, or legal guardians;
                  (M) testing students for illegal drug use or 
                conducting student locker searches for illegal 
                drugs or drug paraphernalia consistent with the 
                4th amendment to the Constitution;
                  (N) emergency intervention services following 
                traumatic crisis events, such as a shooting, 
                major accident, or a drug-related incident, 
                that has disrupted the learning environment;
                  (O) establishing and implementing a system 
                for transferring suspension and expulsion 
                records by a local educational agency to any 
                public or private elementary or secondary 
                school;
                  (P) allowing students attending a 
                persistently dangerous public elementary or 
                secondary school, as determined by the State, 
                or who become a victim of a violent criminal 
                offense, as defined by State law, while in or 
                on the grounds of a public elementary school or 
                secondary school that the student attends, to 
                attend a safe public elementary or secondary 
                school, within the local educational agency, 
                including a public charter school, and allowing 
                payment of reasonable transportation costs and 
                tuition costs for such students;
                  (Q) the development and implementation of 
                character education and training programs that 
                reflect values, that take into account the 
                views of parents or guardians of the student 
                for whom the program is intended, which may 
                include honesty, citizenship, courage, justice, 
                respect, personal responsibility, and 
                trustworthiness;
                  (R) establishing and maintaining a school 
                violence hotline;
                  (S) activities to ensure students' safe 
                travel to and from school, including pedestrian 
                and bicycle safety education; and
                  (T) the evaluation of any of the activities 
                authorized under this subsection and the 
                collection of any data required by this part.

SEC. 5116. EVALUATION AND REPORTING.

  (a) Data Collection.--
          (1) In general.--The National Center for Education 
        Statistics shall report, and when appropriate, collect 
        data to determine the frequency, seriousness, and 
        incidence of illegal drug use and violence by youth in 
        schools and communities in the States, using if 
        appropriate, data submitted by the States pursuant to 
        subsection (b).
          (2) Report.--The Secretary shall submit to the 
        Congress a report on the data collected under this 
        subsection.
  (b) State Report.--
          (1) In general.--Not later than October 1, 2004, and 
        every third year thereafter, the chief executive 
        officer of a State, in consultation with the State 
        educational agency, shall submit to the Secretary a 
        report on the implementation and effectiveness of State 
        and local programs under this subpart.
          (2) Special rule.--The report required by this 
        subsection shall be--
                  (A) based on the State's ongoing evaluation 
                activities, and shall include data on the 
                prevalence of violence and illegal drug use by 
                youth in schools and communities; and
                  (B) made available to the public upon 
                request, with public notice of such 
                availability provided.
  (c) Local Educational Agency Report.--Each local educational 
agency receiving funds under this subpart shall submit to the 
State such information, and at such intervals as the State 
reasonably requires to complete the State report required by 
subsection (b), information on the prevalence of violence and 
illegal drug use by youth in the schools and the community and 
the progress of the local educational agency toward meeting its 
performance measures. The report shall be made available to the 
public upon request, with public notice of such availability 
provided.

                    Subpart 2--21st Century Schools

SEC. 5121. STATE ALLOTMENTS FOR 21ST CENTURY SCHOOLS.

  (a) State Allotments.--
          (1) In general.--Except as provided in paragraph (2), 
        from the amount made available under section 5003(2) to 
        carry out this subpart for each fiscal year, the 
        Secretary shall allocate among the States--
                  (A) one-half of such amount 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 amount according to the 
                ratio between the amount each State received 
                under part A of title I 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 one-half of 1 percent of the total amount allotted 
        to all the States under this subsection.
  (b) Reallotment of Unused Funds.--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.
  (c) State Funds.--
          (1) In general.--Each State that receives a grant 
        under this subpart shall reserve an amount equal to the 
        amount allotted to such State under subsection (a), 
        less the amount reserved under paragraphs (2) and (3) 
        of this subsection, for each fiscal year for its local 
        educational agencies.
          (2) State administration.--A State may use not more 
        than 1 percent of the amount made available under 
        subsection (a) for the administrative costs of carrying 
        out its responsibilities under this subpart.
          (3) State activities.--A State may use not more than 
        4 percent of the amount made available under subsection 
        (a) for the following activities:
                  (A) Monitoring and evaluation of programs and 
                activities assisted under this subpart.
                  (B) Providing capacity building, training, 
                and technical assistance under this subpart.

SEC. 5122. STATE APPLICATION.

  (a) In General.--In order to receive an allotment under 
section 5121(a) 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 subpart;
          (2) describes the competitive procedures and criteria 
        the State will use to ensure that grants under this 
        subpart will support quality extended learning 
        opportunities;
          (3) an assurance that the program will primarily 
        target schools eligible for schoolwide programs under 
        section 1114;
          (4) describes the steps the State will take to ensure 
        that programs implement effective strategies, including 
        providing ongoing technical assistance and training, 
        evaluation, and dissemination of promising practices;
          (5) describe how activities funded under this subpart 
        will support State academic achievement goals in 
        accordance with section 1111;
          (6) describe how funds under this subpart will be 
        coordinated with programs under this Act, and other 
        programs; as appropriate, in accordance with the 
        provisions of section 8306;
          (7) 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 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:
          (8) provides an assurance that the application was 
        developed in consultation and coordination with 
        appropriate State officials, including the chief State 
        school officer, the heads of the State health and 
        mental health agencies or their designees, 
        representatives of teachers, parents, students, the 
        business community, and community-based organizations, 
        including religious organizations;
          (9) 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;
          (10) describes how the State will evaluate the 
        effectiveness of programs and activities carried out 
        under this subpart which shall include at a minimum--
                  (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 subpart; and
          (11) provides for timely public notice of intent to 
        file application and an assurance that the application 
        will be available for public review after submission of 
        the application.
  (b) General Approval.--A State application submitted 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 90-day period beginning on the 
date that the Secretary receives the application, that the 
application is in violation of this subpart.
  (c) Disapproval.--The Secretary shall not finally disapprove 
a State application, except after giving the State notice and 
opportunity for a hearing.

SEC. 5123. COMPETITIVE GRANT PROGRAM.

  (a) In General.--A State that receives funds under this 
subpart shall provide the amount made available under section 
5121 to eligible entities for 21st century community learning 
programs in accordance with this subpart.
  (b) Eligibility.--
          (1) In general.--To be eligible to receive a subgrant 
        under this subpart, an eligible entity desiring a 
        subgrant shall submit an application to the State that 
        contains--
                  (A) a description of the before and after 
                school activity 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 center will travel 
                        safely to and from the community 
                        learning center and back home; and
                          (iii) a description of how the 
                        eligible applicant will disseminate 
                        information about the project 
                        (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 
                performance;
                  (C) a description of how the activity will 
                meet the principles of effectiveness described 
                in section 5124;
                  (D) an assurance that the program will 
                primarily target students who attend schools 
                eligible for schoolwide programs under section 
                1114;
                  (E) 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 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;
                  (F) a description of the partnership with 
                local educational agency, a community-based 
                organization, and another public entity or 
                private organization, if appropriate;
                  (G) a certification that a meaningful 
                assessment has been conducted to determine 
                community needs, available resources and 
                capacity in the findings of such assessments, 
                and a description of the mechanisms used to 
                provide effective notice to the community of an 
                intention to submit an application under this 
                subpart;
                  (H) a description of the applicants 
                experience, or promise of success, in providing 
                educational or related activities that will 
                compliment and enhance the student's academic 
                achievement;
                  (I) an assurance that the applicant will 
                develop a plan to continue the activity after 
                funding under this subpart ends;
                  (J) an assurance that the application and any 
                waiver request will be available for public 
                review after submission of the application; and
                  (K) such other information and assurances as 
                the State may reasonably require.
          (2) Eligible entity.--An eligible entity under this 
        subpart is a local educational agency, community-based 
        organization, and other public entity or private 
        organization or a consortium of two or more of such 
        groups.
  (c) Peer Review.--In reviewing local applications under this 
section, a State shall use a peer review process or other 
methods of assuring the quality of such applications.
  (d) Geographic Diversity.--To the extent practicable, a State 
shall distribute funds equitably among geographic areas within 
the State.
  (e) Duration of Awards.--Grants under this subpart may be 
awarded for a period of not less than 3 years and not more than 
5 years.
  (f) Amount of Awards.--A grant awarded under this subpart may 
not be made in an amount of less than $50,000.
  (g) Priority.--In making awards under this subpart, the State 
shall give priority to applications submitted by applicants 
proposing to target services to students who attend schools 
that have been identified as in need of improvement under 
section 1116.
  (h) Permissive Local Match.--
          (1) In general.--A State may require an eligible 
        entity to match funds awarded under this subpart, 
        except that such match may not exceed the amount of the 
        grant award.
          (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) Consideration.--Notwithstanding this subsection, 
        a State shall not consider an eligible entity's ability 
        to match funds when determining which eligible entities 
        will receive subgrants under this subpart.

SEC. 5124. LOCAL 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 upon an assessment of objective 
                data regarding the need for before and after 
                school programs and activities in such schools 
                and communities;
                  (B) be based upon an established set of 
                performance measures aimed at ensuring the 
                availability of quality extended learning 
                opportunities; and
                  (C) if appropriate, be based upon 
                scientifically based research that provides 
                evidence that the program will help students 
                meet State and local performance standards to 
                be used.
          (2) Periodic evaluation.--The program or activity 
        shall undergo a periodic evaluation to assess its 
        progress toward achieving its goal of providing quality 
        extended learning opportunities. The results shall be 
        used to refine, improve, and strengthen the program, 
        and to refine the performance measures. The results 
        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 paragraph 
        (1)(C) to allow innovative activities or programs that 
        demonstrate substantial likelihood of success.
  (b) Services.--Each eligible entity that receives a subgrant 
under this subpart shall use such funds to establish or expand 
activities in community learning centers that--
          (1) provide quality extended learning opportunities 
        to help students, particularly students who attend low-
        performing schools, to meet State and local student 
        performance standards in the core academic subjects, 
        such as reading and mathematics; and
          (2) provide students with additional activities, such 
        as drug and violence prevention programs, art and music 
        programs, technology education programs, recreational 
        activity, and character education programs that are 
        linked to, and reinforce, the regular academic program 
        of schools those students attend.
  (c) Authorized Activities.--Each eligible entity that 
receives a subgrant under this subpart may use such funds to 
carry out activities, such as--
          (1) before and after school activities that advance 
        student achievement, including--
                  (A) remedial education activities and 
                academic enrichment learning programs, 
                including providing additional assistance to 
                students in order to allow them to improve 
                their academic achievement;
                  (B) math and science education activities;
                  (C) arts and music education activities;
                  (D) entrepreneurial education programs;
                  (E) tutoring services (including those 
                provided by senior citizen volunteers) and 
                mentoring programs;
                  (F) recreational activities;
                  (G) telecommunications and technology 
                education programs;
                  (H) expanded library service hours;
                  (I) programs that promote parental 
                involvement; and
                  (J) programs that provide assistance to 
                students who have been truant, suspended, or 
                expelled to allow them to improve their 
                academic achievement; and
          (2) establishing or enhancing programs or initiatives 
        that improve academic achievement.
  (d) Definition.--For the purpose of this section, a 
``community learning center'' is an entity that assists 
students to meet State and local content and student 
performance standards in core academic subjects, such as 
reading and mathematics, by providing them with quality 
extended learning opportunities and related activities (such as 
drug and violence-prevention programs, art and music programs, 
recreational programs, technology education programs, and 
character education programs) that are linked to, and 
reinforce, the regular academic program of schools attended by 
the students served and is operated by a local educational 
agency, community-based organization, other public entity or 
private organization or a consortium of two or more such 
groups. Community learning centers shall operate outside school 
hours, such as before or after school or when school is not in 
session.

                      Subpart 3--National Programs

SEC. 5131. FEDERAL ACTIVITIES.

  (a) Program Authorized.--
          (1) In general.--From funds made available to carry 
        out this part under section 5003(3), 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 
        evaluate the effectiveness of programs and activities 
        that prevent violence and the illegal use of drugs by 
        youth, that promote safety and discipline for students 
        in elementary and secondary schools, and that provide 
        before and after school supervision and academic 
        enrichment, based on the needs reported by States and 
        local educational agencies.
          (2) Coordination.--The Secretary shall carry out 
        activities described in paragraph (1) directly, or 
        through grants, contracts, or cooperative agreements 
        with public and private nonprofit and for-profit 
        organizations, and individuals, or through agreements 
        with other Federal agencies, and shall coordinate such 
        activities with other appropriate Federal activities.
          (3) Programs.--Activities described in paragraph (1) 
        may include--
                  (A) demonstrations and rigorous 
                scientifically based evaluations of innovative 
                approaches to drug and violence prevention and 
                before and after school activities based on 
                needs reported by State and local educational 
                agencies;
                  (B) 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;
                  (C) the provision of information on violence 
                prevention and school safety to the Attorney 
                General for dissemination; and
                  (D) continuing technical assistance to chief 
                executive officers, State agencies, and local 
                educational agencies to build capacity to 
                develop and implement high-quality, effective 
                programs consistent with the principles of 
                effectiveness.
  (b) Peer Review.--The Secretary shall use a peer review 
process in reviewing applications for funds under this section.

                       Subpart 4--Gun Possession

SEC. 5141. GUN-FREE SCHOOL REQUIREMENTS.

  (a) Requirements.--
          (1) State law.--Each State receiving funds under this 
        Act shall--
                  (A) have in effect a State law requiring each 
                local educational agency to expel from school 
                for a period of not less than one year a 
                student who is determined to have possessed a 
                firearm in or at a school or on school grounds 
                under the jurisdiction of a local educational 
                agency in that State, except that such State 
                law shall allow the chief administering officer 
                of such local educational agency to modify such 
                expulsion requirement for a student on a case-
                by-case basis; and
                  (B) require each local educational agency to 
                adopt a policy requiring each elementary and 
                secondary school to refer to the criminal 
                justice or juvenile delinquency system any 
                student who possesses a firearm in school.
          (2) Construction.--Nothing in this part shall be 
        construed to prevent a State from allowing a local 
        educational agency that has expelled a student from 
        such student's regular school setting from providing 
        educational services to such student in an alternative 
        setting.
  (b) 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 
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 requirements of subsection 
        (a); and
          (2) a description of the circumstances surrounding 
        incidents of possessions and any expulsions imposed 
        under the State law required by subsection (a)(1), 
        including--
                  (A) the name of the school concerned;
                  (B) the number of students expelled from such 
                school for firearm possession; and
                  (C) the type of firearm concerned.
  (c) Special Rule.--The provisions of this section shall be 
construed in a manner consistent with the Individuals with 
Disabilities Education Act.
  (d) Definitions.--For the purpose of this subpart--
          (1) the term ``firearm'' has the same meaning given 
        to such term under section 921(a)(3) of title 18, 
        United States Code; and
          (2) the term ``school'' does not include a home 
        school, regardless of whether a home school is treated 
        as a private school under State law.

                     Subpart 5--General Provisions

SEC. 5151. DEFINITIONS.

  For the purposes of this part, the following terms have the 
following meanings:
          (1) Before and after school activities.--The term 
        ``before and after school activities'' means academic, 
        recreational, and enrichment activities for school-age 
        youth outside of the regular school hours or school 
        year.
          (2) 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)).
          (3) 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.
          (4) 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; 
                and
                  (B) with respect to violence, the promotion 
                of school safety, such that students and school 
                personnel are free from violent and disruptive 
                acts, 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.
          (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) School-aged population.--The term ``school-aged 
        population'' means the population aged 5 through 17, as 
        determined by the Secretary on the basis of the most 
        recent satisfactory data available from the Department 
        of Commerce.
          (7) 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.
          (8) School personnel.--The term ``school personnel'' 
        includes teachers, principals, administrators, guidance 
        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.
          (9) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.

SEC. 5152. MESSAGE AND MATERIALS.

  (a) ``Wrong and Harmful'' Message.--Drug prevention programs 
supported under this title shall convey a clear and consistent 
message that the illegal use of drugs is wrong and harmful.
  (b) Curriculum.--The Secretary shall not prescribe the use of 
specific curricula for programs supported under this part.

SEC. 5153. 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 title. 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 title, 
other than classroom instruction.

SEC. 5154. 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, use of drugs or crime.

             PART B--ENHANCING EDUCATION THROUGH TECHNOLOGY

SEC. 5201. SHORT TITLE.

  This part may be cited as the ``Enhancing Education Through 
Technology Act of 2001''.

SEC. 5202. PURPOSES.

  The purposes of this part are as follows:
          (1) To provide assistance to States and localities 
        for implementing innovative technology initiatives that 
        lead to increased student academic achievement and that 
        may be evaluated for effectiveness and replicated if 
        successful.
          (2) To encourage the establishment or expansion of 
        initiatives, including those involving public-private 
        partnerships, designed to increase access to 
        technology, particularly in 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 effectively integrate technology into 
        curriculum that is 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 updated research in 
        teaching and learning via electronic means.
          (6) To support the development of electronic networks 
        and other innovative methods, such as distance 
        learning, of delivering challenging courses and 
        curricula for students who would otherwise not have 
        access to such courses and curricula, particularly in 
        geographically remote regions.
          (7) To support the rigorous evaluation of programs 
        funded under this part, particularly the impact of such 
        initiatives on student academic performance, and ensure 
        that timely information on the results of such 
        evaluations is widely accessible through electronic 
        means.
          (8) To support local efforts for the use of 
        technology to promote parent and family involvement in 
        education and communication among students, parents, 
        teachers, principals, and administrators.

SEC. 5203. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

  (a) In General.--There are authorized to be appropriated--
          (1) to carry out subparts 1 and 2 of this part--
                  (A) $1,000,000,000 for fiscal year 2002; and
                  (B) such sums as may be necessary for each of 
                fiscal years 2003 through 2006; and
          (2) to carry out subpart 3 of this part--
                  (A) $24,500,000 for fiscal year 2002; and
                  (B) such sums as may be necessary for each of 
                fiscal years 2003 through 2006.
  (b) Allocation of Funds Between National and State and Local 
Initiatives.--The amount of funds made available under 
subsection (a) shall be allocated as follows:
          (1) Not less than 95 percent shall be made available 
        for State and local technology initiatives under 
        subpart 1.
          (2) Not more than 5 percent may be made available for 
        activities of the Secretary under subpart 2, of which 
        not more than $15,000,000 may be used for the study 
        required by section 5221(a)(1).

SEC. 5204. DEFINITIONS.

  In this part:
          (1) The term ``distance learning'' means the 
        transmission of educational or instructional 
        programming to geographically dispersed individuals and 
        groups via telecommunications.
          (2) The term ``eligible local entity'' means--
                  (A) a high-need local educational agency; or
                  (B) an eligible local partnership.
          (3) The term ``eligible local partnership'' means a 
        partnership that includes at least one high-need local 
        educational agency and at least one--
                  (A) local educational agency that can 
                demonstrate that teachers in schools served by 
                that agency are effectively integrating 
                technology and proven teaching practices into 
                instruction, based on scientifically based 
                research, that result in improvement in--
                          (i) classroom instruction in the core 
                        academic subject areas; and
                          (ii) the preparation of students to 
                        meet challenging State academic content 
                        and student academic achievement 
                        standards;
                  (B) institution of higher education that is 
                in full compliance with the reporting 
                requirements of section 207(f) of the Higher 
                Education Act of 1965 (20 U.S.C. 1027(f)) and 
                that has not been identified by its State as 
                low-performing under section 208 of such Act 
                (20 U.S.C. 1028);
                  (C) for-profit business or organization that 
                develops, designs, manufactures, or produces 
                technology products or services, or has 
                substantial expertise in the application of 
                technology; or
                  (D) public or private nonprofit organization 
                with demonstrated experience in the application 
                of educational technology.
          (4) The term ``high-need local educational agency'' 
        means a local educational agency that--
                  (A) is among the local educational agencies 
                in the State with the highest numbers or 
                percentages of children from families with 
                incomes below the poverty line, as defined by 
                the Office of Management and Budget and revised 
                annually in accordance with section 673(2) of 
                the Community Services Block Grant Act (42 
                U.S.C. 9902(2));
                  (B) includes one or more schools identified 
                under section 1116; and
                  (C) has a substantial need for assistance in 
                acquiring and using technology.

SEC. [3601] 5205. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR 
                    SCHOOLS.

  (a) Internet Safety.--
          (1) In general.--No funds made available under this 
        [title] part to a local educational agency for an 
        elementary or secondary school that does not receive 
        services at discount rates under section 254(h)(5) of 
        the Communications Act of 1934, as added by section 
        1721 of Children's Internet Protection Act, 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--
                  (A) * * *

           *       *       *       *       *       *       *

          (2) Timing and applicability of implementation.--
                  (A) * * *
                  (B) Process.--
                          (i) * * *

           *       *       *       *       *       *       *

                        Any school covered by paragraph (1) 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 
                        [title] part for such second program 
                        year and all subsequent program years 
                        until such time as such school comes 
                        into compliance with such requirements.
                          (iii) Waivers.--Any school subject to 
                        a certification under clause (ii)(II) 
                        for which the local educational agency 
                        concerned cannot make the certification 
                        otherwise required by that clause may 
                        seek a waiver of that clause if State 
                        or local procurement rules or 
                        regulations or competitive bidding 
                        requirements prevent the making of the 
                        certification otherwise required by 
                        that clause. The local educational 
                        agency concerned shall notify the 
                        Secretary of the applicability of that 
                        clause to the school. Such notice shall 
                        certify that the school will be brought 
                        into compliance with the requirements 
                        in paragraph (1) before the start of 
                        the third program year after the 
                        effective date of this section in which 
                        the school is applying for funds under 
                        this [title] part.
          (3) Disabling during certain use.--An administrator, 
        supervisor, or person authorized by the responsible 
        authority under paragraph (1) may disable the 
        technology protection measure concerned to enable 
        access for bona fide research or other lawful purposes.
          (4) Noncompliance.--
                  (A) Use of general education provisions act 
                remedies.--Whenever the Secretary has reason to 
                believe that any recipient of funds under this 
                [title] part is failing to comply substantially 
                with the requirements of this subsection, the 
                Secretary may--
                          (i) withhold further payments to the 
                        recipient under this [title] part,

           *       *       *       *       *       *       *

          (5) Definitions.--In this section:
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Acquisition or operation.--A elementary 
                or secondary school shall be considered to have 
                received funds under this [title] part for the 
                acquisition or operation of any computer if 
                such funds are used in any manner, directly or 
                indirectly--
                          (i) * * *

           *       *       *       *       *       *       *

        Subpart 1--State and Local Technology for Success Grants

SEC. 5211. DETERMINATION OF AMOUNT OF STATE ALLOTMENT.

  (a) In General.--Except as otherwise provided in this 
subpart, each State shall be eligible to receive a grant under 
this subpart for a fiscal year in an allotment determined as 
follows:
          (1) 50 percent shall bear the same relationship to 
        the amount made available under section 5203(b)(1) for 
        such year as the amount such State received under part 
        A for title I for such year bears to the amount 
        received for such year under such part by all States.
          (2) 50 percent shall be determined on the basis of 
        the State's relative population of individuals age 5 
        through 17, as determined by the Secretary on the basis 
        of the most recent satisfactory data.
  (b) Reservation of Funds for Bureau of Indian Affairs and 
Outlying Areas.--Of the amount made available to carry out this 
subpart under section 5203(b)(1) for a fiscal year--
          (1) the Secretary shall reserve \1/2\ 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; and
          (2) the Secretary shall reserve \1/2\ of 1 percent to 
        provide assistance under this subpart to the outlying 
        areas.
  (c) Minimum Allotment.--The amount of any State's allotment 
under subsection (a) for any fiscal year may not be less than 
\1/2\ of 1 percent of the amount made available under section 
5203(b)(1) for such year.
  (d) Reallotment of Unused Funds.--If any State does not apply 
for an allotment under this subpart for a fiscal year, or does 
not use its entire allotment for that fiscal year, the 
Secretary shall reallot the amount of the State's allotment, or 
the unused portion thereof, to the remaining States in 
accordance with this section.

SEC. 5212. USE OF ALLOTMENT BY STATE.

  (a) In General.--Of the amount provided to a State from its 
allotment under section 5211--
          (1) the State may use not more than 5 percent to 
        carry out activities under section 5215; and
          (2) subject to subsection (b), not less than 95 
        percent shall be distributed by the State as follows:
                  (A) 60 percent of such amount shall--
                          (i) be awarded to local educational 
                        agencies that have submitted 
                        applications to the State under section 
                        5214 (which, in the case of a local 
                        educational agency that is an eligible 
                        local entity, may be combined with an 
                        application for funds awarded under 
                        subparagraph (B)), in an amount that 
                        bears the same relationship to the 
                        amount made available under section 
                        5211(a) for such year as the amount 
                        such local educational agency received 
                        under part A of title I for such year 
                        bears to the amount received for such 
                        year under such part by all local 
                        educational agencies within the State; 
                        and
                          (ii) be used for the activities 
                        described in section 5216.
                  (B) 40 percent of such amount shall be 
                awarded through a State-determined competitive 
                process to eligible local entities that have 
                submitted applications to the State under 
                section 5214 (which, in the case of an eligible 
                local entity that is a local educational 
                agency, may be combined with an application for 
                funds provided under subparagraph (A)), to be 
                used to carry out activities consistent with 
                activities described in section 5216.
  (b) Continuation of Awards.--Notwithstanding section 3 of the 
No Child Left Behind Act of 2001, a State shall make 
continuation awards on multiyear grants awarded by the State 
under section 3132(a)(2) (as in effect on the day preceding the 
date of enactment of such Act) from the funds described in 
subsection (a)(2) for the shorter of--
          (1) the duration of the original grant period; or
          (2) two years after the date of enactment of such 
        Act.

SEC. 5213. STATE APPLICATIONS.

  (a) In General.--To be eligible to receive a grant under this 
subpart, a State shall submit an application to the Secretary 
containing a new or updated statewide, long-range strategic 
educational technology plan (which shall consider the 
educational technology needs of local educational agencies), 
and such other information as the Secretary may reasonably 
require, at such time and in such manner as the Secretary may 
specify.
  (b) Contents.--Each State application submitted under this 
section shall include the following:
          (1) A description of how the State will use funds 
        provided under this subpart to improve the academic 
        achievement of all students and to improve the capacity 
        of all teachers to provide instruction in the State 
        through the use of education technology.
          (2) A description of the State's goals for using 
        advanced technology to improve student achievement 
        aligned to challenging State academic content and 
        student academic achievement standards.
          (3) A description of how the State will take steps 
        (including through public and private partnerships) to 
        ensure that all students and teachers in the State, 
        particularly those residing or teaching in districts 
        served by high-need local educational agencies, will 
        have increased access to educational technology.
          (4) A description of--
                  (A) how the State will ensure that ongoing 
                integration of technology into instructional 
                strategies and school curricula in all schools 
                in the State so that technology will be fully 
                integrated into those schools by December 31, 
                2006; and
                  (B) the process and accountability measures 
                the State will use for the evaluation of such 
                integration, including whether such 
                integration--
                          (i) has increased the ability of 
                        teachers to teach effectively; and
                          (ii) has enabled students to meet 
                        challenging State academic content and 
                        student academic achievement standards.
          (5) A description of how the State 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 and 
        distance learning, 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 shall supplement, not supplant, 
        State and local funds.
          (7) A description of how the State will ensure that 
        every teacher and principal within a school funded 
        under this subpart will be computer-literate and 
        proficient (as determined by the State) by December 31, 
        2006.
          (8) A description of how the State will ensure that 
        each grant under section 5212(a)(2)(B) to an eligible 
        local applicant is of sufficient duration, size, scope, 
        and quality to carry out the purposes of this part 
        effectively.
          (9) A description of how the State educational agency 
        will provide technical assistance to eligible local 
        applicants, and its capacity for providing such 
        assistance, including developing public and private 
        partnerships under this part.
  (c) Deemed Approval.--A State application submitted to the 
Secretary under this section shall be deemed to be approved by 
the Secretary unless the Secretary makes a written 
determination, prior to the expiration of the 90-day period 
that begins on the date the Secretary receives the complete 
application, that the application does not reasonably meet the 
purposes of this subpart.
  (d) Disapproval.--The Secretary may issue a final disapproval 
of a State's application under this subpart only after giving 
the State notice and an opportunity for a hearing.
  (e) Dissemination of Information on State Applications.--The 
Secretary shall make information on State applications under 
this subpart widely available to schools and the general 
public, including through dissemination on the Internet, in a 
timely and user-friendly manner.

SEC. 5214. LOCAL APPLICATIONS.

  (a) In General.--An applicant seeking to receive funds from a 
State under this subpart shall submit to the State an 
application containing a new or updated long-range local 
strategic educational technology plan consistent with the 
objectives of the statewide education technology plan described 
in section 5213(a), and such other information as the State may 
reasonably require, at such time, and in such manner as the 
State may specify.
  (b) Contents of Local Application.--Each local application 
described in this section shall include the following:
          (1) A description of how the applicant will use 
        Federal funds provided under this subpart to improve 
        the academic achievement of all students and to improve 
        the capacity of all teachers to provide instruction 
        through the use of education technology.
          (2) A description of the applicant's specific goals 
        for using advanced technology to improve student 
        achievement aligned to challenging State academic 
        content and student academic achievement standards.
          (3) A description of--
                  (A) how the applicant will take steps to 
                ensure that all students and teachers in 
                schools served by the local educational agency 
                (particularly those in high-poverty and high-
                need schools) have increased access to 
                educational technology; and
                  (B) how such technology will be used to 
                improve the academic achievement for such 
                students.
          (4) A description of how the applicant will promote--
                  (A) the utilization of teaching strategies 
                and curricula, based on scientifically based 
                research, which effectively integrate 
                technology into instruction, leading to 
                improvements in student academic achievement as 
                measured by challenging State academic content 
                and student academic achievement standards; and
                  (B) sustained and intensive, high-quality 
                professional development consistent with 
                section 2033 (as applicable), based on 
                scientifically based research, which increases 
                teacher and principal capacity to create 
                improved learning environments through the 
                integration of technology into instruction 
                through proven strategies and improved content 
                as described in subparagraph (A).
          (5) A description of how the applicant will integrate 
        technology across the curriculum and a time line for 
        such integration, including a description of how the 
        applicant will make effective use of new and emerging 
        technologies and teaching practices that are linked to 
        such emerging technologies to provide challenging 
        content and improved classroom instruction.
          (6) A description of how the applicant will 
        coordinate education technology activities funded under 
        this subpart, including professional development, with 
        any such activities provided under other Federal, 
        State, and local programs, including those authorized 
        under title I, title II, title IV, and the Individuals 
        with Disabilities Education Act (20 U.S.C. 1400 et 
        seq.) and the Carl D. Perkins Vocational and Technical 
        Education Act of 1998 (20 U.S.C. 2301 et seq.).
          (7) A description of the accountability measures and 
        process the applicant will use for the evaluation of 
        the extent to which funds provided under this subpart 
        were effective in integrating technology into school 
        curriculum, increasing the ability of teachers to 
        teach, and enabling students to meet challenging State 
        academic content and student academic achievement 
        standards.
          (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 and distance learning, 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 what steps the applicant has 
        taken, or will take, to comply with section 5205(a)(1).
          (10) If requested by the State--
                  (A) a description of how the applicant will 
                use funds provided under this subpart in a 
                manner that is consistent with any statewide 
                education technology priorities that may be 
                established by the State consistent with this 
                subpart; and
                  (B) an assurance that any technology obtained 
                with funds provided under this subpart will 
                have compatibility and interconnectivity with 
                technology obtained with funds provided 
                previously under title III (as in effect on the 
                day preceding the date of enactment of the No 
                Child Left Behind Act of 2001), as appropriate.

SEC. 5215. STATE ACTIVITIES.

  (a) In General.--From funds made available under section 
5212(a)(1), a State shall carry out activities and assist local 
efforts to carry out the purposes of this subpart, which may 
include the following activities:
          (1) Developing, or assisting applicants in the 
        development and utilization of, innovative strategies 
        to deliver rigorous academic programs through the use 
        of technology and distance learning, and providing 
        other technical assistance to such applicants 
        throughout the State, with a priority 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 applicants in providing sustained and 
        intensive, high-quality professional development based 
        on scientifically based research in the integration of 
        advanced technologies (including emerging technologies) 
        into curriculum and in using those technologies to 
        create new learning environments, including training in 
        the use of technology to--
                  (A) access data and resources to develop 
                curricula and instructional materials;
                  (B) enable teachers--
                          (i) to use the Internet 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 subject areas, 
                which effectively prepare students to meet 
                challenging State academic content and student 
                academic achievement standards.
          (4) Assisting applicants in providing all students 
        (including students with disabilities and students with 
        limited English proficiency) and teachers with access 
        to educational technology.
          (5) Establishing or expanding access to technology in 
        areas served by high-need local educational agencies, 
        with special emphasis on access provided through 
        technology centers in partnership with libraries and 
        with the support of the private sector.
          (6) Developing enhanced performance measurement 
        systems to determine the effectiveness of education 
        technology programs funded under this subpart, 
        particularly in determining the extent to which 
        education technology funded under this subpart has been 
        successfully integrated into teaching strategies and 
        school curriculum, has increased the ability of 
        teachers to teach, and has enabled students to meet 
        challenging State academic content and student academic 
        achievement standards.
          (7) Collaborating with other States on distance 
        learning, including making advanced courses available 
        to students who would otherwise not have access to such 
        courses.
  (b) Limitation on Administrative Costs.--Of the 5 percent of 
the State's allotment under section 5211 which may be used to 
carry out activities under this section, not more than 40 
percent may be used by the State for administrative costs.

SEC. 5216. LOCAL ACTIVITIES.

  (a) Professional Development.--A recipient of funds made 
available under section 5212(a)(2)(A) shall use not less than 
20 percent of such funds to provide sustained and intensive, 
high-quality professional development, consistent with section 
2033 (as applicable), based on scientifically based research in 
the integration of advanced technologies (including emerging 
technologies) into curriculum and in using those technologies 
to create new learning environments, including professional 
development in the use of technology to--
          (1) access data and resources to develop curricula 
        and instructional materials;
          (2) enable teachers--
                  (i) to use the Internet to communicate with 
                parents, other teachers, principals, and 
                administrators; and
                  (ii) to retrieve Internet-based learning 
                resources; and
          (3) lead to improvements in classroom instruction in 
        the core academic subject areas, which effectively 
        prepare students to meet challenging State academic 
        content and student academic achievement standards.
  (b) Waiver.--Subsection (a) does not apply to a recipient of 
funds under section 5212(a)(2)(A) that demonstrates, to the 
satisfaction of the State, that such recipient already provides 
sustained and intensive, high-quality professional development 
based on scientifically based research in the integration of 
technology (including emerging technologies) into the 
curriculum.
  (c) Other Activities.--In addition to the activities 
described in subsection (a), a recipient of funds distributed 
by a State under section 5212(a)(2)(A) shall use such funds to 
carry out other activities consistent with this subpart, which 
may include the following:
          (1) Adapting or expanding existing and new 
        applications of technology to enable teachers to 
        increase student academic achievement through the use 
        of teaching practices and advanced technologies that 
        are based on scientifically based research and are 
        designed to prepare students to meet challenging State 
        academic content and student academic achievement 
        standards, and for developing and utilizing innovative 
        strategies to deliver rigorous academic programs.
          (2) Expanding, acquiring, implementing, applying, and 
        maintaining education technology as a means to improve 
        the academic achievement of all students.
          (3) The establishment or expansion of initiatives, 
        particularly those involving public-private 
        partnerships, designed to increase access to technology 
        for students and teachers, with special emphasis on the 
        access of high-need local educational agencies to 
        technology.
          (4) Using technology to promote parent and family 
        involvement, and support communications between 
        students, parents, and teachers.
          (5) Acquiring proven and effective curricula that 
        include integrated technology and are designed to help 
        students achieve challenging State academic content and 
        student academic achievement standards.
          (6) Using technology to collect, manage, and analyze 
        data to inform school improvement efforts.
          (7) Implementing enhanced performance measurement 
        systems to determine the effectiveness of education 
        technology programs funded under this subpart, 
        particularly in determining the extent to which 
        education technology funded under this subpart has been 
        successfully integrated into teaching strategies and 
        school curriculum, has increased the ability of 
        teachers to teach, and has enabled students to meet 
        challenging State academic content and student academic 
        achievement standards.
          (8) Preparing one or more teachers in elementary 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.
          (9) Establishing or expanding access to technology in 
        areas served by high-need local educational agencies, 
        with special emphasis for access provided through 
        technology centers in partnership with libraries and 
        with the support of the private sector.

               Subpart 2--National Technology Activities

SEC. 5221. NATIONAL ACTIVITIES.

  (a) In General.--Using funds made available under section 
5203(b)(2), the Secretary--
          (1) shall--
                  (A) conduct an independent, long-term study, 
                utilizing scientifically based research methods 
                and control groups, on the effect of 
                educational technology on improving student 
                academic achievement;
                  (B) include in the study an identification of 
                uses of educational technology (including how 
                teachers can integrate technology into the 
                curricula) that have a measurable positive 
                impact on student achievement;
                  (C) establish an independent review panel to 
                advise the Secretary on methodological and 
                other issues that arise in conducting this 
                long-term study; and
                  (D) submit to the Congress interim reports, 
                when appropriate, and a final report, to be 
                submitted not later than 6 months before the 
                end of fiscal year 2006, on the findings of the 
                study;
          (2) may fund national technology initiatives that are 
        supported by scientifically based research and utilize 
        technology in education, through the competitive award 
        of grants or contracts, pursuant to a peer review 
        process, to States, local educational agencies, 
        eligible local entities, institutions of higher 
        education, public agencies, and private nonprofit or 
        for-profit agencies; and
          (3) may provide technical assistance (directly or 
        through the competitive award of grants or contracts) 
        to States, local educational agencies, and other 
        recipients of funds under this part in order to assist 
        such States, local educational agencies, and other 
        recipients to achieve the purposes of this part.
  (b) National Technology Initiatives.--
          (1) Use of funds.--In funding national technology 
        initiatives under subsection (a)(2), the Secretary--
                  (A) shall place a priority on projects that--
                          (i) develop innovative models using 
                        electronic networks or other forms of 
                        distance learning to provide 
                        challenging courses that are otherwise 
                        not readily available to students in a 
                        particular school district, 
                        particularly in rural areas; or
                          (ii) increase access to technology to 
                        students served by high-need local 
                        educational agencies; and
                  (B) shall, in order to identify effective 
                uses of educational technology that have a 
                measurable positive impact on student 
                achievement and as specified in paragraph (3)--
                          (i) develop tools and provide 
                        resources and support, including 
                        technical assistance, for recipients of 
                        funds under subsection (a)(2) to 
                        effectively evaluate their activities; 
                        and
                          (ii) disseminate the evaluations made 
                        under paragraph (2)(A)(ii).
          (2) Requirements for recipients of funds.--
                  (A) Application.--In order to receive a grant 
                or contract under subsection (a)(2), an entity 
                shall submit an application to the Secretary 
                (at such time and in such form as the Secretary 
                may require), and shall include in the 
                application--
                          (i) a description of the project 
                        proposed to be carried out with the 
                        grant or contract and how it would 
                        carry out the purposes of subsection 
                        (a)(2); and
                          (ii) a detailed plan for an 
                        independent evaluation, supported by 
                        scientifically based research 
                        principles, of the project to determine 
                        the impact on the academic achievement 
                        of students served under such project, 
                        as measured by challenging State 
                        academic content and student academic 
                        achievement standards.
                  (B) Non-federal share.--
                          (i) In general.--Subject to clauses 
                        (ii) and (iii), the Secretary may 
                        require any recipient of a grant or 
                        contract under subsection (a)(2) to 
                        share in the cost of the activities 
                        assisted under such grant or contract, 
                        which may be in the form of cash or in-
                        kind contributions, fairly valued.
                          (ii) Increase.--The Secretary may 
                        increase the non-Federal share required 
                        of a recipient of a grant or contract 
                        under subsection (a)(2) after the first 
                        year such recipient receives funds 
                        under such grant or contract.
                          (iii) Maximum.--The non-Federal share 
                        required under this subsection may not 
                        exceed 50 percent of the cost of the 
                        activities assisted under a grant or 
                        contract under this subpart.
                          (iv) Notice.--The Secretary shall 
                        publish, in the Federal Register, the 
                        non-Federal share required under this 
                        subparagraph.
          (3) Evaluation and dissemination.--The Secretary 
        shall make information on each project funded with a 
        grant or contract under subsection (a)(2) widely 
        available to schools and the general public, including 
        through dissemination on the Internet, in a timely and 
        user-friendly manner. This information shall, at a 
        minimum, include--
                  (A) upon the awarding of such a grant or 
                contract under subsection (a)(2), the 
                identification of the grant or contract 
                recipient, the amount of the grant or contract, 
                the stated goals of the grant or contract, the 
                methods by which the grant or contract will be 
                evaluated in meeting such stated goals, and the 
                timeline for meeting such goals;
                  (B) not later than 3 months after the 
                completion of the first year of the project 
                period, information on the progress of the 
                grant or contract recipient in carrying out the 
                grant or contract, including a detailed 
                description of the use of the funds provided, 
                the extent to which the stated goals have been 
                reached, and the results (or progress of) the 
                evaluation of the project; and
                  (C) not later than 3 months after the 
                completion of the second year of the project 
                period (and updated thereafter as appropriate), 
                a followup to the information described in 
                subparagraph (B).

               Subpart 3--Ready to Learn, Ready to Teach

SEC. 5231. READY TO LEARN TELEVISION.

  (a) Program Authorized.--
          (1) In general.--The Secretary shall award grants to 
        or enter into contracts or cooperative agreements with 
        eligible entities described in paragraph (3) to--
                  (A) 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) 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 accompanying 
                support materials and services that directly 
                promote the effective use of such programming;
                  (C) facilitate the development of programming 
                and digital content especially designed for 
                nationwide distribution over digital 
                broadcasting channels and the Internet, 
                containing Ready to Learn-based children's 
                programming and resources for parents and 
                caregivers;
                  (D) enable such entities to contract with 
                other entities (such as public 
                telecommunications entities) so that programs 
                under this section are disseminated and 
                distributed by the most appropriate 
                distribution technologies to the widest 
                possible audience appropriate to be served by 
                the programming; and
                  (E) develop and disseminate training and 
                support materials, including interactive 
                programs and programs adaptable to distance 
                learning technologies which are designed to--
                  (i) promote school readiness; and
                  (ii) promote the effective use of programming 
                developed under subparagraphs (B) and (C) among 
                parents, Head Start providers, Even Start and 
                providers of family literacy services, child 
                care providers, early childhood development 
                personnel, and elementary school teachers, 
                public libraries, and after school program 
                personnel caring for preschool and elementary 
                school children.
          (2) Availability.--In making grants, contracts, or 
        cooperative agreements under this subsection, the 
        Secretary shall ensure that recipients increase the 
        effective use of the programming under this section by 
        making it widely available with support materials, as 
        appropriate, to young children, their parents, child 
        care workers, Head Start providers, Even Start and 
        providers of family literacy services.
          (3) Eligible entities described.--In this section, an 
        ``eligible entity'' means a nonprofit entity (including 
        a public telecommunications entity) which is able--
                  (A) to demonstrate a capacity for the 
                development and national distribution of 
                educational and instructional television 
                programming of high quality which is accessible 
                by a large majority of disadvantaged preschool 
                and elementary school children; and
                  (B) to demonstrate--
                          (i) a capacity to contract with the 
                        producers of children's television 
                        programming for the purpose of 
                        developing educational television 
                        programming of high quality which is 
                        accessible by a large majority of 
                        disadvantaged preschool and elementary 
                        school children, and
                          (ii) consistent with the entity's 
                        mission and nonprofit nature, a 
                        capacity to negotiate such contracts in 
                        a manner which returns to the entity an 
                        appropriate share of any ancillary 
                        income from sales of any program-
                        related products.
          (4) Cap on administrative costs.--An entity receiving 
        a grant, contract, or cooperative agreement from the 
        Secretary under this subsection may not use more than 5 
        percent of the amounts received under the grant, 
        contract, or cooperative agreement for the expenses of 
        administering the grant, contract, or cooperative 
        agreement.
          (5) Coordination of activities.--An entity receiving 
        a grant, contract, or cooperative agreement from the 
        Secretary under this subsection shall work with the 
        Secretary and the Secretary of Health and Human 
        Services to--
                  (A) maximize the utilization by preschool and 
                elementary school children of the programming 
                under this section and to make such programming 
                widely available to federally funded programs 
                serving such populations; and
                  (B) coordinate with Federal programs that 
                have major training components for early 
                childhood development (including Head Start, 
                Even Start, family literacy services, and State 
                training activities funded under the Child Care 
                Development Block Grant Act of 1990 (42 U.S.C. 
                9858 et seq.)) regarding the availability and 
                utilization of materials developed with funds 
                provided under this section to enhance parent 
                and child care provider skills in early 
                childhood development and education.
  (b) Applications.--Any entity desiring a grant, contract, or 
cooperative agreement under subsection (a) shall submit an 
application to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require.
  (c) Report and Evaluation..--
          (1) Annual report by grant recipients to secretary.--
        Each entity receiving funds under this section shall 
        prepare and submit to the Secretary an annual report 
        which contains such information as the Secretary may 
        require. At a minimum, the report shall describe the 
        program activities undertaken with funds received under 
        this section, including information regarding--
                  (A) the programming that has been developed 
                directly or indirectly by the 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 such 
                materials are distributed to consumers and 
                users of the programming;
                  (C) the means by which the programming has 
                been distributed, including the distance 
                learning technologies that have been utilized 
                to make programming available and the 
                geographic distribution achieved through such 
                technologies; and
                  (D) the initiatives undertaken by the entity 
                to develop public-private partnerships to 
                secure non-Federal support for the development 
                and 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 on the activities funded and carried 
        out under this section, and shall include in the 
        report--
                  (A) a summary of the programming developed 
                using funds provided under this section; and
                  (B) a description of the training materials 
                developed using funds provided under this 
                section, 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.
  (d) Funding Rule.--Not less than 60 percent of the amounts 
authorized to be appropriated under section 5233 for any fiscal 
year shall be used to carry out subparagraphs (B) and (C) of 
subsection (a)(1).

SEC. 5232. TELECOMMUNICATIONS PROGRAM.

  (a) In General.--The Secretary may carry out any of the 
following activities:
          (1) Awarding grants to a nonprofit telecommunications 
        entity (or a partnership of such entities) for the 
        purpose of carrying out a national telecommunications-
        based program to improve the teaching of core academic 
        subjects and to assist elementary and secondary school 
        teachers in preparing all students to achieve State 
        academic content standards.
          (2) Awarding grants to or entering into contracts or 
        cooperative agreements with a local public 
        telecommunications entity to develop, produce, and 
        distribute educational and instructional video 
        programming which is designed for use by elementary and 
        secondary school students, created for or adaptable to 
        State academic content standards, and capable of 
        distribution through digital broadcasting and school 
        digital networks.
  (b) Applications.--
          (1) In general.--Any telecommunications entity or 
        partnership of such entities desiring a grant under 
        this section shall submit an application to the 
        Secretary.
          (2) Specific requirements for national 
        telecommunications-based program.--Each application for 
        a grant under subsection (a)(1) shall--
                  (A) demonstrate that the applicant will use 
                the existing publicly funded telecommunications 
                infrastructure, the Internet, and school 
                digital networks (where available) to deliver 
                video, voice, and data in an integrated service 
                to train teachers in the use of materials and 
                learning technologies for achieving State 
                academic content standards;
                  (B) assure that the program for which 
                assistance is sought will be conducted in 
                cooperation with States as appropriate, local 
                educational agencies, and State or local 
                nonprofit public telecommunications entities;
                  (C) assure that a significant portion of the 
                benefits available for elementary and secondary 
                schools from the program for which assistance 
                is sought will be available to schools of local 
                educational agencies which 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.
  (c) Approval of Applications; Number of Demonstration 
Sites.--In approving applications under this section, the 
Secretary shall assure that--
          (1) the national telecommunications-based program 
        under subsection (a)(1) is conducted at elementary and 
        secondary school sites in at least 15 States; and
          (2) grants under subsection (a)(2) are awarded on a 
        competitive basis and for a period of 3 years to 
        entities which--
                  (A) enter into multiyear collaborative 
                arrangements for content development with State 
                educational agencies, local educational 
                agencies, institutions of higher education, 
                businesses, or other agencies and 
                organizations, and
                  (B) contribute non-Federal matching funds 
                (including funds provided for transitions to 
                digital broadcasting as well as in-kind 
                contributions) to the activities assisted with 
                the grant in an amount not less than 100 
                percent of the amount of the grant.

                      PART C--CHARACTER EDUCATION

SEC. 5301. CHARACTER EDUCATION PROGRAM.

  (a) Program Authorized.--
          (1) In general.--The Secretary may make grants to 
        State educational agencies, local educational agencies, 
        or consortia of such agencies for the design and 
        implementation of character education programs that--
                  (A) can be integrated into State academic 
                content standards for the core academic 
                subjects; and
                  (B) can be carried out in conjunction with 
                other educational reform efforts.
          (2) Duration.--Each grant under this section shall be 
        made for a period not to exceed 5 years, of which the 
        grant recipient may not use more than 1 year for 
        planning and program design.
  (b) Contracts Under Program.--
          (1) Evaluation.--Each agency or consortium receiving 
        assistance under this section may contract with outside 
        sources, including institutions of higher education and 
        private and nonprofit organizations (including 
        religious 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)(1).
          (2) Materials and program development.--Each agency 
        or consortium receiving assistance under this section 
        may contract with outside sources, including 
        institutions of higher education and private and 
        nonprofit organizations (including religious 
        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 curriculum and teaching methods of 
                schools where the program is carried out.
  (c) Elements of Character.--
          (1) Selection.--
                  (A) In general.--Each agency or consortium 
                receiving assistance under this section may 
                select the elements of character that will be 
                taught under the program for which the 
                assistance is made available.
                  (B) Consideration of views.--In selecting 
                elements of character under paragraph (1), the 
                agency or consortium shall consider the views 
                of the parents or guardians of the students to 
                be taught under the program.
          (2) Example elements.--Elements of character selected 
        under this subsection may include any of the following:
                  (A) Trustworthiness.
                  (B) Respect.
                  (C) Responsibility.
                  (D) Fairness.
                  (E) Caring.
                  (F) Citizenship.
                  (G) Giving.
  (d) Application.--
          (1) In general.--Each agency or consortium seeking 
        assistance 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 
        assistance under this section shall include information 
        that--
                  (A) demonstrates that the program for which 
                the assistance is sought has clear goals and 
                objectives that are based on scientifically 
                based research;
                  (B) describes the activities that will be 
                carried out with the assistance and how such 
                activities will meet the goals and objectives 
                described in paragraph (1); and
                  (C) describes how the program for which the 
                assistance is sought will be linked to other 
                efforts to improve educational achievement, 
                including--
                          (i) broader educational reforms that 
                        are being instituted by the applicant 
                        or its partners; and
                          (ii) applicable State academic 
                        content standards for student 
                        achievement.
  (e) Selection of Recipients.--
          (1) Peer review.--
                  (A) In general.--In selecting agencies or 
                consortia to receive assistance under this 
                section from among the applicants for such 
                assistance, the Secretary shall use a peer 
                review process that includes the participation 
                of experts in the field of character education.
                  (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 of parental, student, and 
                community involvement in the program; and
                  (B) the likelihood that the goals of the 
                program will be realistically 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.
  (f) Evaluations.--
          (1) In general.--As a condition of receiving 
        assistance under this section, the Secretary shall 
        require each agency or consortium receiving such 
        assistance to transmit to the Secretary, not later than 
        5 years after such receipt, a report containing an 
        evaluation of each program assisted.
          (2) Attainment of goals and objectives.--In 
        conducting an evaluation referred to in paragraph (1), 
        each agency or consortium shall evaluate the degree to 
        which each program for which assistance was made 
        available attained the goals and objectives for the 
        program as described in the application for assistance 
        submitted under subsection (d).
          (3) Dissemination.--The Secretary shall--
                  (A) make each evaluation received under this 
                subsection publicly available; and
                  (B) provide public notice (through such means 
                as the Internet, the media, and public 
                agencies) of the availability of each such 
                evaluation after it is received by the 
                Secretary.
  (g) Matching Funds.--As a condition of receiving assistance 
under this section, the Secretary may require that each agency 
or consortium receiving such assistance provide matching funds 
from non-Federal sources.

SEC. 5302. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
part $25,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of fiscal years 2003 through 2006.

      PART D--ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS

SEC. 5401. ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS.

  (a) Findings.--Congress finds as follows:
          (1) The Surgeon General reported in January 2001 that 
        1 in 10 children suffer from mental illnesses severe 
        enough to impair development and fewer than 1 in 5 
        children get treatment for mental illnesses.
          (2) The Surgeon General reported that the burden of 
        suffering by children with mental health needs and 
        their families has created a health crisis in this 
        country. Growing numbers of children are suffering 
        needlessly because their emotional, behavioral, and 
        developmental needs are not being met by the very 
        institutions and systems that were created to take care 
        of them.
          (3) As a result of the concern about the failure of 
        the healthcare system to reach children and adolescents 
        with mental illnesses, there is currently great 
        interest in developing new models for the delivery of 
        mental health and counseling services that can reach 
        underserved groups efficiently.
          (4) Schools are a sensible point of intervention 
        because of their central position in many children's 
        lives and development, especially when families are 
        unable to assume a leading role.
          (5) School-based mental health and counseling 
        services allow for the identification of children in 
        need of treatment much earlier in their development.
          (6) Establishing mental health and counseling 
        services in schools provides access to underserved 
        youth with or at risk of emotional or behavioral 
        problems.
          (7) The Surgeon General's 2000 report on youth 
        violence concludes that effective treatment can divert 
        a significant proportion of delinquent and violent 
        youths from future violence and crime.
          (8) Mental health and counseling services can play an 
        important role in violence prevention on all levels, 
        including preventing problem behaviors from developing; 
        identifying and serving specific, at-risk populations; 
        and reducing the deleterious effects of violence on 
        victims and witnesses.
          (9) An evaluation of the model program for the 
        elementary school counseling demonstration program 
        established pursuant to this section prior to the date 
        of enactment of the Elementary and Secondary Counseling 
        Improvement Act of 2001 found that the number of 
        referrals to the principal's office decreased by nearly 
        half, the use of force, weapons, and threatening of 
        others also decreased, school suspensions were reduced, 
        and students felt safer.
          (10) The report produced by the Institute of 
        Medicine, ``Schools and Health: Our Nation's 
        Investment'', recommended a student-to-school counselor 
        ratio of 250:1, student-to-school psychologist ratio of 
        1000:1, and a student-to-school social worker ratio of 
        800:1. The United States average student-to-counselor 
        ratio is 551:1. Ratios for school psychologists and 
        school social workers also exceed the recommended 
        levels.
  (b) Grants Authorized.--
          (1) In general.--The Secretary may use funds provided 
        under this section to award grants to local educational 
        agencies to enable such agencies to establish or expand 
        elementary and secondary school counseling programs 
        which meet the requirements of subsection (c).
          (2) Priority.--In awarding grants under this section, 
        the Secretary shall give special consideration to 
        applications describing programs which--
                  (A) demonstrate the greatest need for new or 
                additional counseling services among children 
                in the schools served by the applicant, 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 urban, suburban, and rural local 
        educational agencies.
          (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 
        program shall not exceed $400,000 for any fiscal year.
          (6) Supplement.--Assistance made available under this 
        section shall be used to supplement, and may not 
        supplant, other Federal, State, or local funds used for 
        providing school-based counseling and mental health 
        services to students.
  (c) Requirements for Counseling Programs.--Each program 
funded under this section shall--
          (1) be comprehensive in addressing the counseling and 
        educational needs of all students;
          (2) use a developmental, preventive approach to 
        counseling;
          (3) increase the range, availability, quantity, and 
        quality of counseling services in the elementary and 
        secondary schools of the local educational agency;
          (4) expand counseling services through qualified 
        school counselors, school psychologists, school social 
        workers, and child and adolescent psychiatrists;
          (5) 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;
          (6) provide counseling services in settings that meet 
        the range of needs of students;
          (7) include inservice training, including training 
        for teachers in appropriate identification and 
        intervention techniques for disciplining and teaching 
        students at risk of violent behavior, by school 
        counselors, school psychologists, school social 
        workers, and child and adolescent psychiatrists;
          (8) involve parents of participating students in the 
        design, implementation, and evaluation of a counseling 
        program;
          (9) involve community groups, social service 
        agencies, or other public or private entities in 
        collaborative efforts to enhance the program;
          (10) evaluate annually the effectiveness and outcomes 
        of the counseling services and activities assisted 
        under this section;
          (11) ensure a team approach to school counseling in 
        the elementary and secondary schools of 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
          (12) ensure that school counselors, school 
        psychologists, school social workers, or child and 
        adolescent psychiatrists paid from funds made available 
        under this section spend a majority of their time at 
        the school in activities directly related to the 
        counseling process.
  (d) Limitation on Administrative Costs.--Not more than 3 
percent of the amounts made available under this section in any 
fiscal year may be used for administrative costs to carry out 
this section.
  (e) Definitions.--For purposes of this section--
          (1) the term ``school counselor'' means an individual 
        who has documented competence in counseling children 
        and adolescents in a school setting and who--
                  (A) possesses State licensure or 
                certification granted 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;
          (2) the term ``school psychologist'' means an 
        individual who--
                  (A) possesses 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 shall be in the school setting;
                  (B) possesses State licensure or 
                certification in 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;
          (3) 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) is licensed or certified by the State in 
                which services are provided; or
                  (C) 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; and
          (4) the term ``child and adolescent psychiatrist'' 
        means an individual who--
                  (A) possesses State medical licensure; and
                  (B) has completed residency training programs 
                in general and child and adolescent psychiatry.
  (f) Report.--Not later than 1 year after assistance is made 
available under this section, the Secretary shall make publicly 
available the information from applicants regarding the ratios 
of students to school counselors, students to school social 
workers, and students to school psychologists.
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section such sums as may be 
necessary for each of fiscal years 2002 through 2006.

                       PART E--MENTORING PROGRAMS

SEC. 5501. DEFINITIONS.

  In this part, the following definitions apply:
          (1) Child with greatest need.--The term ``child with 
        greatest need'' means a child at risk of educational 
        failure, dropping out of school, or involvement in 
        criminal or delinquent activities, or that has lack of 
        strong positive adult role models.
          (2) Mentor.--The term ``mentor'' means an individual 
        who 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.
          (3) State.--The term ``State'' means each of the 
        several States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.

SEC. 5502. PURPOSES.

  The purposes of this part are to make assistance available to 
promote mentoring programs for children with greatest need--
          (1) to assist such children in receiving support and 
        guidance from a caring adult;
          (2) to improve the academic performance of such 
        children;
          (3) to improve interpersonal relationships between 
        such children and their peers, teachers, other adults, 
        and family members;
          (4) to reduce the dropout rate of such children; and
          (5) to reduce juvenile delinquency and involvement in 
        gangs by such children.

SEC. 5503. GRANT PROGRAM.

  (a) In General.--In accordance with this section, the 
Secretary may make grants to eligible entities to assist such 
entities in establishing and supporting mentoring programs and 
activities that--
          (1) are designed to link children with greatest need 
        (particularly such children living in rural areas, high 
        crime areas, or troubled home environments, or such 
        children experiencing educational failure) with 
        responsible adults, who--
                  (A) have received training and support in 
                mentoring;
                  (B) have been screened using appropriate 
                reference checks, child and domestic abuse 
                record checks, and criminal background checks; 
                and
                  (C) are interested in working with youth; and
          (2) are intended to achieve 1 or more of the 
        following goals:
                  (A) Provide general guidance to children with 
                greatest need.
                  (B) Promote personal and social 
                responsibility among children with greatest 
                need.
                  (C) Increase participation by children with 
                greatest need in, and enhance their ability to 
                benefit from, elementary and secondary 
                education.
                  (D) Discourage illegal use of drugs and 
                alcohol, violence, use of dangerous weapons, 
                promiscuous behavior, and other criminal, 
                harmful, or potentially harmful activity by 
                children with greatest need.
                  (E) Encourage children with greatest need to 
                participate in community service and community 
                activities.
                  (F) Encourage children with greatest need to 
                set goals for themselves or to plan for their 
                futures, including encouraging such children to 
                make graduation from secondary school a goal 
                and to make plans for postsecondary education 
                or training.
                  (G) Discourage involvement of children with 
                greatest need in gangs.
  (b) Eligible Entities.--Each of the following is an entity 
eligible to receive a grant under subsection (a):
          (1) A local educational agency.
          (2) A nonprofit, community-based organization.
          (3) A partnership between an agency referred to in 
        paragraph (1) and an organization referred to in 
        paragraph (2).
  (c) Use of Funds.--
          (1) In general.--Each entity receiving a grant under 
        this section shall use the grant funds for activities 
        that establish or implement a mentoring program, 
        including--
                  (A) hiring of mentoring coordinators and 
                support staff;
                  (B) providing for the professional 
                development of mentoring coordinators and 
                support staff;
                  (C) recruitment, screening, and training of 
                adult mentors;
                  (D) reimbursement of schools, if appropriate, 
                for the use of school materials or supplies in 
                carrying out the program;
                  (E) dissemination of outreach materials;
                  (F) evaluation of the program using 
                scientifically based methods; and
                  (G) such other activities as the Secretary 
                may reasonably prescribe by rule.
          (2) Prohibited uses.--Notwithstanding paragraph (1), 
        an entity receiving a grant under this section may not 
        use the grant funds--
                  (A) to directly compensate mentors;
                  (B) to obtain educational or other materials 
                or equipment that would otherwise be used in 
                the ordinary course of the entity's operations;
                  (C) to support litigation of any kind; or
                  (D) for any other purpose reasonably 
                prohibited by the Secretary by rule.
  (d) Term of Grant.--Each grant made under this section shall 
be available for expenditure for a period of 3 years.
  (e) Application.--Each eligible entity seeking a grant under 
this section shall submit to the Secretary an application that 
includes--
          (1) a description of the mentoring plan the applicant 
        proposes to carry out with such grant;
          (2) information on the children expected to be served 
        by the mentoring program for which such grant is 
        sought;
          (3) a description of the mechanism that applicant 
        will use to match children with mentors based on the 
        needs of the children;
          (4) an assurance that no mentor will be assigned to 
        mentor so many children that the assignment would 
        undermine either the mentor's ability to be an 
        effective mentor or the mentor's ability to establish a 
        close relationship (a one-on-one relationship, where 
        practicable) with each mentored child;
          (5) an assurance that mentoring programs will provide 
        children with a variety of experiences and support, 
        including--
                  (A) emotional support;
                  (B) academic assistance; and
                  (C) exposure to experiences that children 
                might not otherwise encounter on their own;
          (6) an assurance that mentoring programs will be 
        monitored to ensure that each child assigned a mentor 
        benefits from that assignment and that there will be a 
        provision for the assignment of a new mentor if the 
        relationship between the original mentor is not 
        beneficial to the child;
          (7) information on the method by which mentors and 
        children will be recruited to the mentor program;
          (8) information on the method by which prospective 
        mentors will be screened;
          (9) information on the training that will be provided 
        to mentors; and
          (10) information on the system that the applicant 
        will use to manage and monitor information relating to 
        the program's reference checks, child and domestic 
        abuse record checks, and criminal background checks and 
        to its procedure for matching children with mentors.
  (f) Selection.--
          (1) Competitive basis.--In accordance with this 
        subsection, the Secretary shall select grant recipients 
        from among qualified applicants on a competitive basis.
          (2) Priority.--In selecting grant recipients under 
        paragraph (1), the Secretary shall give priority to 
        each applicant that--
                  (A) serves children with greatest need living 
                in rural areas, high crime areas, or troubled 
                home environments, or who attend schools with 
                violence problems;
                  (B) provides background screening of mentors, 
                training of mentors, and technical assistance 
                in carrying out mentoring programs;
                  (C) proposes a mentoring program under which 
                each mentor will be assigned to not more 
                children than the mentor can serve effectively; 
                or
                  (D) proposes a school-based mentoring 
                program.
          (3) Other considerations.--In selecting grant 
        recipients under paragraph (1), the Secretary shall 
        also consider--
                  (A) the degree to which the location of the 
                programs proposed by each applicant contributes 
                to a fair distribution of programs with respect 
                to urban and rural locations;
                  (B) the quality of the mentoring programs 
                proposed by each applicant, including--
                          (i) the resources, if any, the 
                        applicant 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 
                        applicant's mentoring program;
                          (iii) the degree to which the 
                        applicant can ensure that mentors will 
                        develop longstanding relationships with 
                        the children they mentor;
                          (iv) the degree to which the 
                        applicant will serve children with 
                        greatest need in the 4th, 5th, 6th, 
                        7th, and 8th grades; and
                          (v) the degree to which the program 
                        will continue to serve children from 
                        the 4th grade through graduation from 
                        secondary school; and
                  (C) the capability of each applicant to 
                effectively implement its mentoring program.
          (4) Grant to each state.--Notwithstanding any other 
        provision of this subsection, in selecting grant 
        recipients under paragraph (1), the Secretary shall 
        select not less than 1 grant recipient from each State 
        for which there is a qualified applicant.
  (g) Model Screening Guidelines.--
          (1) 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 program participants specific model 
        guidelines for the screening of mentors who seek to 
        participate in programs to be assisted under this part.
          (2) 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.

SEC. 5504. STUDY BY GENERAL ACCOUNTING OFFICE.

  (a) In General.--The Comptroller General of the United States 
shall conduct a study to identify successful school-based 
mentoring programs, and the elements, policies, or procedures 
of such programs that can be replicated.
  (b) Report.--Not later than 3 years after the date of 
enactment of the Mentoring for Success Act, the Comptroller 
General shall submit a report to the Secretary and Congress 
containing the results of the study conducted under this 
section.
  (c) Use of Information.--The Secretary shall use information 
contained in the report referred to in subsection (b)--
          (1) to improve the quality of existing mentoring 
        programs assisted under this part and other mentoring 
        programs assisted under this Act; and
          (2) to develop models for new programs to be assisted 
        or carried out under this Act.

SEC. 5505. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out section 
5503 $50,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of fiscal years 2003 through 2006.

           [TITLE VI--INNOVATIVE EDUCATION PROGRAM STRATEGIES

[SEC. 6001. FINDINGS AND STATEMENT OF PURPOSE.

  [(a) Findings.--The Congress finds that chapter 2 of title I 
of this Act (as such chapter was in effect on the day preceding 
the date of enactment of the Improving America's Schools Act of 
1994) has been successful in achieving the goals of increasing 
local flexibility, reducing administrative burden, providing 
services for private school students, encouraging innovation, 
and contributing to the improvement of elementary and secondary 
educational programs.
  [(b) Statement of Purpose.--It is the purpose of programs 
under this title--
          [(1) to support local education reform efforts which 
        are consistent with and support statewide reform 
        efforts under Goals 2000: Educate America Act;
          [(2) to support State and local efforts to accomplish 
        the National Education Goals;
          [(3) to provide funding to enable State and local 
        educational agencies to implement promising educational 
        reform programs;
          [(4) to provide a continuing source of innovation, 
        and educational improvement, including support for 
        library services and instructional and media materials; 
        and
          [(5) to meet the special educational needs of at risk 
        and high cost students.
  [(c) State and Local Responsibility.--The basic 
responsibility for the administration of funds made available 
under this title is within the State educational agencies, 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 
title will be mainly that of local educational agencies, school 
superintendents and principals, and classroom teachers and 
supporting personnel, because such 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.

[SEC. 6002. AUTHORIZATION OF APPROPRIATIONS; DURATION OF ASSISTANCE.

  [(a) Authorization.--To carry out the purposes of this title, 
there are authorized to be appropriated $370,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the 
four succeeding fiscal years.
  [(b) Duration of Assistance.--During the period beginning 
October 1, 1994, and ending September 30, 1999, the Secretary 
shall, in accordance with the provisions of this title, make 
payments to State educational agencies for the purpose of this 
title.

[SEC. 6003. DEFINITION.

  [For the purposes of this title the term ``effective schools 
programs'' means school-based programs that may encompass 
preschool through secondary school levels and that have the 
objectives of (1) promoting school-level planning, 
instructional improvement, and staff development, (2) 
increasing the academic achievement levels of all children and 
particularly educationally disadvantaged children, and (3) 
achieving as ongoing conditions in the school the following 
factors identified through effective schools research as 
distinguishing effective from ineffective schools:
          [(A) Strong and effective administrative and 
        instructional leadership that creates consensus on 
        instructional goals and organizational capacity for 
        instructional problem solving.
          [(B) Emphasis on the acquisition of basic and higher 
        order skills.
          [(C) A safe and orderly school environment that 
        allows teachers and pupils to focus their energies on 
        academic achievement.
          [(D) A climate of expectation that virtually all 
        children can learn under appropriate conditions.
          [(E) Continuous assessment of students and programs 
        to evaluate the effects of instruction.

                   [PART A--STATE AND LOCAL PROGRAMS

[SEC. 6101. ALLOTMENT TO STATES.

  [(a) Reservations.--From the sums appropriated to carry out 
this title in any fiscal year, the Secretary shall reserve not 
to exceed one percent for payments to outlying areas to be 
allotted in accordance with their respective needs.
  [(b) Allotment.--From the remainder of such sums, the 
Secretary shall allot to each State an amount which bears the 
same ratio to the amount of such remainder 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 one percent of such remainder.
  [(c) Definitions.--For purposes of this part:
          [(1) The term ``school-age population'' means the 
        population aged 5 through 17.
          [(2) The term ``States'' includes the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto 
        Rico.

[SEC. 6102. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

  [(a) Distribution Rule.--From the sums made available each 
year to carry out this title, the State educational agency 
shall distribute not less than 85 percent to local educational 
agencies within such State according to the relative 
enrollments in public and private, nonprofit schools within the 
school districts of such agencies, adjusted, in accordance with 
criteria approved by the Secretary, to provide higher per pupil 
allocations to local educational agencies which have the 
greatest numbers or percentages of children whose education 
imposes a higher than average cost per child, such as--
          [(1) children living in areas with high 
        concentrations of low-income families;
          [(2) children from low-income families; and
          [(3) children living in sparsely populated areas.
  [(b) Calculation of Enrollments.--
          [(1) In general.--The calculation of relative 
        enrollments under subsection (a) 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 desire that 
                their children participate in programs or 
                projects assisted under this title, for the 
                fiscal year preceding the fiscal year for which 
                the determination is made.
          [(2) Construction.--Nothing in this subsection shall 
        diminish the responsibility of local educational 
        agencies 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) Relative enrollments under 
        subsection (a) 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 which serve the greatest 
        numbers or percentages of--
                  [(i) children living in areas with high 
                concentrations of low-income families;
                  [(ii) children from low-income families; or
                  [(iii) children living in sparsely populated 
                areas.
          [(B) 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 within the State's 
        local educational agencies based on the factors set 
        forth in subparagraph (A).
  [(c) Payment of Allocations.--
          [(1) Distribution.--From the funds paid to a State 
        educational agency pursuant to section 6002 for a 
        fiscal year, a State educational agency shall 
        distribute to each eligible local educational agency 
        which has submitted an application as required in 
        section 6202 the amount of such local educational 
        agency allocation as determined under subsection (a).
          [(2) Additional funds.--(A) 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), 
        may, at the discretion of the local educational agency, 
        be allocated for expenditures to provide services for 
        children enrolled in public and private nonprofit 
        schools in direct proportion to the number of children 
        described in subsection (a) and enrolled in such 
        schools within the local educational agency.
          [(B) 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 local 
        educational agency in such manner.
          [(C) The provisions of subparagraphs (A) and (B) may 
        not be construed to require any school to limit the use 
        of such additional funds to the provision of services 
        to specific students or categories of students.

                        [PART B--STATE PROGRAMS

[SEC. 6201. STATE USES OF FUNDS.

  [(a) Authorized Activities.--A State educational agency may 
use funds made available for State use under this title only 
for--
          [(1) State administration of programs under this 
        title including--
                  [(A) supervision of the allocation of funds 
                to local educational agencies;
                  [(B) planning, supervision, and processing of 
                State funds; and
                  [(C) monitoring and evaluation of programs 
                and activities under this title;
          [(2) support for planning, designing, and initial 
        implementation of charter schools as described in part 
        C of title X; and
          [(3) technical assistance and direct grants to local 
        educational agencies and statewide education reform 
        activities including effective schools programs which 
        assist local educational agencies to provide targeted 
        assistance.
  [(b) Limitations and Requirements.--Not more than 25 percent 
of funds available for State programs under this title in any 
fiscal year may be used for State administration under 
subsection (a)(1).

[SEC. 6202. STATE APPLICATIONS.

  [(a) Application Requirements.--Any State which desires to 
receive assistance under this part shall submit to the 
Secretary an application which--
          [(1) designates the State educational agency as the 
        State agency responsible for administration and 
        supervision of programs assisted under this title;
          [(2)(A) provides for a biennial submission of data on 
        the use of funds, the types of services furnished, and 
        the students served under this title; and
          [(B) in fiscal year 1998 provides for an evaluation 
        of the effectiveness of programs assisted under this 
        title;
          [(3) sets forth the allocation of such funds required 
        to implement section 6402;
          [(4) provides 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) provides assurance that, apart from technical 
        and advisory assistance and monitoring compliance with 
        this title, 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 
        under section 6303;
          [(6) contains assurances that there is compliance 
        with the specific requirements of this title; and
          [(7) provides for timely public notice and public 
        dissemination of the information provided pursuant to 
        paragraph (2).
  [(b) Period of Application.--An application filed by the 
State under subsection (a) shall be for a period not to exceed 
three years, and may be amended annually as may be necessary to 
reflect changes without filing a new application.
  [(c) Audit Rule.--Local educational agencies receiving less 
than an average of $5,000 each under this title shall not be 
audited more frequently than once every five years.

              [PART C--LOCAL INNOVATIVE EDUCATION PROGRAMS

[SEC. 6301. TARGETED USE OF FUNDS.

  [(a) General Rule.--Funds made available to local educational 
agencies under section 6102 shall be used for innovative 
assistance described in subsection (b).
  [(b) Innovative Assistance.--The innovative assistance 
programs referred to in subsection (a) include--
          [(1) technology related to the implementation of 
        school-based reform programs, including professional 
        development to assist teachers and other school 
        officials regarding how to use effectively such 
        equipment and software;
          [(2) programs for the acquisition and use of 
        instructional and educational materials, including 
        library services and materials (including media 
        materials), assessments, reference materials, computer 
        software and hardware for instructional use, and other 
        curricular materials which are tied to high academic 
        standards and which will be used to improve student 
        achievement and which are part of an overall education 
        reform program;
          [(3) promising education reform projects, including 
        effective schools and magnet schools;
          [(4) programs to improve the higher order thinking 
        skills of disadvantaged elementary and secondary school 
        students and to prevent students from dropping out of 
        school;
          [(5) programs to combat illiteracy in the student and 
        adult population, including parent illiteracy;
          [(6) programs to provide for the educational needs of 
        gifted and talented children;
          [(7) school reform activities that are consistent 
        with the Goals 2000: Educate America Act;
          [(8) planning, designing, and initial implementation 
        of charter schools as described in part C of title X; 
        and
          [(9) school improvement programs or activities under 
        sections 1116 and 1117.

[SEC. 6302. ADMINISTRATIVE AUTHORITY.

  [In order to conduct the activities authorized by this title, 
each State or local educational agency may use funds reserved 
for this title 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. 6303. LOCAL APPLICATIONS.

  [(a) Contents of Application.--A local educational agency or 
consortium of such agencies may receive an allocation of funds 
under this title for any year for which an application is 
submitted to the State educational agency and such application 
is certified to meet the requirements of this section. The 
State educational agency shall certify any such application if 
such application--
          [(1)(A) sets forth the planned allocation of funds 
        among innovative assistance programs described in 
        section 6301 and describes the programs, projects, and 
        activities designed to carry out such innovative 
        assistance which the local educational agency intends 
        to support, together with the reasons for the selection 
        of such programs, projects, and activities; and
          [(B) sets forth the allocation of such funds required 
        to implement section 6402;
          [(2) describes how assistance under this title will 
        contribute to meeting the National Education Goals and 
        improving student achievement or improving the quality 
        of education for students;
          [(3) provide assurances of compliance with the 
        provisions of this title, including the participation 
        of children enrolled in private, nonprofit schools in 
        accordance with section 6402;
          [(4) agrees to keep such records, and provide such 
        information to the State educational agency as 
        reasonably may be required for fiscal audit and program 
        evaluation, consistent with the responsibilities of the 
        State agency under this title; and
          [(5) provides in the allocation of funds for the 
        assistance authorized by this title, and in the design, 
        planning and implementation of such programs, for 
        systematic consultation with parents of children 
        attending elementary and secondary schools in the area 
        served by the local educational agency, with teachers 
        and administrative personnel in such schools, and with 
        other groups involved in the implementation of this 
        title (such as librarians, school counselors, and other 
        pupil services personnel) as may be considered 
        appropriate by the local educational agency.
  [(b) Period of Application.--An application filed by a local 
educational agency under subsection (a) shall be for a period 
not to exceed three fiscal years, may provide for the 
allocation of funds to programs for a period of three years, 
and may be amended annually as may be necessary to reflect 
changes without filing a new application.
  [(c) Local Educational Agency Discretion.--Subject to the 
limitations and requirements of this title, a local educational 
agency shall have complete discretion in determining how funds 
under this part shall be divided among the areas of targeted 
assistance. In exercising such discretion, a local educational 
agency shall ensure that expenditures under this part carry out 
the purposes of this title and are used to meet the educational 
needs within the schools of such local educational agency.

               [PART D--GENERAL ADMINISTRATIVE PROVISIONS

[SEC. 6401. MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY.

  [(a) Maintenance of Effort.--
          [(1) In general.--Except as provided in paragraph 
        (2), a State is entitled to receive its full allocation 
        of funds under this part 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 the allocation of funds under this part 
        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 one 
        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.
  [(b) Federal Funds Supplementary.--A State or local 
educational agency may use and allocate funds received under 
this part only so as to supplement and, to the extent 
practical, increase the level of funds that would, in the 
absence of Federal funds made available under this part, be 
made available from non-Federal sources, and in no case may 
such funds be used so as to supplant funds from non-Federal 
sources.

[SEC. 6402. 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 which is eligible to receive funds 
        under this title or which serves the area in which a 
        program or project assisted under this title is located 
        who are enrolled in private nonprofit elementary and 
        secondary schools, or with respect to instructional or 
        personnel training programs funded by the State 
        educational agency from funds made available for State 
        use, such agency, after consultation with appropriate 
        private school officials, shall provide for the benefit 
        of such children in such schools 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 the repair, minor 
        remodeling, or construction of public facilities as may 
        be necessary for their provision (consistent with 
        subsection (c) of this section), or, 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 title.
          [(2) Other provisions for services.--If no program or 
        project 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 such district are provided with services and 
        materials to the extent that would have occurred if the 
        local educational agency had received funds under this 
        title.
          [(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 and projects carried 
        out under this title by a State or local educational 
        agency, whether directly or through grants to or 
        contracts with other public or private agencies, 
        institutions, or organizations.
  [(b) Equal Expenditures.--Expenditures for programs pursuant 
to subsection (a) shall be equal (consistent with the number of 
children to be served) to expenditures for programs under this 
title for children enrolled in the public schools of the local 
educational agency, taking into account the needs of the 
individual children and other factors which relate to such 
expenditures, and when funds available to a local educational 
agency under this title are used to concentrate programs or 
projects on a particular group, attendance area, or grade or 
age level, children enrolled in private schools who are 
included within the group, attendance area, 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 or projects.
  [(c) Funds.--
          [(1) Administration of funds and property.--The 
        control of funds provided under this title, 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 title, and a public agency shall administer such 
        funds and property.
          [(2) Provision of services.--The provision of 
        services pursuant to this title shall be provided by 
        employees of a public agency or through contract by 
        such public agency with a person, an association, 
        agency, or corporation who or which, in the provision 
        of such services, is independent of such private school 
        and of any religious organizations, and such employment 
        or contract shall be under the control and supervision 
        of such public agency, and the funds provided under 
        this title shall not be commingled with State or local 
        funds.
  [(d) State Prohibition Waiver.--If by reason of any provision 
of law a State or local educational agency is prohibited from 
providing for the participation in programs of children 
enrolled in private elementary and secondary schools, as 
required by this section, the Secretary shall waive such 
requirements and shall arrange for the provision of services to 
such children through arrangements which shall be subject to 
the requirements of this section.
  [(e) Waiver and Provision of Services.--
          [(1) Failure to comply.--If the Secretary determines 
        that a State 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 and secondary schools as 
        required by this section, the Secretary may waive such 
        requirements and shall arrange for the provision of 
        services to such children through arrangements which 
        shall be subject to the requirements of this section.
          [(2) Withholding of allocation.--Pending final 
        resolution of any investigation or complaint that could 
        result in a determination under this subsection or 
        subsection (d), the Secretary may withhold from the 
        allocation of the affected State or local educational 
        agency the amount estimated by the Secretary to be 
        necessary to pay the cost of those services.
  [(f) 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 or local educational agency 
to meet the requirements of subsections (a) and (b).
  [(g) 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 such services, 
including the administrative costs of arranging for those 
services, from the appropriate allotment of the State under 
this title.
  [(h) Review.--
          [(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) Court action.--If a State 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. The Secretary thereupon shall file in 
        the court the record of the proceedings on which the 
        Secretary based this action, as provided in section 
        2112 of title 28, United States Code.
          [(3) Remand to secretary.--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 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 such petition, 
        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 of the United States 
        upon certiorari or certification as provided in section 
        1254 of title 28, United States Code.
  [(i) Prior Determination.--Any bypass determination by the 
Secretary under chapter 2 of title I of this Act (as such 
chapter was in effect on the day preceding the date of 
enactment of the Improving America's Schools Act of 1994) 
shall, to the extent consistent with the purposes of this 
title, apply to programs under this title.

[SEC. 6403. FEDERAL ADMINISTRATION.

  [(a) Technical Assistance.--The Secretary, upon request, 
shall provide technical assistance to State and local 
educational agencies under this title.
  [(b) Rulemaking.--The Secretary shall issue regulations under 
this title only to the extent that such regulations are 
necessary to ensure that there is compliance with the specific 
requirements and assurances required by this title.
  [(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 
activities under this title 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.]

                      TITLE [VIII] VI--IMPACT AID

SEC. [8001.] 6001. PURPOSE.

  In order to fulfill the Federal responsibility to assist with 
the provision of educational services to federally connected 
children in a manner that promotes control by local educational 
agencies with little or no Federal or State involvement, 
because certain activities of the Federal Government, such as 
activities to fulfill the responsibilities of the Federal 
Government with respect to Indian tribes and activities under 
section 514 of the Soldiers' and Sailors' Civil Relief Act of 
1940 (50 U.S.C. App. 574), place a financial burden on the 
local educational agencies serving areas where such activities 
are carried out, and to help such children meet challenging 
State standards, it is the purpose of this title to provide 
financial assistance to local educational agencies that--
          (1)  * * *

           *       *       *       *       *       *       *

SEC. [8002.] 6002. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL 
                    PROPERTY.

  (a) In General.--Where the Secretary, after consultation with 
any local educational agency and with the appropriate State 
educational agency, determines for a fiscal year ending prior 
to October 1, 2003--
          (1)  * * *

           *       *       *       *       *       *       *

  (b) Amount.--
          (1) In general.--(A)  * * *
          (B) If funds appropriated under section [8014] 
        6013(a) are insufficient to pay the amount determined 
        under subparagraph (A), the Secretary shall calculate 
        the payment for each eligible local educational agency 
        in accordance with subsection (h).
          (C) Notwithstanding any other provision of this 
        subsection, a local educational agency may not be paid 
        an amount under this section that, when added to the 
        amount such agency receives under section [8003] 
        6003(b), exceeds the maximum amount that such agency is 
        eligible to receive for such fiscal year under section 
        [8003] 6003(b)(1)(C), or the maximum amount that such 
        agency is eligible to receive for such fiscal year 
        under this section, whichever is greater.

           *       *       *       *       *       *       *

  (f) Special Rule.--(1)  * * *

           *       *       *       *       *       *       *

          (4) For the purposes of payments under this section 
        for each fiscal year beginning with fiscal year 2000, 
        the Secretary shall treat the Hot Springs, South Dakota 
        local educational agency as if it had filed a timely 
        application under section [8002] 6002 of the Elementary 
        and Secondary Education Act of 1965 for fiscal year 
        1994 if the Secretary has received the fiscal year 1994 
        application, as well as Exhibits A and B not later than 
        December 1, 1999.
          (5) For purposes of payments under this section for 
        each fiscal year beginning with fiscal year 2000, the 
        Secretary shall treat the Hueneme, California local 
        educational agency as if it had filed a timely 
        application under section [8002] 6002 of the Elementary 
        and Secondary Education Act of 1965 if the Secretary 
        has received the fiscal year 1995 application not later 
        than December 1, 1999.
  (g) Former Districts.--
          (1) In general.--Where the school district of any 
        local educational agency described in paragraph (2) is 
        formed at any time after 1938 by the consolidation of 
        two or more former school districts, such agency may 
        elect (at any time such agency files an application 
        under section [8005] 6005) for any fiscal year after 
        fiscal year 1994 to have (A) the eligibility of such 
        local educational agency, and (B) the amount which such 
        agency shall be eligible to receive, determined under 
        this section only with respect to such of the former 
        school districts comprising such consolidated school 
        districts as such agency shall designate in such 
        election.
          (2) Eligible local educational agencies.--A local 
        educational agency referred to in paragraph (1) is any 
        local 
        educational agency that, for fiscal year 1994 or any 
        preceding fiscal year, applied for and was determined 
        eligible under section 2(c) of the Act of September 30, 
        1950 (Public Law 874, 81st Congress) as such section 
        was in effect for such fiscal year.
  (h) Payments With Respect to Fiscal Years in Which 
Insufficient Funds Are Appropriated.--For any fiscal year for 
which the amount appropriated under section [8014] 6013(a) is 
insufficient to pay to each eligible local educational agency 
the full amount determined under subsection (b), the Secretary 
shall make payments to each local educational agency under this 
section as follows:
          (1) Foundation payments for pre-1995 recipients.--
                  (A) In general.--The Secretary shall first 
                make a foundation payment to each local 
                educational agency that is eligible to receive 
                a payment under this section for the fiscal 
                year involved [and was eligible to receive a 
                payment under section 2 of the Act of September 
                30, 1950] and that filed, or has been 
                determined pursuant to statute to have filed a 
                timely application, and 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 (Public Law 
                874, 81st Congress) (as such section was in 
                effect on the day preceding the date of the 
                enactment of the Improving America's Schools 
                Act of 1994) for any of the fiscal years 1989 
                through 1994.
                  (B) Amount.--The amount of a payment under 
                subparagraph (A) for a local educational agency 
                shall be equal to 38 percent of the local 
                educational agency's maximum entitlement amount 
                under section 2 of the Act of September 30, 
                1950, for fiscal year 1994 [(or if the local 
                educational agency was not eligible to receive 
                a payment under such section 2 for fiscal year 
                1994] (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, the 
                local educational agency's maximum entitlement 
                amount under such section 2 for the most recent 
                fiscal year preceding 1994).
                  (C) Insufficient appropriations.--If the 
                amount appropriated under section [8014] 
                6013(a) is insufficient to pay the full amount 
                determined under this paragraph for all 
                eligible local educational agencies for the 
                fiscal year, then the Secretary shall ratably 
                reduce the payment to each local educational 
                agency under this paragraph.
          (2) Payments for 1995 recipients.--
                  (A) In general.--From any amounts remaining 
                after making payments under paragraph (1) for 
                the fiscal year involved, the Secretary shall 
                make a payment to each eligible local 
                educational agency that received a payment 
                under this section for fiscal year 1995, or 
                whose application for fiscal year 1995 was 
                determined pursuant to statute to be timely 
                filed for purposes of payments for subsequent 
                fiscal years.
                  (B) Amount.--The amount of a payment under 
                subparagraph (A) for a local educational agency 
                shall be determined as follows:
                          (i) Calculate the difference between 
                        the amount appropriated to carry out 
                        this section for fiscal year 1995 and 
                        the total amount of foundation payments 
                        made under paragraph (1) for the fiscal 
                        year.
                          (ii) Determine the percentage share 
                        [for each local educational agency that 
                        received a payment under this section 
                        for fiscal year 1995] for each local 
                        educational agency described in 
                        subparagraph (A) by dividing the 
                        assessed value of the Federal property 
                        of the local educational agency for 
                        fiscal year 1995 determined in 
                        accordance with subsection (b)(3), by 
                        the total eligible national assessed 
                        value of the eligible Federal property 
                        of all such local educational agencies 
                        for fiscal year 1995, as so determined.
                          (iii) Multiply the percentage share 
                        described in clause (ii) for the local 
                        educational agency by the amount 
                        determined under clause (i).
          (3) Subsection (i) recipients.--From any funds 
        remaining after making payments under paragraphs (1) 
        and (2) for the fiscal year involved, the Secretary 
        shall make payments in accordance with subsection (i).
          (4) Remaining funds.--From any funds remaining after 
        making payments under paragraphs (1), (2), and (3) for 
        the fiscal year involved--
                  (A)  * * *
                  (B) the Secretary shall make a payment to 
                each local educational agency that is eligible 
                to receive a payment under this section for the 
                fiscal year involved in an amount that bears 
                the same relation to 75 percent of the 
                remainder as a percentage share determined for 
                the local educational agency [(in the same 
                manner as percentage shares are determined for 
                local educational agencies under paragraph 
                (2)(B)(ii))] (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) bears to the 
                percentage share determined (in the same 
                manner) for all local educational agencies 
                eligible to receive a payment under this 
                section for the fiscal year involved[, except 
                that for the purpose of calculating a local 
                educational agency's assessed value of the 
                Federal property], except that, for purposes of 
                calculating a local educational agency's 
                maximum amount under subsection (b), data from 
                the most current fiscal year shall be used.

           *       *       *       *       *       *       *

  (j) Additional Assistance for Certain Local Educational 
Agencies Impacted by Federal Property Acquisition.--
          (1) Reservation.--From amounts appropriated under 
        section [8014] 6013(g) for a fiscal year, the Secretary 
        shall provide additional assistance to meet special 
        circumstances relating to the provision of education in 
        local educational agencies eligible to receive 
        assistance under this section.
          (2) Eligibility.--A local educational agency is 
        eligible to receive additional assistance under this 
        subsection only if such agency--
                  (A) received a payment under both this 
                section and section [8003] 6003(b) for fiscal 
                year 1996 and is eligible to receive payments 
                under those sections for the year of 
                application;
                  (B) provided a free public education to 
                children described under sections [8003] 
                6003(a)(1)(A), (B), or (D);

           *       *       *       *       *       *       *

          (3) Maximum amount.--(A)  * * *
          (B) If funds appropriated under section [8014] 
        6013(g) are insufficient to pay the amount determined 
        under subparagraph (A), the Secretary shall ratably 
        reduce the payment to each local education agency 
        eligible under this subsection;
          (C) If funds appropriated under section [8014] 
        6013(g) are in excess of the amount determined under 
        subparagraph (A) the Secretary shall ratably distribute 
        any excess funds to all local educational agencies 
        eligible for payment under subsection (b) of this 
        section.

           *       *       *       *       *       *       *

SEC. [8003.] 6003. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

  (a)  * * *
  (b) Basic Support Payments and Payments With Respect to 
Fiscal Years in Which Insufficient Funds Are Appropriated.--
          (1) Basic support payments.--
                  (A) In general.--From the amount appropriated 
                under section [8014] 6013(b) for a fiscal year, 
                the Secretary is authorized to make basic 
                support payments to eligible local educational 
                agencies with children described in subsection 
                (a).

           *       *       *       *       *       *       *

          (2) Basic Support Payments for Heavily Impacted Local 
        Educational Agencies.--
                  (A) In general.--(i) From the amount 
                appropriated under section [8014] 6013(b) for a 
                fiscal year, the Secretary is authorized to 
                make basic support payments to eligible heavily 
                impacted local educational agencies with 
                children described in subsection (a).

           *       *       *       *       *       *       *

          (3) Payments with respect to fiscal years in which 
        insufficient funds are appropriated.--
                  (A) In general.--For any fiscal year in which 
                the sums appropriated under section [8014] 
                6013(b) are insufficient to pay to each local 
                educational agency the full amount computed 
                under paragraphs (1) and (2), the Secretary 
                shall make payments in accordance with this 
                paragraph.
                  (B) Learning opportunity threshold payments 
                in lieu of payments under paragraph (1).--(i)  
                * * *

           *       *       *       *       *       *       *

                  (iv) In the case of a local educational 
                agency that has a total student enrollment of 
                fewer than 1,000 students and that has a per-
                pupil expenditure that is less than the average 
                per-pupil expenditure of the State in which the 
                agency is located or less than the average per 
                pupil expenditure of all the States, the total 
                percentage used to calculate threshold payments 
                under clause (i) shall not be less than 40 
                percent.

           *       *       *       *       *       *       *

  (d) Children With Disabilities.--
          (1) In general.--From the amount appropriated under 
        section [8014] 6013(c) for a fiscal year, the Secretary 
        shall pay to each eligible local educational agency, on 
        a pro rata basis, the amounts determined by--
                  (A)  * * *

           *       *       *       *       *       *       *

  (g) Maintenance of Effort.--A local educational agency may 
receive funds under sections [8002] 6002 and [8003] 6003(b) for 
any fiscal year only if the State educational agency finds that 
either the 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 that agency for the 
preceding fiscal year was not less than 90 percent of such 
combined fiscal effort or aggregate expenditures for the second 
preceding fiscal year.

SEC. [8004.] 6004. POLICIES AND PROCEDURES RELATING TO CHILDREN 
                    RESIDING ON INDIAN LANDS.

  (a) In General.--A local educational agency that claims 
children residing on Indian lands for the purpose of receiving 
funds under section [8003] 6003 shall establish policies and 
procedures to ensure that--
          (1)  * * *

           *       *       *       *       *       *       *

  (b) Records.--A local educational agency that claims children 
residing on Indian lands for the purpose of receiving funds 
under section [8003] 6003 shall maintain records demonstrating 
such agency's compliance with the requirements contained in 
subsection (a).
  (c) Waiver.--A local educational agency that claims children 
residing on Indian lands for the purpose of receiving funds 
under section [8003] 6003 shall not be required to comply with 
the requirements of subsections (a) and (b) for any fiscal year 
with respect to any Indian tribe from which such agency has 
received a written statement that the agency need not comply 
with those subsections because the tribe is satisfied with the 
provision of educational services by such agency to such 
children.

           *       *       *       *       *       *       *

  (e) Complaints.--
          (1)  * * *

           *       *       *       *       *       *       *

          (8) Withholding.--If the local educational agency 
        rejects the determination of the Secretary, or if the 
        remedy required is not undertaken within the time 
        established and the Secretary determines that an 
        extension of the time established will not effectively 
        encourage the remedy required, the Secretary shall 
        withhold payment of all moneys to which such local 
        agency is eligible under section [8003] 6003 until such 
        time as the remedy required is undertaken, except where 
        the complaining tribe or its designee formally requests 
        that such funds be released to the local educational 
        agency, except that the Secretary may not withhold such 
        moneys during the course of the school year if the 
        Secretary determines that such withholding would 
        substantially disrupt the educational programs of the 
        local educational agency.
          (9) Rejection of determination.--If the local 
        educational agency rejects the determination of the 
        Secretary and a tribe exercises the option under 
        section 1101(d) of the Education Amendments of 1978, to 
        have education services provided either directly by the 
        Bureau of Indian Affairs or by contract with the Bureau 
        of Indian Affairs, any Indian students affiliated with 
        that tribe who wish to remain in attendance at the 
        local educational agency against whom the complaint 
        which led to the tribal action under such subsection 
        (d) was lodged may be counted with respect to that 
        local educational agency for the purpose of receiving 
        funds under section [8003] 6003. In such event, funds 
        under such section shall not be withheld pursuant to 
        paragraph (8) and no further complaints with respect to 
        such students may be filed under paragraph (1).
  (f) Construction.--This section is based upon the special 
relationship between the Indian nations and the United States 
and nothing in this section shall be construed to relieve any 
State of any duty with respect to any citizens of that State.

SEC. [8005.] 6005. APPLICATION FOR PAYMENTS UNDER SECTIONS [8002 AND 
                    8003] 6002 AND 6003.

  (a) In General.--A local educational agency desiring to 
receive a payment under section [8002] 6002 or [8003] 6003 
shall--
          (1) submit an application for such payment to the 
        Secretary; and
          (2) provide a copy of such application to the State 
        educational agency.
  (b) Contents.--Each such application shall be submitted in 
such form and manner, and shall contain such information, as 
the Secretary may require, including--
          (1)  * * *
          (2) where applicable, an assurance that such agency 
        is in compliance with section [8004] 6004 (relating to 
        children residing on Indian lands).
  (c) Deadline for Submission.--The Secretary shall establish 
deadlines for the submission of applications under this 
section.
  (d) Approval.--
          (1)  * * *
          (2) Reduction in payment.--The Secretary shall 
        approve an application filed not more than 60 days 
        after a deadline established under subsection (c), or 
        not more than 60 days after the date on which the 
        Secretary sends written notice to the local educational 
        agency pursuant to paragraph (3)(A), as the case may 
        be, that otherwise meets the requirements of this 
        title, except that, notwithstanding section [8003] 
        6003(e), the Secretary shall reduce the payment based 
        on such late application by 10 percent of the amount 
        that would otherwise be paid.
          (3) Late applications.--
                  (A) Notice.--The Secretary shall, as soon as 
                practicable after the deadline established 
                under subsection (c), provide to each local 
                educational agency that applied for a payment 
                under section [8002] 6002 or [8003] 6003 for 
                the prior fiscal year, and with respect to 
                which the Secretary has not received an 
                application for a payment under either such 
                section (as the case may be) for the fiscal 
                year in question, written notice of the failure 
                to comply with the deadline and instruction to 
                ensure that the application is filed not later 
                than 60 days after the date on which the 
                Secretary sends the notice.

           *       *       *       *       *       *       *

SEC. [8007.] 6006. CONSTRUCTION.

  (a) Construction Payments Authorized.--
          (1) In general.--From 40 percent of the amount 
        appropriated for each fiscal year under section [8014] 
        6013(e), the Secretary shall make payments in 
        accordance with this subsection to each local 
        educational agency that receives a basic support 
        payment under section [8003] 6003(b) for that fiscal 
        year.
          (2) Additional requirements.--A local educational 
        agency that receives a basic support payment under 
        section [8003] 6003(b)(1) shall also meet at least one 
        of the following requirements:
                  (A) The number of children determined under 
                section [8003] 6003(a)(1)(C) for the agency for 
                the preceding school year constituted at least 
                50 percent of the total student enrollment in 
                the schools of the agency during the preceding 
                school year.
                  (B) The number of children determined under 
                subparagraphs (B) and (D)(i) of section [8003] 
                6003(a)(1) for the agency for the preceding 
                school year constituted at least 50 percent of 
                the total student enrollment in the schools of 
                the agency during the preceding school year.
          (3) Amount of payments.--
                  (A) Local educational agencies impacted by 
                military dependent children.--The amount of a 
                payment to each local educational agency 
                described in this subsection that is impacted 
                by military dependent children for a fiscal 
                year shall be equal to--
                          (i)(II) 20 percent of the amount 
                        appropriated under section [8014] 
                        6013(e) for such fiscal year; divided 
                        by
                          (II) the total number of weighted 
                        student units of children described in 
                        subparagraphs (B) and (D)(i) of section 
                        [8003] 6003(a)(1) for all local 
                        educational agencies described in this 
                        subsection (as calculated under section 
                        [8003] 6003(a)(2)), including the 
                        number of weighted student units of 
                        such children attending a school 
                        facility described in section [8008] 
                        6007(a) if the Secretary does not 
                        provide assistance for the school 
                        facility under that section for the 
                        prior fiscal year; multiplied by
                          (ii) the total number of such 
                        weighted student units for the agency.
                  (B) Local educational agencies impacted by 
                children who reside on indian lands.--The 
                amount of a payment to each local educational 
                agency described in this subsection that is 
                impacted by children who reside on Indian lands 
                for a fiscal year shall be equal to--
                          (i)(I) 20 percent of the amount 
                        appropriated under section [8014] 
                        6013(e) for such fiscal year; divided 
                        by
                          (II) the total number of weighted 
                        student units of children described in 
                        section [8003] 6003(a)(1)(C) for all 
                        local educational agencies described in 
                        this subsection (as calculated under 
                        section [8003] 6003(a)(2)); multiplied 
                        by
                          (ii) the total number of such 
                        weighted student units for the agency.
          (4) Use of funds.--Any local educational agency that 
        receives funds under this subsection shall use such 
        funds for construction, as defined in section [8013] 
        6012(3).
  [(b) School Facility Modernization Grants Authorized.--
          [(1) In general.--From 60 percent of the amount 
        appropriated for each fiscal year under section 
        8014(e), the Secretary shall award grants in accordance 
        with this subsection to eligible local educational 
        agencies to enable the local educational agencies to 
        carry out modernization of school facilities.
          [(2) Eligibility requirements.--A local educational 
        agency is eligible to receive funds under this 
        subsection only if--
                  [(A) such agency (or in the case of a local 
                educational agency that does not have the 
                authority to tax or issue bonds, such agency's 
                fiscal agent) has no capacity to issue bonds or 
                is at such agency's limit in bonded 
                indebtedness for the purposes of generating 
                funds for capital expenditures, except that a 
                local educational agency that is eligible to 
                receive funds under section 8003(b)(2) shall be 
                deemed to meet the requirements of this 
                subparagraph; and
                  [(B)(i) such agency received assistance under 
                section 8002(a) for the fiscal year and has an 
                assessed value of taxable property per student 
                in the school district that is less than the 
                average of the assessed value of taxable 
                property per student in the State in which the 
                local educational agency is located; or
                  [(ii) such agency received 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.
          [(3) Award criteria.--In awarding grants under this 
        subsection the Secretary shall consider one or more of 
        the following factors:
                  [(A) The extent to which the local 
                educational agency lacks the fiscal capacity to 
                undertake the modernization project without 
                Federal assistance.
                  [(B) The extent to which property in the 
                local educational agency is nontaxable due to 
                the presence of the Federal Government.
                  [(C) The extent to which the local 
                educational agency serves high numbers or 
                percentages of children described in 
                subparagraphs (A), (B), (C), and (D) of section 
                8003(a)(1).
                  [(D) The need for modernization to meet--
                          [(i) the threat that the condition of 
                        the school facility poses to the 
                        health, safety, and well-being of 
                        students;
                          [(ii) overcrowding conditions as 
                        evidenced by the use of trailers and 
                        portable buildings and the potential 
                        for future overcrowding because of 
                        increased enrollment; and
                          [(iii) facility needs resulting from 
                        actions of the Federal Government.
                  [(E) The age of the school facility to be 
                modernized.
          [(4) Other award provisions.--
                  [(A) Federal share.--The Federal funds 
                provided under this subsection to a local 
                educational agency described in subparagraph 
                (C) shall not exceed 50 percent of the total 
                cost of the project to be assisted under this 
                subsection. A local educational agency may use 
                in-kind contributions to meet the matching 
                requirement of the preceding sentence.
                  [(B) Maximum grant.--A local educational 
                agency described in subparagraph (C) may not 
                receive a grant under this subsection in an 
                amount that exceeds $3,000,000 during any 5-
                year period.
                  [(C) Local educational agency described.--A 
                local educational agency described in this 
                subparagraph is a local educational agency that 
                has the authority to issue bonds but is at such 
                agency's limit in bonded indebtedness for the 
                purposes of generating funds for capital 
                expenditures.
          [(5) Applications.--A local educational agency that 
        desires to receive 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 require. Each application shall contain--
                  [(A) documentation certifying such agency's 
                lack of bonding capacity;
                  [(B) 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;
                  [(C) 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 any school facility 
                deficiency that poses a health or safety hazard 
                to the occupants of the school facility and a 
                description of how that deficiency will be 
                repaired;
                  [(E) a description of the modernization to be 
                supported with funds provided under this 
                subsection;
                  [(F) a cost estimate of the proposed 
                modernization; and
                  [(G) such other information and assurances as 
                the Secretary may reasonably require.
          [(6) Emergency grants.--
                  [(A) Applications.--Each local educational 
                agency described in paragraph (2)(B)(ii) that 
                desires a grant under this subsection shall 
                include in the application submitted under 
                paragraph (5) a signed statement from an 
                appropriate local official certifying that a 
                health or safety deficiency exists.
                  [(B) Priority.--If the Secretary receives 
                more than one application from local 
                educational agencies described in paragraph 
                (2)(B)(ii) for grants under this subsection for 
                any fiscal year, the Secretary shall give 
                priority to local educational agencies based on 
                the severity of the emergency, as determined by 
                the Secretary, and when the application was 
                received.
                  [(C) Allocation; reporting requirement.--
                          [(i) Allocation.--In awarding grants 
                        under this subsection to local 
                        educational agencies described in 
                        paragraph (2)(B)(ii), the Secretary 
                        shall consider all applications 
                        received from local educational 
                        agencies that meet the requirement of 
                        subsection (a)(2)(A) and local 
                        educational agencies that meet the 
                        requirement of subsection (a)(2)(B).
                          [(ii) Reporting requirement.--
                                  [(I) 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.
                                  [(II) Definition.--In this 
                                clause, the term ``appropriate 
                                congressional committees'' 
                                means the Committee on 
                                Appropriations and the 
                                Committee on Education and the 
                                Workforce of the House of 
                                Representatives and the 
                                Committee on Appropriations and 
                                the Committee on Health, 
                                Education, Labor and Pensions 
                                of the Senate.
                  [(D) Consideration for following year.--A 
                local educational agency described in paragraph 
                (2)(B)(ii) that applies for a grant under this 
                subsection for any fiscal year and does not 
                receive the grant shall have the application 
                for the grant considered for the following 
                fiscal year, subject to the priority described 
                in subparagraph (B).
          [(7) Supplement not supplant.--An eligible local 
        educational agency shall use funds received under this 
        subsection only to supplement the amount of funds that 
        would, in the absence of such Federal funds, be made 
        available from non-Federal sources for the 
        modernization of school facilities used for educational 
        purposes, and not to supplant such funds.]
  (b) School Facility Emergency and Modernization Grants 
Authorized.--
          (1) In general.--From 60 percent of the amount 
        appropriated for each fiscal year under section 
        6013(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 for 
        emergency grants and, among such applications for 
        emergency grants, shall give priority to those 
        applications of local educational agencies based on the 
        severity of the emergency.
          (3) Eligibility requirements.--
                  (A) Emergency grants.--A local educational 
                agency is eligible to receive an emergency 
                grant under this subsection only if--
                          (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 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 
                                6003(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 this subsection only 
                if--
                          (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) meets 
                        the requirements of subclause (I), 
                        (II), or (III) of subparagraph (A)(i);
                          (ii) the agency is eligible to 
                        receive assistance under section 6002 
                        for the fiscal year and 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; 
                        and
                          (iii) the agency has facility needs 
                        resulting from actions of the Federal 
                        Government, such as enrollment 
                        increases due to the expansion of 
                        Federal activities, housing 
                        privatization, or the acquisition of 
                        Federal property.
                  (C) 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
                          (ii) has minimal capacity to issue 
                        bonds if the total assessed value of 
                        real property that may be taxed for 
                        school purposes is not less than 
                        $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 section 8007(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 6003(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
                                  (II) the agency's inability 
                                to maximize the use of 
                                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)--
                                          (aa) shall not exceed 
                                        50 percent of the total 
                                        cost of the project to 
                                        be assisted under this 
                                        subsection; and
                                          (bb) shall not exceed 
                                        $3,000,000 during any 
                                        5-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; or
                                  (II) stadiums or other 
                                facilities primarily used for 
                                athletic contests, exhibitions, 
                                or other events for which 
                                admission is charged to the 
                                general public.
                          (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.
                  (B) Emergency grants.--
                          (i) 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 replacement is 
                        less expensive or more cost-effective 
                        to correct the identified emergency.
                          (ii) Carry-over of certain 
                        applications.--In the case of a local 
                        educational agency that applies for an 
                        emergency grant under this subsection 
                        for a fiscal year and does not receive 
                        the grant for the fiscal year, the 
                        Secretary--
                                  (I) shall, upon the request 
                                of the agency, treat the 
                                application as an application 
                                for an emergency grant under 
                                this subsection for the 
                                subsequent fiscal year in 
                                accordance with the priority 
                                requirements of paragraph (2); 
                                and
                                  (II) shall allow the agency 
                                to amend or otherwise update 
                                the application, as 
                                appropriate.
          (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) 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; and
                          (ii) the date on which original 
                        construction of the facility to be 
                        modernized was completed.
                  (D) A description of the project for which a 
                grant under this subsection would 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) 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
                          (ii) the Committee on Appropriations 
                        and the Committee on Health, Education, 
                        Labor and Pensions of the Senate.

SEC. [8008.] 6007. FACILITIES.

  (a) Current Facilities.--From the amount appropriated for any 
fiscal year under section [8014] 6013(f), the Secretary may 
continue to provide assistance for school facilities that were 
supported by the Secretary under section 10 of the Act of 
September 23, 1950 (Public Law 815, 81st Congress) (as such Act 
was in effect on the day preceding the date of the enactment of 
the Improving America's Schools Act of 1994).

           *       *       *       *       *       *       *

SEC. [8009.] 6008. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE 
                    AID.

  (a) General Prohibition.--Except as provided in subsection 
(b), a State may not--
          (1) consider payments under this title in determining 
        for any fiscal year--
                  (A) the eligibility of a local educational 
                agency for State aid for free public education; 
                or
                  (B) the amount of such aid; or
          (2) make such aid available to local educational 
        agencies in a manner that results in less State aid to 
        any local educational agency that is eligible for such 
        payment than such agency would receive if such agency 
        were not so eligible.
  (b) State Equalization Plans.--
          (1) In general.--A State may reduce State aid to a 
        local educational agency that receives a payment under 
        section [8002] 6002 or [8003] 6003(b) (except the 
        amount calculated in excess of 1.0 under section [8003] 
        6003(a)(2)(B) and, with respect to a local educational 
        agency that receives a payment under section [8003] 
        6003(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] 6003(b)(1) and not section [8003] 6003(b)(2)) 
        for any fiscal year if the Secretary determines, and 
        certifies under subsection (c)(3)(A), that the State 
        has in effect a program of State aid that equalizes 
        expenditures for free public education among local 
        educational agencies in the State.

           *       *       *       *       *       *       *

  (c) Procedures for Review of State Equalization Plans.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Qualification procedures.--If the Secretary 
        determines that a program of State aid qualifies under 
        subsection (b), the Secretary shall--
                  (A) certify the program and so notify the 
                State; and
                  (B) afford an opportunity for a hearing, in 
                accordance with section [8011] 6010(a), to any 
                local educational agency adversely affected by 
                such certification.
          (4) Non-qualification procedures.--If the Secretary 
        determines that a program of State aid does not qualify 
        under subsection (b), the Secretary shall--
                  (A) so notify the State; and
                  (B) afford an opportunity for a hearing, in 
                accordance with section [8011] 6010(a), to the 
                State, and to any local educational agency 
                adversely affected by such determination.

           *       *       *       *       *       *       *

SEC. [8010.] 6009. FEDERAL ADMINISTRATION.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Special Rules.--
          (1) Certain children eligible under subparagraphs (a) 
        and (g)(ii) of section [8003] 6003(a)(1).--(A) The 
        Secretary shall treat as eligible under subparagraph 
        (A) of section [8003] 6003(a)(1) any child who would be 
        eligible under such subparagraph except that the 
        Federal property on which the child resides or on which 
        the child's parent is employed is not in the same State 
        in which the child attends school, if such child meets 
        the requirements of paragraph (3) of this subsection.
          (B) The Secretary shall treat as eligible under 
        subparagraph (G) of section [8003] 6003(a)(1) any child 
        who would be eligible under such subparagraph except 
        that such child does not meet the requirements of 
        clause (ii) of such subparagraph, if such child meets 
        the requirements of paragraph (3) of this subsection.
          (2) Requirements.--A child meets the requirements of 
        this paragraph if--
                  (A) such child resides--
                          (i) in a State adjacent to the State 
                        in which the local educational agency 
                        serving the school such child attends 
                        is located; or
                          (ii) with a parent employed on 
                        Federal property in a State adjacent to 
                        the State in which such agency is 
                        located;
                  (B) the schools of such agency are within a 
                more reasonable commuting distance of such 
                child's home than the schools of the local 
                educational agency that serves the school 
                attendance area where such child resides;
                  (C) attending the schools of the local 
                educational agency that serves the school 
                attendance area where such child resides will 
                impose a substantial hardship on such child;
                  (D) the State in which such child attends 
                school provides funds for the education of such 
                child on the same basis as all other public 
                school children in the State, unless otherwise 
                permitted under section [8009] 6008(b) of this 
                title; and
                  (E) such agency received a payment for fiscal 
                year 1999 under section [8003] 6003(b) on 
                behalf of children described in paragraph (1).

SEC. [8011.] 6010. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

  (a) Administrative Hearings.--A local educational agency and 
a State that is adversely affected by any action of the 
Secretary under this title or under the Act of September 30, 
1950 (Public Law 874, 81st Congress) (as such Act was in effect 
on the day preceding the date of enactment of the Improving 
America's Schools Act of 1994) shall be entitled to a hearing 
on such action in the same manner as if such agency were a 
person under chapter 5 of title 5, United States Code if the 
local educational agency or State, as the case may be, submits 
to the Secretary a request for the hearing not later than 60 
days after the date of the action of the Secretary under this 
title.

           *       *       *       *       *       *       *

SEC. [8012.] 6011. FORGIVENESS OF OVERPAYMENTS.

  Notwithstanding any other provision of law, the Secretary may 
forgive the obligation of a local educational agency to repay, 
in whole or in part, the amount of any overpayment received 
under this title, or under this title's predecessor 
authorities, if the Secretary determines that the overpayment 
was made as a result of an error made by--
          (1) the Secretary; or
          (2) the local educational agency and repayment of the 
        full amount of the overpayment will result in an undue 
        financial hardship on the agency and seriously harm the 
        agency's educational program.

SEC. [8013.] 6012. DEFINITIONS.

  For purposes of this title:
          (1)  * * *

           *       *       *       *       *       *       *

SEC. [8014.] 6013. AUTHORIZATION OF APPROPRIATIONS.

  (a) Payments for Federal Acquisition of Real Property.--For 
the purpose of making payments under section [8002] 6002, there 
are authorized to be appropriated $32,000,000 for fiscal year 
2000 and such sums as may be necessary for each of the [three] 
six succeeding fiscal years.
  (b) Basic Payments; Payments for Heavily Impacted Local 
Educational Agencies.--For the purpose of making payments under 
section [8003] 6003(b), there are authorized to be appropriated 
$809,400,000 for fiscal year 2000 and such sums as may be 
necessary for each of the [three] six succeeding fiscal years.
  (c) Payments for Children With Disabilities.--For the purpose 
of making payments under section [8003] 6003(d), there are 
authorized to be appropriated $50,000,000 for fiscal year 2000 
and such sums as may be necessary for each of the [three] six 
succeeding fiscal years.
  (e) Construction.--For the purpose of carrying out section 
8007, there are authorized to be appropriated $10,052,000 for 
fiscal year 2000 and such sums as may be necessary [for each of 
the three succeeding fiscal years] for fiscal year 2001, 
$150,000,000 for fiscal year 2002, and such sums as may be 
necessary for each of the four succeeding fiscal years.
  (f) Facilities Maintenance.--For the purpose of carrying out 
section [8008] 6007, there are authorized to be appropriated 
$5,000,000 for fiscal year 2000 and such sums as may be 
necessary for each of the [three] six succeeding fiscal years.
  (g) Additional Assistance for Certain Local Educational 
Agencies Impacted by Federal Property Acquisition.--For the 
purpose of carrying out section [8002] 6002(j) there are 
authorized to be appropriated $1,500,000 for fiscal year 2000 
and such sums as may be necessary for each of the [three] six 
succeeding fiscal years.

  [TITLE VII--BILINGUAL EDUCATION, LANGUAGE ENHANCEMENT, AND LANGUAGE 
                          ACQUISITION PROGRAMS

                      [PART A--BILINGUAL EDUCATION

[SEC. 7101. SHORT TITLE.

  [This part may be cited as the ``Bilingual Education Act''.

[SEC. 7102. FINDINGS, POLICY, AND PURPOSE.

  [(a) Findings.--The Congress finds that--
          [(1) language-minority Americans speak virtually all 
        world languages plus many that are indigenous to the 
        United States;
          [(2) there are large and growing numbers of children 
        and youth of limited-English proficiency, many of whom 
        have a cultural heritage that differs from that of 
        their English-proficient peers;
          [(3) the presence of language-minority Americans is 
        related in part to Federal immigration policies;
          [(4) many language-minority Americans are limited in 
        their English proficiency, and many have limited 
        education and income;
          [(5) limited English proficient children and youth 
        face a number of challenges in receiving an education 
        that will enable such children and youth to participate 
        fully in American society, including--
                  [(A) segregated education programs;
                  [(B) disproportionate and improper placement 
                in special education and other special programs 
                due to the use of inappropriate evaluation 
                procedures;
                  [(C) the limited-English proficiency of their 
                own parents, which hinders the parents' ability 
                to fully participate in the education of their 
                children; and
                  [(D) a shortage of teachers and other staff 
                who are professionally trained and qualified to 
                serve such children and youth;
          [(6) Native Americans and Native American languages 
        (as such terms are defined in section 103 of the Native 
        American Languages Act), including native residents of 
        the outlying areas, have a unique status under Federal 
        law that requires special policies within the broad 
        purposes of this Act to serve the education needs of 
        language minority students in the United States;
          [(7) institutions of higher education can assist in 
        preparing teachers, administrators and other school 
        personnel to understand and build upon the educational 
        strengths and needs of language-minority and culturally 
        diverse student enrollments;
          [(8) it is the purpose of this title to help ensure 
        that limited English proficient students master English 
        and develop high levels of academic attainment in 
        content areas;
          [(9) quality bilingual education programs enable 
        children and youth to learn English and meet high 
        academic standards including proficiency in more than 
        one language;
          [(10) as the world becomes increasingly 
        interdependent and as international communication 
        becomes a daily occurrence in government, business, 
        commerce, and family life, multilingual skills 
        constitute an important national resource which 
        deserves protection and development;
          [(11) educational technology has the potential for 
        improving the education of language-minority and 
        limited English proficient students and their families, 
        and the Federal Government should foster this 
        development;
          [(12) parent and community participation in bilingual 
        education programs contributes to program 
        effectiveness;
          [(13) research, evaluation, and data-collection 
        capabilities in the field of bilingual education need 
        to be strengthened so that educators and other staff 
        can better identify and promote those programs, program 
        implementation strategies, and instructional practices 
        that result in effective education of limited English 
        proficient children;
          [(14) the use of a child or youth's native language 
        and culture in classroom instruction can--
                  [(A) promote self-esteem and contribute to 
                academic achievement and learning English by 
                limited English proficient children and youth;
                  [(B) benefit English-proficient children and 
                youth who also participate in such programs; 
                and
                  [(C) develop our Nation's national language 
                resources, thus promoting our Nation's 
                competitiveness in the global economy;
          [(15) the Federal Government, as exemplified by title 
        VI of the Civil Rights Act of 1964 and section 204(f) 
        of the Equal Education Opportunities Act of 1974, has a 
        special and continuing obligation to ensure that States 
        and local school districts take appropriate action to 
        provide equal educational opportunities to children and 
        youth of limited English proficiency; and
          [(16) the Federal Government also, as exemplified by 
        the Federal Government's efforts under this title, has 
        a special and continuing obligation to assist States 
        and local school districts in developing the capacity 
        to provide programs of instruction that offer limited 
        English proficient children and youth an equal 
        educational opportunity.
  [(b) Policy.--The Congress declares it to be the policy of 
the United States, in order to ensure equal educational 
opportunity for all children and youth and to promote 
educational excellence, to assist State and local educational 
agencies, institutions of higher education and community-based 
organizations to build their capacity to establish, implement, 
and sustain programs of instruction for children and youth of 
limited English proficiency.
  [(c) Purpose.--The purpose of this part is to educate limited 
English proficient children and youth to meet the same rigorous 
standards for academic performance expected of all children and 
youth, including meeting challenging State content standards 
and challenging State student performance standards in academic 
areas by--
          [(1) developing systemic improvement and reform of 
        educational programs serving limited English proficient 
        students through the development and implementation of 
        exemplary bilingual education programs and special 
        alternative instruction programs;
          [(2) developing bilingual skills and multicultural 
        understanding;
          [(3) developing the English of such children and 
        youth and, to the extent possible, the native language 
        skills of such children and youth;
          [(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 development, and technical 
        assistance which is focused on school improvement for 
        limited English proficient students; and
          [(6) developing programs which strengthen and improve 
        the professional training of educational personnel who 
        work with limited English proficient students.

[SEC. 7103. AUTHORIZATION OF APPROPRIATIONS.

  [(a) In General.--For the purpose of carrying out this part, 
there are authorized to be appropriated $215,000,000 for the 
fiscal year 1995 and such sums as may be necessary for each of 
the four succeeding fiscal years.
  [(b) Distribution.--From the sums appropriated under 
subsection (a) for any fiscal year, the Secretary shall reserve 
not less than 25 percent of such funds for such year to carry 
out subpart 3.

[SEC. 7104. 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, 
secondary, and postsecondary schools operated predominately for 
Native American or 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 or secondary school 
that is operated or funded by the Bureau of Indian Affairs 
shall be considered to be a local educational agency as such 
term is used in this part, subject to the following 
qualifications:
          [(1) Indian tribe.--The term ``Indian tribe'' means 
        any Indian tribe, band, nation, or other organized 
        group or community, including any Alaska Native village 
        or regional or village corporation as defined in or 
        established pursuant to the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1601 et seq.), that is 
        recognized for the special programs and services 
        provided by the United States to Indians because of 
        their status as Indians.
          [(2) 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 any such 
                        school or otherwise to oversee the 
                        delivery of educational services to 
                        members of that tribe; and
                          [(ii) approved by the Secretary for 
                        the purpose of this section.
  [(b) Eligible Entity Application.--Notwithstanding any other 
provision of this part, each eligible entity 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 proposed program.

[SEC. 7105. RESIDENTS OF THE TERRITORIES AND FREELY ASSOCIATED NATIONS.

  For the purpose of carrying out programs under this part in 
the outlying areas, the term ``local educational agency'' shall 
include public institutions or agencies whose mission is the 
preservation and maintenance of native languages.

   [Subpart 1--Bilingual Education Capacity and Demonstration Grants

[SEC. 7111. FINANCIAL ASSISTANCE FOR BILINGUAL EDUCATION.

  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 
7112, 7113, 7114, and 7115 to--
          [(1) develop and enhance their capacity to provide 
        high-quality instruction through bilingual education or 
        special alternative instruction programs to children 
        and youth of limited English proficiency; and
          [(2) to help such children and youth--
                  [(A) develop proficiency in English, and to 
                the extent possible, their native language; and
                  [(B) meet the same challenging State content 
                standards and challenging State student 
                performance standards expected for all children 
                and youth as required by section 1111(b).

[SEC. 7112. PROGRAM DEVELOPMENT AND IMPLEMENTATION GRANTS.

  [(a) Purpose.--The purpose of this section is to develop and 
implement new comprehensive, coherent, and successful bilingual 
education or special alternative instructional programs for 
limited English proficient students, including programs of 
early childhood education, kindergarten through twelfth grade 
education, gifted and talented education, and vocational and 
applied technology education.
  [(b) Program Authorized.--
          [(1) Authority.--(A) The Secretary is authorized to 
        award grants to eligible entities having applications 
        approved under section 7116 to enable such entities to 
        carry out activities described in paragraph (2).
          [(B) Each grant under this section shall be awarded 
        for a period of three years.
          [(2) Authorized activities.--(A) Grants awarded under 
        this section shall be used to improve the education of 
        limited English proficient students and their families 
        by--
                  [(i) developing and implementing 
                comprehensive preschool, elementary, or 
                secondary bilingual education or special 
                alternative instructional programs that are 
                coordinated with other relevant programs and 
                services to meet the full range of educational 
                needs of limited English proficient students; 
                and
                  [(ii) providing inservice training to 
                classroom teachers, administrators, and other 
                school or community-based organizational 
                personnel to improve the instruction and 
                assessment of language-minority and limited 
                English proficient students.
          [(B) Grants under this section may be used to improve 
        the education of limited English proficient students 
        and their families by--
                  [(i) implementing family education programs 
                and parent outreach and training activities 
                designed to assist parents to become active 
                participants in the education of their 
                children;
                  [(ii) improving the instructional program for 
                limited English proficient students by 
                identifying, acquiring, and upgrading 
                curriculum, instructional materials, 
                educational software and assessment procedures 
                and, if appropriate, applying educational 
                technology;
                  [(iii) compensating personnel, including 
                teacher aides who have been specifically 
                trained, or are being trained, to provide 
                services to children and youth of limited 
                English proficiency;
                  [(iv) providing tutorials and academic or 
                career counseling for children and youth of 
                limited-English proficiency; and
                  [(v) providing such other activities, related 
                to the purposes of this part, as the Secretary 
                may approve.
  [(c) Eligible Entity.--For the purpose of 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 local or State 
        educational agency; or
          [(3) a community-based organization or an institution 
        of higher education which has an application approved 
        by the local educational agency to develop and 
        implement early childhood education or family education 
        programs or to conduct an instructional program which 
        supplements the educational services provided by a 
        local educational agency.
  [(d) Due Consideration.--In awarding grants under this 
section, the Secretary shall give due consideration to the need 
for early childhood education, elementary education, and 
secondary education programs.

[SEC. 7113. PROGRAM ENHANCEMENT PROJECTS.

  [(a) Purpose.--The purpose of this section is to carry out 
highly focused, innovative, locally designed projects to expand 
or enhance existing bilingual education or special alternative 
instructional programs for limited English proficient students.
  [(b) Program Authorized.--
          [(1) Authority.--(A) The Secretary is authorized to 
        award grants to eligible entities having applications 
        approved under section 7116 to enable such entities to 
        carry out activities described in paragraph (2).
          [(B) Each grant under this section shall be awarded 
        for a period of two years.
          [(2) Authorized activities.--(A) Grants under this 
        section shall be used for providing inservice training 
        to classroom teachers, administrators, and other school 
        or community-based organization personnel to improve 
        the instruction and assessment of language-minority and 
        limited English proficient students.
          [(B) Grants under this section may be used for--
                  [(i) implementing family education programs 
                and parent outreach and training activities 
                designed to assist parents to become active 
                participants in the education of their 
                children;
                  [(ii) improving the instructional program for 
                limited English proficient students by 
                identifying, acquiring, and upgrading 
                curriculum, instructional materials, 
                educational software and assessment procedures 
                and, if appropriate, applying educational 
                technology;
                  [(iii) compensating personnel, including 
                teacher aides who have been specifically 
                trained, or are being trained, to provide 
                services to children and youth of limited-
                English proficiency;
                  [(iv) providing tutorials and academic or 
                career counseling for children and youth of 
                limited-English proficiency;
                  [(v) providing intensified instruction; and
                  [(vi) providing such other activities, 
                related to the purposes of this part, as the 
                Secretary may approve.
  [(c) Eligible Entity.--For the purpose of 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 local or State 
        educational agency; or
          [(3) a community-based organization or an institution 
        of higher education which has an application approved 
        by the local educational agency to enhance early 
        childhood education or family education programs or to 
        conduct an instructional program which supplements the 
        educational services provided by a local educational 
        agency.

[SEC. 7114. COMPREHENSIVE SCHOOL GRANTS.

  [(a) Purpose.--The purpose of this section is to provide 
financial assistance to eligible entities to implement 
schoolwide bilingual education programs or special alternative 
instruction programs for reforming, restructuring, and 
upgrading all relevant programs and operations, within an 
individual school, that serve all (or virtually all) children 
and youth of limited-English proficiency in schools with 
significant concentrations of such children and youth.
  [(b) Program Authorized.--
          [(1) Authority.--(A) The Secretary is authorized to 
        award grants to eligible entities having applications 
        approved under section 7116 to enable such entities to 
        carry out activities described in paragraph (3).
          [(B) Each grant under this section shall be awarded 
        for five years.
          [(2) Termination.--The Secretary shall terminate 
        grants to eligible entities under this section if the 
        Secretary determines that--
                  [(A) the program evaluation required by 
                section 7123 indicates that students in the 
                schoolwide program are not being taught to and 
                are not making adequate progress toward 
                achieving challenging State content standards 
                and challenging State student performance 
                standards; or
                  [(B) in the case of a program to promote dual 
                language facility, such program is not 
                promoting such facility.
          [(3) Authorized activities.--Grants under this 
        section may be used to improve the education of limited 
        English proficient students and their families by--
                  [(A) implementing family education programs 
                and parent outreach and training activities 
                designed to assist parents to become active 
                participants in the education of their 
                children;
                  [(B) improving the instructional program for 
                limited English proficient students by 
                identifying, acquiring and upgrading 
                curriculum, instructional materials, 
                educational software and assessment procedures 
                and, if appropriate, applying educational 
                technology;
                  [(C) compensating personnel, including 
                teacher aides who have been specifically 
                trained, or are being trained, to provide 
                services to children and youth of limited 
                English proficiency;
                  [(D) providing tutorials and academic or 
                career counseling for children and youth of 
                limited-English proficiency;
                  [(E) providing intensified instruction; and
                  [(F) providing such other activities, related 
                to the purposes of this part, as the Secretary 
                may approve.
          [(4) Special rule.--A grant recipient, before 
        carrying out a program assisted under this section, 
        shall plan, train personnel, develop curriculum, and 
        acquire or develop materials.
  [(c) Eligible Entities.--For the purpose of 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 organizations or a local or State 
        educational agency.

[SEC. 7115. SYSTEMWIDE IMPROVEMENT GRANTS.

  [(a) Purpose.--The purpose of this section is to implement 
districtwide bilingual education programs or special 
alternative instruction programs to improve, reform, and 
upgrade relevant programs and operations, within an entire 
local educational agency, that serve a significant number of 
children and youth of limited English proficiency in local 
educational agencies with significant concentrations of such 
children and youth.
  [(b) Program Authorized.--
          [(1) Authority.--(A) The Secretary is authorized to 
        award grants to eligible entities having applications 
        approved under section 7116 to enable such entities to 
        carry out activities described in paragraphs (3) and 
        (4).
          [(B) Each grant under this section shall be awarded 
        for 5 years.
          [(2) Termination.--The Secretary shall terminate 
        grants to eligible entities under this section if the 
        Secretary determines that--
                  [(A) the program evaluation required by 
                section 7123 indicates that students in the 
                program are not being taught to and are not 
                making adequate progress toward achieving 
                challenging State content standards and 
                challenging State student performance 
                standards; or
                  [(B) in the case of a program to promote dual 
                language facility, such program is not 
                promoting such facility.
          [(3) Preparation.--Grants under this section may be 
        used during the first 12 months exclusively for 
        activities preparatory to the delivery of services.
          [(4) Uses.--Grants under this section may be used to 
        improve the education of limited English proficient 
        students and their families by reviewing, 
        restructuring, and upgrading--
                  [(A) educational goals, curriculum guidelines 
                and content, standards and assessments;
                  [(B) personnel policies and practices 
                including recruitment, certification, staff 
                development, and assignment;
                  [(C) student grade-promotion and graduation 
                requirements;
                  [(D) student assignment policies and 
                practices;
                  [(E) family education programs and parent 
                outreach and training activities designed to 
                assist parents to become active participants in 
                the education of their children;
                  [(F) the instructional program for limited 
                English proficient students by identifying, 
                acquiring and upgrading curriculum, 
                instructional materials, educational software 
                and assessment procedures and, if appropriate, 
                applying educational technology;
                  [(G) tutorials and academic or career 
                counseling for children and youth of limited-
                English proficiency; and
                  [(H) such other activities, related to the 
                purposes of this part, as the Secretary may 
                approve.
  [(c) Eligible Entities.--For the purpose of 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 organizations or a local or State 
        educational agency.

[SEC. 7116. APPLICATIONS.

  [(a) In General.--
          [(1) Secretary.--To receive a grant under this 
        subpart, an eligible entity shall submit an application 
        to the Secretary at such time, in such form, and 
        containing such information as the Secretary may 
        require.
          [(2) State educational agency.--An eligible entity, 
        with the exception of schools funded by the Bureau of 
        Indian Affairs, shall submit a copy of its application 
        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 
        transmit such application to the Secretary.
          [(2) Comments.--(A) Regarding any application 
        submitted under this title, 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) For purposes of this subpart, such comments 
        shall address how the eligible entity--
                  [(i) will further the academic achievement of 
                limited English proficient students served 
                pursuant to a grant received under this 
                subpart; and
                  [(ii) how the grant application is consistent 
                with the State plan submitted under section 
                1111.
  [(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 a State educational agency.
  [(e) Waiver.--Notwithstanding subsection (b), the Secretary 
is authorized to waive the review requirement of 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 State grant program, 
particularly such agency's data collection efforts and such 
agency's ability to provide technical assistance to local 
educational agencies not receiving funds under this Act.
  [(f) Required Documentation.--Such application shall include 
documentation that the applicant has the qualified personnel 
required to develop, administer, and implement the proposed 
program.
  [(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 data on the number 
                of children and youth of limited-English 
                proficiency in the school or school district to 
                be served and the characteristics of such 
                children and youth, such as language spoken, 
                dropout rates, proficiency in English and the 
                native language, academic standing in relation 
                to the English-proficient peers of such 
                children and youth, and, where applicable, the 
                recency of immigration.
                  [(B) A description of the program to be 
                implemented and how such program's design--
                          [(i) relates to the linguistic and 
                        academic needs of the children and 
                        youth of limited-English proficiency to 
                        be served;
                          [(ii) is coordinated with other 
                        programs under this Act, the Goals 
                        2000: Educate America Act and other 
                        Acts, as appropriate, in accordance 
                        with section 14306;
                          [(iii) involves the parents of the 
                        children and youth of limited-English 
                        proficiency to be served;
                          [(iv) ensures accountability in 
                        achieving high academic standards; and
                          [(v) promotes coordination of 
                        services for the children and youth of 
                        limited-English proficiency 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 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 bilingual education 
                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 that, 
                individually or in combination, are proficient 
                in English, including written, as well as oral, 
                communication skills.
                  [(F) A budget for grant funds.
          [(2) Additional information.--Each application for a 
        grant under section 7114 or 7115 shall--
                  [(A) describe--
                          [(i) current services the applicant 
                        provides to children and youth of 
                        limited-English proficiency;
                          [(ii) what services children and 
                        youth of limited-English proficiency 
                        will receive under the grant that such 
                        children or youth 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 children and youth of limited-
                        English proficiency;
                          [(iv) specific achievement and school 
                        retention goals for the children and 
                        youth to be served by the proposed 
                        program and how progress toward 
                        achieving such goals will be measured; 
                        and
                          [(v) current family education 
                        programs if applicable; and
                  [(B) provide assurances that--
                          [(i) the program funded will be 
                        integrated with the overall educational 
                        program; and
                          [(ii) the application has been 
                        developed in consultation with an 
                        advisory council, the majority of whose 
                        members are parents and other 
                        representatives of the children and 
                        youth to be served in such programs.
  [(h) Approval of Applications.--An application for a grant 
under this subpart may be approved only if the Secretary 
determines that--
          [(1) the program will use qualified personnel, 
        including personnel who are proficient in the language 
        or languages used for instruction;
          [(2) in designing the program for which application 
        is made, the needs of children in nonprofit private 
        elementary and secondary schools have been taken into 
        account through consultation with appropriate private 
        school officials and, 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 those which the program is intended to address, 
        after consultation with appropriate private school 
        officials, provision has been made for the 
        participation of such children on a basis comparable to 
        that provided for public school children;
          [(3) student evaluation and assessment procedures in 
        the program are valid, reliable, and fair for limited 
        English proficient students, and that limited English 
        proficient students who are disabled are identified and 
        served in accordance with the requirements of the 
        Individuals with Disabilities Education Act;
          [(4) Federal funds made available for the project or 
        activity will be used so as to supplement the level of 
        State and local funds that, in the absence of such 
        Federal funds, would have been 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 under this title for activities 
        carried out under an order of a court of the United 
        States or of any State respecting services to be 
        provided such children, or 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 such children;
          [(5) the assistance provided under the application 
        will contribute toward building the capacity of the 
        applicant to provide a program on a regular basis, 
        similar to that proposed for assistance, which will be 
        of sufficient size, scope, and quality to promise 
        significant improvement in the education of students of 
        limited-English proficiency, and that the applicant 
        will have the resources and commitment to continue the 
        program when assistance under this subpart is reduced 
        or no longer available; and
          [(6) the applicant provides for utilization of the 
        State and national dissemination sources for program 
        design and in dissemination of results and products.
  [(i) Priorities and Special Rules.--
          [(1) Priority.--The Secretary shall give priority to 
        applications which provide for the development of 
        bilingual proficiency both in English and another 
        language for all participating students.
          [(2) Special alternative instructional program.--
        Grants for special alternative instructional programs 
        under this subpart shall not exceed 25 percent of the 
        funds provided for any type of grant under any section, 
        or of the total funds provided, under this subpart for 
        any fiscal year.
          [(3) Special rule.--Notwithstanding paragraph (2), 
        the Secretary may award grants under this subpart for 
        special alternative instructional programs if an 
        applicant has demonstrated that the applicant cannot 
        develop and implement a bilingual education program for 
        the following reasons:
                  [(A) Where the diversity of the limited 
                English proficient students' native languages 
                and the small number of students speaking each 
                respective language makes bilingual education 
                impractical.
                  [(B) Where, despite documented efforts, the 
                applicant has not been able to hire qualified 
                instructional personnel who are able to 
                communicate in the students' native language.
          [(4) Consideration.--In approving applications under 
        this subpart, the Secretary shall give consideration to 
        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 and State 
        educational agency, or businesses.
          [(5) Due consideration.--The Secretary shall give due 
        consideration to applications providing training for 
        personnel participating in or preparing to participate 
        in the program which will assist such personnel in 
        meeting State and local certification requirements and 
        that, to the extent possible, describe how college or 
        university credit will be awarded for such training.

[SEC. 7117. INTENSIFIED INSTRUCTION.

  In carrying out this subpart, each grant recipient may 
intensify instruction for limited English proficient students 
by--
          [(1) expanding the educational calendar of the school 
        in which such student is enrolled to include programs 
        before and after school and during the summer months;
          [(2) expanding the use of professional and volunteer 
        aids;
          [(3) applying technology to the course of 
        instruction; and
          [(4) providing intensified instruction through 
        supplementary instruction or activities, including 
        educationally enriching extracurricular activities, 
        during times when school is not routinely in session.

[SEC. 7118. CAPACITY BUILDING.

  [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 bilingual and special 
alternative education programs and services to children and 
youth of limited-English proficiency once Federal assistance is 
reduced or eliminated.

[SEC. 7119. 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 entities to carry out an approved program, including a 
program to serve out-of-school youth.

[SEC. 7120. PRIORITY ON FUNDING.

  The Secretary shall give priority to applications under this 
subpart that describe a program that--
          [(1) enrolls a large percentage or large number of 
        limited English proficient students;
          [(2) takes into account significant increases in 
        limited English proficient children and youth, 
        including such children and youth in areas with low 
        concentrations of such children and youth; and
          [(3) ensures that activities assisted under this 
        subpart address the needs of school systems of all 
        sizes and geographic areas, including rural and urban 
        schools.

[SEC. 7121. COORDINATION WITH OTHER PROGRAMS.

  [In order to secure the most flexible and efficient use of 
Federal funds, any State receiving funds under this subpart 
shall coordinate its program with other programs under this 
Act, the Goals 2000: Educate America Act, and other Acts, as 
appropriate, in accordance with section 14306.

[SEC. 7122. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

  [Programs authorized under this part that serve Native 
American children, Native Pacific Island children, and children 
in the Commonwealth of Puerto Rico, notwithstanding any other 
provision of this part, may include programs of instruction, 
teacher training, curriculum development, evaluation, and 
testing designed for Native American children and youth 
learning and studying Native American languages and children 
and youth of limited-Spanish proficiency, except that one 
outcome of such programs serving Native American children shall 
be increased English proficiency among such children.

[SEC. 7123. EVALUATIONS.

  [(a) Evaluation.--Each recipient of funds under this subpart 
shall provide the Secretary with an evaluation, in the form 
prescribed by the Secretary, of such recipient's program every 
two years.
  [(b) Use of Evaluation.--Such evaluation shall be used by a 
grant recipient--
          [(1) for program improvement;
          [(2) to further define the program's goals and 
        objectives; and
          [(3) to determine program effectiveness.
  [(c) Evaluation Components.--Evaluations shall include--
          [(1) how students are achieving the State student 
        performance standards, if any, including data comparing 
        children and youth of limited-English proficiency with 
        nonlimited English proficient children and youth with 
        regard to school retention, academic achievement, and 
        gains in English (and, where applicable, native 
        language) proficiency;
          [(2) program implementation indicators that provide 
        information for informing and improving program 
        management and effectiveness, including data on 
        appropriateness of curriculum in relationship to grade 
        and course requirements, appropriateness of program 
        management, appropriateness of the program's staff 
        professional development, and appropriateness of the 
        language of instruction;
          [(3) program context indicators that describe the 
        relationship of the activities funded under the grant 
        to the overall school program and other Federal, State, 
        or local programs serving children and youth of limited 
        English proficiency; and
          [(4) such other information as the Secretary may 
        require.

[SEC. 7124. CONSTRUCTION.

  [Nothing in this part shall be construed to prohibit a local 
educational agency from serving limited English proficient 
children and youth simultaneously with students with similar 
educational needs, in the same educational settings where 
appropriate.

          [Subpart 2--Research, Evaluation, and Dissemination

[SEC. 7131. AUTHORITY.

  [(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 bilingual education and 
special alternative instruction programs for children and youth 
of limited English proficiency.
  [(b) Competitive Awards.--Research and program evaluation 
activities carried out under this subpart shall be supported 
through competitive grants, contracts and cooperative 
agreements awarded institutions of higher education, nonprofit 
organizations, and State 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 
Bilingual Education and Minority Language Affairs.

[SEC. 7132. RESEARCH.

  [(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 Bilingual Education and 
Minority Language Affairs.
  [(b) Requirements.--Such research activities--
          [(1) shall have a practical application to teachers, 
        counselors, paraprofessionals, school administrators, 
        parents, and others involved in improving the education 
        of limited English proficient students and their 
        families;
          [(2) may include research on effective instructional 
        practices for multilingual classes, and on effective 
        instruction strategies to be used by teachers and other 
        staff who do not know the native language of a limited 
        English proficient child or youth in their classrooms;
          [(3) may include establishing (through the National 
        Center for Education Statistics in consultation with 
        experts in bilingual education, second language 
        acquisition, and English-as-a-second-language) a common 
        definition of ``limited English proficient student'' 
        for purposes of national data collection; and
          [(4) shall be administered by individuals with 
        expertise in bilingual education and the needs of 
        limited English proficient students 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 current or recent recipients of grants 
        under subpart 1 or 2 who have received such grants 
        within the previous five years. Such research may 
        provide for longitudinal studies of students or 
        teachers in bilingual education, monitoring the 
        education of such students from entry in bilingual 
        education through secondary school completion.
          [(2) Applications.--Applicants for assistance under 
        this subsection may submit an application for such 
        assistance to the Secretary at the same time as 
        applications are submitted under subpart 1 or 2. The 
        Secretary shall complete a review of such applications 
        on a timely basis to allow research and program grants 
        to be coordinated when recipients are awarded two or 
        more such grants.
  [(d) Consultation.--The Secretary shall consult with agencies 
and organizations that are engaged in bilingual education 
research and practice, or related research, and bilingual 
education researchers and practitioners to identify areas of 
study and activities to be funded under this section.
  [(e) Data Collection.--The Secretary shall provide for the 
continuation of data collection on limited English proficient 
students as part of the data systems operated by the 
Department.

[SEC. 7133. ACADEMIC EXCELLENCE AWARDS.

  [(a) Awards.--The Secretary may make grants to, and enter 
into contracts and cooperative agreements with, State and local 
educational agencies, nonprofit organizations, and institutions 
of higher education to promote the adoption and implementation 
of bilingual education, special alternative instruction 
programs, and professional development programs that 
demonstrate promise of assisting children and youth of limited 
English proficiency to meet challenging State standards.
  [(b) Applications.--
          [(1) In general.--Each entity desiring an award under 
        this section shall submit an application to the 
        Secretary in such form, at such time, and containing 
        such information and assurances as the Secretary may 
        reasonably require.
          [(2) Peer review.--The Secretary shall use a peer 
        review process, using effectiveness criteria that the 
        Secretary shall establish, to review applications under 
        this section.
  [(c) Use of Funds.--Funds under this section shall be used to 
enhance the capacity of States and local education agencies to 
provide high quality academic programs for children and youth 
of limited English proficiency, which may include--
          [(1) completing the development of such programs;
          [(2) professional development of staff participating 
        in bilingual education programs;
          [(3) sharing strategies and materials; and
          [(4) supporting professional networks.
  [(d) Coordination.--Recipients of funds under this section 
shall coordinate the activities assisted under this section 
with activities carried out by comprehensive regional 
assistance centers assisted under part A of title XIII.

[SEC. 7134. STATE GRANT PROGRAM.

  [(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 own programs and other Federal education 
programs, effectively provides for the education of children 
and youth of limited English proficiency 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 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 for programs 
        authorized by this section to--
                  [(A) assist local educational agencies in the 
                State with program design, capacity building, 
                assessment of student performance, and program 
                evaluation; and
                  [(B) collect data on the State's limited 
                English proficient populations and the 
                educational programs and services available to 
                such populations.
          [(2) Exception.--States which do not, as of the date 
        of enactment of the Improving America's Schools Act of 
        1994, have in place a system for collecting the data 
        described in subparagraph (B) of paragraph (1) for all 
        students in such State, are not required to meet the 
        requirement of such subparagraph. In the event such 
        State develops a system for collecting data on the 
        educational programs and services available to all 
        students in the State, then such State shall comply 
        with the requirement of paragraph (1)(B).
          [(3) 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 
        and youth.
          [(4) 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 title and other individuals or 
organizations involved in the development or operation of 
programs serving limited English proficient children or youth 
to ensure that such funds are used in a manner consistent with 
the requirements of this title.
  [(e) Applications.--A State educational agency desiring to 
receive funds under this section shall submit an application to 
the Secretary in such form, at such time, and containing such 
information and assurances as the Secretary may require.
  [(f) Supplement Not Supplant.--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 to the level of funds that would, in the absence of 
such funds, be made available by the State for the purposes 
described in this section, and in no case to supplant such 
funds.
  [(g) Report to the Secretary.--State educational agencies 
receiving awards under this section shall provide for the 
annual submission of a summary report to the Secretary 
describing such State's use of such funds.

[SEC. 7135. NATIONAL CLEARINGHOUSE FOR BILINGUAL EDUCATION.

  [(a) Establishment.--The Secretary shall establish and 
support the operation of a National Clearinghouse for Bilingual 
Education, which shall collect, analyze, synthesize, and 
disseminate information about bilingual education and related 
programs.
  [(b) Functions.--The National Clearinghouse for Bilingual 
Education shall--
          [(1) be administered as an adjunct clearinghouse of 
        the Educational Resources Information Center 
        Clearinghouses system of clearinghouses supported by 
        the Office of Educational Research and Improvement;
          [(2) coordinate its activities with Federal data and 
        information clearinghouses and dissemination networks 
        and systems;
          [(3) develop a data base management and monitoring 
        system for improving the operation and effectiveness of 
        federally funded bilingual education programs; and
          [(4) develop, maintain, and disseminate, through 
        comprehensive regional assistance centers described in 
        part A of title XIII if appropriate, a listing by 
        geographical area of education professionals, parents, 
        teachers, administrators, community members and others 
        who are native speakers of languages other than English 
        for use as a resource by local educational agencies and 
        schools in the development and implementation of 
        bilingual education programs.

[SEC. 7136. INSTRUCTIONAL MATERIALS DEVELOPMENT.

  [The Secretary may provide grants for the development, 
publication, and dissemination of high-quality instructional 
materials in Native American and Native Hawaiian languages and 
the language of Native Pacific Islanders and natives of the 
outlying areas for which instructional materials are not 
readily available. The Secretary shall give priority to the 
development of instructional materials in languages indigenous 
to the United States or the outlying areas. The Secretary shall 
also accord priority to applications for assistance under this 
section which provide for developing and evaluating materials 
in collaboration with activities assisted under subparts 1 and 
2 and which are consistent with voluntary national content 
standards and challenging State content standards.

                  [Subpart 3--Professional Development

[SEC. 7141. PURPOSE.

  [The purpose of this subpart is to assist in preparing 
educators to improve the educational services for limited 
English proficient children and youth by supporting 
professional development programs and the dissemination of 
information on appropriate instructional practices for such 
children and youth.

[SEC. 7142. TRAINING FOR ALL TEACHERS PROGRAM.

  [(a) Purpose.--The purpose of this section is to provide for 
the incorporation of courses and curricula on appropriate and 
effective instructional and assessment methodologies, 
strategies and resources specific to limited English proficient 
students into preservice and inservice professional development 
programs for teachers, pupil services personnel, administrators 
and other education personnel in order to prepare such 
individuals to provide effective services to limited English 
proficient students.
  [(b) Authorization.--
          [(1) Authority.--The Secretary is authorized to award 
        grants to institutions of higher education, local 
        educational agencies, and State educational agencies or 
        to nonprofit organizations which have entered into 
        consortia arrangements with one of such institutions or 
        agencies.
          [(2) Duration.--Each grant under this section shall 
        be awarded for a period of not more than five years.
  [(c) Permissible Activities.--Activities conducted under this 
section may include the development of training programs in 
collaboration with other programs such as programs authorized 
under titles I and II of this Act, and under the Head Start 
Act.

[SEC. 7143. BILINGUAL EDUCATION TEACHERS AND PERSONNEL GRANTS.

  [(a) Purpose.--The purpose of this section is to provide 
for--
          [(1) preservice and inservice professional 
        development for bilingual education teachers, 
        administrators, pupil services personnel, and other 
        educational personnel who are either involved in, or 
        preparing to be involved in, the provision of 
        educational services for children and youth of limited-
        English proficiency; and
          [(2) national professional development institutes 
        that assist schools or departments of education in 
        institutions of higher education to improve the quality 
        of professional development programs for personnel 
        serving, preparing to serve, or who may serve, children 
        and youth of limited-English proficiency.
  [(b) Priority.--The Secretary shall give priority in awarding 
grants under this section to institutions of higher education, 
in consortia with local or State educational agencies, that 
offer degree programs which prepare new bilingual education 
teachers in order to increase the availability of educators to 
provide high-quality education to limited English proficient 
students.
  [(c) Authorization.--
          [(1) The Secretary is authorized to award grants for 
        not more than five years to institutions of higher 
        education which have entered into consortia 
        arrangements with local or State educational agencies 
        to achieve the purposes of this section.
          [(2) The Secretary is authorized to make grants for 
        not more than five years to State and local educational 
        agencies for inservice professional development 
        programs.

[SEC. 7144. BILINGUAL EDUCATION CAREER LADDER PROGRAM.

  [(a) Purpose.--The purpose of this section is--
          [(1) to upgrade the qualifications and skills of 
        noncertified educational personnel, especially 
        educational paraprofessionals, to meet high 
        professional standards, including certification and 
        licensure as bilingual education teachers and other 
        educational personnel who serve limited English 
        proficient students, through collaborative training 
        programs operated by institutions of higher education 
        and local and State educational agencies; and
          [(2) to help recruit and train secondary school 
        students as bilingual education teachers and other 
        educational personnel to serve limited English 
        proficient students.
  [(b) Authorization.--
          [(1) In general.--The Secretary is authorized to 
        award grants for bilingual education career ladder 
        programs to institutions of higher education applying 
        in consortia with local or State educational agencies, 
        which consortia may include community-based 
        organizations or professional education organizations.
          [(2) Duration.--Each grant under this section shall 
        be awarded for a period of not more than five years.
  [(c) Permissive Activities.--Grants awarded under this 
section may be used--
          [(1) for the development of bilingual education 
        career ladder program curricula appropriate to the 
        needs of the consortium participants;
          [(2) to provide assistance for stipends and costs 
        related to tuition, fees and books for enrolling in 
        courses required to complete the degree and 
        certification requirements to become bilingual 
        education teachers; and
          [(3) for programs to introduce secondary school 
        students to careers in bilingual education teaching 
        that are coordinated with other activities assisted 
        under this section.
  [(d) Special Consideration.--The Secretary shall give special 
consideration to applications under this section which provide 
for--
          [(1) participant completion of baccalaureate and 
        master's degree teacher education programs, and 
        certification requirements and may include effective 
        employment placement activities;
          [(2) development of teacher proficiency in English a 
        second language, including demonstrating proficiency in 
        the instructional use of English and, as appropriate, a 
        second language in classroom contexts;
          [(3) coordination with the Federal TRIO programs 
        under chapter 1 of part A of title IV of the Higher 
        Education Act of 1965, the National Mini Corps under 
        subpart 1 of part F of title V of such Act, the Teacher 
        Corps program under subpart 3 of part C of title V of 
        such Act, and the National Community and Service Trust 
        Act of 1993 programs, and other programs for the 
        recruitment and retention of bilingual students in 
        secondary and postsecondary programs to train to become 
        bilingual educators; and
          [(4) the applicant's contribution of additional 
        student financial aid to participating students.

[SEC. 7145. GRADUATE FELLOWSHIPS IN BILINGUAL EDUCATION PROGRAM.

  [(a) Authorization.--
          [(1) In general.--The Secretary may award fellowships 
        for masters, doctoral, and post-doctoral study related 
        to instruction of children and youth of limited-English 
        proficiency in such areas as teacher training, program 
        administration, research and evaluation, and curriculum 
        development, and for the support of dissertation 
        research related to such study.
          [(2) Number.--For fiscal year 1994 not less than 500 
        fellowships leading to a master's or doctorate degree 
        shall be awarded under this section.
          [(3) Information.--The Secretary shall include 
        information on the operation and the number of 
        fellowships awarded under the fellowship program in the 
        evaluation required under section 7149.
  [(b) Fellowship Requirements.--
          [(1) In general.--Any person receiving a fellowship 
        under this section shall agree to--
                  [(A) work in an activity related to the 
                program or in an activity such as an activity 
                authorized under this part, including work as a 
                bilingual education teacher, for a period of 
                time equivalent to the period of time during 
                which such person receives assistance under 
                this section; or
                  [(B) repay such assistance.
          [(2) Regulations.--The Secretary shall establish in 
        regulations such terms and conditions for such 
        agreement as the Secretary deems reasonable and 
        necessary and may waive the requirement of paragraph 
        (1) in extraordinary circumstances.
  [(c) Priority.--In awarding fellowships under this section 
the Secretary may give priority to institutions of higher 
education that demonstrate experience in assisting fellowship 
recipients find employment in the field of bilingual education.

[SEC. 7146. APPLICATION.

  [(a) In General.--
          [(1) Secretary.--To receive an award under this 
        subpart, an eligible entity shall submit an application 
        to the Secretary at such time, in such form, and 
        containing such information as the Secretary may 
        require.
          [(2) Consultation and assessment.--Each such 
        application shall contain a description of how the 
        applicant has consulted with, and assessed the needs 
        of, public and private schools serving children and 
        youth of limited-English proficiency to determine such 
        school's need for, and the design of, the program for 
        which funds are sought.
          [(3) Special rule.--(A) An application for a grant 
        under subsection (a) from an applicant who proposes to 
        conduct a master's- or doctoral-level program with 
        funds received under this section shall provide an 
        assurance that such program will include, as a part of 
        the program, a training practicum in a local school 
        program serving children and youth of limited-English 
        proficiency.
          [(B) A recipient of a grant under subsection (a) may 
        waive the requirement of a training practicum for a 
        degree candidate with significant experience in a local 
        school program serving children and youth of limited-
        English proficiency.
          [(4) State educational agency.--An eligible entity, 
        with the exception of schools funded by the Bureau of 
        Indian Affairs, shall submit a copy of the application 
        under this subsection to the State educational agency.
  [(b) State Review and Comments.--
          [(1) Deadline.--The State educational agency, not 
        later than 45 days after receipt of such application 
        copy, shall review the application and transmit such 
        application to the Secretary.
          [(2) Comments.--(A) Regarding any application 
        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) For purposes of this subpart, comments shall 
        address how the eligible entity--
                  [(i) will further the academic achievement of 
                limited English proficient students served 
                pursuant to a grant received under this 
                subpart; and
                  [(ii) how the grant application is consistent 
                with the State plan submitted under section 
                1111.
          [(3) Waiver.--Notwithstanding paragraphs (1) and (2), 
        the Secretary is authorized to waive the review 
        requirement 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 State grant program, particularly 
        such agency's data collection efforts and such agency's 
        ability to provide technical assistance to local 
        educational agencies not receiving funds under this 
        Act.
  [(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 awards under this 
subpart the Secretary shall take into consideration comments 
made by a State educational agency.
  [(e) Special Rule.--
          [(1) 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 
        activities under this part.
          [(2) Distribution rule.--In making awards under this 
        subpart, the Secretary, consistent with subsection (d), 
        shall ensure adequate representation of Hispanic-
        serving institutions that demonstrate competence and 
        experience in the programs and activities authorized 
        under this subpart and are otherwise qualified.

[SEC. 7147. PROGRAM REQUIREMENTS.

  [Activities conducted under this subpart shall assist 
educational personnel in meeting State and local certification 
requirements for bilingual education and, wherever possible, 
shall lead toward the awarding of college or university credit.

[SEC. 7148. STIPENDS.

  [The Secretary shall provide for the payment of such stipends 
(including allowances for subsistence and other expenses for 
such persons and their dependents), as the Secretary determines 
to be appropriate, to persons participating in training 
programs under this subpart.

[SEC. 7149. PROGRAM EVALUATIONS.

  [Each recipient of funds under this subpart shall provide the 
Secretary with an evaluation of the program assisted under this 
subpart every two years. Such evaluation shall include data 
on--
          [(1) post-program placement of persons trained in a 
        program assisted under this subpart;
          [(2) how the training relates to the employment of 
        persons served by the program;
          [(3) program completion; and
          [(4) such other information as the Secretary may 
        require.

[SEC. 7150. USE OF FUNDS FOR SECOND LANGUAGE COMPETENCE.

  [Awards under this subpart may be used to develop a program 
participant's competence in a second language for use in 
instructional programs.

                         [Subpart 4--Transition

[SEC. 7161. SPECIAL RULE.

  [Notwithstanding any other provision of law, no recipient of 
a grant under title VII of this Act (as such title was in 
effect on the day preceding the date of enactment of the 
Improving America's Schools Act of 1994) shall be eligible for 
fourth- and fifth-year renewals authorized by section 
7021(d)(1)(C) of such title (as such section was in effect on 
the day preceding the date of enactment of such Act).

              [PART B--FOREIGN LANGUAGE ASSISTANCE PROGRAM

[SEC. 7201. SHORT TITLE.

  [This part may be cited as the ``Foreign Language Assistance 
Act of 1994''.

[SEC. 7202. FINDINGS.

  The Congress finds as follows:
          [(1) Foreign language proficiency is crucial to our 
        Nation's economic competitiveness and national 
        security. Significant improvement in the quantity and 
        quality of foreign language instruction offered in our 
        Nation's elementary and secondary schools is necessary.
          [(2) All Americans need a global perspective. To 
        understand the world around us, we must acquaint 
        ourselves with the languages, cultures, and history of 
        other nations.
          [(3) Proficiency in two or more languages should be 
        promoted for all American students. Multilingualism 
        enhances cognitive and social growth, competitiveness 
        in the global marketplace, national security, and 
        understanding of diverse people and cultures.
          [(4) The United States lags behind other developed 
        countries in offering foreign language study to 
        elementary and secondary school students.
          [(5) Four out of five new jobs in the United States 
        are created from foreign trade.
          [(6) The optimum time to begin learning a second 
        language is in elementary school, when children have 
        the ability to learn and excel in several foreign 
        language acquisition skills, including pronunciation, 
        and when children are most open to appreciating and 
        valuing a culture other than their own.
          [(7) Foreign language study can increase childrens' 
        capacity for critical and creative thinking skills and 
        children who study a second language show greater 
        cognitive development in areas such as mental 
        flexibility, creativity, tolerance, and higher order 
        thinking skills.
          [(8) Children who have studied a foreign language in 
        elementary school achieve expected gains and score 
        higher on standardized tests of reading, language arts, 
        and mathematics than children who have not studied a 
        foreign language.

[SEC. 7203. PROGRAM AUTHORIZED.

  [(a) Program Authority.--
          [(1) In general.--The Secretary shall 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 and secondary school 
        students.
          [(2) Duration.--Each grant under paragraph (1) shall 
        be awarded for a period of three 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;
                  [(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.--The Secretary may waive the requirement 
        of paragraph (1) 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 part.
          [(3) Special rule.--Not less than three-fourths of 
        the funds appropriated under section 7206 shall be used 
        for the expansion of foreign language learning in the 
        elementary grades.
          [(4) Reservation.--The Secretary may reserve not more 
        than 5 percent of funds appropriated under section 7206 
        to evaluate the efficacy of programs under this part.

[SEC. 7204. APPLICATIONS.

  [(a) In General.--Any State educational agency or local 
educational agency desiring a grant under this part shall 
submit an application to the Secretary at such time, in such 
form, 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 non-native English speakers in the 
        community with the schools in order to promote two-way 
        language learning; or
          [(3) promote the sequential study of a foreign 
        language for students, beginning in elementary schools.

[SEC. 7205. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE PROGRAM.

  [(a) Incentive Payments.--From amounts appropriated under 
section 7206 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 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 not less than four days per week throughout an 
academic year.

[SEC. 7206. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated $35,000,000 for the 
fiscal year 1995, and such sums as may be necessary for each of 
the four succeeding fiscal years, to carry out this part, of 
which not more than $20,000,000 may be used in each fiscal year 
to carry out section 7205.

             [PART C--EMERGENCY IMMIGRANT EDUCATION PROGRAM

[SEC. 7301. FINDINGS AND PURPOSE.

  [(a) Findings.--The Congress finds that--
          [(1) the education of our Nation's children and youth 
        is one of the most sacred government responsibilities;
          [(2) local educational agencies have struggled to 
        fund adequately education services;
          [(3) in the case of Plyler v. Doe, the Supreme Court 
        held that States have a responsibility under the Equal 
        Protection Clause of the Constitution to educate all 
        children, regardless of immigration status; and
          (4) immigration policy is solely a responsibility of 
        the Federal Government.
  [(b) Purpose.--The purpose of this part is to assist eligible 
local educational agencies that experience unexpectedly large 
increases in their student population due to immigration to--
          [(1) provide high-quality instruction to immigrant 
        children and youth; and
          [(2) help such children and youth--
                  [(A) with their transition into American 
                society; and
                  [(B) meet the same challenging State 
                performance standards expected of all children 
                and youth.

[SEC. 7302. STATE ADMINISTRATIVE COSTS.

  [For any fiscal year, a State educational agency may reserve 
not more than 1.5 percent of the amount allocated to such 
agency under section 7304 to pay the costs of performing such 
agency's administrative functions under this part.

[SEC. 7303. WITHHOLDING.

  [Whenever the Secretary, after providing reasonable notice 
and opportunity for a hearing to any State educational agency, 
finds that there is a failure to meet the requirement of any 
provision of this part, the Secretary shall notify that agency 
that further payments will not be made to the agency under this 
part, or in the discretion of the Secretary, that the State 
educational agency shall not make further payments under this 
part 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 part, or 
payments by the State educational agency under this part 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. 7304. STATE ALLOCATIONS.

  [(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 1995 through 1999 for the 
purpose set forth in section 7301(b).
  [(b) Allocations.--
          [(1) In general.--Except as provided in subsections 
        (c) and (d), of the amount appropriated for each fiscal 
        year for this part, each State participating in the 
        program assisted under this part shall receive an 
        allocation equal to the proportion of such State's 
        number of immigrant children and youth who are enrolled 
        in public elementary or secondary schools under the 
        jurisdiction of each local educational agency described 
        in paragraph (2) within such State, and in nonpublic 
        elementary or secondary schools within the district 
        served by each such local educational agency, relative 
        to the total number of immigrant children and youth so 
        enrolled in all the States participating in the program 
        assisted under this part.
          [(2) Eligible local educational agencies.--The local 
        educational agencies referred to in paragraph (1) are 
        those local educational agencies in which the sum of 
        the number of immigrant children and youth who are 
        enrolled in public elementary or secondary schools 
        under the jurisdiction of such agencies, and in 
        nonpublic elementary or secondary schools within the 
        districts served by such agencies, during the fiscal 
        year for which the payments are to be made under this 
        part, is equal to--
                  [(A) at least 500; or
                  [(B) at least 3 percent of the total number 
                of students enrolled in such public or 
                nonpublic schools during such fiscal year,
        whichever number 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 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 allocation under this section that such State would 
        otherwise have received had such determination been 
        made on the basis of accurate data.
  [(d) Reallocation.--Whenever the Secretary determines that 
any amount of a payment made to a State under this part 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. Any amount made available 
to a State from any appropriation for a fiscal year in 
accordance with the preceding sentence shall, for purposes of 
this part, 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 part, if the amount appropriated to carry out 
        this part 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 part for 
        such year to award grants, on a competitive basis, to 
        local educational agencies within the State as follows:
                  [(A) At least one-half of such grants 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) Funds reserved under this paragraph and 
                not made available under subparagraph (A) may 
                be distributed to local educational agencies 
                within the State experiencing a sudden influx 
                of immigrant children and youth which are 
                otherwise not eligible for assistance under 
                this part.
          [(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 7307.
          [(3) Information.--Local educational agencies with 
        the highest number of immigrant children and youth 
        receiving funds under paragraph (1) may make 
        information available on serving immigrant children and 
        youth to local educational agencies in the State with 
        sparse numbers of such children.

[SEC. 7305. STATE APPLICATIONS.

  [(a) Submission.--No State educational agency shall receive 
any payment under this part for any fiscal year unless such 
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 part are 
        made will be administered by or under the supervision 
        of the agency;
          [(2) provide assurances that payments under this part 
        will be used for purposes set forth in sections 7301 
        and 7307, including a description of how local 
        educational agencies receiving funds under this part 
        will use such funds to meet such purposes and will 
        coordinate with other programs assisted under this Act, 
        the Goals 2000: Educate America Act, and other Acts as 
        appropriate;
          [(3) provide an assurance that local educational 
        agencies receiving funds under this part will 
        coordinate the use of such funds with programs assisted 
        under part A or title I;
          [(4) provide assurances that such payments, with the 
        exception of payments reserved under section 7304(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 
        7304(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 part 
        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 part;
          [(7) provide assurances--
                  [(A) that to the extent consistent with the 
                number of immigrant children and youth enrolled 
                in the nonpublic elementary 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 part to any materials, equipment, and 
                property repaired, remodeled, or constructed 
                with those 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; 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 or 
                secondary school and of any religious 
                organization, and such employment or contract 
                shall be under the control and supervision of 
                such public agency, and the funds provided 
                under this paragraph shall not be commingled 
                with State or local funds;
          [(8) provide that funds reserved under subsection (e) 
        of section 7304 be awarded on a competitive basis based 
        on merit and need in accordance with such subsection; 
        and
          [(9) provide an assurance that State and local 
        educational agencies receiving funds under this part 
        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 
        which 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.

[SEC. 7306. ADMINISTRATIVE PROVISIONS.

  [(a) 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 7305 of the 
amount of such agency's allocation under section 7304 for the 
succeeding year.
  [(b) Services to Children Enrolled in Nonpublic Schools.--If 
by reason of any provision of law a local educational agency is 
prohibited from providing educational services for children 
enrolled in elementary and secondary nonpublic schools, as 
required by section 7305(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 children enrolled in such schools, the Secretary may 
waive such requirement and shall arrange for the provision of 
services, subject to the requirements of this part, to such 
children. Such waivers shall be subject to consultation, 
withholding, notice, and judicial review requirements in 
accordance with the provisions of title I.

[SEC. 7307. USES OF FUNDS.

  [(a) Use of Funds.--Funds awarded under this part 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) salaries 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 to be 
        used in the program;
          [(5) basic instructional services which are directly 
        attributable to the presence in the school district of 
        immigrant children, including the costs of providing 
        additional classroom supplies, overhead costs, costs of 
        construction, acquisition or rental of space, costs of 
        transportation, or such other costs as are directly 
        attributable to such additional basic instructional 
        services; and
          [(6) such other activities, related to the purposes 
        of this part, as the Secretary may authorize.
  [(b) Consortia.--A local educational agency that receives a 
grant under this part may collaborate or form a consortium with 
one or more local educational agencies, institutions of higher 
education, and nonprofit organizations to carry out the program 
described in an application approved under this part.
  [(c) Subgrants.--A local educational agency that receives a 
grant under this part 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 entities to carry out a program described in 
an application approved under this part, including a program to 
serve out-of-school youth.
  [(d) Construction.--Nothing in this part shall be construed 
to prohibit a local educational agency from serving immigrant 
children simultaneously with students with similar educational 
needs, in the same educational settings where appropriate.

[SEC. 7308. REPORTS.

  [(a) Biennial Report.--Each State educational agency 
receiving funds under this part shall submit, once every two 
years, a report to the Secretary concerning the expenditure of 
funds by local educational agencies under this part. Each local 
educational agency receiving funds under this part 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 two years, a report to the appropriate committees of the 
Congress concerning programs assisted under this part in 
accordance with section 14701.

[SEC. 7309. AUTHORIZATION OF APPROPRIATIONS.

  [For the purpose of carrying out this part, there are 
authorized to be appropriated $100,000,000 for fiscal year 1995 
and such sums as may be necessary for each of the four 
succeeding fiscal years.

                        [PART D--ADMINISTRATION

[SEC. 7401. RELEASE TIME.

  [The Secretary shall allow professional development programs 
funded under part A to use funds provided under part A for 
professional release time to enable individuals to participate 
in programs assisted under part A.

[SEC. 7402. EDUCATION TECHNOLOGY.

  [Funds made available under part A may be used to provide for 
the acquisition or development of education technology or 
instructional materials, including authentic materials in 
languages other than English, access to and participation in 
electronic networks for materials, training and communications, 
and incorporation of such resources in curricula and programs 
such as those funded under this title.

[SEC. 7403. NOTIFICATION.

  [The State educational agency, and when applicable, the State 
board for postsecondary education, shall be notified within 
three working days of the date an award under part A is made to 
an eligible entity within the State.

[SEC. 7404. CONTINUED ELIGIBILITY.

  [Entities receiving grants under this title shall remain 
eligible for grants for subsequent activities which extend or 
expand and do not duplicate those activities supported by a 
previous grant under this title. In considering applications 
for grants under this title, the Secretary shall take into 
consideration the applicant's record of accomplishments under 
previous grants under this title.

[SEC. 7405. COORDINATIONS 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 students 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 students and their 
families. The Secretary shall provide for continuing 
consultation and collaboration, between the Office and relevant 
programs operated by the Department, including programs under 
title I 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 education opportunities to all language-minority 
and limited English proficient students.
  [(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 students.
  [(c) Publication of Proposals.--The Secretary shall publish 
and disseminate all requests for proposals for programs funded 
under part A.
  [(d) Report.--The Director shall prepare and, not later than 
February 1 of every other year, shall submit to the Secretary 
and to the Committee on Labor and Human Resources of the Senate 
and to the Committee on Education and Labor of the House of 
Representatives a report on--
          [(1) the activities carried out under this title and 
        the effectiveness of such activities in improving the 
        education provided to limited English proficient 
        children and youth;
          [(2) a critical synthesis of data reported by the 
        States pursuant to section 7134;
          [(3) an estimate of the number of certified bilingual 
        education personnel in the field and an estimate of the 
        number of bilingual education teachers which will be 
        needed for the succeeding five fiscal years;
          [(4) the major findings of research carried out under 
        this title; and
          [(5) recommendations for further developing the 
        capacity of our Nation's schools to educate effectively 
        limited English proficient students.

                      [PART E--GENERAL PROVISIONS

[SEC. 7501. DEFINITIONS; REGULATIONS.

  [Except as otherwise provided, for purposes of this title--
          [(1) Bilingual education program.--The term 
        ``bilingual education program'' means an educational 
        program for limited English proficient students that--
                  [(A) makes instructional use of both English 
                and a student's native language;
                  [(B) enables limited English proficient 
                students to achieve English proficiency and 
                academic mastery of subject matter content and 
                higher order skills, including critical 
                thinking, so as to meet age-appropriate grade-
                promotion and graduation standards in concert 
                with the National Education Goals;
                  [(C) may also develop the native language 
                skills of limited English proficient students, 
                or ancestral languages of American Indians, 
                Alaska Natives, Native Hawaiians and native 
                residents of the outlying areas; and
                  [(D) may include the participation of 
                English-proficient students if such program is 
                designed to enable all enrolled students to 
                become proficient in English and a second 
                language.
          [(2) Children and youth.--The term ``children and 
        youth'' means individuals aged 3 through 21.
          [(3) Community-based organization.--The term 
        ``community-based organization'' means a private 
        nonprofit organization of demonstrated effectiveness or 
        Indian tribe or tribally sanctioned educational 
        authority which is representative of a community or 
        significant segments of a community and which provides 
        educational or related services to individuals in the 
        community. Such term includes Native Hawaiian 
        organizations including Native Hawaiian Educational 
        Organizations as such term is defined in section 4009 
        of the Augustus F. Hawkins-Robert T. Stafford 
        Elementary and Secondary School Improvement Amendments 
        of 1988 (20 U.S.C. 4901 et seq.), as such Act was in 
        effect on the day preceding the date of enactment of 
        the Improving America's Schools Act of 1994.
          [(4) Community college.--The term ``community 
        college'' means an institution of higher education as 
        defined in section 101 of the Higher Education Act of 
        1965 which provides not less than a two-year program 
        which is acceptable for full credit toward a bachelor's 
        degree, including institutions receiving assistance 
        under the Tribally Controlled Community College 
        Assistance Act of 1978.
          [(5) Director.--The term ``Director'' means the 
        Director of the Office of Bilingual Education and 
        Minority Languages Affairs established under section 
        210 of the Department of Education Organization Act.
          [(6) Family education program.--(A) The term ``family 
        education program'' means a bilingual education or 
        special alternative instructional program that--
                  [(i) is designed--
                          [(I) to help limited English 
                        proficient adults and out-of-school 
                        youths achieve proficiency in the 
                        English language; and
                          [(II) to provide instruction on how 
                        parents and family members can 
                        facilitate the educational achievement 
                        of their children;
                  [(ii) when feasible, uses instructional 
                programs such as the models developed under the 
                Even Start Family Literacy Programs, which 
                promote adult literacy and train parents to 
                support the educational growth of their 
                children and the Parents as Teachers Program 
                and the Home Instruction Program for Preschool 
                Youngsters; and
                  [(iii) gives preference to participation by 
                parents and immediate family members of 
                children attending school.
          [(B) Such term may include programs that provide 
        instruction to facilitate higher education and 
        employment outcomes.
          [(7) 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 
                three full academic years.
          [(8) Limited english proficiency and limited english 
        proficient.--The terms ``limited English proficiency'' 
        and ``limited English proficient'', when used with 
        reference to an individual, mean an individual--
                  [(A) who--
                          [(i) was not born in the United 
                        States or whose native language is a 
                        language other than English and comes 
                        from an environment where a language 
                        other than English is dominant; or
                          [(ii) is a Native American or Alaska 
                        Native or who is a native resident of 
                        the outlying areas and comes from an 
                        environment where a language other than 
                        English has had a significant impact on 
                        such individual's level of English 
                        language proficiency; or
                          [(iii) is migratory and whose native 
                        language is other than English and 
                        comes from an environment where a 
                        language other than English is 
                        dominant; and
                  [(B) who has sufficient difficulty speaking, 
                reading, writing, or understanding the English 
                language and whose difficulties may deny such 
                individual the opportunity to learn 
                successfully in classrooms where the language 
                of instruction is English or to participate 
                fully in our society.
          [(9) Native american and native american language.--
        The terms ``Native American'' and ``Native American 
        language'' shall have the same meaning given such terms 
        in section 103 of the Native American Languages Act of 
        1990.
          [(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 majority of its 
        governing board and employees consisting of fluent 
        speakers of the traditional Native American languages 
        used in their educational programs and with not less 
        than five 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 the language normally used 
        by such individual, or in the case of a child or youth, 
        the language normally used by the parents of the child 
        or youth.
          [(12) Office.--The term ``Office'' means the Office 
        of Bilingual Education and Minority Languages Affairs.
          [(13) Other programs for persons of limited-english 
        proficiency.--The term ``other programs for persons of 
        limited-English proficiency'' means any programs 
        administered by the Secretary that serve persons of 
        limited-English proficiency.
          [(14) Paraprofessional.--The term 
        ``paraprofessional'' means an individual who is 
        employed in preschool, elementary or secondary school 
        under the supervision of a certified or licensed 
        teacher, including individuals employed in bilingual 
        education, special education and migrant education.
          [(15) Special alternative instructional program.--The 
        term ``special alternative instructional program'' 
        means an educational program for limited English 
        proficient students that--
                  [(A) utilizes specially designed English 
                language curricula and services but does not 
                use the student's native language for 
                instructional purposes;
                  [(B) enables limited English proficient 
                students to achieve English proficiency and 
                academic mastery of subject matter content and 
                higher order skills, including critical 
                thinking so as to meet age-appropriate grade-
                promotion and graduation standards in concert 
                with the National Education Goals; and
                  [(C) is particularly appropriate for schools 
                where the diversity of the limited English 
                proficient students' native languages and the 
                small number of students speaking each 
                respective language makes bilingual education 
                impractical and where there is a critical 
                shortage of bilingual education teachers.

[SEC. 7502. REGULATIONS AND NOTIFICATION.

  [(a) Regulation Rule.--In developing regulations under this 
title, the Secretary shall consult with State and local 
educational agencies, organizations representing limited 
English proficient individuals, and organizations representing 
teachers and other personnel involved in bilingual education.
  [(b) Parental Notification.--
          [(1) In general.--Parents of children and youth 
        participating in programs assisted under part A shall 
        be informed of--
                  [(A) a student's level of English 
                proficiency, how such level was assessed, the 
                status of a student's academic achievement and 
                the implications of a student's educational 
                strengths and needs for age and grade 
                appropriate academic attainment, promotion, and 
                graduation;
                  [(B) what programs are available to meet the 
                student's educational strengths and needs and 
                how the programs differ in content and 
                instructional goals, and in the case of a 
                student with a disability, how the program 
                meets the objectives of a student's 
                individualized education program; and
                  [(C) the instructional goals of the bilingual 
                education or special alternative instructional 
                program, and how the program will specifically 
                help the limited English proficient student 
                acquire English and meet age-appropriate 
                standards for grade-promotion and graduation, 
                including--
                          [(i) the benefits, nature, and past 
                        academic results of the bilingual 
                        educational program and of the 
                        instructional alternatives; and
                          [(ii) the reasons for the selection 
                        of their child as being in need of 
                        bilingual education.
          [(2) Option to decline.--(A) Such parents shall also 
        be informed that such parents have the option of 
        declining enrollment of their children and youth in 
        such programs and shall be given an opportunity to so 
        decline if such parents so choose.
          [(B) A local educational agency shall not be relieved 
        of any of its obligations under title VI of the Civil 
        Rights Act of 1964 because parents choose not to enroll 
        their children in bilingual education programs.
          [(3) Receipt of information.--Such parents shall 
        receive, in a manner and form understandable to such 
        parents, including, if necessary and to the extent 
        feasible, in the native language of such parents, the 
        information required by this subsection. At a minimum, 
        such parents shall receive--
                  [(A) timely information about projects funded 
                under part A; and
                  [(B) if the parents of participating children 
                so desire, notice of opportunities for regular 
                meetings for the purpose of formulating and 
                responding to recommendations from such 
                parents.
          [(4) Special rule.--Students shall not be admitted to 
        or excluded from any federally assisted education 
        program merely on the basis of a surname or language-
        minority status.]

               TITLE VII--FLEXIBILITY AND ACCOUNTABILITY

    PART A--STATE ACCOUNTABILITY FOR IMPROVING ACADEMIC ACHIEVEMENT

SEC. 7101. STATE FINANCIAL AWARDS.

  (a) In General.--Beginning in the 2002-2003 school year, the 
Secretary shall make in accordance with this section financial 
awards, to be known as ``Achievement in Education Awards'', to 
States that have made significant progress in improving 
educational achievement.
  (b) Criteria of Progress.--For the purposes of subsection 
(a), the Secretary shall judge progress using each of the 
following criteria, giving the greatest weight to the criterion 
described in paragraph (1):
          (1) The progress of the State's students from 
        economically disadvantaged families and students from 
        racial and ethnic minority groups--
                  (A) on the assessments administered by the 
                State under section 1111; and
                  (B) beginning in the 2003-2004 school year, 
                on assessments of 4th and 8th grade reading and 
                mathematics under--
                          (i) the State assessments carried out 
                        as part of the National Assessment of 
                        Educational Progress under section 411 
                        of the National Education Statistics 
                        Act of 1994 (20 U.S.C. 9010); or
                          (ii) an assessment selected by the 
                        State that--
                                  (I) is administered annually;
                                  (II) yields high quality data 
                                that are valid and reliable;
                                  (III) meets widely recognized 
                                professional and technical 
                                standards, including specific 
                                and rigorous test security 
                                procedures;
                                  (IV) is developed by an 
                                entity independent from each 
                                State and local government 
                                agency in the State in a manner 
                                that protects against any 
                                conflict of interest ;
                                  (V) has no test questions 
                                that are identical to the test 
                                questions used by the 
                                assessment used to meet the 
                                State assessment requirements 
                                under section 1111;
                                  (VI) provides results in such 
                                a form that they may be 
                                expressed in terms of 
                                achievement levels that are 
                                consistent with the achievement 
                                levels (basic, proficient, and 
                                advanced) set forth in section 
                                1111;
                                  (VII) provides results in 
                                such a form that they may be 
                                disaggregated, at a minimum, 
                                according to income level and 
                                major racial and ethnic group; 
                                and
                                  (VIII) is administered to all 
                                students or to a representative 
                                sample of students in the 4th 
                                and 8th grades statewide, with 
                                a sample size that is 
                                sufficiently large to produce 
                                statistically significant 
                                estimates of statewide student 
                                achievement.
          (2) The overall improvement in the achievement of all 
        of the State's students, as measured by--
                  (A) the assessments administered by the State 
                under section 1111; and
                  (B) beginning in the 2003-2004 school year, 
                the assessments described in paragraph (1)(B).
          (3) The progress of the State in improving the 
        English proficiency of students who enter school with 
        limited English proficiency.
  (c) Other Considerations.--In judging a State's progress 
under subsection (a), the Secretary may also consider--
          (1) the progress of the State in increasing the 
        percentage of students who graduate from secondary 
        schools; and
          (2) the progress of the State in increasing the 
        percentage of students who take advanced coursework 
        (such as Advanced Placement or International 
        Baccalaureate courses) and who pass the exams 
        associated with such coursework.
  (d) Amount.--The Secretary shall determine the amount of an 
award under subsection (a) based on--
          (1) the school-age population of the State; and
          (2) the degree of progress shown by a State with 
        respect to the criteria set forth in subsections (b) 
        and (c).
  (e) Use of Funds.--
          (1) In general.--A State receiving a financial award 
        under this section shall use the proceeds of such award 
        only to make financial awards to public elementary and 
        secondary schools in the State that have made the most 
        significant progress with respect to the criteria 
        described in subsection (b).
          (2) Use by schools.--In consultation with the 
        school's teachers, the principal of each elementary or 
        secondary school that receives a financial award from a 
        State under this section shall use the proceeds of such 
        award at the school for any educational purpose 
        permitted under State law.
          (3) Responsible state agency.--The State educational 
        agency for each State shall be the agency responsible 
        for making awards under this subsection.
  (f) Peer Review.--In selecting States for awards under 
subsection (a), the Secretary shall use a peer-review process.
  (g) Costs of Independent Assessments.--
          (1) In general.--Subject to paragraph (2), the 
        Secretary shall make grants to States to offset the 
        costs of administering assessments administered by the 
        States to meet the requirements of (b)(1)(B)(ii).
          (2) Limitations.--Grants made by the Secretary in any 
        year to a State under paragraph (1)--
                  (A) may be awarded only to offset the costs 
                of a single administration of an assessment 
                described in such paragraph in the State for 
                that year; and
                  (B) may not exceed the costs of administering 
                in the State for that year the State 
                assessments that would be carried out under the 
                National Assessment of Educational Progress 
                described in subsection (b)(1)(B).
          (3) Allocation.--The Secretary may determine the 
        appropriate methodology of allocating grants to States 
        under this subsection.

SEC. 7102. STATE SANCTIONS.

  (a) Failure to Make Progress.--
          (1) Loss of administrative funds.--The Secretary 
        shall reduce, by 30 percent, the amount of funding that 
        a State may reserve for State administration under the 
        State formula grant programs authorized by this Act if 
        the Secretary determines that, for 2 consecutive 
        years--
                  (A) the State's students from economically 
                disadvantaged families and students from racial 
                and ethnic minority groups failed to make 
                adequate yearly progress on the assessments 
                administered by the State under section 1111; 
                and
                  (B) the State's students from economically 
                disadvantaged families and students from racial 
                and ethnic minority groups failed to make 
                measurable progress in reading and mathematics, 
                as measured by the 4th and 8th grade 
                assessments described in subsection (b)(1)(B).
  (2) Further reductions.--In each of the first 2 years after 
the years described in paragraph (1), the Secretary may 
increase the reduction described in such paragraph by any 
amount not more than a total of an additional 45 percent.
  (b) Other Failures.--In addition to any action taken under 
subsection (a)(1) or (a)(2), the Secretary shall reduce, by 20 
percent, the amount of funding that a State may reserve for 
State administration under the State formula grant programs 
authorized by this Act if the Secretary determines that, for 2 
consecutive years, the State failed to make adequate yearly 
progress--
          (1) with respect to the achievement of children with 
        limited English proficiency under section 
        1111(b)(2)(C)(iv)(II)(dd); or
          (2) with respect to the acquisition of English 
        language proficiency by children with limited English 
        proficiency under section 1111(b)(2)(C)(iv)(III).
  (c) Use of Funds for Improvement.--
          (1) In general.--The Secretary shall require that any 
        funds reduced under this section be allocated by the 
        State to local educational agencies in the State for 
        school improvement purposes described in section 1116.
          (2) Treatment of funds.--Funds described in paragraph 
        (1) shall not count toward the amounts that are 
        required to be reserved by a State for school 
        improvement under section 1003.

SEC. 7103. DEVELOPMENT OF STATE STANDARDS AND ASSESSMENTS.

  (a) In General.--The Secretary shall make financial awards 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), including the costs of working in 
        voluntary partnerships with other States, at the sole 
        discretion of each such State, in developing such 
        assessments and standards if a State chooses to do so; 
        and
          (2) if a State has developed the assessments and 
        standards referred to in paragraph (1), to administer 
        such assessments or to carry out other activities 
        described in this title and other activities related to 
        ensuring accountability for results in the State's 
        schools and local educational agencies, such as--
                  (A) developing academic content and 
                achievement standards and aligned assessments 
                in other subjects not required by Section 1111;
                  (B) developing assessments of English 
                language proficiency necessary to comply with 
                section 1111(b)(7);
                  (C) assuring 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 instruction 
                materials;
                  (E) providing for multiple measures to 
                increase the reliability and validity of 
                student and school classifications;
                  (F) strengthening the capacity of local 
                educational agencies and schools to provide all 
                students the opportunity to increase 
                educational achievement;
                  (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; and
                  (H) improving the dissemination of 
                information on student achievement and school 
                performance to parents and the community.
  (b) Bonuses.--The Secretary shall make a one-time bonus 
payment to each State that completes the development of the 
assessments described in subsection (a) ahead of the deadline 
set forth in section 1111.

SEC. 7104. FUNDING.

  (a) Authorization of appropriations.--
          (1) Awards and bonus payments.--For the purposes of 
        making awards under section 7101 and bonus payments 
        under section 7103(b), there are authorized to be 
        appropriated $40,000,000 for fiscal year 2002 and such 
        sums as may be necessary for each of fiscal years 2003 
        through 2006.
          (2) Grants for independent assessments; 
        administration of state assessments under naep.--For 
        the purposes of making grants to offset the costs of 
        independent assessments under section 7101(g) and for 
        the purposes of administering the State assessments 
        carried out under the National Assessment of 
        Educational Progress referred to in section 
        7101(b)(1)(B)(i), there are authorized to be 
        appropriated to the Secretary $69,000,000 for fiscal 
        year 2002 and such sums as may be necessary for each of 
        fiscal years 2003 through 2006.
          (3) Development and administration of state standards 
        and assessments.--For the purposes of carrying out 
        subsection 7103(a), there are authorized to be 
        appropriated $400,000,000 for fiscal year 2002 and such 
        sums as may be necessary for each of the fiscal years 
        2003 through 2005.
  (b) Allocation of Appropriated Funds.--From each of the 
amounts appropriated under subsection (a), the Secretary shall 
allocate to the States--
          (1) 50 percent based on the relative number of 
        children aged 5 to 17 in each State; and
          (2) 50 percent allocated equally among the States.

  PART B--FUNDING FLEXIBILITY FOR STATE AND LOCAL EDUCATIONAL AGENCIES

SEC. 7201. SHORT TITLE.

  This part may be cited as the ``State and Local 
Transferability Act''.

SEC. 7202. PURPOSE.

  The purpose of this part 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 activities authorized 
        under title I programs.

SEC. 7203. TRANSFERABILITY OF FUNDS.

  (a) Transfers by States.--
          (1) In general.--In accordance with this part, a 
        State may transfer up 50 percent of the 
        nonadministrative State funds allocated to the State 
        for use for State-level activities under each of the 
        following provisions to 1 or more of the State's 
        allocations under any other of such provisions:
                  (A) Part A of Title II.
                  (B) Subpart 1 of part A of title IV.
                  (C) Part A or B of title V.
          (2) Supplemental funds for title I.--In accordance 
        with this part, a State may transfer any funds 
        allocated to the State under a provision listed in 
        paragraph (1) to its allocation under title I.
  (b) Transfers by Local Educational Agencies.--
          (1) Authority to transfer funds.--
                  (A) In general.--In accordance with this 
                part, a local educational agency (except a 
                local educational agency identified for 
                improvement under section 1116(c)(2) or subject 
                to corrective action under section 1116(c)(9)) 
                may transfer not more than 50 percent of the 
                funds allocated to it under each of the 
                provisions listed in paragraph (2) for a fiscal 
                year to 1 or more of its allocations for such 
                fiscal year under any other provision listed in 
                paragraph (2).
                  (B) Agencies identified for improvement.--A 
                local educational agency identified for 
                improvement under section 1116(c)(2) may 
                transfer in accordance with this part not more 
                than 30 percent of the funds allocated to it 
                under each of the provisions listed in 
                paragraph (2)--
                          (i) to its allocation for school 
                        improvement under section 1003;
                          (ii) to any other allocation if such 
                        transferred funds are used only for 
                        local educational agency improvement 
                        activities consistent with section 
                        1116(d).
                  (C) Supplemental funds for title I.--In 
                accordance with this part, a local educational 
                agency may transfer funds allocated to such 
                agency under a provision listed in paragraph 
                (2) to its allocation under title I.
          (2) Applicable provisions.--A local educational 
        agency may transfer funds under subparagraph (A) or (B) 
        from allocations made under each of the following 
        provisions:
                  (A) Title II.
                  (B) Subpart 1 of Part A of title IV.
                  (C) Part A of title V or section 5212(2)(A).
  (c) No Transfer of Title I Funds.--A State or a local 
educational agency may not transfer under this part to any 
other program any funds allocated to it under title I.
  (d) Modification of plans and applications; notification.--
          (1) State 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 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;
                  (B) 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) 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 
        part, funds transferred under this section are subject 
        to each of the rules and requirements applicable to the 
        funds allocated by the Secretary 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 8503(c), if such transfer transfers funds 
        from a program that provides for the participation of 
        students, teachers, or other educational personnel, 
        from private schools.

                     TITLE VIII--GENERAL PROVISIONS

                          PART A--DEFINITIONS

SEC. 8101. DEFINITIONS.

  Except as otherwise provided, for the purposes of this Act, 
the following terms have the following meanings:
          (1) Average daily attendance--
                  (A) 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 such school year.
                  (B) 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 such other 
                data.
                  (C) 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 in another school 
                district, the Secretary shall, for purposes of 
                this Act--
                          (i) consider the child to be in 
                        attendance at a school of the agency 
                        making such payment; and
                          (ii) not consider the child to be in 
                        attendance at a school of the agency 
                        receiving such payment.
                  (D) 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 disabilities, as 
                defined in paragraph (5), the Secretary shall, 
                for the purposes of this Act, consider such 
                child to be in attendance at a school of the 
                agency making such 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 such 
                        agencies; divided by
                  (B) the aggregate number of children in 
                average daily attendance to whom such agencies 
                provided free public education during such 
                preceding year.
          (3) Beginning teacher.--The term ``beginning 
        teacher'' means an educator in a public school who has 
        been teaching less than a total of 3 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 disability.--The term ``child with a 
        disability'' means a child--
                  (A) with mental retardation, hearing 
                impairments (including deafness), speech or 
                language impairments, visual impairments 
                (including blindness), serious emotional 
                disturbance (hereinafter referred to as 
                ``emotional disturbance''), orthopedic 
                impairments, autism, traumatic brain injury, 
                other health impairments, or specific learning 
                disabilities; and
                  (B) who, by reason thereof, needs special 
                education and related services.
          (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 14305.
          (8) Consolidated local plan.--The term ``consolidated 
        local plan'' means a plan submitted by a local 
        educational agency pursuant to section 14305.
          (9) Consolidated state application.--The term 
        ``consolidated State application'' means an application 
        submitted by a State educational agency pursuant to 
        section 14302.
          (10) Consolidated state plan.--The term 
        ``consolidated State plan'' means a plan submitted by a 
        State educational agency pursuant to section 14302.
          (11) 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.
          (12) Covered program.--The term ``covered program'' 
        means each of the programs authorized by--
                  (A) part A of title I;
                  (B) 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 G of title I;
                  (G) part A of title II;
                  (H) part A of title III;
                  (I) part A of title V;
                  (J) part B of title V; and
                  (K) part A of title IV:
          (13) Current expenditures.--The term ``current 
        expenditures'' means expenditures for free public 
        education--
                  (A) including expenditures for 
                administration, instruction, attendance, 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 IV.
          (14) Department.--The term ``Department'' means the 
        Department of Education.
          (15) 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.
          (16) Effective schools program.--The term ``effective 
        schools program'' means a school-based program that may 
        encompass preschool through secondary school levels and 
        that has the objectives of--
                  (A) promoting school-level planning, 
                instructional improvement, and staff 
                development;
                  (B) increasing the academic achievement 
                levels of all children and particularly 
                educationally disadvantaged children; and
                  (C) achieving as ongoing conditions in the 
                school the following factors identified through 
                scientifically based research as distinguishing 
                effective from ineffective schools:
                          (i) Strong and effective 
                        administrative and instructional 
                        leadership that creates consensus on 
                        instructional goals and organizational 
                        capacity for instructional problem 
                        solving.
                          (ii) Emphasis on the acquisition of 
                        basic and advanced academic skills.
                          (iii) A safe and orderly school 
                        environment that allows teachers and 
                        pupils to focus their energies on 
                        academic achievement.
                          (iv) Continuous review of students 
                        and programs to evaluate the effects of 
                        instruction.
          (17) 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.
          (18) 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; and
                  (E) reading comprehension strategies.
          (19) 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.
          (20) 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 or secondary school 
                education as determined under applicable State 
                law, except that such term does not include any 
                education provided beyond grade 12.
          (21) Fully qualified.--The term ``fully qualified''--
                  (A) when used with respect to a public 
                elementary or secondary school teacher means 
                that the teacher has obtained State 
                certification as a teacher (including 
                certification obtained through alternative 
                routes to certification) or passed the State 
                teacher licensing exam and holds a license to 
                teach in such State, except that when used with 
                respect to any teacher teaching in a public 
                charter school, means that the teacher meets 
                the requirements set forth in the State's 
                public charter school law; and
                  (B) when used with respect to--
                          (i) an elementary school teacher, 
                        means that the teacher holds a 
                        bachelor's degree and demonstrates 
                        knowledge and teaching skills in 
                        reading, writing, mathematics, science, 
                        and other areas of the elementary 
                        school curriculum; and
                          (ii) a middle or secondary school 
                        teacher, means that the teacher holds a 
                        bachelor's degree and demonstrates a 
                        high level of competency in all subject 
                        areas in which he or she teaches 
                        through--
                                  (I) a passing level of 
                                performance on a rigorous State 
                                or local academic subject areas 
                                test; or
                                  (II) completion of an 
                                academic major in each of the 
                                subject areas in which he or 
                                she provides instruction.
          (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 performance capability in 
        areas such as intellectual, creative, artistic, or 
        leadership capacity, or in specific academic fields, 
        and who require services or activities not ordinarily 
        provided by the school in order to fully develop such 
        capabilities.
          (23) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given that term in section 101 of the Higher Education 
        Act of 1965.
          (24) Limited english proficient student.--The term 
        ``limited English proficient student'' means an 
        individual aged 5 through 17 enrolled in an elementary 
        school or secondary school--
                  (A) who--
                          (i) was not born in the United States 
                        or whose native language is a language 
                        other than English;
                          (ii)(I) is a Native American or 
                        Alaska Native, or a native resident of 
                        the outlying areas; and
                          (II) comes from an environment where 
                        a language other than English has had a 
                        significant impact on such individual's 
                        level of English language proficiency; 
                        or
                          (iii) 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
                  (B) who has sufficient difficulty speaking, 
                reading, writing, or understanding the English 
                language, and whose difficulties may deny the 
                individual--
                          (i) the ability to meet the State's 
                        proficient level of performance on 
                        State assessments described in section 
                        1111(b)(4) in core academic subjects; 
                        or
                          (ii) the opportunity to participate 
                        fully in society.
          (25) Local educational agency.--(A) 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 or secondary schools in a city, county, 
        township, school district, or other political 
        subdivision of a State, or for such combination of 
        school districts or counties as are recognized in a 
        State as an administrative agency for its public 
        elementary or secondary schools.
          (B) The term includes any other public institution or 
        agency having administrative control and direction of a 
        public elementary or secondary school.
          (C) The term includes an elementary or secondary 
        school funded by the Bureau of Indian Affairs but only 
        to the extent that such inclusion makes such school 
        eligible for programs for which specific eligibility is 
        not provided to such school in another provision of law 
        and such 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 such 
        school shall not be subject to the jurisdiction of any 
        State educational agency other than the Bureau of 
        Indian Affairs.
          (D) The term includes educational service agencies 
        and consortia of such agencies.
          (26) Mentoring.--The term ``mentoring'' means a 
        program in which an adult works with a child or youth 
        on a 1-to-1 basis, establishing a supportive 
        relationship, providing academic assistance, and 
        introducing the child or youth to new experiences that 
        enhance the child or youth's ability to excel in school 
        and become a responsible citizen.
          (27) Native american and native american language.--
        The terms ``Native American'' and ``Native American 
        language'' shall have the same meaning given such terms 
        in section 103 of the Native American Languages Act of 
        1990.
          (28) Other staff.--The term ``other staff'' means 
        pupil services personnel, librarians, career guidance 
        and counseling personnel, education aides, and other 
        instructional and administrative personnel.
          (29) Outlying area.--The term ``outlying area'' means 
        the United States Virgin Islands, Guam, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands, 
        and through fiscal year 2003 and for the purpose of any 
        discretionary grant program, includes the freely 
        associated states of the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the 
        Republic of Palau.
          (30) 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).
          (31) Pupil services personnel; pupil services.--(A) 
        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 such 
        term is defined in section 602(22) of the Individuals 
        with Disabilities Education Act) as part of a 
        comprehensive program to meet student needs.
          (B) The term ``pupil services'' means the services 
        provided by pupil services personnel.
          (32) Reading.--The term ``reading'' means a complex 
        system of deriving meaning from print that requires all 
        of the following:
                  (A) Skills and knowledge to understand how 
                phonemes, or speech sounds are connected in 
                print.
                  (B) Ability to decode unfamiliar words.
                  (C) Ability to read fluently.
                  (D) Sufficient background information and 
                vocabulary to foster reading comprehensions.
                  (E) Development of appropriate active 
                strategies to construct meaning from print.
                  (F) Development and maintenance of a 
                motivation to read.
          (33) Rigorous diagnostic reading and screening 
        assessment tools.--The term ``rigorous diagnostic 
        reading and screening assessment tools'' means a 
        diagnostic reading assessment that--
                  (A) is valid, reliable, and grounded on 
                scientifically based reading research;
                  (B) measures progress in developing phonemic 
                awareness and phonics skills, vocabulary, 
                reading fluency, and reading comprehension;
                  (C) identifies students who may be at risk 
                for reading failure or who are having 
                difficulty reading; and
                  (D) are used to improve instruction.
          (34) Scientifically based research.--The term 
        ``scientifically based research''--
                  (A) means the application of rigorous, 
                systematic, and objective procedures to obtain 
                valid knowledge relevant to education 
                activities and programs; and
                  (B) shall include research that--
                          (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;
                          (iv) is evaluated using randomized 
                        experiments in which individuals, 
                        entities, programs, or activities are 
                        randomly assigned to different 
                        variations (including a control 
                        condition) to compare the relative 
                        effects of the variations; and
                          (v) has been accepted by a peer-
                        reviewed journal or approved by a panel 
                        of independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review.
          (35) 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 such term does not include any 
        education beyond grade 12.
          (36) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (37) 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.
          (38) State educational agency.--The term ``State 
        educational agency'' means the agency primarily 
        responsible for the State supervision of public 
        elementary and secondary schools.
          (39) Technology.--The term ``technology'' means the 
        latest state-of-the-art technology products and 
        services.

SEC. 8102. APPLICABILITY OF TITLE.

  Parts B, C, D, and E of this title do not apply to title VI 
of this Act.

SEC. 8103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED SCHOOLS.

  For purposes of any competitive program under this Act, a 
consortia of schools operated by the Bureau of Indian Affairs, 
a school operated under a contract or grant with the Bureau of 
Indian Affairs in consortia with another contract or grant 
school or tribal or community organization, or a Bureau of 
Indian Affairs school in consortia with an institution of 
higher education, a contract or grant school and 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. 8201. 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 
        such agency for State administration under one or more 
        of the programs under paragraph (2) if such State 
        educational agency can demonstrate that the majority of 
        such agency's 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 such 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;
                  (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 of Education.
  (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 such administration.
  (e) Unused administrative funds.--If a State educational 
agency does not use all of the funds available to such agency 
under this section for administration, such agency may use such 
funds during the applicable period of availability as funds 
available under one or more programs included in the 
consolidation under subsection (a).

SEC. 8202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

  A State educational agency that also serves as a local 
educational agency, in such agency's applications or plans 
under this Act, shall describe how such agency will eliminate 
duplication in the conduct of administrative functions.

SEC. 8203. 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 such program, of the total available for 
the local educational agency under such programs.
  (b) State Procedures.--Within one-year from 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 such 
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 may 
use such consolidated funds for the administration of such 
programs and for uses, at the school district and school 
levels, comparable to those described in section 8201(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 such programs included 
in the consolidation.

SEC. 8204. 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 subpart 1 of part B of title III, and the 
        education for homeless children and youth program under 
        subtitle B of title VII of the Stewart B. McKinney 
        Homeless Assistance Act, the amounts allotted to the 
        Department of the Interior under those programs.
          (2) Agreement.--(A) 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) The agreement shall--
                  (i) set forth the plans of the Secretary of 
                the Interior for the use of the amount 
                transferred and the performance 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 such department's 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. 8301. PURPOSE.

  The purposes of this part are to improve teaching and 
learning through greater coordination between programs and to 
provide greater flexibility to State and local authorities by 
allowing the consolidation of State and local plans, 
applications, and reporting.

SEC. 8302. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.

  (a) General Authority.--
          (1) Simplification.--In order to simplify application 
        requirements and reduce the burden for States under 
        this Act, the Secretary, in accordance with subsection 
        (b), shall establish procedures and criteria under 
        which a State educational agency, in consultation with 
        the State's Governor, may submit a consolidated State 
        plan or a consolidated State application meeting the 
        requirements of this section for--
                  (A) any programs under this Act in which the 
                State participates; and
                  (B) such other programs as the Secretary may 
                designate.
          (2) Consolidated applications and plans.--A State 
        educational agency, in consultation with the State's 
        Governor, that submits a consolidated State plan or a 
        consolidated State application under this section shall 
        not be required to submit a separate State plan or 
        application for a program included in the consolidated 
        State plan or application.
  (b) Collaboration.--
          (1) In general.--In establishing criteria and 
        procedures under this section, the Secretary shall 
        collaborate with Governors, 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 the 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, and other 
        materials that are absolutely necessary for the 
        consideration of the consolidated State plan or 
        consolidated State application.

SEC. 8303. CONSOLIDATED REPORTING.

  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 State's Governor, may submit a 
consolidated State annual report. Such report shall contain 
information about the programs included in the report, 
including the State's performance under those programs, and 
other matters as the Secretary determines, such as monitoring 
activities. Such a report shall take the place of separate 
individual annual reports for the programs subject to it.

SEC. 8304. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
                    ASSURANCES.

  (a) Assurances.--A State educational agency, in consultation 
with the State's Governor, that submits a consolidated State 
plan or consolidated State application under this Act, whether 
separately or under section 8302, shall have on file with the 
Secretary a single set of assurances, applicable to each 
program for which such 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, in a nonprofit 
        private agency, institution, or organization, or in an 
        Indian tribe if the law authorizing the program 
        provides for assistance to such entities; and
          (B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will 
        administer such 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 such 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 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 has afforded a reasonable 
        opportunity for public comment on the plan or 
        application and has considered such comment.
  (b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

SEC. 8305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

  (a) General Authority.--A local educational agency receiving 
funds under more than one program under this Act may submit 
plans or applications to the Governor and State educational 
agency under such programs on a consolidated basis.
  (b) Required Consolidated Plans or Applications.--A State 
that has an approved consolidated State plan or application 
under section 8302 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 such programs, but may not require such agencies to 
submit separate plans.
  (c) Collaboration.--A Governor and State educational agency 
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 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. 8306. OTHER GENERAL ASSURANCES.

  (a) Assurances.--Any applicant other than a State that 
submits a plan or application under this Act, shall have on 
file with the State 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 such entities; and
          (B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will 
        administer such 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 such applicant under each such program;
          (6) the applicant will--
                  (A) make reports to the Governor and State 
                educational agency and the Secretary as may be 
                necessary to enable such agency and the 
                Secretary to perform their duties under each 
                such program; and
                  (B) maintain such records, provide such 
                information, and afford access to the records 
                as the Governor and State educational agency or 
                the Secretary may find necessary to carry out 
                the State'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 has 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. 8401. 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 or the Carl D. Perkins Vocational and Technical 
Education Act of 1998 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 which desires a 
        waiver shall submit a waiver application to the 
        Secretary that--
                  (A) indicates each Federal program affected 
                and each statutory or regulatory requirement 
                requested to be waived;
                  (B) describes the purpose and overall 
                expected results of waiving each such 
                requirement;
                  (C) describes, for each school year, 
                specific, measurable, educational goals for the 
                State educational agency and for each local 
                educational agency, Indian tribe, or school 
                that would be affected by the waiver; and
                  (D) explains why the waiver will assist the 
                State educational agency and each affected 
                local educational agency, Indian tribe, or 
                school in reaching such goals.
          (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--
                          (i)(I) by local educational agencies 
                        (on behalf of such agencies and 
                        schools) to State educational agencies; 
                        and
                          (II) by State educational agencies 
                        (on behalf of, and based upon the 
                        requests of, local educational 
                        agencies) to the Secretary; or
                          (ii) by Indian tribes (on behalf of 
                        schools operated by such tribes) to the 
                        Secretary.
          (3) General requirements.--
                  (A) In the case of a waiver request submitted 
                by a State educational agency acting in 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 that the applying 
                        agency customarily provides similar 
                        notices and information to the public.
                  (B) In the case of a waiver request submitted 
                by a local educational agency that receives 
                funds under this Act--
                          (i) such request shall be reviewed by 
                        the State educational agency and be 
                        accompanied by the comments, if any, of 
                        such 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 that such 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 part B 
        of title IV; or
          (9) the prohibitions regarding--
                  (A) State aid in section 8502;
                  (B) use of funds for religious worship or 
                instruction in section 8507; and
                  (C) activities in section 8513.
  (d) Duration and Extension of Waiver.--
          (1) In general.--Except as provided in paragraph (2), 
        the duration of a waiver approved by the Secretary 
        under this section may be for a period not to exceed 5 
        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 recipients to carry out 
                the activities for which the waiver was 
                requested and the waiver has contributed to 
                improved student performance; and
                  (B) such 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 such waiver by such 
                agency or by schools;
                  (B) describes how schools continued to 
                provide assistance to the same populations 
                served by the programs for which waivers are 
                requested; and
                  (C) evaluates the progress of such agency and 
                of schools in improving the quality of 
                instruction or the academic performance 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 such 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 such waiver by 
                schools operated by such tribe; and
                  (B) evaluates the progress of such schools in 
                improving the quality of instruction or the 
                academic performance of students.
          (4) Report to congress.--Beginning in fiscal year 
        2002 and 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 such waivers--
                          (i) increased the quality of 
                        instruction to students; or
                          (ii) improved the academic 
                        performance of students.
  (f) Termination of Waivers.--The Secretary shall terminate a 
waiver under this section if the Secretary determines, after 
notice 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) 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 such notice to State educational agencies, 
interested parties, including educators, parents, students, 
advocacy and civil rights organizations, and the public.

                       PART E--UNIFORM PROVISIONS

SEC. 8501. 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 such agency and 
the State with respect to the provision of free public 
education by such agency for the preceding fiscal year was not 
less than 90 percent of such 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 to 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 such 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 such 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. 8502. PROHIBITION REGARDING STATE AID.

  A State shall not take into consideration payments under this 
Act (other than under title VI) in determining the eligibility 
of any local educational agency in such State for State aid, or 
the amount of State aid, with respect to free public education 
of children.

SEC. 8503. 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 such 
        agencies, or another entity receiving financial 
        assistance under a program specified in subsection (b), 
        who are enrolled in private elementary and secondary 
        schools in areas served by such agency, consortium or 
        entity, such agency, consortium or entity shall, after 
        timely and meaningful consultation with appropriate 
        private school officials, provide such children and 
        their teachers or other educational personnel, on an 
        equitable basis, special educational services or other 
        benefits that address their needs under such 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 such 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 such program and shall be provided in a timely 
        manner.
          (4) Expenditures.--Expenditures for educational 
        services and other benefits provided under this section 
        to eligible private school children, their teachers, 
        and other educational personnel serving such 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.--Such agency, consortium 
        or entity described in subsection (a)(1) of this 
        section may provide such 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) part B, subpart 1 of title I;
                  (B) part C of title I;
                  (C) part A of title II;
                  (D) part A of title III.
                  (E) part A of title V; and
                  (F) part B of title V;
          (2) Definition.--For the purposes of this section, 
        the term ``eligible children'' means children eligible 
        for services under a program described in paragraph 
        (1).
  (c) Consultation.--
          (1) In general.--To ensure timely and meaningful 
        consultation, a State educational agency, local 
        educational agency, educational service agency, 
        consortium of such 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 such 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 such 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 in writing to such private school officials an 
        analysis of the reasons why the local educational 
        agency has chosen not to use a contractor.
          (3) Timing.--Such consultation 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 
        participate in programs under this Act, and shall 
        continue throughout the implementation and assessment 
        of activities under this section.
          (4) Discussion required.--Such consultation 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 such funds, 
        shall be in a public agency for the uses and purposes 
        provided in this Act, and a public agency shall 
        administer such funds and property.
          (2) Provision of services.--
                  (A) The provision of services under this 
                section shall be provided--
                          (i) by employees of a public agency; 
                        or
                          (ii) through contract by such public 
                        agency with an individual, association, 
                        agency, organization, or other entity.
                  (B) In the provision of such services, such 
                employee, person, association, agency, 
                organization or other entity 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.
                  (C) Funds used to provide services under this 
                section shall not be commingled with non-
                Federal funds.

SEC. 8504. STANDARDS FOR BY-PASS.

  If, by reason of any provision of law, a State educational 
agency, local educational agency, educational service agency, 
consortium, or other entity of such agencies, is prohibited 
from providing for the participation in programs of children 
enrolled in, or teachers or other educational personnel from, 
private elementary and secondary schools, on an equitable 
basis, or if the Secretary determines that such agency 
consortium or entity has substantially failed or is unwilling 
to provide for such participation, as required by section 8503, 
the Secretary shall--
          (1) waive the requirements of that section for such 
        agency, consortium, or entity;
          (2) arrange for the provision of equitable services 
        to such children, teachers, or other educational 
        personnel through arrangements that shall be subject to 
        the requirements of this section and of sections 8503, 
        8505, and 8506; and
          (3) in making the determination, consider one or more 
        factors, including the quality, size, scope, location 
        of the program and the opportunity of private school 
        children, teachers, and other educational personnel to 
        participate.

SEC. 8505. 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 
individuals and organizations concerning violations of section 
8503 by a State educational agency, local educational agency, 
educational service agency, consortium of such agencies or 
entity. Such individual or organization shall submit such 
complaint to the State educational agency for a written 
resolution by the State educational agency within a reasonable 
period of time.
  (b) Appeals to Secretary.--Such 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. Such appeal shall be accompanied by a copy of the State 
educational agency's resolution, and a complete statement of 
the reasons supporting the appeal. The Secretary shall 
investigate and resolve each such appeal not later than 120 
days after receipt of the appeal.

SEC. 8506. BY-PASS DETERMINATION PROCESS.

  (a) Review.--
          (1) In general.--
                  (A) The Secretary shall not take any final 
                action under section 8504 until the State 
                educational agency, local educational agency, 
                educational service agency, consortium of such 
                agencies or entity affected by such 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) 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 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) If such affected agency consortium or 
                entity is dissatisfied with the Secretary's 
                final action after a proceeding under paragraph 
                (1), such agency consortium or entity may, 
                within 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.
                  (B) A copy of the petition shall be forthwith 
                transmitted by the clerk of the court to the 
                Secretary.
                  (C) 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 
                this action, as provided in section 2112 of 
                title 28, United States Code.
          (3) Findings of fact.--
                  (A) 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.
                  (B) Such new or modified findings of fact 
                shall likewise be conclusive if supported by 
                substantial evidence.
          (4) Jurisdiction.--
                  (A) Upon the filing of such petition, the 
                court shall have jurisdiction to affirm the 
                action of the Secretary or to set such action 
                aside, in whole or in part.
                  (B) 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 such 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 such 
agency or consortium to meet the applicable requirements of 
section 8503 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 such 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 
such determination is consistent with the purpose of this 
section.

SEC. 8507. 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. 8508. APPLICABILITY.

  Nothing in this Act 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 (consistent with 
section 8509), nor shall any home schooled student be required 
to participate in any assessment referenced in this Act.

SEC. 8509. 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.

SEC. 8510. PRIVACY OF ASSESSMENT RESULTS.

  Any results from individual assessments referenced in this 
Act which become part of the education records of the student 
shall have the protections as provided in section 444 of the 
General Education Provisions Act.

SEC. 8511. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC SCHOOLS.

  Nothing in this Act, or any other Act administered by the 
Department, 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.

SEC. 8512. SCHOOL PRAYER.

  As a condition for receipt of funds under this Act, a local 
educational agency shall certify in writing to the Secretary 
that no policy of the agency prevents or otherwise denies 
participation in constitutionally protected prayer in public 
schools.

SEC. 8513. 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 such instruction is age 
        appropriate and emphasizes 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 direct, review, or control a State, local 
        educational agency, or schools' instructional content, 
        curriculum, and related activities;
          (2) limit the application of the General Education 
        Provisions Act (20 U.S.C.A. 1221 et seq.);
          (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
          (4) create any legally enforceable right.

SEC. 8514. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND CONTROL.

  (a) General Prohibition.--Officers and employees of the 
Federal Government are prohibited from mandating, directing, or 
controlling a State, local educational agency, or school's 
curriculum, program of instruction, or allocation of State or 
local resources, or mandating a State or any subdivision 
thereof to spend any funds or incur any costs not paid for 
under this Act.
  (b) Prohibition of Federal Mandates, Direction, or Control.--
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 specific 
instructional content or academic achievement standards and 
assessments, curriculum, or program of instruction as a 
condition of eligibility to receive funds under this Act.
  (c) Equalized Spending.--Nothing in this Act shall be 
construed to mandate equalized spending per pupil for a State, 
local educational agency, or school.
  (d) Building Standards.--Nothing in this Act shall be 
construed to mandate national school building standards for a 
State, local agency, or school.

SEC. 8515. 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. 8516. REPORT.

  The Secretary shall report to the Congress not later than 180 
days after the date of enactment of the No Child Left Behind 
Act of 2001 regarding how the Secretary shall ensure that 
audits conducted by Department employees of activities assisted 
under this Act comply with changes to this Act made by the No 
Child Left Behind Act of 2001, particularly with respect to 
permitting children with similar educational needs to be served 
in the same educational settings, where appropriate.

SEC. 8517. REQUIRED APPROVAL OR CERTIFICATION PROHIBITED.

  (a) In General.--Notwithstanding any other provision of 
Federal law, no State shall be required to have academic 
content standards or student academic achievement standards 
approved or certified by the Federal Government, in order to 
receive assistance under this Act.
  (b) Construction.--Nothing in this section shall be construed 
to affect requirements under title I of this Act.

SEC. 8518. PROHIBITION ON ENDORSEMENT OF CURRICULUM.

  Notwithstanding any other prohibition of Federal law, no 
funds provided to the Department of Education or to any 
applicable program may be used by the Department to endorse, 
approve, or sanction any curriculum designed to be used in an 
elementary or secondary school.

SEC. 8519. RULE OF CONSTRUCTION ON PERSONALLY IDENTIFIABLE INFORMATION.

  Nothing in this Act shall be construed to permit the 
development of a national database of personally identifiable 
information on individuals involved in studies or in data 
collection efforts under this Act.

SEC. 8520. SEVERABILITY.

  If any provision of this Act is held invalid, the remainder 
of this Act shall be unaffected thereby.

                       PART F--SENSE OF CONGRESS

SEC. 8601. PAPERWORK REDUCTION.

  (a) Findings.--The Congress finds that--
          (1) instruction and other classroom activities 
        provide the greatest opportunity for students, 
        especially at-risk and disadvantaged students, to 
        attain high standards and achieve academic success;
          (2) one of the greatest obstacles to establishing an 
        effective, classroom-centered education system is the 
        cost of paperwork compliance;
          (3) paperwork places a burden on teachers and 
        administrators who must complete Federal and State 
        forms to apply for Federal funds and absorbs time and 
        money which otherwise would be spent on students;
          (4) the Education at a Crossroads Report released in 
        1998 by the Education Subcommittee on Oversight and 
        Investigations states that requirements by the 
        Department of Education result in more than 48,600,000 
        hours of paperwork per year; and
          (5) paperwork distracts from the mission of schools, 
        encumbers teachers, and administrators with nonacademic 
        responsibilities, and competes with teaching and 
        classroom activities which promote learning and 
        achievement.
  (b) Sense of Congress.--It is the sense of Congress that 
Federal and State educational agencies should reduce the 
paperwork requirements placed on schools, teachers, principles, 
and other administrators.

SEC. 8602. PROHIBITION ON MANDATORY NATIONAL CERTIFICATION OF TEACHERS 
                    AND PARAPROFESSIONALS.

  (a) Prohibition on Mandatory Testing or Certification.--
Notwithstanding any other provision of law, the Secretary is 
prohibited from using Federal funds to plan, develop, 
implement, or administer any mandatory national teacher or 
paraprofessional test or certification.
  (b) Prohibition on Withholding Funds.--The Secretary is 
prohibited from withholding funds from any State or local 
educational agency if such State or local educational agency 
fails to adopt a specific method of teacher or paraprofessional 
certification.

SEC. 8603. PROHIBITION ON FEDERALLY SPONSORED TESTING.

  Notwithstanding any other provision of Federal law, 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.

SEC. 8604. SENSE OF CONGRESS REGARDING MEMORIALS.

  It is the sense of Congress that--
          (1) the saying of a prayer, the reading of a 
        scripture, or the performance of religious music, as 
        part of a memorial service that is held on the campus 
        of a public elementary or secondary school in order to 
        honor the memory of any person slain on that campus is 
        not objectionable under this Act; and
          (2) the design and construction of any memorial which 
        includes religious symbols, motifs, or sayings that is 
        placed on the campus of a public elementary or 
        secondary school in order to honor the memory of any 
        person slain on that campus is not objectionable under 
        this Act.

                          PART G--EVALUATIONS

SEC. 8651. 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 
                programs 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 utilization of 
        information relating to performance under the program 
        or project.
  (b) Title I Excluded.--The Secretary may not reserve under 
subsection (a) funds appropriated to carry out any program 
authorized under title I.
  (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 such program or project.

         PART [A] H--COMPREHENSIVE REGIONAL ASSISTANCE CENTERS

SEC. [13101.] 8701. PROGRAM AUTHORIZED.

  (a) Comprehensive Regional Assistance Centers.--
          (1)  * * *

           *       *       *       *       *       *       *

SEC. [13102.] 8702. REQUIREMENTS OF COMPREHENSIVE REGIONAL ASSISTANCE 
                    CENTERS.

  (a) In General.--Each comprehensive regional assistance 
center established under section [13101(a)] 8701(a) shall--
          (1)  * * *

           *       *       *       *       *       *       *

          (7) provide services to States, local educational 
        agencies, tribes, and schools, in coordination with the 
        National Diffusion Network State Facilitators 
        activities under section [13201] 8751, in order to 
        better implement the purposes of this part and provide 
        the support and assistance diffusion agents need to 
        carry out such agents' mission effectively; and

           *       *       *       *       *       *       *

SEC. [13103.] 8703. MAINTENANCE OF SERVICE AND APPLICATION 
                    REQUIREMENTS.

  (a)  * * *
  (b) Application Requirements.--Each entity or consortium 
desiring assistance under this part shall submit an application 
to the Secretary at such time, in such manner and accompanied 
by such information, as the Secretary may require. Each such 
application shall--
          (1) demonstrate how the comprehensive regional 
        assistance center will provide expertise and services 
        in the areas described in section [13102] 8702;
          (2) demonstrate how such centers will work with the 
        National Diffusion Network under section [13201] 8751 
        to conduct outreach to local educational agencies 
        receiving priority under section [13401] 8851;

           *       *       *       *       *       *       *

SEC. [13104.] 8704. TRANSITION.

  (a)  * * *
  (b) Extension of Previous Centers.--
          (1) In general.--The Secretary shall, notwithstanding 
        any other provision of law, use funds appropriated 
        under section [13105] 8705 to extend or continue 
        contracts and grants for existing categorical technical 
        assistance centers assisted under this Act (as such Act 
        was in effect on the day preceding the date of 
        enactment of the Improving America's Schools Act of 
        1994) through fiscal year 1996, and take other 
        necessary steps to ensure a smooth transition of 
        services provided under this part and that such 
        services will not be interrupted, curtailed, or 
        substantially diminished.

           *       *       *       *       *       *       *

SEC. [13105.] 8705. AUTHORIZATION OF APPROPRIATIONS.

  For the purpose of carrying out this part, there are 
authorized to be appropriated $70,000,000 for fiscal year 1995 
and such sums as may be necessary for each of the four 
succeeding fiscal years.

                 PART [B] I--NATIONAL DIFFUSION NETWORK

SEC. [13201.] 8751. PROGRAM AUTHORIZED.

  (a)  * * *

           *       *       *       *       *       *       *

  (e) State Facilitator Activities.--The National Diffusion 
Network State Facilitators shall provide professional 
development and technical assistance services to assist State 
educational agencies, local educational agencies, tribal 
divisions of education, schools, family and adult literacy 
programs, and other entities assisted under this Act, in--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) identifying educational technology needs and 
        securing the necessary technical assistance to address 
        such needs in coordination with the Eisenhower regional 
        consortia [under part C and the regional technical 
        assistance and professional development consortia under 
        subpart 3 of title III; and] under part F; and

           *       *       *       *       *       *       *

  (f) Additional Duties.--In addition, National Diffusion 
Network State Facilitators shall--
          (1)  * * *

           *       *       *       *       *       *       *

          (4) develop and implement an aggressive outreach plan 
        for reaching the local educational agencies and schools 
        receiving priority under section [13401] 8851; and

           *       *       *       *       *       *       *

SEC. [13202.] 8752. AUTHORIZATION OF APPROPRIATIONS.

  For the purpose of carrying out this part, there are 
authorized to be appropriated $25,000,000 for fiscal year 1995 
and such sums as may be necessary for each of the four 
succeeding fiscal years.

   PART [C] J--EISENHOWER REGIONAL MATHEMATICS AND SCIENCE EDUCATION 
                               CONSORTIA

SEC. [13301.] 8801. PROGRAM ESTABLISHED.

  (a) In General.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Special rule.--In any fiscal year, if the amount 
        made available pursuant to section [13308] 8808 is less 
        than $4,500,000, then the Secretary may waive the 
        provisions of paragraph (2) and award grants or 
        contracts of sufficient size, scope, and quality to 
        carry out this section.

           *       *       *       *       *       *       *

SEC. [13302.] 8802. USE OF FUNDS.

  Funds provided under this part may be used by a regional 
consortium, under the direction of a regional board established 
under section [13304] 8804, to--
          (1) work cooperatively with the other regional 
        consortia, the Eisenhower National Clearinghouse for 
        Science and Mathematics Education established under 
        section 2102(b) and federally funded technical 
        assistance providers to more effectively accomplish the 
        activities described in this section;
          (2) assist, train and provide technical assistance to 
        classroom teachers, administrators, and other educators 
        to identify, implement, assess or adapt the 
        instructional materials, teaching methods and 
        assessment tools described in section [13301(a)(1)] 
        8801(a)(1);
          (3) provide for the training of classroom teachers to 
        enable such teachers to instruct other teachers, 
        administrators, and educators in the use of the 
        instructional materials, teaching methods and 
        assessment tools described in section [13301(a)(1)] 
        8801(a)(1) in the classroom;

           *       *       *       *       *       *       *

SEC. [13303.] 8803. APPLICATION AND REVIEW.

  (a) In General.--Each eligible entity desiring a grant or 
contract under this part shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
additional information as the Secretary may reasonably require. 
Each such application shall--
          (1)  * * *

           *       *       *       *       *       *       *

SEC. [13304.] 8804. REGIONAL BOARDS.

  (a) In General.--Each eligible entity receiving a grant or 
contract under this part shall establish a regional board to 
oversee the administration and establishment of program 
priorities for the regional consortium established by such 
eligible entity. Such regional board shall be broadly 
representative of the agencies and organizations participating 
in the regional consortium.

           *       *       *       *       *       *       *

SEC. [13305.] 8805. PAYMENTS; FEDERAL SHARE; NON-FEDERAL SHARE.

  (a) Payments.--The Secretary shall pay to each eligible 
entity having an application approved under section [13303] 
8803 the Federal share of the cost of the activities described 
in the application.
  (b) Federal Share.--For the purpose of subsection (a), the 
Federal share shall be 80 percent.
  (c) Non-Federal Share.--The non-Federal share of the cost of 
activities described in the application submitted under section 
[13303] 8803 may be in cash or in kind, fairly evaluated. At 
least 10 percent of such non-Federal share shall be from 
sources other than the Federal Government, or State or local 
government.

SEC. [13306.] 8806. EVALUATION.

  (a) Evaluation Required.--The Secretary, through the Office 
of Educational Research and Improvement and in accordance with 
section [14701] 8651, shall collect sufficient data on, and 
evaluate the effectiveness of, the activities of each regional 
consortium.

           *       *       *       *       *       *       *

SEC. 13307. 8807. DEFINITIONS.

  For purposes of this part:
          (1)  * * *

           *       *       *       *       *       *       *

          (4) The term ``regional consortium'' means each 
        regional mathematics and science education consortium 
        established pursuant to section [13301] 8801.

           *       *       *       *       *       *       *

SEC. [13308.] 8808. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated $23,000,000 for 
fiscal year 1995, and such sums as may be necessary for each of 
the 4 succeeding fiscal years, to carry out this part.

           PART [D] K--TECHNOLOGY-BASED TECHNICAL ASSISTANCE

SEC. [13401.] 8851. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.

  The Secretary is authorized to provide a technology-based 
technical assistance service that will--
          (1) support the administration and implementation of 
        programs under this Act by providing information, 
        including legal and regulatory information, and 
        technical guidance and information, about best 
        practices; and
          (2) be accessible to all States, local educational 
        agencies, schools, community-based organizations and 
        others who are recipients of funds under this Act.

    [Subpart 3] PART L--REGIONAL TECHNICAL SUPPORT AND PROFESSIONAL 
                              DEVELOPMENT

SEC. [3141.] 8901. REGIONAL TECHNICAL SUPPORT AND PROFESSIONAL 
                    DEVELOPMENT.

  (a) Grants Authorized.--
          (1) Authority.--The Secretary, through the Office of 
        Educational Technology, shall make grants in accordance 
        with the provisions of this section, to regional 
        entities such as the Eisenhower Mathematics and Science 
        Regional Consortia under [part C of title XIII] part J, 
        the regional education laboratories, the comprehensive 
        regional assistance centers, or such other regional 
        entities as may be designated or established by the 
        Secretary. In awarding grants under this section, the 
        Secretary shall give priority to such consortia and 
        shall ensure that each geographic region of the United 
        States shall be served by such a consortium.

           *       *       *       *       *       *       *

    [TITLE IX--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

                       [PART A--INDIAN EDUCATION

[SEC. 9101. FINDINGS.

  [The Congress finds that--
          [(1) the Federal Government has a special 
        responsibility to ensure that educational programs for 
        all American Indian and Alaska Native children and 
        adults--
                  [(A) are based on high-quality, 
                internationally competitive content standards 
                and student performance standards and build on 
                Indian culture and the Indian community;
                  [(B) assist local educational agencies, 
                Indian tribes, and other entities and 
                individuals in providing Indian students the 
                opportunity to achieve such standards; and
                  [(C) meet the special educational and 
                culturally related academic needs of American 
                Indian and Alaska Native students;
          [(2) since the date of enactment of the initial 
        Indian Education Act in 1972, the level of involvement 
        of Indian parents in the planning, development, and 
        implementation of educational programs that affect such 
        parents and their children has increased significantly, 
        and schools should continue to foster such involvement;
          [(3) although the number of Indian teachers, 
        administrators, and university professors has increased 
        since 1972, teacher training programs are not 
        recruiting, training, or retraining a sufficient number 
        of Indian individuals as educators to meet the needs of 
        a growing Indian student population in elementary, 
        secondary, vocational, adult, and higher education;
          [(4) the dropout rate for Indian students is 
        unacceptably high, for example, 9 percent of Indian 
        students who were eighth graders in 1988 had already 
        dropped out of school by 1990;
          [(5) during the period from 1980 to 1990, the 
        percentage of Indian individuals living at or below the 
        poverty level increased from 24 percent to 31 percent, 
        and the readiness of Indian children to learn is 
        hampered by the high incidence of poverty, 
        unemployment, and health problems among Indian children 
        and their families; and
          [(6) research related specifically to the education 
        of Indian children and adults is very limited, and much 
        of the research is of poor quality or is focused on 
        limited local or regional issues.

[SEC. 9102. 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 special educational and culturally related academic 
needs of American Indians and Alaska Natives, so that such 
students can achieve to the same challenging State performance 
standards expected of all students.
  [(b) Programs.--This part carries out the purpose described 
in subsection (a) by authorizing programs of direct assistance 
for--
          [(1) meeting the special educational and culturally 
        related academic needs of American Indians and Alaska 
        Natives;
          [(2) the education of Indian children and adults;
          [(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. 9111. PURPOSE.

  [It is the purpose of this subpart to support local 
educational agencies in their efforts to reform elementary and 
secondary school programs that serve Indian students in order 
to ensure that such programs--
          [(1) are based on challenging State content standards 
        and State student performance standards that are used 
        for all students; and
          [(2) are designed to assist Indian students meet 
        those standards and assist the Nation in reaching the 
        National Education Goals.

[SEC. 9112. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  [(a) In General.--
          [(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 9116 and 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.
  [(b) Indian Tribes.--
          [(1) In general.--If a local educational agency that 
        is eligible for a grant under this subpart does not 
        establish a parent committee under section 9114(c)(4) 
        for such grant, an Indian tribe that represents no less 
        than one-half 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.

[SEC. 9113. 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 which has an approved 
        application under this subpart an amount equal to the 
        product of--
                  [(A) the number of Indian children who are 
                eligible under section 9116 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 in the United States.
          [(2) Reduction.--The Secretary shall reduce the 
        amount of each allocation determined under paragraph 
        (1) in accordance with subsection (e).
  [(b) Minimum Grant.--
          [(1) In general.--Notwithstanding subsection (e) of 
        this section, a local educational agency or an Indian 
        tribe (as authorized under section 9112(b)) that is 
        eligible for a grant under section 9112, 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 Act.
          [(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 quality programs.
  [(c) Definition.--For the purpose of this section, the term 
``average per-pupil expenditure of 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.--In addition to the grants awarded under subsection 
(a), and subject to paragraph (2), the Secretary shall allocate 
to the Secretary of the Interior an amount equal to the product 
of--
          [(1) the total number of Indian children enrolled in 
        schools that are operated by--
                  [(A) the Bureau of Indian Affairs; or
                  [(B) an Indian tribe, or an organization 
                controlled or sanctioned by an Indian tribal 
                government, for the children of such 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 (part B of title 
                V of the Augustus F. Hawkins-Robert T. Stafford 
                Elementary and Secondary School Improvement 
                Amendments of 1988); and
          [(2) the greater of--
                  [(A) the average per-pupil expenditure of the 
                State in which the school is located; or
                  [(B) 80 percent of the average per-pupil 
                expenditure in the United States.
  [(e) Ratable Reductions.--If the sums appropriated for any 
fiscal year under section 9162(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. 9114. 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 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) provides programs and activities to meet the 
        culturally related academic needs of American Indian 
        and Alaska Native students;
          [(2)(A) is consistent with, and promotes the goals 
        in, the State and local improvement plans, either 
        approved or being developed, under title III of the 
        Goals 2000: Educate America Act or, if such plans are 
        not approved or being developed, with the State and 
        local plans under sections 1111 and 1112 of this Act; 
        and
          [(B) includes academic content and student 
        performance goals for such children, and benchmarks for 
        attaining such goals, that are based on the challenging 
        State standards adopted under title I for all children;
          [(3) explains how Federal, State, and local programs, 
        especially 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 9115;
          [(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--
                          [(i) the committee of parents 
                        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 
        level of 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 submit such 
        reports to the Secretary, 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 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 local assessment and 
                prioritization of the special 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 
                public hearings held by such agency to provide 
                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 
                        and teachers; and
                          [(ii) if appropriate, Indian students 
                        attending secondary schools;
                  [(B) the membership of which is at least more 
                than one-half parents of Indian children;
                  [(C) that sets 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;
                  [(D) with respect to an application 
                describing a schoolwide program in accordance 
                with section 9115(c), 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 Indians and Alaskan Native 
                        students; and
                  [(E) has adopted reasonable bylaws for the 
                conduct of the activities of the committee and 
                abides by such bylaws.

[SEC. 9115. 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 9111, for services and activities that--
          [(1) are designed to carry out the comprehensive plan 
        of the local educational agency for Indian students, 
        and described in the application of the local 
        educational agency submitted to the Secretary under 
        section 9114(b);
          [(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 content 
        standards and State student performance standards;
          [(4) integrated educational services in combination 
        with other programs that meet the needs of Indian 
        children and their families;
          [(5) school-to-work transition activities to enable 
        Indian students to participate in programs such as the 
        programs supported by the School-to-Work Opportunities 
        Act of 1994 and the Carl D. Perkins Vocational and 
        Technical Education Act of 1998, including programs for 
        tech-prep, mentoring, and apprenticeship;
          [(6) activities to educate individuals concerning 
        substance abuse and to prevent substance abuse; and
          [(7) the acquisition of equipment, but only if the 
        acquisition of the equipment is essential to meet the 
        purpose described in section 9111.
  [(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 composed of parents established 
        pursuant to section 9114(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 9111.

[SEC. 9116. 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.--
          [(1) In general.--The form described in subsection 
        (a) shall include--
                  [(A) either--
                          [(i)(I) the name of the tribe or band 
                        of Indians (as defined in section 
                        9161(4)) 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
                          [(ii) if the child is not a member of 
                        a tribe or band of Indians, the name, 
                        the enrollment number (if readily 
                        available), and the organization (and 
                        address thereof) responsible for 
                        maintaining updated and accurate 
                        membership rolls of any parent or 
                        grandparent of the child from whom the 
                        child claims eligibility;
                  [(B) a statement of whether the tribe or band 
                of Indians with respect to which the child, 
                parent or grandparent of the child claims 
                membership is federally recognized;
                  [(C) the name and address of the parent or 
                legal guardian of the child;
                  [(D) a signature of the parent or legal 
                guardian of the child that verifies the 
                accuracy of the information supplied; and
                  [(E) any other information that the Secretary 
                considers necessary to provide an accurate 
                program profile.
          [(2) Minimum information.--In order for a child to be 
        eligible to be counted for the purpose of computing the 
        amount of a grant award made under section 9113, an 
        eligibility form prepared pursuant to this section for 
        a child shall include--
                  [(A) the name of the child;
                  [(B) the name of the tribe or band of Indians 
                (as defined in section 9161(4)) with respect to 
                which the child claims eligibility; and
                  [(C) the dated signature of the parent or 
                guardian of the child.
          [(3) Failure.--The failure of an applicant to furnish 
        any information described in this subsection other than 
        the information described in paragraph (2) with respect 
        to any child shall have no bearing on the determination 
        of whether the child is an eligible Indian child for 
        the purposes of determining the amount of a grant award 
        made under section 9113.
  [(c) Statutory Construction.--Nothing in this section shall 
be construed to affect a definition contained in section 9161.
  [(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 1985-1986 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 such eligibility; 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 under section 9113, the membership of the 
child, or any parent or grandparent of the child, in a tribe or 
band of Indians 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) 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 size of the local educational 
        agency and the geographic location of such agency.
          [(B) 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 
        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 that have not been expended.
          [(3) Excluded children.--A student who provides false 
        information for the form required under subsection (d) 
        shall not be counted for the purpose of computing the 
        amount of a grant under section 9113.
  [(g) Distribution.--For the purposes of the distribution of 
funds under this subpart to schools that receive funding from 
the Bureau of Indian Affairs pursuant to--
          [(1) section 1130 of the Education Amendments of 
        1978; and
          [(2) the Act of April 16, 1934 (48 Stat. 596, chapter 
        147),
the Secretary shall, in lieu of meeting the requirements of 
this section for counting Indian children, use a count of the 
number of students in such schools certified by the Bureau of 
Indian Affairs.

[SEC. 9117. 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 9113. 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 subpart (or under 
subpart 1 of the Indian Education Act of 1988) 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 9113 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, that 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.--If, for any fiscal year, the Secretary 
        determines that a local educational agency failed to 
        maintain the fiscal effort of 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 such 
                agency's failure to maintain its fiscal effort 
                at such level; and
                  [(B) not use the reduced amount of the 
                agency's 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) The Secretary may waive the 
        requirement of paragraph (1), for not more than one 
        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) The Secretary shall not use the reduced amount 
        of such 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. 9118. STATE EDUCATIONAL AGENCY REVIEW.

  [(a) Application.--Each entity desiring assistance 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 reasonably require except that this subsection 
shall not apply to Bureau-funded schools.
  [(b) Special Rule.--Before submitting an application under 
subsection (a) to the Secretary, the entity shall submit its 
application to the State educational agency. The State 
educational agency may comment on such application, however if 
such agency comments on such application such agency shall 
comment on all applications submitted by entities within the 
State and shall provide such comments to the appropriate local 
educational agency, which local educational agency shall be 
given an opportunity to respond to such comments.

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

[SEC. 9121. 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 such 
        actions as are necessary to achieve the coordination of 
        activities assisted under this subpart with--
                  [(A) other programs funded under this Act; 
                and
                  [(B) other Federal programs operated for the 
                benefit of American Indian and Alaska Native 
                children.
  [(b) Eligible Entities.--For the purpose of this section, the 
term ``eligible entity'' means a State educational agency, 
local educational agency, Indian tribe, Indian organization, 
federally supported elementary and secondary school for Indian 
students, Indian institution, including an Indian institution 
of higher education, or a consortium of such institutions.
  [(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 specified in 
        subsection (a)(1), including--
                  [(A) innovative programs related to the 
                educational needs of educationally deprived 
                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 secondary 
                school graduation;
                  [(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 school to postsecondary education;
                  [(I) partnership projects between schools and 
                local businesses for school-to-work transition 
                programs designed to provide Indian youth with 
                the knowledge and skills the youth need to make 
                an effective transition from school to a first 
                job in 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; or
                  [(K) other services that meet the purpose 
                described in subsection (a)(1).
          [(2) Preservice or inservice training.--Preservice or 
        inservice training of professional and paraprofessional 
        personnel may be a part of any program assisted under 
        this section.
  [(d) Grant Requirements and Applications.--
          [(1) Grant requirements.--(A) The Secretary may make 
        multiyear grants under this section for the planning, 
        development, pilot operation, or demonstration of any 
        activity described in subsection (c) for a period not 
        to exceed 5 years.
          [(B) In making multiyear grants under this section, 
        the Secretary shall give priority to 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) The Secretary shall make a grant payment 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 (2) and any subsequent modifications to such 
        application.
          [(D)(i) In addition to awarding the multiyear grants 
        described in subparagraph (A), the Secretary may award 
        grants to eligible entities for the dissemination of 
        exemplary materials or programs assisted under this 
        section.
          [(ii) The Secretary may award a dissemination grant 
        under this subparagraph if, prior to awarding the 
        grant, the Secretary determines that the material or 
        program to be disseminated has been adequately reviewed 
        and has a demonstrated--
                  [(I) educational merit; and
                  [(II) the ability to be replicated.
          [(2) Application.--(A) Any eligible entity that 
        desires to receive a grant under this subsection shall 
        submit an application to the Secretary at such time and 
        in such manner as the Secretary may require.
          [(B) Each application submitted to the Secretary 
        under subparagraph (A) 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; and
                  [(iii) such other assurances and information 
                as the Secretary may reasonably require.

[SEC. 9122. PROFESSIONAL DEVELOPMENT.

  [(a) Purposes.--The purposes of this section are--
          [(1) to increase the number of qualified Indian 
        individuals in 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 or local educational agency, in 
        consortium with an institution of higher education; and
          [(3) an Indian tribe or organization, in consortium 
        with an institution of higher education.
  [(c) Program Authorized.--The Secretary is authorized to 
award grants to eligible entities having applications approved 
under this section to enable such entities to carry out the 
activities described in subsection (d).
  [(d) Authorized Activities.--
          [(1) In general.--Grant funds under this section 
        shall be used to provide support and training for 
        Indian individuals in a manner consistent with the 
        purposes of this section. Such activities may include 
        but are not limited to, continuing programs, symposia, 
        workshops, conferences, and direct financial support.
          [(2) Special rules.--(A) For education personnel, the 
        training received pursuant to a grant under this 
        section may be inservice or preservice training.
          [(B) For individuals who are being trained to enter 
        any field other than education, the training received 
        pursuant to a grant under this section shall be in a 
        program that results in a graduate degree.
  [(e) 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 manner and 
        accompanied by such information, as the Secretary may 
        reasonably require.
          [(2) Preference.--In awarding grants under this 
        section, the Secretary shall give preference to 
        applications describing programs that train Indian 
        individuals.
  [(f) Special Rule.--In making grants under this section, the 
Secretary--
          [(1) shall consider the prior performance of the 
        eligible entity; and
          [(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 program 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 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 the compliance of such recipient with the 
        work requirement under paragraph (1).

[SEC. 9123. 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, 
                        and related fields; or
                          [(ii) to an undergraduate or graduate 
                        degree in engineering, business 
                        administration, natural resources, and 
                        related fields.
  [(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.
  [(c) Payments to Institutions in Lieu of Tuition.--The 
Secretary shall pay to the institution of higher education at 
which a fellowship recipient is pursuing a course of study, in 
lieu of tuition charged such recipient, such amounts as the 
Secretary may determine to be necessary to cover the cost of 
education provided 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 fellowship.
          [(2) Written notice.--Not 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 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 speciality 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 
                        assistance under this section; and
                          [(ii) that benefits Indian people; or
                  [(B) repay all or a prorated portion of such 
                assistance.
          [(2) Reporting procedure.--The Secretary shall 
        establish, by regulation, a reporting procedure under 
        which the recipient of training assistance under this 
        section, not later than 12 months after the date of 
        completion of the training and periodically thereafter, 
        shall provide information concerning the compliance of 
        such recipient with the work requirement under 
        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. 9124. GIFTED AND TALENTED.

  [(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 to, 
or enter into contracts, for the activities described in 
subsection (a), with--
          [(1) two tribally controlled community colleges 
        that--
                  [(A) are eligible for funding under the 
                Tribally Controlled Community College 
                Assistance Act of 1978; and
                  [(B) are fully accredited; or
          [(2) if the Secretary does not receive applications 
        that the Secretary determines to be approvable from two 
        colleges that meet the requirements of paragraph (1), 
        the American Indian Higher Education Consortium.
  [(c) Use of Funds.--
          [(1) In general.--The grants made, or contracts 
        entered into, by the Secretary under subsection (a) 
        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 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 (a) may enter into a contract 
        with any other entity, including the Children's 
        Television Workshop, to carry out the demonstration 
        project under this subsection.
          [(3) Demonstration projects.--Demonstration projects 
        assisted under subsection (a) 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) 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 project;
                  [(B) the conduct of educational, 
                psychosocial, and developmental activities that 
                the Secretary determines holds a reasonable 
                promise of resulting in substantial progress 
                toward meeting the educational needs of such 
                gifted and talented children, including but not 
                limited to--
                          [(i) demonstrating and exploring the 
                        use of Indian languages and exposure to 
                        Indian cultural traditions; and
                          [(ii) 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, 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 that are needed to enable such 
                children to benefit from the project.
          [(4) Application.--Each entity desiring a grant under 
        subsection (a) shall submit an application to the 
        Secretary at such time and in such manner as the 
        Secretary may prescribe.
  [(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 in this section referred to as ``Bureau 
        schools'') 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 to conduct one or more of the activities 
        described in paragraph (1) shall submit an application 
        to the Secretary in such form and at such time as the 
        Secretary may prescribe.
          [(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, grants 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) 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) The Secretary shall report to the Secretary of 
        the Interior and to the Congress any results from 
        activities described in paragraph (3)(B).
          [(7) Evaluation costs.--(A) 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 such subsection.
          [(B) 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),
        then 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. 9125. 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 under this section may be 
awarded for a period of not more than 3 years, except that 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--
                  [(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 
                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 
Indian Education Amendments of 1978.
  [(e) Authorization of Appropriations.--There are authorized 
to be appropriated to the Department of Education $3,000,000 
for each of the fiscal years 1995 through 1999 to carry out 
this section.

  [Subpart 3--Special Programs Relating to Adult Education for Indians

[SEC. 9131. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT INDIANS.

  [(a) In General.--The Secretary shall award grants to State 
and local educational agencies, and to 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) 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.
  [(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 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; 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 
                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--
                  [(A) there has been adequate participation, 
                by the individuals to be served and 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.

                [Subpart 4--National Research Activities

[SEC. 9141. NATIONAL ACTIVITIES.

  [(a) Authorized Activities.--The Secretary may use funds made 
available under section 9162(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 
        assure 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 by the Office 
        of Indian Education and the Office of Educational 
        Research and Improvement.

                   [Subpart 5--Federal Administration

[SEC. 9151. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

  [(a) Membership.--There 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--
          [(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) submit to the Congress, not later than June 30 
        of each year, a report on the activities of the 
        Council, 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. 9152. PEER REVIEW.

  [The Secretary may use a peer review process to review 
applications submitted to the Secretary under subpart 2, 3, or 
4.

[SEC. 9153. PREFERENCE FOR INDIAN APPLICANTS.

  [In making grants under subpart 2, 3, or 4, 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.

[SEC. 9154. MINIMUM GRANT CRITERIA.

  [The Secretary may not approve an application for a grant 
under subpart 2 or 3 unless the application is for a grant that 
is--
          [(1) of sufficient size, scope, and quality to 
        achieve the purpose or objectives of such grant; and
          [(2) based on relevant research findings.

       [Subpart 6--Definitions; Authorizations of Appropriations

[SEC. 9161. DEFINITIONS.

  [As used in 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) Adult education.--The term ``adult education'' 
        has the meaning given such term in section 203 of the 
        Adult Education and Family Literacy Act.
          [(3) 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
                  [(B) provided as elementary or secondary 
                education in the applicable State or to 
                preschool children.
          [(4) 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 it was in effect the 
                day preceding the date of enactment of the Act 
                entitled the ``Improving America's Schools Act 
                of 1994''.

[SEC. 9162. AUTHORIZATIONS OF APPROPRIATIONS.

  [(a) Subpart 1.--For the purpose of carrying out subpart 1 of 
this part, there are authorized to be appropriated to the 
Department of Education $61,300,000 for fiscal year 1995 and 
such sums as may be necessary for each of the four succeeding 
fiscal years.
  [(b) Subparts 2 Through 4.--For the purpose of carrying out 
subparts 2, 3, and 4 of this part, there are authorized to be 
appropriated to the Department of Education $26,000,000 for 
fiscal year 1995 and such sums as may be necessary for each of 
the four succeeding fiscal years.
  [(c) Subpart 5.--For the purpose of carrying out subpart 5 of 
this part, there are authorized to be appropriated to the 
Department of Education $3,775,000 for fiscal year 1995 and 
such sums as may be necessary for each of the four succeeding 
fiscal years.

                       [PART B--NATIVE HAWAIIANS

[SEC. 9201. SHORT TITLE.

  [This part may be cited as the ``Native Hawaiian Education 
Act''.

[SEC. 9202. FINDINGS.

  [The Congress finds and declares as follows:
          [(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 such 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 non-
        indigenous people in Hawai`i 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 monarchial government of the Hawaiian 
        Islands was established in 1810 under Kamehameha I, the 
        first King of Hawai`i.
          [(4) From 1826 until 1893, the United States 
        recognized the sovereignty and independence of the 
        Kingdom of Hawai`i, which was established in 1810 under 
        Kamehameha I, extended full and complete diplomatic 
        recognition to the Kingdom of Hawai`i, and entered into 
        treaties and conventions with the Kingdom of Hawai`i to 
        govern friendship, commerce and navigation in 1826, 
        1842, 1849, 1875, and 1887.
          [(5) In 1893, the sovereign, independent, 
        internationally recognized, and indigenous government 
        of Hawai`i, the Kingdom of Hawai`i, 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 
        Hawai`i, the Congress, on behalf of the people of 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 ``A 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 Hawai`i, including the government and crown 
        lands of the former Kingdom of Hawai`i, to the United 
        States, but mandated that revenue generated from these 
        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, the Congress in 1921 enacted the Hawaiian 
        Homes Commission Act, 1920, 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, the Congress affirmed the special 
        relationship between the United States and the Native 
        Hawaiians, as expressed by then Secretary of the 
        Interior Franklin K. Lane, who was quoted in the 
        committee report for the Hawaiian Homes Commission Act, 
        1920, as saying: ``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, the United States Congress again 
        acknowledged the unique status of the Hawaiian people 
        by including in the Act of June 20, 1938 (52 Stat. 781 
        et seq.), 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 Hawai`i 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 Hawai`i but 
        reaffirmed the trust relationship which existed 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 legislative 
        amendments 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 Hawai`i into 
        the Union'', approved March 18, 1959 (73 Stat. 4), the 
        United States ceded to the State of Hawai`i 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 reaffirmed the special relationship 
        which existed between the United States and the 
        Hawaiian people by retaining the legal responsibility 
        to enforce the public trust responsibility of the State 
        of Hawai`i 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 assumed special 
        responsibilities for Native Hawaiian lands and 
        resources at the time of the annexation of the 
        Territory in 1898, upon adoption of the Hawaiian Homes 
        Commission Act, 1920, and upon admission of the State 
        of Hawai`i into the Union in 1959, and has retained 
        certain of those responsibilities.
          [(13) In recognition of the special relationship 
        which exists between the United States and the Native 
        Hawaiian people, the Congress has extended to Native 
        Hawaiians the same rights and privileges accorded to 
        American Indian, Alaska Native, Eskimo, and Aleut 
        communities under the Native American Programs Act of 
        1974, the American Indian Religious Freedom Act, the 
        National Museum of the American Indian Act, the Native 
        American Graves Protection and Repatriation Act, the 
        National Historic Preservation Act, and the Native 
        American Languages Act.
          [(14) In recognition of the special relationship 
        which exists between the United States and the Native 
        Hawaiian people, the Congress has enacted numerous 
        special provisions of law for the benefit of Native 
        Hawaiians in the areas of health, education, labor, and 
        housing.
          [(15) In 1981, the Senate instructed the Office of 
        Education to submit to the Congress a comprehensive 
        report on Native Hawaiian education. The report, 
        entitled the ``Native Hawaiian Educational Assessment 
        Project'', was released in 1983 and documented that 
        Native Hawaiians scored below parity with 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 which were 
        related to their unique cultural situation, such as 
        different learning styles and low self-image.
          [(16) In recognition of the educational needs of 
        Native Hawaiians, in 1988, the Congress enacted title 
        IV of the Augustus F. Hawkins-Robert T. Stafford 
        Elementary and Secondary School Improvement Amendments 
        of 1988 to authorize and develop supplemental 
        educational programs to benefit Native Hawaiians.
          [(17) In 1993, the Kamehameha Schools Bishop Estate 
        released a ten-year update 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 exist 
        for Native Hawaiians. 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) half of Native Hawaiian women 
                        who give birth 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, for example--
                          [(i) Native Hawaiian students are 
                        more likely to be retained in grade 
                        level and to be excessively absent in 
                        secondary school;
                          [(ii) Native Hawaiian students are 
                        the highest users of drugs and alcohol 
                        in the State of Hawai`i; 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 
                Hawai`i Department of Education and there are 
                and will continue to be geographically rural, 
                isolated areas with a high Native Hawaiian 
                population density.
          [(18) The findings described in paragraphs (1) 
        through (17) are contrary to the high rate of literacy 
        and integration of traditional culture and Western 
        education achieved by Native Hawaiians through a 
        Hawaiian language-based public school system 
        established in 1840 by Kamehameha III.
          [(19) After the overthrow of the Kingdom of Hawai`i 
        in 1893, Hawaiian medium schools were banned. After 
        annexation, throughout the territorial and statehood 
        period, and until 1986, use of Hawaiian as a medium of 
        education in public schools was declared unlawful, 
        thereby causing 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 Hawai`i, in the constitution and 
        statutes of the State of Hawai`i--
                  [(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; and
                  [(B) recognizes the traditional language of 
                the Native Hawaiian people as an official 
                language of the State of Hawai`i, which may be 
                used as the language of instruction for all 
                subjects and grades in the public school 
                system.

[SEC. 9203. PURPOSE.

  [It is the purpose of this part to--
          [(1) authorize and develop supplemental educational 
        programs to assist Native Hawaiians in reaching the 
        National Education Goals;
          [(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, through the establishment of 
        a Native Hawaiian Education Council, and five island 
        councils;
          [(3) supplement and expand existing programs and 
        authorities in the area of education to further the 
        purposes of the title; and
          [(4) encourage the maximum participation of Native 
        Hawaiians in planning and management of Native Hawaiian 
        Education Programs.

[SEC. 9204. 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 25 members, including a 
representative of--
          [(1) each recipient of funds from the Secretary under 
        this part;
          [(2) the State of Hawai`i Department of Education;
          [(3) the State of Hawai`i Office of Hawaiian Affairs;
          [(4) Native Hawaiian educational organizations, such 
        as Alu Like, Inc., Kamehameha Schools Bishop Estate, 
        Hawaiian Language Immersion Advisory Council, Aha 
        Punana Leo, and the Queen Lili``uokalani Trust and 
        Children's Center; and
          [(5) each Native Hawaiian education island council 
        established under subsection (f).
  [(c) Conditions and Terms.--At least three-fourths of the 
members of the Education Council shall be Native Hawaiians. 
Members of the Education Council shall be appointed for three-
year terms.
  [(d) Administrative Grant for the Education Council.--The 
Secretary shall make a direct grant to the Education Council in 
order to enable the Education Council to--
          [(1) coordinate the educational and related services 
        and programs available to Native Hawaiians, including 
        the programs assisted under this part, and assess the 
        extent to which such services and programs meet the 
        needs of Native Hawaiians; and
          [(2) 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, on Native Hawaiian 
        education.
  [(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 to the Secretary, the Committee on 
        Indian Affairs of the Senate, and the Committee on 
        Education and Labor of the House of Representatives, 
        including any information that the Education Council 
        provides to the Secretary pursuant to subsection (i).
          [(2) Annual report.--The Education Council shall 
        present 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 
        deems appropriate.
  [(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 Office of Hawaiian Affairs 
        of the State of Hawai`i is authorized to facilitate the 
        establishment of Native Hawaiian education island 
        councils (hereafter in this part referred to as 
        ``island councils'') for the following islands:
                  [(A) Hawai`i.
                  [(B) Maui and Lana`i.
                  [(C) Moloka`i.
                  [(D) Kaua`i and Ni`ihau.
                  [(E) O`ahu.
          [(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 the 
        educational needs of all age groups, from preschool 
        through adulthood. 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 
respective council, or upon the request of the majority of the 
members of the respective council, but in any event not less 
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 services 
on the Education Council and each island council, respectively.
  [(i) Report.--Not later than four years after the date of the 
enactment of the Improving America's Schools Act of 1994, the 
Secretary shall prepare and submit to the Committee on Indian 
Affairs of the Senate, and the Committee on Education and Labor 
of the House of Representatives, a report which summarizes the 
annual reports of the Education Council, describes the 
allocation and utilization of funds under this part, and 
contains recommendations for changes in Federal, State, and 
local policy to advance the purposes of this part.
  [(j) Authorization of Appropriations.--There are authorized 
to be appropriated $500,000 for fiscal year 1995, and such sums 
as may be necessary for each of the 4 succeeding fiscal years, 
to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9205. NATIVE HAWAIIAN FAMILY-BASED EDUCATION CENTERS.

  [(a) General Authority.--The Secretary is authorized to make 
direct grants, to Native Hawaiian educational organizations or 
educational entities with experience in developing or operating 
Native Hawaiian programs or programs of instruction conducted 
in the Native Hawaiian language, to expand the operation of 
Family-Based Education Centers throughout the Hawaiian Islands. 
The programs of such centers may be conducted in the Hawaiian 
language, the English language, or a combination thereof, and 
shall include--
          [(1) parent-infant programs for prenatal through 
        three-year-olds;
          [(2) preschool programs for four- and five-year-olds;
          [(3) continued research and development; and
          [(4) a long-term followup and assessment program, 
        which may include educational support services for 
        Native Hawaiian language immersion programs or 
        transition to English speaking programs.
  [(b) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(c) Authorization of Appropriations.--In addition to any 
other amount authorized to be appropriated for the centers 
described in subsection (a), there are authorized to be 
appropriated $6,000,000 for fiscal year 1995, and such sums as 
may be necessary for each of the four succeeding fiscal years, 
to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9206. NATIVE HAWAIIAN HIGHER EDUCATION PROGRAM.

  [(a) General Authority.--
          [(1) In general.--The Secretary is authorized to make 
        direct grants, to Native Hawaiian educational 
        organizations or educational entities with experience 
        in developing or operating Native Hawaiian programs or 
        programs of instruction conducted in the Native 
        Hawaiian language, to enable such organizations or 
        entities to provide a program of baccalaureate and 
        post-baccalaureate fellowship assistance to Native 
        Hawaiian students.
          [(2) Activities.--Such program may include--
                  [(A) full or partial fellowship support for 
                Native Hawaiian students enrolled at two- or 
                four-year degree granting institutions of 
                higher education with awards to be based on 
                academic potential and financial need; and
                  [(B) full or partial fellowship support for 
                Native Hawaiian students enrolled at post-
                baccalaureate degree granting institutions of 
                higher education with priority given to 
                providing fellowship support for professions in 
                which Native Hawaiians are underrepresented and 
                with fellowship awards to be based on academic 
                potential and financial need;
                  [(C) counseling and support services for 
                students receiving fellowship assistance under 
                paragraph (1);
                  [(D) college preparation and guidance 
                counseling at the secondary school level for 
                students who may be eligible for fellowship 
                support pursuant to subsection (a)(2)(A);
                  [(E) appropriate research and evaluation of 
                the activities authorized by this section; and
                  [(F) implementation of faculty development 
                programs for the improvement and matriculation 
                of Native Hawaiian students.
  [(b) Special Conditions Required.--For the purpose of 
fellowships awarded under subsection (a), fellowship conditions 
shall be established whereby fellowship recipients obtain an 
enforceable contract obligation to provide their professional 
services, either during the fellowship period or upon 
completion of a baccalaureate or post-baccalaureate degree 
program, to the Native Hawaiian community.
  [(c) Special Rule.--No policy shall be made in implementing 
this section to prevent a Native Hawaiian student enrolled at 
an accredited two- or four-year degree granting institution of 
higher education outside of the State of Hawai`i from receiving 
a fellowship pursuant to subsections (a) and (b) of this 
section.
  [(d) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(e) Authorization of Appropriations.--There are authorized 
to be appropriated $2,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9207. NATIVE HAWAIIAN GIFTED AND TALENTED PROGRAM.

  [(a) General Authority.--The Secretary is authorized to make 
a grant, to a Native Hawaiian educational organization or an 
educational entity with experience in developing or operating 
Native Hawaiian programs or programs of instruction conducted 
in the Native Hawaiian language, for a gifted and talented 
program designed to--
          [(1) address the special needs of Native Hawaiian 
        elementary and secondary school students who are gifted 
        and talented students; and
          [(2) provide those support services to the families 
        of such students that are needed to enable such 
        students to benefit from the program.
  [(b) Uses of Funds.--The program funded under this section 
may include--
          [(1) the identification of the special needs of 
        Native Hawaiian gifted and talented students, 
        particularly with respect to--
                  [(A) the emotional and psychosocial needs of 
                such students; and
                  [(B) the provision of those support services 
                to the families of such students that are 
                needed to enable such students to benefit from 
                the program;
          [(2) the conduct of educational, psychosocial, and 
        developmental activities which hold reasonable promise 
        of resulting in substantial progress toward meeting the 
        educational needs of such students, including 
        demonstrating and exploring the use of the Native 
        Hawaiian language and exposure to Native Hawaiian 
        cultural traditions;
          [(3) leadership programs designed to--
                  [(A) replicate programs throughout the State 
                of Hawai`i for gifted and talented students who 
                are not served under this section; and
                  [(B) coordinate with other Native American 
                gifted and talented leadership programs, 
                including the dissemination of information 
                derived from the program conducted under this 
                section; and
          [(4) appropriate research, evaluation, and related 
        activities pertaining to--
                  [(A) the needs of such students; and
                  [(B) the provision of those support services 
                to the families of such students that are 
                needed to enable such students to benefit from 
                the program.
  [(c) Information Provision.--The Secretary is authorized to 
facilitate the establishment of a national network of Native 
Hawaiian and American Indian Gifted and Talented Centers, and 
ensure that the information developed by these centers shall be 
readily available to the educational community at large.
  [(d) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(e) Authorization of Appropriations.--In addition to any 
other amount authorized to be appropriated for the program 
described in this section, there are authorized to be 
appropriated $1,500,000 for fiscal year 1995, and such sums as 
may be necessary for each of the 4 succeeding fiscal years, to 
carry out this section. Funds appropriated under the authority 
of this subsection shall remain available until expended.

[SEC. 9208. NATIVE HAWAIIAN SPECIAL EDUCATION PROGRAM.

  [(a) General Authority.--The Secretary is authorized to make 
grants to, or enter into contracts with, Native Hawaiian 
educational organizations or educational entities with 
experience in developing or operating Native Hawaiian programs 
or programs of instruction conducted in the Native Hawaiian 
language, to operate a program to address the special education 
needs of Native Hawaiian students. Such program may include--
          [(1) the identification of Native Hawaiian students 
        with disabilities or who are otherwise in need of 
        special educational services;
          [(2) the identification of the special education 
        needs of such students, particularly with respect to--
                  [(A) the emotional and psychosocial needs of 
                such students; and
                  [(B) the provision of those support services 
                to the families of such students that are 
                needed to enable such students to benefit from 
                the program;
          [(3) the conduct of educational activities consistent 
        with part B of the Education of Individuals with 
        Disabilities Education Act which hold reasonable 
        promise of resulting in substantial progress toward 
        meeting the educational needs of such students;
          [(4) the conduct of educational, psychosocial, and 
        developmental activities which hold reasonable promise 
        of resulting in substantial progress toward meeting the 
        educational needs of such students, including 
        demonstrating and exploring the use of the Native 
        Hawaiian language and exposure to Native Hawaiian 
        cultural traditions; and
          [(5) appropriate research, evaluation, and related 
        activities pertaining to--
                  [(A) the needs of such students;
                  [(B) the provision of those support services 
                to the families of such students that are 
                needed to enable such student to benefit from 
                the program; and
                  [(C) the outcomes and benefits of activities 
                assisted under this section upon such students.
  [(b) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(c) Authorization of Appropriations.--In addition to any 
other amount authorized to be appropriated for the program 
described in this section, there are authorized to be 
appropriated $2,000,000 for fiscal year 1995, and such sums as 
may be necessary for each of the four succeeding fiscal years, 
to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9209. NATIVE HAWAIIAN CURRICULUM DEVELOPMENT, TEACHER TRAINING 
                    AND RECRUITMENT PROGRAM.

  [(a) General Authority.--The Secretary is authorized to make 
direct grants, to Native Hawaiian educational organizations or 
educational entities with experience in developing or operating 
Native Hawaiian programs or programs of instruction conducted 
in the Native Hawaiian language, for the following purposes:
          [(1) Curricula.--The development of curricula to 
        address the needs of Native Hawaiian students, 
        particularly elementary and secondary school students, 
        which may include programs of instruction conducted in 
        the Native Hawaiian language, and mathematics and 
        science curricula incorporating the relevant 
        application of Native Hawaiian culture and traditions.
          [(2) Preteacher training.--The development and 
        implementation of preteacher training programs in order 
        to ensure that student teachers within the State of 
        Hawai`i, particularly student teachers who are likely 
        to be employed in schools with a high concentration of 
        Native Hawaiian students, are prepared to better 
        address the unique needs of Native Hawaiian students, 
        within the context of Native Hawaiian culture, language 
        and traditions.
          [(3) Inservice teacher training.--The development and 
        implementation of inservice teacher training programs, 
        in order to ensure that teachers, particularly teachers 
        employed in schools with a high concentration of Native 
        Hawaiian students, are prepared to better address the 
        unique needs of Native Hawaiian students, within the 
        context of Native Hawaiian culture, language and 
        traditions.
          [(4) Teacher recruitment.--The development and 
        implementation of teacher recruitment programs to meet 
        the objectives of--
                  [(A) enhancing teacher recruitment within 
                communities with a high concentration of Native 
                Hawaiian students; and
                  [(B) increasing the numbers of teachers who 
                are of Native Hawaiian ancestry.
  [(b) Priority.--In awarding grants under this section, the 
Secretary shall give priority to awarding grants for activities 
described in subsection (a) that--
          [(1) focus on the needs of at-risk youth; or
          [(2) employ a program of instruction conducted in the 
        Native Hawaiian language, except that entities 
        receiving grants awarded pursuant to subsection (a)(2) 
        shall coordinate in the development of new curricula.
  [(c) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated $2,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9210. NATIVE HAWAIIAN COMMUNITY-BASED EDUCATION LEARNING CENTERS.

  [(a) General Authority.--The Secretary is authorized to make 
direct grants, to collaborative efforts between community-based 
Native Hawaiian organizations and community colleges, to 
develop, establish, and operate a minimum of three community-
based education learning centers.
  [(b) Purpose.--The learning centers described in subsection 
(a) shall meet the needs of families and communities through 
interdepartmental and interagency coordination of new and 
existing public and private programs and services, which may 
include--
          [(1) preschool programs;
          [(2) after-school programs; and
          [(3) vocational and adult education programs.
  [(c) Administrative Costs.--Not more than 7 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated $1,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9211. ADMINISTRATIVE PROVISIONS.

  [(a) Application Required.--No grant may be made under this 
part, nor any contract be entered into under this part, unless 
an application is submitted 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 
title.
  [(b) Special Rule.--Each application submitted under this 
title shall be accompanied by the comments of each local 
educational agency serving students who will participate in the 
project for which assistance is sought.

[SEC. 9212. DEFINITIONS.

  [For the purposes of this part--
          [(1) 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 Hawai`i, as evidenced by--
                          [(i) genealogical records;
                          [(ii) Kupuna (elders) or Kama`aina 
                        (long-term community residents) 
                        verification; or
                          [(iii) certified birth records.
          [(2) 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) has a demonstrated expertise in the 
                education of Native Hawaiian youth; and
                  [(D) has demonstrated expertise in research 
                and program development.
          [(3) 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 
                organizations; and
                  [(C) is recognized by the Governor of Hawai`i 
                for the purpose of planning, conducting, or 
                administering programs (or portions of 
                programs) for the benefit of Native Hawaiians.
          [(4) The term ``Native Hawaiian language'' means the 
        single Native American language indigenous to the 
        original inhabitants of the State of Hawai`i.
          [(5) The term ``Office of Hawaiian Affairs'' means 
        the Office of Hawaiian Affairs established by the 
        Constitution of the State of Hawai`i.
          [(6) The term ``Native Hawaiian community-based 
        organization'' means any organization which is composed 
        primarily of Native Hawaiians from a specific community 
        and which assists in the social, cultural and 
        educational development of Native Hawaiians in that 
        community.

                    [PART C--ALASKA NATIVE EDUCATION

[SEC. 9301. SHORT TITLE.

  [This part may be cited as the ``Alaska Native Educational 
Equity, Support and Assistance Act''.

[SEC. 9302. FINDINGS.

  [The Congress finds and declares:
          [(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. In addition to 
        low Native performance on standardized tests, 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 herein, 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 and village Alaska should be addressed through 
        the development and implementation of innovative, model 
        programs in a variety of areas.
          [(7) Congress finds that 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. 9303. PURPOSE.

  [It is the purpose of this part to--
          [(1) recognize the unique educational needs of Alaska 
        Natives;
          [(2) authorize the development of supplemental 
        educational programs to benefit Alaska Natives;
          [(3) supplement existing programs and authorities in 
        the area of education to further the purposes of this 
        part; and
          [(4) 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. 9304. ALASKA NATIVE EDUCATIONAL PLANNING, CURRICULUM DEVELOPMENT, 
                    TEACHER TRAINING AND RECRUITMENT PROGRAM.

  [(a) General Authority.--The Secretary shall make direct 
grants to Alaska Native organizations or educational entities 
with experience in developing or operating Alaska Native 
programs or programs of instruction conducted in Alaska Native 
languages, or to partnerships involving Alaska Native 
organizations, for the following purposes:
          [(1) Educational planning.--The consolidation of 
        existing educational plans, recommendations and 
        research into implementation methods and strategies to 
        improve schooling for Alaska Natives.
          [(2) Implementation of educational plans.--The 
        adoption and implementation of specific educational 
        plans developed under subsection (1) above.
          [(3) Curricula.--The development of curricula to 
        address the needs of Alaska Native students, 
        particularly elementary and secondary school students, 
        which may include innovative programs and pilot and 
        demonstration programs to develop and introduce 
        curriculum materials that reflect cultural diversities 
        or the contributions of Alaska Native people, programs 
        of instruction conducted in Native languages, and the 
        development of networks to introduce successful 
        techniques, programs and curriculum materials to rural 
        and urban schools, including:
                  [(A) multimedia social studies curricula 
                which fully and accurately portray the role of 
                Native Americans historically and 
                contemporarily; and
                  [(B) curricula and teaching materials for 
                instructions in Native languages.
          [(4) Preteacher training.--The development and 
        implementation of preteacher training programs in order 
        to ensure that student teachers within the State of 
        Alaska, particularly student teachers who are likely to 
        be employed in schools with a high concentration of 
        Alaska Native students, are prepared to better address 
        the cultural diversity and unique needs of Alaska 
        Native students;
          [(5) Teacher recruitment.--The development and 
        implementation of teacher recruitment programs to meet 
        the objectives of--
                  [(A) increasing the numbers of teachers who 
                are Alaska Natives;
                  [(B) enhancing teacher recruitment within 
                communities with a high concentration of Alaska 
                Native students; and
                  [(C) improving the teacher selection 
                processes in order to recruit teachers who are 
                more positively responsive to rural conditions 
                and who are suited for effective cross-cultural 
                instruction.
          [(6) Inservice teacher training.--The development and 
        implementation of inservice teacher training programs 
        in order to ensure that teachers are prepared to better 
        address the unique needs of Alaska Native students.
  [(b) Administrative Costs.--Not more than 10 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(c) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9305. ALASKA NATIVE HOME BASED EDUCATION FOR PRESCHOOL CHILDREN.

  [(a) General Authority.--The Secretary shall make direct 
grants to Alaska Native organizations or educational entities 
with experience in developing or operating Alaska Native 
programs, or to partnerships involving Alaska Native 
organizations, to implement home instruction programs for 
Alaska Native preschool youngsters. The objective of such 
programs shall be to develop parents as educators for their 
children and to assure the active involvement of parents in the 
education of their children from the earliest ages.
  [(b) Program Elements.--Home based education programs for 
Alaska Native children shall include--
          [(1) parent-infant programs for prenatal through 
        three-year olds;
          [(2) preschool programs for four- and five-year olds;
          [(3) training, education and support programs to 
        teach parents skills in observation, reading readiness, 
        story telling and critical thinking;
          [(4) continued research and development; and
          [(5) a long-term followup and assessment program.
  [(c) Eligibility of HIPPY Programs.--Programs based on the 
HIPPY (Home Instruction Program for Preschool Youngsters) model 
shall be eligible for funding under this section.
  [(d) Administrative Costs.--Not more than 10 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(e) Authorization of Appropriations.--There is authorized to 
be appropriated $2,000,000 for fiscal year 1995, and such sums 
as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9306. ALASKA NATIVE STUDENT ENRICHMENT PROGRAMS.

  [(a) General Authority.--The Secretary shall make a grant or 
grants to Alaska Native educational organizations or 
educational entities with experience in developing or operating 
Alaska Native programs, or to partnerships including Alaska 
Native organizations, for enrichment programs for Alaska Native 
students in the areas of science and mathematics education. The 
programs shall be designed to--
          [(1) prepare qualified students from rural areas who 
        are preparing to enter village high schools to excel in 
        science and mathematics; and
          [(2) provide those support services to the families 
        of such students that are needed to enable such 
        students to benefit from the program.
  [(b) Uses of Funds.--The program funded under this section 
may include--
          [(1) the identification of the students eligible to 
        participate in the program;
          [(2) the conduct of educational, psychosocial, and 
        developmental activities which hold reasonable promise 
        of resulting in substantial enrichment of the 
        educational performance of the participating students;
          [(3) leadership programs designed to provide for the 
        replication of the program in other subject matter 
        areas and the dissemination of information derived from 
        the program; and
          [(4) appropriate research, evaluation and related 
        activities pertaining to the benefits of such 
        enrichment programs.
  [(c) Administrative Costs.--Not more than 10 percent of the 
funds appropriated to carry out the provisions of this section 
for any fiscal year may be used for administrative purposes.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated $1,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the four succeeding fiscal 
years, to carry out this section. Funds appropriated under the 
authority of this subsection shall remain available until 
expended.

[SEC. 9307. ADMINISTRATIVE PROVISIONS.

  [(a) Application Required.--No grant may be made under this 
part, nor any contract be entered into under this part, unless 
an application is submitted 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 by Local School Districts or State 
Educational Entities.--Local school districts or State 
educational entities shall apply for funding under this part in 
partnership with Alaska Native organizations.
  [(c) Consultation Required.--Each applicant for funding shall 
provide for ongoing advice from and consultation with 
representatives of the Alaska Native community.
  [(d) Local Educational Agency Coordination.--Each local 
educational agency serving students who will participate in the 
program for which assistance is sought shall be informed 
regarding each application submitted under this part, except 
that approval by or concurrence from such local educational 
agency shall not be required.
  [(e) Implementation of Authorities.--The Secretary shall 
expeditiously obligate funds appropriated as provided in this 
part.

[SEC. 9308. DEFINITIONS.

  [For purposes of this part--
          [(1) the term ``Alaska Native'' has the same meaning 
        as the term ``Native'' has in section 3(b) of the 
        Alaska Native Claims Settlement Act; and
          [(2) the term ``Alaska Native organization'' means a 
        federally recognized tribe, consortium of tribes, 
        regional nonprofit Native association, and other Alaska 
        Native organizations that--
                  [(A) has or commits to acquire expertise in 
                the education of Alaska Natives; and
                  [(B) has Alaska Natives in substantive and 
                policy-making positions within the 
                organization.

              [TITLE X--PROGRAMS OF NATIONAL SIGNIFICANCE

             [PART A--FUND FOR THE IMPROVEMENT OF EDUCATION

[SEC. 10101. FUND FOR THE IMPROVEMENT OF EDUCATION.

  [(a) Fund Authorized.--From funds appropriated under 
subsection (d), the Secretary is authorized to support 
nationally significant programs and projects to improve the 
quality of education, assist all students to meet challenging 
State content standards and challenging State student 
performance standards, and contribute to achievement of the 
National Education Goals. The Secretary is authorized to carry 
out such programs and projects directly or through grants to, 
or contracts with, State and local educational agencies, 
institutions of higher education, and other public and private 
agencies, organizations, and institutions.
  [(b) Uses of Funds.--
          [(1) In general.--Funds under this section may be 
        used for--
                  [(A) activities that will promote systemic 
                education reform at the State and local levels, 
                such as--
                          [(i) research and development related 
                        to challenging State content and 
                        challenging State student performance 
                        standards;
                          [(ii) the development and evaluation 
                        of model strategies for--
                                  [(I) assessment of student 
                                learning;
                                  [(II) professional 
                                development for teachers and 
                                administrators;
                                  [(III) parent and community 
                                involvement; and
                                  [(IV) other aspects of 
                                systemic reform;
                          [(iii) developing and evaluating 
                        strategies for eliminating ability-
                        grouping practices, and developing 
                        policies and programs that place all 
                        students on a college-preparatory path 
                        of study, particularly in academic 
                        fields such as mathematics, science, 
                        English, and social studies, including 
                        comprehensive inservice programs for 
                        teachers and pupil services personnel 
                        and academic enrichment programs that 
                        supplement regular courses for 
                        students;
                          [(iv) developing and evaluating 
                        programs that directly involve parents 
                        and family members in the academic 
                        progress of their children;
                          [(v) developing and evaluating 
                        strategies for integrating instruction 
                        and assessment such that teachers and 
                        administrators can focus on what 
                        students should know and be able to do 
                        at particular grade levels, which 
                        instruction shall promote the synthesis 
                        of knowledge, encourage the development 
                        of problem-solving skills drawing on a 
                        vast range of disciplines, and promote 
                        the development of higher order 
                        thinking by all students; and
                          [(vi) developing and evaluating 
                        strategies for supporting professional 
                        development for teachers across all 
                        disciplines and for pupil services 
                        personnel, guidance counselors, and 
                        administrators, including inservice 
                        training that improves the skills of 
                        pupil services personnel, counselors 
                        and administrators for working with 
                        students from diverse populations;
                  [(B) demonstrations at the State and local 
                levels that are designed to yield nationally 
                significant results, including approaches to 
                public school choice and school-based 
                decisionmaking;
                  [(C) joint activities with other agencies to 
                assist the effort to achieve the National 
                Education Goals, including activities related 
                to improving the transition from preschool to 
                school and from school to work, as well as 
                activities related to the integration of 
                education and health and social services;
                  [(D) activities to promote and evaluate 
                counseling and mentoring for students, 
                including intergenerational mentoring;
                  [(E) activities to promote and evaluate 
                coordinated pupil services programs;
                  [(F) activities to promote comprehensive 
                health education;
                  [(G) activities to promote environmental 
                education;
                  [(H) activities to promote consumer, 
                economic, and personal finance education, such 
                as saving, investing, and entrepreneurial 
                education;
                  [(I) activities to promote programs to assist 
                students to demonstrate competence in foreign 
                languages;
                  [(J) studies and evaluation of various 
                education reform strategies and innovations 
                being pursued by the Federal Government, 
                States, and local educational agencies;
                  [(K) activities to promote metric education;
                  [(L) the identification and recognition of 
                exemplary schools and programs, such as Blue 
                Ribbon Schools;
                  [(M) programs designed to promote gender 
                equity in education by evaluating and 
                eliminating gender bias in instruction and 
                educational materials, identifying, and 
                analyzing gender inequities in educational 
                practices, and implementing and evaluating 
                educational policies and practices designed to 
                achieve gender equity;
                  [(N) programs designed to reduce excessive 
                student mobility, retain students who move 
                within a school district at the same school, 
                educate parents about the effect of mobility on 
                a child's education and encourage parents to 
                participate in school activities;
                  [(O) experiential-based learning, such as 
                service-learning;
                  [(P) the development and expansion of public-
                private partnership programs which extend the 
                learning experience, via computers, beyond the 
                classroom environment into student homes 
                through such programs as the Buddy System 
                Computer Project;
                  [(Q) other programs and projects that meet 
                the purposes of this section;
                  [(R) activities to promote child abuse 
                education and prevention programs;
                  [(S) activities to raise standards and 
                expectations for academic achievement among all 
                students, especially disadvantaged students 
                traditionally underserved in schools;
                  [(T) activities to provide the academic 
                support, enrichment and motivation to enable 
                all students to reach such standards;
                  [(U) demonstrations relating to the planning 
                and evaluations of the effectiveness of 
                projects under which local educational agencies 
                or schools contract with private management 
                organizations to reform a school or schools;
                  [(V) demonstrations that are designed to test 
                whether prenatal and counseling provided to 
                pregnant students may have a positive effect on 
                pregnancy outcomes, with such education and 
                counseling emphasizing the importance of 
                prenatal care, the value of sound diet and 
                nutrition habits, and the harmful effects of 
                smoking, alcohol, and substance abuse on fetal 
                development;
                  [(W) programs under section 10102;
                  [(X) programs under section 10103;
                  [(Y) programs under section 10104; and
                  [(Z) programs under section 10105;
          [(2) Additional uses.--The Secretary may also use 
        funds under this section to complete the project 
        periods for direct grants or contracts awarded under 
        the provisions of this Act, the Fund for the 
        Improvement and Reform of Schools and Teaching Act, or 
        title III of the Education for Economic Security Act, 
        as such Acts were in effect on the day preceding the 
        date of the enactment of the Improving America's 
        Schools Act of 1994.
          [(3) Special rule.--The Secretary shall not make 
        available more than $1,000,000 to carry out paragraph 
        (1)(R), nor more than $1,000,000 to carry out paragraph 
        (1)(V) during the period beginning on October 1, 1994, 
        through September 30, 1999.
  [(c) Awards.--
          [(1) In general.--The Secretary may--
                  [(A) make awards under this section on the 
                basis of competitions announced by the 
                Secretary; and
                  [(B) support meritorious unsolicited 
                proposals.
          [(2) Special rule.--The Secretary shall ensure that 
        programs, projects, and activities supported under this 
        section are designed so that the effectiveness of such 
        programs, projects, and activities is readily 
        ascertainable.
          [(3) Peer review.--The Secretary shall use a peer 
        review process in reviewing applications for assistance 
        under this section and may use funds appropriated under 
        subsection (d) for the cost of such peer review.
  [(d) Authorization.--For the purpose of carrying out this 
section, there are authorized to be appropriated $50,000,000 
for fiscal year 1995 and such sums as may be necessary for each 
of the four succeeding fiscal years.

[SEC. 10102. ELEMENTARY SCHOOL COUNSELING DEMONSTRATION.

  [(a) Counseling Demonstration.--
          [(1) In General.--The Secretary may award grants 
        under this section to establish or expand elementary 
        school counseling programs.
          [(2) Priority.--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 the 
                children in the elementary schools served by 
                the applicant;
                  [(B) propose the most promising and 
                innovative approaches for initiating or 
                expanding elementary 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 urban, suburban, and rural 
        areas.
          [(4) Duration.--A grant under this section shall be 
        awarded for a period not to exceed three years.
          [(5) Maximum grant.--A grant under this section shall 
        not exceed $400,000 for any fiscal year.
  [(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 elementary school 
                population to be targeted by the program, the 
                particular personal, social, emotional, 
                educational, and career development 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;
                  [(D) describe the collaborative efforts to be 
                undertaken with institutions of higher 
                education, businesses, labor organizations, 
                community groups, social service agencies, and 
                other public or private entities to enhance the 
                program and promote school-linked services 
                integration;
                  [(E) describe collaborative efforts with 
                institutions of higher education which 
                specifically seek to enhance or improve 
                graduate programs specializing in the 
                preparation of elementary school counselors, 
                school psychologists, and school social 
                workers;
                  [(F) document that the applicant has the 
                personnel qualified to develop, implement, and 
                administer the program;
                  [(G) describe how any diverse cultural 
                populations, if applicable, would be served 
                through the program;
                  [(H) assure that the funds made available 
                under this part for any fiscal year will be 
                used to supplement and, to the extent 
                practicable, increase the level of funds that 
                would otherwise be available from non-Federal 
                sources for the program described in the 
                application, and in no case supplant such funds 
                from non-Federal sources; and
                  [(I) assure that the applicant will appoint 
                an advisory board composed of parents, school 
                counselors, school psychologists, school social 
                workers, other pupil services personnel, 
                teachers, school administrators, and community 
                leaders to advise the local educational agency 
                on the design and implementation of the 
                program.
  [(c) Use of Funds.--
          [(1) In general.--Grant funds under this section 
        shall be used to initiate or expand elementary school 
        counseling programs that comply with the requirements 
        in paragraph (2).
          [(2) Program requirements.--Each program assisted 
        under this section shall--
                  [(A) be comprehensive in addressing the 
                personal, social, emotional, 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 of the local educational 
                agency;
                  [(D) expand counseling services only through 
                qualified school counselors, school 
                psychologists, and school social workers;
                  [(E) use innovative approaches to increase 
                children's understanding of peer and family 
                relationships, work and self, decisionmaking, 
                academic and career planning, or to improve 
                social functioning;
                  [(F) provide counseling services that are 
                well-balanced among classroom group and small 
                group counseling, individual counseling, and 
                consultation with parents, teachers, 
                administrators, and other pupil services 
                personnel;
                  [(G) include inservice training for school 
                counselors, school social workers, school 
                psychologists, other pupil services personnel, 
                teachers, and instructional staff;
                  [(H) involve parents of participating 
                students in the design, implementation, and 
                evaluation of a counseling program;
                  [(I) involve collaborative efforts with 
                institutions of higher education, businesses, 
                labor organizations, community groups, social 
                service agencies, or other public or private 
                entities to enhance the program and promote 
                school-linked services integration; and
                  [(J) evaluate annually the effectiveness and 
                outcomes of the counseling services and 
                activities assisted under this section.
          [(3) Report.--The Secretary shall issue a report 
        evaluating the programs assisted pursuant to each grant 
        under this subsection at the end of each grant period 
        in accordance with section 14701, but in no case later 
        than January 30, 1998.
          [(4) Dissemination.--The Secretary shall make the 
        programs assisted under this section available for 
        dissemination, either through the National Diffusion 
        Network or other appropriate means.
          [(5) Limit on administration.--Not more than five 
        percent of the amounts made available under this 
        section in any fiscal year shall be used for 
        administrative costs to carry out this section.
  [(d) Definitions.--For purposes of this section--
          [(1) the term ``school counselor'' means an 
        individual who has documented competence in counseling 
        children and adolescents in a school setting and who--
                  [(A) possesses State licensure or 
                certification granted 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;
          [(2) the term ``school psychologist'' means an 
        individual who--
                  [(A) possesses 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 shall be in the school setting;
                  [(B) possesses State licensure or 
                certification in 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;
          [(3) the term ``school social worker'' means an 
        individual who holds a master's degree in social work 
        and is licensed or certified by the State in which 
        services are provided or holds a school social work 
        specialist credential; and
          [(4) the term ``supervisor'' means an individual who 
        has the equivalent number of years of professional 
        experience in such individual's respective discipline 
        as is required of teaching experience for the 
        supervisor or administrative credential in the State of 
        such individual.

[SEC. 10103. PARTNERSHIPS IN CHARACTER EDUCATION PILOT PROJECT.

  [(a) Program Authorized.--
          [(1) In general.--The Secretary is authorized to make 
        up to a total of ten grants annually to partnerships of 
        State educational agencies and local educational 
        agencies for the design and implementation of character 
        education programs that incorporate the elements of 
        character listed in subsection (d), as well as other 
        character elements identified by applicants.
          [(2) Maximum amount of grant.--No State educational 
        agency shall receive more than a total of $1,000,000 in 
        grants under this part.
          [(3) Duration.--Each grant under this section shall 
        be awarded for a period not to exceed five years, of 
        which the State educational agency shall not use more 
        than one year for planning and program design.
  [(b) State Educational Agency Applications.--
          [(1) Requirement.--Each State educational agency 
        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) Partnerships.--Each State educational agency 
        desiring a grant under this section shall form a 
        partnership with at least one local educational agency 
        to be eligible for funding. The partnership shall 
        pursue State and local initiatives to meet the 
        objectives of this section.
          [(3) Application.--Each application under this 
        section shall include--
                  [(A) a list of the local educational agencies 
                entering into the partnership with the State 
                educational agency;
                  [(B) a description of the goals of the 
                partnership;
                  [(C) a description of activities that will be 
                pursued by the participating local educational 
                agencies, including--
                          [(i) how parents, students, and other 
                        members of the community, including 
                        members of private and nonprofit 
                        organizations, will be involved in the 
                        design and implementation of the 
                        program;
                          [(ii) curriculum and instructional 
                        practices;
                          [(iii) methods of teacher training 
                        and parent education that will be used 
                        or developed; and
                          [(iv) examples of activities that 
                        will be carried out under this part;
                  [(D) a description of how the State 
                educational agency will provide technical and 
                professional assistance to its local 
                educational agency partners in the development 
                and implementation of character education 
                programs;
                  [(E) a description of how the State 
                educational agency will evaluate the success of 
                local programs and how local educational 
                agencies will evaluate the progress of their 
                own programs;
                  [(F) a description of how the State 
                educational agency will assist other interested 
                local educational agencies that are not members 
                of the original partnership in designing and 
                establishing programs;
                  [(G) a description of how the State 
                educational agency will establish a 
                clearinghouse for information on model 
                programs, materials, and other information the 
                State and local educational agencies determine 
                to be appropriate;
                  [(H) an assurance that the State educational 
                agency will annually provide to the Secretary 
                such information as may be required to 
                determine the effectiveness of the program; and
                  [(I) any other information that the Secretary 
                may require.
          [(4) Non-partner local educational agencies.--Any 
        local educational agency that was not a partner with 
        the State when the application was submitted may become 
        a partner by submitting an application for partnership 
        to the State educational agency, containing such 
        information that the State educational agency may 
        require.
  [(c) Evaluation and Program Development.--
          [(1) Requirement.--Each State educational agency 
        receiving a grant under this section shall submit to 
        the Secretary a comprehensive evaluation of the program 
        assisted under this part, including the impact on 
        students, teachers, administrators, parents, and 
        others--
                  [(A) by the mid-term of the program; and
                  [(B) not later than one year after completion 
                of such program.
          [(2) Contracts for evaluation.--Each State 
        educational agency receiving a grant under this section 
        may contract with outside sources, including 
        institutions of higher education, and private and 
        nonprofit organizations, for purposes of evaluating 
        their program and measuring the success of the program 
        toward fostering in students the elements of character 
        listed in subsection (b).
          [(3) Factors.--Factors which may be considered in 
        evaluating the success of the program may include--
                  [(A) discipline problems;
                  [(B) students' grades;
                  [(C) participation in extracurricular 
                activities;
                  [(D) parental and community involvement;
                  [(E) faculty and administration involvement; 
                and
                  [(F) student and staff morale.
          [(4) Materials and program development.--Local 
        educational agencies, after consulting with the State 
        educational agency, may contract with outside sources, 
        including institutions of higher education, and private 
        and nonprofit organizations, for assistance in 
        developing curriculum, materials, teacher training, and 
        other activities related to character education.
  [(d) Elements of Character.--
          [(1) In general.--Applicants desiring funding under 
        this part shall develop character education programs 
        that incorporate the following elements of character:
                  [(A) Caring.
                  [(B) Civic virtue and citizenship.
                  [(C) Justice and fairness.
                  [(D) Respect.
                  [(E) Responsibility.
                  [(F) Trustworthiness.
                  [(G) Any other elements deemed appropriate by 
                the members of the partnership.
          [(2) Additional elements of character.--A local 
        educational agency participating under this section 
        may, after consultation with schools and communities of 
        such agency, define additional elements of character 
        that the agency determines to be important to the 
        schools and communities of such agency.
  [(e) Use of Funds.--Of the total funds received by a State 
educational agency in any fiscal year under this section--
          [(1) not more than 30 percent of such funds may be 
        retained by the State educational agency, of which--
                  [(A) not more than 10 percent of such funds 
                may be used for administrative purposes; and
                  [(B) the remainder of such funds may be used 
                for--
                          [(i) collaborative initiatives with 
                        local educational agencies;
                          [(ii) the establishment of the 
                        clearinghouse, preparation of 
                        materials, teacher training; and
                          [(iii) other appropriate activities; 
                        and
          [(2) the remaining of such funds shall be used to 
        award subgrants to local educational agencies, of 
        which--
                  [(A) not more than 10 percent of such funds 
                may be retained for administrative purposes; 
                and
                  [(B) the remainder of such funds may be used 
                to--
                          [(i) award subgrants to schools 
                        within the local educational agency; 
                        and
                          [(ii) pursue collaborative efforts 
                        with the State educational agency.
  [(f) Selection of Grantees.--
          [(1) Criteria.--The Secretary shall select, through 
        peer review, partnerships to receive grants under this 
        section on the basis of the quality of the applications 
        submitted under subsection (b), taking into 
        consideration such factors as--
                  [(A) the quality of the activities proposed 
                by local educational agencies;
                  [(B) the extent to which the program fosters 
                in students the elements of character;
                  [(C) the extent of parental, student, and 
                community involvement;
                  [(D) the number of local educational agencies 
                involved in the effort;
                  [(E) the quality of the plan for measuring 
                and assessing success; and
                  [(F) the likelihood that the goals of the 
                program will be realistically achieved.
          [(2) Diversity of projects.--The Secretary shall 
        approve applications under this section in a manner 
        that ensures, to the extent practicable, that programs 
        assisted under this section--
                  [(A) serve different areas of the Nation, 
                including urban, suburban, and rural areas; and
                  [(B) serve schools that serve minorities, 
                Native Americans, students of limited-English 
                proficiency, and disadvantaged students.

[SEC. 10104. PROMOTING SCHOLAR-ATHLETE COMPETITIONS.

  [(a) In General.--The Secretary is authorized to award a 
grant to a nonprofit organization to reimburse such 
organizations for the costs of conducting scholar-athlete games 
to be held in 1999.
  [(b) Priority.--In awarding the grant under subsection (a), 
the Secretary shall give priority to a nonprofit organization 
that--
          [(1) is described in section 501(c)(3) of, and exempt 
        from taxation under section 501(a) of, the Internal 
        Revenue Code of 1986, and is affiliated with a 
        university capable of hosting a large educational, 
        cultural, and athletic event that will serve as a 
        national model;
          [(2) has the capability and experience in 
        administering federally funded scholar-athlete games;
          [(3) has the ability to provide matching funds, on a 
        dollar-for-dollar basis, from foundations and the 
        private sector for the purpose of conducting a scholar-
        athlete program;
          [(4) has the organizational structure and capability 
        to administer a model scholar-athlete program in the 
        summer of 1999;
          [(5) has the organizational structure and expertise 
        to replicate the scholar-athlete program in various 
        venues throughout the United States internationally; 
        and
          [(6) has plans for conducting scholar-athlete games 
        after 1999 without Federal assistance.

[SEC. 10105. SMALLER LEARNING COMMUNITIES.

  [(a) 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 require. Each such application 
shall describe--
          [(1) strategies and methods the applicant 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 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 part;
          [(7) the goals and objectives of the activities 
        assisted under this part, including a description of 
        how such activities will better enable all students to 
        reach challenging State content standards and State 
        student performance standards;
          [(8) the methods by which the applicant will assess 
        progress in meeting such goals and objectives;
          [(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 rest of the school;
          [(10) a description of 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 applicant will coordinate or use funds 
        provided under this part with other funds provided 
        under this Act or other Federal laws;
          [(12) grade levels or ages of students who will 
        participate in the smaller learning community or 
        communities; and
          [(13) the method of placing students in the smaller 
        learning community or communities, such that students 
        are not placed according to ability, performance or any 
        other measure, so that students are placed at random or 
        by their own choice, not pursuant to testing or other 
        judgments.
  [(b) Authorized Activities.--Funds under this section may be 
used--
          [(1) to study the feasibility of creating the smaller 
        learning community or communities as well as effective 
        and innovative organizational and instructional 
        strategies that will be used in the smaller learning 
        community or communities;
          [(2) to research, develop and implement strategies 
        for creating the smaller learning community or 
        communities, as well as effective and innovative 
        changes in curriculum and instruction, geared to high 
        State content standards and State student performance 
        standards;
          [(3) to provide professional development for school 
        staff in innovative teaching methods that challenge and 
        engage students to be used in the smaller learning 
        community or communities; and
          [(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, as well as to provide links between 
        students and their community.

[SEC. 10106. NATIONAL STUDENT AND PARENT MOCK ELECTION.

  [(a) In General.--The Secretary is authorized to award grants 
to national nonprofit, nonpartisan organizations that work to 
promote voter participation in American elections to enable 
such organizations to carry out voter education activities for 
students and their parents. Such activities shall--
          [(1) be limited to simulated national elections that 
        permit participation by students and parents from all 
        50 States in the United States; and
          [(2) consist of--
                  [(A) school forums and local cable call-in 
                shows on the national issues to be voted upon 
                in an ``issue forum'';
                  [(B) speeches and debates before students and 
                parents by local candidates or stand-ins for 
                such candidates;
                  [(C) quiz team competitions, mock press 
                conferences and speechwriting competitions;
                  [(D) weekly meetings to follow the course of 
                the campaign; or
                  [(E) school and neighborhood campaigns to 
                increase voter turnout, including newsletters, 
                posters, telephone chains, and transportation.
  [(b) Requirement.--Each organization receiving a grant under 
this section shall present awards to outstanding student and 
parent mock election projects.

[SEC. 10107. MODEL PROJECTS.

  [(a) Program Authorized.--The Secretary is authorized to 
award grants to cultural institutions to enable such 
institutions to develop and expand model projects of outreach 
activities for at-risk children in the communities served by 
such institutions, including activities which integrate such 
institution's cultural programming with other disciplines, 
including environmental, mathematics, and science programs.
  [(b) Priority.--In awarding grants under this section the 
Secretary shall give priority to activities that are part of an 
overall State, local, and private commitment, seek to improve 
learning for at-risk youth, and are substantially funded by 
State, local, or private funds.

                 [PART B--GIFTED AND TALENTED CHILDREN

[SEC. 10201. SHORT TITLE.

  [This part may be cited as the ``Jacob K. Javits Gifted and 
Talented Students Education Act of 1994''.

[SEC. 10202. FINDINGS AND PURPOSES.

  [(a) Findings.--The Congress finds and declares that--
          [(1) all students can learn to high standards and 
        must develop their talents and realize their potential 
        if the United States is to prosper;
          [(2) gifted and talented students are a national 
        resource vital to the future of the Nation and its 
        security and well-being;
          [(3) too often schools fail to challenge students to 
        do their best work, and students who are not challenged 
        will not learn to challenging State content standards 
        and challenging State student performance standards, 
        fully develop their talents, and realize their 
        potential;
          [(4) unless the special abilities of gifted and 
        talented students are recognized and developed during 
        such students' elementary and secondary school years, 
        much of such students' special potential for 
        contributing to the national interest is likely to be 
        lost;
          [(5) gifted and talented students from economically 
        disadvantaged families and areas, and students of 
        limited-English proficiency are at greatest risk of 
        being unrecognized and of not being provided adequate 
        or appropriate educational services;
          [(6) State and local educational agencies and private 
        nonprofit schools often lack the necessary specialized 
        resources to plan and implement effective programs for 
        the early identification of gifted and talented 
        students and for the provision of educational services 
        and programs appropriate to their special needs;
          [(7) the Federal Government can best carry out the 
        limited but essential role of stimulating research and 
        development and personnel training and providing a 
        national focal point of information and technical 
        assistance that is necessary to ensure that the 
        Nation's schools are able to meet the special 
        educational needs of gifted and talented students, and 
        thereby serve a profound national interest; and
          [(8) the experience and knowledge gained in 
        developing and implementing programs for gifted and 
        talented students can and should be used as a basis 
        to--
                  [(A) develop a rich and challenging 
                curriculum for all students; and
                  [(B) provide all students with important and 
                challenging subject matter to study and 
                encourage the habits of hard work.
  [(b) Statement of Purpose.--It is the purpose of this part--
          [(1) to provide financial assistance to State and 
        local educational agencies, institutions of higher 
        education, and other public and private agencies and 
        organizations, to initiate a coordinated program of 
        research, demonstration projects, personnel training, 
        and similar activities designed to build a nationwide 
        capability in elementary and secondary schools to meet 
        the special educational needs of gifted and talented 
        students;
          [(2) to encourage the development of rich and 
        challenging curricula for all students through the 
        appropriate application and adaptation of materials and 
        instructional methods developed under this part; and
          [(3) to supplement and make more effective the 
        expenditure of State and local funds, for the education 
        of gifted and talented students.

[SEC. 10203. CONSTRUCTION.

  [Nothing in this part shall be construed to prohibit a 
recipient of funds under this part from serving gifted and 
talented students simultaneously with students with similar 
educational needs, in the same educational settings where 
appropriate.

[SEC. 10204. AUTHORIZED PROGRAMS.

  [(a) Establishment of Program.--
          [(1) In general.--From the sums appropriated under 
        section 10207 in any fiscal year the Secretary (after 
        consultation with experts in the field of the education 
        of gifted and talented students) shall make grants to 
        or enter into contracts with State educational 
        agencies, local educational agencies, institutions of 
        higher education, or other public agencies and private 
        agencies and organizations (including Indian tribes and 
        Indian organizations (as such terms are defined by the 
        Indian Self-Determination and Education Assistance Act) 
        and Native Hawaiian organizations) to assist such 
        agencies, institutions, and organizations which submit 
        applications in carrying out programs or projects 
        authorized by this part 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 desiring assistance 
        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. 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) Uses of Funds.--Programs and projects assisted under 
this section may include--
          [(1) professional development (including fellowships) 
        for personnel (including leadership personnel) involved 
        in the education of gifted and talented students;
          [(2) establishment and operation of 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, summer 
        programs, mentoring programs, service learning 
        programs, and cooperative programs involving business, 
        industry, and education;
          [(3) training of personnel and parents involved in 
        gifted and talented programs with respect to the impact 
        of gender role socialization on the educational needs 
        of gifted and talented children and in gender equitable 
        education methods, techniques and practices;
          [(4) implementing innovative strategies, such as 
        cooperative learning, peer tutoring and service 
        learning;
          [(5) strengthening the capability of State 
        educational agencies and institutions of higher 
        education to provide leadership and assistance to local 
        educational agencies and nonprofit private schools in 
        the planning, operation, and improvement of programs 
        for the identification and education of gifted and 
        talented students and the appropriate use of gifted and 
        talented programs and methods to serve all students;
          [(6) programs of technical assistance and information 
        dissemination, including how gifted and talented 
        programs and methods, where appropriate, may be adapted 
        for use by all students; and
          [(7) carrying out--
                  [(A) 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 purposes 
                of this part.
  [(c) Establishment of National Center.--
          [(1) In general.--The Secretary (after consultation 
        with experts in the field of the education of gifted 
        and talented students) shall establish a National 
        Center for Research and Development in 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 agency, or a combination 
        or consortium of such institutions and agencies, for 
        the purpose of carrying out activities described in 
        paragraph (7) of subsection (b).
          [(2) Director.--Such National Center shall have 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 other 
        institutions of higher education, State or local 
        educational agencies, or other public or private 
        agencies and organizations.
  [(d) Limitation.--Not more than 30 percent of the funds 
available in any fiscal year to carry out the programs and 
projects authorized by this section may be used to conduct 
activities pursuant to subsection (b)(7) or (c).
  [(e) 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 such Office; and
          [(2) may include collaborative research activities 
        which are jointly funded and carried out with such 
        Office.

[SEC. 10205. PROGRAM PRIORITIES.

  [(a) General Priority.--In the administration of this part 
the Secretary shall give highest priority--
          [(1) to the identification of and the provision of 
        services to gifted and talented students who may not be 
        identified and served through traditional assessment 
        methods (including economically disadvantaged 
        individuals, individuals of limited-English 
        proficiency, and individuals with disabilities); and
          [(2) to programs and projects designed to develop or 
        improve the capability of schools in an entire State or 
        region of the Nation through cooperative efforts and 
        participation of State and local educational agencies, 
        institutions of higher education, and other public and 
        private agencies and organizations (including business, 
        industry, and labor), to plan, conduct, and improve 
        programs for the identification of and service to 
        gifted and talented students, such as mentoring and 
        apprenticeship programs.
  [(b) Service Priority.--In approving applications for 
assistance under section 10204(a)(2), the Secretary shall 
assure that in each fiscal year at least one-half of the 
applications approved under such section address the priority 
described in subsection (a)(1).

[SEC. 10206. GENERAL PROVISIONS.

  [(a) Participation of Private School Children and Teachers.--
In making grants and entering into contracts under this part, 
the Secretary shall ensure, where appropriate, that provision 
is made for the equitable participation of students and 
teachers in private nonprofit elementary and secondary schools, 
including the participation of teachers and other personnel in 
professional development programs serving such children.
  [(b) Review, Dissemination, and Evaluation.--The Secretary 
shall--
          [(1) use a peer review process in reviewing 
        applications under this part;
          [(2) ensure that information on the activities and 
        results of programs and projects funded under this part 
        is disseminated to appropriate State and local agencies 
        and other appropriate organizations, including 
        nonprofit private organizations; and
          [(3) evaluate the effectiveness of programs under 
        this part in accordance with section 14701, both 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 January 1, 1998.
  [(c) Program Operations.--The Secretary shall ensure that the 
programs under this part 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 the programs authorized by this part;
          [(2) coordinate all programs for gifted and talented 
        students administered by the Department;
          [(3) 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; and
          [(4) assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying 
        research priorities which reflect the needs of gifted 
        and talented students.

[SEC. 10207. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated $10,000,000 for 
fiscal year 1995 and such sums as may be necessary for each of 
the four succeeding fiscal years to carry out the provisions of 
this part.

                    [PART C--PUBLIC CHARTER SCHOOLS

             [Subpart 1--Basic Charter School Grant Program

[SEC. 10301. FINDINGS AND PURPOSE.

  [(a) Findings.--The Congress finds that--
          [(1) enhancement of parent and student choices among 
        public schools can assist in promoting comprehensive 
        educational reform and give more students the 
        opportunity to learn to challenging State content 
        standards and challenging State student performance 
        standards, if sufficiently diverse and high-quality 
        choices, and genuine opportunities to take advantage of 
        such choices, are available to all students;
          [(2) useful examples of such choices can come from 
        States and communities that experiment with methods of 
        offering teachers and other educators, parents, and 
        other members of the public the opportunity to design 
        and implement new public schools and to transform 
        existing public schools;
          [(3) charter schools are a mechanism for testing a 
        variety of educational approaches and should, 
        therefore, be exempted from restrictive rules and 
        regulations if the leadership of such schools commits 
        to attaining specific and ambitious educational results 
        for educationally disadvantaged students consistent 
        with challenging State content standards and 
        challenging State student performance standards for all 
        students;
          [(4) charter schools, as such schools have been 
        implemented in a few States, can embody the necessary 
        mixture of enhanced choice, exemption from restrictive 
        regulations, and a focus on learning gains;
          [(5) charter schools, including charter schools that 
        are schools-within-schools, can help reduce school 
        size, which reduction can have a significant effect on 
        student achievement;
          [(6) the Federal Government should test, evaluate, 
        and disseminate information on a variety of charter 
        school models in order to help demonstrate the benefits 
        of this promising educational reform; and
          [(7) there is a strong documented need for cash-flow 
        assistance to charter schools that are starting up, 
        because State and local operating revenue streams are 
        not immediately available.
  [(b) 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 achievement, 
        staff, and parents; and
          [(3) expanding the number of high-quality charter 
        schools available to students across the Nation.

[SEC. 10302. PROGRAM AUTHORIZED.

  [(a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to 
section 10303 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 10303, the 
Secretary may award a grant to an eligible applicant that 
serves such State and has an application approved pursuant to 
section 10303(c).
  [(c) Program Periods.--
          [(1) Grants to states.--Grants awarded to State 
        educational agencies under this subpart shall be 
        awarded 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 awarded 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 
                10304(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.--
                  [(A) Fiscal years 1999, 2000, and 2001.--In 
                awarding grants under this subpart for any of 
                the fiscal years 1999, 2000, and 2001 from 
                funds appropriated under section 10311 that are 
                in excess of $51,000,000 for the fiscal year, 
                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).
                  [(B) Succeeding fiscal years.--In awarding 
                grants under this subpart for fiscal year 2002 
                or any succeeding fiscal year from any funds 
                appropriated under section 10311, 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) is 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 academic 
        performance 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.
                  [(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. 10303. 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 performance 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
                          [(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 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 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 10302(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) Contents of Eligible Applicant Application.--Each 
eligible applicant desiring a grant pursuant to section 
10302(b) shall submit an application to the State educational 
agency or Secretary, respectively, at such time, in such 
manner, and accompanied by such information as the State 
educational agency or Secretary, respectively, may reasonably 
require.
  [(d) Contents of Application.--Each application submitted 
pursuant to subsection (c) shall contain--
          [(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; and
          [(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 10304(e).

[SEC. 10304. 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 10303(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 to achieving State 
        content standards and State student performance 
        standards and, in general, a State's education 
        improvement plan;
          [(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 section 10302(c)(2)(C), the quality of 
        those activities and the likelihood that those 
        activities will improve student 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 10303(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;
          [(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 section 10302(c)(2)(C), 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 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 
10310(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
                  [(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.--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.
          [(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 amount 
        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 such recipient 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 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, 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 
                        performance 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. 10305. 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 the completion of the 4-year 
        national study (which began in 1995) of charter 
        schools.
          [(3) To provide for other evaluations or studies that 
        include the evaluation of the impact of charter schools 
        on student 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.
          [(4) 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 10303;
                  [(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.
          [(5) 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.
  [(b) Construction.--Nothing in this section shall be 
construed to require charter schools to collect any data 
described in subsection (a).

[SEC. 10306. 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 not later than 6 
months after the date of the enactment of the Charter School 
Expansion Act of 1998 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 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. 10307. 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 subpart A of title I, the Individuals 
with Disabilities Education Act (20 U.S.C. 1400 et seq.), or 
any other program administered by the Secretary that provides 
education funds to charter schools or regulates the activities 
of charter schools.

[SEC. 10308. 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 (20 U.S.C. 
1401(11)), 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. 10309. 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. 10310. DEFINITIONS.

  [As used in this subpart:
          [(1) 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 exempted 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;
                  [(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 subpart 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 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) 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) The term ``eligible applicant'' means an 
        authorized public chartering agency participating in a 
        partnership with a developer to establish a charter 
        school in accordance with this subpart.
          [(4) 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. 10311. AUTHORIZATION OF APPROPRIATIONS.

  [For the purpose of carrying out this subpart, there are 
authorized to be appropriated $100,000,000 for fiscal year 1999 
and such sums as may be necessary for each of the four 
succeeding fiscal years.

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

[SEC. 10321. PURPOSE.

  [The purpose of this subpart is to provide one-time grants to 
eligible entities to permit them to demonstrate innovative 
credit enhancement initiatives that assist charter schools to 
address the cost of acquiring, constructing, and renovating 
facilities.

[SEC. 10322. GRANTS TO ELIGIBLE ENTITIES.

  [(a) In General.--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 having 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.--The Secretary shall evaluate each 
application submitted, and shall make a determination of which 
are sufficient to merit approval and which are not. The 
Secretary shall award at least one grant to an eligible entity 
described in section 10330(2)(A), at least one grant to an 
eligible entity described in section 10330(2)(B), and at least 
one grant to an eligible entity described in section 
10330(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 available 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 
the second sentence of subsection (b) shall not apply, and the 
Secretary may determine the appropriate number of grants to be 
awarded in accordance with subsection (c).

[SEC. 10323. 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 under subsection (a) shall 
contain--
          [(1) a statement identifying the activities proposed 
        to be undertaken with funds received under this 
        subpart, including how the applicant will determine 
        which charter schools 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 applicant'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 applicant 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 
        they need to have adequate facilities; and
          [(7) such other information as the Secretary may 
        reasonably require.

[SEC. 10324. CHARTER SCHOOL OBJECTIVES.

  [An eligible entity receiving a grant under this subpart 
shall use the funds deposited in the reserve account 
established under section 10325(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. 10325. RESERVE ACCOUNT.

  [(a) Use of Funds.--To assist charter schools to accomplish 
the objectives described in section 10324, 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 10326) in a reserve account established 
and maintained by the entity for this purpose. Amounts 
deposited in such account shall be used by the 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 10324.
          [(2) Guaranteeing and insuring leases of personal and 
        real property for an objective described in section 
        10324.
          [(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.
          [(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 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. 10326. 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. 10327. 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 such annual report 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 10324; 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.

[SEC. 10328. 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. 10329. 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 
        10325(a) if the Secretary determines, not earlier than 
        2 years after the date on which the entity first 
        received funds under this subpart, that the entity has 
        failed to make substantial progress in carrying out the 
        purposes described in section 10325(a); or
          [(2) all or a portion of the funds in a reserve 
        account established by an eligible entity under section 
        10325(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 10325(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 
10325(a).
  [(c) Procedures.--The provisions of sections 451, 452, and 
458 of the General Education Provisions Act (20 U.S.C. 1234 et 
seq.) 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 (20 
U.S.C. 1234 et seq.).

[SEC. 10330. DEFINITIONS.

  [In this subpart:
          [(1) The term ``charter school'' has the meaning 
        given such term in section 10310.
          [(2) 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. 10331. AUTHORIZATION OF APPROPRIATIONS.

  [For the purpose of carrying out this subpart, there are 
authorized to be appropriated $100,000,000 for fiscal year 
2001.

                       [PART D--ARTS IN EDUCATION

                       [Subpart 1--Arts Education

[SEC. 10401. SUPPORT FOR ARTS EDUCATION.

  [(a) Findings.--The Congress finds that--
          [(1) the arts are forms of understanding and ways of 
        knowing that are fundamentally important to education;
          [(2) the arts are important to excellent education 
        and to effective school reform;
          [(3) the most significant contribution of the arts to 
        education reform is the transformation of teaching and 
        learning;
          [(4) such transformation is best realized in the 
        context of comprehensive, systemic education reform;
          [(5) demonstrated competency in the arts for American 
        students is among the National Education Goals;
          [(6) participation in performing arts activities has 
        proven to be an effective strategy for promoting the 
        inclusion of persons with disabilities in mainstream 
        settings;
          [(7) opportunities in the arts have enabled persons 
        of all ages with disabilities to participate more fully 
        in school and community activities;
          [(8) the arts can motivate at-risk students to stay 
        in school and become active participants in the 
        educational process; and
          [(9) arts education should be an integral part of the 
        elementary and secondary school curriculum.
  [(b) Purposes.--The purposes of this subpart are to--
          [(1) support systemic education reform by 
        strengthening arts education as an integral part of the 
        elementary and secondary school curriculum;
          [(2) help ensure that all students have the 
        opportunity to learn to challenging State content 
        standards and challenging State student performance 
        standards in the arts; and
          [(3) support the national effort to enable all 
        students to demonstrate competence in the arts in 
        accordance with the National Education Goals.
  [(c) Eligible Recipients.--In order to carry out the purposes 
of this subpart, the Secretary is authorized to award grants 
to, or enter into contracts or cooperative agreements with--
          [(1) State educational agencies;
          [(2) local educational agencies;
          [(3) institutions of higher education;
          [(4) museums and other cultural institutions; and
          [(5) other public and private agencies, institutions, 
        and organizations.
  [(d) Authorized Activities.--Funds under this subpart may be 
used for--
          [(1) research on arts education;
          [(2) the development of, and dissemination of 
        information about, model arts education programs;
          [(3) the development of model arts education 
        assessments based on high standards;
          [(4) the development and implementation of curriculum 
        frameworks for arts education;
          [(5) the development of model preservice and 
        inservice professional development programs for arts 
        educators and other instructional staff;
          [(6) supporting collaborative activities with other 
        Federal agencies or institutions involved in arts 
        education, such as the National Endowment for the Arts, 
        the Institute of Museum and Library Services, the John 
        F. Kennedy Center for the Performing Arts, Very Special 
        Arts, and the National Gallery of Art;
          [(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 
        and secondary school curriculum; and
          [(10) other activities that further the purposes of 
        this subpart.
  [(e) Coordination.--
          [(1) In general.--A recipient of funds under this 
        subpart shall, to the extent possible, coordinate 
        projects assisted under this subpart with appropriate 
        activities of public and private cultural agencies, 
        institutions, and organizations, including museums, 
        arts education associations, libraries, and theaters.
          [(2) Special rule.--In carrying out this subpart, the 
        Secretary shall coordinate with the National Endowment 
        for the Arts, the Institute of Museum and Library 
        Services, the John F. Kennedy Center for the Performing 
        Arts, Very Special Arts, and the National Gallery of 
        Art.
  [(f) Authorization.--
          [(1) In general.--For the purpose of carrying out 
        this subpart, there are authorized to be appropriated 
        $11,000,000 for fiscal year 1995 and such sums as may 
        be necessary for each of the four succeeding fiscal 
        years.
          [(2) Special rule.--If the amount appropriated under 
        paragraph (1) for any fiscal year is $9,000,000 or 
        less, then such amount shall only be available to carry 
        out the activities described in paragraphs (7) and (8) 
        of subsection (d).

    [Subpart 2--Cultural Partnerships for At-Risk Children and Youth

[SEC. 10411. FINDINGS AND PURPOSE.

  [(a) Findings.--The Congress finds:
          [(1) With local school budget cuts there are 
        inadequate arts and cultural programs available for 
        children and youth in schools, especially at the 
        elementary school level.
          [(2) The arts promote progress in academic subjects 
        as shown by research conducted by the National 
        Endowment for the Arts.
          [(3) Children and youth who receive instruction in 
        the arts and humanities, or who are involved in 
        cultural activities, remain in school longer and are 
        more successful than children who do not receive such 
        instruction.
          [(4) Learning in the arts and humanities promotes 
        progress in other academic subjects, and generates 
        positive self-esteem and a greater sense of 
        accomplishment in young people.
          [(5) School-university and school-cultural 
        institution partnerships that upgrade teacher training 
        in the arts and humanities have significantly 
        contributed to improved instruction and achievement 
        levels of school-aged children.
          [(6) Museum outreach, cultural activities and 
        informal education for at-risk children and youth have 
        contributed significantly to the educational 
        achievement and enhanced interest in learning of at-
        risk children and youth.
          [(7) The Goals 2000: Educate America Act, other 
        legislation and local, State and national resources 
        support the integration of the arts and humanities into 
        the regular curriculum and school day for all children.
          [(8) While all children benefit from instruction in 
        the arts and the humanities, at-risk children and youth 
        have a special, additional need for arts and cultural 
        programs both in school and after school.
  [(b) Purpose.--The purpose of this subpart is to make 
demonstration grants to eligible entities to improve the 
educational performance and future potential of at-risk 
children and youth by providing comprehensive and coordinated 
educational and cultural services.

[SEC. 10412. PROGRAM AUTHORIZED.

  [(a) In General.--The Secretary is authorized to award grants 
to eligible entities to pay the Federal share of the costs of 
the activities described in section 10413.
  [(b) Special Requirements.--
          [(1) In general.--The Secretary shall award grants 
        under this subpart only to programs designed to--
                  [(A) promote and enhance educational and 
                cultural activities;
                  [(B) provide multi-year services to at-risk 
                children and youth and to integrate community 
                cultural resources into in-school and after-
                school educational programs;
                  [(C) provide integration of community 
                cultural resources into the regular curriculum 
                and school day;
                  [(D) focus school and cultural resources in 
                the community on coordinated cultural services 
                to address the needs of at-risk children and 
                youth;
                  [(E) provide effective cultural programs to 
                facilitate the transition from preschool 
                programs to elementary school programs, 
                including programs under the Head Start Act and 
                part H of the Individuals with Disabilities 
                Education Act;
                  [(F) facilitate school-to-work transition 
                from secondary schools and alternative schools 
                to job training, higher education and 
                employment through educational programs and 
                activities that utilize school resources;
                  [(G) increase parental and community 
                involvement in the educational, social, and 
                cultural development of at-risk children and 
                youth; or
                  [(H)(i) develop programs and strategies that 
                provide high-quality coordinated educational 
                and cultural services; and
                  [(ii) provide a model to replicate such 
                services in other schools and communities.
          [(2) Partnership.--An interagency partnership 
        comprised of the Secretary of Education, the Chairman 
        of the National Endowment for the Humanities, the 
        Chairman of the National Endowment for the Arts, and 
        the Director of the Institute of Museum and Library 
        Services, or their designees, shall establish criteria 
        and procedures for awarding grants, including the 
        establishment of panels to review the applications, and 
        shall administer the grants program authorized by this 
        section. The Secretary shall publish such criteria and 
        procedures in the Federal Register.
          [(3) Coordination.--Grants may only be awarded under 
        this subpart to eligible entities that agree to 
        coordinate activities carried out under other Federal, 
        State, and local grants, received by the members of the 
        partnership for purposes and target populations 
        described in this subpart, into an integrated service 
        delivery system located at a school, cultural, or other 
        community-based site accessible to and utilized by at-
        risk youth.
          [(4) Eligible entities.--For purposes of this 
        subpart, the term ``eligible entity'' means a 
        partnership between--
                  [(A) a local educational agency or an 
                individual school that is eligible to 
                participate in a schoolwide program under 
                section 1114; and
                  [(B) at least one institution of higher 
                education, museum, local arts agency, or 
                cultural entity that is accessible to 
                individuals within the school district of such 
                local educational agency or school, and that 
                has a history of providing quality services to 
                the community, which may include--
                          [(i) nonprofit institutions of higher 
                        education, museums, libraries, 
                        performing, presenting and exhibiting 
                        arts organizations, literary arts 
                        organizations, State and local arts 
                        organizations, cultural institutions, 
                        and zoological and botanical 
                        organizations; or
                          [(ii) private for-profit entities 
                        with a history of training children and 
                        youth in the arts.
          [(5) Geographic distribution.--In awarding grants 
        under this subpart the Secretary, to the extent 
        feasible, shall ensure an equitable geographic 
        distribution of such grants.
          [(6) Duration.--Grants made under this subpart may be 
        renewable for a maximum of five years if the Secretary 
        determines that the eligible recipient has made 
        satisfactory progress toward the achievement of the 
        program objectives described in the application.
          [(7) Models.--The Secretary, in consultation with the 
        Chairman of the National Endowment for the Humanities, 
        the Chairman of the National Endowment for the Arts and 
        the director of the Institute of Museum and Library 
        Services, or their designees, shall submit successful 
        models under this title to the National Diffusion 
        Network for review.
  [(c) Target Population.--To be eligible for a grant under 
this subpart, an eligible entity shall serve--
          [(1) students enrolled in schools participating in a 
        schoolwide program under section 1114 and the families 
        of such students to the extent practicable;
          [(2) out-of-school children and youth at risk of 
        disadvantages resulting from teenage parenting, 
        substance abuse, recent migration, disability, limited-
        English proficiency, illiteracy, being the child of a 
        teenage parent, living in a single parent household, or 
        dropping out of school; or
          [(3) any combination of in-school and out-of-school 
        at-risk children and youth.

[SEC. 10413. AUTHORIZED ACTIVITIES.

  [(a) In General.--Grants awarded under this subpart may be 
used--
          [(1) to plan, develop, acquire, expand, and improve 
        school-based or community-based coordinated educational 
        and cultural programs to strengthen the educational 
        performance and future potential of in-school or out-
        of-school at-risk children and youth through grants, 
        cooperative agreements, contracts for services, or 
        administrative coordination;
          [(2) to provide at-risk students with integrated 
        cultural activities designed to develop a love of 
        learning that fosters the smooth transition of 
        preschool children to elementary school;
          [(3) to design collaborative cultural activities for 
        students in secondary or alternative schools that 
        ensure the smooth transition to job training, higher 
        education, or full employment;
          [(4) to provide child care for children of at-risk 
        students who would not otherwise be able to participate 
        in the program;
          [(5) to provide transportation necessary for 
        participation in the program;
          [(6) to work with existing school personnel to 
        develop curriculum materials and programs in the arts;
          [(7) to work with existing school personnel on staff 
        development activities that encourage the integration 
        of the arts into the curriculum;
          [(8) for stipends that allow local artists to work 
        with at-risk children and youth in schools;
          [(9) for training individuals who are not trained to 
        work with children and youth;
          [(10) for cultural programs that encourage the active 
        participation of parents in the education of their 
        children;
          [(11) for programs that use the arts and culture to 
        reform current school practices, including lengthening 
        the school day or academic year;
          [(12) for equipment or supplies that the Secretary 
        determines appropriate; and
          [(13) for evaluation, administration, and 
        supervision.
  [(b) Planning Grants.--
          [(1) Application.--An eligible entity may submit an 
        application to the Secretary for a planning grant for 
        an amount not to exceed $50,000. Such grants shall be 
        for periods of not more than one year.
          [(2) Limit on planning grants.--Not more than 10 
        percent of the amounts appropriated in each fiscal year 
        under this subpart shall be used for grants under this 
        subsection, and an eligible entity may receive not more 
        than one such planning grant.
  [(c) General Provisions.--
          [(1) In general.--Each eligible entity 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 
        reasonably require.
          [(2) Contents.--Each application submitted pursuant 
        to paragraph (1) shall--
                  [(A) describe the cultural entity or entities 
                that will participate in the partnership;
                  [(B) describe the target population to be 
                served;
                  [(C) describe the services to be provided;
                  [(D) describe a plan for evaluating the 
                success of the program;
                  [(E) in the case of each local educational 
                agency or school participating in the eligible 
                recipient partnership, describe how the 
                activities assisted under this subpart will be 
                perpetuated beyond the duration of the grant;
                  [(F) describe the manner in which the 
                eligible entity will improve the educational 
                achievement or future potential of at-risk 
                youth through more effective coordination of 
                cultural services in the community;
                  [(G) describe the overall and operational 
                goals of the program;
                  [(H) describe the nature and location of all 
                planned sites where services will be delivered 
                and a description of services which will be 
                provided at each site; and
                  [(I) describe training that will be provided 
                to individuals who are not trained to work with 
                children and youth, and how teachers will be 
                involved.

[SEC. 10414. PAYMENTS; AMOUNTS OF AWARD; COST SHARE; LIMITATIONS.

  [(a) Payments.--
          [(1) In general.--The Secretary shall pay to each 
        eligible recipient having an application approved under 
        section 10413(c) the Federal share of the cost of the 
        activities described in the application.
          [(2) Special rule.--(A) Grants awarded under this 
        subpart shall be of sufficient size, scope, and quality 
        to be effective.
          [(B) The Secretary shall award grants under this 
        subpart so as to ensure nonduplication of services 
        provided by grant recipients and services provided by--
                  [(i) the National Endowment for the 
                Humanities;
                  [(ii) the National Endowment for the Arts; 
                and
                          [(iii) the Institute of Museum and 
                        Library Services.
  [(b) Cost Share.--
          [(1) Federal share.--The Federal share of a grant 
        under this subpart shall be 80 percent of the cost of 
        carrying out the activities described in the 
        application.
          [(2) Non-federal share.--The non-Federal share of a 
        grant under this subpart shall be 20 percent of the 
        cost of carrying out the activities described in the 
        application and may be in cash or in kind, fairly 
        evaluated, including the provision of equipment, 
        services, or facilities.
  [(c) Limitations.--
          [(1) Noninstructional services.--Not more than 25 
        percent of the grant funds provided in any fiscal year 
        under this subpart may be used for noninstructional 
        activities such as the activities described in 
        paragraphs (4), (5), and (12) of section 10413(a).
          [(2) Supplement and not supplant.--Grant funds 
        awarded under this part shall be used to supplement not 
        supplant the amount of funds made available from non-
        Federal sources, for the activities assisted under this 
        subpart, in amounts that exceed the amounts expended 
        for such activities in the year preceding the year for 
        which the grant is awarded.
          [(3) Administrative costs.--(A) The Secretary may 
        reserve not more than five percent of the grant funds 
        received under this subpart in each fiscal year for the 
        costs of administration.
          [(B) Each eligible recipient may reserve not more 
        than 5 percent of any grant funds received under this 
        subpart in each fiscal year for the costs of 
        administration.

[SEC. 10415. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
subpart, $45,000,000 for fiscal year 1995, and such sums as may 
be necessary for each of the four succeeding fiscal years.]

           *       *       *       *       *       *       *

                        [PART F--CIVIC EDUCATION

[SEC. 10601. INSTRUCTION ON THE HISTORY AND PRINCIPLES OF DEMOCRACY IN 
                    THE UNITED STATES.

  [(a) General Authority.--
          [(1) Program established.--(A) The Secretary is 
        authorized to carry out a program to enhance the 
        attainment of the third and sixth National Education 
        Goals by educating students about the history and 
        principles of the Constitution of the United States, 
        including the Bill of Rights, and to foster civic 
        competence and responsibility.
          [(B) Such program shall be known as ``We the People . 
        . . The Citizen and the Constitution''.
          [(2) Educational activities.--The program required by 
        paragraph (1) shall--
                  [(A) continue and expand the educational 
                activities of the ``We the People . . . The 
                Citizen and the Constitution'' program 
                administered by the Center for Civic Education; 
                and
                  [(B) enhance student attainment of 
                challenging content standards in civics and 
                government.
          [(3) Contract or grant authorized.--The Secretary is 
        authorized to award a grant or enter into a contract 
        with the Center for Civic Education to carry out the 
        program described in paragraph (1).
  [(b) Program Content.--The education program authorized by 
this section shall provide--
          [(1) a course of instruction on the basic principles 
        of our Nation's constitutional democracy and the 
        history of the Constitution and the Bill of Rights;
          [(2) at the request of a participating school, school 
        and community simulated congressional hearings 
        following the course of study; and
          [(3) an annual national competition of simulated 
        congressional hearings for secondary students who wish 
        to participate in such program.
  [(c) Availability of Program.--The education program 
authorized by this section shall be made available to public 
and private elementary and secondary schools in the 435 
congressional districts, the Commonwealth of Puerto Rico, the 
Virgin Islands, Guam, American Samoa, and the District of 
Columbia.
  [(d) Special Rule.--After the provisions of subsection (b) 
have been implemented, funds provided under this section may be 
used for--
          [(1) advanced training of teachers about the United 
        States Constitution and the political system the United 
        States created; or
          [(2) 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, 
        which course shall provide for--
                  [(A) optional school and community simulated 
                State legislative hearings;
                  [(B) an annual competition of simulated 
                legislative hearings at the State legislative 
                district, State, and national levels for middle 
                school students who wish to participate in the 
                program; and
                  [(C) participation by public and private 
                middle schools in the 50 States, the District 
                of Columbia, the Commonwealth of Puerto Rico, 
                Guam, American Samoa, the Virgin Islands, and 
                the Commonwealth of the Northern Mariana 
                Islands.

[SEC. 10602. INSTRUCTION IN CIVICS, GOVERNMENT, AND THE LAW.

  [(a) Program Established.--The Secretary is authorized to 
carry out a program of awarding grants and contracts to assist 
State and local educational agencies and other public and 
private nonprofit agencies, organizations, and institutions to 
enhance--
          [(1) attainment by students of challenging State 
        content standards and challenging State student 
        performance standards in civics, government, and the 
        law; and
          [(2) attainment by the Nation of the third and the 
        sixth National Education Goals.
  [(b) Authorized Activities.--Assistance under this section 
may support new and ongoing programs in elementary and 
secondary schools that provide for--
          [(1) the development and implementation of curricular 
        programs that enhance student understanding of--
                  [(A) the values and principles which 
                underlie, and the institutions and processes 
                which comprise, our Nation's system of 
                government;
                  [(B) the role of law in our constitutional 
                democracy, including activities to promote--
                          [(i) legal literacy;
                          [(ii) a dedication by students to the 
                        use of nonviolent means of conflict 
                        resolution such as arbitration, 
                        mediation, negotiation, trials, and 
                        appellate hearings; and
                          [(iii) respect for cultural diversity 
                        and acceptance of cultural differences; 
                        and
                  [(C) the rights and responsibilities of 
                citizenship;
          [(2) professional development for teachers, including 
        preservice and inservice training;
          [(3) outside-the-classroom learning experiences for 
        students, including community service activities;
          [(4) the active participation of community leaders, 
        from the public and private sectors, in the schools; 
        and
          [(5) the provision of technical assistance to State 
        and local educational agencies and other institutions 
        and organizations working to further the progress of 
        the Nation in attaining the third and sixth National 
        Education Goals regarding civics and government.
  [(c) Applications, Peer Review and Priority.--
          [(1) Submission of applications.--A State or local 
        educational agency, other public or private nonprofit 
        agency, organization, or institution that desires to 
        receive a grant or enter into a contract under this 
        section 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.
          [(2) Peer review.--(A) The Secretary shall convene a 
        panel of individuals for purpose of reviewing and 
        rating applications submitted under paragraph (1).
          [(B) Such individuals shall have experience with 
        education programs in civics, government, and the law.
          [(3) Priority.--In awarding grants or awarding 
        contracts under this section, the Secretary shall give 
        priority consideration to applications which propose 
        the operation of statewide programs.
  [(d) Duration of Grants and Exception.--
          [(1) Duration.--Except as provided in paragraph (2), 
        the Secretary shall award grants and contracts under 
        this section for periods of two or three years.
          [(2) Exception.--The Secretary may award a grant or a 
        contract under this section for a period of less than 2 
        years if the Secretary determines that special 
        circumstances exist which warrant a 1-year grant or 
        contract award.

[SEC. 10603. REPORT; AUTHORIZATION OF APPROPRIATIONS.

  [(a) Report.--The Secretary shall report, on a biennial basis 
to the Committee on Education and Labor of the House of 
Representatives and to the Committee on Labor and Human 
Resources of the Senate regarding the distribution and use of 
funds authorized under this part.
  [(b) Authorization of Appropriations.--
          [(1) General.--There are authorized to be 
        appropriated to carry out this part $15,000,000 for 
        fiscal year 1995 and such sums as may be necessary for 
        each of the four succeeding fiscal years.
          [(2) Allocation.--Except as provided in paragraph 
        (3), from the amount appropriated under subsection (a), 
        the Secretary shall allocate--
                  [(A) 40 percent of such amount to carry out 
                section 10601; and
                  [(B) 60 percent of such amount to carry out 
                section 10602.
          [(3) Special rule.--From funds appropriated under 
        paragraph (1), the Secretary shall make available for 
        fiscal year 1995 and each succeeding fiscal year 
        thereafter for the programs under sections 16101 and 
        16102 not less than the amount made available for 
        fiscal year 1994 to carry out such programs under 
        sections 4609 and 1562, respectively, of this Act (as 
        such sections were in effect on the day preceding the 
        date of enactment of the Improving America's Schools 
        Act of 1994).

             [PART G--ALLEN J. ELLENDER FELLOWSHIP PROGRAM

[SEC. 10701. FINDINGS.

  [The Congress finds as follows:
          [(1) It is a worthwhile goal to ensure that all 
        students in America are prepared for responsible 
        citizenship and that all students should have the 
        opportunity to be involved in activities that promote 
        and demonstrate good citizenship.
          [(2) It is a worthwhile goal to ensure that America's 
        educators have access to programs for the continued 
        improvement of their professional skills.
          [(3) Allen J. Ellender, a Senator from Louisiana and 
        President pro tempore of the United States Senate, had 
        a distinguished career in public service characterized 
        by extraordinary energy and real concern for young 
        people. Senator Ellender provided valuable support and 
        encouragement to the Close Up Foundation, a 
        nonpartisan, nonprofit foundation promoting knowledge 
        and understanding of the Federal Government among young 
        people and educators. Therefore, it is a fitting and 
        appropriate tribute to Senator Ellender to provide 
        fellowships in his name to students of limited economic 
        means, the teachers who work with such students, and 
        older Americans, so that such students, teachers, and 
        older Americans may participate in the programs 
        supported by the Close Up Foundation.

      [Subpart 1--Program for Middle and Secondary School Students

[SEC. 10711. ESTABLISHMENT.

  [(a) General Authority.--The Secretary is authorized to make 
grants in accordance with the provisions of this subpart 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 understanding of the Federal Government among middle 
and secondary school students.
  [(b) Use of Funds.--Grants under this subpart shall be used 
only to provide financial assistance to economically 
disadvantaged students who participate in the program described 
in subsection (a). Financial assistance received pursuant to 
this subpart by such students shall be known as Allen J. 
Ellender fellowships.

[SEC. 10712. APPLICATIONS.

  [(a) Application Required.--No grant under this subpart 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 such application shall 
contain provisions to assure--
          [(1) that fellowship grants are made to economically 
        disadvantaged middle and secondary school students;
          [(2) that every effort will be made to ensure the 
        participation of students from rural and small town 
        areas, as well as from urban areas, and that in 
        awarding fellowships to economically disadvantaged 
        students, special consideration will be given to the 
        participation of students with special educational 
        needs, including student with disabilities, ethnic 
        minority students, and gifted and talented students; 
        and
          [(3) the proper disbursement of the funds received 
        under this subpart.

      [Subpart 2--Program for Middle and Secondary School Teachers

[SEC. 10721. ESTABLISHMENT.

  [(a) General Authority.--The Secretary is authorized to make 
grants in accordance with the provisions of this subpart 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 
teaching skills enhancement for middle and secondary school 
teachers.
  [(b) Use of Funds.--Grants under this subpart shall be used 
only for financial assistance to teachers who participate in 
the program described in subsection (a). Financial assistance 
received pursuant to this subpart by such individuals shall be 
known as Allen J. Ellender fellowships.

[SEC. 10722. APPLICATIONS.

  [(a) Application Required.--No grant under this subpart 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 such application shall 
contain provisions to assure--
          [(1) that fellowship grants are made only to teachers 
        who have worked with at least one student from such 
        teacher's school who participates in the programs 
        described in section 10711(a);
          [(2) that not more than one teacher in each school 
        participating in the programs provided for in section 
        10711(a) may receive a fellowship in any fiscal year; 
        and
          [(3) the proper disbursement of the funds received 
        under this subpart.

[Subpart 3--Programs for Recent Immigrants, Students of Migrant Parents 
                          and Older Americans

[SEC. 10731. ESTABLISHMENT.

  [(a) General Authority.--
          [(1) In general.--The Secretary is authorized to make 
        grants in accordance with the provisions of this 
        subpart 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 
        understanding of the Federal Government among 
        economically disadvantaged older Americans, recent 
        immigrants and students of migrant parents.
          [(2) Definition.--For the purpose of this subpart, 
        the term ``older American'' means an individual who has 
        attained 55 years of age.
  [(b) Use of Funds.--Grants under this subpart shall be used 
for financial assistance to economically disadvantaged older 
Americans, recent immigrants and students of migrant parents 
who participate in the program described in subsection (a). 
Financial assistance received pursuant to this subpart by such 
individuals shall be known as Allen J. Ellender fellowships.

[SEC. 10732. APPLICATIONS.

  [(a) Application Required.--No grant under this subpart may 
be made except upon application at such time, in such manner, 
and accompanied by such information as the Secretary may 
reasonably require.
  [(b) Contents of Application.--Except such application shall 
contain provisions to assure--
          [(1) that fellowship grants are made to economically 
        disadvantaged older Americans, recent immigrants and 
        students of migrant parents;
          [(2) that every effort will be made to ensure the 
        participation of older Americans, recent immigrants and 
        students of migrant parents from rural and small town 
        areas, as well as from urban areas, and that in 
        awarding fellowships, special consideration will be 
        given to the participation of older Americans, recent 
        immigrants and students of migrant parents with special 
        needs, including individuals with disabilities, ethnic 
        minorities, and gifted and talented students;
          [(3) that activities permitted by subsection (a) are 
        fully described; and
          [(4) the proper disbursement of the funds received 
        under this subpart.

                     [Subpart 4--General Provisions

[SEC. 10741. ADMINISTRATIVE PROVISIONS.

  [(a) General Rule.--Payments under this part may be made in 
installments, in advance, or by way of reimbursement, with 
necessary adjustments on account of underpayment or 
overpayment.
  [(b) 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 part.

[SEC. 10742. AUTHORIZATION OF APPROPRIATIONS.

  [(a) In General.--There are authorized to be appropriated to 
carry out the provisions of subparts 1, 2, and 3 of this part 
$4,400,000 for fiscal year 1995 and such sums as may be 
necessary of each of the four succeeding fiscal years.
  [(b) Special Rule.--Of the funds appropriated pursuant to 
subsection (a), not more than 30 percent may be used for 
teachers associated with students participating in the programs 
described in section 10711(a).

            [PART I--21ST CENTURY COMMUNITY LEARNING CENTERS

[SEC. 10901. SHORT TITLE.

  [This part may be cited as the ``21st Century Community 
Learning Centers Act''.

[SEC. 10902. FINDINGS.

  [The Congress finds that--
          [(1) a local public school often serves as a center 
        for the delivery of education and human resources for 
        all members of a community;
          [(2) public schools, primarily in rural and inner 
        city communities, should collaborate with other public 
        and nonprofit agencies and organizations, local 
        businesses, educational entities (such as vocational 
        and adult education programs, school-to-work programs, 
        community colleges, and universities), recreational, 
        cultural, and other community and human service 
        entities, for the purpose of meeting the needs of, and 
        expanding the opportunities available to, the residents 
        of the communities served by such schools;
          [(3) by using school facilities, equipment, and 
        resources, communities can promote a more efficient use 
        of public education facilities, especially in rural and 
        inner city areas where limited financial resources have 
        enhanced the necessity for local public schools to 
        become social service centers;
          [(4) the high technology, global economy of the 21st 
        century will require lifelong learning to keep 
        America's workforce competitive and successful, and 
        local public schools should provide centers for 
        lifelong learning and educational opportunities for 
        individuals of all ages; and
          [(5) 21st Century Community Learning Centers enable 
        the entire community to develop an education strategy 
        that addresses the educational needs of all members of 
        local communities.

[SEC. 10903. PROGRAM AUTHORIZATION.

  [(a) Grants by the Secretary.--The Secretary is authorized, 
in accordance with the provisions of this part, to award grants 
to rural and inner-city public elementary or secondary schools, 
or consortia of such schools, to enable such schools or 
consortia to plan, implement, or to expand projects that 
benefit the educational, health, social service, cultural, and 
recreational needs of a rural or inner-city community.
  [(b) Equitable Distribution.--In awarding grants under this 
part, the Secretary shall assure an equitable distribution of 
assistance among the States, among urban and rural areas of the 
United States, and among urban and rural areas of a State.
  [(c) Grant Period.--The Secretary shall award grants under 
this part for a period not to exceed 3 years.
  [(d) Amount.--The Secretary shall not award a grant under 
this part in any fiscal year in an amount less than $35,000.

[SEC. 10904. APPLICATION REQUIRED.

  [(a) Application.--To be eligible to receive a grant under 
this part, an elementary or secondary school or consortium 
shall submit an application to the Secretary at such time, in 
such manner, and accompanied by such information as the 
Secretary may reasonably prescribe. Each such application shall 
include--
          [(1) a comprehensive local plan that enables the 
        school or consortium to serve as a center for the 
        delivery of education and human resources for members 
        of a community;
          [(2) an evaluation of the needs, available resources, 
        and goals and objectives for the proposed project in 
        order to determine which activities will be undertaken 
        to address such needs; and
          [(3) a description of the proposed project, 
        including--
                  [(A) a description of the mechanism that will 
                be used to disseminate information in a manner 
                that is understandable and accessible to the 
                community;
                  [(B) identification of Federal, State, and 
                local programs to be merged or coordinated so 
                that public resources may be maximized;
                  [(C) a description of the collaborative 
                efforts to be undertaken by community-based 
                organizations, related public agencies, 
                businesses, or other appropriate organizations;
                  [(D) a description of how the school or 
                consortium will serve as a delivery center for 
                existing and new services, especially for 
                interactive telecommunication used for 
                education and professional training; and
                  [(E) an assurance that the school or 
                consortium will establish a facility 
                utilization policy that specifically states--
                          [(i) the rules and regulations 
                        applicable to building and equipment 
                        use; and
                          [(ii) supervision guidelines.
  [(b) Priority.--The Secretary shall give priority to 
applications describing projects that offer a broad selection 
of services which address the needs of the community.

[SEC. 10905. USES OF FUNDS.

  [Grants awarded under this part may be used to plan, 
implement, or expand community learning centers which include 
not less than four of the following activities:
          [(1) Literacy education programs.
          [(2) Senior citizen programs.
          [(3) Children's day care services.
          [(4) Integrated education, health, social service, 
        recreational, or cultural programs.
          [(5) Summer and weekend school programs in 
        conjunction with recreation programs.
          [(6) Nutrition and health programs.
          [(7) Expanded library service hours to serve 
        community needs.
          [(8) Telecommunications and technology education 
        programs for individuals of all ages.
          [(9) Parenting skills education programs.
          [(10) Support and training for child day care 
        providers.
          [(11) Employment counseling, training, and placement.
          [(12) Services for individuals who leave school 
        before graduating from secondary school, regardless of 
        the age of such individual.
          [(13) Services for individuals with disabilities.

[SEC. 10906. DEFINITION.

  [For the purpose of this part, the term ``community learning 
center'' means an entity within a public elementary or 
secondary school building that--
          [(1) provides educational, recreational, health, and 
        social service programs for residents of all ages 
        within a local community; and
          [(2) is operated by a local educational agency in 
        conjunction with local governmental agencies, 
        businesses, vocational education programs, institutions 
        of higher education, community colleges, and cultural, 
        recreational, and other community and human service 
        entities.

[SEC. 10907. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated $20,000,000 for 
fiscal year 1995, and such sums as may be necessary for each of 
the four succeeding fiscal years, to carry out this part.

             [PART J--URBAN AND RURAL EDUCATION ASSISTANCE

[SEC. 10951. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Demonstration Grants.--
          [(1) In general.--There are authorized to be 
        appropriated $125,000,000 for fiscal year 1995, and 
        such sums as may be necessary for each of the four 
        succeeding fiscal years, to carry out subparts 1 and 2 
        (other than section 10975).
          [(2) Reservation for subpart 1.--The Secretary shall 
        reserve 50 percent of the amount appropriated under 
        paragraph (1) to carry out subpart 1.
          [(3) Reservation for subpart 2.--The Secretary shall 
        reserve 50 percent of the amount appropriated under 
        paragraph (1) to carry out subpart 2 (other than 
        section 10975).
  [(b) Higher Education Grants.--There are authorized to be 
appropriated $25,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years 
to carry out section 10975.
  [(c) Federal Funds To Supplement Not Supplant Non-Federal 
Funds.--An eligible local educational agency may use funds 
received under this part only to supplement and, to the extent 
practicable, increase the level of funds that would, in the 
absence of such Federal funds, be made available from non-
Federal sources for the education of students participating in 
activities assisted under this part, and in no such case may 
such funds be used to supplant funds from non-Federal sources.

[SEC. 10952. DEFINITIONS.

  [Except as otherwise provided, for the purposes of this part:
          [(1) Central city.--The term ``central city'' has the 
        same meaning used by the Bureau of the Census.
          [(2) Metropolitan statistical area.--The term 
        ``metropolitan statistical area'' has the same meaning 
        used by the Bureau of the Census.
          [(3) Poverty level.--The term ``poverty level'' means 
        the criteria of poverty used by the Bureau of the 
        Census in compiling the most recent decennial census.
          [(4) Rural eligible local educational agency.--The 
        term ``rural eligible local educational agency'' means 
        a local educational agency--
                  [(A)(i) in which at least 15 percent of the 
                children enrolled in the schools served by such 
                agency are eligible to be counted under part A 
                of title I; and
                  [(ii) which is not in a metropolitan 
                statistical area; or
                  [(B) in which the total enrollment in the 
                schools served by such agency is less than 
                2,500 students and that does not serve schools 
                located in a metropolitan statistical area.
          [(5) Urban eligible local educational agency.--The 
        term ``urban eligible local educational agency'' means 
        a local educational agency that--
                  [(A) serves the largest central city in a 
                State;
                  [(B) enrolls more than 30,000 students and 
                serves a central city with a population of at 
                least 200,000 in a metropolitan statistical 
                area; or
                  [(C) enrolls between 25,000 and 30,000 
                students and serves a central city with a 
                population of at least 140,000 in a 
                metropolitan statistical area.

            [Subpart 1--Urban Education Demonstration Grants

[SEC. 10961. FINDINGS.

  [The Congress finds that--
          [(1) the ability of the Nation's major urban public 
        school systems to meet the Nation's educational goals 
        will determine the country's economic competitiveness 
        and academic standing in the world community;
          [(2) the quality of public education in the Nation's 
        major urban areas has a direct effect on the economic 
        development of the Nation's inner-cities;
          [(3) the success of urban public schools in boosting 
        the achievement of its minority youth attending such 
        schools will determine the ability of the Nation to 
        close the gap between the ``haves and the have-nots'' 
        in society;
          [(4) the cost to America's businesses to provide 
        remedial education to high school graduates is 
        approximately $21,000,000,000 per year;
          [(5) approximately one-third of the Nation's 
        workforce will be members of minority groups by the 
        year 2000;
          [(6) urban schools enroll a disproportionately large 
        share of the Nation's poor and ``at-risk'' youth;
          [(7) urban schools enroll approximately one-third of 
        the Nation's poor, 40 percent of the Nation's African 
        American children, and 30 percent of the Nation's 
        Hispanic youth;
          [(8) nearly 20 percent of the Nation's limited-
        English-proficient children and 15 percent of the 
        Nation's disabled youth are enrolled in urban public 
        schools;
          [(9) the academic performance of students in the 
        average inner-city public school system is below that 
        of students in most other kinds of school systems;
          [(10) urban public school systems have higher dropout 
        rates, more problems with health care, and less 
        parental participation than other kinds of school 
        systems;
          [(11) urban preschoolers have one-half the access to 
        early childhood development programs as do other 
        children;
          [(12) shortages of teachers in urban public school 
        systems are 2.5 times greater than such shortages in 
        other kinds of school systems;
          [(13) declining numbers of urban minority high school 
        graduates are pursuing postsecondary educational 
        opportunities;
          [(14) urban public school systems have greater 
        problems with teenage pregnancy, discipline, drug 
        abuse, and gangs than do other kinds of school systems;
          [(15) 75 percent of urban public school buildings are 
        over 25 years old, 33 percent of such buildings are 
        over 50 years old, and such buildings are often in 
        serious disrepair and create poor and demoralizing 
        working and learning conditions;
          [(16) solving the challenges facing our Nation's 
        urban schools will require the concerted and 
        collaborative efforts of all levels of government and 
        all sectors of the community;
          [(17) Federal and State funding of urban public 
        schools has not adequately reflected need; and
          [(18) Federal funding that is well-targeted, 
        flexible, and accountable would contribute 
        significantly to addressing the comprehensive needs of 
        inner-city public schools.

[SEC. 10962. PURPOSE.

  [It is the purpose of this subpart to provide financial 
assistance to--
          [(1) assist urban public schools in meeting the 
        National Education Goals;
          [(2) improve the educational and social well-being of 
        urban public school children;
          [(3) close the achievement gap between urban and 
        nonurban public school children, while improving the 
        achievement level of all children nationally;
          [(4) conduct coordinated research on urban public 
        education problems, solutions, and promising practices;
          [(5) improve the Nation's global economic and 
        educational competitiveness by improving the Nation's 
        urban schools; and
          [(6) encourage community, parental, and business 
        collaboration in the improvement of urban schools.

[SEC. 10963. URBAN SCHOOL GRANTS.

  [(a) Authority.--The Secretary is authorized to make grants 
to eligible local educational agencies serving an urban area or 
State educational agencies in the case where the State 
educational agency is the local educational agency for 
activities designed to assist in local school improvement 
efforts and school reform, and to assist the schools of such 
agencies in meeting the National Education Goals.
  [(b) Authorized Activities.--Funds under this section may be 
used to--
          [(1) increase the academic achievement of urban 
        public school children to at least the national 
        average, such as--
                  [(A) effective public schools programs;
                  [(B) tutoring, mentoring, and other 
                activities to improve academic achievement 
                directly;
                  [(C) activities designed to increase the 
                participation of minority and female students 
                in entry level and advanced courses in 
                mathematics and science;
                  [(D) supplementary academic instruction;
                  [(E) efforts to improve problem-solving and 
                higher-order thinking skills;
                  [(F) programs to increase student motivation 
                for learning; and
                  [(G) efforts to lengthen the school day or 
                school year, or to reduce class sizes;
          [(2) ensure the readiness of all urban public school 
        children for school, such as--
                  [(A) full workday, full calendar-year 
                comprehensive early childhood development 
                programs;
                  [(B) parenting classes and parent involvement 
                activities;
                  [(C) activities designed to coordinate 
                prekindergarten and child care programs;
                  [(D) efforts to integrate developmentally 
                appropriate prekindergarten services into the 
                overall public school program;
                  [(E) upgrading the qualifications of early 
                childhood education staff and standards for 
                programs;
                  [(F) collaborative efforts with health and 
                social service agencies to provide 
                comprehensive services and to facilitate the 
                transition from home to school;
                  [(G) establishment of comprehensive child 
                care centers in public secondary schools for 
                students who are parents and their children; 
                and
                  [(H) augmenting early childhood development 
                programs to meet the special educational and 
                cultural needs of limited-English-proficient 
                preschool children;
          [(3) increase the graduation rates of urban public 
        school students to at least the national average, such 
        as--
                  [(A) dropout prevention activities and 
                support services for public school students at-
                risk of dropping out of school;
                  [(B) reentry, outreach, and support 
                activities to recruit students who have dropped 
                out of school to return to school;
                  [(C) development of systemwide policies and 
                practices that encourage students to stay in 
                school;
                  [(D) efforts to provide individualized 
                student support, such as mentoring programs;
                  [(E) collaborative activities between 
                schools, parents, community groups, agencies, 
                and institutions of higher education aimed at 
                preventing individuals from dropping out of 
                school;
                  [(F) programs to increase student attendance; 
                and
                  [(G) alternative programs for students, 
                especially bilingual and special education 
                students, who have dropped out of school or are 
                at risk of dropping out of school;
          [(4) prepare urban public school students to enter 
        higher education, pursue careers, and exercise their 
        responsibilities as citizens, such as--
                  [(A) activities designed to increase the 
                number and percentages of students, 
                particularly minority students, enrolling in 
                postsecondary educational institutions after 
                graduation from public secondary schools;
                  [(B) in-school youth employment, vocational 
                education, and career education programs that 
                improve the transition from school to work;
                  [(C) activities designed in collaboration 
                with colleges and universities to assist urban 
                public school graduates in completing higher 
                education;
                  [(D) efforts to increase voter registration 
                among eligible public secondary school 
                students;
                  [(E) activities designed to promote community 
                service and volunteerism among students, 
                parents, teachers, and the community; and
                  [(F) civic education and other programs 
                designed to enhance responsible citizenship and 
                understanding of the political process;
          [(5) recruit and retain qualified teachers, such as--
                  [(A) school-based management projects and 
                activities;
                  [(B) programs designed to test efforts to 
                increase the professionalization of teachers or 
                to bring teachers up to national voluntary 
                standards;
                  [(C) alternative routes to certification for 
                qualified individuals from business, the 
                military, and other fields;
                  [(D) efforts to recruit and retain teachers, 
                particularly minority teachers, specializing in 
                critical shortage areas, including early 
                childhood teachers, mathematics and science 
                teachers, and special education and bilingual 
                teachers;
                  [(E) upgrading the skills of teacher aides 
                and paraprofessionals to permit such 
                individuals to become certified teachers;
                  [(F) activities specifically designed to 
                increase the number of minority teachers in 
                urban schools;
                  [(G) incentives for teachers to work in 
                inner-city public schools; and
                  [(H) collaborative activities with urban 
                universities to revise and upgrade teacher 
                training programs;
          [(6) provide for ongoing staff development to 
        increase the professional capacities of the teaching 
        staff and the skills of teacher aides and 
        paraprofessionals;
          [(7) decrease the use of drugs and alcohol among 
        urban public school students and enhance the physical 
        and emotional health of such students, such as--
                  [(A) activities designed to improve the self-
                esteem and self-worth of urban public school 
                students;
                  [(B) the provision of health care services 
                and other social services and the coordination 
                of such services with other health care 
                providers;
                  [(C) programs designed to improve safety and 
                discipline and reduce in-school violence, 
                vandalism, and gang activity;
                  [(D) activities that begin in the early 
                grades and are designed to prevent drug and 
                alcohol abuse and smoking among students and 
                teachers;
                  [(E) collaborative activities with other 
                agencies, businesses, and community groups to 
                discourage the advertisement and glorification 
                of drugs and alcohol;
                  [(F) efforts to enhance health education and 
                nutrition education; and
                  [(G) alternative public schools, and schools-
                within-schools programs, including bilingual 
                and special education programs for public 
                school students with special needs; or
          [(8) plan, develop, operate, or expand programs and 
        activities that are designed to assist urban public 
        schools in meeting the National Education Goals, 
        including--
                  [(A) training of teachers and other 
                educational personnel in subject areas, or in 
                instructional technology and methods that will 
                improve the delivery of services in urban 
                settings and assist in the achievement of the 
                National Education Goals, including staff 
                development efforts that emphasize 
                multicultural and gender and disability bias-
                free curricula;
                  [(B) coordination and collaboration with 
                other municipal agencies, child care 
                organizations, universities, or the private 
                sector;
                  [(C) parental involvement and outreach 
                efforts and other activities designed to 
                enhance parental encouragement of student 
                learning;
                  [(D) pupil services and other support 
                services that contribute to progress in 
                achieving National Education Goals;
                  [(E) efforts to acquire and improve access to 
                educational technology;
                  [(F) assist the schools most in need of 
                services by replicating successful efforts of 
                other urban local educational agencies and 
                expanding successful programs within the 
                eligible agency; or
                  [(G) efforts to improve and strengthen the 
                curriculum and coordinate services across grade 
                levels.
  [(c) Applications.--
          [(1) In general.--An eligible local 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 reasonably require, 
        consistent with this section.
          [(2) Duration.--An application submitted pursuant to 
        paragraph (1) may be for a period of not more than five 
        years.
  [(d) Payments.--The Secretary shall make an award only to 
urban eligible local educational agencies that--
          [(1) comply with the provisions of section 10966; and
          [(2) demonstrate to the satisfaction of the Secretary 
        that the data submitted pursuant to section 10961 shows 
        progress toward meeting National Education Goals.
  [(e) Administrative Costs.--Not more than five percent of any 
award made under this subpart may be used for administrative 
costs.

[SEC. 10964. SPECIAL RULES.

  [(a) Special Consideration.--In making awards under this 
subpart, the Secretary shall give special consideration to 
urban eligible local educational agencies in which there is--
          [(1) low achievement;
          [(2) high poverty; and
          [(3) racial isolation.
  [(b) Flexibility.--Each urban eligible local educational 
agency shall have the flexibility to serve homeless children, 
children in schools undergoing desegregation, immigrants, 
migrants, or other highly mobile populations within the program 
assisted under this subpart.

                 [Subpart 2--Rural Education Initiative

[SEC. 10971. SHORT TITLE.

  [This subpart may be cited as the ``Rural Education 
Achievement Program''.

[SEC. 10972. PURPOSE.

  [It is the purpose of this subpart to address the unique 
needs of rural school districts that frequently--
          [(1) lack the personnel and resources needed to 
        compete for Federal competitive grants; and
          [(2) receive formula allocations in amounts too small 
        to be effective in meeting their intended purposes.

[SEC. 10973. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
subpart $62,500,000 for fiscal year 2001.

[SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED.

  [(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 in part 
        A of title I, section 2210(b), section 3134, or section 
        4116.
          [(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) not 
        later than a date that is established by the State 
        educational agency for the notification.
  [(b) Eligibility.--A local educational agency shall be 
eligible to use the applicable funding in accordance with 
subsection (a) if--
          [(1) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; and
          [(2) 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 of 
        Education.
  [(c) Applicable Funding.--In this section, the term 
``applicable funding'' means funds provided under each of 
titles II, IV, and VI, except for funds made available under 
section 321 of the Department of Education Appropriations Act, 
2001.
  [(d) Disbursal.--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 that 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) Supplement Not Supplant.--Funds made available under 
this section shall be used to supplement and not supplant any 
other State or local education funds.
  [(f ) Special Rule.--References in Federal law to funds for 
the provisions of law set forth in subsection (c) may be 
considered to be references to funds for this section.
  [(g) Construction.--Nothing in this subpart 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 
subpart.

[SEC. 10975. COMPETITIVE 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 local activities authorized 
in part A of title I, section 2210(b), section 3134, or section 
4116.
  [(b) Eligibility.--A local educational agency shall be 
eligible to receive a grant under this section if--
          [(1) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; and
          [(2) 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 of 
        Education.
  [(c) Amount.--
          [(1) In general.--The Secretary shall award a grant 
        to a local educational agency under this section for a 
        fiscal year in an amount equal to the amount determined 
        under paragraph (2) for the fiscal year minus the total 
        amount received under the provisions of law described 
        under section 10974(c) for the fiscal year.
          [(2) Determination.--The amount referred to in 
        paragraph (1) is equal to $100 multiplied by the total 
        number of students in excess of 50 students that are in 
        average daily attendance at the schools served by the 
        local educational agency, plus $20,000, except that the 
        amount may not exceed $60,000.
          [(3) Census determination.--
                  [(A) In general.--Each local educational 
                agency desiring a grant under this section 
                shall determine for each year the number of 
                kindergarten through grade 12 students in 
                average daily attendance at the schools served 
                by the local educational agency during the 
                period beginning or the first day of classes 
                and ending on December 1.
                  [(B) Submission.--Each local educational 
                agency shall submit the number described in 
                subparagraph (A) to the Secretary not later 
                than March 1 of each year.
          [(4) Penalty.--If the Secretary determines that a 
        local educational agency has knowingly submitted false 
        information under paragraph (3) for the purpose of 
        gaining additional funds under this section, then the 
        local educational agency shall be fined an amount equal 
        to twice the difference between the amount the local 
        educational agency received under this section, and the 
        correct amount the local educational agency would have 
        received under this section if the agency had submitted 
        accurate information under paragraph (3).
  [(d) Disbursal.--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 year.
  [(e) Supplement Not Supplant.--Funds made available under 
this section shall be used to supplement and not supplant any 
other State or local education funds.

[SEC. 10976. ACCOUNTABILITY.

  [(a) Academic Achievement.--
          [(1) In general.--Each local educational agency that 
        uses or receives funds under section 10974 or 10975 for 
        a fiscal year shall--
                  [(A) administer an assessment that is used 
                statewide and is consistent with the assessment 
                described in section 1111(b), to assess the 
                academic achievement of students in the schools 
                served by the local educational agency; or
                  [(B) in the case of a local educational 
                agency for which there is no statewide 
                assessment described in subparagraph (A), 
                administer a test, that is selected by the 
                local educational agency, to assess the 
                academic achievement of students in the schools 
                served by the local educational agency.
          [(2) Special rule.--Each local educational agency 
        that uses or receives funds under section 10974 or 
        10975 shall use the same assessment or test described 
        in paragraph (1) for each year of participation in the 
        program carried out under such section.
  [(b) State Educational Agency Determination Regarding 
Continuing Participation.--Each State educational agency that 
receives funding under the provisions of law described in 
section 10974(c) shall--
          [(1) after the third year that a local educational 
        agency in the State participates in a program 
        authorized under section 10974 or 10975 and on the 
        basis of the results of the assessments or tests 
        described in subsection (a), determine whether the 
        students served by the local educational agency 
        participating in the program performed better on the 
        assessments or tests after the third year of the 
        participation than the students performed on the 
        assessments or tests after the first year of the 
        participation;
          [(2) permit only the local educational agencies that 
        participated in the program and served students that 
        performed better on the assessments or tests, as 
        described in paragraph (1), to continue to participate 
        in the program for an additional period of 3 years; and
          [(3) prohibit the local educational agencies that 
        participated in the program and served students that 
        did not perform better on the assessments or tests, as 
        described in paragraph (1), from participating in the 
        program, for a period of 3 years from the date of the 
        determination.

[SEC. 10977. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT APPROPRIATIONS.

  [(a) In General.--If the amount appropriated for any fiscal 
year and made available for grants under this subpart is 
insufficient to pay the full amount for which all agencies are 
eligible under this subpart, the Secretary shall ratably reduce 
each such amount.
  [(b) Additional Amounts.--If additional funds become 
available for making payments under paragraph (1) for such 
fiscal year, payments that were reduced under subsection (a) 
shall be increased on the same basis as such payments were 
reduced.

[SEC. 10978. APPLICABILITY.

  [Sections 10951 and 10952 shall not apply to this subpart.

                  [Subpart 3--White House Conferences

[SEC. 10981. WHITE HOUSE CONFERENCE ON URBAN EDUCATION.

  [(a) Authorization To Call Conference.--
          [(1) In general.--The President is authorized to call 
        and conduct a White House Conference on Urban Education 
        (referred to in this section as the ``Conference'') 
        which shall be held not earlier than November 1, 1995, 
        and not later than October 30, 1996.
          [(2) Purpose.--The purpose of the Conference shall be 
        to--
                  [(A) develop recommendations and strategies 
                for the improvement of urban education;
                  [(B) marshal the forces of the private 
                sector, governmental agencies at all levels, 
                parents, teachers, communities, and education 
                officials to assist urban public schools in 
                achieving National Education Goals; and
                  [(C) conduct the initial planning for a 
                permanent national advisory commission on urban 
                education.
  [(b) Composition of Conference.--
          [(1) In general.--The Conference shall be comprised 
        of 12 individuals, including--
                  [(A) representatives of urban public school 
                systems, including members of the governing 
                body of local educational agencies, and school 
                superintendents;
                  [(B) representatives of the Congress, the 
                Department of Education, and other Federal 
                agencies;
                  [(C) State elected officials and 
                representatives from State educational 
                agencies; and
                  [(D) individuals with special knowledge of 
                and expertise in urban education.
          [(2) Selection.--The President shall select one-third 
        of the participants of the Conference, the majority 
        leader of the Senate, in consultation with the minority 
        leader of the Senate, shall select one-third of such 
        participants, and the Speaker of the House of 
        Representatives, in consultation with the minority 
        leader of the House, shall select the remaining one-
        third of such participants.
          [(3) Representation.--In selecting the participants 
        of the Conference, the President, the majority leader 
        of the Senate, and the Speaker of the House of 
        Representatives shall ensure that the participants are 
        as representative of the ethnic, racial, and linguistic 
        diversity of cities as is practicable.
  [(c) Report.--
          [(1) In general.--Not later than 120 days following 
        the termination of the Conference, a final report of 
        the Conference, containing such findings and 
        recommendations as may be made by the Conference, shall 
        be submitted to the President. The final report shall 
        be made public and, not later than 90 days after 
        receipt by the President, transmitted to the Congress 
        together with a statement of the President containing 
        recommendations for implementing the report.
          [(2) Publication and distribution.--The Conference is 
        authorized to publish and distribute the report 
        described in this section. Copies of the report shall 
        be provided to the Federal depository libraries and 
        made available to local urban public school leaders.

[SEC. 10982. WHITE HOUSE CONFERENCE ON RURAL EDUCATION.

  [(a) Authorization To Call Conference.--
          [(1) In general.--The President is authorized to call 
        and conduct a White House Conference on Rural Education 
        (hereafter in this section referred to as the 
        ``Conference'').
          [(2) Date.--The Conference shall be held not earlier 
        than November 1, 1995, and not later than October 30, 
        1996.
          [(3) Purpose.--The purposes of the Conference shall 
        be to--
                  [(A) develop recommendations and strategies 
                for the improvement of rural public education;
                  [(B) marshal the forces of the private 
                sector, governmental agencies at all levels, 
                parents, teachers, communities, and education 
                officials to assist rural public schools in 
                achieving National Education Goals, and make 
                recommendations on the roles rural public 
                schools can play to assist with local rural 
                community economic revitalization; and
                  [(C) conduct the initial planning for a 
                permanent national commission on rural public 
                education.
  [(b) Composition of Conference.--
          [(1) In general.--The Conference shall be comprised 
        of--
                  [(A) representatives of eligible public 
                school systems, including members of the 
                governing body of local educational agencies, 
                school superintendents, and classroom teachers;
                  [(B) representatives of the Congress, the 
                Department, and other Federal agencies;
                  [(C) State elected officials and 
                representatives from State educational 
                agencies;
                  [(D) individuals with special knowledge of, 
                and expertise in, rural education, including 
                individuals involved with rural postsecondary 
                education; and
                  [(E) individuals with special knowledge of, 
                and expertise in, rural business.
          [(2) Selection.--The President shall select one-third 
        of the participants of the Conference, the majority 
        leader of the Senate, in consultation with the minority 
        leader of the Senate, shall select one-third of such 
        participants, and the Speaker of the House of 
        Representatives, in consultation with the minority 
        leader of the House, shall select the remaining one-
        third of such participants.
          [(3) Representation.--In selecting the participants 
        of the Conference, the President, the majority leader 
        of the Senate, and the Speaker of the House of 
        Representatives shall ensure that the participants are 
        as representative of the ethnic, racial, and language 
        diversity of rural areas as is practicable.
  [(c) Report.--
          [(1) In general.--Not later than 120 days following 
        the termination of the Conference, a final report of 
        the Conference, containing such findings and 
        recommendations as may be made by the Conference, shall 
        be submitted to the President. The final report shall 
        be made public and, not later than 90 days after 
        receipt by the President, transmitted to the Congress 
        together with a statement of the President containing 
        recommendations for implementing the report.
          [(2) Publication and distribution.--The Conference is 
        authorized to publish and distribute the report 
        described in this section. Copies of the report shall 
        be provided to the Federal depository libraries and 
        made available to local rural school leaders and 
        teachers.]

           *       *       *       *       *       *       *

                [PART L--PHYSICAL EDUCATION FOR PROGRESS

[SEC. 10999A. SHORT TITLE.

  [This part may be cited as the ``Physical Education for 
Progress Act''.

[SEC. 10999B. PURPOSE.

  [The purpose of this part is to award grants and contracts to 
local educational agencies to enable the local educational 
agencies to initiate, expand and improve physical education 
programs for all kindergarten through 12th grade students.

[SEC. 10999C. FINDINGS.

  [Congress makes the following findings:
          [(1) Physical education is essential to the 
        development of growing children.
          [(2) Physical education helps improve the overall 
        health of children by improving their cardiovascular 
        endurance, muscular strength and power, and 
        flexibility, and by enhancing weight regulation, bone 
        development, posture, skillful moving, active lifestyle 
        habits, and constructive use of leisure time.
          [(3) Physical education helps improve the self 
        esteem, interpersonal relationships, responsible 
        behavior, and independence of children.
          [(4) Children who participate in high quality daily 
        physical education programs tend to be more healthy and 
        physically fit.
          [(5) The percentage of young people who are 
        overweight has more than doubled in the 30 years 
        preceding 1999.
          [(6) Low levels of activity contribute to the high 
        prevalence of obesity among children in the United 
        States.
          [(7) Obesity related diseases cost the United States 
        economy more than $100,000,000,000 every year.
          [(8) Inactivity and poor diet cause at least 300,000 
        deaths a year in the United States.
          [(9) Physically fit adults have significantly reduced 
        risk factors for heart attacks and stroke.
          [(10) Children are not as active as they should be 
        and fewer than one in four children get 20 minutes of 
        vigorous activity every day of the week.
          [(11) The Surgeon General's 1996 Report on Physical 
        Activity and Health, and the Centers for Disease 
        Control and Prevention, recommend daily physical 
        education for all students in kindergarten through 
        grade 12.
          [(12) Twelve years after Congress passed House 
        Concurrent Resolution 97, 100th Congress, agreed to 
        December 11, 1987, encouraging State and local 
        governments and local educational agencies to provide 
        high quality daily physical education programs for all 
        children in kindergarten through grade 12, little 
        progress has been made.
          [(13) Every student in our Nation's schools, from 
        kindergarten through grade 12, should have the 
        opportunity to participate in quality physical 
        education. It is the unique role of quality physical 
        education programs to develop the health-related 
        fitness, physical competence, and cognitive 
        understanding about physical activity for all students 
        so that the students can adopt healthy and physically 
        active lifestyles.

[SEC. 10999D. PROGRAM AUTHORIZED.

  [The Secretary is authorized to award grants to, and enter 
into contracts with, local educational agencies to pay the 
Federal share of the costs of initiating, expanding, and 
improving physical education programs for kindergarten through 
grade 12 students by--
          [(1) providing equipment and support to enable 
        students to actively participate in physical education 
        activities; and
          [(2) providing funds for staff and teacher training 
        and education.

[SEC. 10999E. APPLICATIONS; PROGRAM ELEMENTS.

  [(a) Applications.--Each local educational agency desiring a 
grant or contract under this part shall submit to the Secretary 
an application that contains a plan to initiate, expand, or 
improve physical education programs in the schools served by 
the agency in order to make progress toward meeting State 
standards for physical education.
  [(b) Program Elements.--A physical education program 
described in any application submitted under subsection (a) may 
provide--
          [(1) fitness education and assessment to help 
        children 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 
        child;
          [(3) development of 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; and
          [(6) teachers of physical education the opportunity 
        for professional development to stay abreast of the 
        latest research, issues, and trends in the field of 
        physical education.
  [(c) Special Rule.--For the purpose of this part, 
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 part.

[SEC. 10999F. PROPORTIONALITY.

  [The Secretary shall ensure that grants awarded and contracts 
entered into under this part shall be equitably distributed 
between local educational agencies serving urban and rural 
areas, and between local educational agencies serving large and 
small numbers of students.

[SEC. 10999G. PRIVATE SCHOOL STUDENTS AND HOME-SCHOOLED STUDENTS.

  [An application for funds under this part may provide for the 
participation, in the activities funded under this part, of--
          [(1) home-schooled children, and their parents and 
        teachers; or
          [(2) children enrolled in private nonprofit 
        elementary schools or secondary schools, and their 
        parents and teachers.

[SEC. 10999H. REPORT REQUIRED FOR CONTINUED FUNDING.

  [As a condition to continue to receive grant or contract 
funding after the first year of a multiyear grant or contract 
under this part, the administrator of the grant or contract for 
the local educational agency shall submit to the Secretary an 
annual report that describes the activities conducted during 
the preceding year and demonstrates that progress has been made 
toward meeting State standards for physical education.

[SEC. 10999I. REPORT TO CONGRESS.

  [The Secretary shall submit a report to Congress not later 
than June 1, 2003, that describes the programs assisted under 
this part, documents the success of such programs in improving 
physical fitness, and makes such recommendations as the 
Secretary determines appropriate for the continuation and 
improvement of the programs assisted under this part.

[SEC. 10999J. ADMINISTRATIVE COSTS.

  [Not more than 5 percent of the grant or contract funds made 
available to a local educational agency under this part for any 
fiscal year may be used for administrative costs.

[SEC. 10999K. FEDERAL SHARE; SUPPLEMENT NOT SUPPLANT.

  [(a) Federal Share.--The Federal share under this part may 
not exceed--
          [(1) 90 percent of the total cost of a project for 
        the first year for which the project receives 
        assistance under this part; and
          [(2) 75 percent of such cost for the second and each 
        subsequent such year.
  [(b) Supplement Not Supplant.--Funds made available under 
this part shall be used to supplement and not supplant other 
Federal, State and local funds available for physical education 
activities.

[SEC. 10999L. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated $30,000,000 for 
fiscal year 2001, $70,000,000 for fiscal year 2002, and 
$100,000,000 for each of the fiscal years 2003 through 2005, to 
carry out this part. Such funds shall remain available until 
expended.

                    [TITLE XI--COORDINATED SERVICES

[SEC. 11001. FINDINGS AND PURPOSE.

  [(a) Findings.--The Congress finds the following:
          [(1) Growing numbers of children are negatively 
        affected by influences outside of the classroom which 
        increase such children's risk of academic failure.
          [(2) Factors such as poor nutrition, unsafe living 
        conditions, physical and sexual abuse, family and gang 
        violence, inadequate health care, unemployment, lack of 
        child care, and substance abuse, adversely affect 
        family relationships and the ability of a child to 
        learn.
          [(3) Parents and other caregivers in today's high 
        pressure society often face demands which place 
        restraints on such parents' and caregivers' time and 
        affect such parents' and caregivers' ability to 
        adequately provide for the needs of the families of 
        such parents and caregivers.
          [(4) Access to health and social service programs can 
        address the basic physical and emotional needs of 
        children so that children can fully participate in the 
        learning experiences offered children in school.
          [(5) Services for at-risk students need to be more 
        convenient, and less fragmented, regulated and 
        duplicative, in order to meet the needs of children and 
        their families.
          [(6) School personnel, parents, and support service 
        providers often lack knowledge of, and access to, 
        available services for at-risk students and their 
        families in the community, and have few resources to 
        coordinate services and make services accessible.
          [(7) Service providers, such as teachers, social 
        workers, health care and child care providers, juvenile 
        justice workers and others, are often trained in 
        separate disciplines that provide little support for 
        the coordination of services.
          [(8) Coordination of services is more cost effective 
        because such coordination substitutes prevention for 
        expensive crisis intervention.
          [(9) Coordinating health and social services with 
        education can help the Nation meet the National 
        Education Goals by ensuring better outcomes for 
        children.
  [(b) Purpose of Coordinating Services.--The purpose of this 
title is to provide elementary and secondary school students 
and their families better access to the social, health and 
education services necessary for students to succeed in school 
and for their families to take an active role in ensuring that 
such students receive the best possible education.

[SEC. 11002. DEFINITIONS.

  [For the purpose of this title--
          [(1) the term ``coordinated services project'' means 
        a comprehensive approach to meeting the educational, 
        health, social service, and other needs of children and 
        their families, including foster children and their 
        foster families, through a communitywide partnership 
        that links public and private agencies providing such 
        services or access to such services through a 
        coordination site at or near a school; and
          [(2) the term ``eligible entity'' means a local 
        educational agency, school, or a consortium of schools.

[SEC. 11003. AUTHORITY.

  [In order to use funds made available under section 14206(b) 
for the development, or the implementation or expansion, of a 
coordinated service project an eligible entity shall have an 
application approved under subsection (b) or (c), respectively, 
of section 11004.

[SEC. 11004. PROJECT DEVELOPMENT AND IMPLEMENTATION.

  [(a) Applications.--Each eligible entity desiring to use 
funds made available under section 14206(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.
  [(b) Project Development Plan.--The application for the 
development of the coordinated services project under this 
title shall cover a period of not more than 1 year and shall 
include a plan that--
          [(1) demonstrates that an assessment will be 
        performed of the economic, social, and health barriers 
        to educational achievement experienced by children and 
        families, including foster children and their foster 
        families, in the community, and the local, State, 
        Federal, and privately funded services available to 
        meet such needs;
          [(2) identifies the measures that will be taken to 
        establish a communitywide partnership that links public 
        and private agencies providing services to children and 
        families; and
          [(3) identifies any other measures that will be taken 
        to develop a comprehensive plan for the implementation 
        or expansion of a coordinated services project.
  [(c) Project Implementation or Expansion Plan.--The 
application for the implementation or expansion of a 
coordinated services project under this title shall contain a 
plan that includes--
          [(1) the results of a children and families needs 
        assessment, which shall include an assessment of the 
        needs of foster children;
          [(2) a description of the entities operating the 
        coordinated services project;
          [(3) a description of the proposed coordinated 
        services project, the objectives of such project, where 
        such project will be located, and the staff that will 
        be used to carry out such project;
          [(4) a description of how the success of the 
        coordinated services project will be evaluated;
          [(5) a description of the training to be provided to 
        teachers and appropriate personnel;
          [(6) information regarding whether a sliding scale 
        fee for services will be employed, and if not, an 
        explanation of why such scale is not feasible; and
          [(7) when applicable, strategies to ensure that the 
        health and welfare needs of migratory families are 
        addressed.

[SEC. 11005. USES OF FUNDS.

  [(a) Uses.--
          [(1) In general.--Funds made available under section 
        14206(b) may be used for planning for, or the 
        implementation or expansion of, activities which 
        include--
                  [(A) hiring a services coordinator;
                  [(B) making minor renovations to existing 
                buildings;
                  [(C) purchasing basic operating equipment;
                  [(D) improving communications and 
                information-sharing among entities 
                participating in the coordinated services 
                project;
                  [(E) providing training to teachers and 
                appropriate personnel concerning such teacher's 
                and personnel's role in a coordinated services 
                project; or
                  [(F) conducting the needs assessment required 
                in section 11004(b)(1).
          [(2) Prohibition.--Funds made available under section 
        14206(b) shall not be used for the direct provision of 
        any health or health-related services.
  [(b) Federal Funds To Supplement, Not Supplant, Non-Federal 
Funds.--An eligible entity shall use funds received under this 
title only to supplement the amount of funds that would, in the 
absence of such Federal funds, be made available from non-
Federal sources for coordinated services, and not to supplant 
such funds.

[SEC. 11006. CONTINUING AUTHORITY.

  [The Secretary shall prohibit an eligible entity from using 
funds made available under section 14206(b) if the Secretary 
determines that the coordinated services project assisted under 
this title is not achieving effective coordination after two 
years of implementation of such project.

[SEC. 11007. FEDERAL AGENCY COORDINATION.

  [(a) Agency Coordination.--The Secretaries of Education, 
Health and Human Services, Labor, Housing and Urban 
Development, Treasury, and Agriculture, and the Attorney 
General shall review the programs administered by their 
agencies to identify barriers to service coordination.
  [(b) Report to Congress.--Such Secretaries and the Attorney 
General shall submit jointly a report to the Congress not later 
than two years after the date of the enactment of the Improving 
America's Schools Act of 1994, based on the review required 
under subsection (a) recommending legislative and regulatory 
action to address such barriers, and during the time preceding 
the submission of such report, shall use waiver authorities 
authorized under this and other Acts to address such barriers.

      [TITLE XII--SCHOOL FACILITIES INFRASTRUCTURE IMPROVEMENT ACT

[SEC. 12001. SHORT TITLE.

  [This title may be cited as the ``Education Infrastructure 
Act of 1994''.

[SEC. 12002. FINDINGS.

  [The Congress finds the following:
          [(1) According to a 1991 survey conducted by the 
        American Association of School Administrators, 74 
        percent of all public school buildings in the United 
        States need to be replaced.
          [(2) Almost one-third of such buildings were built 
        prior to World War II.
          [(3) It is estimated that one of every four public 
        school buildings in the United States is in inadequate 
        condition, and of such buildings, 61 percent need 
        maintenance or major repairs, 43 percent are obsolete, 
        42 percent contain environmental hazards, 25 percent 
        are overcrowded, and 13 percent are structurally 
        unsound.
          [(4) Large numbers of local educational agencies have 
        difficulties securing financing for school facility 
        improvement, including school libraries, media centers, 
        and facilities.
          [(5) Improving the quality of public elementary and 
        secondary schools will help our Nation meet the 
        National Education Goals.
          [(6) The challenges facing our Nation's public 
        elementary and secondary schools require the concerted 
        and collaborative efforts of all levels of government 
        and all sectors of the community.

[SEC. 12003. PURPOSE.

  [The purpose of this title is to help the Nation meet the 
National Education Goals through the provision of Federal funds 
to enable local educational agencies to meet the costs 
associated with the improvement of schools within their 
jurisdiction.

[SEC. 12004. IMPROVEMENT OF PUBLIC ELEMENTARY AND SECONDARY EDUCATION 
                    FACILITIES PROGRAM AUTHORIZED.

  [(a) Program Authority.--
          [(1) In general.--From amounts appropriated under 
        section 12013 for any fiscal year, the Secretary shall 
        award grants to eligible local educational agencies 
        with applications approved under section 12005 to carry 
        out the authorized activities described in section 
        12007.
          [(2) Special rule.--The Secretary may reserve not 
        more than 1 percent of the amount appropriated under 
        section 12013 to provide assistance to Indian schools 
        in accordance with this title.
  [(b) Award Categories.--
          [(1) In general.--From the funds appropriated to 
        carry out this title for each fiscal year, the 
        Secretary shall award grants to eligible local 
        educational agencies in each of the following 
        categories:
                  [(A) Eligible local educational agencies in 
                which the number of students enrolled is less 
                than 2,500.
                  [(B) Such agencies in which such number is 
                2,500 or greater but less than 5,000.
                  [(C) Such agencies in which such number is 
                5,000 or greater but less than 10,000.
                  [(D) Such agencies in which such number is 
                10,000 or greater but less than 25,000.
                  [(E) Such agencies in which such number is 
                25,000 or greater but less than 50,000.
                  [(F) Such agencies in which such number is 
                50,000 or greater.
  [(c) Maximum Award Amounts.--The Secretary shall annually set 
the maximum award amounts for each category described in 
subsection (b)(1).

[SEC. 12005. AWARD OF GRANTS.

  [(a) Criteria.--The Secretary shall award grants under this 
title on the basis of--
          [(1) high numbers or percentages of the total number 
        of children aged 5 to 17, inclusive, residing in the 
        geographic area served by an eligible local educational 
        agency who are counted under subpart 2 of part A of 
        title I;
          [(2) the extent to which the eligible local 
        educational agency lacks the fiscal capacity, including 
        the ability to raise funds through the full use of such 
        agency's bonding capacity and otherwise, to undertake 
        the project without Federal assistance;
          [(3) the threat of the condition of the physical 
        plant poses to the safety and well-being of students;
          [(4) the demonstrated need for the construction, 
        reconstruction, or renovation based on the condition of 
        the facility;
          [(5) the age of the facility to be renovated or 
        replaced; and
          [(6) such other criteria as the Secretary may 
        prescribe by regulation.
  [(b) Allocation Among Categories.--The Secretary shall 
allocate funds under this title among each of the categories 
described in paragraph (1) on such basis as the Secretary 
determines is appropriate, including--
          [(1) the relative numbers or percentages of students 
        counted under subpart 2 of part A of title I; and
          [(2) the relative costs of carrying out activities 
        under this title in eligible local educational agencies 
        in each such category.
  [(c) Frequency of Awards.--No local educational agency may 
receive more than one grant under this title in any five-year 
period.
  [(d) Special Rule.--The Secretary shall only award grants 
under this title if the Secretary determines that sufficient 
funds will be provided under this title or from other sources, 
such as the issuance of bonds, or savings generated from 
performance contracting, to carry out the activities for which 
assistance is sought.

[SEC. 12006. APPLICATIONS.

  [(a) Applications Required.--Each eligible local educational 
agency desiring to receive a grant under this title shall 
submit an application to the Secretary.
  [(b) Application Contents.--Each application described in 
subsection (a) shall contain--
          [(1) an assurance that the application was developed 
        in consultation with parents and classroom teachers;
          [(2) a description of each architectural, civil, 
        structural, mechanical, or electrical deficiency to be 
        corrected with funds provided under this title, 
        including the priority for the repair of the 
        deficiency;
          [(3) a description of the criteria used by the 
        applicant to determine the type of corrective action 
        necessary to meet the purpose of this title;
          [(4) a description of the improvement to be supported 
        with funds provided under this title;
          [(5) a cost estimate of the proposed improvement;
          [(6) an identification of other resources, such as 
        unused bonding capacity, that are available to carry 
        out the activities for which funds are requested under 
        this title;
          [(7) a description of how activities supported with 
        funds provided under this title will promote energy 
        conservation; and
          [(8) such other information and assurances as the 
        Secretary may reasonably require.

[SEC. 12007. AUTHORIZED ACTIVITIES.

  [(a) In General.--Each eligible local educational agency 
receiving a grant under this title shall use the grant funds 
only to ensure the health and safety of students through the 
repair, renovation, alteration, and construction of a public 
elementary or secondary school library, media center, or 
facility, used for academic or vocational instruction.
  [(b) Particular Activities.--Subject to subsection (a), each 
eligible local educational agency receiving a grant under this 
title may use the grant funds to meet the requirements of 
section 504 of the Rehabilitation Act of 1973 and the Americans 
with Disabilities Act of 1990.

[SEC. 12008. GENERAL PROVISIONS.

  [(a) Budget and Accounting.--In the performance of, and with 
respect to, the functions, powers, and duties under this title, 
the Secretary, notwithstanding the provisions of any other law, 
shall--
          [(1) prepare annually and submit a budget program as 
        provided for wholly owned Government corporations by 
        chapter 91 of title 31, United States Code; and
          [(2) maintain a set of accounts which shall be 
        audited by the Comptroller General in accordance with 
        the provisions of chapter 35 of title 31, United States 
        Code, but such financial transactions of the Secretary, 
        as the making of loans and vouchers approved by the 
        Secretary, in connection with such financial 
        transactions shall be final and conclusive upon all 
        officers of the Government.
  [(b) Use of Funds.--Funds made available to the Secretary 
pursuant to the provisions of this title shall be deposited in 
a checking account or accounts with the Treasurer of the United 
States. Receipts and assets obtained or held by the Secretary 
in connection with the performance of functions under this 
title, and all funds available for carrying out the functions 
of the Secretary under this title (including appropriations 
therefor, which are hereby authorized), shall be available, in 
such amounts as may from year to year be authorized by the 
Congress, for the administrative expenses of the Secretary in 
connection with the performance of such functions.
  [(c) Legal Powers.--In the performance of, and with respect 
to, the functions, powers, and duties under this title, the 
Secretary, notwithstanding the provisions of any other law, 
may--
          [(1) prescribe such rules and regulations as may be 
        necessary to carry out the purposes of this title;
          [(2) sue and be sued;
          [(3) foreclose on any property or commence any action 
        to protect or enforce any right conferred upon the 
        Secretary by any law, contract, or other agreement, and 
        bid for and purchase at any foreclosure or any other 
        sale any property in connection with which the 
        Secretary has made a loan pursuant to this part;
          [(4) in the event of any such acquisition, 
        notwithstanding any other provision of law relating to 
        the acquisition, handling, or disposal of real property 
        by the United States, complete, administer, remodel and 
        convert, dispose of, lease, and otherwise deal with, 
        such property, but any such acquisition of real 
        property shall not deprive any State or political 
        subdivision of such State civil or criminal 
        jurisdiction in and over such property or impair the 
        civil rights under the State or local laws of the 
        inhabitants on such property;
          [(5) sell or exchange at public or private sale, or 
        lease, real or personal property, and sell or exchange 
        any securities or obligations, upon such terms as the 
        Secretary may fix;
          [(6) obtain insurance against loss in connection with 
        property and other assets held; and
          [(7) include in any contract or instrument made 
        pursuant to this title such other covenants, 
        conditions, or provisions as may be necessary to assure 
        that the purposes of this title will be achieved.
  [(d) Contracts for Supplies or Services.--Section 3709 of the 
Revised Statutes shall not apply to any contract for services 
or supplies on account of any property acquired pursuant to 
this subtitle if the amount of such contract does not exceed 
$1,000.
  [(e) Applicability of Government Corporation Control Act.--
The provisions of section 9107(a) of title 31, United States 
Code, which are applicable to corporations or agencies subject 
to chapter 91 of such title, shall also be applicable to the 
activities of the Secretary under this title.

[SEC. 12009. FAIR WAGES.

  [All laborers and mechanics employed by contractors or 
subcontractors in the performance of any contract and 
subcontract for the repair, renovation, alteration, or 
construction, including painting and decorating, of any 
building or work that is financed in whole or in part by a 
grant under this title, shall be paid wages not less than those 
determined by the Secretary of Labor in accordance with the Act 
of March 3, 1931 (commonly known as the Davis-Bacon Act); as 
amended (40 U.S.C. 276a-276a-5). The Secretary of Labor shall 
have the authority and functions set forth in reorganization 
plan of No. 14 of 1950 (15 FR 3176; 64 Stat. 1267) and section 
2 of the Act of June 1, 1934 (commonly known as the Copeland 
Anti-Kickback Act) as amended (40 U.S.C. 276c, 48 Stat. 948).

[SEC. 12010. REQUIREMENTS.

  [(a) Special Rules.--
          [(1) Maintenance of effort.--An eligible local 
        educational agency may receive a grant under this title 
        for any fiscal year only if the Secretary finds that 
        either the 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 local educational agency for the preceding 
        fiscal year was not less than 90 percent of such 
        combined fiscal effort or aggregate expenditures for 
        the fiscal year for which the determination is made.
          [(2) Supplement not supplant.--An eligible local 
        educational agency shall use funds received under this 
        title only to supplement the amount of funds that 
        would, in the absence of such Federal funds, be made 
        available from non-Federal sources for the repair, 
        renovation, alteration, and construction of school 
        facilities used for educational purposes, and not to 
        supplant such funds.
  [(b) General Limitations.--
          [(1) Real property.--No part of any grant funds under 
        this title shall be used for the acquisition of any 
        interest in real property.
          [(2) Maintenance.--Nothing in this title shall be 
        construed to authorize the payment of maintenance costs 
        in connection with any projects constructed in whole or 
        in part with Federal funds provided under this title.
          [(3) Environmental safeguards.--All projects carried 
        out with Federal funds provided under this title shall 
        comply with all relevant Federal, State, and local 
        environmental laws and regulations.
          [(4) Athletic and similar facilities.--No funds 
        received under this title shall be used for stadiums or 
        other facilities that are primarily used for athletic 
        contests or exhibitions or other events for which 
        admission is charged to the general public.

[SEC. 12011. FEDERAL ASSESSMENT.

  [The Secretary shall reserve not more than 1 percent of funds 
appropriated for each fiscal year under section 15013--
          [(1) to collect such data as the Secretary determines 
        necessary at the school, local, and State levels;
          [(2) to conduct studies and evaluations, including 
        national studies and evaluations, in order to--
                  [(A) monitor the progress of projects 
                supported with funds provided under this title; 
                and
                  [(B) evaluate the state of United States 
                public elementary and secondary school 
                libraries, media centers, and facilities; and
          [(3) to report to the Congress by July 1, 1997, 
        regarding the findings of the studies and evaluations 
        described in paragraph (2).

[SEC. 12012. DEFINITIONS.

  [For the purpose of this title--
          [(1) the term ``construction'' means the alteration 
        or renovation of a building, structure, or facility, 
        including--
                  [(A) the concurrent installation of 
                equipment; and
                  [(B) the complete or partial replacement of 
                an existing facility, but only if such 
                replacement is less expensive and more cost-
                effective than alteration, renovation, or 
                repair of the facility;
          [(2) the term ``school'' means a public structure 
        suitable for use as a classroom, laboratory, library, 
        media center, or related facility, the primary purpose 
        of which is the instruction of public elementary and 
        secondary school students; and
          [(3) the term ``eligible local educational agency'' 
        means a local educational agency in which--
                  [(A) not less than 15 percent of the children 
                that reside in the geographic area served by 
                such agency are eligible to be counted under 
                subpart 2 of part A of title I of this Act; or
                  [(B) the United States owns Federal property 
                described in section 8015(5), that has an 
                assessed value (determined as of the time or 
                times when acquired) aggregating 90 percent or 
                more of the assessed value of all real property 
                in such agency (determined as of the time or 
                times when so acquired); and
                  [(C) demonstrates in the application 
                submitted under section 12006 that such agency 
                has urgent repair, renovation, alteration and 
                construction needs for its public elementary or 
                secondary schools used for academic or 
                vocational instruction.

[SEC. 12013. AUTHORIZATION.

  [There are authorized to be appropriated to carry out this 
title $200,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.

   [TITLE XIII--SUPPORT AND ASSISTANCE PROGRAMS TO IMPROVE EDUCATION

[SEC. 13001. FINDINGS.

  [The Congress finds that--
          [(1) high-quality technical assistance can enhance 
        the improvements in teaching and learning achieved 
        through the implementation of programs under this Act;
          [(2) comprehensive technical assistance and effective 
        program dissemination are essential ingredients of the 
        overall strategy of the Improving America's Schools Act 
        of 1994 to improve programs and provide all children 
        opportunities to meet challenging State content 
        standards and challenging State student performance 
        standards;
          [(3) States, local educational agencies, tribes, and 
        schools serving students with special needs, such as 
        students with limited-English proficiency and students 
        with disabilities, have great need for comprehensive 
        technical assistance in order to use funds under this 
        Act to provide such students with opportunities to 
        learn to challenging State content standards and 
        challenging State student performance standards;
          [(4) current technical assistance and dissemination 
        efforts are fragmented and categorical in nature, and 
        thus fail to address adequately the needs of States, 
        local educational agencies and tribes for help in 
        integrating into a coherent strategy for improving 
        teaching and learning the various programs under this 
        Act with State and local programs and other education 
        reform efforts;
          [(5) too little creative use is made of technology as 
        a means of providing information and assistance in a 
        cost-effective way;
          [(6) comprehensive technical assistance can help 
        schools and school systems focus on improving 
        opportunities for all children to meet challenging 
        State content standards and challenging State student 
        performance standards, as such schools and systems 
        implement programs under this Act;
          [(7) comprehensive technical assistance will provide 
        coordinated assistance to help States, local 
        educational agencies, tribes, participating colleges 
        and universities, and schools integrate Federal, State, 
        and local education programs in ways that contribute to 
        improving schools and entire school systems;
          [(8) technical assistance in support of programs 
        under this Act should be coordinated with the 
        Department's regional offices, the regional educational 
        laboratories, State Literacy Resource Centers, 
        vocational resource centers, and other technical 
        assistance efforts supported by the Department; and
          [(9) technical assistance providers should prioritize 
        assistance for local educational agencies and schools.

[SEC. 13002. PURPOSE.

  [The purpose of this title is to create a national technical 
assistance and dissemination system to make available to 
States, local educational agencies, tribes, schools, and other 
recipients of funds under this Act technical assistance in--
          [(1) administering and implementing programs under 
        this Act;
          [(2) implementing school reform programs in a manner 
        that improves teaching and learning for all students;
          [(3) coordinating such programs with other Federal, 
        State, and local education plans and activities, so 
        that all students, particularly students at risk of 
        educational failure, are provided opportunities to meet 
        challenging State content standards and challenging 
        State student performance standards; and
          [(4) adopting, adapting, and implementing promising 
        and proven practices for improving teaching and 
        learning.

                     [TITLE XIV--GENERAL PROVISIONS

                          [PART A--DEFINITIONS

[SEC. 14101. DEFINITIONS.

  [Except as otherwise provided, for the purposes of this Act, 
the following terms have the following meanings:
          [(1) Average daily attendance.--(A) 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 such school year.
          [(B) 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 
        such other data.
          [(C) 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 in 
        another school district, the Secretary shall, for 
        purposes of this Act--
                  [(i) consider the child to be in attendance 
                at a school of the agency making such payment; 
                and
                  [(ii) not consider the child to be in 
                attendance at a school of the agency receiving 
                such payment.
          [(D) 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 
        disabilities, as defined in section 602(a)(1) of the 
        Individuals with Disabilities Education Act, the 
        Secretary shall, for the purposes of this Act, consider 
        such child to be in attendance at a school of the 
        agency making such 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 such 
                        agencies; divided by
                  [(B) the aggregate number of children in 
                average daily attendance to whom such agencies 
                provided free public education during such 
                preceding year.
          [(3) Child.--The term ``child'' means any person 
        within the age limits for which the State provides free 
        public education.
          [(4) 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.
          [(5) Consolidated local application.--The term 
        ``consolidated local application'' means an application 
        submitted by a local educational agency pursuant to 
        section 14302.
          [(6) Consolidated local plan.--The term 
        ``consolidated local plan'' means a plan submitted by a 
        local educational agency pursuant to section 14302.
          [(7) Consolidated state application.--The term 
        ``consolidated State application'' means an application 
        submitted by a State educational agency pursuant to 
        section 14302.
          [(8) Consolidated state plan.--The term 
        ``consolidated State plan'' means a plan submitted by a 
        State educational agency pursuant to section 14302.
          [(9) 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.
          [(10) Covered program.--The term ``covered program'' 
        means each of the programs authorized by--
                  [(A) part A of title I;
                  [(B) part C of title I;
                  [(C) title II (other than section 2103 and 
                part D);
                  [(D) subpart 2 of part A of title III;
                  [(E) part A of title IV (other than section 
                4114); and
                  [(F) title VI.
          [(11) 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 title VI.
          [(12) Department.--The term ``Department'' means the 
        Department of Education.
          [(13) 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.
          [(14) 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.
          [(15) 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.
          [(16) 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 or secondary school 
                education as determined under applicable State 
                law, except that such term does not include any 
                education provided beyond grade 12.
          [(17) 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 performance capability in 
        areas such as intellectual, creative, artistic, or 
        leadership capacity, or in specific academic fields, 
        and who require services or activities not ordinarily 
        provided by the school in order to fully develop such 
        capabilities.
          [(18) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given that term in section 101 of the Higher Education 
        Act of 1965.
          [(19) Local educational agency.--(A) 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 or secondary schools in a city, county, 
        township, school district, or other political 
        subdivision of a State, or for such combination of 
        school districts or counties as are recognized in a 
        State as an administrative agency for its public 
        elementary or secondary schools.
          [(B) The term includes any other public institution 
        or agency having administrative control and direction 
        of a public elementary or secondary school.
          [(C) The term includes an elementary or secondary 
        school funded by the Bureau of Indian Affairs but only 
        to the extent that such inclusion makes such school 
        eligible for programs for which specific eligibility is 
        not provided to such school in another provision of law 
        and such 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 such 
        school shall not be subject to the jurisdiction of any 
        State educational agency other than the Bureau of 
        Indian Affairs.
          [(20) Mentoring.--The term ``mentoring'' means a 
        program in which an adult works with a child or youth 
        on a 1-to-1 basis, establishing a supportive 
        relationship, providing academic assistance, and 
        introducing the child or youth to new experiences that 
        enhance the child or youth's ability to excel in school 
        and become a responsible citizen.
          [(21) Other staff.--The term ``other staff'' means 
        pupil services personnel, librarians, career guidance 
        and counseling personnel, education aides, and other 
        instructional and administrative personnel.
          [(22) Outlying area.--The term ``outlying area'' 
        means the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and for 
        the purpose of section 1121 and any other discretionary 
        grant program under this Act, the Republic of the 
        Marshall Islands, the Federated States of Micronesia, 
        and the Republic of Palau.
          [(23) Parent.--The term ``parent'' includes a legal 
        guardian or other person standing in loco parentis.
          [(24) Public telecommunication entity.--The term 
        ``public telecommunication entity'' has the same 
        meaning given to such term in section 397(12) of the 
        Communications Act of 1934.
          [(25) Pupil services personnel; pupil services.--(A) 
        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 such 
        term is defined in section 602(a)(17) of the 
        Individuals with Disabilities Education Act) as part of 
        a comprehensive program to meet student needs.
          [(B) The term ``pupil services'' means the services 
        provided by pupil services personnel.
          [(26) 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 such term does 
        not include any education beyond grade 12.
          [(27) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          [(28) 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.
          [(29) State educational agency.--The term ``State 
        educational agency'' means the agency primarily 
        responsible for the State supervision of public 
        elementary and secondary schools.
          [(30) Technology.--The term ``technology'' means the 
        latest state-of-the-art technology products and 
        services, such as closed circuit television systems, 
        educational television or radio programs and services, 
        cable television, satellite, copper fiber optic 
        transmission, computer hardware and software, video and 
        audio laser and CD-ROM disks, video and audio tapes, 
        including interactive forms of such products and 
        services, or other technologies.

[SEC. 14102. APPLICABILITY OF THIS TITLE.

  [Parts B, C, D, E, and F of this title do not apply to title 
VIII of this Act.

[SEC. 14103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED 
                    SCHOOLS.

  [For purposes of any competitive program under this Act, a 
consortia of schools operated by the Bureau of Indian Affairs, 
a school operated under a contract or grant with the Bureau of 
Indian Affairs in consortia with another contract or grant 
school or tribal or community organization, or a Bureau of 
Indian Affairs school in consortia with an institution of 
higher education, a contract or grant school and 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. 14201. 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 
        such agency for State administration under one or more 
        of the programs specified under paragraph (2) if such 
        State educational agency can demonstrate that the 
        majority of such agency's resources come from non-
        Federal sources.
          [(2) Applicability.--This section applies to programs 
        under title I, those covered programs described in 
        subparagraphs (C), (D), (E), and (F) of section 
        14101(10), and administrative funds under section 
        308(c) of the Goals 2000: Educate America Act.
  [(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 the 
        programs included in the consolidation under subsection 
        (a), such as--
                  [(A) the coordination of such 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; and
                  [(E) technical assistance under programs 
                specified in subsection (a)(2).
  [(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 such administration.
  [(e) Unused Administrative Funds.--If a State educational 
agency does not use all of the funds available to such agency 
under this section for administration, such agency may use such 
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 standards 
and assessments, a State educational agency may consolidate the 
amounts made available to such agency for such purposes under 
title I of this Act and title III of the Goals 2000: Educate 
America Act.

[SEC. 14202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

  [A State educational agency that also serves as a local 
educational agency, in such agency's applications or plans 
under this Act, shall describe how such agency will eliminate 
duplication in the conduct of administrative functions.

[SEC. 14203. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.

  [(a) General Authority.--In accordance with regulations of 
the Secretary, a local educational agency, with the approval of 
its State educational agency, may consolidate and use for the 
administration of one or more covered programs for any fiscal 
year not more than the percentage, established in each covered 
program, of the total amount available to the local educational 
agency under such covered programs.
  [(b) State Procedures.--Within one year from the date of 
enactment of the Improving America's Schools Act of 1994, 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 covered 
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 may use such consolidated funds for the administration 
of covered programs and for the uses described in section 
14201(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 covered program, to 
account for costs relating to the administration of covered 
programs included in the consolidation.

[SEC. 14204. ADMINISTRATIVE FUNDS STUDIES.

  [(a) Federal Funds Study.--
          [(1) In general.--The Secretary shall conduct a study 
        of the use of funds under this Act for the 
        administration, by State and local educational 
        agencies, of all covered programs, including the 
        percentage of grant funds used for such purpose in all 
        covered programs.
          [(2) State data.--Beginning in fiscal year 1995 and 
        each succeeding fiscal year thereafter, each State 
        educational agency which receives funds under title I 
        shall submit to the Secretary a report on the use of 
        title I funds for the State administration of 
        activities assisted under title I. Such report shall 
        include the proportion of State administrative funds 
        provided under section 1603 that are expended for--
                  [(A) basic program operation and compliance 
                monitoring;
                  [(B) statewide program services such as 
                development of standards and assessments, 
                curriculum development, and program evaluation; 
                and
                  [(C) technical assistance and other direct 
                support to local educational agencies and 
                schools.
          [(3) Federal funds report.--The Secretary shall 
        complete the study conducted under this section not 
        later than July 1, 1997, and shall submit to the 
        President and the appropriate committees of the 
        Congress a report regarding such study within 30 days 
        of the completion of such study.
          [(4) Results.--Based on the results of the study 
        described in subsection (a)(1), which may include 
        collection and analysis of the data under paragraph (2) 
        and section 410(b) of the Improving America's Schools 
        Act of 1994, the Secretary shall--
                  [(A) develop a definition of what types of 
                activities constitute the administration of 
                programs under this Act by State and local 
                educational agencies; and
                  [(B) within one year of the completion of 
                such study, promulgate final regulations or 
                guidelines regarding the use of funds for 
                administration under all programs, including 
                the use of such funds on a consolidated basis 
                and limitations on the amount of such funds 
                that may be used for administration where such 
                limitation is not otherwise specified in law.
  [(b) General Administrative Funds Study and Report.--Upon the 
date of completion of the pilot model data system described in 
section 410(b) of the Improving America's Schools Act of 1994, 
the Secretary shall study the information obtained through the 
use of such data system and other relevant information, as well 
as any other data systems which are in use on such date that 
account for administrative expenses at the school, local 
educational agency, and State educational agency level, and 
shall report to the Congress not later than July 1, 1997, 
regarding--
          [(1) the potential for the reduction of 
        administrative expenses at the school, local 
        educational agency, and State educational agency 
        levels;
          [(2) the potential usefulness of such data system to 
        reduce such administrative expenses;
          [(3) any other methods which may be employed by 
        schools, local educational agencies or State 
        educational agencies to reduce administrative expenses 
        and maximize the use of funds for functions directly 
        affecting student learning; and
          [(4) if appropriate, steps which may be taken to 
        assist schools, local educational agencies and State 
        educational agencies to account for and reduce 
        administrative expenses.

[SEC. 14205. 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 IX of this Act, and the education 
        for homeless children and youth program under subtitle 
        B of title VII of the Stewart B. McKinney Homeless 
        Assistance Act, the amounts allotted to the Department 
        of the Interior under those programs.
          [(2) Agreement.--(A) 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) The agreement shall--
                  [(i) set forth the plans of the Secretary of 
                the Interior for the use of the amount 
                transferred, the steps to be taken to achieve 
                the National Education Goals, and performance 
                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 such department's costs related to the 
administration of the funds transferred under this section.

[SEC. 14206. AVAILABILITY OF UNNEEDED PROGRAM FUNDS.

  [(a) Unneeded Program Funds.--With the approval of its State 
educational agency, a local educational agency that determines 
for any fiscal year that funds under a covered program (other 
than part A of title I) are not needed for the purpose of that 
covered program, may use such funds, not to exceed five percent 
of the total amount of such local educational agency's funds 
under that covered program, for the purpose of another covered 
program.
  [(b) Coordination of Services.--A local educational agency, 
individual school, or consortium of schools may use a total of 
not more than five percent of the funds such agency, school, or 
consortium, respectively, receives under this Act for the 
establishment and implementation of a coordinated services 
project in accordance with the requirements of title XI of this 
Act.

 [PART C--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND LOCAL PLANS 
                            AND APPLICATIONS

[SEC. 14301. PURPOSE.

  [It is the purpose of this part to improve teaching and 
learning by encouraging greater cross-program coordination, 
planning, and service delivery under this Act and enhanced 
integration of programs under this Act with educational 
activities carried out with State and local funds.

[SEC. 14302. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.

  [(a) General Authority.--
          [(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 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) the additional programs described in 
                paragraph (2).
          [(2) Additional programs.--A State educational agency 
        may also include in its consolidated State plan or 
        consolidated State application--
                  [(A) the Even Start program under part B of 
                title I;
                  [(B) the Prevention and Intervention Programs 
                for Youth Who Are Neglected, Delinquent, or At-
                Risk of Dropping Out under part D of title I;
                  [(C) programs under the Goals 2000: Educate 
                America Act;
                  [(D) programs under the School-to-Work 
                Opportunities Act of 1994; and
                  [(E) such other programs as the Secretary may 
                designate.
          [(3) Consolidated applications and plans.--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 subsection (b)(1), the Secretary shall 
        establish, for each program under the 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, and 
        other materials that are absolutely necessary for the 
        consideration of the consolidated State plan or 
        consolidated State application.

[SEC. 14303. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
                    ASSURANCES.

  [(a) Assurances.--A State educational agency that submits a 
consolidated State plan or consolidated State application under 
this Act, whether separately or under section 14302, shall have 
on file with the Secretary a single set of assurances, 
applicable to each program for which such 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, in a nonprofit 
        private agency, institution, or organization, or in an 
        Indian tribe if the law authorizing the program 
        provides for assistance to such entities; and
          [(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will 
        administer such 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 such 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 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 has afforded a reasonable 
        opportunity for public comment on the plan or 
        application and has considered such comment.
  [(b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

[SEC. 14304. ADDITIONAL COORDINATION.

  [(a) Additional Coordination.--In order to explore ways for 
State educational agencies to reduce administrative burdens and 
promote the coordination of the education services of this Act 
with other health and social service programs administered by 
such agencies, the Secretary is directed to seek agreements 
with other Federal agencies (including the Departments of 
Health and Human Services, Justice, Labor and Agriculture) for 
the purpose of establishing procedures and criteria under which 
a State educational agency would submit a consolidated State 
plan or consolidated State application that meets the 
requirements of the covered programs.
  [(b) Report.--The Secretary shall report to the relevant 
committees 6 months after the date of enactment of the 
Improving America's Schools Act of 1994.

[SEC. 14305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

  [(a) General Authority.--A local educational agency receiving 
funds under more than one covered program may submit plans or 
applications to the State educational agency under such 
programs on a consolidated basis.
  [(b) Required Consolidated Plans or Applications.--A State 
educational agency that has submitted and had approved a 
consolidated State plan or application under section 14302 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 such programs.
  [(c) Collaboration.--A State educational agency 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. 14306. 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 14304, 
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 such entities; and
          [(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will 
        administer such 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 such applicant under each such program;
          [(6) the applicant will--
                  [(A) make reports to the State educational 
                agency and the Secretary as may be necessary to 
                enable such agency and the Secretary to perform 
                their duties under each such program; and
                  [(B) maintain such records, provide such 
                information, and afford access to the records 
                as the State educational agency or the 
                Secretary may find necessary 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 has considered such 
        comment.
  [(b) GEPA Provision.--Section 442 of the General Education 
Provisions Act does not apply to programs under this Act.

[SEC. 14307. RELATIONSHIP OF STATE AND LOCAL PLANS TO PLANS UNDER THE 
                    GOALS 2000: EDUCATE AMERICA ACT.

  [(a) State Plans.--
          [(1) In general.--Each State plan submitted under the 
        following programs shall be integrated with each other 
        and the State's improvement plan, if any, either 
        approved or being developed, under title III of the 
        Goals 2000: Educate America Act, the School-to-Work 
        Opportunities Act of 1994, and the Carl D. Perkins 
        Vocational and Technical Education Act of 1998:
                  [(A) Part A of title I (helping disadvantaged 
                children meet high standards).
                  [(B) Part C of title I (education of 
                migratory children).
                  [(C) Part D of title I (education of 
                neglected, delinquent, and at-risk youth).
                  [(D) Title II (professional development).
                  [(E) Title IV (safe and drug-free schools).
                  [(F) Title VI (innovative education program 
                strategies).
                  [(G) Subpart 4 of part A of title IX (Indian 
                education).
          [(2) Special rule.--Notwithstanding any other 
        provision of this Act, if a requirement relating to a 
        State plan referred to in paragraph (1) is already 
        satisfied by the approved State improvement plan for 
        such State under title III of the Goals 2000: Educate 
        America Act, the State plan referred to in paragraph 
        (1) need not separately address that requirement.
          [(3) Amendment.--Any State plan referred to in 
        paragraph (1) may, if necessary, be submitted as an 
        amendment to the State improvement plan for such State 
        under title III of the Goals 2000: Educate America Act.
  [(b) Local Plans.--
          [(1) In general.--Each local educational agency plan 
        submitted under the following programs shall be 
        integrated with each other and its local improvement 
        plan, if any, either approved or being developed, under 
        title III of the Goals 2000: Educate America Act:
                  [(A) Part A of title I (helping disadvantaged 
                children meet high standards).
                  [(B) Title II (professional development).
                  [(C) Title IV (safe and drug-free schools).
                  [(D) Subpart 4 of part A of title IX (Indian 
                education).
                  [(E) Subpart 1 of part A of title VII 
                (bilingual education).
                  [(F) Title VI (innovative education program 
                strategies).
                  [(G) Part C of title VII (emergency immigrant 
                education).
          [(2) Plan of operation.--Each plan of operation 
        included in an application submitted by an eligible 
        entity under part B of title I (Even Start) shall be 
        consistent with, and promote the goals of, the State 
        and local improvement plans, either approved or being 
        developed, under title III of the Goals 2000: Educate 
        America Act or, if those plans are not approved or 
        being developed, with the State and local plans under 
        sections 1111 and 1112.
          [(3) Special rule.--Notwithstanding any other 
        provision of this Act, if a requirement relating to a 
        local plan referred to in paragraph (1) is already 
        satisfied by the local educational agency's approved 
        local improvement plan under title III of the Goals 
        2000: Educate America Act, the local plan referred to 
        in paragraph (1) need not separately address that 
        requirement.
          [(4) Submission.--Any local plan referred to in 
        paragraph (1) may, if necessary, be submitted as an 
        amendment to the local educational agency's improvement 
        plan under title III of the Goals 2000: Educate America 
        Act.

                            [PART D--WAIVERS

[SEC. 14401. 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 which desires a 
        waiver shall submit a waiver request to the Secretary 
        that--
                  [(A) identifies the Federal programs affected 
                by such requested waiver;
                  [(B) describes which Federal requirements are 
                to be waived and how the waiving of such 
                requirements will--
                          [(i) increase the quality of 
                        instruction for students; or
                          [(ii) improve the academic 
                        performance of students;
                  [(C) if applicable, describes which similar 
                State and local requirements will be waived and 
                how the waiving of such requirements will 
                assist the local educational agencies, Indian 
                tribes or schools, as appropriate, to achieve 
                the objectives described in clauses (i) and 
                (ii) of subparagraph (B);
                  [(D) describes specific, measurable 
                educational improvement goals and expected 
                outcomes for all affected students;
                  [(E) describes the methods to be used to 
                measure progress in meeting such goals and 
                outcomes; and
                  [(F) 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--
                          [(i)(I) by local educational agencies 
                        (on behalf of such agencies and 
                        schools) to State educational agencies; 
                        and
                          [(II) by State educational agencies 
                        (on behalf of, and based upon the 
                        requests of, local educational 
                        agencies) to the Secretary; or
                          [(ii) by Indian tribes (on behalf of 
                        schools operated by such tribes) to the 
                        Secretary.
          [(3) General requirements.--(A) In the case of a 
        waiver request submitted by a State educational agency 
        acting in 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 that the applying agency customarily 
                provides similar notices and information to the 
                public.
          [(B) In the case of a waiver request submitted by a 
        local educational agency that receives funds under this 
        Act--
                  [(i) such request shall be reviewed by the 
                State educational agency and be accompanied by 
                the comments, if any, of such 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 that such 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 part 
        C of title X; or
          [(9) the prohibitions regarding--
                  [(A) State aid in section 14502; or
                  [(B) use of funds for religious worship or 
                instruction in section 14507.
  [(d) Duration and Extension of Waiver.--
          [(1) In general.--Except as provided in paragraph 
        (2), the duration of a waiver approved by the Secretary 
        under this section may be for a period not to exceed 
        three 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 recipients to 
                carry out the activities for which the waiver 
                was requested and the waiver has contributed to 
                improved student performance; and
                  [(B) such 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 such waiver by 
                such agency or by schools;
                  [(B) describes how schools continued to 
                provide assistance to the same populations 
                served by the programs for which waivers are 
                requested; and
                  [(C) evaluates the progress of such agency 
                and of schools in improving the quality of 
                instruction or the academic performance 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 such 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 such waiver by 
                schools operated by such tribe; and
                  [(B) evaluates the progress of such schools 
                in improving the quality of instruction or the 
                academic performance of students.
          [(4) Report to congress.--Beginning in fiscal year 
        1997 and each subsequent year, the Secretary shall 
        submit to the Committee on Education and Labor of the 
        House of Representatives and the Committee on Labor and 
        Human Resources 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 such waivers--
                          [(i) increased the quality of 
                        instruction to students; or
                          [(ii) improved the academic 
                        performance of students.
  [(f) Termination of Waivers.--The Secretary shall terminate a 
waiver under this section if the Secretary determines 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) 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 such notice to State educational agencies, 
interested parties, including educators, parents, students, 
advocacy and civil rights organizations, and the public.

                      [PART E--UNIFORM PROVISIONS

[SEC. 14501. 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 such agency 
and the State with respect to the provision of free public 
education by such agency for the preceding fiscal year was not 
less than 90 percent of such 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 to which a local educational agency fails to 
        meet the requirement of subsection (a) by falling below 
        90 percent of both the combined fiscal effort per 
        student and aggregate expenditures (using the measure 
        most favorable to such local agency).
          [(2) Special rule.--No such lesser amount shall be 
        used for computing the effort required under subsection 
        (a) for subsequent years.
  [(c) Waiver.--The Secretary may waive the requirements of 
this section if the Secretary determines that such 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. 14502. 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 such State for 
State aid, or the amount of State aid, with respect to free 
public education of children.

[SEC. 14503. 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 a State educational agency, local 
        educational agency, or educational service agency or 
        consortium of such agencies receiving financial 
        assistance under a program specified in subsection (b), 
        who are enrolled in private elementary and secondary 
        schools in such agency or consortium, such agency or 
        consortium shall, after timely and meaningful 
        consultation with appropriate private school officials, 
        provide such children and their teachers or other 
        educational personnel, on an equitable basis, special 
        educational services or other benefits under such 
        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 such 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 such program.
          [(4) Expenditures.--Expenditures for educational 
        services and other benefits provided under this section 
        to eligible private school children, their teachers, 
        and other educational personnel serving such 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.--Such agency or 
        consortium described in subsection (a)(1) may provide 
        such 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) part C of title I (migrant education);
                  [(B) title II (other than section 2103 and 
                part D of such title);
                  [(C) title VII;
                  [(D) title III (other than part B of such 
                title) (Star Schools); and
                  [(E) part A of title IV (other than section 
                4114).
          [(2) Definition.--For the purposes of this section, 
        the term ``eligible children'' means children eligible 
        for services under a program described in paragraph 
        (1).
  [(c) Consultation.--
          [(1) In general.--To ensure timely and meaningful 
        consultation, a State educational agency, local 
        educational agency, educational service agency or 
        consortium of such agencies 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 and where the services will be 
                provided; and
                  [(D) how the services will be assessed.
          [(2) Timing.--Such consultation shall occur before 
        the agency or consortium makes any decision that 
        affects the opportunities of eligible private school 
        children, teachers, and other educational personnel to 
        participate in programs under this Act.
          [(3) Discussion required.--Such consultation shall 
        include a discussion of service delivery mechanisms 
        that the agency or consortium 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 such 
        funds, shall be in a public agency for the uses and 
        purposes provided in this Act, and a public agency 
        shall administer such funds and property.
          [(2) Provision of services.--(A) The provision of 
        services under this section shall be provided--
                  [(i) by employees of a public agency; or
                  [(ii) through contract by such public agency 
                with an individual, association, agency, or 
                organization.
          [(B) In the provision of such services, such 
        employee, person, 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.
          [(C) Funds used to provide services under this 
        section shall not be commingled with non-Federal funds.

[SEC. 14504. STANDARDS FOR BY-PASS.

  [If, by reason of any provision of law, a State educational 
agency, local educational agency, educational service agency or 
consortium of such agencies is prohibited from providing for 
the participation in programs of children enrolled in, or 
teachers or other educational personnel from, private 
elementary and secondary schools, on an equitable basis, or if 
the Secretary determines that such agency or consortium has 
substantially failed or is unwilling to provide for such 
participation, as required by section 14503, the Secretary 
shall--
          [(1) waive the requirements of that section for such 
        agency or consortium; and
          [(2) arrange for the provision of equitable services 
        to such children, teachers, or other educational 
        personnel through arrangements that shall be subject to 
        the requirements of this section and of sections 14503, 
        14505, and 14506.

[SEC. 14505. 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 
individuals and organizations concerning violations of section 
14503 by a State educational agency, local educational agency, 
educational service agency, or consortium of such agencies. 
Such individual or organization shall submit such complaint to 
the State educational agency for a written resolution by the 
State educational agency within a reasonable period of time.
  [(b) Appeals to the Secretary.--Such 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. Such appeal shall be accompanied by a copy of 
the State educational agency's resolution, and a complete 
statement of the reasons supporting the appeal. The Secretary 
shall investigate and resolve each such appeal not later than 
120 days after receipt of the appeal.

[SEC. 14506. BY-PASS DETERMINATION PROCESS.

  [(a) Review.--
          [(1) In general.--(A) The Secretary shall not take 
        any final action under section 14504 until the State 
        educational agency, local educational agency, 
        educational service agency, or consortium of such 
        agencies affected by such 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) 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 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) If such affected 
        agency or consortium is dissatisfied with the 
        Secretary's final action after a proceeding under 
        paragraph (1), such agency or consortium may, within 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.
          [(B) A copy of the petition shall be forthwith 
        transmitted by the clerk of the court to the Secretary.
          [(C) 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 this action, 
        as provided in section 2112 of title 28, United States 
        Code.
          [(3) Findings of fact.--(A) 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.
          [(B) Such new or modified findings of fact shall 
        likewise be conclusive if supported by substantial 
        evidence.
          [(4) Jurisdiction.--(A) Upon the filing of such 
        petition, the court shall have jurisdiction to affirm 
        the action of the Secretary or to set such action 
        aside, in whole or in part.
          [(B) 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 such agency or consortium 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 such agency 
or consortium to meet the applicable requirements of section 
14503 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 such 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 Improving America's Schools Act of 
1994 shall remain in effect to the extent the Secretary 
determines that such determination is consistent with the 
purpose of this section.

[SEC. 14507. 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. 14508. APPLICABILITY TO HOME SCHOOLS.

  [Nothing in this Act shall be construed to affect home 
schools.

[SEC. 14509. GENERAL PROVISION REGARDING NONRECIPIENT 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.

[SEC. 14510. SCHOOL PRAYER.

  [Any State or local educational agency that is adjudged by a 
Federal court of competent jurisdiction to have willfully 
violated a Federal court order mandating that such local 
educational agency remedy a violation of the constitutional 
right of any student with respect to prayer in public schools, 
in addition to any other judicial remedies, shall be ineligible 
to receive Federal funds under this Act until such time as the 
local educational agency complies with such order. Funds that 
are withheld under this section shall not be reimbursed for the 
period during which the local educational agency was in willful 
noncompliance.

[SEC. 14511. 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 such instruction is age 
        appropriate and includes the health benefits of 
        abstinence; or
          [(4) to operate a program of condom 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 schools' 
        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
          [(4) create any legally enforceable right.

[SEC. 14512. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND CONTROL.

  [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.

[SEC. 14513. REPORT.

  [The Secretary shall report to the Congress not later than 
180 days after the date of enactment of the Improving America's 
Schools Act of 1994 regarding how the Secretary shall ensure 
that audits conducted by Department employees of activities 
assisted under this Act comply with changes to this Act made by 
the Improving America's Schools Act of 1994, particularly with 
respect to permitting children with similar educational needs 
to be served in the same educational settings, where 
appropriate.

[SEC. 14514. REQUIRED PARTICIPATION PROHIBITED.

  [Notwithstanding any other provision of law, no State shall 
be required to participate in any program under the Goals 2000: 
Educate America Act, or to have content standards or student 
performance standards approved or certified under such Act, in 
order to receive assistance under this Act.

                        [PART F--GUN POSSESSION

[SEC. 14601. GUN-FREE REQUIREMENTS.

  [(a) Short Title.--This section may be cited as the ``Gun-
Free Schools Act of 1994''.
  [(b) Requirements.--
          [(1) In general.--Except as provided in paragraph 
        (3), each State receiving Federal funds under this Act 
        shall have in effect a State law requiring local 
        educational agencies to expel from school for a period 
        of not less than one year a student who is determined 
        to have brought a weapon to a school under the 
        jurisdiction of local educational agencies in that 
        State, except that such State law shall allow the chief 
        administering officer of such local educational agency 
        to modify such expulsion requirement for a student on a 
        case-by-case basis.
          [(2) Construction.--Nothing in this title 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) Special rule.--(A) Any State that has a law in 
        effect prior to the date of enactment of the Improving 
        America's Schools Act of 1994 which is in conflict with 
        the not less than one year expulsion requirement 
        described in paragraph (1) shall have the period of 
        time described in subparagraph (B) to comply with such 
        requirement.
          [(B) The period of time shall be the period beginning 
        on the date of enactment of the Improving America's 
        Schools Act and ending one year after such date.
          [(4) Definition.--For the purpose of this section, 
        the term ``weapon'' means a firearm as such term is 
        defined in section 921 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 
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
          [(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 weapons concerned.
  [(e) Reporting.--Each State shall report the information 
described in subsection (c) to the Secretary on an annual 
basis.
  [(f) Report to Congress.--Two years after the date of 
enactment of the Improving America's Schools Act of 1994, the 
Secretary shall report to Congress if any State is not in 
compliance with the requirements of this title.

[SEC. 14602. POLICY REGARDING CRIMINAL JUSTICE SYSTEM REFERRAL.

  [(a) In General.--No funds shall be made available under 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.
  [(b) Definitions.--For the purpose of this section, the terms 
``firearm'' and ``school'' have the same meaning given to such 
terms by section 921(a) of title 18, United States Code.

[SEC. 14603. DATA AND POLICY DISSEMINATION UNDER IDEA.

  [The Secretary shall--
          [(1) widely disseminate the policy of the Department 
        in effect on the date of enactment of the Improving 
        America's Schools Act of 1994 with respect to 
        disciplining children with disabilities;
          [(2) collect data on the incidence of children with 
        disabilities (as such term is defined in section 
        602(a)(1) of the Individuals With Disabilities 
        Education Act) engaging in life threatening behavior or 
        bringing weapons to schools; and
          [(3) submit a report to Congress not later than 
        January 31, 1995, analyzing the strengths and problems 
        with the current approaches regarding disciplining 
        children with disabilities.

                          [PART G--EVALUATIONS

[SEC. 14701. EVALUATIONS.

  [(a) Evaluations.--
          [(1) In general.--Except as provided in paragraph 
        (2), the Secretary is authorized to reserve not more 
        than 0.50 percent of the amount appropriated to carry 
        out each program authorized under this Act--
                  [(A) to carry out comprehensive evaluations 
                of categorical programs and demonstration 
                projects, and studies of program effectiveness, 
                under this Act, and the administrative impact 
                of such programs on schools and local 
                educational agencies in accordance with 
                subsection (b);
                  [(B) to evaluate the aggregate short- and 
                long-term effects and cost efficiencies across 
                Federal programs under this Act and related 
                Federal preschool, elementary and secondary 
                programs under other Federal law; and
                  [(C) to strengthen the usefulness of grant 
                recipient evaluations for continuous program 
                progress through improving the quality, 
                timeliness, efficiency, and utilization of 
                program information on program performance.
          [(2) Special rule.--(A) Paragraph (1) shall not apply 
        to any program under title I.
          [(B) If funds are made available under any program 
        assisted under this Act (other than a program under 
        title I) for evaluation activities, then the Secretary 
        shall reserve no additional funds pursuant to the 
        authority in subsection (a)(1) to evaluate such 
        program, but shall coordinate the evaluation of such 
        program with the national evaluation described in 
        subsection (b).
  [(b) National Evaluations.--
          [(1) In general.--The Secretary shall use the funds 
        made available under subsection (a) to carry out--
                  [(A) independent studies of categorical and 
                demonstration programs under this Act and the 
                administrative impact of such programs on 
                schools and local educational agencies, that 
                are coordinated with research supported through 
                the Office of Educational Research and 
                Improvement, using rigorous methodological 
                designs and techniques, including longitudinal 
                designs, control groups, and random assignment, 
                as appropriate, to determine--
                          [(i) the success of such programs in 
                        meeting the measurable goals and 
                        objectives, through appropriate 
                        targeting, quality services, and 
                        efficient administration, and in 
                        contributing to achieving the National 
                        Education Goals, with a priority on 
                        assessing program impact on student 
                        performance;
                          [(ii) the short- and long-term 
                        effects of program participation on 
                        program participants, as appropriate;
                          [(iii) the cost and efficiency of 
                        such programs;
                          [(iv) to the extent feasible, the 
                        cost of serving all students eligible 
                        to be served under such programs;
                          [(v) specific intervention strategies 
                        and implementation of such strategies 
                        that, based on theory, research and 
                        evaluation, offer the promise of 
                        improved achievement of program 
                        objectives;
                          [(vi) promising means of identifying 
                        and disseminating effective management 
                        and educational practices;
                          [(vii) the effect of such programs on 
                        school and local educational agencies' 
                        administrative responsibilities and 
                        structure, including the use of local 
                        and State resources, with particular 
                        attention to schools and agencies 
                        serving a high concentration of 
                        disadvantaged students; and
                          [(viii) the effect of Federal 
                        categorical programs at the elementary 
                        and secondary levels on the 
                        proliferation of State categorical 
                        education aid programs and regulations, 
                        including an evaluation of the State 
                        regulations that are developed in 
                        response to Federal education laws;
                  [(B) in collaboration with the national 
                assessment conducted pursuant to section 1601, 
                a comprehensive evaluation of how the Federal 
                Government has assisted the States to reform 
                their educational systems through the various 
                education laws enacted during the 103d 
                Congress, which evaluation shall--
                          [(i) encompass the changes made in 
                        Federal programs pursuant to the 
                        Improving America's Schools Act of 1994 
                        as well as in any other law enacted 
                        during the 103d Congress that amended a 
                        Federal program assisting preschool, 
                        elementary, or secondary education;
                          [(ii) encompass new initiatives such 
                        as initiatives under the Goals 2000: 
                        Educate America Act, and the School-to-
                        Work Opportunities Act of 1994, and be 
                        coordinated with evaluations of such 
                        Acts;
                          [(iii) include a comprehensive review 
                        of the programs developed under the 
                        Acts described in clauses (i) and (ii) 
                        to determine such programs' overall 
                        effect on--
                                  [(I) the readiness of 
                                children for schooling;
                                  [(II) the improvement in 
                                educational attainment of 
                                students in elementary and 
                                secondary education; and
                                  [(III) the improvement in 
                                skills needed by students to 
                                obtain employment or pursue 
                                further education upon 
                                completion of secondary school 
                                or further education;
                          [(iv) include a comprehensive review 
                        of the programs under the Acts 
                        described in clauses (i) and (ii) to 
                        determine such programs' overall 
                        effect--
                                  [(I) on school reform efforts 
                                undertaken by States;
                                  [(II) on efforts by States to 
                                adopt educational standards to 
                                improve schooling for all 
                                children, to align their 
                                curricula, teacher training, 
                                and assessments with such 
                                standards, and to bring 
                                flexibility to the rules 
                                governing how education is to 
                                be provided; and
                                  [(III) on student populations 
                                that have been the traditional 
                                beneficiaries of Federal 
                                assistance in order to 
                                determine whether such 
                                population's educational 
                                attainment has been improved as 
                                a result of such programs;
                          [(v) evaluate how the National 
                        Assessment Governing Board, the 
                        Advisory Council on Education 
                        Statistics, and the National Education 
                        Goals Panel coordinate, interact, or 
                        duplicate efforts to assist the States 
                        in reforming the educational systems of 
                        States; and
                          [(vi) include a review of the 
                        programs under the Acts described in 
                        clauses (i) and (ii) in such detail as 
                        the Secretary deems appropriate, and 
                        may involve cooperation with other 
                        Federal departments and agencies in 
                        order to incorporate evaluations and 
                        recommendations of such departments and 
                        agencies; and
                  [(C) a study of the waivers granted under 
                section 14401, which study shall include--
                          [(i) data on the total number of 
                        waiver requests that were granted and 
                        the total number of such requests that 
                        were denied, disaggregated by the 
                        statutory or regulatory requirement for 
                        which the waivers were requested; and
                          [(ii) an analysis of the effect of 
                        waivers on categorical program 
                        requirements and other flexibility 
                        provisions in this Act, the School-to-
                        Work Opportunities Act of 1994, and the 
                        Goals 2000: Educate America Act, on 
                        improvement in educational achievement 
                        of participating students and on school 
                        and local educational agency 
                        administrative responsibilities, 
                        structure, and resources based on an 
                        appropriate sample of State educational 
                        agencies, local educational agencies, 
                        schools, and tribes receiving waivers.
                  [(D) a study of the waivers provided under 
                section 1114 to support schoolwide programs 
                which shall include--
                          [(i) the extent to which schoolwide 
                        programs are meeting the intent and 
                        purposes of any program for which 
                        provisions were waived; and
                          [(ii) the extent to which the needs 
                        of all students are being served by 
                        such programs particularly students who 
                        would be eligible for assistance under 
                        any provisions waived.
          [(2) Independent panel.--The Secretary shall appoint 
        an independent panel to review the plan for the 
        evaluation described in paragraph (1), to advise the 
        Secretary on such evaluation's progress, and to 
        comment, if the panel so wishes, on the final report 
        described in paragraph (3).
          [(3) Report.--The Secretary shall submit a final 
        report on the evaluation described in this subsection 
        by January 1, 1998, to the Committee on Education and 
        Labor of the House of Representatives and to the 
        Committee on Labor and Human Resources of the Senate.
  [(c) Recipient Evaluation and Quality Assurance 
Improvement.--The Secretary is authorized to provide guidance, 
technical assistance, and model programs to recipients of 
assistance under this Act to strengthen information for quality 
assurance and performance information feedback at State and 
local levels. Such guidance and assistance shall promote the 
development, measurement and reporting of valid, reliable, 
timely and consistent performance indicators within a program 
in order to promote continuous program improvement. Nothing in 
this subsection shall be construed to establish a national data 
system.

                     [PART H--SENSE OF THE CONGRESS

[SEC. 14801. SENSE OF CONGRESS TO INCREASE THE TOTAL SHARE OF FEDERAL 
                    SPENDING ON EDUCATION.

  [(a) Findings.--The Congress finds that--
          [(1) in order to increase our Nation's standard of 
        living and to increase the number of good jobs, the 
        United States must increase its productivity and 
        ability to compete in the international marketplace by 
        improving the educational level of our workforce;
          [(2) although efforts are being made to establish 
        higher educational standards and goals, there is a 
        substantial shortage of resources to meet such 
        standards and goals;
          [(3) States and local communities are finding it 
        increasingly difficult to meet ever higher educational 
        standards and goals, and States will not be able to 
        fund needed changes without Federal help to reach such 
        standards and goals;
          [(4) the Federal Government has established many 
        educational programs but failed to provide adequate 
        funding for such programs, for example one such program 
        provides education to our Nation's disabled students 
        and was established with a promise of 40 percent 
        Federal funding but currently receives only eight 
        percent Federal funding;
          [(5) the annual shortfall in Federal education 
        programs is approximately half of the promised funding;
          [(6) many needed educational improvements will not 
        need Federal funds, however, other suggested changes 
        such as lengthened school years, better pay, after-
        school activities, mentoring for students at risk, 
        programs for gifted students, and replacing substandard 
        buildings, will require substantial Federal assistance; 
        and
          [(7) the Federal contribution to education is less 
        than two percent of the total Federal budget, and in 
        order to make education a national priority, the total 
        percentage of Federal educational funding should be 
        increased by one percent each year over the next eight 
        years to reach 10 percent of the total Federal budget.
  [(b) Sense of the Congress.--It is the sense of the Congress 
that the total share of the Federal spending on education 
should increase by at least one percent each year until such 
share reaches 10 percent of the total Federal budget.

[SEC. 14802. SENSE OF CONGRESS; REQUIREMENT REGARDING NOTICE.

  [(a) Purchase of American-Made Equipment and Products.--In 
the case of any equipment or products that may be authorized to 
be purchased with financial assistance provided under this Act, 
it is the sense of the Congress that entities receiving such 
assistance should, in expending the assistance, purchase only 
American-made equipment and products.
  [(b) Notice to Recipients of Assistance.--In providing 
financial assistance under this Act, the head of each Federal 
agency shall provide to each recipient of the assistance a 
notice describing the statement made in subsection (a) by the 
Congress.]
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DEPARTMENT OF EDUCATION ORGANIZATION ACT

           *       *       *       *       *       *       *

                            TABLE OF CONTENTS

     * * * * * * *

                TITLE II--ESTABLISHMENT OF THE DEPARTMENT

Sec. 201. Establishment.
     * * * * * * *
[Sec. 209. Office of Bilingual Education and Minority Languages 
          Affairs.]
Sec. 209. Office of Educational Services for Limited English Proficient 
          Children.
     * * * * * * *
[Sec. 216. Office of Bilingual Education and Minority Languages 
          Affairs.]
Sec. 216. Office of Educational Services for Limited English Proficient 
          Children.
     * * * * * * *

TITLE II--ESTABLISHMENT OF THE DEPARTMENT

           *       *       *       *       *       *       *

     [office of bilingual education and minority languages affairs]

 office of educational services for limited english proficient children

  Sec. 209. There shall be in the Department an [Office of 
Bilingual Education and Minority Languages Affairs] Office of 
Educational Services for Limited English Proficient Children, 
to be administered by a [Director of Bilingual Education and 
Minority Languages Affairs,] Director of Educational Services 
for Limited English Proficient Children, who shall be appointed 
by the Secretary. The Director shall coordinate the 
administration of bilingual education programs by the 
Department and shall consult with the Secretary concerning 
policy decisions affecting bilingual education and minority 
languages affairs. The Director shall report directly to the 
Secretary, and shall perform such additional functions as the 
Secretary may prescribe.

           *       *       *       *       *       *       *

[SEC. 216. OFFICE OF BILINGUAL EDUCATION AND MINORITY LANGUAGES 
                    AFFAIRS.]

SEC. 216. OFFICE OF EDUCATIONAL SERVICES FOR LIMITED ENGLISH PROFICIENT 
                    CHILDREN.

  (a) Establishment.--There shall be, in the Department, an 
[Office of Bilingual Education and Minority Languages Affairs] 
Office of Educational Services for Limited English Proficient 
Children through which the Secretary shall carry out functions 
relating to bilingual education.

           *       *       *       *       *       *       *

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PART B OF TITLE XI OF THE EDUCATION AMENDMENTS OF 1978

           *       *       *       *       *       *       *

               [PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

[SEC. 1121. STANDARDS FOR THE BASIC EDUCATION OF INDIAN CHILDREN IN 
                    BUREAU OF INDIAN AFFAIRS SCHOOLS.

  [(a)(1) The purpose of the standards developed under this 
section shall be to afford Indian students being served by a 
Bureau funded school with the same opportunities as all other 
students to achieve the National Education Goals embodied in 
the Goals 2000: Educate America Act. Consistent with the 
provisions of this section and section 1131, the Secretary 
shall take such actions as are necessary to coordinate 
standards developed and implemented under this section with 
those in the State improvement plans developed and implemented 
pursuant to the Goals 2000: Educate America Act for the States 
in which each Bureau funded school operates. In developing and 
reviewing such standards and coordination, the Secretary shall 
utilize the findings and recommendations of the panel 
established in section 315(b)(4) of such Act.
  [(2) The Secretary shall take immediate steps to encourage 
school boards of Bureau funded schools to engage their 
communities in adopting declarations of purposes of education 
in their communities, analyzing the implications of such 
purposes for their schools, and determining how such purposes 
may be made to motivate students and faculties and otherwise 
animate their schools by May 1, 1995. Such declarations shall 
represent the aspirations of a community for the kinds of 
persons such community wants its children to increasingly 
become, and shall include such purposes as assuring that all 
learners are becoming accomplished in ways important to 
themselves and respected by their parents and communities, 
shaping worthwhile and satisfying lives for themselves, 
exemplifying the best values of the community and humankind, 
and becoming increasingly effective in shaping the character 
and quality of the world all learners share.
  [(b) Within 18 months of the publication of the voluntary 
national content standards described in section 203(a)(2) of 
the Goals 2000: Educate America Act, the Secretary, in 
consultation with the Secretary of Education and Indian 
organizations and tribes, shall carry out or cause to be 
carried out by contract with an Indian organization such 
studies and surveys, making the fullest use possible of other 
existing studies, surveys, and plans, as are necessary to 
establish and revise standards for the basic education of 
Indian children attending Bureau funded schools. Such studies 
and surveys shall take into account factors such as academic 
needs, local cultural differences, type and level of language 
skills, geographic isolation, and appropriate teacher-student 
ratios for such children, and shall be directed toward the 
attainment of equal educational opportunity for such children.
  [(c)(1) The Secretary shall revise the minimum academic 
standards published in the Federal Register of September 9, 
1985 (50 Fed. Reg. 174) for the basic education of Indian 
children in accordance with the purpose described in subsection 
(a) and the findings of the studies and surveys described in 
subsection (b), and shall publish such revised standards in the 
Federal Register for the purpose of receiving comments from the 
tribes and other interested parties. Within 21 months of the 
date of enactment of the Improving America's Schools Act of 
1994, the Secretary shall establish final standards, distribute 
such standards to all the tribes and publish such final 
standards in the Federal Register. The Secretary shall revise 
such final standards periodically as necessary. Prior to any 
revision of such final standards, the Secretary shall 
distribute such proposed revision to all the tribes, and 
publish such proposed revision in the Federal Register, for the 
purpose of receiving comments from the tribes and other 
interested parties.
  [(2) The standards described in paragraph (1) shall apply to 
Bureau schools, and subject to subsection (f), to contract or 
grant schools, and may also serve as a model for educational 
programs for Indian children in public schools. In establishing 
and revising such standards, the Secretary shall take into 
account the special needs of Indian students and the support 
and reinforcement of the specific cultural heritage of each 
tribe.
  [(d) The Secretary shall provide alternative or modified 
standards in lieu of the standards established under subsection 
(c), where necessary, so that the programs of each school shall 
be in compliance with the minimum standards required for 
accreditation of schools in the State where the school is 
located.
  [(e) A tribal governing body, or the local school board so 
designated by the tribal governing body, shall have the local 
authority to waive, in part or in whole, the standards 
established under subsection (c) and (d), where such standards 
are deemed by such body to be inappropriate. The tribal 
governing body or designated school board shall, within 60 days 
thereafter, submit to the Secretary a proposal for alternative 
standards that take into account the specific needs of the 
tribe's children. Such revised standards shall be established 
by the Secretary unless specifically rejected by the Secretary 
for good cause and in writing to the affected tribes or local 
school board, which rejection shall be final and unreviewable.
  [(f)(1) The Secretary, through contracting and grant-making 
procedures, shall assist school boards of contract or grant 
schools in the implementation of the standards established 
under subsections (c) and (d), if the school boards request 
that such standards, in part or in whole, be implemented. At 
the request of a contract or grant school board, the Secretary 
shall provide alternative or modified standards for the 
standards established under subsections (c) and (d) to take 
into account the needs of the Indian children and the contract 
or grant school.
  [(2) Within 1 year of the date of the enactment of the Indian 
Education Technical Amendments Act of 1985, 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 or grant schools. Such standards shall yield data 
results comparable to those used by Bureau schools.
  [(g) Subject to subsections (e) and (f), the Secretary shall 
begin to implement the standards established under this section 
immediately upon the date of their establishment. Not later 
than January 1, 1995, and at each time thereafter 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 Bureau 
schools and contract or grant schools up to the level required 
by the applicable standards established under this section. 
Such plan shall include detailed information on the status of 
each school's educational program in relation to the applicable 
standards established under this section, specific cost 
estimates for meeting such standards at each school, and 
specific time lines for bringing each school up to the level 
required by such standards.
  [(h)(1) Except as specifically required by statute, no school 
or peripheral dormitory operated by the Bureau on or after 
January 1, 1992, may be closed or consolidated or have its 
program substantially curtailed unless done according to the 
requirements of this subsection, except that, in those cases 
where the tribal governing body, or the local school board 
concerned (if so designated by the tribal governing body), 
requests closure or consolidation, the requirements of this 
subsection shall not apply. The requirements of this subsection 
shall not apply when a temporary closure, consolidation, or 
substantial curtailment is required by plant conditions which 
constitute an immediate hazard to health and safety.
  [(2) The Secretary shall, by regulation, promulgate standards 
and procedures for the closing, consolidation, or substantial 
curtailment of Bureau schools in accordance with the 
requirements of this subsection.
  [(3) Whenever closure, transfer to any other 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 Interior, the affected tribe, tribal 
governing body, and designated local school board, will be 
notified as soon as such consideration or review begins, kept 
fully and currently informed, and afforded an opportunity to 
comment with respect to such consideration or review. When a 
formal decision is made to close, transfer to any other 
authority, consolidate, or substantially curtail a school, the 
affected tribe, tribal governing body, and designated local 
school board shall be notified at least 6 months prior to the 
end of the school year preceding the proposed closure date. 
Copies of any such notices and information shall be transmitted 
promptly to the Congress and published in the Federal Register.
  [(4) The Secretary may terminate, contract, transfer to any 
other authority, or consolidate or substantially curtail the 
operation or facilities of--
          [(A) any Bureau funded school that is operated on or 
        after April 1, 1987,
          [(B) any program of such a school that is operated on 
        or after April 1, 1987, or
          [(C) any school board of a school operated under a 
        grant under the Tribally Controlled Schools Act of 
        1988,
only if the tribal governing body approves such action.
  [(i) There are authorized to be appropriated such sums as may 
be necessary, for academic program costs, in order to bring all 
Bureau schools and contract or grant schools up to the level 
required by the applicable standards established under this 
section.
  [(j)(1) All Bureau funded schools shall include within their 
curriculum a program of instruction relating to alcohol and 
substance abuse prevention and treatment. The Assistant 
Secretary shall provide the technical assistance necessary to 
develop and implement such a program for students in 
kindergarten and grades 1 through 12, at the request of--
          [(A) any Bureau school (subject to the approval of 
        the school board of such school);
          [(B) any school board of a school operating under a 
        contract entered into under the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450 et seq.); or
          [(C) any school board of a school operating under a 
        grant under the Tribally Controlled Schools Act of 
        1988.
  [(2) In schools operated directly by the Bureau, the 
Secretary shall provide for--
          [(A) accurate reporting of all incidents relating to 
        alcohol and substance abuse; and
          [(B) individual student crisis intervention.
  [(3) The programs requested under paragraph (1) shall be 
developed in consultation with the Indian tribe that is to be 
served by such program and health personnel in the local 
community of such tribe.
  [(4) Schools requesting program assistance under this 
subsection are encouraged to involve family units and, where 
appropriate, tribal elders and Native healers in such 
instructions.
  [(k) For purposes of this section, 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.
  [(l)(1)(A)(i) The Secretary shall only consider the factors 
described in subparagraphs (B) and (C) in reviewing--
          [(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) The Secretary shall give consideration to all of the 
factors under clause (i), but none of the applications under 
clause (i) may be denied based primarily upon the geographic 
proximity of public education.
  [(B) The Secretary shall consider the following factors 
relating to the program that is the subject of an application 
described in subparagraph (A):
          [(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 or, 
        in the case of a Bureau funded school, of projected 
        needs analysis done either by a tribe or by Bureau 
        personnel.
          [(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.
  [(C) The Secretary shall consider with respect to 
applications described in subparagraph (A) the following 
factors relating to all the educational services available at 
the time the application is considered:
          [(i) Geographic and demographic factors in the 
        affected areas.
          [(ii) Adequacy and comparability of programs already 
        available.
          [(iii) Consistency of available programs with tribal 
        educational codes or tribal legislation on education.
          [(iv) The history and success of these services for 
        the proposed population to be served, as determined 
        from all factors and not just standardized examination 
        performance.
  [(2)(A) The Secretary shall make a determination of whether 
to approve any application described in paragraph (1)(A) by not 
later than the date that is 180 days after the day on which 
such application is submitted to the Secretary.
  [(B) If the Secretary fails to make the determination 
described in subparagraph (A) with respect to an application by 
the date described in subparagraph (A), the application shall 
be treated as having been approved by the Secretary.
  [(3)(A) Any application described in paragraph (1)(A) may be 
submitted to the Secretary only if--
          [(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) Each application described in paragraph (1)(A)--
          [(i) shall provide information concerning each of the 
        factors described in paragraph (1)(B), and
          [(ii) may provide information concerning the factors 
        described in paragraph (1)(C).
  [(4) Whenever the Secretary makes a determination to deny 
approval of any application described in paragraph (1)(A), the 
Secretary shall--
          [(A) state the objections in writing to the applicant 
        by not later than the date that is 180 days after the 
        day on which the application is submitted to the 
        Secretary,
          [(B) provide assistance to the applicant to overcome 
        stated objections, and
          [(C) provide the applicant a hearing, under the same 
        rules and regulations pertaining to the Indian Self-
        Determination and Education Assistance Act, and an 
        opportunity to appeal the objections raised by the 
        Secretary.
  [(5)(A) Except as otherwise provided in this paragraph, the 
action which is the subject of any application described in 
paragraph (1)(A) that is approved by the Secretary shall become 
effective with the commencement of the academic year succeeding 
the fiscal year in which the application is approved, or at an 
earlier date determined by the Secretary.
  [(B) If an application is treated as having been approved by 
the Secretary by reason of paragraph (2)(B), the action that is 
the subject of the application shall become effective on the 
date that is 18 months after the date on which the application 
is submitted to the Secretary, or at an earlier date determined 
by the Secretary.

[SEC. 1122. NATIONAL CRITERIA FOR DORMITORY SITUATIONS.

  [(a) The Secretary, in consultation with the Secretary of the 
Department of Education, and in consultation with Indian 
organizations and tribes, shall conduct or cause to be 
conducted by contract with an Indian organization, a study of 
the costs applicable to boarding arrangements for Indian 
students provided in Bureau schools, and contract or grant 
schools, for the purpose of establishing national criteria for 
such dormitory situations. Such criteria shall include adult-
child ratios, needs for counselors (including special needs 
related to off-reservation boarding arrangements), space, and 
privacy.
  [(b) Not later than January 1, 1996, the Secretary shall 
propose such criteria, and shall distribute such proposed 
criteria to the tribes and publish such proposed criteria in 
the Federal Register for the purpose of receiving comments from 
the tribes and other interested parties. Within 18 months of 
the date of the enactment of the Improving America's Schools 
Act of 1994, the Secretary shall establish final criteria, 
distribute such final criteria to all the tribes, and publish 
such final criteria in the Federal Register. The Secretary 
shall revise such final criteria periodically as necessary. Any 
revisions to the criteria established under this section shall 
be developed subject to requirements established under section 
1131.
  [(c) The Secretary shall begin to implement the criteria 
established under this section immediately upon the date of the 
establishment of such criteria. Not later than January 1, 1997, 
and at each time thereafter 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 Bureau contract boarding schools up to the 
criteria established under this section. Such plan shall 
include predictions for the relative need for each boarding 
school in the future, detailed information on the status of 
each school in relation to the criteria established under this 
section, specific cost estimates for meeting such criteria at 
each school, and specific time lines for bringing each school 
up to the level required by such criteria.
  [(d)(1) The criteria established under this section may be 
waived in the same manner as the standards provided under 
section 1121(c) may be waived under section 1121(e).
  [(2) No school in operation on or before January 1, 1987 
(regardless of compliance or noncompliance with the criteria 
established under this section) may be closed, transferred to 
another authority, consolidated or have its program 
substantially curtailed for failure to meet the criteria.
  [(e) There are authorized to be appropriated such sums as may 
be necessary in order to bring each school up to the level 
required by the criteria established under this section.

[SEC. 1123. REGULATIONS.

  [(a) The provisions of part 32 of title 25 of the 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. Accordingly, such 
provisions may be altered only by means of an amendment to this 
subsection that is contained in an Act or joint resolution 
which is enacted into law. To the extent that such provisions 
of part 32 do not conform with this Act or any statutory 
provision of law enacted before the date of enactment of this 
Act, the provisions of this Act and the provisions of such 
other statutory law shall govern.
  [(b) The provisions of parts 31, 33, 36, 39, 42, and 43 of 
title 25 of the Code of Federal Regulations, as in effect on 
January 1, 1987, shall be applied by the Federal Government and 
shall not, before July 1, 1989, be amended, revoked, or altered 
in any manner. No officer or employee of the executive branch 
shall have the authority to issue any other regulations, prior 
to July 1, 1989, that supersede, supplement, or otherwise 
affect the provisions of such parts. To the extent that the 
provisions of such parts do not conform with this Act or any 
statutory provision of law enacted before the date of enactment 
of this Act, the provisions of this Act and the provisions of 
such other statutory law shall govern.
  [(c) After June 30, 1989, no regulation prescribed for the 
application of any program provided under this title shall 
become effective unless--
          [(1) the regulation has been published as a proposed 
        regulation in the Federal Register,
          [(2) an opportunity of not less than 90 days has been 
        afforded the public to comment on the published 
        proposed regulation, and
          [(3) the regulation has, after such period for public 
        comment, been published in the Federal Register as a 
        final regulation.
  [(d) For purposes of this section, the term ``regulation'' 
means any rules, regulations, guidelines, interpretations, 
orders, or requirements of general applicability prescribed by 
any officer or employee of the executive branch.

[SEC. 1124. SCHOOL BOUNDARIES.

  [(a) The Secretary shall, in accordance with this section, 
establish separate geographical attendance areas for each 
Bureau school.
  [(b)(1) Except as provided in paragraph (2), on or after July 
1, 1985, no attendance area shall be changed 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 (i) afforded 
at least six months notice of the intention of the Bureau to 
change or establish such attendance area, and (ii) given the 
opportunity to propose alternative boundaries. 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.
  [(2) In any case where there is more than 1 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, 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) In any case where there is only 1 Bureau operated 
program located on an Indian reservation, the attendance area 
for the program shall be the boundaries of the reservation 
served, and those students residing near the reservation shall 
also receive services from such program.
  [(d) The Bureau shall include in the regulations the 
requirement that each appropriate education line officer 
coordinate and consult with the affected tribes and relevant 
school boards in the establishment of such geographic 
boundaries.

[SEC. 1125. FACILITIES CONSTRUCTION.

  [(a) The Secretary shall immediately begin to bring all 
schools, dormitories, and other facilities operated by the 
Bureau or under contract or grant with the Bureau in connection 
with the education of Indian children into compliance with all 
applicable Federal, tribal, or State health and safety 
standards, whichever provide greater protection (except that 
the tribal standards to be applied shall be no greater than any 
otherwise applicable Federal or State standards), with section 
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and with 
the Americans with Disabilities Act of 1990, except that 
nothing in this section shall require termination of the 
operations of any facility which does not comply with such 
provisions and which is in use on the date of enactment of the 
Improving America's Schools Act of 1994.
  [(b) By January 1, 1996, and at each time thereafter 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 such facilities 
into compliance with such standards. Such plan shall include 
detailed information on the status of each facility's 
compliance with such standards, specific cost estimates for 
meeting such standards at each school, and specific time lines 
for bringing each school into compliance with such standards.
  [(c) Within six months of the date of enactment of this Act, 
the Secretary shall submit to the appropriate committees of 
Congress, and publish in the Federal Register, the system used 
to establish priorities for school construction projects. At 
the time any budget request for school construction is 
presented, the Secretary shall publish in the Federal Register 
and submit with the budget request the current list of all 
school construction priorities.
  [(d)(1) A Bureau school may be closed or consolidated, and 
the programs of a Bureau school may be substantially curtailed, 
by reason of plant conditions that constitute an immediate 
hazard to health and safety only if a health and safety officer 
of the Bureau determines that such conditions exist at the 
Bureau school.
  [(2)(A) In making determinations described in paragraph (1) 
before July 1, 1989, health and safety officers of the Bureau 
shall use the health and safety guidelines of the Bureau that 
were in effect on January 1, 1988.
  [(B)(i) If--
          [(I) the Secretary fails to publish in the Federal 
        Register in final form before July 1, 1989, and
          [(II) action described in paragraph (1) is taken 
        after June 30, 1989, and before the date on which such 
        regulations are published in final form in the Federal 
        Register by reason of the condition of any plant,
an inspection of the condition of such plant shall be conducted 
by an appropriate tribal, county, municipal, or State health 
and safety officer to determine whether conditions at such 
plant constitute an immediate hazard to health and safety. Such 
inspection shall be completed by not later than the date that 
is 30 days after the date on which the action described in 
paragraph (1) is taken.
  [(ii) The inspection required under clause (i) shall be 
conducted by a health and safety officer designated jointly by 
the Secretary and the tribes affected by the action described 
in paragraph (1). If the Secretary and such tribes are unable 
to agree on the designation of the health and safety officer, 
the Secretary shall designate the health and safety officer and 
shall provide notice of such designation to each of such tribes 
before the inspection is conducted by such officer.
  [(iii) If the health and safety officer conducting an 
inspection of a plant required under clause (i) determines that 
conditions at the plant do not constitute an immediate hazard 
to health and safety, any consolidation or curtailment that was 
made by reason of conditions at the plant shall immediately 
cease and any school closed by reason of conditions at the 
plant shall be reopened immediately.
  [(3) If--
          [(A) a Bureau school is temporarily closed or 
        consolidated, or the programs of a Bureau school are 
        substantially curtailed, by reason of plant conditions 
        that constitute an immediate hazard to health and 
        safety, and
          [(B) the Secretary estimates that the closure, 
        consolidation, or curtailment will be more than 1 year 
        in duration,
the Secretary shall submit to the Congress, by not later than 
the date that is 6 months after the date on which the closure, 
consolidation, or curtailment is initiated, a report which sets 
forth the reasons for such temporary actions and the actions 
the Secretary is taking to eliminate the conditions that 
constitute the hazard.
  [(e) There are authorized to be appropriated such sums as may 
be necessary to carry out subsection (a).

[SEC. 1126. BUREAU OF INDIAN AFFAIRS EDUCATION FUNCTIONS.

  [(a) 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.
  [(b) The Director of the Office shall direct and supervise 
the operations of all personnel directly and substantially 
involved with provision of education services by the Bureau, 
including school or institution custodial or maintenance 
personnel. The Assistant Secretary for Indian Affairs shall 
provide for the adequate coordination between the affected 
Bureau Offices and the Office to facilitate the consideration 
of all contract functions relating to education. Except as 
required by section 1129, nothing in this Act shall be 
construed to require the provision of separate support services 
for Indian education.
  [(c) Education personnel who are under the direction and 
supervision of the Director of the Office in accordance with 
the first sentence of subsection (b) 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, and curriculum.
  [(d)(1) The Assistant Secretary shall submit in the annual 
Budget a plan--
          [(A) for school facilities to be constructed under 
        the system required by section 1125(c);
          [(B) for establishing priorities among projects and 
        for the improvement and repair of education facilities, 
        which together shall form the basis for the 
        distribution of appropriated funds; and
          [(C) including a 5-year plan for capital 
        improvements.
  [(2)(A) 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 education facility;
          [(ii) similar treatment of all Bureau funded schools;
          [(iii) a notice of an allocation of appropriated 
        funds from the Director of the Office directly to the 
        appropriate education line officers; and
          [(iv) a system for the conduct of routine preventive 
        maintenance.
  [(B) The appropriate education line officers shall make 
arrangements for the maintenance of education facilities with 
the local supervisors of the Bureau maintenance personnel who 
are under the authority of the agency superintendent or area 
directors, respectively. 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 part 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. Subject to 
the requirements of subsection (b) of this section, nothing in 
this Act shall be construed to require the provision of 
separate operations and maintenance personnel for the Office.
  [(3) The requirements of this subsection shall be implemented 
not later than July 1, 1995.
  [(e) Notwithstanding any other provision of law, the Director 
shall promulgate guidelines for the establishment of mechanisms 
for the acceptance of gifts and bequests for the use of, and 
benefit of, particular schools or designated Bureau operated 
education programs, including, where appropriate, the 
establishment and administration of trust funds. When a Bureau 
operated program is the beneficiary of such a gift or bequest, 
the Director shall make provisions for monitoring its use, and 
shall report to the appropriate committees of Congress the 
amount and terms of such gift or bequest, the use to which such 
gift or bequest is put, and any positive results achieved by 
such action.
  [(f) For the purpose of this section the term ``functions'' 
includes powers and duties.

[SEC. 1127. ALLOTMENT FORMULA.

  [(a)(1) The Secretary shall establish, by regulation adopted 
in accordance with section 1139, 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 size 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;
                  [(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 boarding arrangements, 
                where determined necessary by a tribal 
                governing body or designated local school 
                board;
                  [(vii) costs associated with greater lengths 
                of service by educational personnel; and
                  [(viii) special programs 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; 
        and
          [(D) such other relevant factors as the Secretary 
        determines are appropriate.
  [(2) Upon the establishment of the standards required by 
sections 1121 and 1122, the Secretary shall revise the formula 
established under this subsection to reflect the cost and 
funding standards so established. Prior to January 1, 1996, the 
Secretary shall review the formula established under this 
section and shall take such steps as may be necessary to 
increase the availability of counseling services for students 
in off-reservation boarding schools and other Bureau operated 
residential facilities. Concurrent with such action, the 
Secretary shall review the standards established under section 
1121 to be certain that adequate provision is made for parental 
notification regarding, and consent for, such counseling 
services.
  [(b) Notwithstanding any other provisions 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)(1) For fiscal year 1990, and for each subsequent fiscal 
year, the Secretary shall adjust the formula established under 
subsection (a) to--
          [(A) use 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) consider 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; and
          [(C) take into account the provision of residential 
        services on a less than 9-month basis at a school when 
        the school board and supervisor of the school determine 
        that a less than 9-month basis will be implemented for 
        the school year involved.
  [(2)(A) The Secretary shall reserve for national school board 
training 0.2 percent of the funds appropriated for each fiscal 
year for distribution under this section. Such training shall 
be conducted through the same organizations through which, and 
in the same manner in which, the training was conducted in 
fiscal year 1992, except that the contracts for distribution of 
such funds shall require that such funds be distributed by the 
recipient organizations in a manner that assures the same pro 
rata share is made available for training for each school board 
in the system. If the contract for such training is not awarded 
before May 1 of each fiscal year, the contract under which such 
training was provided for the fiscal year preceding such fiscal 
year shall be renewed by the Secretary for such fiscal year. 
The agenda for the training sessions shall be established by 
the school boards through their regional or national 
organizations.
  [(B) For each year in which the Secretary uses a weighted 
unit formula established under subsection (a) to fund Bureau 
schools, a Bureau school which generates less than 168 weighted 
units shall receive an additional 2 weighted units to defray 
school board activities.
  [(C) 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) $5,000, or
          [(ii) the lesser of--
                  [(I) $15,000, or
                  [(II) 1 percent of such allotted funds,
for school board activities for such school, including and 
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.
  [(3) The Secretary shall adjust the formula established under 
subsection (a) to use a weighted unit of 2.0 for each eligible 
Indian student that--
          [(A) is gifted and talented, and
          [(B) is enrolled in the school on a full-time basis,
in considering the number of eligible Indian students served by 
the school.
  [(4)(A) The Secretary shall adjust the formula established 
under subsection (a) to use 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.
  [(B) The adjustment required under subparagraph (A) 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 following the 
        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.
  [(d) The Secretary shall reserve from the funds available for 
distribution for each fiscal year under this section an amount 
which, in the aggregate, shall equal 1 percent of the funds 
available for such purpose for that fiscal year. Such funds 
shall be used, at the discretion of the Director of the Office, 
to meet emergencies and unforeseen contingencies affecting the 
education programs funded under this section. Funds reserved 
under this subsection may only be expended for education 
services or programs at a schoolsite (as defined in section 
5204(c)(2) of the Tribally Controlled Schools Act of 1988). 
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. Whenever 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 enacted to meet increased 
pay costs attributable to school level personnel shall be 
distributed under this section.
  [(f) For the purpose of this section, the term ``eligible 
Indian student'' means a student who--
          [(1) is a member of or is at least a \1/4\ degree 
        Indian blood descendant of a member of an Indian tribe 
        which is eligible for the special programs and services 
        provided by the United States through the Bureau to 
        Indians because of their status as Indians, and
          [(2) resides on or near an Indian reservation or 
        meets the criteria for attendance at a Bureau off-
        reservation boarding school.
  [(g)(1) An eligible Indian student may not be charged tuition 
for attendance at a Bureau school or contract or grant school. 
A student attending a Bureau school under paragraph (2)(C) may 
not be charged tuition.
  [(2) 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,
          [(B) the school board consents,
          [(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) a tuition is paid for the student that is not 
        more than that charged by the nearest public school 
        district for out-of-district students, is in addition 
        to the school's allocation under this section.
  [(3) 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 and 
any tuition collected for those students is in addition to 
funding under this section.
  [(h) 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 steps as may be necessary to 
implement this provision immediately.
  [(i) Beginning with academic year 1994-1995, tuition for the 
out-of-State students boarding at the Richfield Dormitory in 
Richfield, Utah, who attend Sevier County high schools in 
Richfield, Utah, shall be paid from the Indian school 
equalization program funds authorized in this section and 
section 1130 at a rate not to exceed the amount per weighted 
student unit for that year for the instruction of such 
students. No additional administrative cost funds shall be 
added to the grant.

[SEC. 1128. ADMINISTRATIVE COST GRANTS.

  [(a)(1) The Secretary shall, subject to the availability of 
appropriated funds, 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 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) 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.
  [(b)(1) 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. The administrative 
cost percentage rate determined under subsection (c) does not 
apply to other programs operated by the tribe or tribal 
organization.
  [(2) 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.
  [(c)(1) 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) The administrative cost percentage rate shall be 
determined to the \1/100\ of a decimal point.
  [(d)(1)(A) 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.
  [(B) 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 subparagraph (A).
  [(2) 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.
  [(3) 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.
  [(4) In applying this section and section 105 of the Indian 
Self-Determination and Education Assistance Act with respect to 
an Indian tribe or tribal organization that--
          [(A) 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
          [(B) operates 1 or more other programs under a 
        contract or grant provided under the Indian Self-
        Determination and Education Assistance Act,
the Secretary shall ensure that the Indian tribe or tribal 
organization is provided with the full amount of the 
administrative costs, and of the indirect costs, that are 
associated with operating the contract or grant school, a 
school operated under the Tribally Controlled Schools Act of 
1988, and 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.
  [(e) For purposes of this section:
          [(1)(A) The term ``administrative cost'' means the 
        costs 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) The term ``administrative cost'' may include--
                  [(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) 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)(A) Except as otherwise provided in this 
        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) 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) The term ``maximum base rate'' means 50 percent.
          [(5) The term ``minimum base rate'' means 11 percent.
          [(6) The term ``standard direct cost base'' means 
        $600,000.
          [(7) The term ``tribal elementary or secondary 
        educational programs'' means all Bureau elementary and 
        secondary functions, together with any other Bureau 
        programs or portions of programs (excluding funds for 
        social services that are appropriated to agencies other 
        than the Bureau and are expended 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.
  [(f)(1) Upon the date of enactment of the Indian Education 
Amendments of 1988, the Secretary shall--
          [(A) conduct such studies as may be needed to 
        establish an empirical basis for determining relevant 
        factors substantially affecting the required 
        administrative costs of tribal elementary and secondary 
        educational 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 (c) 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) 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;
          [(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 substantially to affect the 
        administrative costs and efficiency of each such tribal 
        elementary or secondary educational program studied in 
        order to assure 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) In carrying out the studies required under this 
subsection, the Secretary shall obtain the input of, and afford 
an opportunity to participate to, the Inspector General of the 
Department of the Interior.
  [(4) Determinations described in paragraph (2)(C) shall be 
based on what is pragmatically possible to do at each location 
studied, given prudent management practice, irrespective of 
whether required administrative services were actually or fully 
delivered at these sites, or other services were delivered 
instead, during the period of the study.
  [(5) Upon completion of the studies conducted under paragraph 
(1), but in no case later than October 1, 1989, the Secretary 
shall submit to the Congress a report on the findings of the 
studies, together with determinations based upon such findings 
that would affect the definitions of terms used in the formula 
that is set forth in subsection (c).
  [(6) The Secretary shall include in the Bureau's 
justification for each appropriations request for each fiscal 
year beginning after fiscal year 1989, a projection of the 
overall costs associated with the formula set forth in 
subsection (c) for all tribal elementary or secondary 
educational programs which the Secretary expects to be funded 
in the fiscal year for which the appropriations are sought.
  [(7) 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.
  [(g)(1) There are authorized to be appropriated for each 
fiscal year such sums as may be necessary to carry out this 
section.
  [(2) If the total amount of funds necessary to provide grants 
to tribes and tribal organizations in the amounts determined 
under subsection (b) 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 (b) for such fiscal year by an 
amount that bears the same relationship to such excess as the 
amount of such grant determined under subsection (b) bears to 
the total of all grants determined under subsection (b) for all 
tribes and tribal organizations for such fiscal year.
  [(h)(1) Notwithstanding any other provision of this section, 
the amount of the grants provided under this section for fiscal 
year 1989 shall--
          [(A) in lieu of being determined under subsection 
        (b), be determined for each tribal elementary or 
        secondary educational program on the same basis that 
        indirect costs were determined for such programs for 
        fiscal year 1988, and
          [(B) be subject to the provisions of subsection (d).
  [(2) Notwithstanding any other provision of this section, the 
amount of the grant provided under this section for fiscal year 
1990 with respect to each tribal elementary and secondary 
educational program that was operated by a tribe or tribal 
organization in fiscal year 1989 shall be equal to--
          [(A) if the amount of the grant determined under 
        subsection (b) for fiscal year 1990 with respect to 
        such program exceeds the amount received by the tribe 
        or tribal organization with respect to such program for 
        administrative costs for fiscal year 1988 (or fiscal 
        year 1989 if such program was not operated by the tribe 
        or tribal organization during fiscal year 1988), the 
        sum of--
                  [(i) such amount received, plus
                  [(ii) \1/3\ of the excess of--
                          [(I) such amount determined under 
                        subsection (b), over
                          [(II) such amount received, or
          [(B) if such amount received exceeds such amount 
        determined under subsection (b), the excess of--
                  [(i) such amount received, over
                  [(ii) an amount equal to \1/3\ of the excess 
                of--
                          [(I) such amount received, over
                          [(II) such amount determined under 
                        subsection (b).
  [(3) Notwithstanding any other provision of this section, the 
amount of the grants provided under this section for fiscal 
year 1991 with respect to each tribal elementary and secondary 
educational program that was operated by a tribe or tribal 
organization in fiscal year 1989 shall be equal to--
          [(A) if the amount of the grant determined under 
        subsection (b) for fiscal year 1991 with respect to 
        such program exceeds the amount received by the tribe 
        or tribal organization with respect to such program for 
        administrative costs for fiscal year 1990, the sum of--
                  [(i) such amount received, plus
                  [(ii) \1/2\ of the excess of--
                          [(I) such amount determined under 
                        subsection (b), over
                          [(II) such amount received, or
          [(B) if such amount received exceeds such amount 
        determined under subsection (b), the excess of--
                  [(i) such amount received, over
                  [(ii) an amount equal to \1/2\ of the excess 
                of--
                          [(I) such amount received over,
                          [(II) such amount determined under 
                        subsection (b).
  [(i) The provisions of this section shall also apply to those 
schools operating under the Tribally Controlled Schools Act of 
1988.

[SEC. 1129. DIVISION OF BUDGET ANALYSIS.

  [(a) Within 24 months of the date of enactment of the 
Improving America's Schools Act of 1994, the Secretary shall 
establish within the Office a Division of Budget Analysis 
(hereinafter referred to as the ``Division''). Such Division 
shall be under the direct supervision and control of the 
Director of the Office.
  [(b) The Division shall have the capacity to conduct such 
studies, surveys, or other activities as are necessary to 
gather demographic information on Bureau-funded schools 
(current and future) and project the amount necessary to 
provide Indian students in such schools the educational program 
set forth in this part.
  [(c) The Division shall prepare projections on such amounts, 
along with such other information as the Director of the Office 
shall require, for each fiscal year beginning after October 1, 
1996. The Director of the Office and the Assistant Secretary 
for Indian Affairs shall use such reports when preparing their 
annual budget submissions.

[SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.

  [(a)(1) Within six months after the date of enactment of the 
Improving America's Schools Act of 1994, the Secretary shall 
establish, by regulation adopted in accordance with section 
1139, 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 
under this section may be made available under paragraph (2).
  [(2)(A) For the purpose of affording adequate notice of 
funding available pursuant to the allotments made by section 
1127, amounts appropriated in an appropriation Act for any 
fiscal year shall become available for obligation by the 
affected schools on July 1 of the fiscal year in which such 
amounts are appropriated without further action by the 
Secretary, and shall remain available for obligation through 
the succeeding fiscal year.
  [(B) The Secretary shall, on the basis of the amount 
appropriated in accordance with this paragraph--
          [(i) publish, on July 1 of the fiscal year for which 
        the funds are appropriated, allotments to each affected 
        school made under section 1127 of 85 percent of such 
        appropriation; and
          [(ii) publish, not later than September 30 of such 
        fiscal year, the allotments to be made under section 
        1127 of the remaining 15 percent of such appropriation, 
        adjusted to reflect actual student attendance.
  [(3)(A) Notwithstanding any law or regulation, the supervisor 
of a Bureau school may expend an aggregate of not more than 
$35,000 of the amount allotted the school under section 1127 to 
acquire supplies and equipment for the school without 
competitive bidding if--
          [(i) the cost for any single item purchased does not 
        exceed $10,000;
          [(ii) the school board approves the procurement;
          [(iii) the supervisor certifies that the cost is fair 
        and reasonable;
          [(iv) the documents relating to the procurement 
        executed by the supervisor or other school staff cite 
        this paragraph as authority for the procurement; and
          [(v) the transaction is documented in a journal 
        maintained at the school clearly identifying when the 
        transaction occurred, what was acquired and from whom, 
        the prices paid, the quantities acquired, and any other 
        information the supervisor or school board considers 
        relevant.
  [(B) The Director shall be responsible for determining the 
application of this paragraph, including the authorization of 
specific individuals to carry out this paragraph, and shall be 
responsible for the provision of guidelines on the use of this 
paragraph and adequate training on such guidelines.
  [(4) 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 than 7 percent of the amount of funds 
available for allotment under such section during the preceding 
fiscal year--
          [(A) the Secretary, notwithstanding any other law, 
        may use--
                  [(i) funds appropriated for the operation of 
                any Bureau school that is closed or 
                consolidated, and
                  [(ii) funds appropriated for any program that 
                has been curtailed at any Bureau school,
        to fund allotments made under section 1127, 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) In the case of all Bureau schools, allotted funds shall 
be expended on the basis of local financial plans which shall 
be prepared by the local school supervisor in active 
consultation with the local school board for each school, and 
the local school board for each school shall have the authority 
to ratify, reject, or amend such financial plan, and 
expenditures thereunder, and, on its own determination 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. The supervisor shall provide 
the appropriate union representative of the education employees 
with copies of proposed draft financial plans and all 
amendments or modifications thereto, at the same time such 
copies are submitted to the local school board. The supervisor 
of the school 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. 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 appropriate 
education line officer may, for good cause, overturn the action 
of the local school board. The appropriate line education 
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) Funds for self-determination grants under section 
103(a)(2) of the Indian Self-Determination and Education 
Assistance Act shall not be used for providing technical 
assistance and training in the field of education by the Bureau 
unless such services are provided in accordance with a plan, 
agreed to by the tribe or tribes affected and the Bureau, under 
which control of education programs is intended to be 
transferred to such tribe or tribes within a specific period of 
time negotiated under such agreement. The Secretary may approve 
applications for funding tribal divisions of education and the 
development of tribal codes of education from funds 
appropriated pursuant to section 104(a) of such Act.
  [(d) In the exercise of its authority under this section, a 
local school board may request technical assistance and 
training from the Secretary, and the Secretary shall, to the 
greatest extent possible, provide such services, and make 
appropriate provisions in the budget of the Office for such 
services.
  [(e)(1) 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. Any such program may include activities related to the 
prevention of alcohol and substance abuse. The Assistant 
Secretary of Indian Affairs shall provide for the utilization 
of any such school facility during any summer in which such 
utilization is requested.
  [(2) Notwithstanding any other provision of law, funds 
authorized under the Act of April 16, 1934 (25 U.S.C. 452 et 
seq.) 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) The Assistant Secretary of Indian Affairs, acting 
through the Director of the Office, shall provide technical 
assistance and coordination for any program described in 
paragraph (1) and shall, to the extent possible, 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)(1) From funds allotted to a Bureau school under section 
1127, the Secretary shall, if specifically requested by the 
tribal governing body (within the meaning of section 1121(k)), 
implement any cooperative agreement entered into between the 
tribe, the Bureau school board, and the local public school 
district which meets the requirements of paragraph (2) and 
involves the school. The tribe, the Bureau school board, and 
the local public school district shall determine the terms of 
the agreement. Such agreement may encompass coordination of all 
or any part of the following:
          [(A) Academic program and curriculum, unless the 
        Bureau school is currently accredited by a State or 
        regional accrediting entity and would not continue to 
        be so accredited.
          [(B) Support services, including procurement and 
        facilities maintenance.
          [(C) Transportation.
  [(2) Each agreement entered into pursuant to the authority 
provided in paragraph (1) shall confer a benefit upon the 
Bureau school commensurate with the burden assumed, though this 
requirement shall not be construed so as to require equal 
expenditures or an exchange of similar services.
  [(g) Notwithstanding any other provision of law, where 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) Notwithstanding any other provision of law, funds 
received by a Bureau funded school under this title shall not 
be considered Federal funds for purposes of meeting a matching 
funds requirement in any Federal program.

[SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.

  [(a) It shall be the policy of the Secretary and the Bureau, 
in carrying out the functions of the Bureau, to facilitate 
Indian control of Indian affairs in all matters relating to 
education.
  [(b)(1) All actions under this Act shall be done with active 
consultation with tribes.
  [(2) The consultation required under paragraph (1) 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. During such discussions 
and joint deliberations, interested parties (including tribes 
and school officials) shall be given an opportunity to present 
issues including proposals regarding changes in current 
practices or programs which will be considered for future 
action by the Bureau. All interested parties shall be given an 
opportunity to participate and discuss the options presented or 
to present other alternatives, with the views and concerns of 
the interested parties given effect unless the Secretary 
determines, from information educed or presented by the 
interested parties during 1 or more of the discussions and 
deliberations, that there is a substantial reason for another 
course of action. 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.

[SEC. 1132. EDUCATION PERSONNEL.

  [(a)(1) 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, and removal of civil 
service employees, shall not apply to educators or to education 
positions (as defined in subsection (n)).
  [(2) Paragraph (1) shall take effect 1 year after the date of 
enactment of this Act.
  [(b) Not later than the effective date of subsection (a)(2), 
the Secretary shall prescribe regulations to carry out this 
section. Such regulations shall govern--
          [(1) the establishment of education positions,
          [(2) the establishment of qualifications for 
        educators,
          [(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 length of the school year applicable to 
        education positions described in subsection (n)(1)(A),
          [(10) the leave system for educators, and
          [(11) such other matters as may be appropriate.
  [(c)(1) In prescribing regulations to govern the 
qualifications of educators, the Secretary shall require--
          [(A)(i) that 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; and
          [(ii) that a list of qualified and interviewed 
        applicants for education positions be maintained in the 
        Office from among individuals who have applied at the 
        national level for an education position and who have 
        expressed interest in working in an education position 
        anywhere in the United States;
          [(B) that 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 (d)(2)(A), a determination by a 
        school board that such a person be hired shall be 
        followed by the supervisor; and
          [(C) that it shall not be a prerequisite to the 
        employment of an individual in an education position at 
        the local level that such individual's name appear on 
        the national list maintained pursuant to paragraph 
        (1)(A)(ii) or that such individual has applied at the 
        national level for an education position.
  [(2) 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)(1) In prescribing regulations to govern the appointment 
of educators, the Secretary shall require--
          [(A)(i) that educators employed in a school (other 
        than the supervisor of the school) shall be hired by 
        the supervisor of the school unless there are no 
        qualified applicants available, in which case the 
        vacant position shall be filled at the national level 
        from the list maintained pursuant to subsection 
        (c)(1)(A)(ii);
          [(ii) each school supervisor shall be hired by the 
        education line officer of the agency office of the 
        Bureau in which the school is located; and
          [(iii) educators employed in an agency office of the 
        Bureau shall be hired by the superintendent for 
        education of the agency office;
          [(B) that before an individual is employed in an 
        education position in a school by the supervisor of a 
        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 that subject to paragraph (2), a determination by 
        the school board that such individual should or should 
        not be so employed shall be followed by the supervisor 
        (or with respect to the position of supervisor, by the 
        agency superintendent for education); and
          [(C) that before an individual may be employed in an 
        education position at the agency level, the appropriate 
        agency school board shall be consulted, and that, 
        subject to paragraph (3), a determination by such 
        school board that such individual should or should not 
        be employed shall be followed by the agency 
        superintendent for education.
  [(2)(A) 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. 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, overturn the determination of the local school 
board. 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) 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. 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 Director may, for good cause, overturn the determination of 
the local school board. 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.
  [(3) 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. 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. After reviewing such written appeal and response, 
the Director may, for good cause, overturn the determination of 
the agency school board. 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.
  [(4) 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. If such 
individual is employed at the local level, such individual's 
name shall immediately be forwarded to the Secretary, who 
shall, as soon as possible but in no event in more than 30 
days, ascertain the accuracy of the statement made by such 
individual pursuant to the first sentence of this paragraph. If 
the individual's statement is found to have been false, such 
individual, at the Secretary's discretion, may be disciplined 
or discharged. If the individual had 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.
  [(5) Except as expressly provided, nothing in this section 
shall be construed as conferring upon local school boards, 
authority over, or control of, educators.
  [(e)(1) In prescribing regulations to govern the discharge 
and conditions of employment of educators, the Secretary shall 
require--
          [(A) that procedures be established for the rapid and 
        equitable resolution of grievances of educators;
          [(B) that no educator may be discharged without 
        notice of the reasons therefore and opportunity for a 
        hearing under procedures that comport with the 
        requirements of due process; and
          [(C) educators employed in Bureau schools shall be 
        notified 60 days prior to the end of the school year 
        whether their employment contract will be renewed for 
        the following year.
  [(2) 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. Upon giving notice of 
proposed discharge to an educator, the supervisor involved 
shall immediately notify the local school board for the school 
of such action. A determination by the local school board that 
such educator shall not be discharged shall be followed by the 
supervisor. The supervisor shall have the right to appeal such 
action to the education line officer of the appropriate agency 
office of the Bureau. Upon such an appeal, the agency education 
line officer may, for good cause and in writing to the local 
school board, overturn the determination of the local school 
board with respect to the employment of such individual.
  [(3) Each local school board for a Bureau school shall have 
the right--
          [(A) to recommend to the supervisor of such school 
        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)(1) Notwithstanding any provision of the Indian 
preference laws, such laws shall not apply in the case of any 
personnel action within the purview of this section respecting 
an applicant or employee not entitled to Indian preference if 
each tribal organization concerned grants, in writing, a waiver 
of the application of such laws with respect to such personnel 
action, if such a waiver is in writing deemed to be a necessity 
by the tribal organization, except that this paragraph shall in 
no way relieve the Bureau of the Bureau's responsibility 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) For purposes of this subsection, the term ``tribal 
organization'' means--
          [(A) 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 
        (43 U.S.C. 1602(c); 85 Stat. 688)); or
          [(B) in connection with any personnel action referred 
        to in this subsection, any local school board as 
        defined in section 1146, and which has been delegated 
        by such governing body the authority to grant a waiver 
        under such subsection with respect to such personnel 
        action.
  [(3) The term ``Indian preference laws'' means section 12 of 
the Act of June 18, 1934 (25 U.S.C. 472; 48 Stat. 986) or any 
other provision of law granting a preference to Indians in 
promotions and other personnel actions, except that such term 
shall not be considered to include section 7(b) of the Indian 
Self-Determination and Education Assistance Act (25 U.S.C. 
450e(b)).
  [(g) Subject to the authority of the Office of Personnel 
Management to determine finally the applicability of chapter 51 
of title 5, United States Code, to specific positions and 
employees in the executive branch, the Secretary shall 
determine in accordance with subsection (a)(1) the 
applicability or inapplicability of such chapter to positions 
and employees in the Bureau.
  [(h)(1)(A) Except as otherwise provided in this section, the 
Secretary shall fix the basic compensation or annual salary 
rate for educators and education positions at rates comparable 
to the 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 on the basis of the Federal Wage 
System schedule in effect for the locality.
  [(B) By not later than October 28, 1988, the Secretary shall 
establish, for contracts for the 1991-1992 academic year, and 
thereafter, the rates of basic compensation, or annual salary 
rates, for the positions of teachers and counselors (including 
dormitory counselors and home-living counselors) at the rates 
of basic compensation applicable (on the date of enactment of 
such amendments and thereafter) to comparable positions in 
overseas schools under the Defense Department Overseas Teachers 
Pay and Personnel Practices Act, unless the Secretary 
establishes such rates within such 6-month period through 
collective bargaining with the appropriate union representative 
of the education employees that is recognized by the Bureau.
  [(C) By not later than October 28, 1988, the Secretary shall 
establish the rates of basic compensation or annual salary 
rates for the positions of teachers and counselors (including 
dormitory and home-living counselors)--
          [(i) for contracts for the 1989-1990 academic year, 
        at rates which reflect \1/3\ of the changes in the 
        rates applicable to such positions on April 28, 1988, 
        that must be made to conform the rates to the rates 
        established under subparagraph (B) for such positions 
        for contracts for the 1991-1992 academic year, and
          [(ii) for contracts for the 1990-1991 academic year, 
        at rates which reflect \2/3\ of such changes.
  [(D) The establishment of rates of basic compensation and 
annual salary rates by the Secretary under subparagraphs (B) 
and (C) shall not preclude the use of regulations and 
procedures used by the Bureau before the enactment of the 
Indian Education Amendments of 1988 in making determinations 
regarding promotions and advancements through levels of pay 
that are based on the merit, education, experience, or tenure 
of the educator.
  [(E)(i) Except as provided in clause (ii), the establishment 
of rates of basic compensation and annual salary rates by the 
Secretary under subparagraphs (B) and (C) shall not 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 the election under paragraph (2) of subsection 
(o).
  [(ii) Any individual described in clause (i) may, during the 
5-year period beginning on the date on which the Secretary 
establishes rates of basic compensation and annual salary rates 
under subparagraph (B), make an irrevocable election to have 
the basic compensation rate or annual salary rate of such 
individual determined in accordance with this paragraph.
  [(iii) If an individual makes the election described in 
clause (ii), such election shall not affect the application to 
the individual of the same retirement system and leave system 
that applies to the individual during the fiscal year preceding 
the fiscal year in which such election is made, except that the 
individual must use leave accrued during a contract period by 
the end of that contract period.
  [(F) The President shall include with the budget submitted 
under section 1105 of title 31, United States Code, for each of 
the fiscal years 1990, 1991, and 1992 a written statement by 
the Secretary which specifies--
          [(i) the amount of funds the Secretary needs to pay 
        basic compensation and the annual salaries of educators 
        for such fiscal year, and
          [(ii) the amount of funds the Secretary estimates 
        would be needed to pay basic compensation and the 
        annual salaries of educators for such fiscal year if 
        the amendments made to this paragraph by the Indian 
        Education Amendments of 1988 had not been enacted.
  [(2) Each educator employed in an education position in 
Alaska shall be paid a cost-of-living allowance equal to 25 
percent of the rate of basic compensation to which such 
educator is entitled.
  [(3)(A) The Secretary may pay a postdifferential not to 
exceed 25 percent of the rate of basic compensation, on the 
basis of conditions of environment or work which warrant 
additional pay as a recruitment and retention incentive.
  [(B)(i) Upon 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 1 or more 
post differentials under subparagraph (A) unless the Secretary 
determines for clear and convincing reasons (and advises the 
board in writing of those reasons) that certain of the 
requested post differentials should be disapproved or decreased 
because there is no disparity of compensation for the involved 
employees or positions in the Bureau school, as compared with 
the nearest public school, that is either--
          [(I) at least 5 percent, or
          [(II) less than 5 percent and affects the recruitment 
        or retention of employees at the school.
  [(ii) The request under clause (i) shall be deemed granted as 
requested 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 modification, or 
disapproved by the Secretary.
  [(iii) The Secretary or the supervisor of a Bureau school may 
discontinue or decrease a post differential authorized by 
reason of this subparagraph at the beginning of a school year 
after either--
          [(I) the local school board requests that such 
        differential be discontinued or decreased, or
          [(II) the Secretary or the supervisor 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.
  [(i) Any individual--
          [(1) who on the date of enactment of this Act is 
        holding a position which is determined under subsection 
        (f) to be an education position and who elects under 
        subsection (o)(2) to be covered under the provisions of 
        this section, or
          [(2) who is an employee of the Federal Government or 
        the municipal government of the District of Columbia 
        and is transferred, promoted, or reappointed, without 
        break in service, from a position under a different 
        leave system to an education position,
shall be credited for the purpose of the leave system provided 
under regulations prescribed pursuant to subsection (b)(10), 
with the annual and sick leave to such individual's credit 
immediately before the effective date of such election, 
transfer, promotion, or reappointment.
  [(j) Upon termination of employment with the Bureau, any 
annual leave remaining to the credit of an individual within 
the purview of 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 
prescribed pursuant to subsection (b)(10) shall not be so 
liquidated.
  [(k) 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 prescribed 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 prescribed by the Office of 
Personnel Management.
  [(l) 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.
  [(m) In the case of any educator employed in an education 
position described in subsection (n)(1)(A) who--
          [(1) is employed at the close of a school year,
          [(2) agrees in writing to serve in such a 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 such receipt 
        of additional compensation.
  [(n) For the purpose of this section--
          [(1) The term ``education position'' means a position 
        in the Bureau the duties and responsibilities of 
        which--
                  [(A) are performed on a school-year basis 
                principally in a Bureau school and involve--
                          [(i) classroom or other instruction 
                        or the supervision or direction of 
                        classroom or other instruction;
                          [(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) The term ``educator'' means an individual whose 
        services are required, or who is employed, in an 
        education position.
  [(o)(1) Subsections (a) through (n) of this section apply to 
an educator hired after November 1, 1979 (and to an educator 
who elected application under paragraph (2)) and to the 
position in which such individual is employed. Subject to 
paragraph (2), the enactment of this Act shall not affect the 
continued employment of an individual employed on October 31, 
1979 in an education position, or such individual's right to 
receive the compensation attached to such position.
  [(2) Any individual employed in an education position on 
October 31, 1979, may, not later than November 1, 1983, make an 
irrevocable election to be covered under the provisions of 
subsections (a) through (n) of this section.
  [(p)(1) An educator who was employed in an education position 
on October 31, 1979, who was eligible to make an election under 
paragraph (2) of subsection (o) at that time, and who did not 
make the election under paragraph (2) of subsection (o), 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 
        1130(b) of this Act, 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 1 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
                  [(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) 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.

[SEC. 1133. MANAGEMENT INFORMATION SYSTEM.

  The Secretary shall establish within the Office, within 1 
year after the date of the enactment of the Indian Education 
Amendments of 1984, a computerized management information 
system, which shall provide information to the Office. Such 
information shall include--
          [(1) student enrollment;
          [(2) curriculum;
          [(3) staff;
          [(4) facilities;
          [(5) community demographics;
          [(6) student assessment information; and
          [(7) information on the administrative and program 
        costs attributable to each Bureau program, divided into 
        discreet elements.

[SEC. 1134. BUREAU EDUCATION POLICIES.

  [Within 180 days of the date of enactment of this Act, the 
Secretary shall develop, publish in the Federal Register, and 
submit to all agency and area offices of the Bureau, all tribal 
governments, and the appropriate committees of the Congress, a 
draft set of education policies, procedures, and practices for 
education-related action of the Bureau. The Secretary shall, 
within 1 year of the date of enactment of this Act, provide 
that such uniform policies, procedures, and practices shall be 
finalized and promulgated. Thereafter, such policies, 
procedures, and practices and their periodic revisions, shall 
serve as the foundation for future Bureau actions in education.

[SEC. 1135. UNIFORM EDUCATION PROCEDURES AND PRACTICES.

  [The Secretary shall cause the various divisions of the 
Bureau to formulate uniform procedures and practices with 
respect to such concerns of those divisions as relate to 
education, and shall report such practices and procedures to 
the Congress.

[SEC. 1136. 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.

[SEC. 1137. BIENNIAL REPORT.

  [(a) The Secretary shall submit to each appropriate committee 
of the Congress a detailed biennial report on the state of 
education within the Bureau and any problems encountered in the 
field of education during the 2-year period covered by the 
report. Such report shall contain suggestions for improving the 
Bureau educational system and increasing local Indian control 
of such system. Such report shall also include the current 
status of tribally controlled community colleges. The annual 
budget submission for the Bureau's education programs shall, 
among other things, include--
          [(1) information on the funds provided previously 
        private schools under section 208 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        458d) and recommendations with respect to the future 
        use of such funds;
          [(2) the needs and costs of operation and maintenance 
        of tribally controlled community colleges eligible for 
        assistance under the Tribally Controlled Community 
        College Assistance Act of 1978 (25 U.S.C. 1801 et seq.) 
        and recommendations with respect to meeting such needs 
        and costs; and
          [(3) the plans required by sections 1121(g), 1122(c), 
        and 1125(b), of this Act.
  [(b) The Inspector General of the Department of the Interior 
shall establish a system to ensure that financial and 
compliance audits are conducted of each Bureau school at least 
once in every three years. Audits of Bureau schools shall be 
based upon the extent to which such school has complied with 
its local financial plan under section 1129.

[SEC. 1138. RIGHTS OF INDIAN STUDENTS.

  [Within six months of the date of enactment of this Act, the 
Secretary shall prescribe such rules and regulations as are 
necessary to ensure the constitutional and civil rights of 
Indian students attending Bureau schools, including such 
students' right to privacy under the laws of the United States, 
such students' right to freedom of religion and expression and 
such students' right to due process in connection with 
disciplinary actions, suspensions, and expulsions.

[SEC. 1140. VOLUNTARY SERVICES.

  [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. Nothing in this title shall be construed to 
require Federal employees to work without compensation or to 
allow the use of volunteer services to displace or replace 
Federal employees. 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.

[SEC. 1141. PRORATION OF PAY.

  [(a) 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. 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. 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.
  [(b) During the course of such year the employee may change 
election once.
  [(c) That portion of the employee's pay which would be paid 
between academic school years may be paid in lump sum at the 
election of the employee.
  [(d) For the purposes of this section the terms ``educator'' 
and ``education position'' have the meaning contained in 
paragraphs (1) and (2) of section 1132(n). This section applies 
to those individuals employed under the provisions of section 
1132 of this title or title 5, United States Code.

[SEC. 1142. EXTRACURRICULAR ACTIVITIES.

  [(a) 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. 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. Such stipend shall be paid as 
a supplement to the employee's base pay.
  [(b) If an employee elects not to be compensated through the 
stipend established by this section, the appropriate provisions 
of title 5, United States Code, shall apply.
  [(c) This section applies to all Bureau employees, whether 
employed under section 1132 of this title or title 5, United 
States Code.

[SEC. 1143. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

  [(a) 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)(1) 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) 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 1 tribe that has less than 500 
                members, or
                  [(ii) by 1 or more tribes that have a 
                combined total membership of less than 500 
                members, or
          [(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)(1) A grant may be provided under subsection (a) to a 
tribe, tribal organization, or consortia of tribes and tribal 
organizations only if the tribe, organization or consortia 
submits to the Secretary an application for the grant at such 
time and in such form as the Secretary shall prescribe.
  [(2) Applications submitted under paragraph (1) shall set 
forth the early childhood development program that the 
applicant desires to operate.
  [(d) 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) 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 American 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 
American Indians.
  [(f) The Secretary shall, out of funds appropriated under the 
authority of subsection (g), include in the grants provided 
under subsection (a) amounts for administrative costs incurred 
by the tribe or tribal organization in establishing and 
maintaining the early childhood development program.
  [(g) For the purpose of carrying out the provisions of this 
section, there are authorized to be appropriated $10,000,000 
for fiscal year 1995 and such sums as may be necessary for each 
of the fiscal years 1996, 1997, 1998, and 1999.

[SEC. 1144. TRIBAL DEPARTMENTS OF EDUCATION.

  [(a) Subject to the availability of appropriations, the 
Secretary shall provide grants and technical assistance to 
tribes for the development and operation of tribal departments 
of education for the purpose of planning and coordinating all 
educational programs of the tribe.
  [(b) Grants provided under this section shall--
          [(1) be based on applications from the governing body 
        of the tribe,
          [(2) reflect factors such as geographic and 
        population diversity,
          [(3) facilitate tribal control in all matters 
        relating to the education of Indian children on Indian 
        reservations and on former Indian reservations in 
        Oklahoma,
          [(4) provide for the development of coordinated 
        educational programs on Indian reservations (including 
        all preschool, elementary, secondary, and higher or 
        vocational educational programs funded by tribal, 
        Federal, or other sources) by encouraging tribal 
        administrative support of all Bureau funded educational 
        programs as well as encouraging tribal cooperation and 
        coordination with all educational programs receiving 
        financial support from State agencies, other Federal 
        agencies, or private entities,
          [(5) 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, 
        and
          [(6) otherwise comply with regulations for grants 
        under section 103(a) of the Indian Self-Determination 
        and Educational Assistance Act (25 U.S.C. 450h) that 
        are in effect on the date application for such grants 
        are made.
  [(c)(1) In approving and funding applications for grants 
under this section, the Secretary shall give priority to any 
application that--
          [(A) includes assurances from the majority of Bureau 
        funded schools located within the boundaries of the 
        reservation of 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, including the submission to 
        each applicable agency of a unified application for 
        funding for all of such schools which provides that--
                  [(i) no administrative costs other than those 
                attributable to the individual programs of such 
                schools will be associated with the unified 
                application, and
                  [(ii) the distribution of all funds received 
                under the unified application will be equal to 
                the amount of funds provided by the applicable 
                agency to which each of such schools is 
                entitled under law,
          [(B) includes assurances from the tribal governing 
        body that the tribal department of education funded 
        under this section will administer all contracts or 
        grants (except those covered by the other provisions of 
        this title and the Tribally Controlled Community 
        College Assistance Act of 1978) for education programs 
        administered by the tribe and will coordinate all of 
        the programs to the greatest extent possible,
          [(C) includes assurances for the monitoring and 
        auditing by or through the tribal department of 
        education of all education programs for which funds are 
        provided by contract or grant to ensure that the 
        programs meet the requirements of law, and
          [(D) provides a plan and schedule for--
                  [(i) the assumption over the term of the 
                grant by the tribal department of education of 
                all assets and functions of the Bureau agency 
                office associated with the tribe, insofar as 
                those responsibilities relate to education, and
                  [(ii) the termination by the Bureau of such 
                operations and office at the time of such 
                assumption,
        except that when mutually agreeable between 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.
  [(2) Subject to the availability of appropriated funds, 
grants provided under this section shall be provided for a 
period of 3 years and the grant may, if performance by the 
grantee is satisfactory to the Secretary, be renewed for 
additional 3-year terms.
  [(d) 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.
  [(e) For the purpose of carrying out the provisions of this 
section, there are authorized to be appropriated $2,000,000 for 
fiscal year 1995 and such sums as may be necessary for each of 
the fiscal years 1996, 1997, 1998, and 1999.

[SEC. 1145. PAYMENTS.

  [(a)(1) Except as otherwise provided in this subsection, the 
Secretary shall make payments to grantees under this part in 2 
payments--
          [(A) one payment to be made not later than July 15 of 
        each year in an amount equal to one-half 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) For any school for which no payment 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.
  [(3) 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.
  [(4) The provisions of chapter 39 of title 31, United States 
Code, shall apply to the payments required to be made by 
paragraphs (1), (2), and (3) of this subsection.

[SEC. 1146. DEFINITIONS.

  [For the purpose of this part, unless otherwise specified--
          [(1) the term ``agency school board'' means a body, 
        the members of which are appointed by the school boards 
        of the schools located within such agency, and the 
        number of such members shall be 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;
          [(2) the term ``Bureau'' means the Bureau of Indian 
        Affairs of the Department of the Interior;
          [(3) the term ``Bureau funded school'' means--
                  [(A) a Bureau school;
                  [(B) a contract school; or
                  [(C) a school for which assistance is 
                provided under the Tribally Controlled Schools 
                Act of 1988;
          [(4) 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) the term ``contract or grant school'' means an 
        elementary or secondary school or a dormitory which 
        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 (25 U.S.C. 
        450f, 450h(a), and 458d) or under the Tribally 
        Controlled Schools Act of 1988 (25 U.S.C. 2504);
          [(6) the term ``education line officer'' means 
        education personnel under the supervision of the 
        Director, whether located in central, area, or agency 
        offices;
          [(7) the term ``family literacy services'' has the 
        meaning given such term in section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801);
          [(8) the term ``financial plan'' means a plan of 
        services to be provided by each Bureau school;
          [(9) 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 
        Indian tribes;
          [(10) 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, independent, or other school district located 
        within a State, and includes any State agency which 
        directly operates and maintains facilities for 
        providing free public education;
          [(11) 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 
        in schools serving a substantial number of students 
        from different tribes, the members shall be appointed 
        by the governing bodies of the tribes affected, and the 
        number of such members shall be determined by the 
        Secretary in consultation with the affected tribes;
          [(12) the term ``Office'' means the Office of Indian 
        Education Programs within the Bureau;
          [(13) the term ``Secretary'' means the Secretary of 
        the Interior;
          [(14) the term ``supervisor'' means the individual in 
        the position of ultimate authority at a Bureau school; 
        and
          [(15) the term ``tribe'' means any Indian tribe, 
        band, nation, or other organized group or community, 
        including any Alaska Native village or regional or 
        village corporation as defined in or established 
        pursuant to the Alaska Native Claims Settlement Act (43 
        U.S.C. 1801 et seq.) which is recognized as eligible 
        for the special programs and services provided by the 
        United States to Indians because of their status as 
        Indians.]

               PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

SEC. 1120. FINDING AND POLICY.

  (a) Finding.--Congress finds and recognizes 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.
  (b) Policy.--It is the policy of the United States to work in 
full cooperation with Indian tribes toward the goal of assuring 
that the programs of the Bureau of Indian Affairs funded school 
system are of the highest quality and meet the unique 
educational and cultural needs of Indian children.

SEC. 1121. ACCREDITATION AND STANDARDS FOR THE BASIC EDUCATION OF 
                    INDIAN CHILDREN IN BUREAU OF INDIAN AFFAIRS 
                    SCHOOLS.

  (a) Purpose.--The purpose of the standards implemented under 
this section shall be to afford Indian students being served by 
a school funded by the Bureau of Indian Affairs the same 
opportunities as all other students in the United States to 
achieve the same challenging State academic achievement 
standards expected of all students.
  (b) Studies and Surveys Relating to Standards.--Not later 
than 1 year after the date of the enactment of the No Child 
Left Behind Act of 2001, the Secretary, in consultation with 
the Secretary of Education, consortia of education 
organizations, and Indian organizations and tribes, and making 
the fullest use possible of other existing studies, surveys, 
and plans, shall carry out by contract with an Indian 
organization, studies and surveys to establish and revise 
standards for the basic education of Indian children attending 
Bureau funded schools. Such studies and surveys shall take into 
account factors such as academic needs, local cultural 
differences, type and level of language skills, geographic 
isolation, and appropriate teacher-student ratios for such 
children, and shall be directed toward the attainment of equal 
educational opportunity for such children.
  (c) Revision of Minimum Academic Standards.--
          (1) In general.--Not later than 2 years after the 
        date of the enactment of the No Child Left Behind Act 
        of 2001, the Secretary shall--
                  (A) propose revisions to the minimum academic 
                standards published in the Federal Register on 
                September 9, 1995 (50 Fed. Reg. 174) for the 
                basic education of Indian children attending 
                Bureau funded schools in accordance with the 
                purpose described in subsection (a) and the 
                findings of the studies and surveys conducted 
                under subsection (b);
                  (B) publish such proposed revisions to such 
                standards in the Federal Register for the 
                purpose of receiving comments from the tribes, 
                tribal school boards, Bureau funded schools, 
                and other interested parties; and
                  (C) consistent with the provisions of this 
                section and section 1131, take such actions as 
                are necessary to coordinate standards 
                implemented under this section with the 
                Comprehensive School Reform Plan developed by 
                the Bureau and--
                          (i) with the standards of the 
                        improvement plans for the States in 
                        which any school operated by the Bureau 
                        of Indian Affairs is located; or
                          (ii) in the case where schools 
                        operated by the Bureau are within the 
                        boundaries of reservation land of one 
                        tribe but within the boundaries of more 
                        than one State, with the standards of 
                        the State improvement plan of one such 
                        State selected by the tribe.
          (2) Further revisions.--Not later that 6 months after 
        the close of the comment period, the Secretary shall 
        establish final standards, distribute such standards to 
        all tribes and publish such final standards in the 
        Federal Register. The Secretary shall revise such 
        standards periodically as necessary. Prior to any 
        revision of such final standards, the Secretary shall 
        distribute such proposed revision to all the tribes, 
        and publish such proposed revision in the Federal 
        Register, for the purpose of receiving comments from 
        the tribes and other interested parties.
          (3) Applicability of standards.--Except as provided 
        in subsection (e), the final standards published under 
        paragraph (2) shall apply to all Bureau funded schools 
        not accredited under subsection (f), and may also serve 
        as a model for educational programs for Indian children 
        in public schools.
          (4) Considerations when establishing and revising 
        standards.--In establishing and revising such 
        standards, the Secretary shall take into account the 
        unique needs of Indian students and support and 
        reinforcement of the specific cultural heritage of each 
        tribe.
  (d) Alternative or Modified Standards.--The Secretary shall 
provide alternative or modified standards in lieu of the 
standards established under subsection (c), where necessary, so 
that the programs of each school are in compliance with the 
minimum accreditation standards required for schools in the 
State or region where the school is located.
  (e) Waiver of Standards; Alternative Standards.--A tribal 
governing body, or the local school board so designated by the 
tribal governing body, shall have the local authority to waive, 
in part or in whole, the standards established under 
subsections (c) and (d) if such standards are deemed by such 
body to be inappropriate. The tribal governing body or 
designated school board shall, not later than 60 days after a 
waiver under this subsection, submit to the Secretary 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 Secretary unless 
specifically rejected by the Secretary for good cause and in 
writing to the affected tribes or local school board, which 
rejection shall be final and not subject to review.
  (f) Accreditation and Implementation of Standards.--
          (1) Deadline for meeting standards.--Not later the 
        second academic year after publication of the 
        standards, to the extent necessary funding is provided, 
        all Bureau funded schools shall meet the standards 
        established under subsections (c) and (d) or shall be 
        accredited--
                  (A) 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 are 
                equal to or exceed the accreditation standards 
                of the State or region in which the school is 
                located;
                  (B) by a regional accreditation agency; or
                  (C) by State accreditation standards for the 
                State in which it is located.
          (2) Determination of standards to be applied.--The 
        accreditation type or standards applied for each school 
        shall be determined by the school board of the school, 
        in consultation with the Administrator of the school, 
        provided that in the case where the School Board and 
        the Administrator fail to agree on the type of 
        accreditation and standards to apply, the decision of 
        the school board with the approval of the tribal 
        governing body shall be final.
          (3) Assistance to school boards.--The Secretary, 
        through contracts and grants, shall assist school 
        boards of contract or grant schools in implementation 
        of the standards established under subsections (c) and 
        (d), if the school boards request that such standards, 
        in part or in whole, be implemented.
          (4) 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.
  (g) Annual Plan for Meeting of Standards.--Except as provided 
in subsections (e) and (f), the Secretary shall begin to 
implement the standards established under this section 
immediately upon the date of their establishment. 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 bring all 
Bureau schools and contract or grant schools up to the level 
required by the applicable standards established under this 
section. Such plan shall include detailed information on the 
status of each school's educational program in relation to the 
applicable standards established under this section, 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.
  (h) Closure or Consolidation of Schools.--
          (1) In general.--Except as specifically required by 
        statute, no school or peripheral dormitory operated by 
        the Bureau on or after January 1, 1992, may be closed 
        or consolidated or have its program substantially 
        curtailed unless done according to the requirements of 
        this subsection.
          (2) Exceptions.--This subsection shall not apply--
                  (A) in those cases where the tribal governing 
                body, or the local school board concerned (if 
                so designated by the tribal governing body), 
                requests closure or consolidation; or
                  (B) when a temporary closure, consolidation, 
                or substantial curtailment is required by plant 
                conditions which 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.--Whenever 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 
        Interior, the affected tribe, tribal governing body, 
        and designated local school board, will be notified 
        immediately, kept fully and currently informed, and 
        afforded an opportunity to comment with respect to such 
        consideration or review. When 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 at least 6 months prior to the end of 
        the school year preceding the proposed closure date. 
        Copies of any such notices and information shall be 
        transmitted promptly to the appropriate committees of 
        Congress and published in the Federal Register.
          (5) Report.--The Secretary shall make a report to the 
        appropriate committees of Congress, the affected tribe, 
        and the designated school board describing the process 
        of the active consideration or review referred to in 
        paragraph (4). The report shall include a study of the 
        impact of such action on the student population, 
        identify those students with particular educational and 
        social needs, and ensure that alternative services are 
        available to such students. Such report shall include 
        the 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 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 of 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,
        only if the tribal governing body approves such action.
  (i) Application for Contracts or Grants for Non-Bureau Funded 
Schools or Expansion of Bureau Funded Schools.--
          (1) In general.--(A)(i) The Secretary shall only 
        consider the factors described in subparagraph (B) in 
        reviewing--
                  (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) With respect to applications described in this 
        subparagraph, the Secretary shall give consideration to 
        all the factors described in subparagraph (B), but no 
        such application shall be denied based primarily upon 
        the geographic proximity of comparable public 
        education.
          (B) 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 these 
                services for the proposed population to be 
                served, as determined from all factors, 
                including but not limited to standardized 
                examination performance.
          (2) Determination on application.--(A) The Secretary 
        shall make a determination of whether to approve any 
        application described in paragraph (1)(A) not later 
        than 180 days after such application is submitted to 
        the Secretary.
          (B) If the Secretary fails to make the determination 
        with respect to an application by the date described in 
        subparagraph (A), the application shall be treated a 
        having been approved by the Secretary.
          (3) Requirements for applications.--(A) 
        Notwithstanding paragraph (2)(B), an application 
        described in paragraph (1)(A) may be approved by the 
        Secretary only if--
                  (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) Each application described in paragraph (1)(A) 
        shall provide information concerning each of the 
        factors described in paragraph (1)(B).
          (4) Denial of applications.--Whenever the Secretary 
        makes a determination to deny approval of any 
        application described in paragraph (1)(A), the 
        Secretary shall--
                  (A) state the objections in writing to the 
                applicant not later 180 days after the 
                application is submitted to the Secretary;
                  (B) provide assistance to the applicant to 
                overcome stated objections; and
                  (C) provide the applicant a hearing, under 
                the same rules and regulations pertaining to 
                the Indian Self-Determination and Education 
                Assistance Act and an opportunity to appeal the 
                objections raised by the Secretary.
          (5) Effective date of a subject application.--(A) 
        Except as otherwise provided in this paragraph, the 
        action which is the subject of any application 
        described in paragraph (1)(A) that is approved by the 
        Secretary shall become effective at the beginning of 
        the academic year following the fiscal year in which 
        the application is approved, or at an earlier date 
        determined by the Secretary.
          (B) If an application is treated as having been 
        approved by the Secretary under paragraph (2)(B), the 
        action that is the subject of the application shall 
        become effective on the date that is 18 months after 
        the date on which the application is submitted to the 
        Secretary, or at an earlier date determined by the 
        Secretary.
          (6) Statutory construction.--Nothing in this section 
        shall be read so as to preclude the expansion of grades 
        and related facilities at a Bureau funded school where 
        such expansion and the maintenance of such expansion is 
        occasioned or paid for with non-Bureau funds.
  (j) 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.
  (k) Study on Adequacy of Funds and Formulas.--The Comptroller 
General shall conduct a study, in consultation with Indian 
tribes and local school boards, 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, as well as expenditures for comparable purposes in 
public schools nationally. 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. NATIONAL CRITERIA FOR HOME-LIVING SITUATIONS.

  (a) 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. Such standards shall be implemented in 
Bureau operated schools, and shall serve as minimum standards 
for contract or grant schools. Once established, any revisions 
of such standards shall be developed according to the 
requirements established under section 1138A.
  (b) Implementation.--The Secretary shall implement the 
revised standards established under this section immediately 
upon their completion.
  (c) Plan.--At the time of each annual budget submission for 
Bureau educational services is presented, 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. Such plan shall include a 
statement of the relative needs of each Bureau funded home-
living (dormitory) school, projected future needs of each 
Bureau funded home-living (dormitory) school, detailed 
information on the status of each school in relation to the 
standards established under this section, specific cost 
estimates for meeting each standard for each such school, 
aggregate cost estimates for bringing all such schools into 
compliance with the criteria established under this section, 
and specific timelines for bringing each school into compliance 
with such standards.
  (d) Waiver.--The criteria established under this section may 
be waived in the same manner as the standards provided under 
section 1121(c) may be waived.
  (e) Closure for Failure To Meet Standards Prohibited.--No 
school in operation on or before January 1, 1987 (regardless of 
compliance or noncompliance with the criteria established under 
this section), may be closed, transferred to another authority, 
consolidated, or have its program substantially curtailed for 
failure to meet the criteria.

SEC. 1123. CODIFICATION OF REGULATIONS.

  (a) Part 32 of Title 25 of Code of Federal Regulations.--The 
provisions of part 32 of title 25 of the 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) Regulation Defined.--For purposes of this part, the term 
``regulation'' means any rules, regulations, guidelines, 
interpretations, orders, or requirements of general 
applicability prescribed by any officer or employee of the 
executive branch.

SEC. 1124. SCHOOL BOUNDARIES.

  (a) Establishment 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, 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) In general.--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.
        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 cause such revisions to be published in 
        the Federal Register.
          (2) Tribal resolution determination.--Nothing in this 
        section shall be interpreted as denying 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.--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. 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.--In any case where there is only 
one Bureau funded program located on an Indian reservation, 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 those students residing near the 
reservation shall also receive services from such program.
  (f) Off-Reservation Home-Living (Dormitory) Schools.--
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. Such attendance shall be coordinated between education 
line officers, the family, and the referring and receiving 
programs.

SEC. 1125. FACILITIES CONSTRUCTION.

  (a) Compliance With Health and Safety Standards.--The 
Secretary shall immediately begin to bring all schools, 
dormitories, and other Indian education-related facilities 
operated by the Bureau or under contract or grant with the 
Bureau into compliance with 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), with section 504 of the Rehabilitation Act of 
1973, and with the Americans with Disabilities Act of 1990. 
Nothing in this section shall require termination of the 
operations of any facility which does not comply with such 
provisions and which is in use on the date of the enactment of 
the No Child Left Behind Act of 2001.
  (b) 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) of this section into compliance with the 
standards referred to in subsection (a). Such plan shall 
include detailed information on the status of each facility's 
compliance with such standards, specific cost estimates for 
meeting such standards at each school, and specific timelines 
for bringing each school into compliance with such standards.
  (c) Construction Priorities.--
          (1) System 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. 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 (b), 
        the Secretary shall--
                  (A) not later than 18 months after the date 
                of the enactment of the No Child Left Behind 
                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) cause the list prepared under subsection 
                (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
                  (E) cause the final list to be published in 
                the Federal Register.
          (3) Effect on other list.--Nothing in this section 
        shall be construed as interfering with or changing in 
        any way the construction priority list as it exists on 
        the date of the enactment of the No Child Left Behind 
        Act of 2001.
  (d) Hazardous Condition at Bureau School.--
          (1) Closure or consolidation.--A Bureau funded school 
        may be closed or consolidated, and the programs of a 
        Bureau funded school may be substantially curtailed by 
        reason of plant conditions that constitute an immediate 
        hazard to health and safety only if a health and safety 
        officer of the Bureau determines that such conditions 
        exist at the Bureau funded school.
          (2) Inspection.--(A) After making a determination 
        described in paragraph (1), the Bureau health and 
        safety officer shall conduct an inspection of the 
        condition of such plant accompanied by an appropriate 
        tribal, county, municipal, or State health and safety 
        officer in order to determine whether conditions at 
        such plant constitute an immediate hazard to health and 
        safety. Such inspection shall be completed by not later 
        than the date that is 30 days after the date on which 
        the action described in paragraph (1) is taken. No 
        further negative action may be taken unless the 
        findings are concurred in by the second, non-Bureau of 
        Indian Affairs inspector.
          (B) If the health and safety officer conducting the 
        inspection of a plant required under subparagraph (A) 
        determines that conditions at the plant do not 
        constitute an immediate hazard to health and safety, 
        any consolidation or curtailment that was made under 
        paragraph (1) shall immediately cease and any school 
        closed by reason of conditions at the plant shall be 
        reopened immediately.
          (C) If a Bureau funded school is temporarily closed 
        or consolidated or the programs of a Bureau funded 
        school are 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 Congress, by 
        not later than 6 months after the date on which the 
        closure, consolidation, or curtailment was initiated, a 
        report which sets forth the reasons for such temporary 
        actions, the actions the Secretary is taking to 
        eliminate the conditions that constitute the hazard, 
        and an estimated date by which such actions will be 
        concluded.
  (e) Funding Requirement.--
          (1) Distribution of funds.--Beginning with the fiscal 
        year following the year of the date of the enactment of 
        the No Child Left Behind Act of 2001, all funds 
        appropriated for the operations and maintenance of 
        Bureau funded schools shall be distributed by formula 
        to the schools. No funds from this account 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.
  (f) No Reduction in Federal Funding.--Nothing in this section 
shall be construed to 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. 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.--Not 
later than 6 months after the date of the enactment of the No 
Child Left Behind Act of 2001, the Director of the Office of 
Indian Education Programs shall direct and supervise the 
operations of all personnel directly and substantially involved 
in the provision of education services by the Bureau, including 
school or institution custodial or maintenance personnel, 
facilities management, contracting, procurement, and finance 
personnel. The Assistant Secretary for Indian Affairs shall 
coordinate the transfer of functions relating to procurement, 
contracts, operation, and maintenance of schools and other 
support functions to the Director.
  (c) 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 the 
first sentence of subsection (b) 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.
  (d) Construction, Improvement, Operation, and Maintenance of 
Facilities.--
          (1) Plan for construction.--The Assistant Secretary 
        shall submit in 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 five 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. In making such 
                        determination, the Assistant Secretary 
                        shall cause to be conducted a series of 
                        meetings at the agency and area level 
                        with representatives of the Bureau 
                        funded schools in those areas and 
                        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.--The requirements of this 
        subsection shall be implemented as soon as practicable 
        after the date of the enactment of the No Child Left 
        Behind Act of 2001.
  (e) Acceptance of Gifts and Bequests.--Notwithstanding any 
other provision of law, the Director shall promulgate 
guidelines for the establishment of mechanisms for the 
acceptance of gifts and bequests for the use and benefit of 
particular schools or designated Bureau operated education 
programs, including, where appropriate, the establishment and 
administration of trust funds. When a Bureau operated program 
is the beneficiary of such a gift or bequest, the Director 
shall make provisions for monitoring its use and shall report 
to the appropriate committees of Congress 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 action.
  (f) Functions Clarified.--For the purpose of this section, 
the term ``functions'' includes powers and duties.

SEC. 1127. ALLOTMENT FORMULA.

  (a) Factors Considered; Revision To Reflect Standards.--
          (1) Formula.--The Secretary shall establish, by 
        regulation adopted in accordance with section 1138A, 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;
                          (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; and
                  (D) such other relevant factors as the 
                Secretary determines are appropriate.
          (2) Revision of formula.--Upon the establishment of 
        the standards required in sections 1121 and 1122, the 
        Secretary shall revise the formula established under 
        this subsection to reflect the cost of funding such 
        standards. 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. 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 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 
                yearlong 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.--Each school board shall see 
                that each new member of the school board 
                receives, within 12 months of the individual's 
                assuming a position on the school board, 40 
                hours of training relevant to that individual's 
                service on the board. Such training may include 
                legal issues pertaining to schools funded by 
                the Bureau, legal issues pertaining to school 
                boards, ethics, and other topics deemed 
                appropriate by the school board.
  (d) Reservation of Amount for Emergencies.--The Secretary 
shall reserve from the funds available for distribution for 
each fiscal year under this section an amount which, in the 
aggregate, shall equal 1 percent of the funds available for 
such purpose for that fiscal year. Such funds shall 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. Funds reserved under this subsection may only be 
expended 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). 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. Whenever, 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.--For the purpose of 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 an Indian tribe 
        which is eligible for the special programs and services 
        provided by the United States through the Bureau 
        because of their status as Indians; and
          (2) resides on or near an Indian reservation or meets 
        the criteria for attendance at a Bureau off-reservation 
        home-living (dormitory) school.
  (g) Tuition.--
          (1) In general.--An eligible Indian student may not 
        be charged tuition for attendance at a Bureau school or 
        contract or grant school. A student attending a Bureau 
        school under paragraph (2)(C) may not be charged 
        tuition for attendance at such a 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;
                  (C) the student is a dependent of a Bureau, 
                Indian Health Service, or tribal government 
                employee who lives on or near the schoolsite; 
                or
                  (D) a tuition is paid for the student that is 
                not more than that 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 and 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 steps as may be necessary to implement 
this provision.
  (i) Students at Richfield Dormitory, Richfield, Utah.--
Tuition for out-of-State Indian students in home-living 
(dormitory) arrangements at the Richfield dormitory in 
Richfield, Utah, who attend Sevier County high schools in 
Richfield, Utah, shall be paid from the Indian school 
equalization program funds authorized in this section and 
section 1130 at a rate not to exceed the amounts per weighted 
student unit for that year for the instruction of such 
students. No additional administrative cost funds shall be 
added to the grant.

SEC. 1128. ADMINISTRATIVE COST GRANTS.

  (a) Grants; Effect Upon Appropriated Amounts.--
          (1) Grants.--Subject to the availability of 
        appropriated 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.
  (b) 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. The administrative 
        cost percentage rate determined under subsection (c) 
        does not apply to other programs operated by the tribe 
        or tribal organization.
          (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.
  (c) Administrative Cost Percentage Rate.--
          (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.
  (d) 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).
  (e) 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.
  (f) 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.
  (g) Treatment of Entity Operating Other Programs.--In 
applying this section and section 105 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,
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, provided 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.
  (h) Definitions.--For purposes of this section:
          (1) Administrative cost.--(A) The term 
        ``administrative cost'' means the costs 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) The term ``administrative cost'' may include--
                  (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) 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 
                two preceding fiscal years, the first fiscal 
                year preceding such fiscal year.
          (B) 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 of programs (excluding funds for 
        social services that are appropriated to agencies other 
        than the Bureau and are expended 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.
  (i) Studies for Determination of Factors Affecting Costs; 
Base Rates Limits; Standard Direct Cost Base; Report to 
Congress.--
          (1) Studies.--Not later than 120 days after the date 
        of the enactment of the No Child Left Behind 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 (c) 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;
                  (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 substantially to affect the 
                administrative costs and efficiency of each 
                such tribal elementary or secondary educational 
                program studied in order to assure 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 such sums as necessary to carry out this 
        section.
          (2) Reductions.--If the total amount of funds 
        necessary to provide grants to tribes and tribal 
        organizations in the amounts determined under 
        subsection (b) 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 (b) for such 
        fiscal year by an amount that bears the same 
        relationship to such excess as the amount of such 
        grants determined under subsection (b) bears to the 
        total of all grants determined under subsection (b) 
        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 also apply to those schools operating under the Tribally 
Controlled Schools Act of 1988.

SEC. 1129. DIVISION OF BUDGET ANALYSIS.

  (a) Establishment.--Not later than 12 months after the date 
of the enactment of the No Child Left Behind Act of 2001, the 
Secretary shall establish within the Office of Indian Education 
Programs a Division of Budget Analysis (hereinafter 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 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 Reports.--Not later than the date that the 
Assistant Secretary for Indian Affairs makes the annual budget 
submission, for each fiscal year after the date of the 
enactment of the No Child Left Behind 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 which shall contain--
          (1) projections, based upon the information gathered 
        pursuant to subparagraph (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 their annual 
budget submissions.

SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.

  (a) Establishment of System and Forward Funding.--
          (1) In general.--The Secretary shall establish, by 
        regulation adopted in accordance with section 1138, 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 under this section may be made 
        available under paragraph (2).
          (2) Timing for use of funds.--(A) For the purposes of 
        affording adequate notice of funding available pursuant 
        to the allotments made under section 1127, amounts 
        appropriated in an appropriations Act for any fiscal 
        year shall become available for obligation by the 
        affected schools on July 1 of the fiscal year in which 
        such amounts are appropriated without further action by 
        the Secretary, and shall remain available for 
        obligation through the succeeding fiscal year.
          (B) The Secretary shall, on the basis of the amount 
        appropriated in accordance with this paragraph--
                  (i) publish, not later than July 1 of the 
                fiscal year for which the funds are 
                appropriated, allotments to each affected 
                school made under section 1127 of 85 percent of 
                such appropriation; and
                  (ii) publish, not later than September 30 of 
                such fiscal year, the allotments to be made 
                under section 1127 of the remaining 15 percent 
                of such appropriation, adjusted to reflect the 
                actual student attendance.
          (3) Limitation.--(A) Notwithstanding any other 
        provision of law or regulation, the supervisor of a 
        Bureau funded school may expend an aggregate of not 
        more than $50,000 of the amount allotted the school 
        under section 1127 to acquire materials, supplies, 
        equipment, services, operation, and maintenance for the 
        school without competitive bidding if--
                  (i) the cost for any single item purchased 
                does not exceed $15,000;
                  (ii) the school board approves the 
                procurement;
                  (iii) the supervisor certifies that the cost 
                is fair and reasonable;
                  (iv) the documents relating to the 
                procurement executed by the supervisor or other 
                school staff cite this paragraph as authority 
                for the procurement; and
                  (v) the transaction is documented in a 
                journal maintained at the school clearly 
                identifying when the transaction occurred, what 
                was acquired and from whom, the price paid, the 
                quantities acquired, and any other information 
                the supervisor or school board considers 
                relevant.
          (B) Not later than 6 months after the date of the 
        enactment of the No Child Left Behind Act of 2001, the 
        Secretary shall cause to be sent to each supervisor of 
        a Bureau operated program and school board chairperson, 
        the education line officer or officers of each agency 
        and area, and the Bureau Division in charge of 
        procurement, at both the local and national levels, 
        notice of this paragraph.
          (C) The Director shall be responsible for determining 
        the application of this paragraph, including the 
        authorization of specific individuals to carry out this 
        paragraph, and shall be responsible for 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 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 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.--In the case of all Bureau 
        operated schools, allotted funds shall be expended on 
        the basis of local financial plans which ensure meeting 
        the accreditation requirements or standards for the 
        school established pursuant to section 1121 and which 
        shall be prepared by the local school supervisor in 
        active consultation with the local school board for 
        each school. The local school board for each school 
        shall have the authority to ratify, reject, or amend 
        such financial plan, and expenditures thereunder, and, 
        on its own determination 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.
          (2) The supervisor--
                  (A) shall put into effect the decisions of 
                the school board;
                  (B) shall provide the appropriate local union 
                representative of the education employees with 
                copies of proposed draft financial plans and 
                all amendments or modifications thereto, at the 
                same time such copies are submitted 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. 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 
                appropriate education line officer may, for 
                good cause, overturn the action of the local 
                school board. 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) Use of Self-Determination Grants Funds.--Funds for self-
determination grants under section 103(a)(2) of the Indian 
Self-Determination and Education Assistance Act shall not be 
used for providing technical assistance and training in the 
field of education by the Bureau unless such services are 
provided in accordance with a plan, agreed to by the tribe or 
tribes affected and the Bureau, under which control of 
education programs is intended to be transferred to such tribe 
or tribes within a specific period of time negotiated under 
such agreement. The Secretary may approve applications for 
funding tribal divisions of education and development of tribal 
codes of education from funds appropriated pursuant to section 
104(a) of such Act.
  (d) Technical Assistance and Training.--In the exercise of 
its authority under this section, a local school board may 
request technical assistance and training from the Secretary, 
and the Secretary shall, to the greatest extent possible, 
provide such services, and make appropriate provisions in the 
budget of the Office for such services.
  (e) Summer Program of Academic and Support Services.--
          (1) 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. Any 
        such program may include activities related to the 
        prevention of alcohol and substance abuse. The 
        Assistant Secretary for Indian Affairs shall provide 
        for the utilization of any such school facility during 
        any summer in which such utilization 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 provide 
        technical assistance and coordination for any program 
        described in paragraph (1) and shall, to the extent 
        possible, 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) In general.--From funds allotted to a Bureau 
        school under section 1127, the Secretary shall, if 
        specifically requested by the tribal governing body (as 
        defined in section 1141), implement any cooperative 
        agreement entered into between the tribe, the Bureau 
        school board, and the local public school district 
        which meets the requirements of paragraph (2) and 
        involves the school. The tribe, the Bureau school 
        board, and the local public school district shall 
        determine the terms of the agreement. Such agreement 
        may encompass coordination of all or any part of the 
        following:
                  (A) Academic program and curriculum, unless 
                the Bureau school is currently accredited by a 
                State or regional accrediting entity and would 
                not continue to be so accredited.
                  (B) Support services, including procurement 
                and facilities maintenance.
                  (C) Transportation.
          (2) Equal benefit and burden.--Each agreement entered 
        into pursuant to the authority provided in paragraph 
        (1) shall confer a benefit upon the Bureau school 
        commensurate with the burden assumed, though this 
        requirement shall not be construed so as to require 
        equal expenditures or an exchange of similar services.
  (g) Product or Result of Student Projects.--Notwithstanding 
any other provision of law, where 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) Not Considered Federal Funds for Matching Requirements.--
Notwithstanding any other provision of law, funds received by a 
Bureau funded school under this part shall not be considered 
Federal funds for the purposes of meeting a matching funds 
requirement for any Federal program.

SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.

  (a) Facilitation of Indian Control.--It shall be the policy 
of the Secretary and the Bureau, in carrying out the functions 
of the Bureau, to facilitate tribal 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.
          (2) Requirements.--The consultation required under 
        paragraph (1) 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. During such 
        discussions and joint deliberations, interested parties 
        (including tribes and school officials) shall be given 
        an opportunity to present issues including proposals 
        regarding changes in current practices or programs 
        which will be considered for future action by the 
        Bureau. All interested parties shall be given an 
        opportunity 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. 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.

SEC. 1132. 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) Regulations.--Not later than 60 days after the date of 
the enactment of the No Child Left Behind Act of 2001, the 
Secretary shall prescribe regulations to carry out this 
section. Such regulations shall include--
          (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; 
        and
          (11) such matters as may be appropriate.
  (c) Qualifications of Educators.--
          (1) Requirements.--In prescribing regulations to 
        govern the qualifications of educators, the Secretary 
        shall require--
                  (A)(i) that 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; and
                  (ii) that a list of qualified and interviewed 
                applicants for education positions be 
                maintained in the Office from among individuals 
                who have applied at the national level for an 
                education position and who have expressed 
                interest in working in an education position 
                anywhere in the United States;
                  (B) that 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 supervisor; and
                  (C) that it shall not be a prerequisite to 
                the employment of an individual in an education 
                position at the local level that such 
                individual's name appear on the national list 
                maintained pursuant to subparagraph (A)(ii) or 
                that such individual has 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) that educators employed in a Bureau 
                operated school (other than the supervisor of 
                the school) shall be hired by the supervisor of 
                the school. In cases where there are no 
                qualified applicants available, such supervisor 
                may consult the national list maintained 
                pursuant to subsection (c)(1)(A)(ii);
                  (ii) each school supervisor shall be hired by 
                the education line officer of the agency office 
                of the Bureau in which the school is located;
                  (iii) educators 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 
                educators employed in the Office of the 
                Director of Indian Education Programs shall be 
                hired by the Director;
                  (B) that before an individual is employed in 
                an education position in a school by the 
                supervisor of a 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. 
                A determination by such school board 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 
                agency superintendent for education);
                  (C) that before an individual may be employed 
                in an education position at the agency level, 
                the appropriate agency school board shall be 
                consulted, and that a determination by such 
                school board that such individual should or 
                should not be employed shall be instituted by 
                the agency superintendent for education; and
                  (D) that before an individual may be employed 
                in an education position in the Office of the 
                Director (other than the position of Director), 
                the national school boards representing all 
                Bureau schools shall be consulted.
          (2) Information regarding application at national 
        level.--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. 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 the first sentence of this 
        paragraph. 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. 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.
  (e) Discharge and Conditions of Employment of Educators.--
          (1) Regulations.--In prescribing regulations to 
        govern the discharge and conditions of employment of 
        educators, the Secretary shall require--
                  (A) that procedures be established for the 
                rapid and equitable resolution of grievances of 
                educators;
                  (B) that no educator may be discharged 
                without notice of the reasons therefore and 
                opportunity for a hearing under procedures that 
                comport with the requirements of due process; 
                and
                  (C) that educators employed in Bureau schools 
                be notified 30 days prior to the end of the 
                school year whether their employment contract 
                will be renewed for the following year.
          (2) Procedures for discharge.--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. Upon 
        giving notice of proposed discharge to an educator, the 
        supervisor involved shall immediately notify the local 
        school board for the school of such action. A 
        determination by the local school board that such 
        educator shall not be discharged shall be followed by 
        the supervisor. The supervisor shall have the right to 
        appeal such action to the education line officer of the 
        appropriate agency office of the Bureau. Upon such an 
        appeal, the agency education line officer may, for good 
        cause and in writing to the local school board, 
        overturn the determination of the local school board 
        with respect to the employment of such individual.
          (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 of such 
                school 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.--
          (1) In general.--Notwithstanding any provision of the 
        Indian preference laws, such laws shall not apply in 
        the case of any personnel action under this section 
        respecting an applicant or employee not entitled to 
        Indian preference if each tribal organization concerned 
        grants a written waiver of the application of such laws 
        with respect to such personnel action and states that 
        such waiver is necessary. This paragraph shall not 
        relieve the Bureau's responsibility 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) Tribal organization defined.--For purposes of 
        this subsection, the term ``tribal organization'' 
        means--
                  (A) 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
                  (B) in connection with any personnel action 
                referred to in this subsection, any local 
                school board as defined in section 1141 which 
                has been delegated by such governing body the 
                authority to grant a waiver under this 
                subsection with respect to personnel action.
          (3) Indian preference law defined.--The term ``Indian 
        preference laws'' means section 12 of the Act of June 
        18, 1934, or any other provision of law granting a 
        preference to Indians in promotions and other personnel 
        actions. Such term shall not include section 7(b) of 
        the Indian Self-Determination and Education Assistance 
        Act.
  (g) Compensation or Annual Salary.--
          (1) In general.--(A) Except as otherwise provided in 
        this section, the Secretary shall fix the basic 
        compensation for educators and education positions 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 on the basis of 
        the Federal Wage System schedule in effect for the 
        locality, and for the comparable positions, the rates 
        of compensation in effect for the senior executive 
        service.
          (B) The Secretary shall establish the rate of basic 
        compensation, or annual salary rates, for the positions 
        of teachers and counselors (including dormitory 
        counselors and home-living counselors) at the rates of 
        basic compensation applicable (on the date of the 
        enactment of the No Child Left Behind Act of 2001 and 
        thereafter) to comparable positions in the overseas 
        schools under the Defense Department Overseas Teachers 
        Pay Act. The Secretary shall allow the local school 
        boards authority to implement only the aspects of the 
        Defense Department Overseas Teacher pay provisions that 
        are considered essential for recruitment and retention. 
        Implementation of such provisions shall not be 
        construed to require the implementation of the Act in 
        its entirety.
          (C)(i) Beginning with the fiscal year following the 
        date of the enactment of the No Child Left Behind Act 
        of 2001, each school board may set the rate of 
        compensation or annual salary rate for teachers and 
        counselors (including academic counselors) who are new 
        hires at the school and who have not worked at the 
        school on the date of implementation of this provision, 
        at rates consistent with the rates paid for individuals 
        in the same positions, with the same tenure and 
        training, in any other school within whose boundaries 
        the Bureau school lies. In instances where the adoption 
        of such rates cause a reduction in the payment of 
        compensation from that which was in effect for the 
        fiscal year following the date of the enactment of the 
        No Child Left Behind Act of 2001, the new rate may be 
        applied to the compensation of employees of the school 
        who worked at the school on of the date of the 
        enactment of that Act by applying those rates to each 
        contract renewal such that the reduction takes effect 
        in three equal installments. Where adoption of such 
        rates lead to an increase in the payment of 
        compensation from that which was in effect for the 
        fiscal year following the date of the enactment of the 
        No Child Left Behind Act of 2001, the school board may 
        make such rates applicable at the next contract renewal 
        such that either--
                  (I) the increase occurs in its entirety; or
                  (II) the increase is applied in three equal 
                installments.
          (ii) The establishment of rates of basic compensation 
        and annual salary rates under subparagraphs (B) and (C) 
        shall not preclude the use of regulations and 
        procedures used by the Bureau prior to April 28, 1988, 
        in making determinations regarding promotions and 
        advancements through levels of pay that are based on 
        the merit, education, experience, or tenure of the 
        educator.
          (D) The establishment of rates of basic compensation 
        and annual salary rates under subparagraphs (B) and (C) 
        shall not 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) is in effect on 
        January 1, 1990.
          (2) Post-differential rates.--(A) The Secretary may 
        pay a post-differential rate not to exceed 25 percent 
        of the rate of basic compensation, on the basis of 
        conditions of environment or work which warrant 
        additional pay as a recruitment and retention 
        incentive.
          (B)(i) Upon 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-differentials under 
        subparagraph (A) unless the Secretary determines for 
        clear and convincing reasons (and advises the board in 
        writing of those reasons) that certain of the requested 
        post-differentials should be disapproved or decreased 
        because there is no disparity of compensation for the 
        involved employees or positions in the Bureau school, 
        as compared with the nearest public school, that is 
        either--
                  (I) at least 5 percent; or
                  (II) less than 5 percent and affects the 
                recruitment or retention of employees at the 
                school.
          (ii) A request under clause (i) shall be deemed 
        granted 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 
        modification, or disapproved by the Secretary.
          (iii) The Secretary or the supervisor of a Bureau 
        school may discontinue or decrease a post-differential 
        authorized under this subparagraph at the beginning of 
        a school year if--
                  (I) the local school board requests that such 
                differential be discontinued or decreased; or
                  (II) the Secretary or the supervisor 
                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.
          (iv) On or before February 1 of each year, the 
        Secretary shall submit to Congress a report describing 
        the requests and grants of authority under this 
        subparagraph during the previous year and listing the 
        positions contracted under those grants of authority.
  (h) Liquidation of Remaining Leave Upon Termination.--Upon 
termination of employment with the Bureau, any annual leave 
remaining to the credit of an individual within the purview of 
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 prescribed pursuant 
to subsection (b)(10) of this section 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 prescribed 
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 prescribed 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.--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. Nothing in this part 
shall be construed to require Federal employees to work without 
compensation or to allow the use of volunteer services to 
displace or replace Federal employees. 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.--
          (1) Election of employee.--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. 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. 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) Definitions.--For purposes of this subsection, 
        the terms ``educator'' and ``education position'' have 
        the meanings contained in paragraphs (1) and (2) of 
        subsection (o). This subsection applies to those 
        individuals employed under the provisions of section 
        1132 of this title or title 5, United States Code.
  (n) Extracurricular Activities.--
          (1) Stipend.--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. 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. 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, whether employed under 
        section 1132 of this title or title 5, United States 
        Code.
  (o) Definitions.--For the purpose of this section--
          (1) Education position.--The term ``education 
        position'' means a position in the Bureau the duties 
        and responsibilities of which--
                  (A) are performed on a school-year basis 
                principally in a Bureau school and involve--
                          (i) classroom or other instruction or 
                        the supervision or direction of 
                        classroom or other instruction;
                          (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.

SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.

  (a) Establishment of System.--Not later than July 1, 2003, 
the Secretary shall establish within the Office, a computerized 
management information system, which shall provide processing 
and information to the Office. The information provided shall 
include information regarding--
          (1) student enrollment;
          (2) curriculum;
          (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 
        discreet elements;
          (8) relevant reports;
          (9) personnel records;
          (10) finance and payroll; and
          (11) such other items as the Secretary deems 
        appropriate.
  (b) Implementation of System.--Not later than July 1, 2004, 
the Secretary shall complete implementation of such a system at 
each field office and Bureau funded school.

SEC. 1134. UNIFORM EDUCATION PROCEDURES AND PRACTICES.

  The Secretary shall cause the various divisions of the Bureau 
to formulate uniform procedures and practices with respect to 
such concerns of those divisions as relate to education, and 
shall report such practices and procedures to the Congress.

SEC. 1135. 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.

SEC. 1136. BIENNIAL REPORT; AUDITS.

  (a) Biennial 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 
biennial report on the state of education within the Bureau and 
any problems encountered in Indian education during the 2-year 
period covered by the report. Such report shall contain 
suggestions for the improvement of the Bureau educational 
system and for increasing tribal or local Indian control of 
such system. Such report shall also include the current status 
of tribally controlled community colleges. The annual budget 
submission for the Bureau's education programs shall include--
          (1) information on the funds provided to previously 
        private schools under section 208 of the Indian Self-
        Determination and Education Assistance Act, and 
        recommendations with respect to the future use of such 
        funds;
          (2) the needs and costs of operations and maintenance 
        of tribally controlled community colleges eligible for 
        assistance under the Tribally Controlled Community 
        College Assistance Act of 1978 and recommendations with 
        respect to meeting such needs and costs; and
          (3) the plans required by sections 1121 (g), 1122(c), 
        and 1125(b).
  (b) Financial and Compliance Audits.--The Inspector General 
of the Department of the Interior shall establish a system to 
ensure that financial and compliance audits are conducted of 
each Bureau operated school at least once in every 3 years. 
Audits of Bureau schools shall be based upon the extent to 
which such school has complied with its local financial plan 
under section 1130.

SEC. 1137. RIGHTS OF INDIAN STUDENTS.

  The 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' right to privacy under the laws of the United States, 
such students' right to freedom of religion and expression, and 
such students' right to due process in connection with 
disciplinary actions, suspensions, and expulsions.

SEC. 1138. REGULATIONS.

  (a) In General.--The Secretary is authorized to issue only 
such regulations as are necessary to ensure compliance with the 
specific provision of this Act. The Secretary shall publish 
proposed regulations in the Federal Register, shall provide a 
period of not less than 90 days for public comment thereon, and 
shall place in parentheses after each regulatory section the 
citation to any statutory provision providing authority to 
promulgate such regulatory provision.
  (b) Miscellaneous.--
          (1) Construction.--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 the enactment of this Act and the 
        Secretary is authorized to repeal any regulation 
        inconsistent with the provisions of this Act.
          (2) Legal authority to be stated.--Regulations issued 
        to implement this Act shall contain, immediately 
        following each substantive provision of such 
        regulations, citations to the particular section or 
        sections of statutory law or other legal authority upon 
        which provision is based.

SEC. 1138A. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

  (a) Meetings.--
          (1) In general.--The Secretary shall obtain tribal 
        involvement in the development of proposed regulations 
        under this part and the Tribally Controlled Schools Act 
        of 1988. The Secretary shall obtain the advice of and 
        recommendations from representatives of Indian tribes 
        with Bureau funded schools on their reservations, 
        Indian tribes whose children attend Bureau funded off-
        reservation boarding schools, school boards, 
        administrators or employees of Bureau funded schools, 
        and parents and teachers of students enrolled in Bureau 
        funded schools.
          (2) Issues.--The Secretary shall provide for a 
        comprehensive discussion and exchange of information 
        concerning the implementation of this part and the 
        Tribally Controlled Schools Act of 1988 through such 
        mechanisms as regional meetings and electronic 
        exchanges of information. The Secretary shall take into 
        account the information received through such 
        mechanisms in the development of proposed regulations 
        and shall publish a summary of such information in the 
        Federal Register together with such proposed 
        regulations.
  (b) Draft Regulations.--
          (1) In general.--After obtaining the advice and 
        recommendations described in subsection (a)(1) and 
        before publishing proposed regulations in the Federal 
        Register, the Secretary shall prepare draft regulations 
        implementing this part and the Tribally Controlled 
        Schools Act of 1988 and shall submit such regulations 
        to a negotiated rulemaking process. Participants in the 
        negotiations process shall be chosen by the Secretary 
        from individuals nominated by the entities described in 
        subsection (a)(1). To the maximum extent possible, the 
        Secretary shall ensure that the tribal representative 
        membership chosen pursuant to the preceding sentence 
        reflects the proportionate share of students from 
        tribes served by the Bureau funded school system. The 
        negotiation process shall be conducted in a timely 
        manner in order that the final regulations may issued 
        by the Secretary no later than 18 months after the 
        enactment of this section.
          (2) Notification to congress.--If draft regulations 
        implementing this part and the Tribally Controlled 
        Schools Act of 1988 are not issued in final form by the 
        deadline provided in paragraph (1), the Secretary shall 
        notify the appropriate committees of Congress of which 
        draft regulations were not issued in final form by the 
        deadline and the reason such final regulations were not 
        issued.
          (3) Expansion of negotiated rulemaking.--All 
        regulations pertaining to this part and the Tribally 
        Controlled Schools Act of 1988 that are promulgated 
        after the date of the enactment of this subsection 
        shall be subject to a negotiated rulemaking (including 
        the selection of the regulations to be negotiated), 
        unless the Secretary determines that applying such a 
        requirement with respect to given regulations is 
        impracticable, unnecessary, or contrary to the public 
        interest (within the meaning of section 553(b)(3)(B) of 
        title 5), and publishes the basis for such 
        determination in the Federal Register at the same time 
        as the proposed regulations in question are first 
        published. All published proposed regulations shall 
        conform to agreements resulting from such negotiated 
        rulemaking unless the Secretary reopens the negotiated 
        rulemaking process or provides a written explanation to 
        the participants in that process why the Secretary has 
        decided to depart from such agreements. Such negotiated 
        rulemaking shall be conducted in accordance with the 
        provisions of subsection (a), and the Secretary shall 
        ensure that a clear and reliable record of agreements 
        reached during the negotiation process is maintained.
  (c) Applicability of Federal Advisory Committee Act.--The 
Federal Advisory Committee Act shall apply to activities 
carried out under this section.

SEC. 1139. 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
                  (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 
        consortia of tribes and tribal organizations only if 
        the tribe, organization, or consortia 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.--For the purpose of 
carrying out the provisions of this section, there are 
authorized to be appropriated $10,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the fiscal years 
2003, 2004, 2005, and 2006.

SEC. 1140. TRIBAL DEPARTMENTS OR DIVISIONS OF EDUCATION.

  (a) In General.--Subject to the availability of 
appropriations, the Secretary shall provide grants and 
technical assistance to tribes for the development and 
operation of tribal departments of education for the purpose of 
planning and coordinating all educational programs of the 
tribe.
  (b) Grants.--Grants provided under this section shall--
          (1) be based on applications from the governing body 
        of the tribe;
          (2) reflect factors such as geographic and population 
        diversity;
          (3) facilitate tribal control in all matters relating 
        to the education of Indian children on Indian 
        reservations (and on former Indian reservations in 
        Oklahoma);
          (4) provide for the development of coordinated 
        educational programs on Indian reservations (and on 
        former Indian reservations in Oklahoma) (including all 
        preschool, elementary, secondary, and higher or 
        vocational educational programs funded by tribal, 
        Federal, or other sources) by encouraging tribal 
        administrative support of all Bureau funded educational 
        programs as well as encouraging tribal cooperation and 
        coordination with all educational programs receiving 
        financial support from State agencies, other Federal 
        agencies, or private entities;
          (5) 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; 
        and
          (6) otherwise comply with regulations for grants 
        under section 103(a) of the Indian Self-Determination 
        and Educational Assistance Act that are in effect on 
        the date that application for such grants are made.
  (c) Priorities.--
          (1) In general.--In making grants under this section, 
        the Secretary shall give priority to any application 
        that--
                  (A) includes assurances from the majority of 
                Bureau funded schools located within the 
                boundaries of the reservation of 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, including the 
                submission to each applicable agency of a 
                unified application for funding for all of such 
                schools which provides that--
                          (i) no administrative costs other 
                        than those attributable to the 
                        individual programs of such schools 
                        will be associated with the unified 
                        application; and
                          (ii) the distribution of all funds 
                        received under the unified application 
                        will be equal to the amount of funds 
                        provided by the applicable agency to 
                        which each of such schools is entitled 
                        under law;
                  (B) includes assurances from the tribal 
                governing body that the tribal department of 
                education funded under this section will 
                administer all contracts or grants (except 
                those covered by the other provisions of this 
                title and the Tribally Controlled Community 
                College Assistance Act of 1978) for education 
                programs administered by the tribe and will 
                coordinate all of the programs to the greatest 
                extent possible;
                  (C) includes assurances for the monitoring 
                and auditing by or through the tribal 
                department of education of all education 
                programs for which funds are provided by 
                contract or grant to ensure that the programs 
                meet the requirements of law; and
                  (D) provides a plan and schedule for--
                          (i) the assumption over the term of 
                        the grant by the tribal department of 
                        education of all assets and functions 
                        of the Bureau agency office associated 
                        with the tribe, insofar as those 
                        responsibilities relate to education; 
                        and
                          (ii) the termination by the Bureau of 
                        such operations and office at the time 
                        of such assumption,
                except that when mutually agreeable between 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.
          (2) Time period of grant.--Subject to the 
        availability of appropriated funds, grants provided 
        under this section shall be provided for a period of 3 
        years and the grant may, if performance by the grantee 
        is satisfactory to the Secretary, be renewed for 
        additional 3-year terms.
  (d) Terms, Conditions, or Requirements.--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.
  (e) Authorization of Appropriations.--For the purpose of 
carrying out the provisions of this section, there are 
authorized to be appropriated $2,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the fiscal years 
2003, 2004, 2005, and 2006.

SEC. 1141. DEFINITIONS.

  For the purposes of this part, unless otherwise specified:
          (1) Agency school board.--The term ``agency school 
        board'' means a body, 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 the number of such members 
        shall be 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) Contract or grant school.--The term ``contract or 
        grant school'' means an elementary or secondary school 
        or dormitory which 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.
          (6) Education line officer.--The term ``education 
        line officer'' means education personnel under the 
        supervision of the Director, whether located in the 
        central, area, or agency offices.
          (7) 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).
          (8) Financial plan.--The term ``financial plan'' 
        means a plan of services provided by each Bureau 
        school.
          (9) 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.
          (10) 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, independent, or other 
        school district located within a State, and includes 
        any State agency which directly operates and maintains 
        facilities for providing free public education.
          (11) 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 in schools serving a 
        substantial number of students from different tribes, 
        the members shall be appointed by the governing bodies 
        of the tribes affected, and the number of such members 
        shall be determined by the Secretary in consultation 
        with the affected tribes.
          (12) Office.--The term ``Office'' means the Office of 
        Indian Education Programs within the Bureau.
          (13) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.
          (14) Supervisor.--The term ``supervisor'' means the 
        individual in the position of ultimate authority at a 
        Bureau school.
          (15) 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.
          (16) Tribe.--The term ``tribe'' means any Indian 
        tribe, band, nation, or other organized group or 
        community, including any Alaska Native village or 
        regional 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.
                              ----------                              

TRIBALLY CONTROLLED SCHOOLS ACT OF 1988

           *       *       *       *       *       *       *

[SEC. 5202. FINDINGS.

  [The Congress, after careful review of the Federal 
Government's historical and special legal relationship with, 
and resulting responsibilities to, Indians, finds that--
          [(1) 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 
        towards tribal and community control;
          [(2) the Bureau of Indian Affairs' administration and 
        domination of the contracting process under such Act 
        has not provided the full opportunity to develop 
        leadership skills crucial to the realization of self-
        government, and has denied to the Indian people an 
        effective voice in the planning and implementation of 
        programs for the benefit of Indians which are 
        responsive to the true needs of Indian communities;
          [(3) Indians will never surrender their desire to 
        control their relationships both among themselves and 
        with the non-Indian governments, organizations, and 
        persons;
          [(4) true self-determination in any society of people 
        is dependent upon an educational process which will 
        ensure the development of qualified people to fulfill 
        meaningful leadership roles;
          [(5) the Federal administration of education for 
        Indian children has not effected the desired level of 
        educational achievement nor created the diverse 
        opportunities and personal satisfaction which education 
        can and should provide;
          [(6) true local control requires the least possible 
        Federal interference; and
          [(7) the time has come to enhance the concepts made 
        manifest in the Indian Self-Determination and Education 
        Assistance Act.

[SEC. 5203. DECLARATION OF POLICY.

  [(a) Recognition.--The Congress recognizes the obligation of 
the United States to respond to the strong expression of the 
Indian people for self-determination by assuring maximum Indian 
participation in the direction of educational services so as to 
render such services more responsive to the needs and desires 
of those communities.
  [(b) Commitment.--The Congress declares its commitment to the 
maintenance of the Federal Government's unique and continuing 
trust relationship with and responsibility to the Indian people 
through the establishment of a meaningful Indian self-
determination policy for education which will deter further 
perpetuation of Federal bureaucratic domination of programs.
  [(c) National Goal.--The Congress declares that a major 
national goal of the United States is to provide the resources, 
processes, and structures which will enable tribes and local 
communities to effect the quantity and quality of educational 
services and opportunities which will permit Indian children to 
compete and excel in the life areas of their choice, and to 
achieve the measure of self-determination essential to their 
social and economic well-being.
  [(d) Educational Needs.--The Congress affirms the reality of 
the special and unique educational needs of Indian peoples, 
including the need for programs to meet the linguistic and 
cultural aspirations of Indian tribes and communities. These 
may best be met through a grant process.
  [(e) Federal Relations.--The Congress declares its commitment 
to these policies and its support, to the full extent of its 
responsibility, for Federal relations with the Indian Nations.
  [(f) Termination.--The Congress hereby repudiates and rejects 
House Concurrent Resolution 108 of the 83rd Congress and any 
policy of unilateral termination of Federal relations with any 
Indian Nation.

[SEC. 5204. GRANTS AUTHORIZED.

  [(a) In General.--
          [(1) 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 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 
                schools with assistance under this part and 
                submit applications (which are approved by 
                their tribal governing bodies) to the Secretary 
                for such grants.
          [(2) 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 provided.
          [(3)(A) 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 but not limited to, expenditures 
        for--
                  [(i) school operations, academic, 
                educational, residential, guidance and 
                counseling, and administrative purposes, and
                  [(ii) support services for the school, 
                including transportation.
          [(B) 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 operation 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).
          [(C) If funds allocated to a tribally controlled 
        school under title I of the Elementary and Secondary 
        Education Act of 1965, the Individuals with 
        Disabilities Education Act, or any Federal education 
        law other than title XI of the Education Amendments of 
        1978 are included in a grant provided under this part, 
        a portion of the grant equal to the amount of the funds 
        allocated under such law shall be expended only for 
        those activities for which funds provided under such 
        law may be expended under the terms of such law.
  [(b) Limitations.--
          [(1) No more than one grant may be provided under 
        this part with respect to any Indian tribe or tribal 
        organization for any fiscal year.
          [(2) Funds provided under any grant made under this 
        part may not be used in connection with religious 
        worship or sectarian instruction.
          [(3) Funds provided under any grant made under this 
        part may not be expended for administrative costs (as 
        defined under section 1128A(e)(1) of the Education 
        Amendments of 1978) in excess of the amount generated 
        for such costs under section 1128A of such Act.
  [(c) Limitation on Transfer of Funds Among Schoolsites.--
          [(1) In the case of a grantee which operates schools 
        at more than one schoolsite, the grantee may expend no 
        more than the lesser of--
                  [(A) 10 percent of the funds allocated for a 
                schoolsite under section 1128 of the Education 
                Amendments of 1978, or
                  [(B) $400,000 of such funds,
        at any other schoolsite.
          [(2) For purposes of this subsection, the term 
        ``schoolsite'' means the physical location and the 
        facilities of an elementary or secondary educational or 
        residential program operated by, or under contract 
        with, the Bureau for which a discreet student count is 
        identified under the funding formula established under 
        section 1128 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 into applying for, or accepting,
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.--Whenever an 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 not more than 
120 days after the date on which the tribal governing body 
requests the retrocession, or such later date as may be 
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.
  The tribe requesting retrocession shall specify whether the 
retrocession is to status as a Bureau school or as a contract 
school under title XI of the Education Amendments of 1978. 
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--
          [(1) with assistance under this part, or
          [(2) upon assumption of operation of the program 
        under this part if it was a Bureau funded school under 
        title XI of the Education Amendments of 1978 before 
        receiving assistance under this part.
  [(g) No Termination for Administrative Convenience.--Grants 
provided under this Act may not be terminated, modified, 
suspended, or reduced only for the convenience of the 
administering agency.

[SEC. 5205. 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 1128 and 1128A of the 
        Education Amendments of 1978 with respect to the 
        tribally controlled schools eligible for assistance 
        under this part that 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 (25 U.S.C. 450j), or any other 
        provision of law, other facilities accounts for such 
        schools for such fiscal year (including but not limited 
        to all those referenced under section 1216(d) of the 
        Education Amendments of 1978, or any other law), and
          [(3) the total amount 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 allocated to such schools for such fiscal 
        year.
  [(b) Special Rules.--
          [(1) In the allocation of funds under sections 1128, 
        1128A, and 1126(d) of the Education Amendments of 1978, 
        tribally controlled schools for which grants are 
        provided under this part shall be treated as contract 
        schools.
          [(2) In the 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, tribally 
        controlled schools for which grants are provided under 
        this part shall be treated as Bureau schools.
          [(3)(A) Funds allocated to a tribally controlled 
        school by reason of paragraph (1) or (2) 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,
                  [(ii) the Individuals with Disabilities 
                Education Act, or
                  [(iii) any Federal education law other than 
                title XI of the Education Amendments of 1978.
          [(B) 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).
          [(4) Notwithstanding the provision of paragraph 
        5204(a)(2) of the Tribally Controlled Schools Act of 
        1988 (25 U.S.C. 2503(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 under such 
        paragraph (a)(2), the grantee shall maintain a separate 
        account for such funds and shall, at the end of the 
        period designated for the work covered by the funds 
        received, render a separate accounting of the work done 
        and the funds used to the Secretary. Funds received 
        from these accounts may only be used for the purposes 
        for which they were appropriated and for the work 
        encompassed by the application or submission under 
        which they were received, except that a school 
        receiving a grant under this part for facilities 
        improvement and repair may use such grant funds for new 
        construction if the tribal government or other 
        organization provides funding for the new construction 
        equal to at least one-fourth of the total cost of such 
        new construction. Where the appropriations measure or 
        the application submission does not stipulate a period 
        for the work covered by the funds so designated, the 
        Secretary and the grantee shall consult and determine 
        such a period prior to the transfer of funds: Provided, 
        That such period may be extended upon mutual agreement.
          [(5) If the Secretary fails to make a determination 
        within 180 days of a request filed by an Indian tribe 
        or tribal organization to include in such tribe or 
        organization's grant the funds described in subsection 
        (a)(2), the Secretary shall be deemed to have approved 
        such request and the Secretary shall immediately amend 
        the grant accordingly. Such tribe or organization may 
        enforce its rights under subsection (a)(2) and this 
        paragraph, including any denial of or failure to act on 
        such tribe or organization's request, pursuant to the 
        disputes authority described in section 5209(e).

[SEC. 5206. ELIGIBILITY FOR GRANTS.

  [(a) In General.--
          [(1) A tribally controlled school is eligible for 
        assistance under this part if the school--
                  [(A) was, on April 28, 1988, 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 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) 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 this Act 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 Schools and Certain 
Electing Schools.--
          [(1) A school that was a Bureau funded school under 
        title XI of the Education Amendments of 1978 on April 
        28, 1988., 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 of 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)(A) By no 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) if the school 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.
          [(B) 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 Indian 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) 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) substantive knowledge of operating the 
                school,
                  [(iv) adequately trained personnel, or
                  [(v) any other necessary components in the 
                operation of the school.
  [(c) Additional Requirements for a School Which is Not a 
Bureau Funded School.--
          [(1) 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 of 
                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)(A) By no 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) 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 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; 
                        and
                  [(ii) with respect to all education services 
                already available--
                          [(I) geographic and demographic 
                        factors in the affected areas;
                          [(II) adequacy and comparability of 
                        programs already available;
                          [(III) consistency of available 
                        programs with tribal education codes or 
                        tribal legislation to education; and
                          [(IV) the history and success of 
                        these services for the proposed 
                        population to be served, as determined 
                        from all factors and not just 
                        standardized examination performance.
          [(C) The Secretary may not make a determination under 
        this paragraph that is primarily based upon the 
        geographic proximity of comparable public education.
          [(D) 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) 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 an earlier date, at the Secretary's 
        discretion.
  [(d) Applications and Reports.--
          [(1) All applications and reports submitted to the 
        Secretary under this part, and any amendments to such 
        applications or reports, shall be filed with the agency 
        or area education officer designated by the Director of 
        the Office of Indian Education 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 is submitted to the 
        Secretary.
          [(2) Any application that is submitted under this 
        part 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 in 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 with 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) Whenever the Secretary declines to provide a 
        grant under this part, 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,
                  [(B) provide assistance to the tribe or 
                tribal organization to overcome all stated 
                objections,
                  [(C) 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) The Secretary shall reconsider any amended 
        application submitted under this part within 60 days 
        after the amended application is submitted to the 
        Secretary.

[SEC. 5207. 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 5206, 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.--Each recipient of a grant provided 
under this part shall submit to the Secretary and to the tribal 
governing body (within the meaning of section 1121(j) of the 
Education Amendments of 1978) of the tribally controlled school 
an annual report that shall be limited to--
          [(1) an annual financial statement reporting revenue 
        and expenditures as defined by the cost accounting 
        established by the grantee;
          [(2) a biannual financial audit conducted pursuant to 
        the standards of the Single Audit Act of 1984;
          [(3) an annual submission to the Secretary of the 
        number of students served and a brief description of 
        programs offered under the grant; and
          [(4) a program evaluation conducted by an impartial 
        entity, to be based on the standards established for 
        purposes of subsection (c)(1)(A)(ii).
  [(c) Revocation of Eligibility.--
          [(1)(A) The Secretary shall not revoke a 
        determination that a school is eligible for assistance 
        under this part if--
                  [(i) the Indian tribe or tribal organization 
                submits the reports required under subsection 
                (b) with respect to the school, and
                  [(ii) at least one of the following 
                subclauses applies with respect to the school:
                          [(I) The school is certified or 
                        accredited by a State or regional 
                        accrediting association as recognized 
                        by the Secretary of Education, 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 students within the 
                        education programs are, or will be, 
                        accepted at grade level by a State 
                        certified or regionally accredited 
                        institution.
                          [(II) A determination made by the 
                        Secretary that there is a reasonable 
                        expectation that the accreditation 
                        described in subclause (I), or the 
                        candidacy in good standing for such 
                        accreditation, will be reached by the 
                        school within 3 years and that the 
                        program offered by the school is 
                        beneficial to the Indian students.
                          [(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) The school accepts the 
                        standards promulgated under section 
                        1121 of the Education Amendments of 
                        1978 and an evaluation of performance 
                        is conducted under this section in 
                        conformance with the regulations 
                        pertaining to Bureau operated schools 
                        by an impartial evaluator chosen by the 
                        grantee, but no grantee shall be 
                        required to comply with these standards 
                        to a higher degree than a comparable 
                        Bureau operated school.
                          [(V) A positive evaluation of the 
                        school is conducted once every 3 years 
                        under standards adopted by the 
                        contractor under a contract for a 
                        school entered into under the Indian 
                        Self-Determination and Education 
                        Assistance Act (or revisions of such 
                        standards agreed to by the Secretary 
                        and the grantee) prior to the date of 
                        enactment of this Act, such evaluation 
                        to be conducted by an impartial 
                        evaluator agreed to by the Secretary 
                        and the grantee. If the Secretary and a 
                        grantee other than the 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 
                        grantee which is the tribal governing 
                        body fail to agree on such an 
                        evaluator, this subclause shall not 
                        apply.
          [(B) The choice of standards employed for purposes of 
        subparagraph (A)(ii) shall be consistent with section 
        1121(e) of the Education Amendments of 1978.
          [(2) 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 1121(j) 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 any remedial actions.
        The Secretary shall provide such technical assistance 
        as is necessary to effect such remedial actions. Such 
        notice and technical assistance shall be in addition to 
        a hearing and appeal to be conducted pursuant to the 
        regulations described in section 5206(f)(1)(C).
  [(d) Applicability of Section Pursuant to Election Under 
Section 5209(b).--With respect to a tribally controlled school 
which receives assistance under this part pursuant to an 
election made under section 5209(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. 5208. PAYMENT OF GRANTS; INVESTMENT OF FUNDS.

  [(a) Payments.--
          [(1) Except as otherwise provided in this subsection, 
        the Secretary shall make payments to grantees under 
        this part in 2 payments, of which--
                  [(A) the first payment shall be made not 
                later than July 15 of each year in an amount 
                equal to one-half 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) 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.
          [(3) 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.
          [(4) The provisions of chapter 39 of title 31, United 
        States Code, shall apply to the payments required to be 
        made by paragraphs (1), (2), and (3).
          [(5) Paragraphs (1), (2), and (3) 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) Notwithstanding any other provision of law, any 
        interest or investment income that accrues on 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.
          [(2) Funds provided under this part may be--
                  [(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
                  [(B) deposited only into accounts that are 
                insured by an agency or instrumentality of the 
                United States.
  [(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. 5209. APPLICATION WITH RESPECT TO INDIAN SELF-DETERMINATION AND 
                    EDUCATION ASSISTANCE ACT.

  [(a) Certain Provisions To Apply to Grants.--All provisions 
of sections 5, 6, 7, 104, 105(f), 106(f), 109, and 111 of the 
Indian Self-Determination and Education Assistance Act, except 
those provisions relating to indirect costs and length of 
contract, shall apply to grants provided under this part.
  [(b) Election for Grant in Lieu of Contract.--
          [(1) 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 upon the date of enactment of this 
        Act 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) Any election made under paragraph (1) shall take 
        effect on the later of--
                  [(A) October 1 of the fiscal year succeeding 
                the fiscal year in which such election is made, 
                or
                  [(B) the date that is 60 days after the date 
                of such election.
          [(3) In any case in which the 60-day period referred 
        to in paragraph (2)(B) is less than 60 days before the 
        beginning of the succeeding fiscal year, such election 
        shall not take effect until the fiscal year after the 
        fiscal year succeeding the election. For fiscal year 
        1989, the Secretary may waive this paragraph for 
        elections received prior to September 30, 1988.
  [(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 any program or service if a grant has been made under 
this part to pay such expenses.
  [(d) Transfers and Carryovers.--
          [(1) A tribe or tribal organization assuming the 
        operation of 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 (25 
        U.S.C. 450 et seq.).
          [(2) A tribe or tribal organization assuming the 
        operation of a contract school with assistance under 
        this part shall be entitled to the transfer or use of 
        the 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 
        (25 U.S.C. 450 et seq.).
          [(3) 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 than to continue as a contract school shall be 
        entitled to any funds which would carrover from the 
        previous fiscal year as if such school were operated as 
        a contract school.
  [(e) Exceptions, Problems, and Disputes.--Any exception or 
problem cited in an audit conducted pursuant to section 
5207(b)(2) of this Act, any dispute regarding the amount of a 
grant under section 5205 (and the amount of any funds referred 
to in that section), any payments to be made under section 5208 
of this Act, and any dispute involving an administrative cost 
grant under section 1128A of the Education Amendments of 1978 
(25 U.S.C. 2008a) shall be handled under the provisions 
governing such exceptions, problems, or disputes in the case of 
contracts under the Indian Self-Determination and Education 
Assistance Act of 1975 (Public Law 93-658; 25 U.S.C. 450 et 
seq.). 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. 5210. 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. 5211. REGULATIONS.

  [The Secretary is authorized to issue regulations relating to 
the discharge of duties specifically assigned to the Secretary 
by this part. In all other matters relating to the details of 
planning, development, implementing, and evaluating grants 
under this part, the Secretary shall not issue regulations. 
Regulations issued pursuant to this part shall not have the 
standing of a Federal statute for the purposes of judicial 
review.

[SEC. 5212. DEFINITIONS.

  [For purposes of this part--
          [(1) The term ``eligible Indian student'' has the 
        meaning of such term in section 1128(f) of the 
        Education Amendments of 1978 (25 U.S.C. 2008(f)).
          [(2) The term ``Indian tribe'' means any Indian 
        tribe, band, nation, or other organized group or 
        community, including any Alaska Native Village or 
        regional or village corporation (as defined in or 
        established pursuant to the Alaskan 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.
          [(3)(A) The term ``tribal organization'' means--
                  [(i) the recognized governing body of any 
                Indian tribe, or
                  [(ii) any legally established organization of 
                Indians which--
                          [(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 its activities.
          [(B) In any case in which a grant is provided under 
        this part to an organization to perform services 
        benefiting more than one Indian tribe, the approval of 
        the governing bodies of Indian tribes representing 80 
        percent of those students attending the tribally 
        controlled school shall be considered a sufficient 
        tribal authorization for such grant.
          [(4) The term ``Secretary'' means the Secretary of 
        the Interior.
          [(5) The term ``tribally controlled school'' means a 
        school, operated by a tribe or a tribal organization, 
        enrolling students in kindergarten through grade 12, 
        including preschools, which is not a local educational 
        agency and which is not directly administered by the 
        Bureau of Indian Affairs.
          [(6) The term ``a 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 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 
        its public elementary or secondary schools. Such term 
        includes any other public institution or agency having 
        administrative control and direction of a public 
        elementary or secondary school.
          [(7) The term ``Bureau'' means the Bureau of Indian 
        Affairs of the Department of the Interior.]

SEC. 5202. FINDINGS.

  Congress, after careful review of the Federal Government's 
historical and special legal relationship with, and resulting 
responsibilities to, Indians, finds that--
          (1) 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 
        towards tribal and community control;
          (2) the Bureau of Indian Affairs' administration and 
        domination of the contracting process under such Act 
        has not provided the full opportunity to develop 
        leadership skills crucial to the realization of self-
        government and has denied Indians an effective voice in 
        the planning and implementation of programs for the 
        benefit of Indians which are responsive to the true 
        needs of Indian communities;
          (3) Indians will never surrender their desire to 
        control their relationships both among themselves and 
        with non-Indian governments, organizations, and 
        persons;
          (4) true self-determination in any society of people 
        is dependent upon an educational process which will 
        ensure the development of qualified people to fulfill 
        meaningful leadership roles;
          (5) the Federal administration of education for 
        Indian children has not effected the desired level of 
        educational achievement or created the diverse 
        opportunities and personal satisfaction that education 
        can and should provide;
          (6) true local control requires the least possible 
        Federal interference; and
          (7) the time has come to enhance the concepts made 
        manifest in the Indian Self-Determination and Education 
        Assistance Act.

SEC. 5203. DECLARATION OF POLICY.

  (a) Recognition.--Congress recognizes the obligation of the 
United States to respond to the strong expression of the Indian 
people for self-determination by assuring maximum Indian 
participation in the direction of educational services so as to 
render such services more responsive to the needs and desires 
of those 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 
through the establishment of a meaningful Indian self-
determination policy for education which will deter further 
perpetuation of Federal bureaucratic domination of programs.
  (c) National Goal.--Congress declares that a major national 
goal of the United States is to provide the resources, 
processes, and structure which will enable tribes and local 
communities to effect the quantity and quality of educational 
services and opportunities which will permit Indian children to 
compete and excel in the life areas of their choice and to 
achieve the measure of self-determination essential to their 
social and economic well-being.
  (d) Educational Needs.--Congress affirms the reality of the 
special and unique educational needs of Indian peoples, 
including the need for programs to meet the linguistic and 
cultural aspirations of Indian tribes and communities. These 
may best be met through a grant process.
  (e) Federal Relations.--Congress declares its commitment to 
these policies and its support, to the full extent of its 
responsibility, for Federal relations with the Indian Nations.
  (f) Termination.--Congress hereby repudiates and rejects 
House Resolution 108 of the 83d Congress and any policy of 
unilateral termination of Federal relations with any Indian 
Nation.

SEC. 5204. 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 as contract school;
                  (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) 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, but not 
        limited to, expenditures for--
                  (i) school operations, academic, educational, 
                residential, guidance and counseling, and 
                administrative purposes; and
                  (ii) support services for the school, 
                including transportation.
          (B) 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 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 Schoolsites.--
          (1) In general.--In the case of a grantee that 
        operates schools at more than one schoolsite, the 
        grantee may expend not more than the lesser of--
                  (A) 10 percent of the funds allocated for 
                such schoolsite under section 1128 of the 
                Education Amendments of 1978; or
                  (B) $400,000 of such funds, at any other 
                schoolsite.
          (2) Definition of schoolsite.--For purposes of this 
        subsection, the term ``schoolsite'' 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 as 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 as a Bureau operated school or as a school 
        operated under contract under title XI of the Education 
        Amendments of 1978.
          (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. 5205. 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) 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;
                  (ii) the Individuals with Disabilities 
                Education Act; or
                  (iii) any Federal education law other than 
                title XI of the Education Amendments of 1978.
          (B) 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(d), 
        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) 
        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 under section 5204(a), the grantee shall maintain 
        a separate account for such funds. At the end of the 
        period designated for the work covered by the funds 
        received, the grantee shall submit to the Secretary a 
        separate accounting of the work done and the funds 
        expended to the Secretary. Funds received from these 
        accounts may only be used for the purpose for which 
        they were appropriated and for the work encompassed by 
        the application or submission under which they were 
        received.
          (B) 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 government or other 
        organization provides funding for the new construction 
        equal to at least 25 percent of the total cost of such 
        new construction.
          (C) Where the appropriations measure or the 
        application submission does not stipulate a period for 
        the work covered by the funds so designated, the 
        Secretary and the grantee 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 grantee.
          (5) Enforcement of request to include funds.--If the 
        Secretary fails to carry out a request made under 
        subsection (a)(2) within 180 days of a request filed by 
        an Indian tribe or tribal organization to include in 
        such tribe or organization's grant the funds described 
        in subsection (a)(2), the Secretary shall be deemed to 
        have approved such request and the Secretary shall 
        immediately amend the grant accordingly. Such tribe or 
        organization may enforce its rights under subsection 
        (a)(2) and this paragraph, including any denial or 
        failure to act on such tribe or organization's request, 
        pursuant to the disputes authority described in section 
        5209(e).

SEC. 5206. ELIGIBILITY FOR GRANTS.

  (a) Rules.--
          (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 the 
        enactment of the No Child Left Behind 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 the enactment of the 
        No Child Left Behind 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) 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.
          (B) 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) 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) 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) 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; 
                        and
                  (ii) with respect to all education services 
                already available--
                          (I) geographic and demographic 
                        factors in the affected areas;
                          (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) The Secretary may not make a 
                determination under this paragraph that is 
                primarily based upon the geographic proximity 
                of comparable public education.
                  (D) 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) 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;
                  (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. 5207. 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 5206, 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) an annual submission to the Secretary of 
                the number of students served and a brief 
                description of programs offered under the 
                grant; and
                  (D) 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.--
                  (A) To tribally governing body.--Upon 
                completion of the report required under 
                paragraph (a), 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) To secretary.--Not later than 30 days 
                after receiving written confirmation that the 
                tribal governing body has received the report 
                send pursuant to subsection (A), the recipient 
                of the grant shall send a copy of the report to 
                the Secretary.
  (c) Revocation of Eligibility.--
          (1) In general.--(A) The Secretary shall not revoke a 
        determination that a school is eligible for assistance 
        under this part if--
                  (i) the Indian tribe or tribal organization 
                submits the reports required under subsection 
                (b) with respect to the school; and
                  (ii) at least one of the following subclauses 
                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) A determination made by the 
                        Secretary that there is a reasonable 
                        expectation that the accreditation 
                        described in subclause (I), or the 
                        candidacy in good standing for such 
                        accreditation, will be reached by the 
                        school within 3 years and that the 
                        program offered by the school is 
                        beneficial to the Indian students.
                          (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) The schools accept the standards 
                        promulgated under section 1121 of the 
                        Education Amendments of 1978 and an 
                        evaluation of performance is conducted 
                        under this section in conformance with 
                        the regulations pertaining to Bureau 
                        operated schools by an impartial 
                        evaluator chosen by the grantee, but no 
                        grantee shall be required to comply 
                        with these standards to a higher degree 
                        than a comparable Bureau operated 
                        school.
                          (V) A positive evaluation of the 
                        school is conducted by an impartial 
                        evaluator agreed upon by the Secretary 
                        and the grantee every 2 years under 
                        standards adopted by the contractor 
                        under a contract for a school entered 
                        into under the Indian Self-
                        Determination and Education Assistance 
                        Act (or revisions of such standards 
                        agreed to by the Secretary and the 
                        grantee) prior to the date of the 
                        enactment of this Act. If the Secretary 
                        and the grantee other than the 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 
                        grantee which is the tribal governing 
                        body fail to agree on such an 
                        evaluator, this subclause shall not 
                        apply.
          (B) The choice of standards employed for the purpose 
        of subparagraph (A)(ii) shall be consistent with 
        section 1121(e) of the Education Amendments of 1978.
          (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(14) 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 as is practicable to 
        effect such remedial actions. Such notice and technical 
        assistance shall be in addition to a hearing and appeal 
        to be conducted pursuant to the regulations described 
        in section 5206(f)(1)(C).
  (d) Applicability of Section Pursuant to Election Under 
Section 5209(b).--With respect to a tribally controlled school 
which receives assistance under this part pursuant to an 
election made under section 5209(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. 5208. 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 15 of each year in an amount equal to 
                85 percent 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) 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.
          (3) 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.
          (4) 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), (2), and (3).
          (5) Restrictions.--Paragraphs (1), (2), and (3) 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
                  (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. 5209. 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(e) (relating to limitation on 
        remedies relating to cost allowances).
          (9) Section 106(i) (relating to use of funds for 
        matching or cost participation requirements).
          (10) Section 106(j) (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 upon the date of the 
        enactment of the No Child Left Behind 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 later of--
                  (A) October 1 of the fiscal year succeeding 
                the fiscal year in which such election is made; 
                or
                  (B) 60 days after the date of such election.
          (3) Exception.--In any case in which the 60-day 
        period referred to in paragraph (2)(B) is less than 60 
        days before the beginning of the succeeding fiscal 
        year, such election shall not take effect until the 
        fiscal year after the fiscal year succeeding the 
        election.
  (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 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.
  (e) Exceptions, Problems, and Disputes.--Any exception or 
problem cited in an audit conducted pursuant to section 
5207(b)(2), 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 of 1975. 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. 5210. 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. 5211. REGULATIONS.

  The Secretary is authorized to issue regulations relating to 
the discharge of duties specifically assigned to the Secretary 
by this part. In all other matters relating to the details of 
planning, development, implementing, and evaluating grants 
under this part, the Secretary shall not issue regulations. 
Regulations issued pursuant to this part shall not have the 
standing of a Federal statute for the purposes of judicial 
review.

SEC. 5212. THE TRIBALLY CONTROLLED GRANT SCHOOL ENDOWMENT PROGRAM.

  (a) In General.--
          (1) Trust funds.--Each school receiving grants under 
        this part may establish, at a Federally insured banking 
        and savings institution, a trust fund for the purposes 
        of this section.
          (2) Authority of schools regarding trust funds.--The 
        school may provide--
                  (A) for the deposit into the trust fund, only 
                funds from non-Federal sources, except that the 
                interest on funds received from grants under 
                this part may be used for this purpose;
                  (B) for the deposit in the account of any 
                earnings on funds deposited in the account; and
                  (C) for the sole use of the school any 
                noncash, in-kind contributions of real or 
                personal property, such property may at any 
                time be converted to cash.
  (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.

SEC. 5213. DEFINITIONS.

  For the purposes of 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 of such term in 
        section 1127(f) of the Education Amendments of 1978.
          (3) Indian tribe.--The term ``Indian tribe'' means 
        any Indian tribe, band, nation, or other organized 
        group or community, including Alaska Native Village or 
        regional corporations (as defined in or established 
        pursuant to the Alaskan 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.
          (4) 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 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 its public elementary or 
        secondary schools. Such term includes any other public 
        institution or agency having administrative control and 
        direction of a public elementary or secondary school.
          (5) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.
          (6) Tribal organization.--(A) The term ``tribal 
        organization'' means--
                  (i) the recognized governing body of any 
                Indian tribe; or
                  (ii) any legally established organization of 
                Indians which--
                          (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 its activities.
          (B) In any case in which a grant is provided under 
        this part to an organization to provide services 
        benefiting more than one Indian tribe, the approval of 
        the governing bodies of Indian tribes representing 80 
        percent of those students attending the tribally 
        controlled school shall be considered a sufficient 
        tribal authorization for such grant.
          (7) Tribally controlled school.--The term ``tribally 
        controlled school'' means a school operated by a tribe 
        or a tribal organization, enrolling students in 
        kindergarten through grade 12, including preschools, 
        which is not a local educational agency and which is 
        not directly administered by the Bureau of Indian 
        Affairs.
                              ----------                              

      SECTION 411 OF THE NATIONAL EDUCATION STATISTICS ACT OF 1994

SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

  (a) * * *
  (b) Purpose; State Assessments.--
          (1) * * *
          [(2) State assessments.--(A)(i) The Commissioner, in 
        carrying out the National Assessment, may conduct State 
        assessments of student achievement in grades 4, 8, and 
        12.
          [(ii) Each such State assessment, in each subject 
        area and at each grade level, shall be conducted 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)(i) States wishing to participate in State 
        assessments shall enter into an agreement with the 
        Secretary pursuant to subsection (d)(2).
          [(ii) Such agreement shall contain information 
        sufficient to give States full information about the 
        process for consensus decisionmaking on objectives to 
        be tested, and the standards for sampling, test 
        administration, test security, data collection, 
        validation, and reporting.
          [(C) A participating State shall review and give 
        permission for the release of results from any test of 
        its 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.]
          (2) State assessments.--(A) The Commissioner, in 
        carrying out the National Assessment--
                  (i) may conduct State assessments of student 
                achievement in grades 4, 8, and 12; and
                  (ii) shall conduct annual State assessments 
                of student achievement in reading and 
                mathematics in grades 4 and 8 in order for 
                States to carry out section 1111(c)(2) of the 
                Elementary and Secondary Education Act of 1965.
          (B)(i) Except as provided in clause (ii), a 
        participating State shall review and give permission 
        for the release of results from any test of its 
        students administered as a part of a State assessment 
        prior to the release of the 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 
        that data.
          (ii) A State participating in the annual State 
        assessments of its students in reading and mathematics 
        in grades 4 and 8 shall be deemed to have given its 
        permission to release its data if it has an approved 
        plan under section 1111 of the Elementary and Secondary 
        Education Act of 1965.

           *       *       *       *       *       *       *

  [(d) Participation.--
          [(1) National and regional.--Participation in the 
        national and regional assessments by State and local 
        educational agencies shall be voluntary.
          [(2) State.--Participation in assessments made on a 
        State basis shall be voluntary. The Commissioner shall 
        enter into an agreement with any State that desires to 
        carry out an assessment for the State under this 
        subsection. Each such agreement shall contain 
        provisions designed to ensure that the State will--
                  [(A) participate in the assessment; and
                  [(B) pay from non-Federal sources the non-
                Federal share of such participation.
          [(3) Non-federal share.--(A) For each fiscal year, 
        the non-Federal share for the purpose of paragraph 
        (2)(B) shall be--
                  [(i) the cost of conducting the assessment at 
                the school level for all public schools in the 
                State sample;
                  [(ii) the cost of coordination within the 
                State; and
                  [(iii) other reasonable costs specified by 
                the Secretary in the agreement described in 
                paragraph (2), such as the cost of analyzing 
                and reporting the data.
          [(B) The non-Federal share of payments under this 
        paragraph may be in cash or in kind, fairly valued.
          [(C) The agreement described in paragraph (2) shall 
        describe the manner in which the costs of administering 
        the assessment to private nonprofit schools included in 
        the State sample will be met.]
  (d) Participation.--
          (1) National and regional participation.--
        Participation in the national and regional assessments 
        by State and local educational agencies shall be 
        voluntary.
          (2) State participation.--Participation in 
        assessments made on a State basis shall be voluntary.

           *       *       *       *       *       *       *

                              ----------                              

                 MCKINNEY-VENTO HOMELESS ASSISTANCE ACT

[Public Law 100-77]

           *       *       *       *       *       *       *

  TITLE VII--EDUCATION, TRAINING, AND COMMUNITY SERVICES PROGRAMS

           *       *       *       *       *       *       *

         [Subtitle B--Education for Homeless Children and Youth

[SEC. 721. STATEMENT OF POLICY.

  [It is the policy of the Congress that--
          [(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 youth;
          [(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 youth, the State will review and 
        undertake steps to revise such laws, regulations, 
        practices, or policies to ensure that homeless children 
        and youth are afforded the same free, appropriate 
        public education as provided to other children and 
        youth;
          [(3) homelessness alone should not be sufficient 
        reason to separate students from the mainstream school 
        environment; and
          [(4) homeless children and youth should have access 
        to the education and other services that such children 
        and youth need to ensure that such children and youth 
        have an opportunity to meet the same challenging State 
        student performance standards to which all students are 
        held.

[SEC. 722. GRANTS FOR STATE AND LOCAL ACTIVITIES FOR THE EDUCATION OF 
                    HOMELESS CHILDREN AND YOUTH.

  [(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), (e), (f), and (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) In general.--Subject to paragraph (2) and 
        section 724(c), from the amounts appropriated for each 
        fiscal year under section 726, 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 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 to all States for 
        that year, except that no State shall receive less than 
        $100,000.
          [(2) Reservation.--(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 Virgin Islands, Guam, American 
        Samoa, the Commonwealth of the Northern Mariana 
        Islands, and Palau (until the effective date of the 
        Compact of Free Association with the Government of 
        Palau), according to their respective need for 
        assistance under this subtitle, as determined by the 
        Secretary.
          [(B)(i) The Secretary is authorized to transfer one 
        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, as determined under 
        the Indian Self-Determination and Education Assistance 
        Act, that are consistent with the purposes of this Act.
          [(ii) The Secretary and the Secretary of the Interior 
        shall enter into an agreement, consistent with the 
        requirements of this part, 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 such clause. 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) Definition.--As used in this subsection, the 
        term ``State'' shall not include the Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, or Palau.
  [(d) Activities.--Grants under this section shall be used--
          [(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 children, 
        and homeless youth that enable such children and youth 
        to enroll in, attend, and succeed in school, or, if 
        appropriate, in preschool programs;
          [(3) to establish or designate an Office of 
        Coordinator of Education of Homeless Children and Youth 
        in the State educational agency in accordance with 
        subsection (f);
          [(4) to prepare and carry out the State plan 
        described in subsection (g); and
          [(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 youth.
  [(e) State and Local Grants.--
          [(1) In general.--(A) Subject to subparagraph (B), if 
        the amount allotted to the State educational agency for 
        any fiscal year under this subtitle exceeds the amount 
        such agency received for fiscal year 1990 under this 
        subtitle, such agency shall provide grants to local 
        educational agencies for purposes of section 723.
          [(B) The State educational agency may reserve not 
        more than the greater of 5 percent of the amount such 
        agency receives under this subtitle for any fiscal 
        year, or the amount such agency received under this 
        subtitle for fiscal year 1990, to conduct activities 
        under subsection (f) directly or through grants or 
        contracts.
          [(2) Special rule.--If the amount allotted to a State 
        educational agency for any fiscal year under this 
        subtitle is less than the amount such agency received 
        for fiscal year 1990 under this subtitle, such agency, 
        at such agency's discretion, may provide grants to 
        local educational agencies in accordance with section 
        723 or may conduct activities under subsection (f) 
        directly or through grants or contracts.
  [(f) Functions of the Office of Coordinator.--The Coordinator 
of Education of Homeless Children and Youth established in each 
State shall--
          [(1) estimate the number of homeless children and 
        youth in the State and the number of such children and 
        youth served with assistance provided under the grants 
        or contracts under this subtitle;
          [(2) gather, to the extent possible, reliable, valid, 
        and comprehensive information on the nature and extent 
        of the problems homeless children and youth have in 
        gaining access to public preschool programs and to 
        public elementary and secondary schools, the 
        difficulties in identifying the special needs of such 
        children and youth, 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 program under this subtitle in 
        allowing homeless children and youth to enroll in, 
        attend, and succeed in, school;
          [(3) develop and carry out the State plan described 
        in subsection (g);
          [(4) prepare and submit to the Secretary not later 
        than October 1, 1997, and on October 1 of every third 
        year thereafter, a report on the information gathered 
        pursuant to paragraphs (1) and (2) and such additional 
        information as the Secretary may require to carry out 
        the Secretary's responsibilities under this subtitle;
          [(5) facilitate coordination between the State 
        educational agency, the State social services agency, 
        and other agencies providing services to homeless 
        children and youth, including homeless children and 
        youth who are preschool age, and families of such 
        children and youth; and
          [(6) develop relationships and coordinate with other 
        relevant education, child development, or preschool 
        programs and providers of services to homeless 
        children, homeless families, and runaway and homeless 
        youth (including domestic violence agencies, shelter 
        operators, transitional housing facilities, runaway and 
        homeless youth centers, and transitional living 
        programs for homeless youth), to improve the provision 
        of comprehensive services to homeless children and 
        youth and their families.
  [(g) State Plan.--
          [(1) In general.--Each State shall submit to the 
        Secretary a plan to provide for the education of 
        homeless children and youth within the State, which 
        plan shall describe how such children and youth are or 
        will be given the opportunity to meet the same 
        challenging State student performance standards all 
        students are expected to meet, shall describe the 
        procedures the State educational agency will use to 
        identify such children and youth in the State and to 
        assess their special needs, and shall--
                  [(A) describe procedures for the prompt 
                resolution of disputes regarding the 
                educational placement of homeless children and 
                youth;
                  [(B) describe programs for school personnel 
                (including principals, attendance officers, 
                teachers and enrollment personnel), to heighten 
                the awareness of such personnel of the specific 
                needs of runaway and homeless youth;
                  [(C) describe procedures that ensure that 
                homeless children and youth who meet the 
                relevant eligibility criteria are able to 
                participate in Federal, State, or local food 
                programs;
                  [(D) describe 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; 
                        and
                          [(ii) homeless children and youth who 
                        meet the relevant eligibility criteria 
                        are able to participate in Federal, 
                        State, or local before- and after-
                        school care programs;
                  [(E) address problems set forth in the report 
                provided to the Secretary under subsection 
                (f)(4);
                  [(F) address other problems with respect to 
                the education of homeless children and youth, 
                including problems caused by--
                          [(i) transportation issues; and
                          [(ii) enrollment delays that are 
                        caused by--
                                  [(I) immunization 
                                requirements;
                                  [(II) residency requirements;
                                  [(III) lack of birth 
                                certificates, school records, 
                                or other documentation; or
                                  [(IV) guardianship issues;
                  [(G) demonstrate that the State educational 
                agency and local educational agencies in the 
                State have developed, and will review and 
                revise, policies to remove barriers to the 
                enrollment and retention of homeless children 
                and youth in schools in the State; and
                  [(H) contain an assurance that the State 
                educational agency and local educational 
                agencies in the State will adopt policies and 
                practices to ensure that homeless children and 
                youth are not isolated or stigmatized.
          [(2) Compliance.--Each plan adopted under this 
        subsection shall also show how the State will ensure 
        that local educational agencies in the State will 
        comply with the requirements of paragraphs (3) through 
        (9).
          [(3) Local educational agency requirements.--(A) The 
        local educational agency of each homeless child and 
        youth to be assisted under this subtitle shall, 
        according to the child's or youth's best interest, 
        either--
                  [(i) continue the child's or youth's 
                education in the school of origin--
                          [(I) for the remainder of the 
                        academic year; or
                          [(II) in any case in which a family 
                        becomes homeless between academic 
                        years, for the following academic year; 
                        or
                  [(ii) enroll the child or youth in any school 
                that nonhomeless students who live in the 
                attendance area in which the child or youth is 
                actually living are eligible to attend.
          [(B) In determining the best interests of the child 
        or youth under subparagraph (A), the local educational 
        agency shall comply, to the extent feasible, with the 
        request made by a parent or guardian regarding school 
        selection.
          [(C) For purposes of 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.
          [(D) 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 by the parents.
          [(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 according to the 
        provisions of paragraph (3), including--
                  [(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 education;
                  [(D) programs for gifted and talented 
                students; and
                  [(E) school meals programs.
          [(5) Records.--Any record ordinarily kept by the 
        school, including immunization records, academic 
        records, birth certificates, guardianship records, and 
        evaluations for special services or programs, of each 
        homeless child or youth shall be maintained--
                  [(A) so that the records are available, in a 
                timely fashion, when a child or youth enters a 
                new school district; and
                  [(B) in a manner consistent with section 444 
                of the General Education Provisions Act.
          [(6) Coordination.--Each local educational agency 
        serving homeless children and youth that receives 
        assistance under this subtitle shall coordinate with 
        local social services agencies and other agencies or 
        programs providing services to such children or youth 
        and their families, including services and programs 
        funded under the Runaway and Homeless Youth Act.
          [(7) Liaison.--(A) Each local educational agency that 
        receives assistance under this subtitle shall designate 
        a homelessness liaison to ensure that--
                  [(i) homeless children and youth enroll and 
                succeed in the schools of that agency; and
                  [(ii) homeless families, children, and youth 
                receive educational services for which such 
                families, children, and youth 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.
          [(B) State coordinators and local educational 
        agencies shall inform school personnel, service 
        providers, and advocates working with homeless families 
        of the duties of the liaisons.
          [(8) Review and revisions.--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 youth in schools selected in 
        accordance with paragraph (3). 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. Special 
        attention shall be given to ensuring the enrollment and 
        attendance of homeless children and youth who are not 
        currently attending school.
          [(9) Coordination.--Where applicable, each State 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 to minimize educational 
        disruption for children who become homeless.

[SEC. 723. LOCAL EDUCATIONAL AGENCY GRANTS FOR THE EDUCATION OF 
                    HOMELESS CHILDREN AND YOUTH.

  [(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 grants 
        to local educational agencies for the purpose of 
        facilitating the enrollment, attendance, and success in 
        school of homeless children and youth.
          [(2) Services.--Unless otherwise specified, services 
        under paragraph (1) may be provided through programs on 
        school grounds or at other facilities. Where such 
        services are provided through programs to homeless 
        students on school grounds, schools may provide 
        services to other children and youth who are determined 
        by the local educational agency to be at risk of 
        failing in, or dropping out of, schools, in the same 
        setting or classroom. To the maximum extent 
        practicable, such services shall be provided through 
        existing programs and mechanisms that integrate 
        homeless individuals with nonhomeless individuals.
          [(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 grant 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 according to 
guidelines issued by the Secretary. Each such application shall 
include--
          [(1) a description of the services and programs for 
        which assistance is sought and the problems to be 
        addressed through the provision of such services and 
        programs;
          [(2) 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;
          [(3) an assurance that the applicant complies with, 
        or will use requested funds to come into compliance 
        with, paragraphs (3) through (9) of section 722(g); and
          [(4) a description of policies and procedures that 
        the agency will implement to ensure that activities 
        carried out by the agency will not isolate or 
        stigmatize homeless children and youth.
  [(c) Awards.--
          [(1) In general.--The State educational agency shall, 
        in accordance with section 722(g) and from amounts made 
        available to such agency under section 726, award 
        grants under this section to local educational agencies 
        submitting an application under subsection (b) on the 
        basis of the need of such agencies.
          [(2) Need.--In determining need under paragraph (1), 
        the State educational agency may consider the number of 
        homeless children and youth enrolled in preschool, 
        elementary, and secondary schools within the area 
        served by the agency, and shall consider the needs of 
        such children and youth and the ability of the agency 
        to meet such needs. Such agency may also consider--
                  [(A) the extent to which the proposed use of 
                funds would facilitate the enrollment, 
                retention, and educational success of homeless 
                children and youth;
                  [(B) the extent to which the application 
                reflects coordination with other local and 
                State agencies that serve homeless children and 
                youth, as well as the State plan required by 
                section 722(g);
                  [(C) the extent to which the applicant 
                exhibits in the application and in current 
                practice a commitment to education for all 
                homeless children and youth; and
                  [(D) such other criteria as the agency 
                determines appropriate.
          [(3) Duration of grants.--Grants awarded under this 
        section shall be for terms not to exceed three years.
  [(d) Authorized Activities.--A local educational agency may 
use funds awarded under this section for activities to carry 
out the purpose of this subtitle, including--
          [(1) the provision of tutoring, supplemental 
        instruction, and enriched educational services that are 
        linked to the achievement of the same challenging State 
        content standards and challenging State student 
        performance standards the State establishes for other 
        children or youth;
          [(2) the provision of expedited evaluations of the 
        strengths and needs of homeless children and youth, 
        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 education, and school 
        meals 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 
        youth, the rights of such children and youth under this 
        Act, and the specific educational needs of runaway and 
        homeless youth;
          [(4) the provision of referral services to homeless 
        children and youth for medical, dental, mental, and 
        other health services;
          [(5) the provision of assistance to defray the excess 
        cost of transportation for students pursuant to section 
        722(g)(4), 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 children;
          [(7) the provision of before- and after-school, 
        mentoring, and summer programs for homeless children 
        and youth in which a teacher or other qualified 
        individual provides tutoring, homework assistance, and 
        supervision of educational activities;
          [(8) where necessary, the payment of fees and other 
        costs associated with tracking, obtaining, and 
        transferring records necessary to enroll homeless 
        children and youth in school, including birth 
        certificates, immunization records, academic records, 
        guardianship records, and evaluations for special 
        programs or services;
          [(9) the provision of education and training to the 
        parents of homeless children and youth about the rights 
        of, and resources available to, such children and 
        youth;
          [(10) the development of coordination between schools 
        and agencies providing services to homeless children 
        and youth, including programs funded under the Runaway 
        and Homeless Youth Act;
          [(11) the provision of pupil services (including 
        violence prevention counseling) and referrals for such 
        services;
          [(12) activities to address the particular needs of 
        homeless children and youth that may arise from 
        domestic violence;
          [(13) the adaptation of space and purchase of 
        supplies for nonschool facilities made available under 
        subsection (a)(2) to provide services under this 
        subsection;
          [(14) the provision of school supplies, including 
        those supplies to be distributed at shelters or 
        temporary housing facilities, or other appropriate 
        locations; and
          [(15) the provision of other extraordinary or 
        emergency assistance needed to enable homeless children 
        and youth to attend school.

[SEC. 724. SECRETARIAL RESPONSIBILITIES.

  [(a) Review of Plans.--In reviewing the State plans submitted 
by the State educational agencies under section 722(g), the 
Secretary shall use a peer review process and shall evaluate 
whether State laws, policies, and practices described in such 
plans adequately address the problems of homeless children and 
youth relating to access to education and placement as 
described in such plans.
  [(b) Technical Assistance.--The Secretary shall provide 
support and technical assistance to the State educational 
agencies to assist such agencies to carry out their 
responsibilities under this subtitle.
  [(c) 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.
  [(d) 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 making such grants and shall make such grants 
not later than the expiration of the 120-day period beginning 
on such date.
  [(e) Determination by Secretary.--The Secretary, based on the 
information received from the States and information gathered 
by the Secretary under subsection (d), 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).
  [(f) Reports.--The Secretary shall prepare and submit a 
report to the Committee on Education and Labor of the House of 
Representatives and the Committee on Labor and Human Resources 
of the Senate on the programs and activities authorized by this 
subtitle by December 31, 1997, and every third year thereafter.

[SEC. 725. DEFINITIONS.

  [For the purpose of this subtitle, unless otherwise stated--
          [(1) the term ``Secretary'' means the Secretary of 
        Education; and
          [(2) the term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of 
        Puerto Rico.

[SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

  [For the purpose of carrying out this subtitle, there are 
authorized to be appropriated $30,000,000 for fiscal year 1995 
and such sums as may be necessary for each of the fiscal years 
1996, 1997, 1998, and 1999.]

         Subtitle B--Education for Homeless Children and Youth

SEC. 721. STATEMENT OF POLICY.

  It is the policy of the Congress that--
          (1) each State educational agency ensure that each 
        child of a homeless individual and each homeless youth 
        has equal access to the same free, public education, 
        including a public preschool education, as provided to 
        other children and youth;
          (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 youth, the State review and 
        undertake steps to revise such laws, regulations, 
        practices, or policies to ensure that homeless children 
        and youth are afforded the same free, public education 
        as provided to other children and youth;
          (3) homelessness alone is not sufficient reason to 
        separate students from the mainstream school 
        environment; and
          (4) homeless children and youth must have access to 
        the education and other services that such children and 
        youth need to ensure that such children and youth have 
        an opportunity to meet the same challenging State 
        student academic achievement standards to which all 
        students are held.

SEC. 722. GRANTS FOR STATE AND LOCAL ACTIVITIES FOR THE EDUCATION OF 
                    HOMELESS CHILDREN AND YOUTH.

  (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), (e), (f), and (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) In general.--Subject to paragraph (2) and section 
        724(d), from the amounts appropriated for each fiscal 
        year under section 726, 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 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 
        $125,000 or \1/2\ of 1 percent of the amount 
        appropriated under section 726, whichever is greater.
          (2) Reservation.--(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 one 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, 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 this Act.
          (ii) The Secretary and the Secretary of the Interior 
        shall enter into an agreement, consistent with the 
        requirements of this part, 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 such clause. 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.--As used in this subsection, the 
        term ``State'' shall not include the United States 
        Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
  (d) Activities.--Grants under this section shall be used--
          (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 youth that enable such children and youth 
        to enroll in, attend, and succeed in school, or, if 
        appropriate, in preschool programs;
          (3) to establish or designate an Office of 
        Coordinator of Education of Homeless Children and Youth 
        in the State educational agency in accordance with 
        subsection (f);
          (4) to prepare and carry out the State plan described 
        in subsection (g); and
          (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 
        youth.
  (e) State and Local Grants.--
          (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 grants 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 grants 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.
          (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, either in a separate school or 
                in a separate program within a school, based 
                solely on such child's or youth's status as 
                homeless.
                  (B) Exception.--A State that operates a 
                separate school for homeless children as of the 
                day preceding the date of enactment of the 
                McKinney-Vento Homeless Education Assistance 
                Improvements Act of 2001--
                          (i) shall remain eligible to receive, 
                        and to distribute to local educational 
                        agencies, funds under this subtitle for 
                        such school; and
                          (ii) shall not distribute to local 
                        educational agencies in the State any 
                        funds received under this subtitle for 
                        use by any such schools not in 
                        operation as of such date of enactment.
  (f) Functions of the Office of Coordinator.--The Coordinator 
of Education of Homeless Children and Youth established in each 
State shall--
          (1) gather, to the extent possible, reliable, valid, 
        and comprehensive information on the nature and extent 
        of the problems homeless children and youth have in 
        gaining access to public preschool programs and to 
        public elementary and secondary schools, the 
        difficulties in identifying the special needs of such 
        children and youth, 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 program under this subtitle in 
        assisting homeless children and youth 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 information 
        gathered pursuant to paragraphs (1) and (2) at such 
        time and in such manner as the Secretary may require;
          (4) facilitate coordination between the State 
        educational agency, the State social services agency, 
        and other agencies providing services to homeless 
        children and youth, including homeless children, 
        including preschool-aged homeless children, and youth, 
        and families of such children and youth;
          (5) in order to improve the provision of 
        comprehensive education and related services to 
        homeless children and youth and their families, 
        coordinate and collaborate with--
                  (A) educators, including child development 
                and preschool program personnel;
                  (B) State and local providers of services to 
                homeless and runaway children and youth and 
                homeless families (including domestic violence 
                agencies, shelter operators, transitional 
                housing facilities, runaway and homeless youth 
                centers, and transitional living programs for 
                homeless youth);
                  (C) local educational agency liaisons for 
                homeless children and youth; and
                  (D) State and local community organizations 
                and groups representing homeless children and 
                youth and their families; and
          (6) provide technical assistance to local educational 
        agencies, in coordination with local liaisons 
        designated under subsection (g)(1)(J)(ii), to ensure 
        that local educational agencies comply with the 
        requirements of 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 youth within the State, which 
        plan shall--
                  (A) describe how such children and youth are 
                or will be given the opportunity to meet the 
                same challenging State student academic 
                achievement standards all students are expected 
                to meet;
                  (B) describe the procedures the State 
                educational agency will use to identify such 
                children and youth in the State and to assess 
                their special needs;
                  (C) describe procedures for the prompt 
                resolution of disputes regarding the 
                educational placement of homeless children and 
                youth;
                  (D) describe 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 youth;
                  (E) describe procedures that ensure that 
                homeless children and youth who meet the 
                relevant eligibility criteria are able to 
                participate in Federal, State, or local food 
                programs;
                  (F) describe 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;
                          (ii) homeless youth and youth 
                        separated from the public schools are 
                        identified and accorded equal access to 
                        appropriate secondary education and 
                        support services; and
                          (iii) homeless children and youth who 
                        meet the relevant eligibility criteria 
                        are able to participate in Federal, 
                        State, or local before- and after-
                        school care programs;
                  (G) address problems set forth in the report 
                provided to the Secretary under subsection 
                (f)(3);
                  (H) address other problems with respect to 
                the education of homeless children and youth, 
                including problems caused by 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) demonstrate 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 youth in schools in the State; and
                  (J) contain assurances that--
                          (i) except as provided in subsection 
                        (e)(3)(B), State and local educational 
                        agencies will adopt policies and 
                        practices to ensure that homeless 
                        children and youth are not segregated 
                        solely 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 liaison for 
                        homeless children and youth, 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, 
                                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 the 
                                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 or 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 liaisons established under this 
                subchapter.
          (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, either--
                          (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 the 
                                academic year; or
                                  (II) for the remainder of the 
                                academic year, if the child 
                                becomes permanently housed 
                                during the 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 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)(2) 
                        assists in placement or enrollment 
                        decisions under this subparagraph 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 pursuant to section 725(3) 
                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 liaison who shall assist in 
                obtaining necessary immunizations or 
                immunization or medical records in accordance 
                with subparagraph (E).
                  (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, of 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 
                        liaison designated under paragraph 
                        (1)(J)(ii), who shall carry out the 
                        dispute resolution process as described 
                        in paragraph (1)(A) 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.
                  (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 
                required by the local educational agency of a 
                parent or guardian of a nonhomeless child.
          (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--
                  (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; and
                  (E) school nutrition programs.
          (5) Coordination.--
                  (A) In general.--Each local educational 
                agency serving homeless children and youth 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 youth 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 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-
                Gonzales National Affordable Housing Act (42 
                U.S.C. 12705) to minimize educational 
                disruption for children and youth who become 
                homeless.
                  (C) Coordination purpose.--The coordination 
                required under subparagraphs (A) and (B) shall 
                be designed to--
                          (i) ensure that homeless children and 
                        youth 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.
          (6) Liaison.--
                  (A) Duties.--Each local liaison for homeless 
                children and youth, designated under paragraph 
                (1)(J)(ii), shall ensure that--
                          (i) homeless children and youth are 
                        identified by school personnel and 
                        through coordination activities with 
                        other entities and agencies;
                          (ii) homeless children and youth 
                        enroll in, and have an equal 
                        opportunity to succeed in, schools of 
                        that agency;
                          (iii) homeless families, children, 
                        and youth receive educational services 
                        for which such families, children, and 
                        youth 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 youth are 
                        informed of the education 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 youth 
                        is disseminated where such children and 
                        youth receive services under this Act, 
                        such as schools, family shelters, and 
                        soup kitchens;
                          (vi) enrollment disputes are mediated 
                        in accordance with subsection 
                        (g)(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)(ii), and is assisted in 
                        accessing transportation to the school 
                        selected in accordance with paragraph 
                        (3)(A).
                  (B) Notice.--State coordinators whose duties 
                are described under subsection (d) and local 
                educational agencies shall inform school 
                personnel, service providers, and advocates 
                working with homeless families of the duties of 
                the liaisons.
                  (C) Local and state coordination.--Local 
                educational agency liaisons for homeless 
                children and youth 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 
                youth.
          (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 youth in schools selected in accordance 
                with 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.
                  (C) Special attention.--Special attention 
                shall be given to ensuring the enrollment and 
                attendance of homeless children and youth who 
                are not currently attending school.

SEC. 723. LOCAL EDUCATIONAL AGENCY GRANTS FOR THE EDUCATION OF HOMELESS 
                    CHILDREN AND YOUTH.

  (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 grants 
        to local educational agencies for the purpose of 
        facilitating the enrollment, attendance, and success in 
        school of homeless children and youth.
          (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 youth 
                        with nonhomeless children and youth; 
                        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 youth who are determined 
                        by the local educational agency to be 
                        at risk of failing in, or dropping out 
                        of, schools, 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 segregates homeless children and 
                        youth from other children and youth, 
                        except as is 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 
                                youth.
          (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 grant 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. Each such 
application shall include--
          (1) an assessment of the educational and related 
        needs of homeless children and youth, as defined in 
        section 725(1) and (2), in the area served by such 
        agency (which may be undertaken as part of needs 
        assessments for other disadvantaged groups);
          (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); and
          (5) a description of policies and procedures, 
        consistent with section 722(e)(3)(B), that the agency 
        will implement to ensure that activities carried out by 
        the agency will not isolate or stigmatize homeless 
        children and youth.
  (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 youth enrolled in preschool, 
        elementary, and secondary schools within the area 
        served by the agency, and shall consider the needs of 
        such children and youth and the ability of the agency 
        to meet such needs. Such agency may also consider--
                  (A) the extent to which the proposed use of 
                funds would facilitate the enrollment, 
                retention, and educational success of homeless 
                children and youth;
                  (B) the extent to which the application--
                          (i) reflects coordination with other 
                        local and State agencies that serve 
                        homeless children and youth; and
                          (ii) meets 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 youth; and
                  (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--
                  (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;
                  (D) the extent to which homeless children and 
                youth 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 available services; and
                  (G) such other measures as the State 
                educational agency considers indicative of a 
                high-quality program.
          (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 to carry 
out the purpose of this subtitle, including--
          (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 youth;
          (2) the provision of expedited evaluations of the 
        strengths and needs of homeless children and youth, 
        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 
        youth, the rights of such children and youth under this 
        Act, and the specific educational needs of runaway and 
        homeless youth;
          (4) the provision of referral services to homeless 
        children and youth for medical, dental, mental, and 
        other health services;
          (5) the provision of assistance to defray the excess 
        cost of transportation for students pursuant to 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 children;
          (7) the provision of services and assistance to 
        attract, engage, and retain homeless youth (as 
        described in paragraphs (1) and (2) of section 725) in 
        public school programs and services provided to 
        nonhomeless youth;
          (8) the provision for homeless children and youth 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;
          (9) if necessary, the payment of fees and other costs 
        associated with tracking, obtaining, and transferring 
        records necessary to enroll homeless children and youth 
        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 youth about the rights 
        of, and resources available to, such children and 
        youth;
          (11) the development of coordination between schools 
        and agencies providing services to homeless children 
        and youth, 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 youth that may arise from 
        domestic violence;
          (14) the adaptation of space and purchase of supplies 
        for 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; and
          (16) the provision of other extraordinary or 
        emergency assistance needed to enable homeless children 
        and youth to attend school.

SEC. 724. SECRETARIAL RESPONSIBILITIES.

  (a) Review of 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 
plans adequately address the problems of homeless children and 
youth relating to access to education and placement as 
described in such plans.
  (b) Technical Assistance.--The Secretary shall provide 
support and technical assistance to the State educational 
agencies to assist such agencies to carry out their 
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 the 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 youth 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 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 (e), 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) Information.--
          (1) In general.--From funds appropriated under 
        section 726, the Secretary shall, either 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 youth;
                  (B) the education and related services such 
                children and youth receive;
                  (C) the extent to which such needs are being 
                met; and
                  (D) such other data and information as the 
                Secretary deems 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.
  (h) Report.--Not later than 4 years after the date of the 
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 youth, 
which shall include information on--
          (1) the education of homeless children and youth; and
          (2) the actions of the Department and the 
        effectiveness of the programs supported under this 
        subtitle.

SEC. 725. DEFINITIONS.

  In this subtitle:
          (1) The term ``homeless children and youth''--
                  (A) means individuals who lack a fixed, 
                regular, and adequate nighttime residence 
                (within the meaning of section 103(a)(1));
                  (B) includes--
                          (i) children and youth who are living 
                        in doubled-up accommodations sharing 
                        the housing of another 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) individuals 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)); 
                        and
                          (iii) children and youth who are 
                        living in cars, parks, public spaces, 
                        abandoned buildings or substandard 
                        housing, bus or train stations, or 
                        similar settings; and
                  (C) does not include migratory children (as 
                such term is defined in section 1309(2) of the 
                Elementary and Secondary Education Act of 
                1965), unless such children are staying in 
                accommodations not fit for habitation.
          (2) The term ``unaccompanied youth'' includes youth 
        not in the physical custody of a parent or guardian.
          (3) The terms ``enroll'' and ``enrollment'' include 
        within their meaning the right to attend classes and to 
        participate fully in school activities.
          (4) The terms ``local educational agency'' and 
        ``State educational agency'' have the meanings given 
        such terms in section 8101 of the Elementary and 
        Secondary Education Act of 1965.
          (5) The term ``Secretary'' means the Secretary of 
        Education.
          (6) The term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of 
        Puerto Rico.

SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

  For the purpose of carrying out this subtitle, there are 
authorized to be appropriated $60,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the fiscal years 
2003 through 2006.

           *       *       *       *       *       *       *

                              ----------                              

                    SECTION 1 OF PUBLIC LAW 106-400

SECTION 1. DESIGNATION.

  [Section 1 of] Section 101 of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11301 note; Public Law 100-
77) is amended by striking subsection (a) and inserting the 
following new subsection:
  ``(a) Short Title.--This Act may be cited as the `McKinney-
Vento Homeless Assistance Act'.''.
                              ----------                              

GOALS 2000: EDUCATE AMERICA ACT

           *       *       *       *       *       *       *

    TITLE II--NATIONAL EDUCATION REFORM LEADERSHIP, STANDARDS, AND 
                              ASSESSMENTS

                [PART A--NATIONAL EDUCATION GOALS PANEL

[SEC. 201. PURPOSE.

  [It is the purpose of this part to establish a bipartisan 
mechanism for--
          [(1) building a national consensus for education 
        improvement;
          [(2) reporting on progress toward achieving the 
        National Education Goals; and
          [(3) reviewing the voluntary national content 
        standards and voluntary national student performance 
        standards.

[SEC. 202. NATIONAL EDUCATION GOALS PANEL.

  [(a) Establishment.--There is established in the executive 
branch a National Education Goals Panel (hereafter in this 
title referred to as the ``Goals Panel'') to advise the 
President, the Secretary, and the Congress.
  [(b) Composition.--The Goals Panel shall be composed of 18 
members (hereafter in this part referred to as ``members''), 
including--
          [(1) 2 members appointed by the President;
          [(2) 8 members who are Governors, 3 of whom shall be 
        from the same political party as the President and 5 of 
        whom shall be from the opposite political party of the 
        President, appointed by the Chairperson and Vice 
        Chairperson of the National Governors' Association, 
        with the Chairperson and Vice Chairperson each 
        appointing representatives of such Chairperson's or 
        Vice Chairperson's respective political party, in 
        consultation with each other;
          [(3) 4 Members of the Congress, of whom--
                  [(A) 1 member shall be appointed by the 
                Majority Leader of the Senate from among the 
                Members of the Senate;
                  [(B) 1 member shall be appointed by the 
                Minority Leader of the Senate from among the 
                Members of the Senate;
                  [(C) 1 member shall be appointed by the 
                Majority Leader of the House of Representatives 
                from among the Members of the House of 
                Representatives; and
                  [(D) 1 member shall be appointed by the 
                Minority Leader of the House of Representatives 
                from among the Members of the House of 
                Representatives; and
          [(4) 4 members of State legislatures appointed by the 
        President of the National Conference of State 
        Legislatures, of whom 2 shall be of the same political 
        party as the President of the United States.
  [(c) Special Appointment Rules.--
          [(1) In general.--The members appointed pursuant to 
        subsection (b)(2) shall be appointed as follows:
                  [(A) If the Chairperson of the National 
                Governors' Association is from the same 
                political party as the President, the 
                Chairperson shall appoint 3 individuals and the 
                Vice Chairperson of such association shall 
                appoint 5 individuals.
                  [(B) If the Chairperson of the National 
                Governors' Association is from the opposite 
                political party as the President, the 
                Chairperson shall appoint 5 individuals and the 
                Vice Chairperson of such association shall 
                appoint 3 individuals.
          [(2) Special rule.--If the National Governors' 
        Association has appointed a panel that meets the 
        requirements of subsections (b) and (c), except for the 
        requirements of paragraph (4) of subsection (b), prior 
        to the date of enactment of this Act, then the members 
        serving on such panel shall be deemed to be in 
        compliance with the provisions of such subsections and 
        shall not be required to be reappointed pursuant to 
        such subsections.
          [(3) Representation.--To the extent feasible, the 
        membership of the Goals Panel shall be geographically 
        representative and reflect the racial, ethnic, and 
        gender diversity of the United States.
  [(d) Terms.--The terms of service of members shall be as 
follows:
          [(1) Presidential appointees.--Members appointed 
        under subsection (b)(1) shall serve at the pleasure of 
        the President.
          [(2) Governors.--Members appointed under paragraph 
        (2) of subsection (b) shall serve for 2-year terms, 
        except that the initial appointments under such 
        paragraph shall be made to ensure staggered terms with 
        one-half of such members' terms concluding every 2 
        years.
          [(3) Congressional appointees and state 
        legislators.--Members appointed under paragraphs (3) 
        and (4) of subsection (b) shall serve for 2-year terms.
  [(e) Date of Appointment.--The initial members shall be 
appointed not later than 60 days after the date of enactment of 
this Act.
  [(f) Initiation.--The Goals Panel may begin to carry out its 
duties under this part when 10 members of the Goals Panel have 
been appointed.
  [(g) Vacancies.--A vacancy on the Goals Panel shall not 
affect the powers of the Goals Panel, but shall be filled in 
the same manner as the original appointment.
  [(h) Travel.--Each member may be allowed travel expenses, 
including per diem in lieu of subsistence, as authorized by 
section 5703 of title 5, United States Code, for each day the 
member is engaged in the performance of duties for the Goals 
Panel away from the home or regular place of business of the 
member.
  [(i) Chairperson.--
          [(1) In general.--The members shall select a 
        Chairperson from among the members.
          [(2) Term and political affiliation.--The Chairperson 
        of the Goals Panel shall serve a 1-year term and shall 
        alternate between political parties.
  [(j) Conflict of Interest.--A member of the Goals Panel who 
is an elected official of a State which has developed content 
or student performance standards may not participate in Goals 
Panel consideration of such standards.
  [(k) Ex Officio Member.--If the President has not appointed 
the Secretary as 1 of the 2 members the President appoints 
pursuant to subsection (b)(1), then the Secretary shall serve 
as a nonvoting ex officio member of the Goals Panel.

[SEC. 203. DUTIES.

  [(a) In General.--The Goals Panel shall--
          [(1) report to the President, the Secretary, and the 
        Congress regarding the progress the Nation and the 
        States are making toward achieving the National 
        Education Goals established under title I of this Act, 
        including issuing an annual report;
          [(2) review voluntary national content standards and 
        voluntary national student performance standards;
          [(3) report on promising or effective actions being 
        taken at the national, State, and local levels, and in 
        the public and private sectors, to achieve the National 
        Education Goals; and
          [(4) help build a nationwide, bipartisan consensus 
        for the reforms necessary to achieve the National 
        Education Goals.
  [(b) Report.--
          [(1) In general.--The Goals Panel shall annually 
        prepare and submit to the President, the Secretary, the 
        appropriate committees of Congress, and the Governor of 
        each State a report that shall--
                  [(A) report on the progress of the United 
                States toward achieving the National Education 
                Goals; and
                  [(B) identify actions that should be taken by 
                Federal, State, and local governments to 
                enhance progress toward achieving the National 
                Education Goals and to provide all students 
                with a fair opportunity-to-learn.
          [(2) Form; data.--Reports shall be presented in a 
        form, and include data, that is understandable to 
        parents and the general public.

[SEC. 204. POWERS OF THE GOALS PANEL.

  [(a) Hearings.--
          [(1) In general.--The Goals Panel shall, for the 
        purpose of carrying out this part, conduct such 
        hearings, sit and act at such times and places, take 
        such testimony, and receive such evidence, as the Goals 
        Panel considers appropriate.
          [(2) Representation.--In carrying out this part, the 
        Goals Panel shall conduct hearings to receive reports, 
        views, and analyses of a broad spectrum of experts and 
        the public on the establishment of voluntary national 
        content standards, voluntary national student 
        performance standards, and State assessments.
  [(b) Information.--The Goals Panel may secure directly from 
any department or agency of the United States information 
necessary to enable the Goals Panel to carry out this part. 
Upon request of the Chairperson of the Goals Panel, the head of 
a department or agency shall furnish such information to the 
Goals Panel to the extent permitted by law.
  [(c) Postal Services.--The Goals Panel may use the United 
States mail in the same manner and under the same conditions as 
other departments and agencies of the United States.
  [(d) Use of Facilities.--The Goals Panel may, with consent of 
any agency or instrumentality of the United States, or of any 
State or political subdivision thereof, use the research, 
equipment, services, and facilities of such agency, 
instrumentality, State, or subdivision, respectively.
  [(e) Administrative Arrangements and Support.--
          [(1) In general.--The Secretary shall provide to the 
        Goals Panel, on a reimbursable basis, such 
        administrative support services as the Goals Panel may 
        request.
          [(2) Contracts and other arrangements.--The 
        Secretary, to the extent appropriate, and on a 
        reimbursable basis, shall make contracts and other 
        arrangements that are requested by the Goals Panel to 
        help the Goals Panel compile and analyze data or carry 
        out other functions necessary to the performance of 
        such responsibilities.
  [(f) Gifts.--The Goals Panel may accept, administer, and 
utilize gifts or donations of services, money, or property, 
whether real or personal, tangible or intangible.

[SEC. 205. ADMINISTRATIVE PROVISIONS.

  [(a) Meetings.--The Goals Panel shall meet on a regular 
basis, as necessary, at the call of the Chairperson of the 
Goals Panel or a majority of its members.
  [(b) Quorum.--A majority of the members shall constitute a 
quorum for the transaction of business.
  [(c) Voting and Final Decision.--
          [(1) Voting.--No individual may vote, or exercise any 
        of the powers of a member, by proxy.
          [(2) Final decisions.--
                  [(A) In making final decisions of the Goals 
                Panel with respect to the exercise of its 
                duties and powers the Goals Panel shall operate 
                on the principle of consensus among the members 
                of the Goals Panel.
                  [(B) Except as otherwise provided in this 
                part, if a vote of the membership of the Goals 
                Panel is required to reach a final decision 
                with respect to the exercise of its duties and 
                powers, then such final decision shall be made 
                by a three-fourths vote of the members of the 
                Goals Panel who are present and voting.
  [(d) Public Access.--The Goals Panel shall ensure public 
access to its proceedings (other than proceedings, or portions 
of proceedings, relating to internal personnel and management 
matters) and make available to the public, at reasonable cost, 
transcripts of such proceedings.

[SEC. 206. DIRECTOR AND STAFF; EXPERTS AND CONSULTANTS.

  [(a) Director.--The Chairperson of the Goals Panel, without 
regard to the provisions of title 5, United States Code, 
relating to the appointment and compensation of officers or 
employees of the United States, shall appoint a Director to be 
paid at a rate not to exceed the rate of basic pay payable for 
level V of the Executive Schedule.
  [(b) Appointment and Pay of Employees.--
          [(1) In general.--(A) The Director may appoint not 
        more than 4 additional employees to serve as staff to 
        the Goals Panel without regard to the provisions of 
        title 5, United States Code, governing appointments in 
        the competitive service.
          [(B) The employees appointed under subparagraph (A) 
        may be paid without regard to the provisions of chapter 
        51 and subchapter III of chapter 53 of that title 
        relating to classification and General Schedule pay 
        rates, but shall not be paid a rate that exceeds the 
        maximum rate of basic pay payable for GS-15 of the 
        General Schedule.
          [(2) Additional employees.--The Director may appoint 
        additional employees to serve as staff to the Goals 
        Panel in accordance with title 5, United States Code.
  [(c) Experts and Consultants.--The Goals Panel may procure 
temporary and intermittent services of experts and consultants 
under section 3109(b) of title 5, United States Code.
  [(d) Staff of Federal Agencies.--Upon the request of the 
Goals Panel, the head of any department or agency of the United 
States may detail any of the personnel of such agency to the 
Goals Panel to assist the Goals Panel in its duties under this 
part.

[SEC. 207. EARLY CHILDHOOD ASSESSMENT.

  [(a) In General.--The Goals Panel shall support the work of 
its Resource and Technical Planning Groups on School Readiness 
(hereafter in this section referred to as the ``Groups'') to 
improve the methods of assessing the readiness of children for 
school that would lead to alternatives to currently used early 
childhood assessments.
  [(b) Activities.--The Groups shall--
          [(1) develop a model of elements of school readiness 
        that address a broad range of early childhood 
        developmental needs, including the needs of children 
        with disabilities;
          [(2) create clear guidelines regarding the nature, 
        functions, and uses of early childhood assessments, 
        including assessment formats that are appropriate for 
        use in culturally and linguistically diverse 
        communities, based on model elements of school 
        readiness;
          [(3) monitor and evaluate early childhood 
        assessments, including the ability of existing 
        assessments to provide valid information on the 
        readiness of children for school; and
          [(4) monitor and report on the long-term collection 
        of data on the status of young children to improve 
        policy and practice, including the need for new sources 
        of data necessary to assess the broad range of early 
        childhood developmental needs.
  [(c) Advice.--The Groups shall advise and assist the 
Congress, the Secretary, the Goals Panel, and others regarding 
how to improve the assessment of young children and how such 
assessments can improve services to children.
  [(d) Report.--The Goals Panel shall provide reports on the 
work of the Groups to the appropriate committees of the 
Congress, the Secretary, and the public.]
          * * * * * * *

                [PART C--AUTHORIZATION OF APPROPRIATIONS

[SEC. 241. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated $3,000,000 for 
fiscal year 1994, and such sums as may be necessary for each of 
the four succeeding fiscal years, to carry out part A of this 
title.]
          * * * * * * *

               [TITLE VI--INTERNATIONAL EDUCATION PROGRAM

[SEC. 601. INTERNATIONAL EDUCATION PROGRAM.

  [(a) Program Established.--The Secretary, with the 
concurrence of the Director of the United States Information 
Agency and with the foreign policy guidance of the Secretary of 
State, shall carry out an International Education Program in 
accordance with this section that shall provide for--
          [(1) the study of international education programs 
        and delivery systems; and
          [(2) an international education exchange program.
  [(c) International Education Exchange.--
          [(1) Requirement.--
                  [(A) In general.--The Secretary, in 
                consultation with the Director of the United 
                States Information Agency, shall carry out a 
                program to be known as the International 
                Education Exchange Program. Under such program 
                the Secretary shall award grants to or enter 
                into contracts with organizations with 
                demonstrated effectiveness or expertise in 
                international achievement comparisons, in order 
                to--
                          [(i) make available to educators from 
                        eligible countries exemplary curriculum 
                        and teacher training programs in civics 
                        and government education and economic 
                        education developed in the United 
                        States;
                          [(ii) assist eligible countries in 
                        the adaptation and implementation of 
                        such programs or joint research 
                        concerning such programs;
                          [(iii) create and implement 
                        educational programs for United States 
                        students which draw upon the 
                        experiences of emerging constitutional 
                        democracies;
                          [(iv) provide a means for the 
                        exchange of ideas and experiences in 
                        civics and government education and 
                        economic education among political, 
                        educational, and private sector leaders 
                        of participating eligible countries; 
                        and
                          [(v) provide support for--
                                  [(I) 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
                                  [(II) effective participation 
                                in and the preservation and 
                                improvement of an efficient 
                                market economy.
                  [(B) Program administration.--The Secretary 
                and the Director of the United States 
                Information Agency, or their designees, shall 
                be jointly responsible for the design of the 
                program described in subparagraph (A). The 
                Secretary and the Director of the United States 
                Information Agency shall name to an oversight 
                committee an equal number of representatives. 
                Such committee shall determine the 
                specifications for requests for proposals, the 
                eligibility and review criteria for proposals, 
                and the review process for proposals, for 
                grants or contracts under this section. The 
                Director of the United States Information 
                Agency shall have particular responsibility for 
                ensuring that programs assisted under this 
                section are not duplicative of other efforts in 
                the target countries and that foreign partner 
                institutions are creditable.
                  [(C) Reservations.--In carrying out the 
                program described in subparagraph (A), there 
                shall be reserved in each fiscal year--
                          [(i) 50 percent of the amount 
                        available to carry out this subsection 
                        for civics and government education 
                        activities; and
                          [(ii) 50 percent of such amount 
                        available to carry out this subsection 
                        for economic education activities.
          [(2) Contract authorized.--
                  [(A) In general.--The Secretary, in 
                consultation with the Director of the United 
                States Information Agency, is authorized to 
                contract with independent nonprofit educational 
                organizations to carry out the provisions of 
                this subsection.
                  [(B) Number.--The Secretary, in consultation 
                with the Director of the United States 
                Information Agency, shall award at least 1 but 
                not more than 3 contracts described in 
                subparagraph (A) in each of the areas described 
                in clauses (i) and (ii) of paragraph (1)(B).
                  [(C) Avoidance of duplication.--The 
                Secretary, in consultation with the Director of 
                the United States Information Agency, shall 
                award contracts described in subparagraph (A) 
                so as to avoid duplication of activities in 
                such contracts.
                  [(D) Requirements.--Each organization with 
                which the Secretary enters into a contract 
                pursuant to subparagraph (A) shall--
                          [(i) be experienced in--
                                  [(I) the development and 
                                national implementation of 
                                curricular programs in civics 
                                and government education and 
                                economic education for students 
                                from grades kindergarten 
                                through 12 in local, 
                                intermediate, and State 
                                educational agencies, in 
                                schools funded by the Bureau, 
                                and in private schools 
                                throughout the Nation with the 
                                cooperation and assistance of 
                                national professional 
                                educational organizations, 
                                colleges and universities, and 
                                private sector organizations;
                                  [(II) the development and 
                                implementation of cooperative 
                                university and school-based 
                                inservice training programs for 
                                teachers of grades kindergarten 
                                through grade 12 using scholars 
                                from such relevant disciplines 
                                as political science, political 
                                philosophy, history, law and 
                                economics;
                                  [(III) the development of 
                                model curricular frameworks in 
                                civics and government education 
                                and economic education;
                                  [(IV) the administration of 
                                international seminars on the 
                                goals and objectives of civics 
                                and government education or 
                                economic education in 
                                constitutional democracies 
                                (including the sharing of 
                                curricular materials) for 
                                educational leaders, teacher 
                                trainers, scholars in related 
                                disciplines, and educational 
                                policymakers; and
                                  [(V) the evaluation of civics 
                                and government education or 
                                economic education programs; 
                                and
                          [(ii) have the authority to 
                        subcontract with other organizations to 
                        carry out the provisions of this 
                        subsection.
          [(3) Activities.--The international education program 
        described in this subsection shall--
                  [(A) provide eligible countries with--
                          [(i) seminars on the basic principles 
                        of United States constitutional 
                        democracy and economics, including 
                        seminars on the major governmental and 
                        economic institutions and systems in 
                        the United States, and visits to such 
                        institutions;
                          [(ii) visits to school systems, 
                        institutions of higher learning, and 
                        nonprofit organizations conducting 
                        exemplary programs in civics and 
                        government education and economic 
                        education in the United States;
                          [(iii) home stays in United States 
                        communities;
                          [(iv) translations and adaptations 
                        regarding 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;
                          [(v) translation of basic documents 
                        of United States constitutional 
                        government for use in eligible 
                        countries, such as The Federalist 
                        Papers, selected writings of Presidents 
                        Adams and Jefferson and the Anti-
                        Federalists, and more recent works on 
                        political theory, constitutional law 
                        and economics; and
                          [(vi) research and evaluation 
                        assistance to determine--
                                  [(I) 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
                                  [(II) effective participation 
                                in and the preservation and 
                                improvement of an efficient 
                                market economy;
                  [(B) provide United States participants 
                with--
                          [(i) seminars on the histories, 
                        economics, and governments of eligible 
                        countries;
                          [(ii) visits to school systems, 
                        institutions of higher learning, and 
                        organizations conducting exemplary 
                        programs in civics and government 
                        education and economic education 
                        located in eligible countries;
                          [(iii) home stays in eligible 
                        countries;
                          [(iv) assistance from educators and 
                        scholars in eligible countries in the 
                        development of curricular materials on 
                        the history, government and economics 
                        of such countries that are useful in 
                        United States classrooms;
                          [(v) opportunities to provide on-site 
                        demonstrations of United States 
                        curricula and pedagogy for educational 
                        leaders in eligible countries; and
                          [(vi) research and evaluation 
                        assistance to determine--
                                  [(I) 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
                                  [(II) effective participation 
                                in and improvement of an 
                                efficient market economy; and
                  [(C) assist participants from eligible 
                countries and the United States in 
                participating in international conferences on 
                civics and government education and economic 
                education for educational leaders, teacher 
                trainers, scholars in related disciplines, and 
                educational policymakers.
          [(4) Participants.--The primary participants in the 
        international education program assisted under this 
        subsection shall be leading educators in the areas of 
        civics and government education and economic education, 
        including curriculum and teacher training specialists, 
        scholars in relevant disciplines, and educational 
        policymakers, from the United States and eligible 
        countries.
          [(5) Personnel and technical experts.--The Secretary 
        is authorized to provide Department of Education 
        personnel and technical experts to assist eligible 
        countries to establish and implement a database or 
        other effective methods to improve educational delivery 
        systems, structure and organization.
          [(6) Definitions.--For the purpose of this subsection 
        the term ``eligible country'' means a Central European 
        country, an Eastern European country, Lithuania, 
        Latvia, Estonia, Georgia, the Commonwealth of 
        Independent States, and any country that formerly was a 
        republic of the Soviet Union whose political 
        independence is recognized in the United States.
  [(d) Authorization of Appropriations.--
          [(1) Repealed by section 301(e) of Public Law 105-277 
        (112 Stat. 2681-410).]
          [(2) International education exchange.--There are 
        authorized to be appropriated $10,000,000 for fiscal 
        year 1995, and such sums as may be necessary for each 
        of the fiscal years 1996 through 1999, to carry out 
        subsection (c).]
          * * * * * * *
                              ----------                              

                 TROOPS-TO-TEACHERS PROGRAM ACT OF 1999

                [TITLE XVII--TROOPS-TO-TEACHERS PROGRAM

[Sec. 1701. Short title; definitions.
[Sec. 1702. Authorization of Troops-to-Teachers Program.
[Sec. 1703. Eligible members of the Armed Forces.
[Sec. 1704. Selection of participants.
[Sec. 1705. Stipend and bonus for participants.
[Sec. 1706. Participation by States.
[Sec. 1707. Termination of original program; transfer of functions.
[Sec. 1708. Reporting requirements.
[Sec. 1709. Funds for fiscal year 2000.

[SEC. 1701. SHORT TITLE; DEFINITIONS.

  [(a) Short Title.--This title may be cited as the ``Troops-
to-Teachers Program Act of 1999''.
  [(b) Definitions.--In this title:
          [(1) The term ``administering Secretary'', with 
        respect to the Troops-to-Teachers Program, means the 
        following:
                  [(A) The Secretary of Defense with respect to 
                the Armed Forces (other than the Coast Guard) 
                for the period beginning on the date of the 
                enactment of this Act, and ending on the date 
                of the completion of the transfer of 
                responsibility for the Troops-to-Teachers 
                Program to the Secretary of Education under 
                section 1707.
                  [(B) The Secretary of Transportation with 
                respect to the Coast Guard for the period 
                referred to in subparagraph (A).
                  [(C) The Secretary of Education for any 
                period after the period referred to in 
                subparagraph (A).
          [(2) The term ``alternative certification or 
        licensure requirements'' means State or local teacher 
        certification or licensure requirements that permit a 
        demonstrated competence in appropriate subject areas 
        gained in careers outside of education to be 
        substituted for traditional teacher training course 
        work.
          [(3) The term ``member of the Armed Forces'' includes 
        a former member of the Armed Forces.
          [(4) The term ``State'' includes the District of 
        Columbia, American Samoa, the Federated States of 
        Micronesia, Guam, the Republic of the Marshall Islands, 
        the Commonwealth of the Northern Mariana Islands, the 
        Commonwealth of Puerto Rico, the Republic of Palau, and 
        the United States Virgin Islands.

[SEC. 1702. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM.

  [(a) Program Authorized.--The administering Secretary may 
carry out a program (to be known as the ``Troops-to-Teachers 
Program'')--
          [(1) to assist eligible members of the Armed Forces 
        after their discharge or release, or retirement, from 
        active duty to obtain certification or licensure as 
        elementary or secondary school teachers or as 
        vocational or technical teachers; and
          [(2) to facilitate the employment of such members by 
        local educational agencies identified under subsection 
        (b)(1).
  [(b) Identification of Local Educational Agencies With 
Teacher Shortages.--(1) In carrying out the Troops-to-Teachers 
Program, the administering Secretary shall periodically 
identify local educational agencies that--
          [(A) are receiving grants under title I of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6301 et seq.) as a result of having within their 
        jurisdictions concentrations of children from low-
        income families; or
          [(B) are experiencing a shortage of qualified 
        teachers, in particular a shortage of science, 
        mathematics, special education, or vocational or 
        technical teachers.
  [(2) The administering Secretary may identify local 
educational agencies under paragraph (1) through surveys 
conducted for that purpose or by using information on local 
educational agencies that is available to the administering 
Secretary from other sources.
  [(c) Identification of States With Alternative Certification 
Requirements.--In carrying out the Troops-to-Teachers Program, 
the administering Secretary shall also conduct a survey of 
States to identify those States that have alternative 
certification or licensure requirements for teachers, including 
those States that grant credit for service in the Armed Forces 
toward satisfying certification or licensure requirements for 
teachers.
  [(d) Limitation on Use of Funds for Management 
Infrastructure.--The administering Secretary may utilize not 
more than five percent of the funds available to carry out the 
Troops-to-Teachers Program for a fiscal year for purposes of 
establishing and maintaining the management infrastructure 
necessary to support the program.

[SEC. 1703. ELIGIBLE MEMBERS OF THE ARMED FORCES.

  [(a) Eligible Members.--Subject to subsection (c), the 
following members of the Armed Forces shall be eligible for 
selection to participate in the Troops-to-Teachers Program:
          [(1) Any member who--
                  [(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 six or more years of continuous 
                active duty immediately before the discharge or 
                release; and
                  [(B) satisfies such other criteria for 
                selection as the administering Secretary may 
                prescribe.
          [(2) Any member who applied for the teacher placement 
        program administered under section 1151 of title 10, 
        United States Code, as in effect before its repeal by 
        section 1707, and who satisfies the eligibility 
        criteria specified in subsection (c) of such section 
        1151.
          [(3) 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 the educational background required 
                by subsection (b); and
                  [(C) satisfies the criteria prescribed under 
                paragraph (1)(B).
  [(b) Educational Background.--(1) In the case of a member of 
the Armed Forces described in subsection (a)(3) who is applying 
for assistance for placement as an elementary or secondary 
school teacher, the administering Secretary shall require the 
member to have received a baccalaureate or advanced degree from 
an accredited institution of higher education.
  [(2) In the case of a member described in subsection (a)(3) 
who is applying for assistance for placement as a vocational or 
technical teacher, the administering Secretary shall require 
the member--
          [(A) to have received the equivalent of one year of 
        college from an accredited institution of higher 
        education and have 10 or more years of military 
        experience in a vocational or technical field; or
          [(B) to otherwise meet the certification or licensure 
        requirements for a vocational or technical teacher in 
        the State in which the member seeks assistance for 
        placement under the program.
  [(c) Ineligible Members.--A member of the Armed Forces 
described in subsection (a) is eligible to participate in the 
Troops-to-Teachers Program only if the member's last period of 
service in the Armed Forces was characterized as honorable.
  [(d) Information Regarding Program.--(1) The administering 
Secretary shall provide information regarding the Troops-to-
Teachers Program, and make applications for the program 
available, to members of the Armed Forces as part of 
preseparation counseling provided under section 1142 of title 
10, United States Code.
  [(2) The information provided to members shall--
          [(A) indicate the local educational agencies 
        identified under section 1702(b); and
          [(B) identify those States surveyed under section 
        1702(c) that have alternative certification or 
        licensure requirements for teachers, including those 
        States that grant credit for service in the Armed 
        Forces toward satisfying such requirements.

[SEC. 1704. SELECTION OF PARTICIPANTS.

  [(a) Submission of Applications.--Selection of eligible 
members of the Armed Forces to participate in the Troops-to-
Teachers Program shall be made on the basis of applications 
submitted to the administering Secretary on a timely basis. An 
application shall be in such form and contain such information 
as the administering Secretary may require.
  [(b) Timely Applications.--An application shall be considered 
to be submitted on a timely basis if the application is 
submitted as follows:
          [(1) In the case of a member of the Armed Forces who 
        is eligible under section 1703(a)(1) or 1703(a)(2), not 
        later than September 30, 2003.
          [(2) In the case of a member who is eligible under 
        section 1703(a)(3), not later than four years after the 
        date on which the member first receives retired or 
        retainer pay under title 10 or title 14, United States 
        Code.
  [(c) Selection Priorities.--In selecting eligible members of 
the Armed Forces to receive assistance for placement as 
elementary or secondary school teachers or vocational or 
technical teachers, the administering Secretary shall give 
priority to members who--
          [(1) 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 or secondary schools or in other schools 
        under the jurisdiction of a local educational agency; 
        or
          [(2) have educational or military experience in 
        another subject area identified by the administering 
        Secretary, in consultation with the National Governors 
        Association, as important for national educational 
        objectives and agree to seek employment in that subject 
        area in elementary or secondary schools.
  [(d) Selection Subject to Funding.--The administering 
Secretary may not select a member of the Armed Forces to 
participate in the Troops-to-Teachers Program unless the 
administering 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 
1705 with respect to that member.
  [(e) Participation Agreement.--A member of the Armed Forces 
selected to participate in the Troops-to-Teachers Program shall 
be required to enter into an agreement with the administering 
Secretary in which the member agrees--
          [(1) to obtain, within such time as the administering 
        Secretary may require, certification or licensure as an 
        elementary or secondary school teacher or vocational or 
        technical teacher; and
          [(2) to accept an offer of full-time employment as an 
        elementary or secondary school teacher or vocational or 
        technical teacher for not less than four school years 
        with a local educational agency identified under 
        section 1702, to begin the school year after obtaining 
        that certification or licensure.
  [(f) Exceptions to Violation Determination.--A participant in 
the Troops-to-Teachers Program shall not be considered to be in 
violation of an agreement entered into under subsection (e) 
during any period in which the participant--
          [(1) is pursuing a full-time course of study related 
        to the field of teaching at an eligible institution;
          [(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 three 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 seeking and unable to find full-time 
        employment as a teacher in an elementary 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 
        administering Secretary.

[SEC. 1705. STIPEND AND BONUS FOR PARTICIPANTS.

  [(a) Stipend Authorized.--(1) Subject to paragraph (2), the 
administering Secretary shall pay to each participant in the 
Troops-to-Teachers Program a stipend in an amount equal to 
$5,000.
  [(2) The total number of stipends that may be paid under 
paragraph (1) in any fiscal year may not exceed 3,000.
  [(b) Bonus Authorized.--(1) Subject to paragraph (2), the 
administering Secretary may, in lieu of paying a stipend under 
subsection (a), pay a bonus of $10,000 to each participant in 
the Troops-to-Teachers Program who agrees under section 1704(e) 
to accept full-time employment as an elementary or secondary 
school teacher or vocational or technical teacher for not less 
than four years in a high need school.
  [(2) The total number of bonuses that may be paid under 
paragraph (1) in any fiscal year may not exceed 1,000.
  [(3) In this subsection, the term ``high need school'' means 
an elementary school or secondary school that meets one or more 
of the following criteria:
          [(A) The school has a drop out rate that exceeds the 
        national average school drop out rate.
          [(B) The school has a large percentage of students 
        (as determined by the Secretary of Education in 
        consultation with the National Assessment Governing 
        Board) who speak English as a second language.
          [(C) The school has a large percentage of students 
        (as so determined) who are at risk of educational 
        failure by reason of limited proficiency in English, 
        poverty, race, geographic location, or economic 
        circumstances.
          [(D) At least one-half of the students of the school 
        are from families with an income below the poverty line 
        (as that term is defined by the Office of Management 
        and Budget and revised annually in accordance with 
        section 673(2) of the Community Services Block Grant 
        Act (42 U.S.C. 9902(2)) applicable to a family of the 
        size involved.
          [(E) The school has a large percentage of students 
        (as so determined) who qualify for assistance under 
        part B of the Individuals with Disabilities Education 
        Act (20 U.S.C. 1411 et seq.).
          [(F) The school meets any other criteria established 
        by the administering Secretary in consultation with the 
        National Assessment Governing Board.
  [(c) Treatment of Stipend and Bonus.--Stipends and bonuses 
paid under this section shall be taken into account in 
determining the eligibility of the participant concerned for 
Federal student financial assistance provided under title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
  [(d) Reimbursement Under Certain Circumstances.--(1) If a 
participant in the Troops-to-Teachers Program fails to obtain 
teacher certification or licensure or employment as an 
elementary or secondary school teacher or vocational or 
technical teacher as required by the agreement under section 
1704(e) or voluntarily leaves, or is terminated for cause, from 
the employment during the four years of required service in 
violation of the agreement, the participant shall be required 
to reimburse the administering Secretary for any stipend paid 
to the participant under subsection (a) in an amount that bears 
the same ratio to the amount of the stipend as the unserved 
portion of required service bears to the four years of required 
service.
  [(2) If a participant in the Troops-to-Teachers Program who 
is paid a bonus under subsection (b) fails to obtain employment 
for which the bonus was paid as required by the agreement under 
section 1704(e), or voluntarily leaves or is terminated for 
cause from the employment during the four years of required 
service in violation of the agreement, the participant shall be 
required to reimburse the administering Secretary for any bonus 
paid to the participant under that subsection in an amount that 
bears the same ratio to the amount of the bonus as the unserved 
portion of required service bears to the four years of required 
service.
  [(3) The obligation to reimburse the administering 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 administering Secretary.
  [(4) Any amount owed by a participant under this subsection 
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 
ninety days or less and shall accrue from the day on which the 
participant is first notified of the amount due.
  [(e) Exceptions to Reimbursement Requirement.--A participant 
in the Troops-to-Teachers Program shall be excused from 
reimbursement under subsection (d) if the participant becomes 
permanently totally disabled as established by sworn affidavit 
of a qualified physician. The administering Secretary may also 
waive reimbursement in cases of extreme hardship to the 
participant, as determined by the administering Secretary.
  [(f) Relationship to Educational Assistance Under Montgomery 
GI Bill.--The receipt by a participant in the Troops-to-
Teachers Program of any assistance under the program 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. 1706. PARTICIPATION BY STATES.

  [(a) Discharge of State Activities Through Consortia of 
States.--The administering Secretary may permit States 
participating in the Troops-to-Teachers 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) Subject to paragraph (2), the 
administering Secretary may make grants to States participating 
in the Troops-to-Teachers 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 in 
schools in such States or consortia of States.
  [(2) The total amount of grants under paragraph (1) in any 
fiscal year may not exceed $4,000,000.

[SEC. 1707. TERMINATION OF ORIGINAL PROGRAM; TRANSFER OF FUNCTIONS.

  [(a) Termination.--(1) Section 1151 of title 10, United 
States Code, is repealed.
  [(2) The table of sections at the beginning of chapter 58 of 
such title is amended by striking the item relating to section 
1151.
  [(3) The repeal of such section shall not affect the validity 
or terms of any agreement entered into before the date of the 
enactment of this Act under subsection (f) of such section, or 
to pay assistance, make grants, or obtain reimbursement in 
connection with such an agreement under subsections (g), (h), 
and (i) of such section, as in effect before its repeal.
  [(b) Transfer of Functions.--(1) The Secretary of Defense, 
the Secretary of Transportation, and the Secretary of Education 
shall provide for the transfer to the Secretary of Education of 
any on-going functions and responsibilities of the Secretary of 
Defense and the Secretary of Transportation with respect to--
          [(A) the program authorized by section 1151 of title 
        10, United States Code, before its repeal by subsection 
        (a)(1); and
          [(B) the Troops-to-Teachers Program for the period 
        beginning on the date of the enactment of this Act and 
        ending on September 30, 2000.
  [(2) The Secretaries referred to in paragraph (1) shall 
complete the transfer under such paragraph not later than 
October 1, 2000.
  [(3) After completion of the transfer, the Secretary of 
Education shall discharge that Secretary's functions and 
responsibilities with respect to the program in consultation 
with the Secretary of Defense and the Secretary of 
Transportation with respect to the Coast Guard.

[SEC. 1708. REPORTING REQUIREMENTS.

  [(a) Report Required.--Not later than March 31, 2001, the 
Secretary of Education (in consultation with the Secretary of 
Defense and the Secretary of Transportation) and the 
Comptroller General shall each submit to Congress a report on 
the effectiveness of the Troops-to-Teachers Program in the 
recruitment and retention of qualified personnel by local 
educational agencies identified under section 1702(b).
  [(b) Elements of Report.--The report under subsection (a) 
shall include information on the following:
          [(1) The number of participants in the Troops-to-
        Teachers Program.
          [(2) The schools in which such participants are 
        employed.
          [(3) The grade levels at which such participants 
        teach.
          [(4) The subject matters taught by such participants.
          [(5) The effectiveness of the teaching of such 
        participants, as indicated by any relevant test scores 
        of the students of such participants.
          [(6) The extent of any academic improvement in the 
        schools in which such participants teach by reason of 
        their teaching.
          [(7) The rates of retention of such participants by 
        the local educational agencies employing such 
        participants.
          [(8) The effect of any stipends or bonuses under 
        section 1705 in enhancing participation in the program 
        or in enhancing recruitment or retention of 
        participants in the program by the local educational 
        agencies employing such participants.
          [(9) Such other matters as the Secretary of Education 
        or the Comptroller General, as the case may be, 
        considers appropriate.
  [(c) Recommendations.--The report of the Comptroller General 
under this section shall also include any recommendations of 
the Comptroller General as to means of improving the Troops-to-
Teachers Program, including means of enhancing the recruitment 
and retention of participants in the program.

[SEC. 1709. FUNDS FOR FISCAL YEAR 2000.

  [Of the amount authorized to be appropriated by section 301 
for operation and maintenance for fiscal year 2000, $3,000,000 
shall be available for purposes of carrying out the Troops-to-
Teachers Program.]

                       ADDITIONAL VIEWS TO H.R. 1

    We commend the Committee on Education and the Workforce for 
reporting a bill to reauthorize the Elementary and Secondary 
Education Act that will reach the House floor with broad 
bipartisan support. With its focus on high standards for all 
children and results-based accountability, the bill seeks to 
build upon lessons learned since the previous reauthorization 
in 1994. Moreover, H.R. 1 provides better targeting to reach 
these goals and authorizes additional resources for these 
purposes.
    Notwithstanding the many virtues of H.R. 1, we remain 
concerned that the bill goes too far in its reliance on 
standardized testing. Recent years have seen a growing trend in 
education policy toward more standardized testing of students 
at all levels of their education despite uncertain scientific 
evidence that the tests currently in use are fair and accurate. 
In fact, studies have consistently shown that many popular 
standardized tests are poorly designed, may be discriminatory 
toward poor and minority students, and are not sufficiently 
aligned to the content taught in schools. Furthermore, we have 
not to date had an appropriate national evaluation of the 
trade-offs increased testing requires in other aspects of the 
curriculum. With more and more time being devoted to 
preparation for standardized tests, many schools have been 
forced to sharply curtail their offerings in civics, social 
studies, and the arts. We would argue that reductions in these 
subjects deprive students of vital components in a balanced 
education.
    Given these realities, the testing provisions in H.R. 1 
raise questions. With its requirement of annual testing in 
grades 3 through 8, the bill significantly expands the number 
and scope of standardized tests in our schools. It does so 
without fully addressing the cost these tests exact in dollars 
at the local level, in their impact on the quality of education 
in our schools, or in the psychological effects of yearly 
testing on our students. Further, H.R. 1 does not provide 
adequate assurances that the tests being given will be fair and 
accurate. By allowing states to substitute their own 
assessments for the National Assessment of Educational Progress 
as a benchmark against which to judge their annual tests in 
reading and mathematics, H.R. 1, offers no student performance. 
A bill of such scope, with such profound importance in the 
lives of our nation's children should confront these issues 
more directly and realistically than H.R. 1, as reported, does. 
We will continue to work to address these concerns as the 
legislation moves forward.

                                   John F. Tierney.
                                   Betty McCollum.
                                   Robert C. Scott.

                       ADDITIONAL VIEWS TO H.R. 1

                              introduction

    We are pleased that H.R. 1 has been reported with a strong 
bipartisan vote, and has the enthusiastic support of the Bush 
Administration. It provides real accountability for results, 
ensures that all children are taught by qualified teaches, and 
targets critical resources to the schools that need them the 
most. H.R. 1 as reported also avoids divisive issues such as a 
federal funding of private school vouchers, and block grants to 
states which would undermine strong, new accountability 
requirements, and sabotage local control over education.
    In order to get the job of school reform done right, H.R. 1 
authorizes substantial new resources to schools--over $5 
billion more than last years's appropriation levels for 
elementary and secondary schools. Additional investments 
promised in H.R. 1 are critical to the success of education 
reform.
    Given this bipartisan support for greater investment in 
education reform, it is disappointing to us that the recently 
passed budget resolution fails to make any new investments in 
education. This is in direct contradiction to the commitments 
provided in H.R. 1. We implore the Republican leadership to 
make good on this bipartisan promise. We intend to continue the 
fight to ensure that the Congress makes good on H.R. 1's 
promise for new investments in education.

                    real accountability for results

    H.R. 1 strengthens accountability for results, increases 
the amount of resources and targeting to disadvantaged areas, 
supports America's teachers through quality training, provides 
parents with meaningful information and involvement, and 
ensures we maintain critical national education priorities.
    H.R. 1 provides an important new focus by adding State, 
school district and school report cards on student academic 
performance. It significantly increases the amount of resources 
for teacher training--and makes clear that all States require 
their teachers to become fully qualified by the year 2005. H.R. 
1 also preserves Title I's targeting of resources to high 
poverty school districts and schools.
    H.R. 1 preserves and builds upon many of the core advances 
that the last reauthorization of ESEA in 1994 instituted. It 
maintains the requirements for State systemic reform, based on 
challenging standards and aligned assessments. Further building 
on 1994'sassessment requirement, the bill includes annual 
testing for children in grades 3 through 8 and requires States to check 
their performance against the National Assessment of Education Progress 
(NAEP) or an alternative assessment.
    H.R. 1 enhances accountability and resources to Title I--
both of which are critical to education reform. It requires all 
children to perform well in school; it helps close the 
achievement gap between disadvantaged groups and their more 
advantaged peers; it requires the reporting of data in a way 
that allows schools and parents to gauge the success of at-risk 
populations; it increases teacher and paraprofessional quality 
requirements; and it provides a strong focus on turning around 
and struggling schools through the investment of additional 
help and resources.
    We can no longer tolerate low-performing schools that place 
the education of our children at risk. This means that States 
and school districts will need to provide substantive 
intervention to help the students of low-performing schools 
reach high standards. If schools are still failing after they 
are given the resources and opportunity to succeed--then 
consequences must exist. This bill will accomplish these 
important reforms.

          making critical new investments for education reform

    H.R. 1 also adds significant resources to ESEA, while 
increasing targeting to the most disadvantaged areas. In the 
past six appropriations cycles, funding for the Department of 
Education has increased by an average of 13 percent. H.R. 1 
would increase funding for ESEA programs by $5.5 to $24 billion 
in FY 2002, a 32 percent increase. H.R. 1. also includes a 
doubling of the Title I authorization by FY 2006 to $17.2 
billion. Coupled with these increases in overall funding are 
significantly more targeted formulas. Funding for teacher 
quality will be distributed on a 80% poverty, 20% population 
formula, rather than the 50% poverty, 50% population formula 
under current law. Technology funding is more targeted in H.R. 
1, by moving to a combination of formula and competitive grants 
targeted on Title I and the highest poverty school districts in 
a State. Lastly, targeting of Safe and Drug Free Schools 
funding is more focused on areas of need.

                     National Education Priorities

    The bill also expands parent information and involvement. 
The bill preserves the requirement that 1% of a school 
district's Title I allocation be used to encourage parental 
involvement. Added are provisions to ensure that parents 
receive information in a form and language they can understand. 
Lastly, parents are empowered with ``right-to-know'' provisions 
that entitle them to information on the professional 
qualifications of their children's teachers.
    We are pleased the reported version of H.R. 1 maintains 
critical national priorities for after-school programs, such as 
the 21st Century Community Learning Centers, the National 
Writing Project, Civic and International Education and Women's 
Educational Equity Act.

                preserving bipartisan support for h.r. 1

    While the bill as introduced included numerous provisions 
allowing private school vouchers, including the voucherizing of 
Title I, a bipartisan majority of the Committee voted to strike 
the voucher provisions. This vote, in addition to the absence 
of Straight A's from the legislation, made it possible for us 
to support H.R. 1 on final passage. Inclusion of either of 
these items as proceed with floor consideration will jeopardize 
bipartisan support for this legislation.

                    additional democratic priorities

    Also, we believe several amendments offered by Democratic 
Members during Committee consideration deserve further 
deliberation and consideration when this bill is considered on 
the House Floor. These amendments include: Funding for School 
Renovation and Construction; Class-Size Reduction; Universal 
and Expanded Preschool programs; and Go-Girls program 
(training, mentoring and educational opportunities for girls to 
enter the mathematics, science, engineering and science); 
safeguards against inappropriate high stakes testing, 
maintaining the school wide percentage at 50%; Smaller Learning 
Communities (separate funding for smaller schools and schools 
within schools); reinstating the Coordinated Services program, 
and providing training for school library media specialists.

                           additional issues

    We are pleased by commitments from the majority to continue 
to work on some of these concerns between Committee action and 
Floor consideration. Chief among these concerns are provisions 
remaining in the bill regarding segregation of homeless 
students and teacher liability provisions. Presently, the bill 
allows State receiving funds under the McKinney-Vento Homeless 
Assistance Act to segregate homeless students from their housed 
peers and use Federal McKinney Funds to support segregated 
schools that presently exist. We object to this provision 
because it denies homeless children equal educational 
opportunities and rewards noncompliance with the original 
intent of the McKinney-Vento statute. We have ended the 
practice of segregating various segments of our population 
through actions by the Court and Congress. We should not go 
back on these historic advances through the adoption of this 
provision.
    In addition, we continue to have concerns over the 
inclusion of a provision providing teachers immunity from 
Federal liability claims. This immunity exempts a teacher 
frommonetary damages when an action was taken by the teacher to 
maintain disciple. We are concerned that the immunity allowed under 
this provision will permit, or even encourage inappropriate actions 
such as corporal punishment in our schools. The fact that this 
provision will have the affect of preventing causes of action against 
teachers for the violations of a child's civil rights troubles us 
greatly. The Majority has committed to further discussions on this 
matter and we look forward to resolving it in a mutually agreeable 
fashion prior consideration.
    Also, we have continually voiced concern during this 
process over the inclusion of an alternative assessment, rather 
than simply utilizing the National Assessment of Education 
Progress (NAEP), to ensure State assessment results are valid. 
Allowing States to use an alternative assessment as a ``check'' 
on the results of their own State assessment will not produce 
the accountability the President and Congress is seeking.
    Lastly, we continue to be concerned about the impact of 
parental consent provisions included in the legislation for 
limited English proficient children to receive bilingual 
education services and the lack of a sufficient authorization 
level for the Title III, Part A Bilingual Education program. As 
we proceed with Floor consideration and Conference Committee 
Action we hope both of these concerns will be further 
addressed.

                                   George Miller.
                                   Major Owens.
                                   Lynn Woolsey.
                                   Ruben Hinojosa.
                                   John Tierney.
                                   Loretta Sanchez.
                                   Dennis Kucinich.
                                   Rush Holt.
                                   Dale Kildee.
                                   Robert Andrews.
                                   Robert C. Scott.
                                   Carolyn McCarthy.
                                   Ron Kind.
                                   Harold E. Ford, Jr.
                                   Hilda Solis.
                                   Betty McCollum.

                       DISSENTING VIEWS ON H.R. 1

                            i. introduction

    In 1998, the House Education and the Workforce Oversight 
Subcommittee began a comprehensive investigation into the 
federal government's role in the education of America's 
children. After an exhaustive study and numerous field hearings 
across the country with parents, students and administrators, 
Education at a Crossroads was released detailing the hundreds 
of education related programs across 39 agencies that cost 
taxpayers $120 billion a year. Despite the enormous increase in 
federal spending over the past decade alone, it found that 
academic achievement has still not improved. In addition, the 
achievement gaps between poor students and their more affluent 
peers and between minority students and non-minorities remain 
unchanged or have grown. It further highlighted the solution to 
the problem of education stagnation--that of empowering 
parents, returning control back to the local level, encouraging 
basic academic achievements and returning dollars to the 
classroom.
    With the results in hand, last Congress, Republican members 
on the Committee labored to draft legislation to reauthorize 
the Elementary and Secondary Education Act (ESEA). While 
Congress and the President were unable to reach final agreement 
on reauthorizing the bill, progress was significant, including 
passage by the full House of Representatives of H.R. 2300, the 
Academic Achievement for All Students Act, or Straight A's as 
it is most often called. The Straight A's approach demanded 
higher achievement--which current law does not--and eliminated 
the red tape and bureaucracy that gets in the way of education 
reform and innovation. In exchange for this flexibility, states 
would be required to provide academic results disaggregated by 
socioeconomic status and to meet state goals for each of these 
groups.

    ii. a vision for true education reform--empowering parents, not 
                         government bureaucracy

    During his campaign for the presidency, candidate George W. 
Bush forcefully articulated his bold new initiative to improve 
academic opportunities for all children and to ``leave no child 
behind.'' Faced with undeniable facts that the nation's 
government-owned education monopoly has betrayed too many of 
America's children, Bush promised that things would be 
different if he won the presidency.
    True to his word, one of Bush's first presidential acts was 
the unveiling of an impressive and ambitious education proposal 
that elevated the hopes and expectations of us all. Bush 
proposed to redefine the federal role in education by 
predicating his reform agenda upon three key pillars--parental 
empowerment, state flexibility and accountability. Initially, 
conservatives and liberals alike seemed to rally behind Bush's 
innovative ideas.
    Bush also proposed significant consolidation of federal 
programs and sizable increases in discretionary authority for 
state and local officials. This combination would allow local 
education leaders--the ones who actually know the names of our 
children--to target scarce resources more effectively.
    On March 22nd, H.R. 1, the No Child left Behind Act, 
encompassing most of the President's plan, was introduced 
taking a comprehensive approach to closing the achievement gap 
between disadvantaged students and their peers. The bill aimed 
to give states and local school districts flexibility in 
spending federal education dollars by advocating a new Charter 
states option (similar to Straight A's) and consolidating a 
number of questionable education programs while empowering 
parents by advancing a number of school choice provisions. The 
bill would also hold states and localities strictly accountable 
for increasing student achievement by requiring states to 
implement annual reading and math tests for students in grades 
three through eight.
    While some Republicans had concerns about the testing 
provisions encompassed in the proposal, the President's plan 
was widely hailed as embracing the belief that federal 
education policy should allow states and local school districts 
to use federal education dollars to advance their own 
priorities, not those of a distant bureaucracy. State and local 
education leaders know better how to tailor their education 
programs to meet the unique needs of their students than 
bureaucrats in Washington who have never visited their school 
or even their state. The President's plan wisely also stressed 
the importance of parental involvement. Involved parents, after 
all, can hold our schools accountable, ensuring that our kids 
come first.

     iii. reviving the status quo--leaving too many children behind

    Because of our excitement over the President's belief in 
education reform, we were dismayed and disappointed that the 
bill recently reported by the Committee on Education and 
Workforce largely rejects this philosophy and contains very few 
provisions of the president's original proposal. While the 
reported bill includes the testing aspects of the President's 
plan and new reading, math and science programs, it does not 
include the Straight A's provision, does not include massive 
consolidation of education programs, nor does it include any 
provisions dealing with private school choice and substantially 
increases federal education funding.
    Specifically torn from the bill is the President's 
initiative that calls for empowering parents through school 
choice. As proposed, this provision would have enabled parents 
of disadvantaged students to move their children to better 
schools, including private schools, if it had been determined 
that their child had languished in a failing school or at least 
three years.
    This notable feature was the centerpiece of the original 
Bush plan.
    It was designed to begin the process of holding schools 
accountable for performance by treating parents like real 
customers and making schools competitive. Sadly, five 
Republicans on the House Education and the Workforce Committee 
defied the President and voted for a Democrat-sponsored 
amendment to remove this crucial part of Bush's plan. This 
anti-choice amendment was the very first to be considered by 
the committee before other harmful amendments were adopted.
    The only remaining element of the Bush plan in H.R. 1 is 
the implementation of massive new federal testing mandates. 
Holding schools accountable for results in exchange for 
flexibility and choice was the tradeoff upon which Bush based 
his education proposal. But with flexibility and choice now 
effectively stripped from the bill, accountability--to the 
federal government and not to parents--is all that remains.
    The concept of the Bush plan was simple: the federal 
government would free states and school districts from process 
controls and only measure a state's ability to increase student 
achievement. This model closely mirrored the successful 
strategy Bush used while governor of Texas and the one Illinois 
used to reverse the education crisis in Chicago public schools. 
In both of these cases, process mandates were removed and 
results were measured.
    This balanced approach has also worked elsewhere and we, 
like the President, are convinced it can work for the whole 
country. But now that President Bush's school choice and 
flexibility provisions have beeneliminated from the bill, the 
ingenious balance Bush sought to achieve is all but impossible. In 
fact, subsequent amendments in the Education Committee creating new 
federal programs and inflating spending levels have been adopted in 
place of the conservative reform platform upon which candidate Bush 
campaigned.

         IV. Supporting our President's Original Education Plan

    As members of the House Education and Workforce Committee, 
we are no doubt passionate about the issue of education are 
committed to improving our schools. We wholeheartedly support 
the President's effort to ensure that no child is left behind 
and support the concepts embodied in this original plan.
    Unfortunately, the reported version of H.R. 1 does very 
little to improve the current education system and merely 
maintains the status quo which shows that despite the increase 
in federal education spending over the last several decades, 
students are clearly not learning at their greatest potential. 
As such, as much as it pained us to do so, we had no choice but 
to oppose H.R. 1. The fact is the bill contains very little 
education reform, as illustrated by the nearly unanimous 
Democratic support for the reported bill.
    On May 4th, the Wall Street Journal ran a story entitled, 
``Teddy Takes George to School: Bush's education plan is 
Potemkin reform,'' stating ``Mr. [Checker] Finn is the 
conservative who helped Candidate Bush write his education 
plan. But after inspecting the Senate-House fine print, he now 
says, `I'm fairly depressed. It's Potemkin reform, a facade 
underwritten by billions in new spending. Jeanne Allen of the 
Center for Education Reform, another Bush ally, calls the 
emerging product at best a `15% to 20% improvement.' And given 
all the new spending . . . they ought to be getting a lot more 
reform than that.''
    On that same day, the New York Times ran the story ``On the 
Way to Passage, Bush's Education Plan Gets a Makeover,'' 
stating that, ``Bill Bennett, an education secretary in the 
first Bush Administration, urged the new president today to 
stand strong. The proposals he sent up to the Hill are good 
proposals . . . But right now they are in the process of being 
eviscerated. I would plead with the president to fight for 
these proposals . . . I know he wants to get a bill signed. But 
it's critical to get a good bill signed.''
    These two articles speak more clearly than we can as to 
what has happened to H.R. 1 in the House Education and 
Workforce Committee.
    Presently, what Republicans are preparing for their 
President is a humiliating defeat on the most important issue 
facing the nation. The inability of Congress to give America's 
schools the opportunity to transform themselves and the 
reluctance of White House lobbyists to fight harder for the 
President's agenda conveys the wrong message to the country.
    Republicans cannot afford to abandon their passion for 
children and free-market education so easily to the teacher 
unions and the education bureaucracy. Unless Congressional 
Republicans can be persuaded to redeem their virtues, put 
students first and salvage the President's agenda, Bush 
eventually may be forced to consider vetoing H.R. 1 and demand 
a bill Republicans can wholeheartedly support.
    The current legislation making its way through Congress is 
no longer the President's education bill. It has been radically 
amended into something else, something more likely to be 
produced by the last Administration. For President Bush to sign 
it into law would be a perilous mistake--one that would leave 
too many children behind.

                             V. Conclusion

    We believe that now is the time to implement creative, 
innovative ideas for improving education.
    Rather than relying solely on increased federal funding and 
efforts to maintain the status quo, we must return control, 
decision-making authority and money back to the local level--
back to the teachers, parents and school boards to whom we 
entrust our children.
    Congress can best do this by passing legislation 
consolidating the numerous existing education programs, 
empowering parents through school choice and giving states and 
localities increased flexibility through the Straight A's 
proposal.
    While it is unfortunate that H.R. 1 as currently drafted 
does not embody these principals, we will continue to fight for 
these initiatives on the floor and in conference as we know 
that this is the only way that no child is left behind.
                                   Tom Tancredo.
                                   Bob Schaffer.
                                   Pete Hoekstra.
                                 
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