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[Senate Report 107-7]
[From the U.S. Government Publishing Office]

                                                        Calendar No. 23
107th Congress                                                   Report
                                 SENATE
 1st Session                                                      107-7
_______________________________________________________________________

                     BETTER EDUCATION FOR STUDENTS

                           AND TEACHERS ACT

                               __________

                              R E P O R T

                                 of the

                    COMMITTEE ON HEALTH, EDUCATION,

                          LABOR, AND PENSIONS

                          UNITED STATES SENATE

                              to accompany

                                  S. 1

                             together with

                            ADDITIONAL VIEWS

                 March 28, 2001.--Ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
71-390                     WASHINGTON : 2001

                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Purpose and need for legislation.................................1
 II. Summary..........................................................4
III. History of legislation and votes in committee...................26
 IV. Explanation of bill and committee views.........................35
  V. Regulatory impact statement.....................................55
 VI. Application of law to the legislative branch....................56
VII. Cost estimate and unfunded mandate statement....................56
VIII.Section-by-section analysis.....................................70

 IX. Additional views...............................................146
  X. Changes in existing law........................................172
                                                        Calendar No. 23
107th Congress                                                   Report
                                 SENATE
 1st Session                                                      107-7

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

 
             BETTER EDUCATION FOR STUDENTS AND TEACHERS ACT

                                _______
                                

                 March 28, 2001.--Ordered to be printed

                                _______
                                

   Mr. Jeffords, from the Committee on Health, Education, Labor, and 
                   Pensions, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                          [To accompany S. 1]

    The Committee on Health, Education, Labor, and Pensions, 
having had under consideration an original bill (S. 1) to 
extend programs and activities under the Elementary and 
Secondary Education Act of 1965, and for other purposes, 
reports favorably thereon and recommends that the bill do pass.

                  I. Purpose and Need for Legislation

    It is the purpose of the Better Education for Students and 
Teachers (BEST) Act to renew, consolidate, and strengthen 
programs under the Elementary and Secondary Education Act of 
1965 for the next 7 years. The BEST Act represents the most 
dramatic change in the Elementary and Secondary Education Act 
(ESEA) over the past several decades, and perhaps the entire 
35-year life of the act.
    Over that period, ESEA has provided the authority for 
virtually all Federal support for elementary and secondary 
education, and ESEA programs currently receive about $18 
billion in Federal funding. Nearly half of these funds are used 
on behalf of disadvantaged children under the title I program. 
Other important activities supported through ESEA include 
professional development, technology, reading and literacy, 
bilingual education, safe and drug-free schools, and impact 
aid.
    Despite the substantial Federal investment over the years, 
the results have been mixed. Far too many of our students are 
coming to school ill-equipped to learn, and leaving it having 
learned far too little. Our students rank near the bottom of 
the industrialized world in international tests of mathematics 
and science knowledge, and this dismal result disguises an even 
greater failing.
    ``The rising tide of mediocrity'' described by the 1983 
Nation at Risk report was and is but a median of mediocrity. 
Some schools and some students are doing well, offering and 
taking challenging courses and aspiring to and meeting high 
standards. But far too many children are not. More than 2 out 
of 3 children in our inner cities in the 4th grade cannot read 
at the basic level measured by the National Assessment of 
Educational Progress.
    President George W. Bush has aptly described tolerance of 
the status quo as ``the soft bigotry of low expectations.'' His 
blueprint for education reform, No Child Left Behind, outlines 
a fundamental reform of ESEA that would: increase 
accountability for student performance, focus on what works, 
reduce bureaucracy and increase flexibility, and empower 
parents with more information and choices when schools fail.
    President Bush has promised that, ``Bipartisan education 
reform will be the cornerstone of my Administration.'' The 
Committee on Health, Education, Labor, and Pensions has built a 
foundation out from that cornerstone that embraces the 
principles of the President's proposal.
    By a unanimous vote, the committee adopted the BEST Act, 
which will demand greater accountability for student 
performance, focus Federal support on a few key priorities, 
provide more flexibility, and require real consequences and 
wider choices when schools fail our children.
    The BEST Act builds on the 1994 reauthorization of ESEA, 
which reformed title I by requiring States to establish 
challenging student performance and content standards, as well 
asassessments aligned to those standards in order to measure 
student achievement.
    The BEST Act would require States to establish content and 
student performance standards in reading, math, history, and 
science for all students. In addition, States will have to 
develop a plan to ensure that all students, including those who 
are racial or ethnic minorities or from low-income families, 
become academically proficient over the course of the next 
decade.
    Progress cannot be divorced from measurement. To ensure 
that all students make progress toward and attain the 
performance standards developed by a State, the BEST Act would 
require States to establish a single, statewide accountability 
system that would report results to parents, educators, and the 
public.
    The central feature of this system will be annual 
assessments in mathematics and reading for all students in 
grades 3-8, which must be in place by the school year of 2005-
06. In addition, participation in the National Assessment of 
Educational Progress (NAEP), which is nearly universal among 
States today, would become mandatory on an annual basis for a 
sample of 4th and 8th grade students in mathematics and 
reading.
    Good quality assessments are not inexpensive. The BEST Act 
recognizes the additional demands being placed on States and 
commits to sharing the burden. The Federal Government would 
assume the full cost of administering State assessments under 
NAEP, which is now borne by the States, and would fund the 
development costs of the additional assessments required by the 
BEST Act. In addition, the BEST Act would ensure that the 
Federal Government would fund half of the ongoing costs of 
assessments required under the Act.
    The results of these assessments, both for all students and 
for specific groups of students, will be a valuable tool in 
educating the public and informing educators. Having 1 set of 
standards and assessments for all students in a State will 
enable the public to easily compare results and assist 
educators in their efforts to continuously improve schools and 
the education of our children.
    If education reform is to succeed, there must be rewards 
for success and consequences for failure. The BEST Act provides 
for both. States and schools that demonstrate significant 
achievement on both a State's assessment and NAEP will be 
eligible for rewards. States and schools serving our lowest-
performing students that fail to make progress will face a 
series of corrective measures designed to produce better 
results.
    If a school receiving funds under title I fails to make 
adequate yearly progress as defined by a State for 1 year, it 
will be designated as needing school improvement. The school 
will be required to work with the local educational agency to 
develop a 2-year school improvement plan and, based on the 
plan, implement changes in curriculum, professional 
development, and other areas as needed.
    If at the end of the 2-year period of the school 
improvement plan there is still not adequate yearly progress, a 
school would be designated as needing corrective action. The 
local educational agency would be required to offer public 
school choice to students and make alternative governance 
arrangements, such as replacing some of the school staff.
    If 1 additional year passes and progress is still not made, 
the local educational agency would be required to reconstitute 
the school by reopening the school as a charter school, 
replacing the school staff, or making alternative governance 
arrangements.
    A parallel set of actions is required of a State with 
respect to a failing local educational agency. A school or 
local educational agency would need to demonstrate 2 
consecutive years of progress to be removed from any of the 3 
categories described above.
    To assist students and schools, the BEST Act makes a 
substantial new commitment to instruction in reading, 
mathematics, and science. Support for reading in the early 
grades is tripled, and a new early reading for children from 
ages 3-5 is created. Funding for technology programs is 
consolidated and simplified, and a new mathematics and science 
partnership program is created by the legislation.
    Education reform cannot succeed without an adequate number 
of well-trained teachers. The BEST Act consolidates funding for 
the hiring and professional development of teachers to provide 
the flexibility to best meet local needs for recruiting, 
retaining, and constantly updating the skills of teachers 
through high quality professional development, particularly in 
mathematics and science.
    The Federal Government provides only a small fraction of 
overall funding for elementary and secondary education in the 
United States. The BEST Act focuses this funding and repeals 
the authorizations for several smaller programs. In eliminating 
these smaller programs, the Act provides greater flexibility to 
parents, schools, and States to adopt the best approach to 
improving the education of their children.
    But the Federal government must insist that, whatever the 
level of its investment in education, it must receive the 
highest return possible in the currency of well-educated 
children, especially those who are from low-income or minority 
families. President Bush has rightly challenged us to ``leave 
no child behind.'' The committee has begun the process of 
demonstrating that Congress is equal to the challenge.

                              II. Summary

          TITLE I--B BETTER RESULTS FOR DISADVANTAGED CHILDREN

Part A--Basic programs

                                Overview

    The purpose of this title is to improve student 
achievement, student performance, and school success by 
including tough accountability provisions, expanding resources, 
improving technical assistance, and providing mechanisms for 
turning around failing schools within 3 years. The last 
reauthorization of title I, which occurred in 1994, made major 
changes in the program regarding standards, assessment, and 
professional development. The provisions contained in the BEST 
proposal build upon and significantly expand the 1994 changes. 
These new provisions are outlined below.

                        New Provisions of Part A

    State Plan: New provisions include--
    Coordination: Title I activities will be coordinated with 
activities in other Federal education programs, including the 
Individuals with Disabilities Education Act, and the Carl D. 
Perkins Vocational and Technical Education Act.
    Accountability: Each State plan will be required to 
implement a single, statewide accountability system which will 
be used for all schools or local educational agencies within 
the State. This system will have to include performance 
indicators for local educational agencies and schools to 
measure student performance. In addition, the State system will 
also have to include sanctions and rewards which will be used 
to hold local educational agencies and schools accountable for 
making adequate yearly progress in the areas of student 
achievement and performance.
    Adequate Yearly Progress: The State will define adequate 
yearly progress using the following criteria--applying the same 
high standards of academic performance to all students, the 
measures used to determine the progress must be statistically 
valid and reliable, results must show continuous and 
substantial improvement for all students on an annual basis, 
the progress of schools and local educational agencies must be 
based on assessments, measuring student achievement and 
performance will include all students and will be disaggregated 
by race, ethnicity, gender, disability status, migrant status, 
English proficiency, and socioeconomic status (this is not 
required in any 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), and 
establishing a timeline for ensuring that all students meet or 
exceed the State's proficient performance level on the State 
assessment within 10 years.
    Assessments: Each State plan will demonstrate, in 
consultation with the local educational agencies, that the 
State has in place, by the school year 2005-06, a system of 
high quality, yearly student assessments in subjects, that 
include, at a minimum math, reading or language arts, and 
science (science assessments must be in place at the beginning 
of the 2007-2008 school year). The assessments are to be 
aligned with the State's content and performance standards. 
Beginning in school year 2005-06, all students in grades 3 
through 8 must be tested annually in mathematics and reading or 
language arts. The Secretary of Education may provide the State 
1 additional year if the State demonstrates that exceptional or 
uncontrollable circumstances prevented full assessment 
implementation. The Federal government will be required to pay 
all development costs associated with the new State assessment 
requirements and will be required to pay 50 percent of all 
State implementation costs. If the required Federal funding 
share is not appropriated, States will not have to comply with 
the new assessment requirements. States will also be required 
to produce individual student reports, which will be given to 
all parents, regarding the assessment scores or other 
information related to student performance.
    NAEP: Beginning in school year 2002-03, each State will be 
required to participate in annual State assessments of 4th and 
8th grade reading and math under the National Assessment of 
Educational Progress if the Secretary of Education pays the 
costs of administering such assessments. No sanctions would be 
levied against a State based solely on the results of its NAEP 
assessment.
    Parental Involvement: Each State plan will describe how the 
State will disseminate effective parental involvement practices 
to local educational agencies and schools.
    Penalty: If a State fails to meet the statutory deadlines 
for demonstrating it has in place challenging content and 
student performance standards, and a system for measuring and 
monitoring adequate yearly progress, the Secretary will 
withhold funds for State administration.
    Report Cards: Beginning in the 2002-03 school year, any 
State and local educational agency receiving funding under the 
Better Education for Students and Teachers Act will be required 
to prepare and disseminate an annual State report card. Any 
State or local educational agency that has been providing 
report cards (prior to enactment of BEST) may continue to use 
those same report cards if they are modified to contain the 
information required under BEST. The required information 
includes: disaggregated student data, the number and names of 
each school identified for school improvement, and student 
assessment results. This information must be presented in a 
manner that parents can understand.
    Annual State Report to the Secretary: Each State must 
report annually to the Secretary its progress in development an 
implementing required assessments, the number and names of each 
school identified for school improvement, the reason why such 
school was so identified, and the measure taken to address the 
performance problems of such school, in addition to the 
information required in the report cards.
    Parents Right To Know: Each local educational agency 
receiving title I funding will, upon request from parents, 
provide information regarding the professionalqualifications of 
the student's classroom teachers. In addition, each school 
receiving title I funding must provide parents with information 
on the level of performance of their children in each State 
assessment. All information provided to parents must be in an 
understandable and uniform format.

Local Educational Agency Plan: New provisions include--

    Coordination: Title I activities will be coordinated with 
activities in other Federal education programs including the 
Individuals with Disabilities Education Act, the Carl Perkins 
Vocational and Technical Education Act, and the Head Start Act.
    Assurances: Several new assurances have been included 
within the local educational agency plan. Each local 
educational agency (LEA) plan will:
          (a) undertake activities so that each school can make 
        adequate yearly progress;
          (b) fulfill school improvement responsibilities;
          (c) coordinate with other agencies providing services 
        to children, youth, and families;
          (d) ensure that low-income students and minority 
        students are not taught at higher rates than other 
        students by unqualified, out-of-field, or inexperienced 
        teachers;
          (e) use the results of student assessments and other 
        measures to annually review the progress of each 
        school; and
          (f) work with schools in the development and 
        implementation of parental involvement and professional 
        development activities.

Schoolwide Programs: New provisions include--

    Eligibility: A local educational agency may use funds for a 
schoolwide program to upgrade its entire educational program if 
the LEA 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.
    Fiscal Accounting: Any school that is using funds from more 
than one Federal education program in the operation of its 
schoolwide program will not be required to maintain separate 
fiscal accounting records by program, so long as the school 
maintains records that demonstrate the schoolwide program 
addresses the intent and purpose of each Federal program for 
which funding is consolidated.

Pupil Safety and Family School Choice: New provisions include--

    Conditions for student participation are:
          (a) any title I student who is a victim of a violent 
        criminal offense on public school grounds will be 
        allowed to transfer to another public school or charter 
        school in the same State, unless allowing such transfer 
        is prohibited under State or local law; or
          (b) if the school the student attends receives title 
        I funds and the school has been designated as unsafe, 
        then the local educational agency may allow such 
        student to transfer to another public or charter school 
        in the same State.
    State Educational Agency Role: The State educational agency 
will determine, based on State law, what constitutes a violent 
offense and will determine the schools that are unsafe public 
schools.
    Transportation Costs:
          (a) the local educational agency serving the school 
        in which a violent criminal offense occurred or which 
        is determined to be unsafe may use title I funds for 
        the transportation costs of a student who transfers to 
        another school.
          (b) the amount of assistance provided for 
        transportation with title I funds may not exceed the 
        per pupil costs for elementary or secondary students as 
        provided by the local educational agency that serves 
        the school involved in the transfer.

Assessment and Local Educational Agency and School Improvement: New 
        provisions include--

    Local Review: Each local educational agency receiving title 
I funds will: use the State assessments described in the State 
plan; review the annual progress of each school served to 
determine whether the school is making adequate progress in 
meeting the State standards; provide the results of the local 
annual review to schools so the schools can refine their 
instruction program; and annually review the effectiveness of 
parental involvement activities.
    School Improvement:
          (a) Identification--A local educational agency will 
        identify for school improvement any elementary or 
        secondary school participating in title I, part A 
        activities that--
                  (i) fails, for any year, to make adequate 
                yearly progress as defined in the State's plan; 
                or
                  (ii) was in school improvement status on the 
                day preceding the date of enactment of the BEST 
                Act.
          (b) Review Opportunity--Before identifying an 
        elementary school or a secondary school for school 
        improvement, the local educational agency will provide 
        the school with an opportunity to review the data on 
        whichthe identification was based.
          (c) School Plan--Each school identified for school 
        improvement, within 3 months after being identified, 
        must develop a 2-year school plan, in consultation with 
        parents, school staff, the local educational agency 
        serving the school, the local school board, and other 
        experts. The plan will contain the following key 
        elements:
                  (i) scientifically based research strategies 
                that strengthen the core academic subjects;
                  (ii) policies and practices that have the 
                greatest likelihood of ensuring that all 
                students will meet the State's proficient level 
                of performance on the State assessment within 
                10 years after enactment of BEST;
                  (iii) an assurance that the school will 
                reserve not less than 10 percent of the funds 
                made available to the school for professional 
                development;
                  (iv) the responsibilities of the school, the 
                local educational agency, and the State 
                educational agency serving the school;
                  (v) strategies to promote effective parental 
                involvement.
          (d) Technical Assistance--For each school identified 
        for school improvement, the local educational agency 
        serving such school will provide technical assistance.
          (e) Parental Notification--A local educational agency 
        will provide to parents of each student enrolled in a 
        school identified for school improvement: an 
        explanation of what the school improvement 
        identification means; the reasons for the 
        identification; an explanation of what the school, 
        local educational agency, or the State educational 
        agency is doing to address the problem; and an 
        explanation of how parents can become involved in 
        addressing issues.
          (f) Corrective Action Implementation--After providing 
        technical assistance to a school identified for school 
        improvement, the local educational agency will take 
        corrective action for any school within the local 
        educational agency that--
                  (i) fails to meet adequate yearly progress at 
                the end of the second year after which the 
                school has been identified as needing 
                improvement; or
                  (ii) was in program-improvement status for 2 
                years or in corrective action status on the day 
                preceding enactment of this bill;
          (g) Corrective Action Policies--After a school is 
        identified as needing improvement, the local 
        educational agency will--
                  (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 
                is not in need of school improvement, unless: 
                such an option is prohibited by State law or 
                local law; or the local educational agency 
                demonstrates that the local educational agency 
                lacks the capacity to provide that option to 
                all students in the school who request the 
                transfer; and
                  (ii) take at least 1 of the following 
                corrective actions: make alternative governance 
                arrangements; replace the relevant school 
                staff; or institute and fully implement a new 
                curriculum.
          (h) Corrective Action Exemption--A local educational 
        agency may delay, for up to 1 year, implementation of 
        corrective action if the school's failure to make 
        adequate yearly progress was due to exceptional or 
        uncontrollable circumstances.
          (i) Reconstitution--If, after 1 additional school 
        year, a school subject to corrective action continues 
        to fail to make adequate yearly progress, the local 
        educational agency will--
                  (i) provide all enrolled students in the 
                school with the option to transfer to another 
                public school within the local educational 
                agency, including a public charter school, not 
                identified for school improvement; and
                  (ii) prepare a plan and make arrangements for 
                implementing alternative governance 
                arrangements for the school.
          (j) Reconstitution Transportation and Duration--The 
        local educational agency will pay for transportation as 
        a result of corrective action and reconstitution, but 
        the payments will not exceed 15 percent of the local 
        educational agency's allocation under title I, part A. 
        If any school identified for reconstitution makes 
        adequate yearly progress for 2 consecutive years, then 
        the local educational agency will no longer be required 
        to subject the school to corrective action.
          (k) State Educational Agency (SEA) Responsibilities--
        The State educational agency will provide technical 
        assistance to all identified schools needing school 
        improvement and corrective action.
          (l) State Review and Local Educational Agency 
        Improvement--A State educational agency will annually 
        review each local educational agency receiving title I, 
        part A funds to determine its progress and to determine 
        the effectiveness of its professional development and 
        parental involvement activities.
          (m) State Rewards--If a local educational agency has 
        met or exceeded the State's definition of adequate 
        yearly progress, the State may make rewards for 
        individual schools within the local educational agency 
        meeting or exceeding expectations.
          (n) State Identification--A State educational agency 
        will identify for improvement any local educational 
        agency that for 2 consecutive years is not making 
        adequate yearly progress. Before identifying a local 
        educational agency, the State educational agency will 
        provide the localeducational agency with an opportunity 
        to review the data.
          (o) Local Educational Agency Revisions--Each local 
        educational agency identified as needing improvement 
        will revise their plan to: address yearly progress 
        requirements; incorporate scientifically based research 
        strategies; address professional development needs, and 
        parental notification about the local educational 
        agency's need for improvement.
          (p) State Educational Agency Technical Assistance 
        Responsibility--For each local educational agency 
        needing improvement, the State educational agency will 
        provide technical assistance to the local educational 
        agency. Such assistance must be supported by 
        scientifically based research instructional strategies 
        and must address any problems the local educational 
        agency may be having in implementing parental 
        involvement and professional development activities.
          (q) State Educational Agency Corrective Action--After 
        providing technical assistance and taking other 
        measures, the State educational agency may take 
        corrective action at any time against a local 
        educational agency identified as needing improvement. 
        However, during the fourth year following 
        identification, the State educational agency will take 
        action against any local educational agency that still 
        fails to make adequate yearly progress.
          (r) State Educational Agency Required Action--Each 
        State educational agency will implement at least one of 
        the following corrective actions:
                  (i) instituting and implementing a new 
                curriculum;
                  (ii) restructuring the local educational 
                agency;
                  (iii) developing and implementing a joint 
                plan between the State educational agency and 
                the local educational agency that addresses 
                student performance problems;
                  (iv) reconstituting school district 
                personnel;
                  (v) making alternative governance 
                arrangements.
          (s) State Educational Agency Allowable Action--Each 
        State educational agency may take 1 of the following 
        corrective actions:
                  (i) deferring, reducing, or withholding 
                funds;
                  (ii) restructuring or abolishing the local 
                educational agency;
                  (iii) removal of particular schools from the 
                local educational agency jurisdiction;
                  (iv) appointment by the State educational 
                agency of a receiver or a trustee to oversee 
                the local educational agency.
          (t) State Hearing--Prior to corrective action 
        implementation, the State educational agency will 
        provide the local educational agency with the 
        opportunity to hold a hearing.
          (u) Parental Notification--The State educational 
        agency will notify parents about any corrective action 
        the State educational agency may take.
          (v) Delay--A State educational agency may delay, for 
        1 year, implementation of corrective action if the 
        State educational agency determines that the schools 
        within the local educational agency will meet the 
        State's improvement criteria within 1 year.
          (w) Special Rule--If local educational agencies that 
        for at least 2 of the 3 years following identification 
        make adequate progress toward meeting the State's 
        standards, then those agencies no longer need to be 
        identified for improvement.
    Early Childhood Education: A local educational agency may 
use title I, part A funds for preschool services. Early 
childhood education programs may jointly operate with Even 
Start, Head Start, or State-funded preschool programs.
    Funding: A funding level of $15 billion is authorized for 
part A for fiscal year 2002.

Part B--Literacy for children and families

            Subpart 1--William F. Goodling Even Start Family Literacy 
                    programs
    The William F. Goodling Even Start Family Literacy program 
is designed to improve the educational opportunities for low-
income families by integrating early childhood, adult basic 
education, and parenting education into a unified family 
literacy program. The Secretary of Education awards grants to 
State educational agencies through a formula allocation. The 
State educational agencies distribute the funds to local 
educational agencies that form a collaboration with a community 
based organization, an institution of higher education, or 
another agency or nonprofit organization. This collaboration 
will provide joint education programs to serve children and 
their parents.
    Even Start program services must include adult literacy 
instruction, early childhood education, instruction to help 
parents support their child's education, staff training, and 
home-based instruction. Child care and transportation may be 
provided if these services are necessary and other funding 
sources are not available.
    Even Start grants are geared for areas with high rates of: 
poverty, illiteracy, unemployment, families of limited-English 
proficiency, or disadvantaged children. Grants are awarded for 
a 4-year period and may be renewed for up to 4 additional 
years.
    In 2000, Congress amended the Even Start law by passing the 
Literacy Involves Families Together (LIFT) Act as part of the 
fiscal year 2001 omnibus appropriations bill (Public Law 106-
554.)
    The following amendments were made to Even Start:
          (a) extended the authorization for the program 
        through fiscal year 2006;
          (b) increased the fiscal year 2001 authorization to 
        $250 million;
          (c) strengthened the accountability requirements for 
        local projects;
          (d) encouraged the use of family literacy in title I 
        schools; and,
          (e) set standards for Even Start staff who are 
        providing instructional services.
    A funding level of $250 million is authorized for fiscal 
year 2002.
            Subpart 2--Reading first
    It is the purpose of this subpart to provide assistance to 
States, local educational agencies, schools, and teachers to 
help all children in kindergarten through third grade become 
proficient readers by the end of third grade.
    The Secretary is authorized to distribute 75 percent of the 
funds to the States and the District of Columbia based on the 
formula for title I, part A. The remaining 25 percent of funds 
are to be distributed to the States on a competitive basis. The 
competitive grants are to be made based primarily on a State's 
demonstration of significant progress in helping all children 
read at a proficient level. State applications for both the 
formula and competitive funds are subject to a peer review 
process that is described in the bill. With funds from both 
sources, a State must distribute funds to local educational 
agencies through a competitive process. The bill contains 
criteria describing which local educational agencies are 
eligible to apply to the State.
    Funds are also reserved for the Secretary to provide 
technical assistance to the States and to evaluate the programs 
supported by this subpart and for the National Institute for 
Literacy to disseminate information about reading research and 
effective programs supported under this subpart.
    This new program builds upon the Reading Excellence Act, 
which has provided competitive grants to states for similar 
purposes. As in the Reading Excellence Act, all reading-related 
activities supported with these funds must be based on 
``scientifically based reading research,'' as this term is 
defined in the bill. The bill defines how funds can be used at 
the local level, including: purchasing, implementing, or 
developing diagnostic reading assessments, professional 
development, materials (including reading materials), training 
of tutors, and assisting parents to support their children's 
reading development.
    States are authorized to use up to 20 percent of the funds 
they receive under the formula grants for professional 
development, technical assistance, and administering the 
program.
    A funding level of $900 million is authorized for subpart 2 
in fiscal year 2002.
            Subpart 3--Early reading first
    It is the purpose of this subpart to demonstrate effective 
approaches for improving the early language and literacy skills 
of children aged 3 through 5. The Secretary is authorized to 
award 4-year competitive grants to local education agencies, 
organizations serving preschool age children, or combinations 
of such agencies and organizations.
    An eligible applicant must to apply to the Secretary to 
receive funding under this program, and the bill contains 
several required elements of an application. The Secretary 
would award grants on the basis of a peer review process. The 
National Institute for Literacy, with funding it receives under 
the Reading First proposal, would disseminate information 
regarding effective programs funded under this subpart.
    The Secretary of Education is authorized to reserve funds 
from the amount appropriated for this subpart to carry out an 
evaluation of the funded projects and carry out research on 
language and literacy development for children aged 3 through 
5.
    A funding level of $75 million is authorized for subpart 3 
in fiscal year 2002.

Part C--Education of migratory children

    The Migrant Education program provides grants to State 
educational agencies to develop or improve educational programs 
for migrant students. Most migrant programs are administered by 
local educational agencies and operate during both the regular 
school year and in the summer. Priority for services is given 
to current migrant students and to students who are failing, or 
at greatest risk of failing, to meet State performance 
standards.
    Funds are distributed through a formula which is based on 
the number of migrant children residing in the State. The 
number is then adjusted to the average per-pupil expenditure 
for both the State and the United States.
    The bill builds upon current law to ensure that migratory 
children have the opportunity to attain high levels of 
educational excellence. The bill:
          (a) includes language ensuring that migratory 
        children who move among the States are not penalized in 
        any manner by disparities, among the States in 
        curriculum, graduation requirements, and State student 
        performance and content standards;
          (b) adds a provision which ensures that migratory 
        children receive full and appropriate opportunities to 
        meet the same challenging State standards that all 
        children are expected to meet;
          (c) includes a requirement to have joint planning 
        efforts between migrant education programs and 
        bilingual education;
          (d) includes provisions emphasizing the importance of 
        parental involvement and the parent advisory councils;
          (e) establishes an information system for 
        electronically exchanging migrantstudent information 
        which may include: immunization records and other 
        health information; elementary and secondary academic 
        history; credit accrual; State assessment results; 
        other academic information essential to ensuring that 
        migrant children achieve high standards; and 
        eligibility for services under the Individuals with 
        Disabilities Education Act; and
          (f) requires schools which receive Federal migrant 
        education funding, even those which have chosen to 
        participate in schoolwide programs, to first attend to 
        the very special needs of this population which are a 
        direct result of their migratory lifestyle by funding 
        services and activities which will help them 
        participate effectively in school, before putting 
        migrant education funds into schoolwide programs.
    A funding level of $400 million is authorized for fiscal 
year 2002 to carry out part C activities.

Part D--Initiatives for neglected, delinquent, or at-risk students

    This program primarily serves youth who have been assigned 
to institutional facilities. The purpose of the program is to 
provide those youth with the opportunity to make a successful 
transition from institutionalization to further schooling or 
employment. A funding level of $50 million is authorized for 
part D for fiscal year 2002.

Part E--Evaluations and demonstrations

    The BEST Act retains current law provisions. A funding 
level of $35 million is authorized for evaluations and 
demonstrations for fiscal year 2002.

Part F--21st Century Community Learning Centers

    The 21st Century Community Learning Centers program 
provides grant support to rural and inner city public 
elementary or secondary schools, or consortia of such schools, 
to plan, implement, or expand projects that benefit the 
educational, health, social service, cultural, and recreational 
needs of a rural or inner-city community. The BEST bill makes 
some revisions to current law by placing an emphasis on 
academic enrichment programs and also allowing community based 
organizations and units of general purpose local government to 
be awarded grants along with local educational agencies. The 
grant process would continue to be a competitive process. A 
funding level of $1.5 billion is authorized for part F for 
fiscal year 2002.

Part G--Comprehensive School Reform

    The BEST Act includes the Comprehensive School Reform 
program, often referred to as ``Obey-Porter.'' It authorizes 
the Secretary to award grants to State educational agencies by 
formula to enable them to make competitive grants to local 
educational agencies to carry out scientifically based research 
programs that emphasize academics and parental involvement. A 
funding level of $250 million is authorized for part G for 
fiscal year 2002.

Part H--School dropout prevention

    Part H authorizes 2 activities designed to provide for 
school dropout prevention and reentry. Subpart 1 provides for a 
Coordinated National Strategy under which the Secretary of 
Education is authorized to conduct national activities 
including: (1) data collection regarding participation in 
Federal dropout prevention and school reentry programs; (2) 
establishment of an interagency working group to address 
dropout prevention and school reentry issues; and (3) creation 
of a national recognition program for schools that have made 
extraordinary progress in lowering dropout rates. Ten percent 
of the funding made available for part H is allocated for 
subpart 1 activities.
    Subpart 2 provides for a National School Dropout Prevention 
Initiative to provide assistance to States. If the sum that is 
appropriated is less than $250 million, then the Secretary of 
Education will use such an amount to award grants on a 
competitive basis, to State educational agencies. If the amount 
appropriated is equal to or exceeds $250 million, then the 
Secretary will allocate funds to the States through the formula 
established under title I, part A. States are to use subpart 2 
funds to award grants to public middle or secondary schools 
that have the highest dropout rates in the State for the 
purpose of supporting dropout prevention programs. Ninety 
percent of the funding made available for part H is allocated 
for subpart 2 activities.
    A State receiving part H funds must provide dropout rate 
information to the Secretary, establish attendance-neutral 
funding policies, and adopt suspension and expulsion policies.
    A funding level of $250 million is authorized for part H 
for fiscal year 2002.

Education for Homeless Children and Youth

    The Education for Homeless Children and Youth program, 
authorized as Subtitle B of the Stewart B. McKinney Homeless 
Assistance Act, is extended through fiscal year 2008. The 
program provides for: the establishment of Offices of 
Coordinator of Education of Homeless Children and Youth in 
States; the development and implementation of State plans for 
the education of homeless children; and support to local 
educational agencies for the education of these children. The 
reauthorization bill strengthens provisions of the current law 
designed to avoid segregating homeless students, to maintain a 
child's attendance at his or her school or origin, to avoid 
enrollment delays, and to assure that the quality of an 
application is considered in the provision of subgrants to 
local educational agencies. A funding level of $70 million is 
authorized for fiscal year 2002.

                           TITLE II--TEACHERS

Part A--Teacher quality

    Part A of title II consolidates funds and authorities from 
the existing Eisenhower Professional Development and Class Size 
Reduction programs in order to provide greater flexibility for 
States and localities in meeting their specific needs related 
to the professional development, recruitment, and hiring of 
highly qualified teachers.
    Definitions: ``Professional development'' is strictly 
defined in the bill in order to assure that professional 
development activities supported under part A are an integral 
part of educational improvement plans, are sustained, are tied 
to State standards, and are based on the best available 
research. ``Highly qualified'' as the term pertains to teachers 
is also defined.
    State and Local Grant Funds: States will be held harmless 
at their fiscal year 2001 funding allocations under the current 
Eisenhower and the Class Size Reduction programs. Remaining 
funds will be distributed by a formula based 50 percent on 
poverty and 50 percent on population. A State may reserve 5 
percent of funds for State-level activities and local 
partnership activities, and the remaining 95 percent of funds 
must be distributed by formula to local educational agencies.
    State Activities: States may use funds for a range of 
activities relating to the certification, recruitment, 
professional development, and support of teachers. Examples of 
such activities include: reforming teacher certification or 
licensing requirements; addressing alternative routes to State 
certification of teachers; recruiting teachers and principals; 
providing professional development activities to ensure that 
teachers are able to use State standards and assessments to 
improve instruction; and reforming tenure systems.
    Local Activities: Local educational agencies may use funds 
for the professional development, recruitment, or hiring of 
teachers. To receive funds, the local educational agency must 
assess its needs for professional development and hiring and 
develop an evaluation plan.
    Local Accountability: The evaluation plan of a local 
educational agency must include performance objectives related 
to: student achievement, participation in professional 
development activities, teacher retention, and decreased use of 
out-of-field teachers. The local educational agency must report 
annually to the State regarding its progress and will receive 
technical assistance from the State if it fails to make 
progress by the end of the third year of funding. If the local 
educational agency does not make progress by the end of 5 
years, it will be ineligible for part A funding for 2 years. 
Funds which would otherwise be allocated to the local 
educational agency will be used instead by the State to assist 
the agency to meet performance objectives.
    Local Partnerships: The funds reserved for local 
partnerships will be awarded competitively by the State agency 
for higher education, working in conjunction with the State 
educational agency. Eligible partnerships must include a 
private or State institution of higher education and the 
division of that institution that prepares teachers; a school 
of arts and sciences; and a high-need local educational agency. 
Eligible partnerships may also include other entities. 
Partnerships are to use funds for professional development for 
teachers, paraprofessionals and, if appropriate, principals. 
Activities must be coordinated with title II of the Higher 
Education Act, if applicable.
    National Activities: The BEST Act authorizes support for 5 
national activities:
          (1) School Leadership Initiative: This program will 
        ensure that funds for professional development will be 
        available to principals, superintendents, and others to 
        enhance their leadership and management skills.
          (2) Advanced Certification or Credentialing: This 
        program provides funds to the National Board for 
        Professional Teaching Standards to make grants to State 
        educational agencies, local educational agencies, and 
        individuals to promote outreach, recruit teachers, or 
        provide for teacher subsidies.
          (3) Troops-to-Teachers: This program has proven to be 
        effective in recruiting former military personnel as 
        classroom teachers.
          (4) Transition to Teaching: This program will help 
        recruit, prepare, and support mid-career professionals 
        to become highly qualified teachers.
          (5) National Teacher Recruitment Campaign: This 
        program will support a national Public service campaign 
        concerning the resources for and routes to entering 
        teaching.
    Funding: A funding level of $3 billion is authorized for 
this part for fiscal year 2002, of which $100 million will be 
available to carry out national activities. A separate 
authorization of $3 million in fiscal year 2002 is provided for 
a National Teacher Recruitment Campaign.

Part B--Mathematics and science partnerships

    Part B includes new initiatives designed to improve student 
achievement in the areas of mathematics and science by 
strengthening the training and recruitment of highly qualified 
math and science teachers.
            Subpart 1--Mathematics and science partnerships
    Grant Awards to Partnerships: Subpart 1 authorizes the 
award of 5-year competitive, matching grants to partnerships 
linking the math and science departments of institutions of 
higher education with States and local school districts. 
Priority is given to partnerships involving a high-need local 
educational agency. The Federal share is 75 percent in year 1, 
85 percent in year 2, and 50 percent in years 3 through 5.
    Application Requirements: Applications must include: an 
assessment of needs for teacherquality and professional 
development for all participating entities; a description of 
how activities will be aligned with State and local standards; 
and a description of how activities will be based on a review 
of relevant research. Applications must also include an 
evaluation and accountability plan which includes objectives 
and measures for improved student performance; increased 
student participation in advanced courses; increased 
percentages of secondary school classes in math and science 
taught by teachers with academic majors in those subjects; and 
increased numbers of math and science teachers who participate 
in content-based professional development activities
    Partnership Activities: An eligible partnership shall use 
grant funds for 1 or more of the following activities: 
developing more rigorous math and science curricula aligned to 
State and local standards and with the standards expected for 
postsecondary study in mathematics and science, respectively; 
creating opportunities for enhanced and ongoing professional 
development; recruiting math and science majors to teaching; 
promoting strong teaching skills for math and science teachers 
and teacher educators; establishing math and science summer 
workshops or institutes for teachers; establishing distance 
learning programs for math and science teachers; designing 
programs to prepare a teacher to provide professional 
development to other teachers and novice teachers; and 
designing programs to bring teachers into contact with working 
scientists.
    Accountability: Grant recipients must report annually to 
the Secretary regarding their progress in meeting performance 
objectives. If the Secretary determines that a grantee is not 
making substantial progress in meeting those objectives by the 
end of the third year of the grant, then no further grant 
payments will be made.
    Funding: A funding level of $500 million is authorized for 
this subpart for fiscal year 2002.
            Subpart 2--Eisenhower Clearinghouse for Mathematics and 
                    Science Education
    Subpart 2 of part B provides for the continuation of the 
Eisenhower Clearinghouse for Mathematics and Science Education. 
The functions of the Clearinghouse are expanded to include the 
development of an Internet-based site offering a search 
mechanism and including electronic links to users and providers 
of instructional materials and programs. Not later than 2 years 
after the enactment of this Act, the National Academy of 
Sciences is to conduct a study of the Clearinghouse and submit 
its report to Congress. A funding level of $5 million is 
authorized for this subpart for fiscal year 2002.
            Subpart 3--Preparing tomorrow's teachers to use technology
    Grant Awards to Consortia: This subpart authorizes 5-year 
competitive grants to consortia to support programs preparing 
teachers to use technology effectively. Funds must be used to 
create programs that enable prospective teachers to use 
advanced technology to create learning environments where all 
students are prepared to meet challenging State standards. The 
Federal share of any project shall not exceed 50 percent.
    Consortia: Eligible consortia must include at least 1 
institution of higher education that offers a baccalaureate 
degree and prepares teachers for their initial entry into 
teaching, at least 1 State or local educational agency, and 1 
or more of: a second institution of higher education, a school 
or department of education at an institution of higher 
education, a school or college of arts and sciences at an 
institution of higher education, a professional association, 
foundation, museum, library, for-profit business, public or 
private nonprofit organization, community-based organization, 
or other entity with the capacity to contribute to the 
technology-related reform of teacher preparation programs.
    Use of Funds: Consortia must use the funds to create 
programs that enable prospective teachers to use advanced 
technology to create learning environments conducive to 
preparing all students to meet standards and to evaluate the 
effectiveness of the project. The Act includes a number of 
permissive uses of funds as well.
    Funding: A funding level of $150 million is authorized for 
this subpart for fiscal year 2002.
            Subpart 4--General provisions
    Subpart 4 of part B provides that the Secretary of 
Education must consult and coordinate activities under part B 
with the Director of the National Science Foundation, 
particularly with respect to the most appropriate and effective 
role each of their agencies can play with respect to summer 
workshops or institutes.

Part C--State and local programs for technology use in the classrooms

    Part C consolidates several Federal educational technology 
programs into a single funding authority in order to provide 
States and localities with greater flexibility in meeting their 
specific technology needs.
    Purpose: Part C is intended to support a comprehensive 
system to use technology effectively in elementary and 
secondary schools to improve student academic achievement and 
performance. The goal of the part is to assist every child in 
crossing the digital divide by ensuring that every child is 
technologically literate by the time the child finishes the 8th 
grade.
    State and Local Grant Funds: The Secretary, through the 
Office of Educational Technology, awards grants to State 
educational agencies to be used for competitive grants to local 
educational agencies. The Secretary shall reserve sufficient 
funds to maintain grants awarded under the National Challenge 
Grants for Technology in Education prior to the enactment of 
the Better Education for Students and Teacher Act. Each State 
educational agencywill receive a grant based on the title I 
formula. A grant recipient under part C may use no more than 5 
percent of grant funds for administrative costs or technical 
assistance. At least 30 percent of local educational agency 
funds must be used for professional development.
    State Activities: A State educational agency must submit a 
statewide educational technology plan that outlines long-term 
strategies for improving student performance and achievement 
through the effective use of technology, for financing and 
coordinating technology education in the State, and for 
enabling the State educational agency to assist local 
educational agencies with the highest numbers or percentages of 
children in poverty and which demonstrate the greatest need for 
technology. The State educational agency awards competitive 
grants to local educational agencies with priority given to 
agencies with the highest numbers or percentages of children in 
poverty in both rural and urban areas and must provide 
technical assistance to local educational agencies that most 
need assistance in developing the application.
    Local Activities: A local educational agency must apply, 
alone or as part of a consortium, to the State educational 
agency for assistance under part C. Local educational agencies 
may use part C funds to support school reform efforts, provide 
ongoing professional development on the integration of 
technology into the curriculum, acquire connectivity; and 
provide educational services for adults and families.
    Local Accountability: Each local educational agency 
receiving funds under part C must develop an evaluation and 
submit an annual report to the State educational agency. If a 
local educational agency has failed to show measurable 
improvements in all performance measures by the end of the 
third year of funding, it will not receive funds for the 
remaining grant years.
    National Technology Plan: The Secretary, in consultation 
with a wide range of individuals and organizations, must 
prepare a national long-range plan to support the national 
technology policy. The plan is to be submitted to the President 
and to the appropriate committees of Congress and is to be made 
readily accessible to the public. The plan must include the 
Secretary's long-range measurable goals and objectives relating 
to the purposes of part C and descriptions of the ways in which 
the Secretary will coordinate efforts to facilitate the 
effective use of technology to promote increased access to 
educational opportunities for all students and higher academic 
achievement and performance in education, training, and 
lifelong learning.
    Funding: A funding level of $1 billion is authorized for 
part C for fiscal year 2002.

Part D--Portability of teacher pensions and credentials

    Part D authorizes the establishment of a 9-member National 
Panel of Portability of Teacher Pensions and Credentials. 
Members are to be appointed by the Secretary from among 
practitioners and experts with experience relating to teacher 
pensions and credentials. The panel is to study options for 
increasing reciprocity of recognition of teacher credentials 
and portability of teacher pensions between States. Such sums 
as necessary are authorized for fiscal year 2002, to remain 
available until expended.

   title iii--moving limited english proficient students to english 
                                fluency

Part A--Bilingual education

    The Bilingual Education program is designed to provide 
educational assistance to students with limited English 
proficiency to meet challenging State standards. The BEST Act 
makes several changes to the program. The key changes are--
    Program Development and Implementation Grants: This program 
has been repealed and the purposes of this initiative have been 
woven into other programs under this subpart.
    Program Enhancement Projects: Grants will be used for: 
developing, implementing, expanding, or enhancing comprehensive 
preschool, elementary, or secondary education programs for 
limited English proficient children and youth; providing high 
quality professional development; and annually assessing the 
English proficiency of all limited English proficient students. 
In awarding grants, the Secretary of Education may give 
priority to an entity that serves less than 10,000 students; a 
large percentage or number of limited English proficient 
students; and limited or no experience in serving English 
proficient students.
    Comprehensive School and Systemwide Improvement Grants: The 
BEST bill combines these two programs (under current law) into 
one program. Grants awarded under this program will be used for 
an array of purposes including: instructional programs for 
limited English proficient students; professional development; 
and implementation of family education or parent outreach 
programs. One-third of the grants awarded under this section 
will be awarded to school districts and two-thirds will be used 
for school activities.
    Priority: In awarding all Bilingual Education grants, the 
Secretary of Education will give priority to an applicant who: 
experiences a dramatic increase in the number or percentage of 
limited English proficient students enrolled in the applicant's 
program and has limited or no experience in serving limited 
English proficient students; is a local educational agency that 
serves a school district with a total district enrollment that 
is less than 10,000 students; demonstrates a proven success 
record in helping limited English proficient students; proposes 
programs providing for bilingual proficiency both in English 
and another language; or serves a school district where there 
is a large percentage or number of limited English students. In 
addition, the 25 percent limitation for special alternative 
programs has been deleted.
    State Grant Program: The State grant program assists local 
educational agencies with program design, capacity building, 
student performance assessment, and program evaluation. The 
bill increases the minimum funding level from $100,000 to 
$200,000.
    Funding: A funding level of $300 million is authorized for 
fiscal year 2002.

Part B--Foreign language assistance

    The Foreign Language Assistance Program provides 
competitive grant assistance to State or local educational 
agencies to provide foreign language study for elementary and 
secondary school students. Incentive payments are authorized as 
well for schools that offer programs designed to lead to 
communicative competency in a foreign language. The BEST Act 
adds provisions giving special consideration to grant 
applications which make effective use of technology, promote 
innovative activities, or are carried out through a consortium 
including the grantee and an elementary or secondary school. A 
funding level of $35 million is authorized for fiscal year 
2002.

Part C--Emergency immigrant education

    The Emergency Immigrant Education program provides funds to 
local educational agencies that experience unexpectedly large 
increases in their student populations due to immigration to 
assist with the education of those students. A funding level of 
$200 million is authorized for fiscal year 2002.

          title iv--safe and drug-free schools and communities

Part A--State grants

    Purpose: It is the purpose of this part to support programs 
that: prevent violence in and around schools; prevent the 
illegal use of alcohol, tobacco and drugs; involve parents; and 
are coordinated with related Federal, State, and community 
efforts. This part also establishes Principles of Effectiveness 
and increases the use of research-based programs. States are 
provided with greater flexibility in preventing violence and 
drug use.
    State and Local Grants: The State application must include: 
a comprehensive plan for use of funds under the Governor's 
program and the State Department of Education's program; a 
needs assessment; and results of ongoing evaluation activities. 
The bill reserves 80 percent of the funds to be available to 
States for State support and local educational agency grants. 
State and local programs must implement scientifically based 
research initiatives. State educational agencies may use up to 
5 percent of funds for technical assistance and up to 5 percent 
for administration.
    State educational agencies may choose between two options 
for allocating remaining funds to local educational agencies: 
(1) provide at least 70 percent to schools based on enrollment 
and up to 30 percent allocated at a State's discretion or to 
schools the State determines to have the greatest need; or (2) 
provide up to 70 percent on a competitive basis to those 
schools with the greatest need, determined by the State, and 30 
percent to those schools the State determines require 
additional help, but who may not meet ``greatest need'' 
criteria. This would allow States to choose and define a 
competitive or baseline minimum grant system and still allow 
them to help those schools that could not compete under that 
system, if they choose.
    The bill also reserves 20 percent of a State's allocation 
for Governors' Programs of which not less than 95 percent of 
the funds must be used for scientifically based research 
activities. The bill allows Governors to add their money to the 
funds being sent to schools and communities.
    Local Educational Agency Grants: In submitting their 
applications, local educational agencies must include a needs 
assessment, set measurable goals, and describe how they will 
utilize scientifically based research activities.
    Evaluations and Reporting: The bill requires the Secretary 
of Education to consult with a newly created National Advisory 
Committee in creating an evaluation to measure the 
effectiveness of the program.
    Parental Involvement: In the application, use of funds, and 
evaluation sections, the bill emphasizes the importance of 
ensuring that parents are involved, so that they can reinforce 
the violence and drug prevention message at home.
    Federal Activities: The Secretary to authorized award 
grants or contracts to support a variety of activities designed 
to prevent the illegal use of drugs and violence among students 
from pre-school through the postsecondary level.
    Domestic Violence Grants: The Secretary is authorized to 
award grants and contracts to elementary and secondary schools 
that work with experts to enable the schools to support 
training, programming, support services, and policies relating 
to children experiencing or witnessing domestic violence. The 
confidentiality of the victim and the victim's family must be 
maintained.
    Funding: For fiscal year 2002, the bill authorizes $700 
million for the State Grants Program, $150 million for National 
Programs, and $75 million for the National Coordinator 
Initiative. In addition, the bill authorizes $5 million in each 
of fiscal years 2002 through 2004 to support grants to combat 
the impact of experiencing or witnessing domestic violence on 
elementary and secondary school children.

Part B--Gun possession

    The Gun-Free Schools provisions contained in part F of 
title XIV of the current law have been transferred to Part B of 
title IV. These provisions require State receiving funds under 
the BEST Act to have laws requiring local educational agencies 
to expel from school for at least 1 year any student who brings 
a weapon to school.

Part C--School safety and violence prevention

    Part C includes a number of new provisions and allowable 
uses of funds related to school safety and violence prevention, 
including:
    School Safety and Violence Prevention: Provides that 
Federal funds provided under titles IV and subpart 4 of part B 
of title V may be used for training school personnel to 
identify potential threats; to identify troubled youth; to make 
comprehensive school security assessments; to purchase metal 
detectors, locks, and surveillance cameras; to engage in 
collaborative efforts with community-based organizations to 
reduce violence; and to utilize other innovative programs to 
reduce school violence.
    School Uniforms: Provides that nothing in the Act can be 
construed to prohibit schools from establishing a school 
uniform policy and allows funds provided under title IV and 
subpart 4 of part B of title VI to be used for establishing a 
school uniform policy.
    Transfer of School Disciplinary Records: Requires States 
receiving Federal funds under the Elementary and Secondary 
Education Act to establish a procedure by which local 
educational agencies must transfer the suspension and expulsion 
records of any student to any private or public elementary or 
secondary school in which that student seeks enrollment. This 
requirement does not apply to private schools.
    Background Checks: Amends the National Child Protection Act 
of 1993 to specify that individuals who are employed, or seek 
employment, with schools are included in the provisions of that 
act relating to background checks.

Part D--Environmental tobacco smoke

    The bill transfers to the Elementary and Secondary 
Education Act the environmental tobacco smoke provisions that 
were contained under part C of title X of the Goals 2000: 
Educate America Act to part D of title IV. These provisions 
prohibit smoking within any indoor facility used for the 
provision of education, routine health care, day care, library 
services, or early childhood development.

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

Part A--Public school choice

    This part contains 3 programs: charter schools, magnet 
schools, and public school choice.
            Subpart 1--Charter schools
    Charter Schools are public schools that are released from 
various regulations that normally apply to public schools in 
exchange for increased student performance accountability. The 
Charter Schools program supports the establishment of charter 
schools in States that have enacted State charter school laws. 
The program supports the design, initial implementation, and 
evaluation of charter schools. A funding level of $190 million 
is authorized for fiscal year 2002.
            Subpart 2--Magnet schools assistance
    Magnet schools are public elementary or secondary schools 
that offer a special curriculum which attracts substantial 
numbers of students of different racial backgrounds. The 
purpose of this program is to assist schools in increasing 
their racial, economic, linguistic, or ethnic diversity. A 
funding level of $125 million is authorized for fiscal year 
2002.
            Subpart 3--Public school choice
    The Public School Choice initiative requires all school 
districts receiving funds under part A of title I to provide 
students in low-performing title I schools with the option to 
transfer to another public school or public charter school in 
the school district, unless prohibited by State or local law. 
Local educational agencies located within States that qualify 
for the small state minimum under part A of title I are not 
required to comply with this requirement, but may comply if 
they so choose.

Part B--Flexibility

    This part contains several initiatives designed to provide 
greater flexibility to schools and school districts. These 
efforts include the Education Flexibility Partnerships; the 
Rural Education Initiative; Waivers; and Innovative Education 
Program Strategies.
            Subpart 1--Education flexibility partnerships
    The Education Flexibility Partnership Act allows State 
educational agencies, the flexibility to waive certain Federal 
requirements, along with State requirements for the purpose of 
raising student achievement. The provisions of Public Law 106-
25, which was signed into law in 1999 as a free-standing bill, 
have been incorporated into the BEST Act.
            Subpart 2--Rural education initiative
    The Rural Education Initiative is to provide adequate 
funding to rural school districts to enhance their ability to 
improve student performance. Chapter 1, the Small Rural School 
Achievement Program, permits rural schools districts to combine 
funds and apply these funds toward local initiatives designed 
to improve student achievement.
    In addition, participating local educational agencies are 
eligible to receive a supplemental grant that, when combined 
with other Federal dollars, will enable these small rural 
schools to offer programs and activities of sufficient size, 
scope, and quality to have a significant impact upon student 
and school performance. Chapter 2, the Low-Income and Rural 
School Program, is designed to meet the needs of rural school 
districts serving large numbers of disadvantaged students. A 
funding level of $300 million is authorized for fiscal year 
2002, of which $150 million is to be used to support activities 
under chapter 1.
            Subpart 3--Waivers
    Under the Waivers section, a State educational agency, 
local educational agency, or Indian tribe may seeks waivers 
from the Secretary of Education. The entity seeking the waiver 
must describe the Federal requirements to be waived and how, in 
waiving those requirements, overall student achievement will 
improve.
            Subpart 4--Innovative Education Program Strategies
    The Innovative Education Program Strategies, often referred 
to in the current law as ``Title VI,'' has been moved to title 
V which is focused on providing flexibility to State and local 
educational agencies. This program provides support to State 
and local educational agencies to develop education reform 
initiatives that will improve student, school, and teacher 
performance. The administration of program funds is handled by 
the State educational agencies. However, the design and 
implementation of activities under the program are the 
responsibilities of the local educational agencies, school 
superintendents, principals, and teachers. A funding level of 
$850 million is authorized for fiscal year 2002.

Part C--Flexibility in the use of administrative and other funds

    State educational agencies and local educational agencies 
have the ability to consolidate administrative funds for one or 
more of the following: all title I programs; administration of 
the Innovative Education Program Strategies initiative; 
establishment and operation of peer-review mechanisms under the 
BEST Act; and dissemination of information regarding model 
programs and practices.

Part D--Coordination of programs, consolidated state and local plans 
        and applications

    This provisions of this part encourage greater cross-
program coordination, planning, and service delivery. State 
educational agencies and local educational agencies may 
integrate the following programs into one plan: part A of title 
I; part C of title I; title IV; and Innovative Education 
Program Strategies. Local educational agencies may integrate 
the following into one plan: part A of title I; part A of title 
II; title IV; and Innovative Education Program Strategies.

Part E--Advanced placement program

    Part E authorizes a competitive grant program designed to: 
encourage more students (especially low-income students) to 
take the advanced placement (AP) exam; increase the 
availability of AP courses offered; and broaden the range of 
schools offering AP courses. This program, originally 
authorized as part of the Higher Education Amendments of 1998, 
has been expanded and added to the Elementary and Secondary 
Education Act.
    The Secretary is to give first priority to providing grants 
to State educational agencies to enable them to cover all or 
part of the costs of AP test fees for low-income individuals. 
Seventy percent of any remaining funds will be allocated for 
grants to State and local educational agencies to expand access 
for low-income students to AP programs. Thirty percent of any 
remaining funds will be used for grants to provide students 
with on-line AP courses. A funding level of $50 million is 
authorized for these activities in fiscal year 2002.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

Part A--Parental assistance

    Part A provides leadership, technical assistance, and 
financial support to nonprofit organizations and local 
educational agencies to implement successful parent involvement 
programs. The Secretary of Education is authorized to award 
competitive grants to nonprofit organizations and local 
educational agencies to establish school-linked or school based 
parental information and resource centers. Grant funds will be 
used to assist parents in participating effectively in their 
children's education. A funding level of $50 million is 
authorized for these activities in fiscal year 2002.

Part--B Improving academic achievement

    The purpose of part B is to create rewards for states and 
schools that make the most progress in improving educational 
achievement. The Secretary would be authorized to make 
``Achievement in Education Awards'' to support States, and ``No 
Child Left Behind Awards'' to recognize schools. The Secretary 
would also be authorized to make one-time bonus payments to 
States that complete the development of assessments in advance 
of the schedule outlined in section 1111. The BEST Act 
authorizes $50 million for fiscal year 2002 for these purposes, 
as well as other activities designed to promote the improvement 
of education, as part of the Fund to Improve Education 
Achievement (FIEA).
    The BEST Act also authorizes the Secretary to reduce 
administrative funds to those States that fail to make adequate 
yearly progress and that show no statistically significant 
improvement for students who are racial or ethnic minorities 
and for economically disadvantaged students. The Secretary's 
determination will be based on both the results of the State 
assessment system described in section 1111, and the results of 
4th and 8th grade assessments by the National Assessment of 
Educational Progress (NAEP) in mathematics and reading. 
However, no sanctions would be levied against a State based 
solely on the results of its NAEP assessment. After 2 years of 
insufficient progress, the Secretary may reduce administrative 
funds by up to 30 percent, after 3 such years, up to 75 
percent.
    In addition to authorizing $50 million for FIEA, part B 
authorizes $400 million and $110 million for the development of 
State assessments and conduct of the state NAEP, respectively, 
in fiscal year 2002.

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

    The purpose of title VII is to modify and improve the 
educational services provided for American Indian, Alaska 
Native, and Native Hawaiian students. The BEST Act continues to 
make grants available to schools operated or supported by the 
Bureau of Indian Affairs and allows local educational agencies 
to provide an increased range of services to include those 
that: (1) promote the incorporation of culturally responsive 
teaching and learning strategies; (2) incorporate American 
Indian and Alaska Native specific curriculum content into the 
curriculum; (3) promote coordination among tribal, Federal, and 
State public schools in areas that will improve education; and 
(4) offer family literacy activities. The BEST Act gives local 
educational agencies which receive formula grants under part A 
the ability to commingle all of the Federal funding they 
receive for educating Indian children, regardless of which 
agency provides it, into 1 coordinated, comprehensive program 
to meet the specific needs of Indian children. The BEST Act 
also authorizes the provision of family literacy services for 
Indian, Native Hawaiian, and Native Alaskan students, limits 
administrative costs to 5 percent, and consolidates a number of 
programs under Part B: Native Hawaiian Education and Part C: 
Native Alaskan Education. Fiscal year 2002 funding 
authorizations levels are $116 million for Indian Education, 
$28 million for Native Hawaiian Education, and $17 million for 
Alaska Native Education.

                          TITLE VIII--REPEALS

    This title repeals titles IX through XIV of the Elementary 
and Secondary Education Act of 1965 and repeals the Goals 2000: 
Educate America Act.

                   TITLE IX--MISCELLANEOUS PROVISIONS

    This title authorizes a grant award to the National Board 
on Testing and Assessment of the National Research Council to 
conduct an ongoing evaluation of high stakes assessments. A 
funding level of $4 million is authorized for fiscal year 2002, 
to remain available until expended.

General notes

    1. Throughout the bill, specific funding levels are 
established for fiscal year 2002 and ``such sums as may be 
necessary'' are authorized for each of the 6 succeeding fiscal 
years. Unless otherwise noted, all programs included in the 
BEST Act are authorized through fiscal year 2008.
    2. Impact Aid programs remain a part of the Elementary and 
Secondary Education Act. These programs were reauthorized in 
2000 as part of the Floyd D. Spence National Defense 
Authorization Act for fiscal year 2001 (Public Law 106-398). 
The BEST Act retains impact aid programs as title VIII, but 
makes no changes to these programs.

             III. Legislative History and Committee Action

    During the 106th Congress, the committee held 24 hearings 
on issues related to the reauthorization of the Elementary and 
Secondary Education Act (ESEA). On February 15, 2001, the full 
committee held a hearing on President Bush's education 
proposals-receiving testimony from Education Secretary Roderick 
Paige.

                           EXECUTIVE SESSION

    On March 7 and 8, 2001, the committee met in executive 
session to consider the Better Education for Students and 
Teachers (BEST) Act.
    An initial draft of the Better Education for Students and 
Teachers Act was circulated to members of the committee on 
February 16, and a substitute proposal was circulated on March 
2. By unanimous consent of the committee, the March 2 
substitute, in combination with the 4 amendments offered by 
Senator Jeffords at the outset of the executive session, served 
as original text for purposes of further amendment.
    The committee took action on 30 amendments, adopting 21 of 
them and defeating the remaining 9. Fourteen amendments were 
offered and subsequently withdrawn, and an additional 19 
amendments were filed but not offered. The bill as amended was 
adopted by a roll call vote of 20 yeas to 0 nays.

                  Votes Taken During Executive Session

    Eight roll call and 23 voice votes were taken during 
committee consideration of the Better Education for Students 
and Teachers Act, as follows:
    1. Senator Jeffords offered a manager's amendment that 
includes technical corrections to the bill language distributed 
to members on March 2, as well as several small issues worked 
out with members prior to the executive session. The amendment 
was adopted by voice vote (en bloc with the 3 Jeffords 
amendments described immediately below).
    2. Senator Jeffords offered an amendment to expand and 
strengthen the accountability provisions of the bill. The 
amendment: (1) includes a set-aside to help States, school 
districts, and schools develop school improvement strategies; 
(2) requires States to create statewide standards for moving 
all students towards proficiency; (3) requires States to test 
all students in grades 3 through 8 annually in math and 
reading, authorizing funds to cover development costs and half 
of the testing implementation costs; (4) requires States to 
administer the National Assessment of Educational Progress 
(NAEP) reading and math tests in grades 4 and 8, with the 
Federal government assuming the cost of NAEP; (5) requires 
States, school districts, and schools to take stronger actions 
on a 3-year time line if they are not meeting the annual yearly 
progressgoals; (6) creates an achievement fund to reward high 
performing States; and (7) requires schools, school districts, 
and States to develop report cards. The amendment was adopted 
by voice vote (en bloc).
    3. Senator Jeffords offered an amendment making several 
technical and clarifying changes to the new Reading First 
program that was included in the substitute distributed to 
members on March 2. The Reading First program, in Part B of 
Title I, has the goal of having all students read well by the 
end of third grade. The amendment was adopted by voice vote (en 
bloc).
    4. Senator Jeffords offered an amendment to authorize $75 
million in fiscal year 2002 and such sums as may be necessary 
in the 6 succeeding fiscal years for the establishment of the 
Early Reading First program as a complement to the Reading 
First initiative. The goal of Early Reading First is to assist 
preschool age children in their language and early literacy 
development. The program would provide competitive grants to 
schools and other programs serving children ages 3-5, and it 
contains a strong evaluation component. The amendment was 
adopted by voice vote (en bloc).
    5. Senator Kennedy offered an amendment to require that 
local educational agencies use at least 50 percent of their 
teacher quality funds for professional development activities 
(rather than using all or a majority of funds for teacher 
recruitment or hiring). The amendment was defeated by a roll 
call vote 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    6. Senator Hutchinson offered an amendment to add teacher 
merit pay and the reform of tenure systems as permissive uses 
of State funds under the teacher quality provisions of the 
bill. These activities, as well as teacher testing, would also 
be added to the list of permissive activities to be conducted 
by local educational agencies. The amendment was adopted by 
voice vote.
    7. Senator Mikulski offered an amendment to authorize a new 
Community Technology Centers program. The program would provide 
competitive grants to allow foundations, museums, libraries, 
for-profit businesses, non-profits, community-based 
organizations, institutions of higher education, State 
educational agencies, local educational agencies, or consortia 
to expand access to computers and related services to 
disadvantaged residents of economically distressed urban and 
rural communities. The amendment would authorize $100 million 
for fiscal year 2002 and such sums as may be necessary for the 
4 succeeding fiscal years. The amendment was defeated by voice 
vote.
    8. Senator Bingaman offered an amendment to establish an 
expanded Advanced Placement (AP) testing program within the 
Elementary and Secondary Education Act. Seventy percent of the 
funds would be allocated for grants to State and local 
educational agencies to expand access for low-income students 
to AP programs. The remaining 30 percent of funds would be used 
for grants to provide students with on-line AP courses. 
Authorized funding is $50 million in fiscal year 2002 and such 
sums as may be necessary for the out-years. The amendment was 
adopted by voice vote (en bloc with the 2 Bingaman amendment 
described immediately below).
    9. Senator Bingaman offered an amendment to authorize 
school dropout prevention programs. Of that amount, 10 percent 
is allocated for national activities. The remaining 90 percent 
is to be used for States formula grants and for capacity 
building and design initiatives. State funds are to be awarded 
competitively to local schools to support dropout prevention 
programs, to assist school reentry, and to raise the academic 
achievement of all students. Authorized funding is $50 million 
in fiscal year 2002 and such sums as may be necessary for the 
out-years. The amendment was adopted by voice vote (en bloc).
    10. Senator Bingaman offered an amendment to authorize a 
new grant program to provide higher education consortia that 
prepare prospective teachers to better train them in the use of 
advanced technologies. Authorized funding is $150 million in 
fiscal year 2002 and such sums as may be necessary for the out-
years. The amendment was adopted by voice vote (en bloc).
    11. Senator Harkin offered an amendment to authorize a 
school renovation grant program. The amendment would authorize 
a funding level of $1.6 billion for fiscal year 2002 and such 
sums as may be necessary for each of the fiscal years 2003 
through 2006. The amendment was defeated by a roll call vote of 
10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    12. Senator Warner offered an amendment to permit local 
municipalities to compete for grant funds awarded under the 
21st Century Community Learning Centers program. The amendment 
was adopted by voice vote.
    13. Senator Murray offered an amendment to authorize 
funding for the continuation of the class-size reduction 
program as a separate program. (The BEST bill combines this 
program with the Eisenhower professional development program 
and makes class-size reduction a permissive use of funds.) The 
amendment authorized $2.4 billion for fiscal year 2002 and such 
sums as may be necessary for fiscal year 2003 through 2009. The 
amendment was defeated by a roll call vote of 10 yeas to 10 
nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    14. Senator Murray offered an amendment to increase the 
fiscal year 2002 authorization for homeless education programs 
from $40 million to $90 million. During committee discussion of 
the amendment, Senator Murray modified it to provide for a 
fiscal year 2002 authorization level of $70 million. The 
amendment, as modified, was adopted by voice vote.
    15. Senator Clinton offered an amendment require that local 
educational agencies use 10 percent of their allotments to 
recruit, hire, and train teachers. It would also include 
paraprofessional training programs and programs that attract 
mid-career professionals to teaching among the examples of 
recruitment activities which could be conducted. During 
committee discussion of the amendment, Senator Clinton modified 
the amendment to delete the provisions requiring a 10-percent 
set-aside. The amendment, as modified, was adopted by voice 
vote.
    16. Senator Clinton offered an amendment to authorize $3 
million for a National Teacher Recruitment Campaign as part of 
the national programs portion of the Teacher Quality provisions 
of the bill. The Secretary is to make a competitive grant to a 
single national coalition of teacher and media organizations, 
including the National Teacher Recruitment Clearinghouse. Grant 
funds would be used to conduct a national public service 
campaign concerning the resources for and routes to entering 
teaching. The amendment was adopted by voice vote.
    17. Senator Clinton offered an amendment to include 
recruitment and mentorship as activities in the national 
program dealing with professional development of school 
leadership and to clarify that principals and assistant 
principals are included in the term ``school leadership.'' The 
amendment was adopted by voice vote.
    18. Senator Clinton offered an amendment to require that 
results from assessments be provided to parents and teachers 
within 4 weeks after the test is taken. During committee 
discussion of the amendment, Senator Clinton modified it to 
delete the 4-week time limit and to instead require that 
parents and teachers be provided with assessment results as 
soon as is practicably possible after the test is taken. The 
amendment, as modified, was adopted by voice vote.
    19. Senator Bingaman offered an amendment to establish a 
National Panel on Portability of Teacher Pensions and 
Credentials. The 9-member panel, appointed by the Secretary, is 
to study options for increasing the reciprocity of recognition 
of teacher credentials and the portability of teacher pensions 
between States and to issue a report 1 year after members of 
the panel have been appointed. The amendment was adopted by 
voice vote.
    20. Senator Sessions offered an amendment to add provisions 
dealing with school safety and violence prevention activities, 
school uniforms, transfer of school disciplinary records, 
employee background checks, and memorial services at public 
schools to Title IV (Safe and Drug-Free Schools and 
Communities) of the bill. During consideration of the 
amendment, Senator Sessions modified it to clarify the 
application of the provisions and to delete the provisions 
relating to memorial services. The amendment, as modified, was 
adopted by voice vote.
    21. Senator Gregg offered an amendment to permit the 
Secretary to award 21st Century Community Learning Centers 
grants to community based organizations and to waive any 
provision of the program requiring that the money be used in or 
through a school. Following a discussion of additional 
revisions to the 21st Century Community Learning Centers 
program to be made in a managers' package for the floor, the 
amendment was adopted by voice vote.
    22. Senator Dodd offered an amendment to set fixed dollar 
figures in each of the 7 years of the reauthorization bill for 
the grants to State and local educational agencies authorized 
under part A of title I. Beginning with a fiscal year 2002 
level of $15 billion, the authorized funds would increase each 
year--ending at a funding level of $ 37.7 billion in fiscal 
year 2008 (full funding under the allocation formula). (The 
BEST bill provides an authorization level of $15 billion for 
fiscal year 2002 and ``such sums'' in each of the 6 succeeding 
fiscal years.) The amendment was defeated by a roll call vote 
of 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    23. Senator Dodd offered an amendment to increase the 
authorization of the 21st Century Community Learning Centers 
program from $846 million to $1.5 billion for fiscal year 2002. 
The amendment was adopted by voice vote.
    24. Senator Wellstone offered an amendment to authorize $4 
million to support a study by the National Academy of Sciences 
of the impact/effects of high stakes testing. The amendment was 
adopted by voice vote.
    25. Senator Reed offered an amendment to authorize a new 
formula grant program to State educational agencies to help 
local educational agencies and schools support the acquisition 
of up-to-date school library materials and provide funds for 
training of school library resource personnel. The amendment 
would authorize $475 million in fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years. 
The amendment also authorizes an additional $25 million in 
fiscal year 2002 and such sums as may be necessary in each of 
the 6 succeeding fiscal years for expanding the non-school 
hours of operation of school libraries. The amendment was 
defeated by a roll call vote of 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    26. Senator Reed offered an amendment to authorize the 
Secretary to make grants to local educational agencies to 
support and enhance the involvement of parents in schools and 
their children's education. The amendment authorizes $500 
million in fiscal year 2002 and such sums as may be necessary 
in subsequent years for this purpose. The amendment also 
requires the State educational agency to include in its 
application for funding under title I a description of its 
parental involvement policies, how it will use federal funds to 
implement those policies, and how it will evaluate such 
activities. Each State would also need to involve parents in 
the review of its plan. The amendment was defeated by a roll 
call vote of 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    27. Senator Reed offered an amendment to authorize a 
competitive grant program for the establishment or expansion of 
child opportunity zone family centers in elementary and 
secondary schools. Such centers are school-based or school-
linked centers that provide comprehensive support services 
designed to improve the education, health, mental health, 
safety, and economic well-being of children and their families. 
The amendment would authorize a funding level of $100 million 
in fiscal year 2002 and such sums as may be necessary in each 
of the 6 succeeding fiscal years. The amendment was defeated by 
voice vote.
    28. Senator Murray offered an amendment to mandate that 3 
additional elements--dropout rates, professional 
qualifications, and class size--be included in the state and 
local report cards required by the bill. Under the bill, the 
inclusion of these 3 elements is discretionary. The amendment 
was defeated by a roll call vote of 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    29. Senator Murray offered an amendment to provide that 
State educational agencies, in making grants to local 
educational agencies to improve the use of technology in 
education, must give priority to districts with the highest 
number or percentage of children in poverty and must provide 
for an equitable urban/rural distribution of grant funds. The 
amendment was adopted by voice vote.
    30. Senator Wellstone offered an amendment to authorize $5 
million in each of the fiscal years 2002 through 2004 to 
provide grants to provide training for staff, education 
programs for students, and materials to combat the impact of 
experiencing or witnessing domestic violence. These provisions 
would be included in title IV (Safe and Drug-Free Schools and 
Communities). The amendment was adopted by voice vote.
    31. The substitute bill, as amended, was reported favorably 
by a roll call vote of 20 yeas to 0 nays.
        YEAS                            
Jeffords
Gregg
Frist
Enzi
Hutchinson
Warner
Bond
Roberts
Collins
Sessions
Kennedy
Dodd
Harkin
Mikulski
Bingaman
Wellstone
Murray
Reed
Edwards
Clinton

             Amendments Offered and Subsequently Withdrawn

    Fourteen amendments were offered, discussed, and 
subsequently withdrawn:
    1. Senator Gregg offered and then withdrew an amendment to 
authorize $500 million for a new child centered program within 
title I. Under the program, up to 10 States and up to 20 local 
educational agencies located in States which do not participate 
would allocate all their part A funds (including the additional 
amount authorized in the amendment) to title I-eligible 
children on a per-pupil basis. The per-pupil amount could be 
used for supplemental educational services provided by the 
school or by another entity and would follow any eligible child 
who transfers to another school.
    2. Senator Frist offered and then withdrew an amendment to 
establish an Academic Achievement for All Demonstration 
program. Under the demonstration program, up to 15 States would 
be permitted to combine funds under a dozen Federal education 
formula grant programs to use to advance the educational 
priorities of the State. Participating States must show results 
in improving the academic performance of all students during 
the 5-year term of the performance agreement. If a State 
chooses not to participate, any local educational agency in the 
State may do so.
    3. Senator Kennedy offered and then withdrew an amendment 
to require that, within 4 years, every teacher who provides 
services to title I students will meet the definition of 
``highly qualified'' included in the bill. The amendment would 
also prohibit a local educational agency from using teacher 
quality funds to hire a teacher who is not ``highly 
qualified.''
    4. Senator Dodd offered and then withdrew an amendment to 
authorize the establishment of an Early Childhood Educator 
Professional Development Program. The amendment would provide a 
funding level of $100 million in fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years.
    5. Senator Dodd offered and then withdrew an amendment to 
increase the amount of basic grants for Puerto Rico under title 
I in order to provide for funding equity. The increases would 
be phased in over a 5-year period, beginning in fiscal year 
2002.
    6. Senator Harkin offered and then withdrew an amendment to 
authorize grants to establish or expand elementary and 
secondary school counseling programs. The amendment would 
provide a funding level of $100 million in fiscal year 2002 and 
such sums as may be necessary in each of the 4 succeeding 
fiscal years.
    7. Senator Bingaman offered and then withdrew an amendment 
to authorize grants to schools and local educational agencies 
to assist in the establishment of smaller learning communities. 
The amendment would provide a funding level of $200 million in 
fiscal year 2002 and such sums as may be necessary in each of 
the 4 succeeding fiscal years.
    8. Senator Bingaman offered and then withdrew an amendment 
to earmarks funds to establish aSchool Security and Technology 
Center at the Sandia Lab that would serve as a resource center 
for local educational agencies. The amendment would also 
provide grants to local educational agencies to improve the 
security at their schools. The amendment would authorize a 
funding level of $2.75 million and $10 million, respectively, 
in each of the fiscal years 2002, 2003, and 2004.
    9. Senator Wellstone offered and then withdrew an amendment 
to provide that States would not have to develop or implement 
the new annual assessment requirements in title I unless: (1) 
the authorization for this development (authorization is $400 
million in the bill) is fully funded (in which case the 
deadline for implementation would be delayed for 1 school 
year); and (2) funding for IDEA reaches 40 percent of the 
national average per-pupil expenditure.
    10. Senator Wellstone offered and then withdrew an 
amendment to provide that States would not have to develop or 
implement the new annual assessment requirements in Title I 
unless: (1) the authorization for this development 
(authorization is $400 million in the bill) is fully funded (in 
which case the deadline for implementation would be delayed for 
one school year); and (2) Title I, Part A is funded at $15 
billion, the authorized amount in the bill.
    11. Senator Wellstone offered and then withdrew an 
amendment to delete a provision in the bill that rewards states 
with one-time payments for developing their assessments ahead 
of schedule. In its place it would authorize one-time payments 
for States that develop particularly high-quality assessments.
    12. Senator Murray offered and then withdrew an amendment 
to add 2 options to the 3 included in the bill for schools 
subject to reconstitution. The current options are: (1) 
reopening as a charter school; (2) replacing all or most of the 
school staff; or (3) making alternative governance 
arrangements. The Murray amendment would add the following 
options: (1) replacing the school's leadership, including the 
principal, for which purpose bonuses may be given from title I 
funds, and (2) providing extended learning time through an 
academically focused after-school program.
    13. Senator Reed offered and then withdrew an amendment to 
require that local educational agencies use at least 5 percent 
of their title I allocations in FY 2002 and 2003 for 
professional development. The percentage would be increased to 
10 percent in subsequent fiscal years.
    14. Senator Clinton offered and then withdrew an amendment 
to authorize a public school choice demonstration program. 
States and local educational agencies would apply to the 
Secretary for funds to plan, implement, and evaluate innovative 
approaches to public school choice. A funding level of $50 
million would be authorized in fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years.

            IV. Explanation of the Bill and Committee Views

      title I--helping disadvantaged children meet high standards

Part A--Basic programs

    The purpose of part A is to provide opportunities for those 
students served by part A of title I to meet challenging State 
performance and content standards. The last revision of title 
I, which occurred in 1994, made major changes regarding 
standards, assessment, professional development, and 
accountability. The 1994 law also established a 7-year 
timetable for all States to develop and implement standards and 
assessments. The BEST Act builds upon these reforms and expands 
them to all students.
    The 1994 law created several mechanisms to measure student 
performance. One such mechanism was adequate yearly progress. 
The BEST Act changes the definition of adequate yearly progress 
by stating that all children shall meet the State's performance 
level for proficiency within 10 years. In addition, adequate 
yearly progress must be based on State standards and 
assessments.
    The BEST Act significantly expands the scope and frequency 
of current assessment efforts. States receiving title I funds 
would be required to establish performance standards for all 
students, and assess students in grades 3-8 annually in 
mathematics and reading by school year 2005-2006. The results 
of these assessments would be made available to parents and the 
public as the primary measure of success in reaching the 
State's performance standards, at the school, local educational 
agency, and statewide level. In recognition of the substantial 
investment this additional assessment will require, the Act 
provides funding for nearly all development costs as well as 
guaranteeing half the ongoing costs for implementation.
    The BEST Act also takes several steps to provide better 
information to parents and the public on the progress of 
schools in meeting State performance standards. The Act would 
require report cards that would indicate the progress of 
students in meeting State performance goals, disaggregated into 
several subgroups, including race, gender, disability, and 
income. Report cards would report results at the school, local, 
and State levels. In recognition of the statistical limits of 
such disaggregation, the BEST Act does not require 
disaggregation for groups of students in small schools or local 
educational agencies that would yield invalid results, and 
would permit techniques, such as multi-year aggregation, that 
would strengthen the validity of assessment data. In addition, 
data could not be disaggregated when doing so would violate an 
individual's privacy.
    Another reform included in the 1994 law was the 
establishment of the school improvement and corrective action 
process for local educational agencies and schools. The BEST 
Act expands these provisions by requiring State educational 
agencies and local educational agencies to take at least 1 of a 
series of corrective actions with respect to schools and local 
educational agencies that do not improve after being identified 
as failing to meet adequate yearly progress.
    In addition, in order to draw broad public attention to the 
efforts of States and local educational agencies to turn around 
failing schools, the BEST Act requires States to report 
annually to the Secretary the number and names of each school 
identified for school improvement, the reason why each school 
was so identified, and the measure taken to address the 
performance problems of each school.
    A new mechanism for measuring the progress of States 
established by the BEST Act is required participation in the 
National Assessment of Education Progress (NAEP). While nearly 
all States now participate in NAEP, such participation would be 
required of all States, and paid for by the Federal government, 
to provide a benchmark for comparison among States and to serve 
as confirmation of progress or lack thereof for the purposes of 
the State rewards and sanctions outlined in title VI. No 
sanctions would be levied against a State based solely on the 
results of its NAEP assessment.
    The BEST Act also expands parental involvement and 
professional development activities. Both the State and local 
educational agencies must implement parental involvement and 
professional development programs that have demonstrated 
effectiveness. The State is required to provide technical 
assistance to districts and schools that may be having problems 
implementing parental involvement and professional development 
activities.
    Since 1994, the title I school-wide program has become 
quite popular. Due to its popularity, the committee changed the 
eligibility qualification from not less than 50 percent of 
enrolled children from low-income families to not less than 40 
percent.
    Two new provisions pertaining to school choice have been 
included in the BEST Act. The bill requires local educational 
agencies to offer public school choice alternatives to students 
attending title I schools that have been identified as needing 
improvement or corrective action, as well as schools where 
violent incidents have occurred.
    The BEST Act increases the authorization level for fiscal 
year 2002 for part A to $15 billion. Of amounts appropriated, 
up to 5 percent may be reserved by State educational agencies 
to use for school improvement activities, assessment 
initiatives, and awards for outstanding schools and educators. 
The State will determine how the reservation will be used.

Part B--Literacy for children and families

            Subpart 1--William F. Goodling Even Start Family Literacy 
                    Act
    The William F. Goodling Even Start Family Literacy program 
is designed to improve the educational opportunities for low-
income families by integrating early childhood, adult basic 
education, and parental education into a unified family 
literacy program. Even Start grants are geared to areas with 
high rates of poverty, illiteracy, unemployment, families of 
limited English proficiency, or disadvantaged children. The 
program was reauthorized in 2000 as part of the Omnibus 
Consolidated and Emergency Supplemental Appropriations Act for 
fiscal year 2001 (Public Law 106-554), and the BEST Act makes 
no changes to the program.
            Subpart 2--Reading First
    President Bush has set as a goal for the nation that all 
students be proficient readers by the end of the third grade. 
This is critically important because after third grade, in most 
of our nation's schools, reading is taught less as a skill in 
and of itself but increasingly becomes a tool for learning 
other knowledge and skill areas. Young students who can not 
read well--with speed, accuracy, and understanding--are likely 
not only to fall further behind their peers in reading ability, 
but also will not be able to keep up in the other subjects 
areas. Reading is truly the foundation for all further school 
success.
    Research carried out over the past 2 decades has given us a 
clear picture of how children learn how to read, what is the 
cause of reading difficulties, and how instruction can be 
designed in order to help nearly all children become proficient 
readers. A recent report of the National Reading Panel, 
``Teaching Children to Read,'' summarizes some of the most 
important threads of this research and presents its 
implications for instruction. It is this research base that 
forms the basis on which the Reading First program is built. 
Like the Reading Excellence Act, this new program requires that 
all activities carried out with Reading First funds must be 
based on scientific reading research. In fact, this term is 
defined in this new program exactly as it is in the Reading 
Excellence Act.
    The overall focus of Reading First is to have the knowledge 
generated by solid research reflected in the teaching of 
reading to all students. The BEST Act allows for the 
participation of parents and other community members in the 
implementation of programs supported under both Reading First 
and Early Reading First, so long as they are based on evidence 
from scientific research meeting the definition in the Act. For 
example, a number of States, including Texas, Ohio, and 
Michigan, have implemented reading programs with community and 
parent involvement that they have found to be effective. So 
long as they comply with the requirements of the Act with 
regard to being based on sound research and covering the basic 
components of reading instruction, these approaches can be 
important tools in helping all children learn to read well by 
the end of third grade.
    All State educational agencies are eligible to apply for 
Reading First funds. However, applications must be approved by 
a peer review panel in order to be funded. It is the intent of 
the committee that the Secretary and the review panels 
seriously consider the quality of the applications--under both 
the formula and competitive grant sections--and insure that 
Reading First funds are used to improve reading instruction 
based on scientific reading research. In addition, the 
committee intends that the funds appropriated under this 
subpart be targeted to schools serving children most likely to 
experience difficulties learning to read, including children 
with disabilities and children learning to speak and/or read 
English as a second language.
            Subpart 3--Early Reading First
    While explicit instruction in reading usually begins in 
kindergarten or first grade, research has clearly demonstrated 
that the skills which make learning to read possible develop at 
a much earlier age. A recent report from the Department of 
Education--``The Kindergarten Year''--found that children 
arrive at kindergarten with significant differences in their 
early language and pre-literacy skills. Those children with 
more ``risk factors''--coming from poor families, having 
parents with low levels of education--lacked the foundation 
skills identified by research as critical to successfully 
learning to read.
    It is the purpose and goal of the Early Reading First 
program to demonstrate how programs serving preschool age 
children can help those who are at risk for reading 
difficulties gain the important language and pre-literacy 
skills identifies by rigorous research. Like the Reading First 
program, it is the intent of the committee that funds 
appropriated under this subpart be targeted at programs serving 
those children most likely to need this program-based 
assistance. The research would indicate this should include 
children from poor families, children whose parents have low 
levels of education and literacy, children with disabilities, 
and children learning to speak English as a second language. In 
addition, since parents should be a critical part of this early 
childhood learning process, the committee believes that 
programs serving both children and parents should be included 
in the programs funded.
    Since there is no uniform organizational structure at the 
local level to designate as an eligible applicant, the 
committee intends that the Secretary, in awarding these grants, 
give priority to applicants that can show that Early Reading 
First funds will benefit a broad coalition or collaboration of 
local programs serving preschool age children. In this way, the 
limited funds being made available through this subpart can 
have the greatest impact at the community level.
    Since this is a demonstration program, and the research 
base for language and literacy development in this age group is 
less well developed, the committee has included two important 
national activities. The evaluation authorized by this subpart 
should be carried out with the same scientific rigor as the 
definition of ``scientifically based reading research'' 
describes. It is the expectation of the committee that these 
evaluation results will themselves advance our knowledge of how 
language and pre-literacy skills develop in the preschool years 
and how programs serving these children and their families can 
ensure that nearly all children arrive at school ready to 
learn. In the same vein, the committee has required the 
Secretary to carry out research to advance our knowledge in 
this important area. It is the committee's expectation that 
this research will be carried out in such a manner so as to 
meet the criteria for quality and rigor established by the 
National Reading Panel.

Part C--Education of migratory children

    The Migrant Education program provides grants to State 
educational agencies to develop or improve educational programs 
for migrant students. Most migrant programs are administered by 
local educational agencies and operate during both the regular 
school year and in the summer. Priority for services is given 
to current migrant students and to students who are failing, or 
at greatest risk of failing, to meet State standards. The BEST 
Act builds upon current law to ensure that migratory children 
have the opportunity to attain high levels of educational 
excellence. A funding level of $400 million is authorized for 
fiscal year 2002.

Part D--Initiatives for Neglected, Delinquent or At-Risk Students

    The Initiatives for Neglected, Delinquent or At-Risk 
Students program is designed to meet the academic and skills 
building needs of at-risk, school-aged youth in all States and 
remains unchanged from current law. A funding level of $50 
million is authorized for fiscal year 2002.

Part E--Evaluations and demonstrations

    The BEST Act retains current law and authorizes $35 million 
for fiscal year 2002.

Part F--21st Century Community Learning Centers

    The BEST Act includes the reauthorization of the 21st 
Century Community Learning Centers program. The bill makes 
several revisions to current law by placing an emphasis on 
academic enrichment programs. In addition, community-based 
organizations, public and private entities, and units of 
general purpose government will become eligible for 21st 
Century Community Learning Center grants and compete with local 
educational agencies for the funds.
    During the executive session, committee members discussed 
further changes that will be made to the program. The key 
change focused on giving an equal priority to 3 entities for 
the purpose of awarding grants. The 3 entities that will have 
equal priority are: title I-eligible schools; joint 
applications between eligible organizations and title I-
eligible schools; and community-based organizations and other 
eligible organizations serving communities in which title I-
eligible schools are based or located.

Part G--Comprehensive School Reform

    The BEST Act includes the Comprehensive School Reform 
program, often referred to as the Obey-Porter initiative. The 
Comprehensive School Reform program awards formula grants to 
State educational agencies. These grants are designed to assist 
in the implementation of effective school reform models. There 
are a number of demonstration programs that have produced 
positive results in a variety of subject areas. A funding level 
of $200 million is authorized for fiscal year 2002.

Part H--Assistance to address school dropout problems

    An issue of great concern to the members of the committee 
is the escalating school dropout rate. To address this problem, 
a dropout prevention program has been included in theBEST Act. 
The initiative creates a grant program that will provide 
assistance to public schools for the implementation of an 
effective, sustainable, and coordinated dropout effort.

Education for Homeless Children and Youth

    The BEST Act also includes amendments to the Education for 
Homeless Children and Youth program authorized as Subtitle B of 
Title VII of the Stewart D. McKinney Homeless Assistance Act. 
The program provides State formula grant assistance for: the 
establishment of Offices of Coordinator of Education of 
Homeless Children and Youth in States; the development and 
implementation of State plans for the education of homeless 
children; and subgrant support to local educational agencies 
for the education of these children.
    The committee notes that much progress has been made since 
the enactment of the homeless education program in 1987. At 
that time, nearly half of all homeless children were not 
attending school. Currently, an estimated 88 percent of these 
children are enrolled in grades K-12. At the same time, much 
remains to be done in overcoming the particular challenges 
involved in educating homeless children and youth. A 
substantial portion of homeless children do not attend school 
regularly. The mobility and frequent absence of the records or 
immunizations required for enrollment of homeless children 
present significant obstacles to meeting the educational needs 
of these children.
    The BEST Act strengthens provisions of the current law in 
an effort to assure that homeless children receive a quality 
education, to provide for continuity in the education of 
homeless children, and to focus resources on high quality 
programs. Specifically, the BEST Act includes several 
provisions designed to avoid segregating homeless students into 
separate schools. It is estimated that 40 such schools are now 
in operation. Many of these schools were established as 
temporary arrangements, but have now become permanent fixtures. 
Serious questions have been raised regarding the quality of the 
education offered by some of these institutions.
    The bill also contains provisions intended to avoid 
disruption of a child's education program by maintaining the 
child's attendance at his or her school of origin. The bill 
also attempts to avoid enrollment delays by requiring immediate 
enrollment and by directing school officials to make referrals 
for immunizations and to contact other schools to obtain 
required records. Consistent with the committee's efforts 
throughout the BEST Act to focus Federal resources on proven 
approaches, the bill includes new provisions requiring that the 
quality of an application is considered in the provision of 
subgrants to local educational agencies. A funding level of $70 
million is authorized for fiscal year 2002.

                       TITLE II--TEACHER QUALITY

Part A--Teachers

    The committee is unanimous in its interest in improving the 
quality of professional development opportunities for teachers. 
Committee members agree that children can make greater academic 
gains if they have a knowledgeable and caring teacher leading 
their classroom. This bill recognizes that an investment in 
better teachers is an investment in our nation's young people. 
The legislation authorizes $3 billion for fiscal year 2002 for 
teacher quality and classroom quality measures.
    It was the committee's intent to create legislation that 
reflected the observations and recommendations by professionals 
in the field regarding how best to meet the needs of individual 
students in schools across this country. The bill takes a 
flexible approach that allows States and local educational 
agencies to adopt successful models that will work for the 
conditions and circumstances of their schools. It was the 
committee's intent to provide a general framework and funding 
stream for teacher quality initiatives with a specific emphasis 
on professional development and the hiring of qualified 
teachers, while allowing individual school districts to adapt 
programs to meet their specific needs. It is the expectation of 
the committee that the States and local educational agencies 
will maximize the results from the activities of this bill by 
carefully assessing their needs and designing a systematic 
approach to meeting those needs. The bill encourages each State 
educational agency to review relevant research and to explain 
why the activities it proposes in its application are expected 
to improve student performance and outcomes, how the activities 
are aligned to State content and performance standards and 
assessments, and how it will ensure that local educational 
agencies will carry out their proposed activities.
    The BEST Act combines funds and authorities from the 
Eisenhower Program and Class Size Reduction programs. It 
maintains a separate Federal program for teacher quality 
initiatives in recognition of the critically important role 
that teachers play in improving educational opportunities for 
young people. The professional development component of part A 
of title II builds upon the strengths of the Eisenhower program 
by placing an emphasis on innovative professional development 
programs.
    In an effort to direct Federal professional development 
dollars effectively, the bill strictly defines professional 
development as activities that are an integral part of broad 
schoolwide and districtwide educational improvement plans; are 
tied to State content and student performance standards; are 
sustained; and are based on the best available research on 
teaching and learning. The bill requires professional 
development activities to be tied to strategies that 
demonstrate effectiveness in increasing student academic 
achievement and performance. Further, it prohibits the one-day, 
``one-shot'' workshop approach that research and evaluation 
have shown to be largely ineffective in fostering learning and 
changing the way a teacher teaches. In addition, the bill 
provides that professional development activities supported by 
local educational agencies must be designed to improve the 
knowledge of teachers concerning: the academic subjects they 
teach, effective means to improve student achievement and 
performance, and effective use of State standards and 
assessments.
    The BEST Act allows a school district to commit the same 
percentage of funds that it does now to class size reduction 
initiatives, if it so chooses. For a school district that has a 
greater need for professional development, it allows that 
school district to shift funds to that need.
    Title II of the Elementary and Secondary Education Act also 
maintains an important role for institutions of higher 
education in providing professional development for teachers. A 
recent review of the Eisenhower program stated that teachers 
participating in State Agency for Higher Education (SAHE) 
administered activities found that the professional development 
led to enhanced knowledge and skills and to positive changes in 
their classroom teaching practices. In addition, SAHE 
activities were of longer duration and placed a greater 
emphasis on subject matter content, active learning and 
coherence. Using the success of the Eisenhower program as a 
model, institutions of higher education within each State will 
receive a dedicated stream of funding to be provided through 
competitive grants within the State.
    The bill includes strong language that will hold local 
educational agencies accountable for increasing the academic 
achievement for all students. Local educational agencies that 
do not show improvement risk losing control of the formula-
based Federal funds marked for professional development and 
teacher hiring.
    The bill authorizes the Secretary to invest in 4 areas that 
are key to improving teaching and learning in the classroom. 
Under a separately authorized funding stream, the Secretary 
shall make grants to the Troops to Teachers Program, the School 
Leadership Initiative, the National Board for Professional 
Teaching Standards, and the Transition to Teaching program. 
Troops to Teachers is a program that has proven to be effective 
in recruiting former military personnel as classroom teachers. 
The School Leadership Initiative will ensure that funds for 
professional development will be available to principals, 
superintendents and others to enhance their leadership and 
management skills. It authorizes a new program designed to meet 
the unique professional development needs of our Nation's 
school leaders. The Snelling Center for School Leadership in 
Vermont is an example of one place that is addressing the needs 
of our nation's school leaders effectively. Funds made 
available to the National Board for Professional Teaching 
Standards will be used to make grants to State educational 
agencies, local educational agencies, and individuals to 
promote outreach, recruit teachers, or provide for teacher 
subsides. The committee believes that efforts to encourage and 
support teachers to become highly accomplished master teachers 
as recognized through advanced certification or credential 
programs will improve teaching and learning in schools. 
Finally, the Transition to Teaching program will help recruit, 
prepare, and support mid-career professionals to become highly 
qualified teachers.
    A separate authorization of $3 million in fiscal year 2002 
is provided for a National Teacher Recruitment Campaign. The 
Secretary is to make a competitive grant to a single national 
coalition of teacher and media organizations. Grant funds are 
to be used to conduct a national public service campaign 
concerning the resources for and routes to entering teaching.

Part B--Mathematics and science partnerships

    Part B includes important new initiatives designed to 
improve student achievement in the areas of mathematics and 
science by strengthening the training and recruitment of highly 
qualified math and science teachers. In developing these 
initiatives, the committee has drawn from the recommendations 
made by several commissions and organizations which have 
recently called attention to the pressing need in this area. 
These include: The National Commission on Mathematics and 
Science Teaching for the 21st Century, also known as the Glenn 
Commission (``Before It's Too Late''), the National Research 
Council (``Educating Teachers of Science, Mathematics, and 
Technology''), and the US Commission on National Security 
(``Road Map for National Security: Imperative for Change'').
    An enormous improvement in mathematics and science 
education at the K-12 level is necessary if today's students 
want good jobs and the US wants to stay competitive in the 
world economy. Test data from the Third International 
Mathematics and Science Study (TIMSS) in 1995 have shown that 
students from the United States in the fourth grade were among 
the top scorers of students from the 41 nations testing. 
However, both TIMSS and the Third International Mathematics and 
Science Study--Repeat (TIMSS-R) in 1999 show that, by the 
eighth grade, students from the United States test in the 
middle of the students from the countries tested. By the 
twelfth grade, TIMSS shows that students from the United States 
test near the bottom of the students tested. Our students are 
not receiving the education that is required to cause them to 
learn the mathematics and science that students in many other 
countries are learning. They are not receiving an education 
that stimulates their imagination enough that they want to 
learn mathematics and science at a world-class level. Every 
year that our students stay in school, they lose ground in 
mathematics and science knowledge compared with the students of 
other countries of the world.
    The National Assessment of Educational Progress (NAEP) in 
1996 showed that fewer than one-third of all United States 
students in grades 4, 8, and 12 performed at or above the 
``proficient'' achievement level in mathematics and science. 
More than one-third of United States students scored below the 
``basic'' level--lacking mastery of the prerequisite knowledge 
and skills needed for ``proficient'' at each grade. The results 
in NAEP also indicate that students in the United States score 
lower with respect to the standards of proficiency for those 
grade levels each year that they are in school.
    With globalization, the good jobs will go to the people who 
can do them best. If those people are not in the United States, 
then those jobs will also not be in the United States. At 
present, the law allows 195,000 immigrants to enter the United 
States on H-1B visas each year in order to take jobs that 
cannot be filled by workers in the United States. As tele-
commuting increases, there will be no reason to bring those 
workers to the United States to take the jobs that the workers 
in the United States cannot fill, and the jobs themselves will 
move to countries that have the workers. We have seen 
manufacturing jobs move out of the country, and, unless 
theUnited States can supply the workers to fill the jobs from 
its own students, we will see it happen with information jobs. 
The Glenn Commission report, ``Before It's too Late,'' 
(September 2000) states that ``. . . the rapid pace of change 
in both the increasingly interdependent global economy and in 
the American workplace demands widespread mathematics- and 
science-related knowledge and abilities.''
    Not only are mathematics and science literacy essential in 
the workforce, but, according to the Glenn Commission, ``Our 
citizens need both mathematics and science for their everyday 
decision-making.'' The ability to evaluate data impartially and 
to make decisions based on that evaluation is needed by our 
citizens in every aspect of life. Citizens are called upon 
daily to evaluate advertisements, political claims, conflicting 
requests for public funds, and many other aspects of private 
and public decision making. Not only is the training that comes 
from looking at information in a scientific manner important, 
but also a knowledge of science and mathematics is essential at 
a time when much of the information evaluated becomes more 
technical. Without that knowledge, our citizens become unable 
to make the best daily decisions in their personal lives and in 
their roles as citizens.
    The Glenn Commission found that the ``most powerful 
instrument for change, and therefore the place to begin, lies 
at the very core of education--with teaching itself. ``The most 
consistent and powerful predictors of student achievement in 
mathematics and science are full teaching certification and a 
college major in the field being taught.'' Therefore, the 
Commission suggests that we ``establish an ongoing system to 
improve the quality of mathematics and science teaching in 
grades K-12'' and that we ``increase significantly the number 
of mathematics and science teachers and improve the quality of 
their preparation.''
    These sentiments are echoed by the National Research 
Council in its 2001 ``Educating Teachers of Science, 
Mathematics, and Technology'' report. The Council notes:

    If the nation is to make the continuous improvements needed 
in teaching, we need to make a science out of teacher 
education--using evidence and analysis to build an effective 
system of teacher preparation and professional development.

The Council found that teacher education must be a continuous 
process involving schools of education, school districts, 
practicing professionals, and higher education faculty in a 
collaborative partnership with shared responsibility for 
teacher education. Teachers must be treated as professionals 
with ongoing professional development to allow them to grow 
within their profession and to take on new responsibilities. 
The measure of the success of any teacher education program 
should be how well their students achieve.
    In an effort to begin to address the challenge of improving 
math and science learning and teaching, the BEST Act authorizes 
$500 million in fiscal year 2002 for the establishment of 
mathematics and science partnerships linking the math and 
science departments of institutions of higher education with 
States and local school districts. The partnership program is 
included as subpart 1 of part B.
    Partnerships may use funds to conduct 1 or more of the 
following activities: (1) developing more rigorous math and 
science curricula aligned to State and local standards and with 
the standards expected for postsecondary study in mathematics 
and science, respectively; (2) creating opportunities for 
enhanced and ongoing professional development in content areas; 
(3) recruiting math and science majors to teaching; (4) 
promoting strong teaching skills for math and science teachers 
and teacher educators; (5) establishing math and science summer 
workshops or institutes for teachers; (6) establishing distance 
learning programs for math and science teachers; (7) designing 
programs to prepare a teacher to provide professional 
development to other teachers and novice teachers; and (8) 
designing programs to bring teachers into contact with working 
scientists.
    The committee has included a definition of summer workshops 
or institutes to make clear that such workshops or institutes 
are to be substantial and sustained programs. Specifically, 
they must be conducted for a period of at least 2 weeks, 
provide for direct interaction between students and faculty, 
and include followup training during the academic year.
    The committee also encourages local educational agencies to 
create various financial incentives to help recruit individuals 
with strong mathematics or science backgrounds into the 
teaching field. Current rewards, incentives, and school 
environments are not adequate to attract large numbers of the 
best students to teaching or to encourage them to remain in the 
profession beyond the first few years of teaching. These 
problems are exacerbated in science and mathematics, where 
teacher shortages already exists in many parts of the United 
States and are expected to grow worse over the next decade. The 
lack of teachers with adequate content knowledge and 
pedagogical skills for teaching science and mathematics is 
especially acute in small rural and inner-city schools, where 
science or mathematics departments may consist of only 1 or 2 
individuals and a given teacher may be required to teach 
several different subject areas every day.
    The committee believes that several financial incentives 
could be used to help recruit and retain math and science 
teachers with strong math and science skills. Stipends could be 
provided to current mathematics teachers and science teachers 
for certification through alternative routes. A local 
educational agency could offer money for scholarships for 
teachers to pursue advanced course work in math or science. 
Additionally, the local educational agency could offer signing 
bonuses or performance bonuses to math and science teachers. 
The committee encourages local educational agencies to create 
programs that will be effective in recruiting individuals with 
strong mathematics or science backgrounds into the teaching 
field.
    Subpart 2 of part B provides for the continuation of the 
Eisenhower Clearinghouse for Mathematics and Science Education, 
authorizing $5 million in fiscal year 2002 for this purpose. 
The functions of the Clearinghouse are expanded to include the 
development of an Internet-basedsite offering a search 
mechanism and including electronic links to users and providers 
of instructional materials and programs.
    Subpart 3 of part B authorizes $150 million in fiscal year 
2002 to support programs preparing teachers to use technology 
effectively. Funds must be used to create programs that enable 
prospective teachers to use advanced technology to create 
learning environments where all students are prepared to meet 
challenging State standards.
    Subpart 4 of part B provides that the Secretary of 
Education must consult and coordinate activities under part B 
with the Director of the National Science Foundation. The 
committee believes that it is particularly important that the 
Secretary and the Director work together to determine the most 
appropriate and effective role each of their agencies can play 
with respect to summer workshops or institutes.

Part C--Technology education

    First authorized as part of the Elementary and Secondary 
Education Act in 1994, Federal educational technology programs 
have made a significant and positive difference in increasing 
access to technology in our public school classrooms. These 
Federal dollars have played a significant role in making 
technology more prevalent and effectively used in our Nation's 
classrooms.
    The BEST Act combines the competitively awarded Technology 
Challenge Grant program into a new formula-based grant program 
to the States modeled after the Technology Literacy Challenge 
program authorized under current law. Since the Challenge Grant 
program was first created, it has funded numerous cutting-edge 
model programs in schools. At this juncture, the committee 
believes it is important to provide the States with additional 
sources of dedicated funding so that many of these model 
programs can be replicated and so that a broad range of school 
districts across the country can benefit.
    While the committee was mindful of the extraordinary 
advances made in the area of educational technology, the 
members also recognized there is still a long way to go in 
making technology an effective educational tool for all 
students in the nation. The committee is committed to the 
concept of eliminating the Digital Divide in the Nation's 
schools. Therefore, it was the committee's intent to give 
priority to those local educational agencies which serve the 
highest number or percentage of children in poverty in both 
urban and rural parts of each State and to provide grants to 
local educational agencies of a sufficient size and duration to 
carry out the purposes of this part.
    The BEST Act reaffirms the Federal commitment to 
educational technology. Throughout the legislation, the 
committee has incorporated provisions related to educational 
technology in recognition of the ``next wave'' of educational 
technology: that is--effectively integrating it into the 
everyday learning activities of the student. The committee's 
actions acknowledge the importance of ``not separating 
technology from learning.'' It is the intent of the committee 
to encourage the integration of technology with learning by 
requiring that both the State and the local educational 
agencies submit a systemic educational technology plan that 
outlines how technology will improve student outcomes and how 
the activities funded in the BEST Act fit into that plan. With 
the same intent, the committee has also required that 
professional development in the integration of technology into 
the curriculum be a large part of the use of local funds. The 
BEST Act maintains a separate funding stream for educational 
technology programs in an effort to ensure that the Federal 
Government continues to provide leadership and support for 
strengthening and integrating educational technology in 
classrooms throughout the Nation.

Part D--Portability of teacher pensions and credentials

    Part D authorizes the establishment of a 9-member National 
Panel of Portability of Teacher Pensions and Credentials. 
Members are to be appointed by the Secretary from among 
practitioners and experts with experience relating to teacher 
pensions and credentials. The panel is to study options for 
increasing reciprocity of recognition of teacher credentials 
and portability of teacher pensions between States.

   TITLE III--MOVING LIMITED ENGLISH PROFICIENT STUDENTS TO ENGLISH 
                                FLUENCY

    Programs under part A of title III are designed to provide 
educational assistance to students with limited English 
proficiency to help them meet challenging State standards. The 
BEST Act repeals the authorization for Program Development and 
Implementation grants and weaves the purposes of the program 
into other initiatives funded under this title. The committee 
also decided to combine Comprehensive School grants and System-
wide Improvement grants into 1 program. Grants awarded under 
this initiative will be used for activities such as improving 
instructional programs, training school personnel, and 
implementing family education or parent outreach programs.
    One significant change the committee has included in the 
BEST Act pertains to grant priority. In awarding grants, the 
Secretary shall give priority to an applicant: (1) who 
experiences a dramatic increase in the number or percentage of 
limited English proficient students enrolled in the applicant's 
program and has limited or no experience in serving limited 
English proficient students; (2) that is a local educational 
agency that serves a school district with a total enrollment 
less than 10,000 students; (3) who demonstrates a proven record 
of success in helping limited English proficient students; (4) 
who proposes initiatives that provide for the development of 
bilingual proficiency both in English and another language for 
all participating students; or (5) who serves a school district 
in which a large percentage or number of limited English 
students is enrolled.
    The BEST Act retains the State grant program. The committee 
believes that it is important to increase the minimum funding 
level from $100,000 to $200,000. A funding level of$300 million 
is authorized for fiscal year 2002.
    The Foreign Language Assistance program included as part B 
of title III provides competitive grant assistance to State or 
local educational agencies to provide foreign language study 
for elementary and secondary school students. The BEST Act 
extends this program through fiscal year 2008 and adds 
provisions giving special consideration to grant applications 
which make effective use of technology, promote innovative 
activities, or are carried out through a consortium. A funding 
level of $35 million is authorized for fiscal year 2002.
    The Emergency Immigrant Education program included as part 
C of title III provides funds to local educational agencies 
that experience unexpectedly large increases in their student 
populations due to immigration to assist with the education of 
those students. A funding level of $200 million is authorized 
for fiscal year 2002.

          TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

Part A--State grants

    The committee has made substantial revisions to the Safe 
and Drug-Free Schools and Communities program in an effort to 
increase the accountability for the use of Federal funds and to 
ensure that effective, research-based programs are funded with 
Federal dollars. By better directing the use of Federal funds 
under this program, it is the committee's intent to improve 
efforts to provide all of our Nation's students a safe and 
nurturing learning environment. Recent tragedies in our 
Nation's schools have heightened attention to the devastating 
impact that an unsafe environment can have on learning. The 
committee believes strongly that every school in this Nation 
should be violence-free as well as drug- and alcohol-free and 
has strengthened the current program to better achieve those 
goals. The committee also believes that involving parents in 
violence and drug prevention programs is important.

Part B--Gun possession

    The Gun-Free Schools provisions currently contained in part 
F of title XIV are transferred to part B of title IV. These 
provisions, which were first enacted in 1994, require States 
receiving funds under the Elementary and Secondary Education 
Act to have laws requiring local educational agencies to expel 
from school for at least 1 year any student who brings a weapon 
to school.
    The Report of State Implementation of the Gun-Free Schools 
Act--School Year 1998-99 issued in October 2000 indicates that 
an estimated 3,523 students were expelled for bringing a 
firearm to school. Fifty-seven percent of the 1998-99 
expulsions involved high school students; 33 percent involved 
junior high students; and the remaining 10 percent involved 
elementary school students.

Part C--School safety and violence prevention

    Part C includes a number of new provisions dealing with: 
school safety and violence prevention activities; school 
uniforms; transfer of school disciplinary records; and employee 
background checks. These provisions are virtually identical to 
provisions dealing with these subjects which were approved by 
the Senate in 1999 as part of the Juvenile Justice 
reauthorization bill (S. 254).

Part D--Environmental tobacco smoke

    The bill transfers to part D of title IV the Elementary and 
Secondary Education Act the environmental tobacco smoke 
provisions currently contained in part C of title X of the 
Goals 2000: Educate America Act. These provisions prohibit 
smoking within any indoor facility used for the provision of 
education, routine health care, day care, library services, or 
early childhood development to children.

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

Part A--Public school choice

            Subpart 1--Public charter schools
    The BEST Act continues and maintains the Public Charter 
Schools program as provided in current law, authorizing a 
funding level of $190 million for fiscal year 2002. Last 
considered in 1998, the Charter Schools program was amended to 
increase and strengthen accountability, promote dissemination, 
and support technical assistance, evaluation and research on 
model charter school programs.
            Subpart 2--Magnet Schools Assistance Program
    The Magnet Schools Assistance Program (MSAP) provides 
competitive grants to local educational agencies for magnet 
schools that are intended to reduce, eliminate, or prevent 
minority group isolation in elementary and secondary schools 
and to strengthen students' knowledge of academic or vocational 
subjects. In order to be eligible for a grant, a local 
educational agency must be a participant in a court-ordered or 
voluntary desegregation plan. Magnet schools provide a special 
curriculum intended to be attractive to substantial numbers of 
students of different races.
    The BEST Act continues the Magnet Schools Assistance 
Program and includes several new elements designed to: improve 
the capacity of local educational agencies to continue 
operating magnet schools after the grant has ended; increase 
the allowable use of funds for planning; clarify the critical 
role of professional development; and enhance the quality of 
the program. The fiscal year 2002 authorization level is $125 
million.
    The current law lists 4 uses of funds: (1) planning; (2) 
acquisition of books and materials;(3) payment or subsidization 
of the compensation of teachers and instructional staff who are 
necessary for the conduct of the program; and (4) for schools 
whose magnet program does not include all students enrolled in 
the school. The BEST Act adds 3 new uses of funds to those in 
current law. Grant funds may be used: (1) for professional 
development in order to build the capacity to operate the 
magnet school once Federal assistance has terminated; (2) to 
enable the local educational agency to have more flexibility in 
the administration of a magnet school program in order to serve 
students attending a school who are not enrolled in a magnet 
school program; and (3) to enable the local educational agency 
to have flexibility in designing magnet schools for students of 
all grades.
    The addition of professional development as a use of funds 
is particularly important. Clarification is needed in the law 
regarding professional development as a separate activity from 
planning. Therefore, it is the committee's intent that 
professional development be considered a core use of funds, and 
not as planning. Trained, qualified teachers and staff are 
critical to the success of magnet school as well as any other 
school and these changes ensure that the magnet schools law 
reflects these priorities.
            Subpart 3--Public school choice
    The Public School Choice provisions of the BEST Act 
allocates funds to States, which--in turn--distribute them to 
local educational agencies to carry out school improvement 
activities. Each local educational agency receiving funds under 
this subpart or under part A of title I, with the exception of 
local educational agencies located in a States which receives a 
minimum grant, must provide all students enrolled in a school 
identified for school improvement with the option to transfer 
to another public school within the agency that has not been 
identified for school improvement. An exception is provided in 
cases where the option to transfer is prohibited by State or 
local law. If a local educational agency can demonstrate to the 
State educational agency that it lacks the capacity to provide 
all students with the option to transfer, the agency must 
permit as many students as possible--selected on an equitable 
basis--to transfer. A funding level of $225 million is 
authorized for fiscal year 2002.

Part B--Flexibility

                                Overview

    Part B of title V includes a broad array of flexibility 
options for States and localities. A variety of current law 
provisions dealing with waivers, program coordination, 
consolidated applications, and related authorities are 
incorporated into title V, permitting State and local officials 
to find in one place the options available to them. New rural 
flexibility provisions offer opportunities to combine Federal 
education funds in ways which will make the most effective use 
of these funds in meeting the individual needs of small, rural 
schools and their students. In addition, part B includes the 
Innovative Education Program Strategies program, authorized 
under current law as title VI. This program offers the funds 
and the discretion to local school districts which permit them 
to address their most pressing local needs.
            Subpart 1--Education flexibility partnerships
    Subpart 1 includes the provisions of the Education 
Flexibility Partnership Act, which was signed into law in 1999 
(Public Law 106-25) as a free-standing bill. This act allows 
State educational agencies to waive certain Federal 
requirements, along with related State requirements, for the 
purpose of raising the achievement of all students.
            Subpart 2--Rural education initiative
    The purpose of subpart 2 is to provide adequate funding to 
rural school districts to enhance their ability to recruit and 
retain teachers, strengthen the quality of instruction, and 
improve student achievement. Through flexibility provisions and 
a supplemental grant program, rural school districts will have 
the ability to maximize their resources for implementation of 
education reform strategies.
    The programs authorized in subpart 2 are designed to 
address two unique problems facing small, rural districts. The 
Elementary and Secondary Education Act authorizes formula and 
competitive grants that allow many of our local school 
districts to improve the education of their students. These 
Federal grants support efforts to promote such laudable goals 
as the professional development of teachers, the incorporation 
of technology into the classroom, and making sure our schools 
provide safe learning environments for our children. Schools 
receive several categorical grants supporting these programs, 
each with its own authorized activities and regulations and 
each with its own red tape and paperwork.
    Unfortunately, as valuable as these programs may be for 
thousands of predominantly urban and suburban school districts, 
they simply do not work well in rural areas. This is because 
the grants are based on school district enrollment. These 
individual grants confront smaller schools with a dilemma; 
namely, they simply may not receive enough funding from any 
single grant to carry out meaningful activities.
    Chapter 1, the Small, Rural School Achievement Program, 
will allow a district with an enrollment of fewer than 600 
students to combine the funds from programs authorized under 
titles II and IV and subpart 4 of part B of title V and use the 
funds to support projects that bring about improved academic 
achievement. If student performance on assessments does not 
improve at the end of 3 years of participation in the program, 
the district may no longer participate.
    Small rural schools face equally difficult challenges when 
attempting to compete for competitive grants. These schools 
must dedicate all of their resources to the primary task of 
educating students. They lack the personnel and resources to 
prepare successful applications.
    To address this issue, participating local educational 
agencies are eligible to receive a supplemental grant that, 
when combined with other Federal dollars, will enable these 
small rural schools to offer programs and activities of 
sufficient size, scope, and quality to have a significant 
impact upon student and school performance.
    Chapter 2, the Low-Income and Rural School Program, is 
designed to meet the needs of rural school districts serving 
large numbers of disadvantaged students. Local educational 
agencies residing in rural communities are eligible to receive 
funds from this program if 20 percent of the children they 
serve are from families living below the poverty level. A local 
educational agency will not be permitted to continue to 
participate in the program if student performance has not 
increased after 3 years.
    A funding level of $300 million is authorized to support 
these programs during fiscal year 2002, of which $125 million 
is to be made first available to carry out chapter 1.
            Subpart 3--Waivers
    Subpart 3 includes the waiver provisions currently included 
as part D of title XIV. These provisions offer broad authority 
for the waiver of statutory or regulatory requirements of the 
act in order to increase the quality of instruction or improve 
academic performance.
            Subpart 4--Innovative Education Program Strategies
    The purpose of the Innovative Education Program Strategies 
program is to provide funds to local educational programs for 
the implementation of initiatives that support school 
improvement and reform efforts with the goal of advancing 
student performance. To accomplish this purpose, States 
allocate funds to local school districts for an array of 
activities such as professional development, technology, and 
library services.
    This program was created 20 years ago in response to the 
calls from State and local educational agencies that they be 
given the flexibility to respond to the education reform needs 
of their local communities. It remains the most flexible source 
of education funds provided by the Federal government. The 
Title VI Effectiveness Evaluation for 1998 prepared by the 
Title VI National Steering Committee included the following 
observation from an Arkansas school district official:

    Title VI is the only Federal program where schools can 
actually use money that isn't previously directed to a need 
identified by those outside the school. As our needs change, 
the program has the flexibility to change with us. The funds 
are most beneficial when they are used with other funding 
sources to work toward improving targeted areas identified by 
the district.

    The funding level authorized for the Innovative Education 
Program Strategies program is $850 million for fiscal year 
2002.

Part C--General flexibility authorities

    Part C includes the ``Flexibility in the Use of 
Administrative and Other Funds'' currently included as part B 
of title XIV. These provisions permit States and localities to 
consolidate administrative funds from several Federal programs.

Part D--Coordination of programs; consolidated State and local plans 
        and applications

    Part D includes the ``Coordination of Programs; 
Consolidated State and Local Plans and Applications'' 
provisions currently included as part C of title XIV. These 
provisions permit the submission of a single plan for several 
different programs at both the State and local levels.

Part E--Advanced Placement Program

    The Advanced Placement Program was initially authorized as 
part of the Higher Education Amendments of 1998. The BEST Act 
adds the program to the Elementary and Secondary Education Act 
and expands its purposes. The committee recognizes that having 
rigorous academic programs available to students provides those 
young people with better preparation for postsecondary study 
and has adopted this program to ensure that the opportunity is 
available to more students. A funding level of $50 million is 
authorized for fiscal year 2002.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

Part A--Parental assistance

    The Parental Information and Resource Centers, established 
under the Goals 2000: Educate America Act, has been 
incorporated into the BEST Act. The committee bill strengthens 
provisions that focus on partnerships among parents, teachers, 
principals, administrators, and other school personnel. A 
funding level of $50 million is authorized for fiscal year 
2002.

Part B--Improving academic achievement

    Part B is intended to support the accountability provisions 
of the act by providing financial assistance to States for the 
development and implementation of assessments and for State 
participation in the National Assessment of Educational 
Progress (NAEP). In addition, it provides for one-time bonus 
payments to States that develop the new assessments required by 
the BEST Act in advance of the deadlines included in the bill.
    Further support for strong accountability is provided 
through a system of awards and sanctions tied to student 
achievement levels.
    Both States and schools are eligible for awards. 
``Achievement in Education Awards'' will be granted to States 
that make the most progress in improving educational 
achievement. The Secretary is to give greatest weight to a 
State's success in improving the performance of economically 
disadvantaged and minority students, as measured by State 
assessments and by the State NAEP. Other measures to be taken 
into account include the achievement of all students, improved 
English proficiency of limited English proficient students, 
increased high schoolgraduation percentages, and increased 
percentage of students taking advanced coursework.
    ``No Child Left Behind Awards'' will be granted to schools 
that have made greatest progress in improving the educational 
achievement of economically disadvantaged students.
    Penalties will be assessed on States that--based on State 
assessment and State NAEP results--fail to make adequate yearly 
progress and whose economically disadvantaged and minority 
students fail to make statistically significant progress in the 
academic subjects for which the State has developed content and 
student performance standards. After 2 years of insufficient 
progress, the Secretary is required to reduce up to 30 percent 
of the State's administrative funds. After 3 such years, the 
Secretary is required to reduce up to 75 percent of the State's 
administrative funds.
    Funding levels in part B include: $400 million for fiscal 
year 2002 to develop and implement the required assessments, 
$110 million for fiscal year 2002 to administer State 
assessments under NAEP, and $50 million for fiscal year 2002 
for the Fund to Improve Education Achievement. This Fund will 
be used for awards and bonuses, as well as for improvement 
activities, such as character education, that are designed to 
promote the improvement of elementary and secondary education.

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

Part A--Indian education

    Part A modifies and improves educational services provided 
for American Indian and Alaska Native students. The committee 
has included four new activities that can be provided under 
grants to local educational agencies. These additions are 
intended to encourage local educational agencies to address the 
needs of American Indians and Alaskan Native students in the 
areas of curriculum development, creating and implementing 
standards, improving student achievement, and gifted and 
talented education. The committee also recognizes that 
increasing the flexibility at the local level may give local 
educational agencies the ability to reduce their administrative 
costs while improving the services they provide. Accordingly, 
the committee included a new provision which would allow a 
local educational agency which receives formula grants under 
part A the ability 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. In addition, the 
committee has provided increased flexibility in counting 
eligible children for funding purposes to BIA-funded schools.
    In recognition of the importance of family literacy 
services for affected populations, the committee has allowed 
for grants for this purpose under the improvement of 
educational opportunities for Indian children. The committee 
has also underscored the importance of both pre-service and in-
service training by separating the 2 into different sections 
under professional development. Finally, the percentage of 
funds that can be used on administrative costs is reduced.

Part B--Native Hawaiian education

    Part--modifies and improves the educational services 
provided for Native Hawaiian students. The findings section is 
updated with the most recent data available and includes 
additional findings that reflect the new legal position of the 
United States relative to the status of Native Hawaiians as set 
forth in the brief filed by the United States in the United 
States Supreme Court on July 28, 1999. The committee has 
maintained the Native Hawaiian Education Council, while 
reducing its size and composition. The committee has also 
established priorities for the award of contract or grants 
Recognizing that it has been difficult to have 1 Council 
serving 2 or more islands, the committee has added 2 more 
Island Councils so that each island will have its own Council.
    The committee believes that placing all of the existing 
programs serving Native Hawaiians into a single, more flexible 
authority will allow all of the types of activities currently 
carried out to continue. It is the committee's hope that this 
consolidation will better serve the educational needs of Native 
Hawaiians children and adults. The committee has focused on the 
importance of family literacy services in affected populations 
once again by adding it as a new permissible activity, and the 
percentage of funds that can be used on administrative costs is 
reduced.

Part C--Alaskan Native education

    Part C modifies and improves the educational services 
provided for Alaska Native students. The committee has placed 
all of the existing programs serving Alaskan Natives into a 
single, more flexible authority. These programs include: Alaska 
Native Educational Planning, Curriculum Development, Teacher 
Training, and Recruitment; Home-Based Education for Preschool 
Children; and Student Enrichment. The committee believes that 
the consolidation will allow these activities to continue and 
will better serve the educational needs of Alaskan Native 
children and adults. The committee has added family literacy 
services as a new permissible activity and reduced the 
percentage of funds that can be used on administrative costs.

                         TITLE VIII--IMPACT AID

    Impact aid programs were reauthorized in 2000 as part of 
the Floyd D. Spence National Defense Authorization Act for 
fiscal year 2001 (Public Law 106-398), but remain a part of the 
Elementary and Secondary Education Act. The BEST Act retains 
impact aid programs in title VIII, but makes no changes to 
these programs.

                   TITLE IX--MISCELLANEOUS PROVISIONS

    Title IX includes provisions for an independent evaluation 
by the National Academy of Sciences of the impact and effects 
of high stakes assessments used by State and local educational 
agencies. The evaluation is to address 3 components: (1) 
Students, Teachers, Parents, Families, Schools, and School 
Districts; (2) Students With Disabilities; and (3) Low Socio-
Economic Students, Limited English Proficient Students, and 
Minority Students. A funding level of $4 million is authorized 
for the evaluation.

                                REPEALS

    The BEST Act repeals titles IX through XIV of the 
Elementary and Secondary Education Act of 1965. The Goals 2000: 
Education America Act is also repealed.

                     V. Regulatory Impact Statement

    The committee has determined there will be increased 
demands upon States, local educational agencies, and other 
recipients of ESEA funds due to the expanded accountability 
features of the BEST Act.
    The BEST Act requires the development of State content and 
student performance standards in history and science. Science 
assessments must also be developed by the 2007-08 school year. 
In addition, the BEST Act requires that all public school 
students in grades 3 through 8 be tested annually in 
mathematics and reading. These new provisions expand current 
title I assessment requirements, not only by increasing the 
frequency of math and reading assessments but also by expanding 
the pool of students to be tested. Current title I requirements 
apply only to students attending schools which receive title I 
funds. States will also be required to participate in annual 
State assessments under the National Assessment of Educational 
Progress (NAEP) in 4th and 8th grade mathematics and reading. 
Participation in these assessments is currently optional. 
States and local educational agencies will also be required to 
issue annual report cards including assessment information, as 
well as other data related to student performance.
    Recipients of funds under other ESEA programs, such as 
teacher quality and technology education, will now be required 
to submit performance objections as part of their applications 
for funds. A failure to meet these objectives will result in 
loss of grant funds.
    In general, recipients of ESEA funds will be expected to 
use those funds on programs which have proven to be effective 
in improving student achievement and performance and in meeting 
other program objectives.
    The committee believes that it is appropriate to demand 
results and accountability in exchange for the approximately 
$18 billion expended annually by the Federal Government for 
programs authorized under the Elementary and Secondary 
Education Act. Recognizing the additional expense which some of 
these new requirements will entail, the committee has provided 
that the Federal Government will assume the costs of 
development of the new assessments required for students in 
grades 3-8 (as well as half of ongoing costs) and of State 
participation in NAEP.
    Finally, the BEST Act substantially reduces the number of 
separate programs authorized under ESEA. These programs, as 
well as the nearly $2 billion provided for them in fiscal year 
2001, have been consolidated into broader authorities. This 
program consolidation is expected to reduce the administrative 
time and expense involved in developing, processing, and 
awarding separate grants. The BEST Act also provides the 
opportunity for small, rural school districts to combine funds 
from several separate formula grant programs and apply these 
funds toward local initiatives designed to improve student 
achievement.

            VI. Application of Law to the Legislative Branch

    The BEST Act reauthorizes and amends the Elementary and 
Secondary Education Act of 1965 to continue programs primarily 
offering assistance to States and local educational agencies on 
behalf of teachers and elementary and secondary school students 
and, as such, has no application to the legislative branch.

           VII. Cost Estimate and Unfunded Mandates Statement

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 28, 2001.
Hon. James M. Jeffords,
Chairman, Committee on Health, Education, Labor, and Pensions, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the Better Education 
for Students and Teachers Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Donna Wong 
(for federal costs), Susan Sieg Tompkins (for the state and 
local impact), and Nabeel Alsalam (for the private-sector 
impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               congressional budget office cost estimate

Better Education for Students and Teachers Act--As ordered reported by 
        the Senate Committee on Health, Education, Labor, and Pensions 
        on March 8, 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). The Better Education for Students and 
Teachers Act would reauthorize these programs through 2008. It 
would also reauthorize parts of the Stuart B. McKinney Act, and 
activities under ESEA that were authorized under Parts III and 
IV of the Goals 2000: Educate America Act (Goals 2000).
    CBO estimates that authorizations under the bill relative 
to current law would total approximately $28 billion in 2002 
and about $205 billion over the 2002-2008 period, assuming that 
annual levels are adjusted to keep pace with inflation when 
specific annual authorizations are not provided. (Without such 
inflation adjustments, the annual authorization total would be 
about $28 billion for each year, for a total of $194 billion 
over the 2002-2008 period.) CBO estimates that appropriations 
of the authorized levels would result in additional outlays of 
$167 billion over the 2002-2008 period, relative to estimated 
spending under the current law, if inflation adjustments are 
included (and about $160 billion without inflation 
adjustments).
    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 
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. The bill contains 
no private-sector mandates as defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of the bill is shown in Table 1. The costs of 
this legislation fall within the budget function 500 
(education, training, employment, and social services).

           TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF THE BETTER EDUCATION FOR STUDENTS AND TEACHERS ACT
----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars.--
                                 -------------------------------------------------------------------------------
                                    2001      2002      2003      2004      2005      2006      2007      2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

                                         With Adjustments For Inflation

Spending Under Current Law:
    Budget Authority/               16,767     8,718  ........  ........  ........  ........  ........  ........
     Authorization Level \1\....
    Estimated Outlays...........    13,910    14,709     4,650       744        20  ........  ........  ........
Total Proposed Changes:
    Estimated Authorization       ........    27,715    28,267    28,795    29,323    29,887    30,452    31,016
     Level......................
    Estimated Outlays...........  ........     1,506    20,886    26,951    28,643    29,172    29,727    30,290
Spending Under the Bill:
    Estimated Authorization         16,767    36,454    28,267    28,795    29,323    29,887    30,452    31,016
     Level......................
    Estimated Outlays...........    13,910    16,215    25,536    27,694    28,663    29,172    29,727    30,290

                                        Without Adjustments For Inflation

Spending Under Current Law:
    Budget Authority/               16,767     8,718  ........  ........  ........  ........  ........  ........
     Authorization Level \1\....
    Estimated Outlays...........    13,910    14,709     4,650       744        20  ........  ........  ........
Total Proposed Changes:
    Estimated Authorization       ........    27,735    27,729    27,719    27,709    27,709    27,709    27,709
     Level......................
    Estimated Outlays...........  ........     1,506    20,856    26,517    27,695    27,685    27,683    27,683
Spending Under the Bill:
    Estimated Authorization         16,767    36,454    27,729    27,719    27,709    27,709    27,709    27,709
     Level......................
    Estimated Outlays...........    13,910    16,215    25,506    27,260    27,715    27,685    27,683    27,683
----------------------------------------------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for that year.
Note: Components may not sum to totals because of rounding.

    Basis of Estimate: The bill would reauthorize funding 
through 2008 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 
2008. CBO estimates that the bill would increase authorized 
levels by $27.7 billion in 2002 and by $205.5 billion over the 
2002-2008 period assuming that ``such sums'' amounts provided 
after 2002 are adjusted for inflation. If the authorized 
amounts are appropriated, the bill would increase outlays 
relative to current law by $1.5 billion the first year and by 
$167.2 billion over the seven-year period. (Without 
inflationary adjustments, the increased authorizations would 
result in outlays of $159.6 billion over the seven years.)
    Table 2 presents CBO's estimates for the various components 
of each title under the bill. CBO's estimate of authorized 
levels is generally the authorized amount for 2002 with those 
amounts inflated in later years. (The authorization for some 
programs are specified after 2002.) For most existing programs 
that the bill 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.
    Becuase most education programs operate on a forward-funded 
basis, spending in the first year is consistently slow across 
all programs, with variation in spending patterns in the 
subsequent years. Historically, spending occurs even more 
slowly when the programs are new, experience significant 
funding increases, or institute matching requirements or other 
restrictions.

           title i--better results for disadvantaged children

    Title I of the bill would reauthorize and revise programs 
currently authorized under parts A, B, C, and E of Title I of 
ESEA. It also would introduce new programs for student 
assessments and reading initiatives. The bill would authorize a 
total of $19 billion for 2002 for all programs under title I. 
CBO estimates the total funding for title I for the 2002-2008 
period would be $140.8 billion, assuming adjustments for 
inflation, with resulting outlays of $115.9 billion over those 
seven years.
    Part A--Better Results for Disadvantaged Children. The bill 
would reauthorize the Basic, Concentration, and Targeted Grant 
Programs under Part of Title I, phase out the capital expensive 
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.

TABLE 2.--DETAILED EFFECTS OF THE BETTER EDUCATION FOR STUDENTS AND TEACHERS ACT, WITH ADJUSTMENTS FOR INFLATION
----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars--
                                 -------------------------------------------------------------------------------
                                    2001      2002      2003      2004      2005      2006      2007      2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority/               16,767     8,718         0         0         0         0         0         0
     Authorization level \1\....
    Estimated Outlays...........    13,910    14,709     4,650       744        20         0         0         0
Proposed Changes:

                               Title I--Better Results for Disadvantaged Children

Basic Grants to Local Education
 Agencies (LEAs):
    Estimated Authorization              0    15,000    15,294    15,587    15,881    16,189    16,497    16,805
     Level......................
    Estimated Outlays...........         0       750    12,015    14,950    15,537    15,831    16,137    16,445
Targeted Grants to LEAs:
    Estimated Authorization              0       200       204       208       212       216       220       224
     Level......................
    Estimated Outlays...........         0        10       160       199       207       211       215       219
Even Start:
    Estimated Authorization              0       250       255       260       265       270       275       280
     Level......................
    Estimated Outlays...........         0         8       183       229       258       263       268       273
Reading First:
    Estimated Authorization              0       900       918       935       953       971       990     1,008
     Level......................
    Estimated Outlays...........         0        27       658       823       929       947       965       984
Early Reading First:
    Estimated Authorization              0        75        76        78        79        81        82        84
     Level......................
    Estimated Outlays...........         0         2        55        69        77        79        80        82
Education of Migratory Children:
    Estimated Authorization              0       400       408       416       423       432       440       448
     Level......................
    Estimated Outlays...........         0        20       320       399       414       422       430       439
Neglected, Delinquent, or At-
 Risk Youth:
    Estimated Authorization              0        50        51        52        53        54        55        56
     Level......................
    Estimated Outlays...........         0         3        40        50        52        53        54        55
Capital Expense Account:
    Estimated Authorization              0        15        15         5         0         0         0         0
     Level......................
    Estimated Outlays...........         0         1        12        14         7         1         0         0
National Assessment and
 Demonstrations of Innovative
 Practices:
    Estimated Authorization              0        35        36        36        37        38        38        49
     Level......................
    Estimated Outlays...........         0         2        28        35        36        37        38        38
21st Century Community Learners:
    Estimated Authorization              0     1,500     1,529     1,559     1,588     1,619     1,650     1,681
     Level......................
    Estimated Outlays...........         0       180     1,204     1,497     1,556     1,585     1,616     1,647
Comprehensive School Reform:
    Estimated Authorization              0       250       255       260       265       270       275       280
     Level......................
    Estimated Outlays...........         0        13       200       249       259       264       269       274
Dropout Prevention:
    Estimated Authorization              0       250       255       260       265       270       275       280
     Level......................
    Estimated Outlays...........         0        13       200       249       259       264       269       274
Education for Homeless Children:
    Estimated Authorization              0        70        71        73        74        76        77        78
     Level......................
    Estimated Outlays...........         0         4        49        68        72        74        75        77
      Subtotal, Title I:........
          Estimated                      0    18,995    19,366    19,728    20,094    20,484    20,874    21,264
           Authorization Level..
          Estimated Outlays.....         0     1,030    15,123    18,830    19,664    20,031    20,416    20,806

                                               Title II--Teachers

Grants to States, Local
 Educational Agencies, and
 Eligible Partnerships:
    Estimated Authorization              0     3,000     3,059     3,117     3,176     3,238     3,299     3,361
     Level......................
    Estimated Outlays...........         0       150     2,103     2,894     3,100     3,159     3,219     3,281
National Programs:
    Estimated Authorization              0       100       102       104       106       108       110       112
     Level......................
    Estimated Outlays...........         0         5        70        96       103       105       107       109
National Teacher Recruitment
 Campaign:
    Estimated Authorization              0         3         3         3         3         3         3         3
     Level......................
    Estimated Outlays...........         0         3         3         3         3         3         3         3
Math and Science Partnerships:
    Estimated Authorization              0       500       510       520       529       540       550       560
     Level......................
    Estimated Outlays...........         0        15        40       176       505       514       524       534
Eisenhower Clearinghouse:
    Estimated Authorization              0         5         5         5         5         5         5         6
     Level......................
    Estimated Outlays...........         0       (2)         3         5         5         5         5         6
Preparing Tomorrow's Teachers to
 Use Technology:
    Estimated Authorization              0       150       153       156       159       162       165       168
     Level......................
    Estimated Outlays...........         0         8       105       145       155       158       161       164
State and Local Programs for
 Technology Use in Classrooms:
    Estimated Authorization              0     1,000     1,020     1,039     1,059     1,079     1,100     1,120
     Level......................
    Estimated Outlays...........         0       100       652       965     1,033     1,053     1,073     1,094
National Panel on Portability of
 Teacher Pensions:
          Estimated                      0         2         0         0         0         0         0         0
           Authorization Level..
          Estimated Outlays.....         0         1         1         0         0         0         0         0
      Subtotal, Title III:......
    Estimated Authorization              0     4,760     4,851     4,944     5,037     5,135     5,233     5,330
     Level......................
    Estimated Outlays...........         0       281     2,978     4,284     4,904     4,997     5,093     5,191

                    Title III--Moving Limited English Proficient Students to English Fluency

Bilingual Program:
    Estimated Authorization              0       300       306       312       318       324       330       336
     Level......................
    Estimated Outlays...........         0        15       210       289       295       301       306       312
Foreign Language Assistance:
    Estimated Authorization              0        35        36        36        37        38        38        39
     Level......................
    Estimated Outlays...........         0         2        25        34        34        35        36        36
Immigrant Education:
    Estimated Authorization              0       200       204       208       212       216       220       224
     Level......................
    Estimated Outlays...........         0        10       140       193       197       200       204       208
      Subtotal, Title III:......
          Estimated                      0       535       545       556       566       577       588       590
           Authorization Level..
          Estimated Outlays.....         0        27       375       516       526       536       546       557

                              Title IV--Safe and Drug-Free Schools and Communities

State Grants:
    Estimated Authorization              0       700       714       727       741       755       770       784
     Level......................
    Estimated Outlays...........         0        35       491       675       723       737       751       766
National Programs:
    Estimated Authorization              0       150       153       156       159       162       165       168
     Level......................
    Estimated Outlays...........         0         8       105       145       155       158       161       164
National Coordinator Initiative:
    Estimated Authorization              0        75        76        78        79        81        82        84
     Level......................
    Estimated Outlays...........         0         4        53        72        77        79        80        82
Grants to Combat the Impact of
 Domestic Violence on Children:
    Estimated Authorization              0         5         5         5         0         0         0         0
     Level......................
    Estimated Outlays...........         0       (2)         4         5         5         2         0         0
      Subtotal, Title IV:.......
          Estimated                      0       930       948       966       979       998     1,017     1,036
           Authorization Level..
          Estimated Outlays.....         0        47       652       897       961       975       993     1,012

                                  Title V--Public School Choice and Flexibility

Charter Schools:
    Estimated Authorization              0       190       194       197       201       205       209       213
     Level......................
    Estimated Outlays...........         0        10       133       183       196       200       204       208
Magnet Schools:
    Estimated Authorization              0       125       127       130       132       135       137       140
     Level......................
    Estimated Outlays...........         0         6        88       121       129       132       134       137
Public School Choice:
    Estimated Authorization              0       225       225       225       225       225       225       225
     Level......................
    Estimated Outlays...........         0        11       158       214       225       225       225       225
Rural Education:
    Estimated Authorization              0       300       306       312       318       324       330       336
     Level......................
    Estimated Outlays...........         0        15       210       289       310       316       322       328
Innovative Education Programs:
    Estimated Authorization              0       850       867       883       900       917       935       952
     Level......................
    Estimated Outlays...........         0        43       596       820       878       895       912       930
Advanced Placement:
    Estimated Authorization              0        50        51        52        53        54        55        56
     Level......................
    Estimated Outlays...........         0         3        35        48        52        53        54        55
      Subtotal, Title V:........
          Estimated                      0     1,740     1,770     1,799     1,829     1,860     1,891     1,922
           Authorization Level..
          Estimated Outlays.....         0        87     1,219     1,675     1,790     1,820     1,851     1,882

                                Title VI--Parental Involvement and Accountability

Parental Involvement:
    Estimated Authorization              0        50        51        52        53        54        55        56
     Level......................
    Estimated Outlays...........         0         5        33        48        52        53        54        55
State Assessment Plans:
    Estimated Authorization              0       400       408       416       423       432       440       448
     Level......................
    Estimated Outlays...........         0        12       272       386       413       421       429       437
National Assessment of Education
 Progress:
    Estimated Authorization              0       110       112       114       116       119       121       123
     Level......................
    Estimated Outlays...........         0         3        75       106       114       116       118       120
Improving Academic Achievement:
    Estimated Authorization              0        50        51        52        53        54        55        56
     Level......................
    Estimated Outlays...........         0         5        33        48        52        53        54        55
      Subtotal, Title VI:.......
          Estimated                      0       610       622       634       646       658       671       683
           Authorization Level..
          Estimated Outlays.....         0        25       412       588       630       642       654       667

                        Title VII--Indians, Native Hawaiians, and Alaska Native Education

Grants Administration and
 Planning:
    Estimated Authorization              0         3         3         3         3         3         3         3
     Level......................
    Estimated Outlays...........         0       (2)         2         3         3         3         3         3
Indian Education:
    Estimated Authorization              0        93        95        97        98       100       102       104
     Level......................
    Estimated Outlays...........         0         5        74        93        96        98       100       102
Special Programs and National
 Activities:
    Estimated Authorization              0        20        20        21        21        22        22        22
     Level......................
    Estimated Outlays...........         0         1        16        20        21        21        22        22
Native Hawaiian Council:
    Estimated Authorization              0       (2)       (2)       (2)       (2)       (2)       (2)       (2)
     Level......................
    Estimated Outlays...........         0       (2)       (2)       (2)       (2)       (2)       (2)       (2)
Education for Native Hawaiians:
    Estimated Authorization              0        28        29        29        30        30        31        31
     Level......................
    Estimated Outlays...........         0         1        20        27        29        29        30        31
Alaska Native Education Equity:
    Estimated Authorization              0        17        17        18        18        18        19        19
     Level......................
    Estimated Outlays...........         0         1        12        16        18        18        18        19
      Subtotal, Title VII:......
          Estimated                      0       161       164       167       171       174       177       180
           Authorization Level..
          Estimated Outlays.....         0         8       125       159       167       170       173       176

                                       Title IX--Miscellaneous Provisions

Evaluation of Assessments:
    Estimated Authorization              0         4         0         0         0         0         0         0
     Level......................
    Estimated Outlays...........         0         1         1         1         1         0         0         0
Total Proposed Changes:
    Estimated Authorization              0    27,735    28,267    28,795    29,323    29,887    30,452    31,016
     Level......................
    Estimated Outlays...........         0     1,506    20,886    26,951    28,643    29,172    29,727    30,290
Total Spending Under the Bill:
    Estimated Authorization         16,767    36,454    28,267    28,795    29,323    29,887    30,452    31,016
     Level......................
    Estimated Outlays...........    13,910    16,215    25,536    27,694    28,663    29,172    29,727    30,290
----------------------------------------------------------------------------------------------------------------
1 The 2001 level is the amount appropriated for that year.
2 Less than $500,000.

Note: Components may not sum to totals because of rounding.

    The bill would authorize $15 billion for 2002 for the basic 
and concentrations grants under Part A. The comparable funding 
for the 2001-2002 academic year is $8.6 billion. The bill also 
would authorize $200 million in 2002 for targeted grants. 
Although authorized, this program has not been funded in the 
past.
    The bill 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 
administered in neutral settings. In response to the 1997 
Supreme Court ruling that overturned this requirement, the bill 
would phase out funding over three years, authorizing $15 
million for 2002, $15 million for 2003, and $5 million for 
2004. The funding level for 2001 is $6 million.
    The bill would amend Part A of Title I to include more 
specific standards and assessment requirements for state plans. 
The bill would require states to include performance indicators 
in their plans as well as sanctions and rewards for local 
educational agencies (LEAs). State progress would be measured 
by each state according to its state plan. The bill also would 
require that states produce annual report cards beginning in 
academic year 2002-2003. The report cards would provide 
information on student achievement performance at each 
proficiency level on the state assessments. The bill 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 authorize $35 million for 2002 for 
federal evaluations and demonstrations. Funding for these 
activities is $9 million in 2001.
    Part B--Literacy for Children and Families. The bill would 
reauthorize funding for the Even Start Literacy program, 
currently Part B in Title I of ESEA, and create two new reading 
programs--the Reading First program and the Early Reading First 
program.
    The bill would authorize $250 million for the Even Start 
program, the same amount that was appropriated for 2001.
    The bill 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.
    The bill 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. The bill would 
authorize $75 million for the Early Reading First program.
    Part C--Education of Migratory Children. The bill would 
authorize $400 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--Initiatives for Neglected, Delinquent, or At-Risk 
Youth. The bill 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--21st Century Community Learning Centers; 
Comprehensive School Reform; School Dropout Prevention. The 
bill would authorize $1.5 billion in 2002 to continue the 21st 
Century Community Learners program currently authorized under 
Part I of Title X of ESEA. The program's funding for 2001 is 
$846 million.
    The bill would authorize $250 million for 2002 to continue 
the Comprehensive School Reform Grant Program. The program 
received $210 million in 2001.
    The bill would also introduce a new National School Dropout 
Prevention Program. A program to address school dropouts is 
currently authorized under Part C of Title V, but has never 
been funded. Schools would be allowed to use funds for start-up 
and implementation costs of dropout prevention programs. The 
bill would authorize $250 million to fund grants to states. 
States would award grants to schools with the highest dropout 
rates in the state. If funding is less than $250 millions, 
grants would be awarded to states on a competitive basis. If 
funding is equal to more that $250 million, grants would be 
distributed to states using a formula. CBO assumes a spending 
rate consistent with spending for other competitive grant 
programs.
    Part F--Education for Homeless Children and Youth. The bill 
would amend and reauthorize Subtitle B of Title VII of the 
Steward D. McKinney Homeless Assistance Act, authorizing $70 
million for education for homeless children and youth in 2002. 
The appropriation for 2001 was $35 million.

                           Title II--Teachers

    Title II would authorize a total of $4.8 billion for 2002 
for several initiatives that address teacher hiring, 
recruitment, and professional development. CBO estimates that 
implementing this title would cost $27.7 billion over the 2002-
2008 period.
    Teacher Quality. The bill would authorize a total of $3 
billion for a block grant to 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 bill also would authorize $100 million to fund national 
programs and activities such as nonprofit agencies or 
institutions of higher education providing mentors or 
professional development for teachers. In 2001, $41 million was 
appropriated for these activities.
    The bill also would authorize $3 million for each year over 
the 2002-2008 period for a National Teacher Recruitment 
Campaign. The program would award a grant to a coalition of 
teacher and media organizations to conduct a public service 
campaign concerning the resources for and routes to entering 
the field of teaching. For each year, CBO estimates that almost 
all funds would be spent in the year that they are 
appropriated.
    Mathematics and Science Partnerships. The bill would 
authorize total funding of $505 million in 2002 for the Math 
and Science Partnerships program and the Eisenhower 
Clearinghouse for Mathematics and Science Education. 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 
partnership 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.
    The bill would authorize $500 million for 2002 for the Math 
and Science Partnerships program. The existing Eisenhower 
Regional Mathematics and Science Education Consortia is funded 
at $15 million in 2001. The bill also would authorize $5 
million in 2002 for the Eisenhower Clearinghouse for 
Mathematics and Science Education. The Clearinghouse is funded 
at $5 million in 2001. CBO assumes that funding for the new 
programs would be spent at a rate similar to other competitive 
matching grant programs.
    The bill also would authorize $150 million in 2002 for a 
new program. Preparing Tomorrow's Teachers to Use Technology. 
Grants would be awarded competitively to education consortiums 
to develop or redesign teacher preparatory programs to enable 
teachers to use technology effectively in classrooms. CBO 
assumes that outlays for this program would be consistent with 
the rate of spending for other competitive grant programs.
    State and Local Programs for Technology Use in Classrooms. 
The bill would authorize a total of $1 billion in 2002 for 
competitive grants to fund many activities previously 
authorized under the Literacy Challenge Fund, the Innovative 
Challenge Fund, and the National Leadership program. The 
combined funding level in 2001 is $588 million for those three 
programs. The Technology Use in Classrooms program would 
provide grants for ongoing professional development in the 
integration of technology into the curriculum, providing 
educational services for adults and families, and acquiring 
resources. CBO assumes that the rates of spending for this 
program would be similar to other competitive grant programs.
    Portability of Teacher Pensions and Credentials. The bill 
would authorize such sums as may be necessary for fiscal year 
2002 for a National Panel to study various options for 
increasing the reciprocity of recognition of teacher 
credentials and portability of teacher pensions between states. 
A report would be complete no later than one year after 
appointment of the panel. CBO estimates the National Panel 
would cost $2 million, with outlays of about $1 million in each 
of fiscal years 2002 and 2003.

   title iii--moving limited english proficient students to english 
                                fluency

    The bill would authorize $535 million for the Moving 
Limited English Proficiency Students to English Fluency 
program, currently authorized as the Bilingual Education 
program under Title VII or ESEA. The funding level for 2001 is 
$460 million. CBO estimates that implementing this title would 
cost $3.1 billion over the 2002-2008 period.
    The bill would authorize:
          $300 million for 2002 for the Bilingual Education 
        Program, which is funded at $296 million for 2001;
          $35 million for the Foreign Language Assistance 
        Program in 2002, which received $14 million in funding 
        in 2001; and
          $200 million for the Emergency Immigrant Education 
        Program, which is funded at $150 million for 2001.

          Title IV--Safe and Drug-Free Schools and Communities

    The bill would authorize a total of $930 million for 2002 
to continue the Safe and Drug-Free Schools and Communities 
Program, currently authorized under Title IV of ESEA. CBO 
estimates that implementing this title would cost $5.5 billion 
over the 2002-2008 period. Total funding for the program in 
2001 is $644 million.
    State Grants. The bill would authorize $700 million in 2002 
to continue grants to state educational agencies and governors' 
programs, which are funded at $439 million in 2001.
    The bill would authorize $150 million in 2002 to continue 
national programs, which are funded at $155 million in 2001. 
The bill also would authorize $75 million in 2002 to continue 
the National Coordinator Initiative. The National Coordinator 
Initiative is funded at $50 million in 2001.
    The bill would also create a new competitive grant program 
to provide grants to elementary and secondary schools to combat 
the impact of experiencing or witnessing domestic violence on 
elementary and secondary children. Funds could be used for 
training of personnel or developing programs and policies to 
combat the impact of experiencing or witnessing domestic 
violence. The bill would authorize $5 million in 2002, 2003, 
and 2004 for this program. CBO assumes a spending rate 
consistent with the rate of spending for other new competitive 
grant programs.
    School Safety and Violence Prevention. The bill would allow 
federal funds in title IV to be used to train personnel to 
identify potential safety threats in the schools. CBO expects 
that this provision would have no impact on the rate at which 
such funds are spent.

             Title V--Public School Choice and Flexibility

    Title V would authorize $1.7 billion in 2002 for several 
programs previously authorized under other titles of ESEA. 
Programs authorized under Title V are Charter Schools, Magnet 
Schools, Public School Choice, Rural Education, Innovative 
Education Programs, and Advanced Placement. CBO estimates that 
implementing this title would cost $10.3 billion over the 2002-
2008 period.
    Public School Choice. The bill would reauthorize the 
Charter School program, currently authorized through 2003 under 
the Charter School Reauthorization Act (Public Law 105-278) and 
through 2004 under GEPA. The bill would authorize $190 million 
for 2002-the same amount that has been provided for 2001--and 
extend the authorization through 2008.
    The bill would authorize $125 million for 2002 to continue 
the Magnet Schools Program currently authorized under Part A of 
Title V, compared with 2001 funding of $110 million.
    The bill would reauthorize $225 million for each of the 
fiscal years 2002-2008 for the Public School Choice program 
which was created in the Consolidated Appropriations Act of 
2001 (Public Law 106-554). The program allocates funds to 
states who in turn allocate funds to LEAs for school 
improvement activities. LEAs that receive funds must provide 
students enrolled in a school identified for school improvement 
with an option to transfer to another public school that has 
not been identified for school improvement within the school 
district served by the LEA. The program is funded at $225 
million in 2001 as a set-aside from basic grants to LEAs under 
Title I of ESEA.
    Flexibility. The bill would authorize the Rural Education 
Achievement Program and the Local Innovative Education Program.
    The bill would create a new program called the Rural 
Education Achievement 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 available 
for grants to small rural education agencies to carry out 
innovative assistance activities. Any remaining funds could be 
used for grants to state educational agencies for the low-
income and rural school program. The Urban and Rural Education 
Assistance Program is not funded for 2001.
    The bill also would authorize $850 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.
    Flexibility and Coordination. The bill would allow state 
educational agencies to consolidate funds for administration of 
programs. The bill 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.
    Advanced Placement Programs. The bill would authorize $50 
million in 2002 and expand allowable activities under the 
Advanced Placement program currently authorized by Part B of 
Title VII of the Higher Education Act. Funds would first be 
allocated to states to enable states to reimburse low income 
individuals to cover all or part of the cost of advanced 
placement (AP) test fees. The remainder of funds could be used 
to expand AP courses and fund on-line AP courses. The program 
is funded at $22 million in 2001.

           title vi--parental involvement and accountability

    Title VI would authorize a total of $610 million in 2002 
for new initiatives aimed at increasing parental involvement in 
schools. CBO estimates that implementing this title would cost 
$3.6 billion over the 2002-2008 period.
    Parental Involvement Grants. The bill would authorize $50 
million for 2002 for a new Parental Involvement Grant Program. 
The Parental Involvement Grant Program would replace and expand 
upon the Parental Assistance Funds Program, authorized under 
Title IV of Goals 2000 which is funded at $38 million in 2001. 
Funds provided under this part would be used to support 
continuation grants for recipients under the current program.
    Improving Academic Achievement. The bill also would 
authorize funds for the planning and implementation of the 
state assessment plans and the administration of the annual 
assessments of students described in title I of this bill. The 
bill would authorize $400 million in 2002 for planning and 
implementation of state plans. The bill also would authorize 
$110 million for states to administer assessments under 
National Assessment of Educational Progress (NAEP). The bill 
would provide funds to states to administer state assessments 
of fourth- and eighth-grade reading and mathematics under NAEP. 
CBO assumes the new funds will be spent at a rate consistent 
with the rate for other new formula grant programs.
    The bill also would create a new Education Award program 
which would allow the Secretary of Education to award grants to 
states that make the most progress in student achievement, 
schools that complete their state assessment plans in advance 
of the schedule, and schools that make the most progress in the 
progress of economically disadvantaged students' achievement. 
The bill would authorize $50 million for education awards. CBO 
assumes funds would be spent at the same rate as the National 
Assessment of Educational Progress grants.
    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 reduced up to 30 percent. States that fail 
to make progress for three or more consecutive years could have 
up to 75 percent of their administrative funds reduced. CBO 
expects that this provision would not significantly change 
spending.

    title vii--indian, native hawaiian, and alaska native education

    The bill would authorize $161 million to continue education 
programs currently authorized under Parts A, B, and C of Title 
IX of ESEA. Total funding for 2001 is $159 million.
    Indian Education. For 2002, the bill would reauthorize a 
total of $116 million for Indian Education programs. The bill 
would authorize $93 million for formula grants to LEAs for 
Indian Education. That program is funded at the same amount for 
2001. The bill would authorize $20 million for special programs 
and national activities in 2002, the same amount that is 
appropriated for 2001. Finally, the bill would authorize $3 
million for each of the fiscal years 2002 through 2008 for 
grants to tribes for administration and planning. Funding in 
2001 is also $3 million.
    Native Hawaiian Education. The bill would authorize $28 
million in 2002 for education for Native Hawaiians. Current 
programs would be consolidated into one authorization and new 
activities would be authorized. The appropriation for 2001 is 
also $28 million. The bill also would authorize $300,000 for a 
Native Hawaiian Council to oversee coordination of educational 
services available to Native Hawaiians.
    Alaska Native Education. The bill would authorize $17 
million in 2002 for Alaska Native education. Funding in 2001 is 
$15 million.

                          title viii--repeals

    The bill would repeal Titles IX through XIV of the 
Elementary and Secondary Education Act of 1965. The bill also 
would repeal the Goals 2000: Educate America Act. Programs that 
would be repealed in title VIII or elsewhere in the bill 
include:
          Telecommunications Demonstration Project for 
        Mathematics,
          Elementary Mathematics and Science Equipment Program,
          Star Schools,
          Ready to Learn TV,
          Technology Education,
          Women's Education Equity,
          Fund for Improvement of Education,
          Gifted and Talented,
          Arts in Education,
          Inexpensive Book Distribution,
          Ellender Fellowship,
          National Writing Project,
          International Education Exchange,
          School Facilities Infrastructure Improvement Act,
          Comprehensive Regional Assistance Centers,
          National Diffusion Network,
          Eisenhower Regional Mathematics and Science Education 
        Consortia,
          Community-based Technology Centers,
          Professional Development National Programs, and
          School Renovation Grants.

                   TITLE IX--MISCELLANEOUS PROVISIONS

    Title IX would authorize the appropriation of $4 million in 
2002 for an evaluation of standardized tests that are mandated 
to be used in determining a student's promotion, graduation, or 
tracking. the bill would authorize such funding for the Board 
on Testing and Assessment of the National Research Council of 
the National Academy of Sciences for an ongoing evaluation of 
the effectiveness of school assessments. The study would not 
exceed four years. CBO estimates that completing the study 
would cost about $1 million each year over the four-year 
period.
    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 over 
$27 billion in grants to state and local education agencies and 
tribal governments to support their efforts 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.

                   VIII. Section-By-Section Analysis

    Section 1--Short Title; Table of Contents. Section 1 
specifies the title of the legislation as the ``Better 
Education for Students and Teachers Act'' and lists the table 
of contents.
    Section 2--References. Section 2 notes that all amendments 
and repeals referenced in the act apply to the Elementary and 
Secondary Education Act of 1965 (ESEA).
    Section 3--Short Title; Purpose; Definitions; Uniform 
Provisions. Section 3 amends the Elementary and Secondary 
Education Act (``the Act'') to add the following new sections:
    Section 2 of the Act specifies the purpose of the 
Elementary and Secondary Education Act, which is to support 
programs and activities that will improve the Nation's schools 
and enable all children to achieve high standards.
    Section 3 of the Act includes the definitions used 
throughout ESEA.
    Section 4 of the Act--Maintenance of Effort. This section 
restates current law provisions requiring that a local 
educational agency must maintain at least 90 percent of its 
combined fiscal effort per student or the aggregate of State 
and local educational agency expenditures for free public 
education for the previous fiscal year in order to receive 
funds under the Act.
    Section 5 of the Act--Prohibition Regarding State Aid. This 
section restates current law provisions prohibiting a State 
from taking payments under this Act into consideration in 
determining the eligibility of a local educational agency for 
State aid or for the amount of such aid. An exception is made 
for payments under Title VIII (impact aid).
    Section 6 of the Act--Participation by Private School 
Children and Teachers. This section restates current law 
provisions regarding programs under the Act in which private 
school children and teachers may participate and the conditions 
and procedures which apply to such participation.
    Section 7 of the Act--Standards for By-Pass. This section 
restates current law provisions regarding the Secretary's 
arranging for equitable services to children, teachers, or 
other educational personnel at private elementary and secondary 
schools in cases where a State educational agency, a local 
educational agency, an educational service agency, or 
consortium is prohibited from providing for their 
participation.
    Section 8 of the Act--Complaint Process for Participating 
of Private School Children. This section restates current law 
provisions establishing procedures regarding complaints 
regarding violations of provisions of the Act providing for 
participation by private school children and teachers.
    Section 9 of the Act--By-Pass Determination Process. This 
section restates current law provisions providing that the 
Secretary may not exercise by-pass authority until the State 
educational agency, local educational agency, educational 
service agency, or consortium of such agencies affected by the 
action has had an opportunity to submit written objections and 
to appear before the Secretary. The agency or consortium may 
appeal the decision of the Secretary. Funding for the services 
provided through the by-pass authority is providing from the 
appropriate State allocation or allocations under the Act.
    Section 10 of the Act--Prohibition Against Funds for 
Religious Worship or Instruction. This section restates the 
current law provision that nothing in the Act is to be 
construed to authorize the making of any payment for religious 
worship or instruction.
    Section 11 of the Act--Applicability to Home Schools. This 
section restates the current law provision that nothing in the 
Act is to be construed to affect home schools.
    Section 12 of the Act--General Provision regarding 
Nonrecipient Nonpublic Schools. This section restates current 
law provisions providing that nothing in the Act is to be 
construed to authorize 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. The section is not be to construed to bar private, 
religious, or home schools from participating in programs or 
services under the Act.
    Section 13 of the Act--School Prayer. This section restates 
current law provisions regarding school prayer.
    Section 14 of the Act--General Prohibitions. This section 
restates current law provisions prohibiting the use of funds 
under this Act for the promotion of sexual activity, the 
distribution of obscene materials to minors, sex education or 
HIV prevention education (unless such instruction is age 
appropriate and includes the health benefits of abstinence), or 
condom distribution.
    Section 15 of the Act--Prohibition on Federal Mandates, 
Direction, and Control. This section restates current law 
provisions providing that nothing in the Act is to be construed 
to authorize Federal direction or control of curriculum, 
programs of instruction, or allocation of State or local 
resources. The section also provides that the Federal 
Government may not require a State or any subdivision to spend 
funds or incur costs not paid for under the Act.

           title I--better results for disadvantaged children

    Section 101--Policy and Purpose. Section 101 amends section 
1001 of the Act to modify the purpose. The purpose is to enable 
schools to provide opportunities for children served under 
title I to acquire the knowledge and skills contained in the 
challenging State content standards and to meet the challenging 
State student performance standards developed for all children. 
Thesection also describes various mechanisms for accomplishing 
the purpose.
    Section 102--Authorization of Appropriations. Section 102 
amends section 1002 of the Act and specifies the authorized 
funding levels for all parts and certain provisions of title 1. 
The authorization level for part A (Better Results for 
Disadvantaged Children) is $15 billion for fiscal year 2002 and 
such sums as may be necessary in each of the 6 succeeding 
fiscal years. The authorization level for subpart 1 of part B 
(Even Start) is $250 million for fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years. 
The authorization level for subpart 2 of part B (Reading First) 
is $900 million for fiscal year 2002 and such sums as may be 
necessary in each of the 6 succeeding fiscal years. The 
authorization level for subpart 3 of part B (Early Reading 
First) is $75 million for fiscal year 2002 and such sums as may 
be necessary in each of the 6 succeeding fiscal years. The 
authorization level for part C (Migratory Children) is $400 
million for fiscal year 2002 and such sums as may be necessary 
in each of the 6 succeeding fiscal years. The authorization 
level for Part D (Neglected, Delinquent Youth) is $50 million 
for fiscal year 2002 and such sums as may be necessary in each 
of the 6 succeeding fiscal years. The authorization level for 
section 1120(e) (Capital Expenses) is $15 million for each of 
the fiscal years 2002 and 2003 and is $5 million for fiscal 
year 2004. The authorization level for section 1501 (Federal 
Activities) is $10 million for fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years. 
For section 1502, the authorization level is $25 million for 
fiscal year 2002 and such sums as may be necessary in each of 
the 6 succeeding fiscal years. The authorization level for part 
F (21st Century Community Learning Centers) is $1.5 billion for 
fiscal year 2002 and such sums as may be necessary in each of 
the 6 succeeding fiscal years. The authorization level for part 
G (Comprehensive School Reform) is $250 million for fiscal year 
2002 and such sums as may be necessary in each of the 6 
succeeding fiscal years. The authorization level for part H 
(School Dropout Prevention) is $250 million for fiscal year 
2002 and such sums as may be necessary in each of the 6 
succeeding fiscal years, of which 10 percent will be used for 
subpart 1 (Coordinated National Strategy) and the remaining 90 
percent for subpart 2 (National School Dropout Prevention 
Initiative).
    Section 103--Reservation and Allocation for School 
Improvement. Section 103 amends section 1003 of the Act to 
provide that each State educational agency will reserve a 
portion of its title I allocation to conduct school improvement 
activities and to provide technical assistance and support for 
local educational agencies. At least half of the reserved funds 
must be provided directly to local educational agencies for 
schools identified for school improvement, corrective action, 
or reconstitution. The reserved amount is 3.5 percent of the 
allocation in each of fiscal years 2002 and 2003, rising to 5 
percent of that amount in each of fiscal years 2004 through 
2008.

Part A--Better Results for Disadvantaged Children

    Section 111--State Plans. Section 111 rewrites section 1111 
of the Act. Provisions of the new section 1111 include:
    Section 1111(a)--State Plans. Section 1111(a) requires 
States to submit a plan to the Secretary by March 1, 2002, in 
order to received funds under part A. The plan must meet the 
requirements of section 1111 and be coordinated with other 
programs under this Act and with other Federal education 
programs.
    Section 1111(b)--Standards, Assessments, and 
Accountability.
    Section 1111(b)(1) [Challenging Standards] requires that 
States adopt challenging content and student performance 
standards and that those standards apply to all schools and 
children in the State. In addition to having standards in 
mathematics and reading or language arts, as required by 
current law, States must have standards in history and science. 
States have until the beginning of the 2005-2006 school year to 
meet the new history and science standards requirement. The 
section maintains current law provisions requiring that 
challenging student performance standards be aligned with State 
content standards and that they describe 2 levels of high 
performance (proficient and advanced) and 1 other level of 
performance (partially proficient).
    Section 1111(b)(2)(A) [Accountability] requires States to 
develop and implement a single, statewide accountability system 
for assuring that all local educational agencies and schools 
make adequate yearly progress (AYP). The accountability system 
must be based on the standards and assessments required under 
title I, must include indicators for measuring student 
performance, and must include sanctions and rewards.
    Section 1111(b)(2)(B) [Adequate Yearly Progress] provides 
that adequate yearly progress will be demonstrated by annual 
student assessments. In addition, States must define adequate 
yearly progress in a manner that: (1) applies high standards to 
all students; (2) is statistically valid and reliable; (3) 
results in academic improvement for all students; (4) measures 
progress primarily through assessments; (5) includes annual 
measurable objectives for improvement in the achievement of all 
students and of economically disadvantaged students, students 
with disabilities, students with limited English proficiency, 
migrant students, students by racial and ethnic group, and 
students by gender; (5) includes a timeline for assuring that 
each group of students meets or exceeds the State's proficient 
level of performance within 10 years; and (6) includes school 
completion or dropout rates and at least 1 other academic 
indicator.
    Section 1111(b)(2)(C) [Public Comment] provides that the 
State seek public comments from a range of institutions and 
individuals in developing its plan. In addition, the State is 
to ensure information under part A is widely known throughout 
the State. At a minimum, this information and explanatory text 
is to be made broadly available through means such as the 
Internet, the media, and public agencies.
    Section 1111(b)(2)(D) [Exceptions to Statewide Application] 
addresses cases where no State official or entity has authority 
under State law to adopt curriculum content standards, student 
performance standards, and aligned assessments which are 
applicable to all public school students. In such cases, the 
State may meet title I requirements either: (1) by applying 
statewide standards and assessments only to children served 
under part A, or (2) by ensuring that each local educational 
agency which receives title I funds will adopt standards and 
assessments which meet all of the criteria described in 
subsection (b).
    Section 1111(b)(2)(E) [Statistical Significance] provides 
that the State plan must include a description of the standard 
the State will use in determining statistically significant 
educational progress for purposes of implementing the 
reconstitution provisions.
    Section 1111(b)(3) [Assessments] provides that, in addition 
to having annual student assessments in mathematics and reading 
or language arts as required by current law, States must have 
such assessments in science. States have until the beginning of 
the 2007-2008 school year to meet the new science assessment 
requirement. The same assessments must be used to measure the 
performance of all children. A new provision is added to 
require annual assessment in mathematics and reading or 
language arts of all students in grades 3 through 8, beginning 
in school year 2005-2006. In exceptional circumstances, a State 
may be given 1 additional year to come into compliance. In 
addition, a State will not be required to conduct any of the 
new mathematics and reading assessments in any school year in 
which less than 50 percent of the costs of administering these 
assessments was provided by the Federal government in the 
previous year.
    All reading or language arts assessments must be written in 
English for any student who has attended school in the United 
States for 3 or more consecutive years, unless the local 
educational agency--on a case-by-case basis--determines that 
assessments in another language would yield more accurate and 
reliable information. In such situations, students may be 
tested in a language other than English for 1 additional year 
or--in exceptional circumstances--for additional years. The 
section also clarifies that the individual student reports 
required under current law must be provided to parents of all 
students. The report must include scores, and may include other 
performance standards (student course work over time, 
attendance rates, dropout rates, and participation in advanced 
level courses).
    Section 1111(b)(3) also maintains current law provisions 
requiring that assessments: (1) be aligned with State content 
and student performance standards; (2) be used for purposes for 
which they are valid and reliable; (3) be consistent with 
relevant, nationally recognized professional and technical 
standards; (4) be administered at least once during grades 3 
through 5, 6 through 9, and 10 through 12; (5) involve multiple 
measures of student performance; (6) provide for the 
participation of all students, including students with 
disabilities and limited English proficient students; (7) 
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; (8) provide 
individual student interpretive and descriptive reports which 
include test scores or other information on the attainment of 
performance standards; (9) enable results to be disaggregated 
by gender, by racial and ethnic group, by English proficiency 
status, by migrant status, by students with disabilities 
compared with nondisabled students, and by economically 
disadvantaged students compared with students who are not 
economically disadvantaged.
    Section 1111(b)(4) [Special Rules] clarifies the current 
law provision permitting the inclusion of measures that do not 
meet standards of validity and reliability, provided that the 
State includes information regarding efforts to validate such 
measures. A new provision is added, permitting States to 
measure the academic proficiency of students in grades 
kindergarten through 2.
    Section 1111(b)(5) [Language Assessments] maintains the 
current law provision that States identify the languages other 
than English for which yearly student assessments are needed, 
but not available. The Secretary is to assist with the 
identification of appropriate assessment measures but shall not 
mandate a specific assessment or mode of instruction. A 
reference in current law to the Office of Bilingual Education 
and Minority Language Affairs is deleted.
    Section 1111(b)(6) [Requirement] maintains the current law 
provision that the State plan describe how it will assist local 
educational agencies and schools to comply with requirements 
related to school improvement and corrective action, schoolwide 
projects, and targetted assistance schools, as applicable, and 
describe other factors deemed appropriate to providing students 
an opportunity to achieve.
    Section 1111(b)(7) [ED-FLEX] provides that a State will not 
be eligible for designation as an Ed-Flex State until it 
develops assessments aligned with the State's content standards 
in mathematics and reading or language arts.
    Section 1111(c) [Other Provisions to Support Teaching and 
Learning] includes new State plan assurances that States will: 
(1) produce annual State report cards, beginning with the 2002-
2003 school year; (2) participate in annual State assessments 
of 4th and 8th grade reading and mathematics under the National 
Assessment of Educational Progress (NAEP), provided that the 
Secretary pays the cost of administering such assessments; (3) 
provide technical assistance to local educational agencies and 
schools to carry out parental involvement responsibilities; (4) 
inform the Secretary and the public of how Federal laws, if at 
all, hinder their ability to hold local educational agencies 
and schools accountable for student academic performance; (5) 
encourage schools to consolidate funds from other Federal, 
State, and local sources for schoolwide reform; (6) modify or 
eliminate fiscal and accounting barriers so that schools can 
easily consolidate funds from other Federal, State, and local 
sources for schoolwide programs; (7) inform local educational 
agencies of their authority to obtain waivers under this act; 
and (8) coordinate activities funded under part A with other 
Federal activities. Section 1111(c) also maintainscurrent law 
provisions requiring assurances in the State plan that the 
State will: (1) provide technical assistance to local 
educational agencies and schools; (2) consider providing 
professional development and technical assistance through 
educational service agencies or through other cooperative 
agreements; (3) notify local educational agencies and the 
public of standards and assessments and of the authority to 
operate schoolwide programs; (4) fulfill its responsibilities 
regarding local educational agency improvement and school 
improvement; (5) provide the least restrictive and burdensome 
regulations for local educational agencies and schools; and (6) 
involve the committee of practitioners in developing the plan 
and monitoring its implementation.
    Section 1111(d) [Parental Involvement] includes new 
provisions requiring States to collect effective parental 
involvement practices and disseminate this information to local 
educational agencies and schools.
    Section 1111(e) [Peer Review and Secretarial Approval] 
maintains current law provisions regarding the establishment of 
a peer review process to assist the Secretary in reviewing 
State plans and procedures to be followed in the event the 
State plan does not meet the requirements of this section. 
Language is added to specify that members of the peer review 
panel must be familiar with educational standards, assessments, 
accountability, and other diverse educational needs of 
students. In addition, the Secretary must approve a State plan 
within 120 days of its submission unless the plan fails to meet 
the requirements of this section.
    Section 1111(f) [Provision of Testing Results to Parents 
and Teachers] includes a new provision requiring that local 
educational agencies provide the results from required 
assessments to parents and teachers as soon as is practicably 
possible after the test is taken--in a manner and form that is 
understandable and easily accessible to parents and teachers.
    Section 1111(g) [Duration of the Plan] maintains current 
law provisions providing that a State plan will remain in 
effect for the duration of its participation under part A, with 
periodic review and revisions.
    Section 1111(h) [Limitation on Conditions] maintains the 
current law provision that nothing in part A is to be construed 
to authorize Federal control over specific instructional 
content, student performance standards and assessments, 
curriculum, or program of instruction as a condition of 
receiving part A funds.
    Section 1111(i) [Penalty] includes a new provision 
requiring the Secretary to withhold State administrative funds 
in cases where a State fails to meet statutory deadlines for 
having in place challenging content and student performance 
standards and a system for measuring and monitory adequate 
yearly progress.
    Section 1111(j) [Reports] includes new requirements for the 
issuance of annual report cards by States and local educational 
agencies, beginning in the 2002-2003 school year. All report 
cards must be broadly disseminated through public means.
    Section 1111(j)(1) [State Report Cards] provides that the 
State report card be concise and presented in an understandable 
form. The report card must include: (1) information on student 
achievement at each proficiency level on the State assessments, 
disaggregated by race, ethnicity, gender, disability status, 
migrant status, English proficiency, and socioeconomic status; 
(2) the percentage of students not tested, also disaggregated; 
(3) the number and names of each school identified for school 
improvement; (4) information on the adequate yearly progress of 
local educational agencies; and (5) such other information the 
State chooses to include regarding the progress of public 
schools in the State.
    Section 1111(j)(2) [Local Educational Agency Report Cards] 
provides that the local educational agency report card include 
information about the LEA and each school served by it. The 
information about the local educational agency to be included 
is the number and percentage of schools identified for school 
improvement and the performance by students on statewide 
assessments compared to students in the State as a whole. 
Information about schools to be included is whether the school 
has been identified for school improvement and how students 
performed on the statewide assessment compared to students in 
the local educational agency and the State as a whole.
    Section 1111(j)(3) [Pre-existing Report Cards] provides 
that a State or local educational agency that already provide 
public report cards may continue to use those reports to comply 
with the reporting requirements of this section, provided that 
the report includes the information required by the section.
    Section 1111(j)(4) [Annual State Report to the Secretary] 
requires States to report annually to the Secretary, beginning 
in school year 2001-2002, their progress in developing and 
implement required assessments. Beginning in school year 2004-
2005, the annual report must include student assessment 
information, including disaggregated results. The report must 
also include the number and names of schools identified for 
school improvement, the reasons for the identification, and the 
measures taken to address performance problems.
    Section 1111(j)(5) [Parents Right-to-Know] requires local 
educational agencies that receive part A funds provide parents 
with information regarding the professional qualifications of 
their student's teachers. Parents are also to be provided 
information regarding the level of performance of their 
children in each State assessment in an understandable and 
uniform format.
    Section 1111(k) [Privacy] provides that the privacy of 
individuals is to be protected with respect to the information 
collected under this section.
    Section 1111(l) [Technical Assistance] requires the 
Secretary to provide States with technical assistance, upon 
request, regarding the requirements of this section.
    Section 112--Local Educational Agency Plans. Section 112 
amends section 1112 of the act.
    Section 112(1) amends section 1112(a) of the act to specify 
that the local educational agency plan shall be coordinated 
with plans submitted under the Individuals with Disabilities 
Education Act, the Carl D. Perkins Vocational and Technical 
Education Act of 1998, the Head Start Act, and other acts as 
appropriate.
    Section 112(2) amends section 1112(b) of the act to specify 
that the local educational agency shall determine the literacy 
levels of first graders and their needs for interventions and 
shall coordinate professional development planning provisions 
with similar provisions described under title II of this act. 
This section also includes a provision requiring the local 
educational agency to describe, where appropriate, how funds 
under part A will be used to support early childhood education 
programs and to describe how the agency will implement 
effective parental invovlement.
    Section 112(3) amends section 1112(c) of the act to require 
each local educational agency to plan to carry out several new 
activities including: working with schools in the development 
and implementation of parental involvement and professional 
development activities; complying with professional development 
requirements as described under this part; informing eligible 
schools about waiver authority; ensuring the use of effective 
strategies to avoid low-income and minority students' being 
taught at higher rates than other students by unqualified or 
inexperienced teachers; using the results of assessments and 
other indicators to review annually the progress of each school 
served by the agency; and assuring that parents and teachers 
are provided with assessment results as soon as possible after 
the test is given. In addition, the section maintains current 
law provisions regarding local educational agency activities, 
including: providing information to schools and parents 
regarding schoolwide authority; providing technical assistance 
to schoolwide programs; working with schools in the development 
and implementation of school plans; fulfilling school 
improvement responsibilities; coordinating, to the extent 
possible, with other agencies providing services to children, 
youth, and families; providing services to eligible children 
attending private elementary and secondary schools in 
accordance with the act; and examining model programs for the 
educationally disadvantaged.
    Section 112(4) amends section 1112(e) of the act to add a 
requirement that the State review a local educational agency 
plan to determine if such agency's parental involvement 
activities are in accordance with section 1118.
    Section 113--Eligible School Attendance Areas. Section 113 
amends Section 1113(b) of the act to add a provision allowing a 
local educational agency to designate and serve, for 1 
additional year, a school attendance area or school that is not 
an eligible school attendance area, but that was an eligible 
school attendance area and was served in the fiscal year 
preceding the fiscal year for which the determination is made.
    Section 114--Schoolwide Programs. Section 114 amends 
Section 1114 of the act to allow a local educational agency to 
use part A funds with other Federal, State, and local funds to 
upgrade the entire educational program in a school that serves 
an eligible school attendance area where not less than 40 
percent of the children are from low-income families. A new 
provision is added to indicate that schools with schoolwide 
programs are not required to maintain separate fiscal 
accounting records by program, so long as the school 
demonstrates that the program as a whole addresses the intent 
and purposes of the programs that were consolidated. This 
section also includes technical amendments to section 1114 of 
the act.
    Section 115--Targeted Assistance Schools. Section 115 
includes several technical amendments to section 1115 of the 
act. It addition, the section provides a more specific listing 
of the individuals eligible for professional development and of 
parental involvement activities.
    Section 116--Pupil Safety and Family School Choice. Section 
116 amends subpart 1 of part A of title I by inserting a new 
section after section 1115A of the act. The new section is 
entitled ``SEC. 1115B. PUPIL SAFETY AND FAMILY SCHOOL CHOICE''.
    New Section 1115B(a) describes student eligibility as it 
pertains to the pupil safety and family school choice 
initiative. Eligibility criteria includes a student who is 
served by the title 1 program and becomes a victim of a violent 
criminal offense while on public school grounds. If a student 
meets the eligibility criteria, then the local educational 
agency shall allow the eligible student to transfer to another 
public school or public charter school in the same State as the 
school where the criminal offense occurred. The transfer must 
occur in accordance with State and local law.
    New Section 1115B(b) describes State educational agency 
determinations. These include deciding the actions that 
constitute a violent criminal offense and determining which 
schools in the State are unsafe public schools. A definition of 
``unsafe public schools'' is provided.
    New Section 1115B(c) allows a local educational agency that 
serves the public school in which the violent criminal offense 
occurred to use funds from part A of title I to provide 
transportation services or to pay the reasonable costs of 
transportation for the student to attend another school.
    New Section 1115B(d) specifies that any school receiving 
assistance under this section shall comply with title VI of the 
Civil Rights Act of 1964 and not discriminate on the basis of 
race, color, or national origin.
    New Section 1115B(e) specifies that nothing under this 
section will affect the requirements of part B of the 
Individuals with Disabilities Education Act.
    New Section 1115B(f) stipulates that the amount of 
assistance provided under part A for a student who transfers 
shall not exceed the per pupil expenditures for students as 
provided by the local educational agency that serves the school 
involved in the transfer.
    Section 117--Assessment and Local Educational Agency and 
School Improvement. Section 117 rewrites section 1116 of the 
act. Provisions of the new Section 1116 include:
    Section 1116(a) [Local Review] maintains current law 
requirements that local educational agencies: use State 
assessments, use any additional indicators to review the annual 
progress of each school served under part A, and provide the 
result of the local review to schools. A new provision is 
added, requiring the local educational agency to annually 
review the effectiveness of schools in carrying out parental 
involvement and professional development activities.
    Section 1116(b) [Designation of Distinguished Schools] 
restates the current law provision providing for State and 
local designation of distinguished schools.
    Section 1116(c) [School Improvement]. Section 1116(c)(1) 
requires a local educational agency to identify a school for 
school improvement if the school fails to make adequate yearly 
progress in any year or was in school improvement status 
immediately prior to the enactment of the Better Education for 
Students and Teachers Act. An exception is provided in cases 
where nearly every student in the school is meeting the State's 
proficient level of performance.
    Section 1116(c)(2) [Opportunity to Review and Present 
Evidence; Time Limit] provides that a school shall have the 
opportunity to review school-level data prior to being 
identified for school improvement, corrective action, or 
reconstitution. If the principal of the school believes the 
data is in error, he or she may provide supporting evidence. 
The local educational agency must make a final determination 
within 30 days after making an initial determination of the 
status of a school.
    Section 1116(c)(3) [School Plan] provides that a school 
identified for school improvement must develop a school plan 
within 3 months. The plan is to cover a 2-year period and is to 
include strategies, policies, and practices designed to improve 
student academic performance. The school must reserve at least 
10 percent of its part A funds to provide high-quality 
professional development to the school's teachers and 
principal. The local educational agency may condition approval 
of the school plan on inclusion of 1 or more corrective actions 
(which include alternative governance arrangements, replacement 
of school staff, and institution of a new curriculum). A school 
must implement the plan no later than the beginning of the 
school year following the identification of the school as being 
in need of improvement. Within 45 days of receiving a school 
plan, the local educational agency must establish a peer-review 
process and review the plan.
    Section 1116(c)(4) [Technical Assistance] requires the 
local educational agency to provide technical assistance to 
each school identified for school improvement. The technical 
assistance must be based on scientifically based research and 
must include assistance in analyzing assessment data, in 
identifying and implementing instructional strategies, and in 
analyzing the budget of the school. Technical assistance may be 
provided through other entities.
    Section 1116(c)(5) [Notification to Parents] provides a new 
requirement that the local educational agency promptly notify 
the parents of a school identified for school improvement to 
explain what school improvement means, what is being done to 
address the performance problems of the school, and what 
parents can do to help deal with these problems.
    Section 1116(c)(6) [Corrective Action].
    Section 1116(c)(6)(A) defines ``corrective action'' as 
being a direct and substantial response to the consistent 
academic failure of a school and the underlying causes of the 
failure in order to increase the likelihood that students will 
perform at proficient and advanced levels.
    Section 1116(c)(6)(B) requires each local educational 
agency to implement a system of corrective action.
    Section 1116(c)(6)(C) specifies that, after providing 
technical assistance, the local educational agency may take 
corrective action for any school that fails to made adequate 
yearly progress for 1 year after the school has been identified 
for school improvement. The local educational agency must take 
corrective action for any school that fails to make adequate 
yearly progress within 2 years of being identified for school 
improvement. The local educational agency must also take 
corrective action for any school that was in program-
improvement status for 2 years or in corrective action 
immediately prior to the enactment of BEST. The local 
educational agency must continue providing technical assistance 
to schools in corrective action and must promptly notify 
parents of the option to transfer their child to another public 
school.
    Section 1116(c)(6)(D) provides that all students enrolled 
in a school which the local educational agency is required to 
place in corrective action be given the option to transfer to 
another public school within the local educational agency which 
has not been identified for school improvement. Exceptions to 
this requirement include instances in which such an option is 
prohibited by State or local law or where the local educational 
agency does not have the capacity to provide the transfer 
option to all students who request it. In cases where lack of 
capacity is the issue, the agency must permit as many students 
as possible, selected on an equitable base, to transfer. In 
addition, the local agency must take at least 1 of the 
following corrective actions: (1) make alternative governance 
arrangements; (2) replace the relevant school staff; and (3) 
institute and fully implement a new curriculum.
    Section 1116(c)(6)(E) provides that a local educational 
agency may delay implementation of corrective action for no 
more than 1 year in cases where failure to make adequate yearly 
progress was due to exceptional or uncontrollable 
circumstances.
    Section 1116(c)(6)(F) requires the local educational agency 
to publish information regarding any corrective action it takes 
to the public and parents, in a format and language that 
parents can understand.
    Section 1116(c)(7) [Reconstitution].
    Section 1116(c)(7)(A) provides that, if a school subject to 
corrective action continues to fail to make adequate yearly 
progress after 1 year and if economically disadvantaged 
students are not making statistically significant progress, the 
local educational agency must provide all students with the 
option to transfer to another public school in the local 
educational agency which has not been identified for school 
improvement. In this case, each student is to be given the same 
right to attend any public school as is provided to any child 
who is a new resident of that school's attendance area. The 
local educational agency must also prepare a plan and make 
arrangements for alternative governance for the school.
    Section 1116(c)(7)(B) provides that, no later than 1 year 
after the transfer option described in subparagraph (A) is 
implemented, the local educational agency must: (1) reopen the 
school as a public charter school; (2) replace all or most of 
the school staff; or (3) make alternative governance 
arrangements.
    Section 1116(c)(7)(C) provides that the local educational 
agency must promptly notify teachers and parents whenever the 
transfer option or the alternative governance arrangements 
apply.
    Section 1116(c)(8) [Transportation] provides that the local 
educational agency must provide or pay for the transportation 
of students who choose the transfer option provided under the 
corrective action or reconstitution provisions of this section, 
provided that transportion payments do not exceed 15 percent of 
the agency's title I allocation.
    Section 1116(c)(9) [Duration of Reconstitution] provides 
that a school identified for reconstitution will not be subject 
to corrective action or identified for school improvement if 
the school makes adequate yearly progress for 2 consecutive 
years and if economically disadvantaged students at the school 
make statistically significant educational progress over that 
same period.
    Section 1116(c)(10) [State Educational Agency 
Responsibilities] requires the State educational agency to make 
technical assistance available to all schools identified for 
school improvement and corrective action and to take corrective 
actions if a local educational agency fails to do so.
    Section 1116(d) [State Review and Local Educational Agency 
Improvement].
    Section 1116(d)(1) specifies that a State educational 
agency shall prepare an annual performance report for each 
local educational agency receiving funds under part A. The 
performance report shall contain information regarding local 
educational agency performance in making adequate yearly 
progress, the progress of the local educational agency in 
enabling students to meet the State levels of performance, and 
the effectiveness of professional development and parental 
involvement activities carried out by the local educational 
agency.
    Section 1116(d)(2) [Rewards] provides that the State may 
make institutional and individual rewards to local educational 
agencies that have met or exceed the State's definition of 
adequate progress for 3 consecutive years.
    Section 1116(d)(3) [Identification] provides that the State 
must identify for improvement any local educational agency that 
is not making adequate yearly progress for 2 consecutive years 
in schools served under part A. The local educational agency 
must be given the opportunity to review the data on which the 
identification is based and may provide evidence to the State 
that the identification for improvement is in error.
    Section 1116(d)(4) [Local Educational Agency Revisions] 
provides that, if a local educational agency is identified as 
an entity needing improvement, the local educational agency 
shall submit a plan that: (1) includes specific yearly progress 
requirements; (2) addresses the teaching and learning needs in 
the schools within the local educational agency; (3) 
incorporates research-based strategies; (4) addresses 
professional development needs of the instructional staff, 
including the commitment of 10 percent of title I funds during 
1 fiscal year for professional development; (4) identifies 
specific goals and objectives the local educational agency will 
undertake for making adequate yearly progress; (5) identifies 
how the local educational agency will provide written 
notification to parents; (6) specifies the responsibilities of 
the State educational agency and the local educational agency; 
and (7) includes strategies for effective parental involvement.
    Section 1116(d)(5) [State Educational Agency 
Responsibility] specifies that the State will provide technical 
assistance to local educational agencies needing improvement. 
Such assistance must be supported by scientifically based 
research instructional strategies and must address any problems 
the local educational agency may be having in implementing 
parental involvement and professional development activities.
    Section 1116(d)(6) [Corrective Action].
    Section 1116(d)(6)(A) provides that the State must 
implement a corrective action system.
    Section 1116(d)(6)(B) provides that, after providing 
technical assistance, each State educational agency may take 
corrective action at any time for any local educational agency 
that has been identified for improvement and shall continue to 
provide technicalassistance while implementing any corrective 
action. Consistent with State and local law, the State 
educational agency shall take at least 1 of the following 
corrective actions: (1) instituting and implementing a new 
curriculum; (2) restructuring the local educational agency; (3) 
developing and implementing a joint plan between the State 
educational agency and the local educational agency that 
addresses student performance problems; (4) reconstituting 
school district personnel; or (5) making alternative governance 
arrangements. This section also lists several permissible 
corrective actions that a State educational agency may 
implement, including: (1) deferring, reducing, or withholding 
funds; (2) restructuring or abolishing the local educational 
agency; (3) removing particular schools from the jurisdiction 
of the local educational agency, or (4) appointing a receiver 
or trustee to administer the local educational agency.
    Section 1116(d)(6)(C) [Hearing] provides that, prior to 
implementing any corrective action, the State educational 
agency shall provide a hearing to the affected local 
educational agency, if State law provides for a hearing 
process.
    Section 1116(d)(6)(D) [Notification to Parents] provides 
that the State must notify parents and the public of any 
corrective action it takes.
    Section 1116(d)(6)(E) [Delay] provides that a State 
educational agency may delay, for a period not to exceed 1 
year, implementation of corrective action if the State 
educational agency determines that the local educational agency 
is meeting the State yearly progress requirements and the 
schools within the local educational agency will meet the 
State's criteria for improvement within 1 year.
    Section 1116(d)(6)(F) [Waivers] provides that the State 
educational agency shall review any waivers granted to a local 
educational agency that has been designated for improvement or 
corrective action and shall terminate any waiver that is not 
helping the local educational agency meet the yearly progress 
requirements.
    Section 1116(d)(7) [Special Rule] provides that local 
educational agencies which make adequate progress for at least 
2 of the 3 years following identification no longer need to be 
identified for improvement.
    Section 1116(e) [Construction] provides that nothing in 
this section shall be construed to alter or otherwise affect 
the rights of school or school district employees under 
Federal, State, or local laws or under agreements between such 
employees and their employers.
    Section 118--Assistance for School Support and Improvement. 
Section 118(1) amends section 1117(a) of the act to list the 
priorities for a State educational agency for providing support 
to local educational agencies. First, the State educational 
agency must provide support and assistance to local educational 
agencies that have received corrective action. Second, the 
State educational agency must provide support and assistance to 
other local educational agencies and schools identified as in 
need of improvement. Third, the State educational agency must 
provide support and assistance to other local educational 
agencies and schools participating under part A of title I that 
need support and assistance to carry out the purpose of part A.
    Section 118(2) amends section 1117(b) of the act to correct 
the reference to comprehensive regional technical assistance 
centers.
    Section 118(3) rewrites section 1117(c)(1) of the act to 
specify that priority be given to the establishment of school 
support teams for assignment to and working in schools subject 
to corrective action and for the support of such teams. Each 
school support team is to be comprised of individuals 
knowledgeable about successful schoolwide projects, school 
reform, and improving educational opportunities for low-
achieving students. The support team assigned to a school is 
to: review all facets of the school's operation; collaborate in 
the design, implementation, and monitoring of the school plan; 
evaluate the effectiveness of school personnel; and make 
additional recommendations, as the school implements its plan, 
regarding additional assistance and resources that are needed. 
After 1 school year, the support team may recommend that it 
continue to provide assistance to the school or that the local 
educational agency or the State take other action with respect 
to the school. This section also makes minor revisions in 
current law provisions, enabling a State--if the State chooses 
to do so--to recognize and provide financial rewards to 
teachers or principals in a school where the students have 
consistently made significant gains in academic achievement.
    Section 119--Parental Involvement. Section 119 amends 
section 1118 of the act.
    Section 119(1) amends section 1118(a)(2)(B) of the act to 
specify that the local educational agency will provide the 
coordination, technical assistance, and other support necessary 
to assist participating schools in planning and implementing 
effective parent involvement activities to improve student 
achievement and student and school performance.
    Section 119(2) amends section 1118(b)(1) of the act to 
ensure that schools served under this part of the act will 
jointly develop, and distribute a written policy of parental 
involvement, in a language parents can understand, to the 
parents of participating children that shall describe the means 
for carrying out the requirements of subsections (c) through 
(f). The policy shall also be made available to the local 
community and shall be updated periodically to meet the 
changing needs of parents and the school.
    Section 119(3) amends section 1118(e) of the act 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 shall 
provide assistance to parents of children served by the school 
or local educational agency, as appropriate, in understanding 
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 asinformation on how 
parents can participate in decisions relating to the education 
of their children. This section also states that each school 
and local educational agency shall provide materials and 
training using technology, as appropriate, to foster parental 
involvement. This section also eliminates paragraph 1118(e)(15) 
and establishes a new paragraph 1118(e)(15) to allow each 
school and local educational agency, should they choose to do 
so, to establish a school district wide parent advisory council 
to advise the school and local educational agency on all 
matters related to parental involvement in programs supported 
under this section. This section also provides a new provision 
requiring that schools and local educational agencies provide 
reasonable support for parental involvement activities under 
this section that parents may request, including emerging 
technologies.
    Section 119(4) amends section 1118(f) of the act to make 
technical amendments regarding the provision of services to the 
parents of migratory children and parents with disabilities.
    Section 119(5) amends section 1118(g) of the act to specify 
that, in a State where a parental information and resource 
center is established, such a center shall provide parents with 
a description of the services and programs provided by the 
center. This section also provides for the State education 
agency to review the local educational agency's parental 
involvement policies and practices to determine if the 
requirements of this section are met.
    Section 120--Professional Development. Section 120 amends 
section 1119(b) of the act to establish that professional 
development activities shall provide support to teachers, 
principals, administrators, paraprofessionals, pupil services 
personnel, and parents. Professional development activities 
shall advance teacher understanding of effective instructional 
strategies, based on research for improving student 
achievement, at a minimum in reading or language arts and 
mathematics. Professional development initiatives shall also be 
of sufficient intensity and duration to have a positive and 
lasting impact. This section also refers to providing training 
for teachers in the use of technology, evaluating the impact of 
professional development initiatives and includes strategies 
for identifying and eliminating racial and gender bias in 
instructional materials and practices.
    Section 120A--Participation Of Children Enrolled In Private 
Schools. Section 120A(1) amends section 1120(a) of the act in 
general terms and makes technical amendments to current law. 
Section 120A(2) amends section 1120(b) of the act to specify 
that local educational agencies shall consult private school 
officials during the design of the agency's programs in regard 
to how the services will be assessed and how the results of 
that assessment will be used to improve the agency's programs. 
The act is also amended to specify that the local educational 
agency shall make decisions about the delivery of services to 
eligible private school children, including an analysis of the 
views of private school officials regarding the delivery of 
services through potential third party providers. If the local 
educational agency disagrees with the views of the private 
school officials on the delivery of services, the local 
educational agency will provide a written document, to private 
school officials, with the reasons why the local educational 
agency has chosen not to provide the services. Each local 
educational agency will provide to the State educational agency 
a written affirmation that the consultation has occurred. If a 
private school declines to have eligible children in the 
private school participate in title I, part A services, the 
local educational agency is not required to further consult 
with the private school officials. Each year, the local 
educational agency shall inform the private school of the 
opportunity for eligible children to participate in title I, 
part A services. A private school official shall have the right 
to appeal the local educational agency decision to the State 
educational agency as to whether: the consultation was 
meaningful; timely; and the views were given due consideration.
    Section 120A(3) amends section 1120 of the act to 
redesignate subsections (c), (d), and (e) as subsections (d), 
(e) and (f), respectively.
    Section 120A(4) amends section 1120 of the act to add a 
provision to describe the allocation for equitable services to 
private school students.
    Section 120A(b) establishes an effective date of September 
30, 2003, for the amendment made by subsection (a)(4) dealing 
with the allocation for equitable services to private school 
students.
    Section 120A(c) amends section 1120A(a) of the act with a 
technical amendment.
    Section 120B--Early Childhood Education. Section 120B(1) 
amends the heading of Section 1120B.
    Section 120B(2) amends section 1120B to make technical 
changes to the act.
    Section 120B(3) amends section 1120B to add 2 new 
subsections, (d) and (e), to permit a local educational agency, 
if the local educational agency chooses to do so, to use part A 
of title I funds to provide preschool services. New subsection 
1120B(e) establishes that early childhood education programs 
that use part A of title I funds may do so jointly with Even 
Start programs under part B of title I, Head Start programs or 
State-funded preschool programs. Early childhood education 
programs shall: focus on the developmental needs of children; 
teach children to understand and use language; enable children 
to develop an appreciation of books; and, for children with 
limited English proficiency, enable the children to make 
progress toward acquisition of the English language.
    Section 120C--Allocations. Section 120C amends subpart 2 of 
part A of title I to read as follows:
            Subpart 2--Allocations
    Section 1121--Grants for the Outlying Areas and the 
Secretary of the Interior. Section1121(a) specifies the 
reservation of funds.
    Section 1121(b) authorizes grants to the outlying areas in 
accordance with the Compacts of Free Association.
    Section 1121(c) specifies the allotment that is reserved 
for the Secretary of the Interior to meet the educational needs 
of Indian children.
    Section 1122--Amounts for Basic Grants, Concentration 
Grants, and Targeted Grants. Section 1122(a) establishes the 
level of the appropriation of funds for the Basic, 
Concentration and Targeted Grant programs under part A of title 
I for fiscal years 2002 through 2008. The section specifies 
that funds for part A of title I shall be allocated in such a 
way that the Basic and Concentration Grant programs shall 
receive an amount equal to the amount received in fiscal year 
2001 before funding is allocated to the Targeted Grant Program. 
Funding that is appropriated in excess of the fiscal year 2001 
level shall be allocated to the Targeted Grant Program. In the 
event that funding for part A of title I is reduced in any 
fiscal year, funds shall first be reduced from the Targeted 
Grant Program. If additional reductions are necessitated, 
funding shall then be taken from the Concentration Grant 
program.
    Section 1122(b) describes the adjustments to the 
allocations where necessitated by the appropriations process. 
The ratable reduction rule is utilized to determine the 
relative size of each State's allocation when full funding is 
not available.
    Section 1122(c) establishes the hold harmless provisions 
that determine the amount of title I funding that a local 
education agency may receive as a result of changes in absolute 
and relative population and poverty. If the proportion of 
children counted is above 30 percent of the children served by 
the local education agency, it will receive not less than 95 
percent of the amount it received in the previous year. If the 
proportion of children counted is between 15 percent and 30 
percent of the children served by the local education agency, 
it will receive not less than 90 percent of the amount it 
received in the previous year. If the proportion of children 
counted falls below 15 percent of the children served by the 
local education agency, it will receive not less than 85 
percent of the amount it received in the previous year. The 
section is amended to eliminate the ``cliff'' phenomenon 
whereby a local education agency that loses eligibility during 
one year as a result of a change in population or poverty loses 
all of its funds. A local education agency that received 
funding in the prior year is eligible to continue to receive 
funding in accordance with the hold harmless provisions. A 
local education agency that loses eligibility for 5 consecutive 
years may not continue receive funding.
    Section 1122(d) describes ratable reductions.
    Section 1123--Definitions. Section 1123 defines ``Freely 
associated States'', ``outlying areas'', and ``State'' for the 
purposes of distributing the allocations.
    Section 1124--Basic Grants to Local Educational Agencies. 
Section 1124(a) specifies the amounts of the local educational 
agencies basic grants. This section also describes and 
simplifies the formula by which grants are calculated. Section 
1124(a) outlines the allocations to large and small local 
educational agencies. In addition, this section establishes the 
formula for Puerto Rico.
    Section 1124(a)(3) provides authority to calculate grants 
on the basis of county data in the event that the Department of 
Census fails to provide local education agency specific data.
    Section 1124(b) specifies the minimum number of children a 
local educational agency must have to qualify for a basic 
grant.
    Section 1124(c) describes the categories that are used for 
counting the number of children for basic grants.
    Section 1124(d) establishes the State minimum for basic 
grants.
    Section 1124A--Concentration Grants to Local Educational 
Agencies.
    Section 1124A(a) specifies the eligibility requirements and 
amount of grants.
    Section 1124A(2) is amended to simplify the reference to 
the basic grant expenditure factor.
    Section 1124A(4) is amended to eliminate reference to the 
county suballocation formula in effect for fiscal years 1996-
98. Authority for the States to allocate funding on the basis 
of county data is retained for any year in which the Secretary 
relies upon county data in lieu of local education agency data. 
The section retains authority for a State to reserve 2 percent 
of its allocations (when county data is utilized) to make 
grants to eligible local educational agencies that reside in 
ineligible counties.
    Section 1124A(b) establishes the ratable reduction rule 
utilized for making allocations when full funding is not 
available.
    Section 1124A(c) is amended to allow a state that receives 
0.25 percent or less of the available funds, but does not 
receive a grant in accordance with the formula used to 
determine the small grant minimum, to allocate these funds to 
local education agencies in accordance with the same rules 
applied to allocation by states that receive a grant in 
accordance with the small grant minimum.
    Section 1125--Targeted Grants to Local Educational 
Agencies. Section 1125(a) specifies the eligibility 
requirements for local educational agencies.
    Section 1125(b) establishes the amount of grants for local 
educational agencies, the District of Columbia, and Puerto 
Rico.
    Section 1125(c) updates the weights for allocations to 
counties and the weights for allocations to local educational 
agencies to increase the targeting of the program.
    Section 1125(d) describes how targeted grants are 
calculated.
    Section 1125(e) establishes a .5 percent state minimum 
grant.
    Section 1125A--Education Finance Incentive Program. Section 
1125A(a) authorizes the Secretary to make grants to States.
    Section 1125A(b) specifies the distribution of funds for 
this subsection which is based upon fiscal effort and equity.
    Section 1125A(c) describes how funds awarded under this 
subsection will be utilized.
    Section 1125(d) establishes maintenance of effort.
    Section 1125(e) authorizes $200 million for fiscal year 
2002 and such sums for each of the 6 succeeding years.
    Section 1126--Special Allocation Procedures. Section 
1126(a) specifies the allocations for neglected children.
    Section 1126(b) describes allocations for local educational 
agencies that have special circumstances.
    Section 1126(c) specifies the reallocation process.
    Section 1127--Carryover and Waiver. Section 1127(a) 
specifies the limitation on carryover funds.
    Section 1127(b) establishes waiver authority for a State 
educational agency.
    Section 1127(c) specifies that the limitation on carryover 
funds does not apply to any local educational agency that 
receives less than $50,000 under subpart 2.

Part B--Literacy for Children and Families

    Section 121--Reading First. Section 121 amends part--of 
title I by renaming the part as ``Part B--Literacy for Children 
and Families'' and by creating a subpart 1 entitled ``Subpart 
1--William F. Goodling Even Start Family Literacy Programs''.
    Section 121 also makes conforming amendments to subpart 1 
and adds a new subpart 2 (``Subpart 2--Reading First'') as 
follows:
            Subpart 2--Reading First
    New Section 1221. Purposes. This section contains 5 
purposes for this new program. The purposes relate to helping 
all children learn to read well by the end of third grade.
    New Section 1222. Formula Grants to States; Competitive 
Subgrants to Local Agencies. The Secretary will make grants to 
State educational agencies that have applications approved 
under this subpart. Of the total amount appropriated for this 
subpart, 75 percent shall be distributed to the States with 
approved applications using the formula in section 1124 of 
title I, part A. The State educational agency must distribute 
at least 80 percent of these funds to local educational 
agencies through a competitive process.
    To be eligible to receive funds under this subpart, a local 
educational agency must have a high percentage of students 
reading below grade level and demonstrate 1 other indicator of 
need. Local educational agencies must use similar criteria to 
target funds to schools within their jurisdictions.
    A local educational agency that receives funds under this 
subpart shall use funds for the uses defined in this section. 
Among these uses of funds are: utilizing diagnostic 
assessments; purchasing or developing materials; assisting 
parents to help support their children's reading development; 
and professional development. All materials, instructional 
approaches, and professional development must be derived from 
scientifically based reading research, a term that is defined 
in section 1228. A local educational agency can use up to 5 
percent of its funds for planning and administration.
    The State educational agency may expend up to 20 percent of 
its formula grant funds on professional development, technical 
assistance, planning, and administration. No more than 15 
percent of State funds may be used to develop and implement a 
professional development program for teachers of grades 
kindergarten through 3. No more than 5 percent of the funds may 
be used for technical assistance, and no more than 5 percent 
may be used for planning and administration.
    New Section 1223. Competitive Grants to States; Competitive 
Subgrants to Local Agencies. From the funds not used under 
section 1222 (the remaining 25 percent), the Secretary may 
award to a State educational agency a competitive grant based 
on an application submitted in accordance with section 1224. 
The Secretary shall award competitive grants on the basis of a 
State's performance as described in this section. Any State 
educational agency receiving a competitive grant must expend 
100 percent of these funds on competitive subgrants to local 
educational agencies.
    The section describes how a local educational agency must 
apply to the State educational agency for funds available under 
this section. The criteria for receiving such funds are 
primarily tied to performance in increasing the reading skills 
of children in grades kindergarten to 3. The local uses of 
funds under the formula grant section and the competitive grant 
section are the same.
    New Section 1224. State Applications. This section 
describes the required contents of an application for funds 
authorized under this subpart. The State educational agency 
must submit its application to the Secretary. The Secretary 
must convene a review panel to evaluate the applications and 
make recommendations to the Secretary with regards to whether 
they meet the requirements of the subpart. The application 
requirements and the peer review process are similar to the 
provisions of the Reading Excellence Act, which this new 
subpart replaces.
    In order for the State to receive a grant under the 
subpart, the Governor of the State, in consultation with the 
State educational agency, shall establish a reading and 
literacy partnership. This section details the required 
membership of the partnership and its duties.
    New Section 1225. Reservations from Appropriations. The 
Secretary may reserve up to 1 percent of the funds appropriated 
for this subpart to carry out section 1226 (national 
activities) and shall reserve $5 million to carry out section 
1227 (dissemination of information).
    New Section 1226. National Activities. With funds reserved 
for this section, the Secretary shall carry out an evaluation 
of programs under this subpart and may provide technical 
assistance to States, local educational agencies, and schools 
requesting such assistance.
    New Section 1227. Information Dissemination. From the funds 
reserved for this section, the National Institute for Literacy, 
in collaboration with the Departments of Education and Health 
and Human Services, including the National Institute for Child 
Health and Human Development, shall disseminate information 
about scientifically based reading research and about effective 
programs carried out under this subpart, and shall support the 
continued identification of high quality reading research.
    New Section 1228. Definitions. This section contains the 
definitions of a number of terms that are used in this subpart, 
including ``eligible professional development provider,'' 
``instructional staff,'' ``major components of reading 
instruction,'' ``reading,'' ``rigorous diagnostic reading 
assessment,'' and ``scientifically based reading research''. 
Several of these definitions are identical to the definitions 
contained in the Reading Excellence Act.
    Section 122. Early Reading Initiative. Section 122 adds a 
new subpart 3 (``Subpart 3--Early Reading First'' to part B of 
title I, as follows:
            Subpart 3--Early Reading First
    New Section 1241. Purposes. This section contains 4 
purposes for this subpart. They primarily relate to providing 
preschool age children the knowledge and skills necessary to 
take advantage of reading instruction once they enter 
kindergarten.
    New Section 1242. Local Early Reading First Grants. From 
the funds appropriated for this subpart, the Secretary will 
make 4-year grants to eligible applicants. Such grants will be 
awarded on the basis of a competitive process established by 
the Secretary.
    The section defines an eligible applicant to be a local 
educational agency that is eligible under the provisions of 
subpart 2, 1 or more public or private organizations that serve 
preschool age (ages 3-5) children, or a combination of such 
agencies and organizations. The section contains a list of 
topics that must be addressed in an application by an eligible 
entity to the Secretary. The Secretary shall award grants on 
the basis of the quality of the applications utilizing a peer 
review process.
    New Section 1243. Federal Administration. The Secretary of 
Education shall consult with the Secretary of Health and Human 
Services in carrying out this subpart.
    New Section 1244. Information Dissemination. The National 
Institute for Literacy shall disseminate information regarding 
effective projects under this subpart.
    New Section 1245. Reporting Requirements. Each applicant 
receiving a grant shall report annually to the Secretary on 
their progress in addressing the purposes of this subpart.
    New Section 1246. Evaluations. The Secretary shall reserve 
not more than $5 million from the funding available for this 
subpart from fiscal years 2002-08 to conduct an independent 
evaluation of the effectiveness of this subpart.
    New Section 1247. Additional research. This section 
requires the Secretary to reserve $3 million from the 
appropriations available for this subpart for each of the 
fiscal years 2002-06 to conduct additional research on language 
and literacy development in preschool age children.

Part C--Education of migratory children

    Section 131--Program Purpose. Section 131 amends section 
1301 of the act to make technical amendments to add 2 new 
purposes. The new purposes ensure that: migratory children who 
move among the States are not penalized in any manner by 
disparities among the States in curriculum, graduation 
requirements, and State student performance and content 
standards and that migratory children receive full and 
appropriate opportunities to meet the same challenging State 
standards that all children are expected to meet.
    Section 132--State Application. Section 132 amends section 
1304 of the act to require new information for the State 
application. This information includes a description of 
jointplanning efforts with respect to local, State, and Federal 
programs and bilingual programs under part A of title III. In 
addition, States will also be required to consult with parent 
advisory councils for the purposes of planning and operating 
programs.
    Section 133--Comprehensive Plan. Section 133 makes 
technical amendments to section 1306 of the act.
    Section 134--Coordination. Section 134(1) amends section 
1308(b) of the act to establish an information system for 
electronically exchanging, among the States, health and 
educational information regarding all students served under 
this program.
    Section 134(2) amends section 1308(c) to authorize $10 
million to carry out this section.
    Section 134(3) amends section 1308(d)(1) to authorize $3 
million to carry out incentive grants as described under 
current law.
    Section 134(4) amends section 1308(e) to require the 
Secretary to direct the National Center for Education 
Statistics to collect data on migratory children.

Part D--Initiatives for Neglected, Delinquent, or At Risk Youth

    Section 141 of the bill amends part D, ``Initiatives for 
Neglected, Delinquent, or At Risk Students,'' to read as 
follows:
            Subpart 1--Prevention and intervention programs for 
                    children and youth who are neglected, delinquent, 
                    or at risk of dropping out
    Section 1401--Purpose; Program Authorized. This section 
repeals the congressional findings currently in the act and 
states the purpose of subpart 1, which is to improve 
educational services in local and State institutions for 
neglected or delinquent children so that they have the 
opportunity to meet the same challenging State content and 
student performance standards that all children in the State 
are expected to meet; to provide such children with the 
services needed to make a successful transition from 
institutionalization to further schooling or employment; and to 
prevent at-risk youth from dropping out of school and to 
provide dropouts and youth returning from institutions with a 
support system to ensure their continued education.
    Section 1401(b) requires the Secretary to provide grants to 
State educational agencies so that they can award subgrants to 
State agencies and local educational agencies to establish or 
improve programs of education for neglected or delinquent 
children at risk of dropping out of school before graduation.
    Section 1402--Payments for Programs Under this Subpart. 
This section authorizes the Secretary to allocate to each State 
educational agency amounts necessary to make subgrants to State 
agencies under chapter 1. Each State is required to retain 
funds generated throughout the State under title I, part A 
based on youth residing in local correctional facilities, or 
attending community day programs for delinquent children.

Chapter 1--State agency programs

    Section 1411--Eligibility. This section states that a State 
agency may be eligible for assistance under chapter 1 if the 
State agency is responsible for providing free public education 
for children: in institutions for neglected or delinquent 
children; attending community day programs for neglected or 
delinquent children; or in adult correctional institutions.
    Section 1412--Allocation of Funds. This section establishes 
the criteria by which a State agency, including those in Puerto 
Rico, may be eligible to receive a subgrant under chapter 1. 
The Secretary is allowed to ratably reduce subgrants if the 
amount appropriated is insufficient to pay the full amount for 
which State agencies are eligible.
    Section 1413--State Reallocation of Funds. This section 
allows State educational agencies to reallocate unneeded funds 
from one State agency to another in need of additional funds.
    Section 1414--State Plan and State Agency Applications. 
This section requires each State educational agency seeking a 
grant under chapter 1 to submit for approval of the Secretary, 
a plan for meeting the needs of neglected and delinquent 
children at risk of dropping out of school. The Secretary is 
required to approve each State plan meeting the criteria 
detailed in this section. Each State agency seeking funds to 
carry out a program must submit an application with specific 
guidelines to the State educational agencies.
    Section 1415--Use of Funds. This section states that funds 
under chapter 1 shall only be used by State agencies for 
programs and projects that are consistent with the State plan 
under section 1414(a) and concentrate on providing participants 
with the knowledge and skills needed to make a successful 
transition to secondary school completion, further education, 
or employment. The number of hours of instruction students 
receive from State and local sources under chapter 1 programs 
shall supplement and not supplant the requirements of section 
1120A.
    Section 1416--Institution-Wide Projects. This section 
allows State agencies that provide education to neglected or 
delinquent children to use funds received under part D to 
upgrade the educational effort of the institutions or programs 
these children are educated in, if the State agency has 
developed and approved a plan for that institution or program. 
This section establishes specific guidelines for the plan.
    Section 1417--Three-Year Programs or Projects. This section 
authorizes State educational agencies to approve State agencies 
applications for subgrants if the State agency finds it likely 
that a child will participate in a program for more than 1 
year. An application maynot be approved for a period exceeding 
3 years.
    Section 1418--Transition Services. This section authorizes 
State agencies to reserve 10 percent of the funds received 
under chapter 1 to support projects that facilitate the 
transition of children from State-operated institutions to 
local educational agencies. Projects are to be conducted either 
by the State agency or through a contract with 1 or more local 
educational agencies, public agencies, or private non-profit 
organizations. Reserved funds shall be used only to provide 
transitional educational services, which may include pupil 
services and mentoring, to neglected and delinquent children in 
schools other than State-operated institutions.

Chapter 2--Local agency programs

    Section 1421--Purpose. This section states the purpose of 
chapter 2, which is to support the operation of local 
educational agency programs that involve collaboration with 
locally operated correctional facilities to: (1) carry out high 
quality education programs to prepare youth for secondary 
school completion, training and employment, or further 
education; (2) provide activities to facilitate the transition 
of such youth from the correctional program to further 
education or employment; and (3) operate dropout prevention 
programs in local schools for youth at risk of dropping out of 
school and youth returning from correctional facilities.
    Section 1422--Programs Operated by Local Educational 
Agencies. This section authorizes State educational agencies to 
award subgrants to local educational agencies with high numbers 
or percentages of youth residing in locally operated youth 
correctional facilities. In addition, 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 reside outside 
of the local educational agency boundaries upon leaving the 
facility. State educational agencies are required to notify 
local educational agencies of subgrants.
    Section 1423--Local Educational Agency Applications. This 
section provides detailed criteria for applications to be 
completed by those local educational agencies seeking 
assistance from State educational agencies under chapter 2.
    Section 1424--Uses of Funds. This section requires that 
funds provided to local educational agencies under chapter 2 be 
used for dropout prevention programs which serve youth at 
educational risk; the coordination of health and social 
services for such individuals if there is a likelihood that the 
services will enable them to complete their education; and 
programs to meet the unique education needs of youth at risk of 
dropping out of school.
    Section 1425--Program Requirements for Correctional 
Facilities Receiving Funds Under this Section. This section 
requires correctional facilities that have agreements with 
local educational agencies to: ensure educational programs in 
juvenile facilities are coordinated with the student's home 
school; notify local schools if a youth is identified in need 
of special education services; provide transition assistance to 
help youth stay in school; provide support programs to 
encourage youth who have dropped out to re-enter school; work 
to ensure facilities are staffed with teachers and other 
qualified staff who are trained to work with children with 
disabilities; ensure educational programs in correctional 
facilities are related to assisting students to meet high 
educational standards; use technology to assist in coordinating 
educational programs between the juvenile facility and the 
community school; involve parents in efforts to improve the 
educational achievement of their children; coordinate funds 
received under this program with other local, State, and 
Federal funds available to provide services to participating 
youth; and work with local businesses to develop training and 
mentoring programs for participating youth.
    Section 1426--Accountability. This section authorizes a 
State educational agency to reduce or terminate funding for 
projects if a local educational agency does not reduce dropout 
rates or require juvenile facilities to demonstrate that there 
has been an increase in the number of youth returning to school 
or pursuing post-secondary opportunities.

Chapter 3--General provisions

    Section 1431--Program Evaluations. This section requires 
State agencies and local educational agencies that conduct 
programs under chapters 1 and 2 to evaluate the programs. The 
results of the evaluations should be submitted to the State 
educational agencies in order to improve subsequent programs.
    Section 1432--Definitions. This section provides the 
meanings of certain terms used in subpart 1, including ``adult 
correctional institution,'' ``at-risk youth,'' ``community day 
program,'' and ``institution for neglected or delinquent 
children and youth.''
    Section 151--21st Century Learnings Centers; Comprehensive 
School Reform. This section amends of title I by redesignating 
part F as part H; sections 1601 through 1604 as sections 1901 
through 1904, respectively; and by inserting 2 new parts to 
follow part E of title I, including: Part F (21st Century 
Community Learning Centers) and Part G (Comprehensive School 
Reform).

Part F--21st Century Community Learning Centers

    Section 1601--Short Title. This section specifies that this 
part may be cited as the ``21st Century Community Learning 
Centers Act.''
    Section 1602--Purpose. This section repeals the 
congressional findings currently in the act and inserts the 
purpose of part A, which is to provide local public schools, 
primarily in rural or inner-city communities, to collaborate 
with public and nonprofit agencies and organizations, local 
businesses, and educational institutions to offer a broad 
selection of services that address the needs of the community 
and to offer extended learning opportunities for children, 
youth, and adults in the community.
    Section 1603--Program Authorization. This section 
authorizes the Secretary to award grants to local educational 
agencies and units of general purpose local government on 
behalf of rural and inner-city public elementary or secondary 
schools to plan, implement, or expand projects that benefit the 
educational, health, social service, cultural, and recreational 
needs of a rural or inner-city community. The Secretary is 
required to ensure an equitable distribution of assistance 
among the States, among urban and rural areas of the United 
States, and among rural and urban areas of a State. The time 
period for the distribution of grants may not exceed 3 years, 
and the Secretary may not award grants in an amount less than 
$50,000.
    Section 1604--Eligibility of Certain Organizations and 
Entities. This section authorizes the Secretary to award grants 
to community-based organizations and public or private entities 
that have experience in providing before- and after-school 
services, on the same basis as local educational agencies. In 
addition to giving priority to projects that offer a broad 
selection of services which address the needs of the community, 
the Secretary is to give priority to projects with academic 
enrichment components which are submitted jointly by community-
based organizations/public or private entities and rural and 
inner-city public elementary or secondary schools. The 
Secretary may waive, for the applicants described in this 
section, the requirement that a project be carried out through 
or in a school if the Secretary determines that such a 
requirement would undermine the effectiveness of the project or 
limit its accessibility to children and families.
    Section 1605--Application Required. This section requires a 
local educational agency or unit of general purpose local 
government seeking a grant to submit an application with 
specific criteria. The Secretary shall give priority to 
applications describing projects that offer a broad selection 
of services which address the needs of the community.
    Section 1606--Uses of Funds. This section specifies that 
grant funds shall be used to plan, implement, or expand 
community learning centers which include not less than 4 of the 
following activities: literacy education programs; senior 
citizen programs; children's day care services; integrated 
education, health, social service, recreational or cultural 
programs; summer and weekend school programs; expanded library 
service hours; telecommunications and technology education 
programs; services for individuals who leave school before 
graduating from secondary school; services for individuals with 
disabilities; and academic enrichment activities.
    Section 1607--Definitions. This section provides the 
meaning of the terms ``community learning center'' and ``unit 
of general purpose local government'' for the purposes of this 
part.

Part G--Comprehensive school reform

    New Section 1701--Purpose. This section states the purpose 
of this part which is to provide financial incentives for 
schools to develop comprehensive school reforms based upon 
effective practices and research-based programs that emphasize 
basic academics and parental involvement so that all children 
can meet State content and student performance standards.
    New Section 1702--Program Authorization. This section 
authorizes the Secretary to award grants to State educational 
agencies, by formula to enable them to provide subgrants to 
local educational agencies to carry out the purpose of this 
part.
    New Section 1703--State Applications. This section requires 
State educational agencies seeking a grant to submit an 
application to the Secretary, describing such items as: process 
and selection criteria; how the State educational agency will 
ensure that reforms are research-based programs; how the State 
educational agency will evaluate the implementation of reforms 
and link the reforms to student achievement; and how the State 
educational agency will make available technical assistance to 
the local educational agencies or consortia.
    New Section 1704--State Use of Funds. This section requires 
State educational agencies receiving grants to award 
competitive subgrants to local educational agencies. The 
subgrants must be of sufficient size and scope to support the 
initial costs for the plan selected or designed, in an amount 
of at least $50,000, and renewable for 2 additional one-year 
periods. The State educational agency must give priority 
consideration to local educational agencies that plan to use 
the funds for schools identified as being in need of 
improvement or corrective action and demonstrate a commitment 
to assist schools with budget, professional development, and 
other strategies to ensure reforms are properly implemented and 
sustained. The State educational agency shall distribute 
subgrants equitably to different geographic regions within the 
State, including urban and rural areas. State educational 
agencies may not reserve more than 5 percent of the grant funds 
for administrative, evaluation, and technical assistance 
expenses.
    New Section 1705--Local Applications. This section requires 
local educational agencies or consortia seeking subgrants under 
this part to submit an application to the State educational 
agencies for consideration.
    New Section 1706--Local Use of Funds. This section requires 
local educational agencies or consortia receiving a subgrant to 
provide funds to schools eligible for assistance under part A 
to support a variety of reform activities.
    New Section 1707--National Evaluation and Reports. This 
section requires the Secretary to develop a plan for a national 
evaluation of the programs assisted under this part. The 
evaluation shall examine the implementation and results 
achieved by schools after 3 years of implementing school 
reforms and the effectiveness of reforms in schools with 
diverse characteristics.

Part H--School dropout prevention

    New Section 1801--Short Title. This section specifies that 
Part H may be cited as the ``Dropout Prevention Act.''
    New Section 1802--Purpose. This section states the purpose 
of this part, which is to provide school dropout prevention and 
to raise academic achievement levels.
            Subpart 1--Coordinated national strategy
    New Section 1811--National Activities. This section 
authorizes the Secretary to: (1) collect data regarding 
participation in Federal dropout prevention and school reentry 
programs; (2) establish an interagency working group to address 
dropout prevention and school reentry issues; and (3) create a 
national recognition program awarding monetary awards to 
schools that have made extraordinary progress in lowering 
dropout rates. The Secretary may award not more than 5 
contracts for not more than 5 years each to non-Federal 
entities to conduct an initiative to increase the types of 
proven strategies for dropout prevention. The Secretary may 
provide appropriate support to eligible entities, which are 
defined as those that were providing dropout support to more 
than 100 schools and published a specific program before the 
enactment of the Dropout Prevention Act.
            Subpart 2--National school dropout prevention initiative
    New Section 1821--Program Authorized. New Section 1821(a) 
states that funds under this part will be allocated to States 
based on the title I formula if funds appropriated equal or 
exceed $250 million, but competitively if funds appropriated 
are less than $250 million.
    New Section 1821(b) authorizes funds provided to States 
under this subpart be used by State educational agencies to 
award grants to public middle or secondary schools that have 
dropout rates that are in the highest of all dropout rates in 
the State for the purpose of supporting dropout prevention 
programs.
    New Section 1821(c) specifies that first-year grants to 
schools shall be awarded based on school size, cost of 
strategies, and local cost factors, with grant amounts 
decreasing during each year of participation in the program. 
Schools which create smaller learning communities are eligible 
for a 10 percent increase in the amount of their grant.
    New Section 1821(d) states that grants under this subpart 
may be awarded for a duration of 3 years, plus an additional 2 
years if significant progress is made in reducing the dropout 
rate.
    New Section 1822--Strategies and Capacity Building. This 
section requires schools receiving grants under this subpart to 
use grant funds for research-based, sustainable, and widely 
replicated strategies for dropout prevention and school reentry 
programs serving the entire school population. This section 
specifies strategies for targeted purposes and comprehensive 
reform approaches.
    New Section 1823--Selection of Schools. New Section 1823(a) 
requires schools seeking a grant under this subpart to submit 
an application, containing specific information, to the State 
educational agency.
    New Section 1823(b) requires State educational agencies to 
review applications and award grants to schools after a review 
by a panel of experts on school dropout prevention.
    New Section 1823(c) specifies that to be eligible to 
receive a grant under this subpart, schools must be public 
schools that serve at least 50 percent of students who are low-
income or participate in a school-wide program.
    New Section 1823(d) specifies that a school receiving a 
grant under this subpart may use the funds to secure services 
from a community-based organization if the school approves the 
use, the funds are used for dropout prevention, and the 
organization has demonstrated an ability to provide effective 
services.
    New Section 1823(e) specifies that activities under this 
subpart must be coordinated with other Federal programs.
    New Section 1824--Dissemination Activities. This section 
requires schools receiving a grant under this subpart to 
provide information and technical assistance to other schools 
within the school district.
    New Section 1825--Progress Incentives. This section states 
that local educational agencies shall use funding under this 
title to provide assistance to schools that have not made 
progress toward lowering school dropout rates after receiving 
assistance under this subpart for 2 fiscal years.
    New Section 1826--School Dropout Rate Calculation. This 
section specifies that in order to calculate a school dropout 
rate, schools shall use: (1) ``the annual event school dropout 
rate for students leaving a school in a single year determined 
in accordance with the National Center for Education 
Statistics' Common Core of Data,'' or (2) a standard method 
determined by the State educational agency.
    New Section 1827--Reporting and Accountability. This 
section requires schools receiving funding under this subpart 
to provide, on an annual basis, a report to the Secretary and 
to the State regarding the status of the implementation of 
activities funded under this subpart. The Secretary shall 
evaluate the effectiveness of the activities assisted under 
this subpart.
    New Section 1828--State Responsibilities. New Section 
1828(a) requires State educational agencies to report to the 
Secretary, 1 year after the enactment of the Dropout Prevention 
Act, all school district and school data regarding school 
dropout rates.
    New Section 1828(b) requires State educational agencies 
receiving funds under this part to develop and implement 
education funding formula policies for public schools that 
provide appropriate incentives to retain students in school.
    New Section 1828(c) requires State educational agencies 
receiving funds under this part to develop uniform, long-term 
suspension and expulsion policies for serious infractions 
resulting in more than 10 days of exclusion from school.
    New Section 1828(d) requires the Secretary to issue 
regulations implementing the provisions of this section.
            Subpart 3--Definitions; authorization of appropriations
    New Section 1831--Definitions. This section provides the 
meanings of certain terms used in this part, including: ``low-
income'' and ``school dropout.''

Part F--Education for Homeless Children and Youth

    Part F of the bill amends the Education for Homeless 
Children and Youth authorized as Subtitle B of Title VII of the 
Stewart D. McKinney Homeless Assistance Act (referred to below 
as ``the act''.)
    Section 161--Statement of Policy. Section 161 of the bill 
amends section 721 of the act to state that homelessness alone 
is not sufficient reason to separate students from the 
mainstream school environment.
    Section 162--Grants for State and Local Activities. Section 
162(1) of the bill amends section 722(c) of the act to 
eliminate Palau as part of those receiving reserved funds and 
to drop the reference to Palau in the definitions.
    Section 162(2) amends section 722(e) of the act to add a 
new paragraph (3) to prohibit the segregation of homeless 
students. A State is required to provide a free public 
education to a homeless child or youth, and it may not 
segregate such child or youth, either in separate school, or in 
a separate program within a school, based on such child or 
youth's status as homeless, except as provided in cases of 
health or safety emergency or to provide special or 
supplementary services to those children.
    Section 162(3) amends section 722(f) of the act, which 
deals with the functions of the Coordinator of Education of 
Homeless Children and Youth in each State, to: (1) strike the 
provision that the coordinator estimate the number of homeless 
children in the state, and/or the number of youth served under 
this subtitle; (2) permit the Secretary to set reporting dates 
for the collection and transmittal of data the coordinator 
gathers; (3) clarify the coordination of services provisions, 
emphasizing not only ``coordination'' but also 
``collaboration'' of services; (4) add local educational agency 
liaisons for homeless children and youth and community 
organizations representing such children and their families 
among those in the coordination/collaboration effort; and (5) 
provide technical assistance to local educational agencies to 
ensure compliance with the prohibition on the segregation of 
homeless students.
    Section 162(4)(A) amends section 722(g)(1) of the act, 
which deals with State plans, to strengthen assurances that 
homeless children will not be isolated or stigmatized and to 
provide that local educational agencies serving homeless 
children and youth designate an appropriate staff person (who 
may also be in charge of administering other Federal programs) 
to serve as liaison for homeless children and youth and post 
public notice of the educational rights of such children and 
youth in locations such as family shelters, and soup kitchens.
    Section 162(4)(B) amends section 722(g)(3) of the act, 
which deals with local educational agency requirements, to 
expand provisions related to school of origin and to provide 
for prompt enrollment. A child who becomes homeless is to be 
served in the school of origin for the duration of the child's 
homelessness, rather than for the remainder of the academic 
year. A child who becomes permanently housed is to be served in 
the school of origin for the remainder of the school year. (The 
current option of enrolling the child in the attendance area 
where he or she is actually living is retained.) To the extent 
feasible, a local educational agency must keep a student in the 
school of origin except when that is contrary to the wishes of 
the parent or guardian or, in the case of an unaccompanied 
youth, the youth. The bill includes a new requirement that a 
written explanation be provided to the parent or guardian if 
the child is sent to a school other than the school of origin 
or the school requested by the parent or guardian. In addition, 
the bill adds a new provision stipulating that a school must 
immediately enroll homeless youth, even if they are unable to 
produce required records. The new school must also contact the 
old school for the records and refer the child to proper place 
for immunization if he or she lacks needed shots. A school must 
immediately enroll homeless youth in cases of an enrollment 
dispute, pending resolution of the dispute.
    Section 162(4)(C) amends section 722(g)(6) of the act, 
which deals with coordination of services, to consolidate 
current law provisions regarding coordination of agencies and 
programs and to add language stating the purpose of 
coordination, which is to ensure that homeless children and 
youth have access to available education and related support 
services and to raise the awareness of school personnel and 
service providers of the effects of short-term stays in a 
shelter and other challenges associated with homeless children 
and youth.
    Section 162(4)(D) amends section 722(g)(7) of the act, 
which deals with the local educational agency liaison, to add 
provisions that the liaison ensure that: (1) homeless youth 
have full and equal opportunity to succeed; (2) parents are 
informed of the education and related opportunities available 
to their children and are provided with the opportunity to 
participate in the education of their children; and (3) public 
notice of the educational rights of homeless children and youth 
is posted at places such as family shelters and soup kitchens. 
The bill also includes new provisions requiring local liaisons 
to coordinate and collaborate with statecoordinators and 
community/school personnel responsible for the education of 
homeless children and youth and to assist in the resolution of 
disputes.
    Section 163--Local Educational Agency Grants. Section 
163(1) of the bill amends section 723(a) of the act, which 
deals with the services provided by local educational agencies, 
to clarify current law provisions and to prohibit the 
segregation of homeless children and youth from the general 
education population except as is necessary for health and 
safety emergencies or to provide temporary, special, 
supplementary services.
    Section 163(2) of the bill amends section 723(b) of the 
act, which deals with local applications, to add a requirement 
that the application include an assessment of the educational 
and related needs of homeless youth (which can be undertaken as 
a part of needs assessment for other disadvantaged groups).
    Section 163(3) of the bill amends section 723(c) of the 
act, which deals with grant awards to local educational 
agencies, to provide that grants be awarded on a competitive 
basis and that grant awards be based on both need and on the 
quality of the application. Factors to be considered in 
determining quality include: (1) needs assessment and the 
likelihood the program will meet those needs; (2) the types, 
intensity, and coordination of services; (3) involvement of 
parents; (4) integration of homeless students; (5) quality of 
evaluation plans; (6) how services under this title will be 
coordinated with other services; and (7) other indicators as 
established by the State educational agency.
    Section 164--Secretarial Responsibilities. Section 164 of 
the bill amends section 724 of the act to add new provisions 
requiring the Secretary to issue guidelines regarding the 
immediate enrollment of homeless children and youth and to 
collect data regarding homeless education. In addition, the 
reporting requirement is updated, and not later than 4 years 
after enactment, the Secretary is to prepare and submit to the 
President and appropriate congressional committees a report on 
the status of education of homeless youth, which includes 
information on the actions of the Department and the 
effectiveness of programs supported under this subtitle. 
Specifically, the Secretary is to publish in the Federal 
Register, not later than 60 days after date of enactment, 
guidelines to States describing ways in which a State may 
assist local educational agencies in immediately enrolling 
homeless students and how States can review their immunization 
and medical or school records to make such revisions as 
appropriate and necessary in order to more quickly enroll 
homeless students. Under the new information provisions, the 
Secretary to periodically collect and disseminate data 
regarding the number and locale of homeless youth, the 
education and services provided, the extent to which needs are 
being met, and other data needed to carry out homeless 
education programs. The Secretary is to coordinate such 
collection and dissemination with all entities that receive and 
administer programs for the education of homeless children and 
youth.
    Section 165--Definitions. Section 165 of the bill amends 
section 725 of the act to include definitions of ``local 
educational agency'' and ``State educational agency.''
    Section 166--Authorization of Appropriations. Section 166 
of the bill amends section 726 of the act to authorize a 
funding level of $70 million for fiscal year 2002 and such sums 
as may be necessary for each of the 6 succeeding fiscal years.
    Section 167--Conforming Amendments. Section 167 of the bill 
makes conforming changes to references within the act.

                       TITLE II--TEACHER QUALITY

Part A--Teachers

    Section 201--Teacher Quality. Section 201 amends Title II 
to strike all of Part A and insert new provisions, renaming 
Title II as ``TEACHER QUALITY'' and Part A as ``TEACHERS.''

Part A--Teachers

    Provisions of the new Title II, Part A include:
    Section 2101--Purpose. Section 2101 states the purpose of 
part A is to provide grants to State and local educational 
agencies and eligible partnerships in order to increase student 
achievement and student performance through such strategies as 
improving teacher quality and increasing the number of highly 
qualified teachers in the classroom and hold local educational 
agencies and schools accountable for improvements in student 
academic achievement and student performance.
    Section 2102--Definitions. Section 2102 provides 
definitions for the terms ``all students,'' ``core academic 
subjects,'' ``highly qualified,'' ``high need local educational 
agencies,'' ``institution of higher education,'' ``out of field 
teacher,'' ``poverty line,'' and ``professional development''.
    Section 2103--Authorization of Appropriations. Section 2103 
authorizes $3 billion for fiscal year 2002 and such sums as 
necessary for the 6 succeeding fiscal years. It authorizes $100 
million for fiscal year 2002 and such sums as necessary for the 
6 succeeding fiscal years for National Programs.
            Subpart 1--Grants to States
    Section 2111--Allotments to States. Section 2111 includes 
general provisions dealing with formula grants to States, 
providing that States with applications approved by the 
Secretary will receive grants in order to make subgrants to 
local educational agencies and eligible partnerships as well as 
to carry out specified statewide activities.
    Section 2111(b) establishes allotments as follows:
          \1/2\ of 1 percent is reserved for the outlying areas 
        (United States Virgin Islands, Guam, American Samoa and 
        the Commonwealth of the Northern Mariana Islands).
          \1/2\ of 1 percent is reserved for the Secretary of 
        Interior for schools operated by the Bureau of Indian 
        Affairs.
          Provides a limitation that the amount reserved does 
        not exceed the amount received under the Eisenhower 
        program and section 306 of the Department of Education 
        Appropriations Act, 2001.
          The 50 States, the District of Columbia and the 
        Commonwealth of Puerto Rico will first receive an 
        allotment equal to the amount received in fiscal year 
        2001 from the Eisenhower program and the Class Size 
        Reduction program--subject to a ratable reduction if 
        appropriations are insufficient to meet the hold 
        harmless. Amounts above the fiscal year 2001 levels 
        will be allocated based on the number of individuals 
        age 5 through 17 in the State (50 percent) and on the 
        number of individuals areas 5 through 17 from families 
        with incomes below the poverty level (50 percent). No 
        State may receive less than \1/2\ of 1 percent of the 
        total amounts above the 2001 level.
          If a State does not apply for funds, the funding it 
        would have received will be reallotted among the 
        remaining States on the basis described above.
    Section 2112--State Applications. Section 2112 requires 
that the State educational agency submit an application to the 
Secretary at such time and in such manner as the Secretary may 
reasonably require. Each application must contain the following 
information: a description of how the activities to be carried 
out by the State educational agency will be based on a review 
of relevant research and an explanation of why the activities 
are expected to improve student performance and outcomes; a 
description of how the State educational agency will align 
activities with State content and student performance standards 
and State assessments; a description of how the State 
educational agency will use funds to improve the quality of the 
teaching force and the educational opportunities for all 
students; a description of how the State educational agency 
will coordinate professional development activities authorized 
under this part with professional development provided under 
other Federal, State and local programs; an assurance that the 
State educational agency will consistently monitor the progress 
of each local educational agency and school in the State in 
achieving the purpose of this part and meeting the performance 
objectives and measures described in section 2141. The 
Secretary shall approve a State application submitted to the 
Secretary under this section unless the Secretary makes a 
written determination within 90 days after receiving the 
application that the application does not meet the requirement 
of this Act.
    Section 2113--State Use of Funds. Section 2113 requires 
that a State receiving a grant under section 2111 shall reserve 
a portion of the funds for State activities; 95 percent for 
local educational agencies; and a portion of the funds for 
subgrants to local partnerships.
    State educational agencies shall use funds to carry out 1 
or more of the following activities: (1) reforming teacher 
certification (including recertification) or licensing 
requirements to ensure that teachers have necessary subject 
matter knowledge and teaching skills in the subject area that 
the teachers teach, that requirements are aligned with 
challenging State content standards, and that teachers have the 
subject matter knowledge and teaching skills necessary to meet 
challenging State student performance standards; (2) carrying 
out programs that provide support during the initial teaching 
experience; (3) carrying out programs that establish, expand, 
or improve alternative routes for State certification of 
teacher for highly qualified individuals with baccalaureate 
degree; (4) supporting activities to encourage and support 
teachers seeking national board certification from the National 
Board for Professional Teaching Standards or other recognized 
entities; (5) developing and implementing effective mechanisms 
to assist local educational agencies and schools in effectively 
recruiting and retaining highly qualified and effective 
teachers and principals; (6) funding projects to promote 
reciprocity of teacher certification or licensure between or 
among States; (7) testing new teachers for subject matter 
knowledge, and testing the teachers for State certification or 
licensure; (8) supporting activities that ensure teachers are 
able to use State content and student performance standards and 
assessments to improve instructional practices; (9) 
establishing teacher compensation systems based on merit; and 
(10) reforming tenure systems. A State receiving a grant must 
coordinate these activities with those funded under section 202 
of the Higher Education Act.
            Subpart 2--Subgrants to local educational agencies
    Section 2121--Allocations to Local Educational Agencies. 
States receiving grants shall make grants to eligible LEAs in 
an amount allocated based on the number of individuals age 5 
through 17 in the State (25 percent) and on the number of 
individuals areas 5 through 17 from families with incomes below 
the poverty level (75 percent).
    Section 2122--Local Application and Needs Assessment. Local 
educational agencies must submit an application to the State 
educational agency at such time and in such manner as the State 
educational agency may reasonably require. Each application 
submitted must be based on a needs assessment and shall include 
the following: A description of the activities to be carried 
out by the local educational agency; a description of how the 
activities will be based on a review of relevant research and 
an explanation of why the activities are expected to improve 
student performance and outcomes; a description of how the 
activities will have a substantial, measurable and positive 
impact on student achievement and student performance and how 
the activities will be used as part of a broader strategy to 
eliminate the achievement gap that separates low-income and 
minority students and other students; an assurance that the 
local educational agency will target funds to schools with the 
lowest proportion of highly qualified teachers; are identified 
for school improvement or are identified for school improvement 
inaccordance with other measures of school quality as 
determined and documented by the local educational agency; a 
description of how the local educational agency will coordinate 
professional development activities authorized under this 
subpart with professional development activities provided under 
other Federal, State, and local programs; a description of the 
evaluation plan the local educational agency will carry out 
pursuant to section 2141; a description of how the local 
educational agency has collaborated with teachers, 
paraprofessionals, principals and other relevant school 
personnel and parents in preparation of the application; a 
description of the results of the needs assessment; and a 
description of how the local educational agency will address 
the ongoing professional development and mentoring needs of 
teachers and administrators.
    Section 2123--Local Use of Funds. This section provides 
that a local educational agency may use the amount of funds it 
received under the class-size reduction provisions of the 
Department of Education Appropriations Act, 2001 to carry out 
the activities authorized under those provisions. A local 
educational agency must use funds to carry out 1 or more of the 
following activities: (1) providing professional development 
activities that improve the content knowledge, effective 
instructional practices, and effective use of State standards 
and assessments of teachers; (2) mentoring; (3) providing 
teachers and principals with professional development through 
institutions of higher education; (4) providing induction and 
support for beginning teachers; (5) recruiting, hiring, and 
training teachers; and (6) carrying programs and activities 
related to teacher tenure reform, merit pay, and testing of 
teachers in academic subjects that the teachers teach.
            Subpart 3--Subgrants to eligible partnerships
    Section 2131--Subgrants. This section provides that the 
State agency for higher education shall use funds to make 
competitive subgrants to eligible partnerships. Such subgrants 
are to be equitably distributed geographically within the State 
and serve all areas of the State. No single participant in a 
partnership may use more than 50 percent of the funds made 
available.
    Section 2132--Applications. This section requires eligible 
partnerships to submit applications for funding to the State 
agency for higher education.
    Section 2133--Use of Funds. This section requires that 
eligible partnerships use funds for: professional development 
activities in core academic subjects and assisting local 
educational agencies and teachers, paraprofessionals, or 
principals with sustained, high-quality professional 
development activities. An eligible partnership which receives 
a grant under this subpart and under section 203 of the Higher 
Education Act must coordinate the activities carried out under 
both grants.
    Section 2134--Definition. This section defines ``eligible 
partnership,'' which must include a private or State 
institution of higher education and the division of the 
institution that prepares teachers, a school of arts and 
sciences, and a high-need local educational agency. A 
partnership may also include another local educational agency, 
a public charter school, an elementary or secondary school, an 
educational service agency, a nonprofit educational 
organization, another institution of higher education, a school 
of arts and sciences within such an institution, the division 
of such an institution that prepares teachers, a nonprofit 
cultural organization, an entity carrying out a prekindergarten 
program, a teacher organization, or a business.
            Subpart 4--Accountability
    Section 2141--Evaluation Plan for Local Educational 
Agencies. This section provides that each local educational 
agency receiving funds under part A must develop an evaluation 
plan including performance objectives and other measures 
relating to increasing student achievement and performance for 
all students, increasing participation in sustained 
professional development and mentoring, increasing teacher 
retention among new teachers, and decreasing the use of out-of-
field teachers. The evaluation plan may also include other 
measures of student achievement and performance determined by 
the local educational agency.
    Section 2142--Sanctions for Local Educational Agencies. 
This section provides that each local educational agency 
receiving funds under part A must submit an annual report to 
the State educational agency describing progress towards 
meeting the purpose of part A and the performance objectives 
and measures. If the State educational agency determines that a 
local educational agency has failed to make substantial 
progress by the end of the third year of funding, the State 
educational agency must provide technical assistance to the 
local educational agency and, if applicable, to schools served 
by that agency in need of assistance. If the local educational 
agency fails to make substantial progress by the end of the 
fifth year of funding, the State educational agency must 
withhold the funding allocation to the local educational agency 
for 2 fiscal years and use those funds to assist the LEA to 
achieve the purpose and meet the objectives and measures.
            Subpart 5--National programs
    Section 2151--National Programs of Demonstrated 
Effectiveness. This section provides that the Secretary shall 
use funds to carry out the following national activities: (1) 
professional development for school leaders to held develop or 
enhance their leadership skills, recruitment of school leaders, 
and mentorship of new school leaders; (2) encouragement and 
support for teachers seeking advanced certification or 
credentialing through high quality programs, including programs 
provided by the National Board for Professional Teaching 
Standards; (3) support for the Troops-to-Teachers Program 
through a contract with the Defense Activity for Non-
Traditional Education Support of the Department of Defense; (4) 
support for programs to recruit, prepare, and support mid-
career professionals to become highly qualified teachers; and 
(5) support for a National Teacher Recruitment Campaign to be 
conducted by a single national coalition of teacher and media 
organizations, including the National Teacher Recruitment 
Clearinghouse. A separate authorization of $3 million is 
provided for the recruitment campaign.

Part--B Mathematics and science partnerships

    New section 2201--Purpose. This section states the purpose 
of part B, which is to improve the performance of students in 
the areas of mathematics and science by encouraging the 
participation of States, institutions of higher education, and 
elementary and secondary schools in programs that: encourage 
institutions of higher education to establish a system of 
recruiting and advising mathematics and science teachers; focus 
on career-long education for mathematics and science teachers; 
bring together mathematics and science teachers with 
scientists, mathematicians, and engineers; and develop rigorous 
curricula aligned with standards and postsecondary studies.
    New section 2202--Definitions: Eligible Partnership. This 
section defines ``eligible partnership,'' which must include a 
State educational agency, a mathematics or science department 
of an institution of higher education, and a local educational 
agency. A partnership may also include another mathematics or 
science department or a teacher training department, another 
local educational agency, an elementary or secondary school, a 
business, or a nonprofit organization. ``High need local 
educational agency'' is defined as having the meaning given the 
term in section 210(b) of the Higher Education Act of 1965. 
``Summer workshop or institute'' is defined as one which lasts 
during a minimum of 2 weeks, provides direct interaction 
between students and faculty, and provides for at least 3 days 
follow-up training in the classroom during the academic year, 
with specified exceptions.
            Subpart 1--Grants to partnerships
    New section 2211--Grants Authorized. The Secretary is 
authorized to award 5-year competitive grants to eligible 
partnerships. The federal share of such grants is 75 percent 
for the first year, 65 percent for the second year, and 50 
percent for each of the remaining years in the grant period. 
Priority must be given to partnerships involving a high need 
local educational agency.
    New section 2212--Application Requirements. Applications 
for grant funds must include: an assessment of needs for 
teacher quality and professional development for all 
participating entities; a description of how activities will be 
aligned with State and local standards; and a description of 
how activities will be based on a review of relevant research. 
Applications must also include a description of the proposed 
program and an evaluation and accountability plan.
    New section 2213--Authorized Activities. This section 
provides that an eligible partnership shall use grant funds for 
1 or more of the following activities: developing more rigorous 
math and science curricula aligned to State and local standards 
and with the standards expected for postsecondary study in 
mathematics and science, respectively; creating opportunities 
for enhanced and ongoing professional development; recruiting 
math and science majors to teaching; promoting strong teaching 
skills for math and science teachers and teacher educators; 
establishing math and science summer workshops or institutes 
for teachers; establishing distance learning programs for math 
and science teachers; designing programs to prepare a teacher 
to provide professional development to other teachers and 
novice teachers; and designing programs to bring teachers into 
contact with working scientists.
    New section 2214--Evaluation and Accountability Plan. This 
section requires each eligible partnership to develop an 
evaluation and accountability plan which includes objectives 
and measures for improved student performance on State math and 
science assessments or the Third International Math and Science 
Study assessment; increased student participation in advanced 
courses; increased percentages of secondary school classes in 
math and science taught by teachers with academic majors in 
those subjects; and increased numbers of math and science 
teachers who participate in content-based professional 
development activities.
    New section 2215--Report; Revocation of Grant. This section 
requires grant recipients to report annually to the Secretary 
regarding progress in meeting performance objectives. If the 
Secretary determines that a grantee is not making substantial 
progress in meeting those objectives by the end of the third 
year of the grant, then no further grant payments will be made.
            Subpart 2--Eisenhower Clearinghouse for Mathematics and 
                    Science Education
    New section 2221--Clearinghouse. This section allows the 
Secretary, in consultation with the Director of the National 
Science Foundation, to award a grant or contract to continue 
the Eisenhower National Clearinghouse for Mathematics and 
Science Education. The grant or contract will be awarded on a 
competitive, merit basis by the Secretary for 5 years. The 
funds shall be used to: maintain a permanent repository of math 
and science education instructional materials and programs; 
compile information on all math and science education programs 
administered by each Federal agency or department; disseminate 
information, programs and instructional materials; coordinate 
with identifiable and existing data bases; gather qualitative 
and evaluative data on submissions to the Clearinghouse; 
solicit and gather materials and programs, review the 
evaluation of the materials and programs, rank them, distribute 
the results of the reviews and excerpts of materials and links 
to Internet-based sites and information regarding on-line 
communities of users to teachers, but not conduct evaluations; 
and develop and establish an Internet-based site with search 
mechanism to identify information available through the 
Clearinghouse. Each Federal agency or department developing 
math or science educational instructional material or programs 
shall submit copies to the Clearinghouse. The Secretary shall 
use a peer review process to choose the recipient of the award, 
will disseminate information concerning the grant or contract 
awarded, and may appoint a steering committee to direct the 
Clearinghouse. Copyright laws apply to material collected by 
the Clearinghouse. Not later than 2 years after the enactment 
of this Act, the National Academy of Sciences will conduct a 
study of the Clearinghouse and submit its report to Congress.
            Subpart 3--Preparing tomorrow's teachers to use technology
    New Section 2231--Purpose; Program Authority. This section 
states that the purpose ofsubpart 3 is to assist consortia in 
programs preparing prospective teachers to use advanced 
technology to foster learning environments conducive to 
preparing all students to meet standards. This section gives 
the Secretary of Education, acting through the Director of the 
Office of Educational Technology, the authority to make awards 
on a competitive basis and for not more than 5 years to pay the 
Federal share of projects to develop or redesign teacher 
preparation programs to use advanced technology effectively.
    New Section 2232--Eligibility. This section states that, in 
order to receive an award under this subpart, an applicant must 
include at least 1 institution of higher education that offers 
a baccalaureate degree and prepares teachers for their initial 
entry into teaching, at least 1 State or local educational 
agency, and 1 or more of: a second institution of higher 
education, a school or department of education at an 
institution of higher education, a school or college of arts 
and sciences at an institution of higher education, a 
professional association, foundation, museum, library, for-
profit business, public or private nonprofit organization, 
community-based organization, or other entity with the capacity 
to contribute to the technology-related reform of teacher 
preparation programs. This section states that the applicant 
must submit an application to the Secretary and that the 
application shall include: a description of the proposed 
project including how the individuals participating would use 
advanced technology to create learning environments conducive 
to preparing all students to meet standards; a demonstration of 
the commitment, including financial, of each member of the 
consortium and of the active support of the leadership of each 
member; a description of how each member will be included in 
the activities; a description of how the project will be 
continued after Federal funds end; and a plan for project 
evaluation, including evaluation to monitor progress toward 
project objectives. This section states that the Federal share 
of any project shall not exceed 50 percent and the non-Federal 
share may be in cash or in kind, including services except in 
the case of equipment, networking capabilities, or 
infrastructure--where the Federal share cannot exceed 10 
percent and the non-Federal share must be in cash.
    New Section 2233--Use of Funds. This section states that 
recipients must use the funds to create programs that enable 
prospective teachers to use advanced technology to create 
learning environments conducive to preparing all students to 
meet standards and to evaluate the effectiveness of the 
project. This section states that recipients may use the funds 
to develop and implement programs that enable educators to 
learn the range of resources that can be accessed through the 
use of technology, integrate a variety of technologies into the 
classroom, evaluate educational technologies and their use, and 
help students develop their technical skills and digital 
learning environments; develop alternative teacher development 
paths; develop performance-based standards and assessments 
aligned with the standards to measure the capacity of 
prospective teachers to use technology; provide technical 
assistance to entities carrying out other teacher preparation 
programs; develop and disseminate resources and information to 
assist in preparing teachers; and acquire equipment, networking 
capabilities, and infrastructure to carry out the project.
            Subpart 4--General provisions
    New section 2241--Consultation with National Science 
Foundation. In carrying out the activities authorized by this 
part, the Secretary shall consult and coordinate with the 
Director of the National Science Foundation, particularly with 
respect to the appropriate roles of each in summer workshops or 
institutes.
    New section 2242--Authorization of Appropriations. This 
section authorizes appropriations for part--activities. The 
authorization for subpart 1 is $500 million for fiscal year 
2002 and such sums as may be necessary in each of the 6 
succeeding fiscal years. The authorization for subpart 2 is $5 
million for fiscal year 2002 and such sums as may be necessary 
in each of the 6 succeeding fiscal years. The authorization for 
subpart 3 is $150 million for fiscal year 2002 and such sums as 
may be necessary in each of the 6 succeeding fiscal years.

Part C--State and local programs for technology use in classrooms

    Section 2301--Purpose; Goal. This section of the bill 
states the purpose and goal of part C. The purpose of the part 
is to support a comprehensive system to use technology 
effectively in elementary and secondary schools to improve 
student achievement and performance. The goal of the part is to 
assist every child in crossing the digital divide by ensuring 
that every child is technologically literate by the time the 
child finished the 8th grade.
    Section 2302--Definitions. This section provides 
definitions for the terms ``adult education,'' ``all 
students,'' ``information infrastructure,'' ``interoperable; 
interoperability,'' ``public telecommunications entity,'' 
``State educational agency,'' and ``State library 
administrative agency.''
    Section 2303--Allotment and Reallotment. Section 2303(a) 
provides that the Secretary shall reserve sufficient funds to 
maintain grants awarded under the National Challenge Grants for 
Technology in Education prior to the enactment of the Better 
Education for Students and Teacher Act.
    Section 2303(b) provides that each State educational agency 
will receive a grant based on the title I formula, with a 
minimum grant level of \1/2\ of 1 percent of the amount 
available each year.
    Section 2303(c) provides that the Secretary may reallot any 
State educational agency allotment which is not needed during a 
fiscal year to other State educational agencies in proportion 
to their original allotments. To the extent that a State 
educational agency is unable to use all or a portion of the 
reallotted funds in a fiscal year, those additional funds will 
be similarly realloted among the other State educational 
agencies.
    Section 2304--Technology Grants. Section 2304(a) provides 
that the Secretary, through the Office of Educational 
Technology, shall award grants to State educational agencies to 
be usedfor competitive grants to local educational agencies. 
Grant awards to local educational agencies must be of 
sufficient size, scope, and quality to carry out the purposes 
of part C. In awarding grants, the State educational agency 
must give priority to the local educational agencies serving 
the highest number or percentage of children in poverty and 
must ensure an equitable distribution of assistance among urban 
and rural areas of the State.
    Section 2304(b) provides that each State educational agency 
which receives a grant must identify and offer technical 
assistance to local educational agencies with the highest 
number or percentage of children in poverty and which 
demonstrate the greatest need for technical assistance in 
developing an application for funds.
    Section 2305--State Application. This section provides that 
a State educational agency must submit a statewide educational 
technology plan in order to receive part C funds. The statewide 
plan must: outline long-term strategies for improving student 
performance and achievement through the effective use of 
technology; outline long-term strategies for financing 
technology education in the State and describe the 
participation of other agencies and organizations with the 
State; and meet other criteria established by the Secretary to 
enable the State educational agency to assist local educational 
agencies with the highest numbers or percentages of children in 
poverty and which demonstrate the greatest need for technology.
    Section 2306--Local Uses of Funds. This section provides 
that local educational agencies, to the extent possible, use 
part C funds to: use technology to support school reform 
efforts; provide ongoing professional development in the 
integration of technology into the curriculum; acquire 
connectivity linkages, resources, and services; acquire 
connectivity with wide area networks; provide educational 
services for adults and families; and repair and maintain 
school technology equipment. At least 30 percent of local 
educational agency funds must be used for professional 
development.
    Section 2307--Local Applications. Section 2307(a) requires 
that a local educational agency apply to the State educational 
agency for assistance under part C. The application must 
include an updated version of a strategic, long-range plan that 
includes: a description of how activities will be based on a 
review of relevant research and an explanation of why the 
activities are expected to improve student achievement; an 
explanation of how acquired technologies will be integrated 
into the curriculum; a description of the technologies to be 
acquired; an explanation of how programs will be developed in 
collaboration with existing adult literacy service provides; a 
description of how ongoing, sustained professional development 
will be provided for teachers, administrators, and school 
library media personnel; a description of the supporting 
resources which will be acquired; the projected costs of 
technologies and related expenses; a description of how 
technology provided under part C will be coordinated with other 
technology grant funds; a description of the process for the 
ongoing evaluation of how technologies will be integrated into 
the curriculum; and a description of the evaluation plan of the 
local educational agency.
    Section 2307(b) provides that a local educational agency 
may apply for assistance as part of a consortium with other 
local educational agenciess, institutions of higher education, 
intermediate educational units, libraries, or other appropriate 
educational entities.
    Section 2308--Accountability. This section provides that 
each local educational agency receiving funds under part C must 
develop an evaluation plan including performance objectives and 
other measures relating to increased professional development 
in the effective use of technology, increased access to 
technology in the classroom, and other indicators reflecting 
increased student achievement or performance. Each local 
educational agency must submit an annual report to the State 
educational agency describing progress towards meeting the 
purpose of part C and the performance objectives and measures. 
If a local educational agency has failed to show measurable 
improvements in all performance measures by the end of the 
third year of funding, it will not receive funds for the 
remaining grant years. The State educational agency must 
provide technical assistance to local educational agencies to 
assist them in meeting the performance objectives and measures.
    Section 2309--National Education Technology Plan. This 
section requires the Secretary, within 1 year of enactment, to 
prepare a national long-range plan to support the national 
technology policy. The Secretary is to consult with a wide 
range of individuals and organizations in preparing the plan. 
Upon completion, the plan is to be submitted to the President 
and to the appropriate committees of Congress and is to be made 
readily accessible to the public. The plan must include 
descriptions of: (1) the way in which the Secretary will 
encourage the effective use of technology to provide all 
students the opportunity to achieve; (2) joint activities in 
support of the overall national technology policy to promote 
the use of technology in education, training, and lifelong 
learning; (3) the way in which the Secretary will work with 
educators, educational agencies, and the private sector to 
facilitate the effective use of technology in education; (4) 
the way in which the Secretary will promote higher academic 
achievement and performance, increased access to technology, 
the use of technology to assist with State systemic reform, the 
application of technological advances to improve educational 
opportunities, increased access to high quality adult and 
family education services, and increased professional 
development opportunities; (5) the way in which the Secretary 
will determine the feasibility and desirability of establishing 
guidelines to facilitate an easy exchange of date and effective 
use of technology in improving education; (6) the way in which 
the Secretary will promote the exchange of information 
regarding the effective use of technology in education; and (7) 
the Secretary's long-range measurable goals and objectives 
relating to the purposes of part C.
    Section 2310--Authorization of Appropriations. This section 
authorizes a funding level of $1 billion for fiscal year 2002 
and such sums as may be necessary in each of the 6 succeeding 
fiscal years. A grant recipient under part C may use no more 
than 5 percent of grant funds for administrative costs or 
technical assistance.
    Section 202. Teacher Mobility. This section, the ``Teacher 
Mobility Act,'' adds a new part D entitled ``Part D--
Portability of Teacher Pensions and Credentials'' to title II.

Part D--Portability of teacher pensions and credentials

    New Section 2401. Definition. This section defines 
``pension'' as a pension provided under an employee pension 
benefit plan, as defined in section 3(2) of the Employee 
Retirement Income Security Act of 1974.
    New Section 2402. National Panel of Portability of Teacher 
Pensions and Credentials. Section 2402(a) establishes a 
National Panel of Portability of Teacher Pensions and 
Credentials (the ``panel'').
    Section 2402(b) provides that the 9 members of the panel 
will be appointed by the Secretary from among practitioners and 
experts with experience relating to teacher pensions and 
credentials.
    Section 2402(c) provides that members will be appointed for 
the life of the panel.
    Section 2402(d) sets the duties of the panel as studying 
options for increasing reciprocity of recognition of teacher 
credentials and portability of teacher pensions between States 
and as reporting the results of the study to the Secretary and 
the appropriate committees of Congress within 1 year.
    Section 2402(e) gives the panel the powers to hold 
hearings, take testimony, and receive evidence the panel 
considers advisable; to secure such information from any 
Federal department or agency as the majority of the panel 
requests; and to use the United States mails in the same manner 
and under the same conditions as other Federal departments and 
agencies.
    Section 2402(f) states that members of the panel shall 
receive no compensation, but shall be allowed travel expenses 
and that Federal employees may be detailed to the panel without 
interruption or loss of civil service status or privilege.
    Section 2402(g) states that Section 14 of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
panel.
    Section 2402(h) states that funds necessary to carry out 
this act are authorized for fiscal year 2002 and shall remain 
available until expended.

   TITLE III--MOVING LIMITED ENGLISH PROFICIENT STUDENTS TO ENGLISH 
                                FLUENCY

    Section 301--Amendment to the Elementary and Secondary 
Education Act of 1965. This section renames title III 
``Bilingual Education, Language Enhancement, and Language 
Acquisition Programs'' and amends the title to read as follows:

Part A--Bilingual education

    The new part A includes the following provisions:
    Section 3001--Short Title. New section 3001 provides that 
the short title of part A is ``Bilingual Education Act.''
    Section 3002--Purpose. New section 3002 states that the 
purpose of part A is to promote systemic improvement for 
educational programs serving limited English proficient 
students.
    Section 3003--Authorization of Appropriations. New section 
3003 authorizes a funding level of $300 million for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years. At least 25 percent of such funds are 
reserved to carry out subpart 3.
    Section 3004--Native American and Alaska Native Children in 
School. New section 3004 provides that specified schools and 
other entities serving Native American and Alaska Native 
children shall be considered to be a local educational agency 
for the purposes of this part. Eligible entities submit 
applications for assistance under part A directly to the 
Secretary.
    Section 3005--Residents of the Territories and Freely 
Associated Nations. New section 3005 provides that, for 
carrying out part A programs in the outlying areas, the term 
``local educational agency'' includes public entities whose 
mission is the preservation and maintenance of native 
languages.
            Subpart 1--Bilingual education capacity and demonstration 
                    grants
    Section 3101--Financial Assistance for Bilingual Education. 
New section 3101 states that the purpose of subpart 1 is to 
develop the capacity of local educational agencies, 
institutions of higher education, and community-based 
organization to enhance their capacity to provide high-quality 
instruction to children and youth of limited English 
proficiency and to help such children and youth develop 
proficiency in English.
    Section 3102--Program Enhancement Projects. New section 
3102(a) states that the purpose for Program Enhancement 
Projects is to: provide grants to entities for locally 
designed, high quality instruction to children and youth of 
limited English proficiency; help children and youth develop 
English language proficiency; and help children and youth in 
attaining the standards established under section 1111(b) of 
this act.
    New section 3102(b) authorizes the activities for Program 
Enhancement Projects which shall include: developing 
comprehensive preschool, elementary, or secondary education 
programs for limited English proficient children and youth; 
providing high quality professional development; and annually 
assessing the English proficiency of alllimited English 
proficient students. Other activities may include: upgrading 
reading and other academic skills; developing accountability 
systems to monitor academic progress of limited English 
proficient and formerly limited English proficient students; 
implementing family education programs; acquiring and applying 
effective instructional materials; providing intensified 
instruction; adapting best practice models; assisting limited 
English proficient students with disabilities; and implementing 
applied learning activities.
    New section 3102(c) defines entities which are eligible to 
apply for Project Enhancement Projects as being: one or more 
local educational agencies; one or more local educational 
agencies in collaboration with an institution of higher 
education, community-based organization, or local or State 
educational agency; or a community-based organization or 
institution of higher education which has an application 
approved by the local educational agency.
    New section 3102(d) authorizes the Secretary, if the 
Secretary so chooses, to give priority in awarding grants to an 
entity that serves a school district which has either a total 
enrollment of less than 10,000 students or a large percentage 
or number of limited English proficient students and which has 
limited or no experience in serving limited English proficient 
students.
    Section 3103--Comprehensive School and Systemwide 
Improvement Grants. New section 3103(a) states that the 
purposes of Comprehensive School and Systemwide Improvement 
Grants are to: provide financial assistance to schools and 
local educational agencies for implementing bilingual education 
programs; assist limited English proficient students in meeting 
the standards established under section 1111(b); and improve 
instructional programs in schools and local educational 
agencies that serve significant percentages of students with 
limited English proficiency or significant numbers of such 
students.
    New Section 3103(b) specifies that grants awarded under 
this section shall be used for: improving instructional 
programs for limited English proficient students; aligning 
activities with State and local school reform efforts; 
providing training to improve instruction and assessment of 
limited English proficient students; implementing culturally 
and linguistically appropriate family education programs; 
coordinate training activities with title II of the Higher 
Education Act; coordinating activities with other programs; 
providing services to meet the full range of the educational 
needs of limited English proficient students; annually 
assessing the English proficiency of limited English proficient 
students; and developing accountability systems. This section 
also lists several permissible activities.
    New Section 3103(c) specifies the reservation of funds for 
continued payments of grants awarded prior to the date of 
enactment for which the grant period has not ended. One-third 
of remaining funds will be used to award grants for activities 
carried out within an entire school district, and two-thirds of 
such funds will be used to award grants for activities carried 
out within individual schools.
    New section 3103(d) defines entities which are eligible to 
apply for Comprehensive School and Systemwide Improvement 
Grants as being: one or more local educational agencies; or one 
or more local educational agencies in collaboration with an 
institution of higher education, community-based organization, 
or local or State educational agency.
    Section 3104--Applications. New section 3104 sets out 
requirements for the application of grant funds under subpart 
1.
    New section 3104(b) provides that the State educational 
agency must review an application and provide written comments 
to be included with the application.
    New section 3104(c) provides that an eligible entity may 
address the comments provided by the State educational agency.
    New section 3104(d) provides that the Secretary must take 
the State educational agency comments into consideration.
    New section 3104(e) authorizes the Secretary to waive the 
requirement for State educational agency review of the 
application if the agency can demonstrate that the requirement 
would impede the agency's ability to fulfill the requirements 
of participation in the State grant program.
    New Section 3104(f) provides that the application must 
document that the applicant has sufficient qualified personnel 
and that the leadership personnel of each participating school 
have been involved in developing and planning the program.
    New Section 3104(g) provides that grant applications must 
include: a description of the need for the proposed program, 
including data on the number and characteristics of students to 
be served and the professional development needs of the 
instructional personnel who will provide services; a 
description of the program to be implemented, including how it 
will be coordinated with other programs and will ensure 
accountability in achieving high standards; a description of 
any collaborative activities with other entities; an assurance 
that State and local funds will not be reduced if grant funds 
are received; an assurance that teachers employed in the 
program will be proficient in English and in the native 
language of the majority of the students taught by the teachers 
(if the instruction in the program is in the native language as 
well as English); a budget for grant funds; a description of 
services to be provided, including specific achievement and 
school retention goals; and assurances that the program will be 
integrated with the overall educational program and that the 
application has been developed in consultation with an advisory 
council.
    New section 3104(h) provides that the Secretary may approve 
a grant application only if: the program will use qualified 
personnel; the needs of children in nonprofit private 
elementaryand secondary schools have been taken into account; 
student evaluation and assessment procedures are valid, 
reliable, and fair; federal funds will be used to supplement, 
not supplant, State and local funds; grant assistance will 
contribute to building the capacity of the applicant to provide 
a program on a regular basis; and the applicant uses State and 
national dissemination sources.
    New section 3104(i) provides the Secretary shall give 
priority to a grant applicant who: experiences a dramatic 
increase in the number or percentage of limited English 
proficient students enrolled in the applicant's programs and 
has limited or no experience in serving limited English 
proficient students; is a local educational agency that serves 
a school district that has a total district enrollment of less 
than 10,000 students; demonstrates that the applicant has a 
proven record of success in helping limited English proficient 
children and youth learn English and meet high academic 
standards; proposes programs that provide for the development 
of bilingual proficiency in English and another language; or 
serves a school district with a large percentage or number of 
limited English proficient students. The Secretary shall also 
give consideration to the degree to which the program involves 
collaborative efforts and shall give due consideration to 
applications providing personnel training.
    Section 3105--Capacity Building. New section 3105 provides 
that grant recipients shall use funds to build their capacity 
to continue to offer high-quality programs once assistance is 
reduced or eliminated.
    Section 3106--Programs for Native Americans and Puerto 
Rico. New section 3106 provides that programs under this 
subpart serving Native American children, Native Pacific Island 
children, and children in the Commonwealth of Puerto Rico may 
include activities designed for Native American children and 
youth studying Native American languages, except that one 
outcome of such programs shall be increased English proficiency 
among Native American children. Funds may also be used for 
children and youth of limited Spanish proficiency
    Section 3107--Evaluations. New section 3107 requires each 
grant recipient to conduct an annual evaluation which will 
review the progress of the recipient in achieving the 
objectives of the program and determine whether the students 
being served by the program are meeting the State's student 
performance standards.
    Section 3108--Construction. New section 3108 provides that 
nothing in subpart 1 should be construed to prohibit a local 
educational agency from serving limited English proficient 
children and youth in the same educational settings with 
students who have similar educational needs.
            Subpart 2--Research, evaluation, and dissemination
    Section 3121--Authority. New section 3121 authorizes the 
Secretary to conduct data collection, dissemination, research, 
and ongoing program evaluation activities to improve 
instruction of children and youth with limited English 
proficiency. Such activities are to be carried out through the 
Office of Bilingual Education and Minority Language Affairs.
    Section 3122--Research. New section 3122 requires the 
Secretary to conduct research through the Office of Educational 
Research and Improvement in coordination with the Office of 
Bilingual Education and Minority Language Affairs. The research 
is required to have practical application and may include 
research on effective instructional practices and may also 
include establishing a common definition of ``limited English 
proficient student''. At least 5 percent of the funds must be 
used for field-initiated research conducted by grant 
recipients.
    Section 3123--Academic Excellence Awards. New section 3123 
authorizes the Secretary to make grants to State educational 
agencies to assist in recognizing local educational agencies 
and other public and nonprofit entities whose programs have 
demonstrated significant progress in assisting limited English 
proficient students to learn English and achieving the content 
standards. Each State seeking an grant shall submit an 
application.
    Section 3124--State Grant Program. New section 3124 
authorizes awards to State educational agencies which 
demonstrate that they effectively provide for the education of 
limited English proficient students through their own or 
through other federal education programs. Such awards may not 
exceed 5 percent of the total awarded to local educational 
agencies in the State under subpart 1, but may not be less than 
$200,000. Funds may be used to assist local educational 
agencies with program design, student assessment, evaluation, 
accountability systems, and data collection. Funds may also be 
used to train State educational agency personnel. State 
educational agencies receiving awards must provide an annual 
report to the Secretary summarizing the use of award funds.
    Section 3125--National Clearinghouse for Bilingual 
Education. New section 3125 requires the Secretary to establish 
and support a national clearinghouse to collect, analyze, 
synthesize, and disseminate information about bilingual 
education and related programs. Functions of the clearinghouse 
include that it is to: be administered as an adjunct 
clearinghouse supported by the Office of Educational Research 
and Improvement; coordinate with other federal efforts; develop 
a monitoring system; disseminate through comprehensive regional 
assistance centers a listing of individuals who might be used 
as a resource by local educational agencies; and publish an 
annual list of grant recipients under subpart 1.
    Section 3126--Instructional Materials Development. New 
section 3126 authorizes grants for the development, 
publication, and dissemination of instructional materials in 
Native American and Native Hawaiian languages, in the language 
of Native Pacific Islanders and other natives of the outlying 
areas, and in other low-incidence languages. Priority is given 
to proposals for materials in languages indigenous to the 
United States or the outlying areas and for materials 
consistent with voluntary national and State content standards.
            Subpart 3--Professional development
    Section 3131--Purpose. New section 3131 describes the 
purpose of this subpart assupporting professional development 
and the dissemination of information about appropriate 
instructional practices related to the education of limited 
English proficient children and youth.
    Section 3132--Training for All Teachers Program. New 
section 3132 authorizes five-year grants to local educational 
agencies or to one or more local educational agencies in a 
consortium with one or more State educational agencies, 
institutions of higher education, or non-profit organizations 
to offer pre-service and in-service professional development 
programs for teachers, administrators, and other personnel to 
improve their provision of services to limited English 
proficient children and youth. Grantees are to use funds to 
conduct high-quality, long-term professional development 
activities, which may include: developing induction programs; 
implementing school-based collaborative efforts; coordinating 
activities with other programs; implementing education 
technologies to improve instruction; establishing professional 
networks; and developing curricular materials.
    Section 3133--Bilingual Education Teachers and Personnel 
Grants. New section 3133 authorizes five-year grants to 
institutions of higher education in consortia with local or 
State educational agencies for pre-service and in-service 
professional development of teachers and other educational 
personnel and for national professional development institutes. 
In addition, five-year grants may also be awarded to State and 
local educational agencies for in-service professional 
development. Priority is given to institutions of higher 
education, in consortia with local or State educational 
agencies, which prepare new bilingual education teachers.
    Section 3134--Bilingual Education Career Ladder Program. 
New section 3134 authorizes five-year grants to institutions of 
higher education in consortia with local or State educational 
agencies (consortia may also include community-based 
organizations or professional education organizations) for 
bilingual education career ladder programs and for recruitment 
of bilingual education teachers. Permissive activities include 
development of curricula, stipends and other financial 
assistance, and programs to introduce secondary school students 
to careers in bilingual education. Special consideration is 
provided for applicants which provide for: participant 
completion of baccalaureate and master's degree teacher 
education programs; teacher proficiency in English as a second 
language; coordination with TRIO and other federal programs; 
and student financial aid.
    Section 3135--Graduate Fellowships in Bilingual Education 
Program. New section 3135 authorizes fellowships for masters, 
doctoral, and post-doctoral study related to the instruction of 
limited English proficient children and youth. Fellowship 
recipients must work in an activity related to the education of 
limited English proficient children and youth or repay 
assistance received. The specifics of the fellowship are to be 
set by the Secretary in regulation. Priority may be given to 
institutions of higher education that demonstrate experience in 
assisting fellowship recipients find employment in bilingual 
education.
    Section 3136--Application. New section 3136 establishes 
general requirements for the receipt of grants under subpart 3. 
It deals with consultation, needs assessment, assurances, State 
educational agency review of applications, outreach and 
technical assistance, and assurance of adequate representation 
of Hispanic-serving institutions.
    Section 3137--Stipends. New section 3137 authorizes the 
Secretary to pay stipends to individuals participating in 
subpart 3 training programs.
    Section 3138--Program Evaluations. New section 3138 
requires subpart 3 grant recipients to evaluate their programs 
annually. The evaluations are to include information regarding 
the number of participants, the effectiveness of the program, 
and the teaching effectiveness of graduates of the program.
    Section 3139--Use of Funds for Second Language Competence. 
New section 3139 provides that awards under subpart 3 may be 
used to develop a participant's competence in a second language 
for use in instructional programs.

Part B--Foreign Language Assistance Program

    Section 3201--Short Title. New section 3201 provides that 
the short title of part B is ``Foreign Language Assistance Act 
of 1994''.
    Section 3202--Program Authorized. New section 3202 
authorizes three-year matching grants to State educational 
agencies or local educational agencies for innovative model 
programs of foreign language study for elementary and secondary 
school students. The federal match is 50 percent, but it may be 
waived for a local educational agency which can demonstrate 
lack of adequate resources to pay the non-federal share. State 
educational agency grants shall be for programs that promote 
systemic approaches to improving foreign language learning. 
Local educational agency grants must show promise of being 
continued beyond the grant period, demonstrate approaches which 
can be disseminated, and may include professional development. 
At least three-fourths of the funds must be used to expand 
foreign language learning in the elementary grades.
    Section 3203--Applications. New section 3203 includes 
application requirements. The Secretary shall give special 
consideration to applications which: include intensive summer 
foreign language programs for professional development; promote 
two-way language learning; promote the sequential study of a 
foreign language; make effective use of technology; promote 
innovative activities, such as immersion; and are carried out 
through a consortium between the grantee and an elementary or 
secondary school.
    Section 3204--Elementary School Foreign Language Incentive 
Program. New section 3204 authorizes incentive payments to 
public elementary schools which provide students with a program 
designed to lead to communicative competency in a foreign 
language.
    Section 3205--Authorization of Appropriations. New section 
3205 authorizes appropriations of $35 million for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years, of which no more than $20 million may 
be used in each fiscal year to carry out the elementary school 
foreign language incentive program.

Part C--Emergency Immigrant Education Program

    Section 3301--Purpose. New section 3301 sets out findings 
related to the education of immigrant students and states the 
purpose of Part C, which is to assist eligible local 
educational agencies that experience unexpectedly large 
increases in their student population due to immigration in 
providing educational services to those students.
    Section 3302--State Administrative Costs. New section 3302 
permits State educational agencies to reserve up to 1.5 percent 
of the amount allocated to them for administrative costs. State 
educational agencies may reserve up to 2 percent if they 
distribute funds to local educational agencies competitively.
    Section 3303--Withholding. New section 3303 permits the 
Secretary to withhold Part C funds from a State educational 
agency if, after notice and opportunity for a hearing, the 
Secretary determines that the State educational agency has 
failed to meet the requirements of Part C. The Secretary may 
also require that the State educational agency not make further 
payments to specified local educational agencies whose actions 
are involved with the failure to meet these requirements.
    Section 3304--State Allocations. New section 3304 
establishes the allocation of Part C funds to State educational 
agencies. Each participating State receives an allocation equal 
to the State's proportion the number of immigrant students 
relative to the total number of immigrant students in all 
States participating in the program. Immigrant student counts 
are determined on a local educational agency basis, with 
eligible local educational agencies being those which have at 
least 500 immigrant students or 3 percent of total enrollment 
comprised of such students--whichever is less. If Part C 
funding exceeds $50 million, a State educational agency may 
reserve up to 20 percent of its payment to award competitive 
grants to local educational agencies--at least half of which 
must go to the local educational agencies with the highest 
numbers and percentages of immigrant students. The remaining 
competitive grant funds may be awarded either to the local 
educational agencies described above or to local educational 
agencies with a sudden influx of immigrant children which would 
otherwise not be eligible for assistance under Part C.
    Section 3305--State Applications. New section 3305 provides 
that State educational agencies must apply for funds and sets 
out assurances which must be included in the application, 
including an assurance that funds not distributed by 
competitive grant will be provided to local educational 
agencies on the basis of their immigrant student count and an 
assurance that immigrant students attending nonpublic schools 
are served. The application must be approved by the Secretary.
    Section 3306--Administrative Provisions. New section 3306 
provides that the Secretary must notify a State educational 
agency regarding the amount of its allocation for the 
succeeding year no later than June 1 each year. If a local 
educational agency is prohibited from, has substantially failed 
or is unwilling to provide educational services for children 
enrolled in nonpublic schools, the Secretary must arrange for 
the provision of services to such children. Waivers of the 
local educational agency's requirements to offer these services 
are subject to consultation, withholding, notice, and judicial 
review requirements in accordance with the provisions of title 
I.
    Section 3307--Uses of Funds. New section 3307 sets out a 
number of permissive uses of funds, the purpose of which is to 
enhance instructional opportunities for immigrant students. A 
local educational agency may form a consortia with one or more 
local educational agencies, institutions of higher education, 
and nonprofit organizations and may also make subgrants.
    Section 3308--Reports. New section 3308 requires State 
educational agencies to report every 2 years 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. The Secretary shall submit, once every 2 years, a 
report to the appropriate committees of the Congress concerning 
programs assisted under Part C.
    Section 3309--Authorization of Appropriations. New section 
3309 authorizes appropriations of $200 million for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.

Part D--Administration

    Section 3401--Release Time. New section 3410 requires the 
Secretary to allow professional development programs funded 
under part A to use such funds for professional release time to 
enable individuals to participate in programs assisted under 
the subpart.
    Section 3402--Education Technology. New section 3402 
provides that 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 title III.
    Section 3403--Notification. New section 3403 provides that 
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.
    Section 3404--Continued Eligibility. New section 3404 
provides that 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.
    Section 3405--Coordination and Reporting Requirements. New 
section 3405 requiresthe Secretary to coordinate with other 
programs serving limited English proficient children and youth 
administered by the Department and by other agencies, to assure 
that data collected by the Department include data on limited 
English proficient children and youth (to the extent feasible), 
publish and disseminate all requests for proposals for subpart 
1 programs. In addition, the Director of the Office of 
Bilingual Education and Minority Language Affairs shall report 
to the Secretary and House and Senate authorizing committees 
every other year on activities related to this title.

Part E--General provisions

    Section 3501--Definitions; Regulations. New section 3501 
provides definitions for the terms ``bilingual education 
program,'' ``children and youth,'' ``community-based 
organization,'' ``community college,'' ``director,'' ``family 
education program,'' ``immigrant children and youth,'' 
``limited English proficiency and limited English proficient,'' 
``Native American and Native American language,'' ``Native 
Hawaiian or Native American Pacific Islander native language 
educational organization,'' ``native language,'' ``office,'' 
``other programs for persons of limited English proficiency,'' 
``paraprofessional,'' and ``special alternative instructional 
program.''
    Section 3502--Regulations and Notification. New section 
3502 requires the Secretary to consult with State educational 
agencies, local educational agencies, and groups involved in 
bilingual education in developing title III regulations. It 
also includes provisions for parental notification of items 
related to the program and for the option to decline enrollment 
of their children in bilingual education programs. Parents are 
also to receive this information in a manner and form 
understandable to them.

          TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

    Section 401--Amendment to the Elementary and Secondary 
Education Act of 1965. This section amends title IV and inserts 
the following:

Part A--State grants

    The new part A renames title IV, part A as ``State 
Grants.''
    Provisions of title IV, part A include:
    Section 4001--Short Title. This section specifies that part 
A may be cited as the ``Safe and Drug-Free Schools and 
Communities Act of 1994.''
    Section 4002--Findings. This section provides new 
congressional findings regarding this part, including: (1) 
every student should attend a school in a drug- and violence-
free learning environment; (2) the widespread illegal use of 
alcohol and drugs among the Nation's secondary school students, 
and increasingly by students in elementary schools, constitutes 
a grave threat to such students' physical and mental well-
being, and significantly impedes the learning process; (3) drug 
and violence prevention programs are essential components of a 
comprehensive strategy to promote school safety, youth 
development, positive school outcomes, and to reduce the demand 
for and illegal use of alcohol, tobacco and drugs throughout 
the Nation; (4) drug and violence prevention programs are most 
effective when implemented within a research-based, drug and 
violence prevention framework of proven effectiveness; (5) 
research clearly shows that community contexts contribute to 
substance abuse and violence; (6) substance abuse and violence 
are intricately related and must be dealt with in a holistic 
manner; and (7) research has documented that parental behavior 
and environment directly influence a child's inclination to use 
alcohol, tobacco or drugs.
    Section 4003--Purpose. This section states the purpose of 
Part A which is to support programs that prevent violence in 
and around schools and prevent the illegal use of alcohol, 
tobacco, and drugs; involve parents; and are coordinated with 
related Federal, State, school, and community efforts and 
resources.
    Section 4004--Funding. This section authorizes specific 
funding levels for fiscal year 2002 and such sums as may be 
necessary for the 6 succeeding fiscal years for the following 
programs: $700 million for the State Grants program under 
subpart 1; $150 million for the National Programs under subpart 
2; and $75 million for the National Coordinator Initiative 
under section 4122. In addition, this section authorizes $5 
million in each of fiscal years 2002 through 2004 to carry out 
the ``Grants to Combat the Impact of Experiencing or Witnessing 
Domestic Violence on Elementary and Secondary School Children'' 
authorized in section 4125.
            Subpart 1--State grants for drug and violence prevention 
                    programs
    Section 4111--Reservations and Allotments. This section 
requires the Secretary to: reserve 1 percent of the amount made 
available under section 4004(1) for Guam, American Samoa, the 
Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands; reserve 1 percent of the same amount for the Secretary 
of the Interior to carry out programs under this part for 
Indian youth; reserve not more than $2 million for the National 
impact evaluation required by section 4117(a); and reserve 0.2 
percent of above amount for programs for Native Hawaiians under 
section 4118.
    Section 4112--State Applications. This section requires 
States seeking an allotment to submit an application to the 
Secretary including: a comprehensive plan for the use of funds 
under the Governor's program and the State Department of 
Education's program; a needs assessment and results of ongoing 
State evaluation activities; assurances that stakeholders were 
consulted; measurable goals; a description of how the funds 
will be spent; a description of how the State will receive 
input from parents; and a comprehensive plan for using and 
monitoring the funds received under title IV. The State plan 
shall also include a comprehensive plan for the Governor's 
program by the chief executive officer.
    Section 4113--State and Local Educational Agency Programs. 
This section reserves 80 percent of the funds made available to 
States to be used for State support and grants to local 
educational agencies for drug and violence prevention 
activities. State and local programs must implement activities 
that are research-based initiatives, and States are required to 
implement auniform management and information reporting system 
so that expenditures of these funds can be clearly tracked. A 
State educational agency may use up to 5 percent of available 
funds for technical assistance and 5 percent for the 
administrative costs of carrying out responsibilities.
    State educational agencies may choose between the following 
two options for allocating remaining funds to local educational 
agencies: (1) at least 70 percent to schools based on 
enrollment and up to 30 percent allocated at the State's 
discretion or to schools the State determines to have the 
greatest need; or (2) up to 70 percent on a competitive basis 
to those schools with the greatest need, and 30 percent to 
those schools the State determines require additional help to 
run a program but which might not meet the ``greatest need'' 
criteria. These options would allow States to choose and define 
a competitive or baseline minimum grant system and still allow 
them to help those schools that could not compete under that 
system.
    Section 4114--Governor's Programs. This section reserves 20 
percent of a State's allocation for Governors' programs, of 
which not less than 95 percent of the funds must be used for 
research-based substance abuse/violence reduction through a 
broad range of activities. Governors are authorized to add 
their money directly to the funds being sent to schools and 
communities to serve out-of-school youth and to undertake 
community mobilization activities related to substance abuse 
and violence.
    Section 4115--Local Applications. This section states that 
in order to be eligible for a distribution under section 
4113(d), a local educational agency must submit an application 
to the State educational agency. The application shall: include 
a needs assessment; set measurable goals and objectives; 
utilize effective research-based programs; ensure participation 
of community groups; and include a program evaluation.
    Section 4116--Local Drug and Violence Prevention Programs. 
This section requires local educational agencies to use funds 
received under subpart 1 to adopt and carry out a comprehensive 
drug and violence prevention program. The program shall be 
designed for all students and school employees in order to 
prevent the use, possession, and distribution of tobacco, 
alcohol, and illegal drugs; prevent violence and promote school 
safety; and create a disciplined environment conducive to 
learning. The program must also include activities to promote 
the involvement of parents and coordination with community 
groups and agencies.
    Section 4117--Evaluations and Reporting. This section 
requires the Secretary of Education to consult with the newly 
created National Advisory Committee to conduct an independent 
biennial evaluation of the impact of programs assisted under 
subpart 1 and on other recent and new initiatives to combat 
violence in schools. The evaluation shall determine whether 
funded programs conform to the principles of effectiveness; 
target research-based programs such as risk factors and/or 
protective factors/buffers or assets; reduce drug use, school 
violence, and the presence of firearms at schools; and have 
conducted effective parental involvement and voluntary training 
activities. The Department of Education, States, and the 
Governors are required to implement program and financial 
monitoring. Every 2 years, States shall provide the Secretary 
with a report detailing the implementation and outcomes of the 
State's and local educational agencies programs and their 
effectiveness, the State's progress toward attaining its goals 
for drug and violence prevention, and the State's efforts to 
inform parents of, and include parents in, violence and drug 
prevention efforts. In addition, local educational agencies are 
required to provide State educational agencies with the 
information they may need to complete the State reports.
    Section 4118--Programs for Native Hawaiians. This section 
authorizes the Secretary to provide grants to or enter into 
cooperative agreements with organizations that serve and 
represent Native Hawaiians in order to plan, conduct, and 
administer programs that are authorized by and consistent with 
the provisions of title IV for the benefit of Native Hawaiians. 
For the purposes of this section, Native Hawaiians are those 
individuals whose ancestors were natives, prior to 1778, of the 
area which now comprises the State of Hawaii.
            Subpart 2--National programs
    Section 4121--Federal Activities. This section authorizes 
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, to carry out programs 
to prevent the illegal use of drugs and violence among 
students, and to promote safety and discipline for students. 
The Secretary may carry out programs directly or award grants 
to public and private nonprofit organizations and individuals 
for a variety of activities designed to prevent the illegal use 
of drugs and violence among students from pre-school through 
the postsecondary level.
    Section 4122--National Coordinator Program. This section 
states that the Secretary shall provide for the establishment 
of a National Coordinator Program under which grants are 
awarded to local educational agencies for the hiring of drug 
prevention and school safety program coordinators. Coordinators 
shall be responsible for developing, conducting, and analyzing 
assessments of drug and crime problems at their schools, and 
administering the safe and drug free grant program.
    Section 4123--Safe and Drug Free Schools and Communities 
Advisory Committee. This section creates a Safe and Drug Free 
Schools and Communities Advisory Committee. The Advisory 
Committee shall: coordinate Federal drug and violence 
prevention programs; develop core data sets and evaluation 
programs; provide technical assistance and training; provide 
for the diffusion of research-based programs; and review other 
regulations and standards developed under this title. The 
committee will include representatives from the Department of 
Education, the Centers for Disease Control and Prevention, the 
National Institute on Drug Abuse, the National Institute on 
Alcoholism and Alcohol Abuse, the Center for Substance Abuse 
Prevention, the Center for Mental Health Services, the Office 
of Juvenile Justice and Delinquency Prevention, the Office of 
National Drug Control Policy, and the State and local 
government education agency representatives. The Advisory 
Committee shall annually consult with State and local 
coordinators of school and community-based substance abuse and 
violence prevention programs and other interested groups.
    Section 4124--Hate Crime Prevention. This section 
authorizes the Secretary to makegrants to local educational 
agencies and community-based organizations for the purpose of 
providing assistance to localities most directly affected by 
hate crimes. Grants may be used to: (1) develop education and 
training programs designed to prevent and reduce the incidences 
of crimes motivated by hate; (2) develop curriculum to improve 
conflict or dispute resolution skills of students, teachers and 
administrators; (3) develop equipment and instructional 
materials to meet the needs of hate crime or conflict programs; 
and (4) provide professional training and development for 
teachers and administrators on the causes, effects, and 
resolutions of hate crimes.
    Section 4124(b) requires local educational agencies seeking 
a grant under this section to submit an application to the 
Secretary that includes a request for funds, a description of 
the schools and communities to be served by the grants, and an 
assurance that the Federal funds will be used to supplement and 
not supplant non-Federal funds. Applications shall also include 
a comprehensive plan describing the hate crime problems within 
the school or community and a description of the program to be 
developed or augmented by Federal funds.
    Section 4124(c) requires the Secretary, in awarding grants, 
to consider the incidence of crimes in the community and should 
attempt to achieve an equitable geographic distribution. If 
possible, the Secretary shall make available information 
regarding successful hate crime prevention programs.
    Section 4124(d) provides that, every 2 years, the Secretary 
shall submit a report to Congress describing the grants and 
awards, the activities of grant recipients, and an evaluation 
of programs established by this section.
    Section 4125. Grants to Combat the Impact of Experiencing 
or Witnessing Domestic Violence on Elementary and Secondary 
School Children. This section authorizes the Secretary to award 
competitive grants and contracts to elementary and secondary 
schools that work with experts to support training, 
programming, support services, and policies relating to 
children experiencing or witnessing domestic violence. The 
confidentiality of the victim and the victim's family must be 
maintained. The section includes definitions of ``domestic 
violence,'' ``experts,'' ``witness domestic violence,'' and 
``witness.''
            Subpart 3--General provisions
    Section 4131--Definitions. This section provides the 
meanings of certain terms used in this part, including, 
``community-based organization,'' ``drug and violence 
prevention,'' ``hate crime,'' ``nonprofit,'' ``objectively 
measurable goals,'' ``protective factor, buffer, or asset,'' 
``risk factor,'' ``school-aged population,'' and ``school 
personnel.''
    Section 4132--Materials. This section states that drug 
prevention programs supported under part A should convey a 
message that the use of drugs and alcohol is illegal and 
harmful. In addition, the Secretary may not prescribe the use 
of specific curriculum for programs supported under this part, 
but may evaluate the effectiveness of the curriculum.
    Section 4133--Prohibited Uses of Funds. This section 
prohibits the use of funds under part A for construction and 
medical services, drug treatment or rehabilitation, except for 
pupil services or referral to treatment for students who are 
victims or witnesses to crime or who use alcohol or drugs.
    Section 4134--Quality Rating. This section encourages 
States to establish a standard of quality for drug and alcohol 
prevention programs implemented in elementary and secondary 
schools and to identify and designate a school that achieves 
such standard as a quality program school. The standard shall 
address: a comparison of the rate of illegal use of drugs and 
alcohol by students; the rate of suspensions or expulsions of 
students for offenses; the effectiveness of the prevention 
programs; the involvement of parents and community members in 
the design of prevention programs; and the extent of review of 
existing community prevention programs before implementation of 
the public school program. Schools wishing to receive a quality 
school program designation shall submit a request to the State 
and the State shall create a list of the designated schools for 
the public.
    Section 402--Gun-Free Requirements. This section amends 
title IV by adding the following:

Part B--Gun possession

    Part B retains current law with respect to ``Gun 
Possession'' as follows:
    Section 4201--Gun-Free Requirements. This section specifies 
that this part may be cited as the ``Gun-Free Schools Act of 
1994.'' Part B requires States receiving Federal funds under 
this act to have a State law requiring local educational 
agencies to expel from school for at least 1 year any student 
who brings a weapon to school. This part should not prevent a 
local educational agency that has expelled a student from the 
student's regular school setting from providing educational 
services to the student in an alternative setting. Local 
educational agencies seeking assistance from State educational 
agencies, shall provide to the State an assurance that such 
local educational agency is in compliance with the State law 
and a description of the circumstances surrounding any 
expulsions imposed under the State law. States shall report 
this information to the Secretary on an annual basis.
    Section 4202--Policy Regarding Criminal Justice System 
Referral. This section states that no funds under part B shall 
be made available to a local educational agency unless the 
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 the agency.
    Section 403. School Safety and Violence Prevention. Section 
403 adds a new Part C,entitled ``School Safety and Violence 
Prevention'', to title IV, as follows:

Part C--School safety and violence prevention

    Section 4301--School Safety and Violence Prevention. This 
section states that Federal funds under title IV and subpart 4 
of title V of this act may be used for: training school 
personnel to identify potential threats; training community 
members and school personnel to identify troubled youth; 
delinquency and violence prevention programs; comprehensive 
school security assessments; purchase of metal detectors, 
locks, and surveillance cameras; collaborative efforts with 
community-based organizations to reduce violence; assistance in 
establishing school uniform policies; school resource officers; 
and other innovative programs to reduce school violence.
    Section 4302--School Uniforms. This section states that 
nothing in this act should be construed to prohibit schools 
from establishing a school uniform policy. Funds under title IV 
and subpart 4 of title V may be used to establish a school 
uniform policy.
    Section 4303--Transfer of School Disciplinary Records. This 
section requires States receiving Federal funds under this act 
to assure the Secretary that the State has a procedure in place 
by which local educational agencies must transfer the 
suspension and expulsion records of any student to any private 
or public elementary or secondary school in which that student 
seeks enrollment. This requirement does not apply to private 
schools. This section also amends the National Child Protection 
Act of 1993 to specify that individuals who are employed, or 
seek employment, with schools are included in the provisions of 
that act relating to background checks.
    Section 404--Environmental Tobacco Smoke. Section 403 adds 
a new Part D, entitled ``Environmental Tobacco Smoke'', to 
title IV, as follows:

Part D--Environmental tobacco smoke

    Section 4401--Short Title. This section specifies that this 
part may be cited as the ``Pro-Children Act of 2000.''
    Section 4402--Definitions. This section provides the 
meanings of certain terms used in part D, including: 
``children,'' ``children's services,'' ``indoor facility,'' 
``person,'' and ``Secretary.''
    Section 4403--Nonsmoking Policy for Children's Services. 
This section prohibits smoking within any indoor facility owned 
or leased or contracted for, and utilized for the provision of 
regular or routine kindergarten, elementary or secondary 
education or library services to children; or regular or 
routine health care or day care or early childhood development 
(Head Start services). Any portion of a facility that is used 
for inpatient hospital treatment of individuals dependent on, 
or addicted to drugs or alcohol and private residences are 
exempt from the provision. The prohibitions shall be published 
in the Federal Register by the Secretary. Such prohibitions 
shall be effective 90 days after such notice is published or 
270 days after the enactment of this act, whichever occurs 
first. Failure to comply with a prohibition shall be considered 
a violation of this act and a civil penalty in an amount not to 
exceed $1,000 shall be charged. A civil penalty may be assessed 
in a written notice, or an administrative compliance order may 
be issued.
    Section 4404--Preemption. This section states that nothing 
in this part is intended to preempt a provision of a State law 
or a political subdivision of a State that is more restrictive 
than a provision in this part.
    Section 501--Public School Choice and Flexibility. This 
section renames title V of Elementary and Secondary Education 
Act of 1965 ``Public School Choice and Flexibility'' and amends 
the title to read as follows:

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

Part A--Public school choice

            Subpart 1--Charter schools
    This subpart maintains current law provisions dealing with 
charter schools, transferring the provisions from part C of 
title X of the act to subpart 1 of part A of title V and making 
minor drafting changes for purposes of clarification and 
consistency.
    Section 5111. Purpose. New section 5111 maintains the 
current law purpose relating to charter schools.
    Section 5112. Program Authorized. New section 5112 
maintains current law provisions authorizing grants to State 
educational agencies to conduct a charter school grant program. 
The section also provides for the awarding of grants to 
eligible applicants in cases where the State educational agency 
elects not to participate in or does not have an application 
approved under this program.
    Section 5113. Applications. New section 5113 maintains 
current law provisions outlining the content of grant 
applications submitted under this subpart.
    Section 5114. Administration. New section 5114 maintains 
current law provisions describing the selection criteria to be 
used by the Secretary in awarding grants and the use of subpart 
1 funds.
    Section 5115. National Activities. New section 5115 
maintains current law provisions requiring the Secretary to 
reserve funds to carry out national information, study, 
evaluation, datagathering, and dissemination activities.
    Section 5116. Federal Formula Allocation During First Year 
and For Successive Enrollment Expansions. New section 5116 
maintains current law provisions dealing with the allocation of 
title I funds to a charter school within 5 months after the 
charter school opens and to a charter school that first opens 
after November 1 of any academic year.
    Section 5117. Solicitation of Input from Charter School 
Operators. New section 5117 maintains current law provisions 
regarding the consultation with individuals directly involved 
in the operation of charter schools in the development of rules 
and regulations for this subpart or for any other Federal 
program involving charter schools.
    Section 5118. Records Transfer. New section 5118 maintains 
current law provisions dealing with the transfer of student 
records to a charter school.
    Section 5119. Paperwork Reduction. New section 5119 
maintains current law provisions stating that implementation of 
this subpart should result in a minimum amount of paperwork for 
eligible applicants and charter schools.
    Section 5120. Definitions. New section 5120 maintains 
current law provisions defining the terms ``charter school,'' 
``developer,'' ``eligible applicant,'' and ``authorized public 
chartering agency.''
    Section 5121. Authorization of Appropriations. This section 
authorizes $190 million in funding for fiscal year 2002 and 
such sums as may be necessary for each of the 6 succeeding 
fiscal years.
            Subpart 2--Magnet schools assistance
    Section 5131--Findings and Statement of Purpose. This 
section provides congressional findings and the purpose of this 
part which is to assist in the desegregation of schools served 
by local educational agencies by providing financial assistance 
to: (1) eliminate, reduce, or prevent minority group isolation; 
(2) promote systemic reform efforts; (3) develop innovative 
educational methods and practices; (4) develop courses of 
instruction which strengthen knowledge of academic subjects and 
marketable skills; (5) improve capacity of magnet schools to 
operate after Federal funding is terminated; and (6) ensure 
that magnet schools students have equitable access to the 
education necessary to succeed.
    Section 5132--Program Authorized. This section authorizes 
the Secretary to make grants to local educational agencies for 
magnet schools.
    Section 5133--Definition. This section defines the term 
``magnet school.''
    Section 5134--Eligibility. This section defines eligibility 
standards for the receipt of magnet school grants.
    Section 5135--Applications and Requirements. This section 
requires a local educational agency seeking assistance under 
this part to submit an application to the Secretary. This 
section also includes a description of the requirements of the 
application.
    Section 5135(b)(2)(E) amends current law to provide 
equitable consideration for students in the local attendance 
area, consistent with desegregation guidelines and the capacity 
of the program to accommodate these students. Other provisions 
of current law are maintained.
    Section 5136--Priority. This section provides guidelines 
for the prioritization of applicants by the Secretary. This 
section amends current law by giving priority to applicants 
that propose activities to build local capacity to operate the 
program once Federal assistance has ended. Other provisions of 
current law are maintained.
    Section 5137--Use of Funds. This section specifies the 
allowable uses of grant funds. This new section amends current 
law to: allow grant recipients to use funds for professional 
development in order to facilitate self-sufficiency after 
Federal assistance has ended; offer the flexibility of a magnet 
school program in order to serve local students not enrolled in 
a magnet school program; and enable the local educational 
agency to have flexibility in designing magnet schools for 
students of all grades. Other provisions of current law are 
maintained.
    Section 5138--Prohibition. This section prohibits the use 
of funds for transportation or any activity that does not 
augment academic improvement.
    Section 5139--Limitations. This section provides for the 
duration of awards, limits on planning funds, and amount and 
timing of awards. This section increases the percentage of 
funds which may be expended for planning in the second and 
third years to 25 and 15 percent respectively. This section 
also clarifies that professional development is not planning.
    Section 5140--Innovative Programs. This section authorizes 
the Secretary to award grants to local educational agencies to 
conduct innovative programs that involve strategies other than 
magnet schools to achieve desegregation goals and assist 
students in meeting State and local standards. This section 
amends provisions of current law to update references. Other 
provisions of current law are maintained.
    Section 5141--Evaluations. This section provides guidelines 
for evaluations of projects under this part and for technical 
assistance for grant recipients. This new section amends 
current law to provide that evaluations shall address how 
magnet school programs will continue once assistance under this 
part has ended. This section also amends current law to require 
the Secretary to collect and disseminate information to the 
public on successful magnet schoolprograms. Finally, this 
section amends provisions of current law to update references. 
Other provisions of current law are maintained.
    Section 5142--Authorization of Appropriations; Reservation. 
This section authorizes a funding level of $125 million for 
fiscal year 2002 and such sums as may be necessary for the 6 
succeeding fiscal years. Other provisions of current law are 
maintained.
            Subpart 3--Public school choice
    Section 5151--Public School Choice. This section allocates 
funds to States, which are to allocate all these funds to local 
educational agencies to carry out school improvement 
activities. Each local educational agency receiving funds under 
this subpart or under part A of title I, with the exception of 
local educational agencies located in a States which receives a 
minimum grant, must provide all students enrolled in a school 
identified for school improvement with the option to transfer 
to another public school within the agency that has not been 
identified for school improvement. An exception is provided in 
cases where the option to transfer is prohibited by State or 
local law. If a local educational agency can demonstrate to the 
State educational agency that it lacks the capacity to provide 
all students with the option to transfer, the agency must 
permit as many students as possible--selected on an equitable 
basis--to transfer. A funding level of $225 million for fiscal 
year 2002 and such sums as may be necessary in each of the 6 
succeeding fiscal years is authorized for this section.

Part B--Flexibility

            Subpart 1--Education flexibility partnerships
    Section 5201--Short Title. Section 5201 cites subpart 1 of 
part B as the ``Education Flexibility Partnership Act of 
2001''.
    Section 5202--Definitions. Section 5202 defines ``eligible 
school attendance area,'' ``school attendance area,'' and 
``State.'' These definitions apply to subpart 1 of part B.
    Section 5203--Education Flexibility Partnership. Section 
5203(a) establishes the Educational Flexibility (Ed-Flex) 
Program.
    Section 5203(b) describes the programs that are included 
under Ed-Flex.
    Section 5203(c) describes waivers that are not authorized 
under Ed-Flex.
    Section 5203(d) describes the treatment of existing Ed-Flex 
Partnership States.
    Section 5203(e) requires the Secretary to publish a notice 
in the Federal Register which describes the Secretary's 
decision to authorize State educational agencies to issue 
waivers.
            Subpart 2--Rural Education Initiative Program
    New section 5221--Short Title. This section provides that 
subpart 2 of title V may be cited as the ``Rural Education 
Achievement Program.''
    New section 5222--Purpose. This section states the purpose 
of the subpart is to address the unique needs of rural school 
districts which frequently lack the personnel and resources 
needed to compete for Federal competitive grants and frequently 
receive formula allocations in amounts too small to be 
effective in meeting their intended purposes.
    New section 5223--Authorization of Appropriations. This 
section authorizes $300 million for fiscal year 2002, of which 
$125 million shall first be made available to carry out chapter 
1, and such sums as may be necessary for each of the 6 
succeeding fiscal years

Chapter 1--Small, Rural School Achievement Program

    New section 5231--Formula Grant Program Authorized. This 
section authorizes rural educational agencies with an average 
daily attendance of 600 students or fewer to consolidate the 
funds they receive under Titles II, IV, and V of the Elementary 
and Secondary Education Act. These funds may be used to improve 
student achievement in accordance with the provisions of 
sections 1114, 1115, 1116, 2123, or 4116.
    New section 5232--Competitive Grant Program Authorized. 
This section authorizes the Secretary to award grants to small 
rural educational agencies to carry out innovative assistance 
activities. The grant will be equal to $100 multiplied by the 
total number of students in excess of 50 students that are in 
average daily attendance. No grant may be less than $20,000 or 
more than $60,000.
    New section 5233--Accountability. This section requires 
that each participating educational agency must administer an 
assessment, consistent with the assessment used pursuant to 
section 1111(b) of the Elementary and Secondary Education Act, 
to assess the academic achievement of students in schools 
served by the local educational agency. At the end of 3 years 
of participation in this program, the state educational agency 
shall determine whether students served by the participating 
local educational agency have improved their performance on the 
assessments. If student achievement has not improved, the local 
educational agency may no longer participate in the program.
    New section 5234--Ratable Reductions in Case of 
Insufficient Appropriations. This section provides for ratable 
reductions in case of insufficient appropriations.

Chapter 2--Low-Income and Rural School Program

    New section 5241--Definitions. This section provides 
definitions of ``poverty line'' and``specially qualified 
agency'' for use in chapter 2 of title V which provides funding 
for the Low-Income and Rural School Program.
    New section 5242--Program Authorized. This section 
authorizes the Secretary of Education to make grants to state 
educational agencies that are located in rural communities and 
that have student populations of which 20 percent or more come 
from families with incomes below the poverty line.
    New section 5243--State Distribution of Funds. This section 
describes the authorized uses of funds and provides that the 
State educational agency may distribute funds to local 
educational agencies on a competitive basis or on the basis of 
a formula based on the number of students in average daily 
attendance at the eligible local educational agency.
    New section 5244--Applications. This section requires each 
State educational agency or local educational agency in a non-
participating State to submit an application to the Secretary 
of Education. The application shall, at a minimum, include 
measurable goals and objectives, including specific goals and 
objectives relating to increased student academic achievement, 
decreased student drop out rates, or other factors.
    New section 5245--Accountability. This section requires 
each State educational agency to prepare and submit to the 
Secretary an annual report that describes the method that funds 
were distributed to local educational agencies, how the funds 
were used by these agencies, and the degree to which the State 
made progress toward meeting the goals and objectives described 
in the application. The section also provides that a 
participating local educational agency that receives a grant 
under this subpart may not continue to participate if after 3 
years it has not improved student academic achievement.
    New section 5246--Supplement Not Supplant. This section 
provides that funds shall be used to supplement and not 
supplant other Federal, State, or local education funds.
    New section 5247--Special Rule. This section provides that 
no local educational agency may concurrently participate in 
both chapter 1 and chapter 2.
            Subpart 3--Waivers
    Section 5251--Waivers of Statutory and Regulatory 
Requirements. Section 5251(a) gives the Secretary waiver 
authority.
    Section 5251(b) describes the waiver process. A State 
educational agency, local educational agency, or Indian tribe 
seeking a waiver will submit a waiver request to the Secretary 
that identifies the Federal programs affected by the waiver, 
describes which Federal requirements are to be waived and how 
the waiving will improve quality of instruction or improve 
student academic performance, (if applicable) describes which 
similar State and local requirements will be waived, describes 
specific outcomes for all students, and describes how schools 
will continue to provide assistance to the same populations 
served by programs for which waivers are requested.
    Section 5251(c) specifies that the Secretary shall not 
waive certain statutory or regulatory requirements that pertain 
to the following: allocation of funds to States, local 
educational agencies, or other recipients; maintenance of 
effort; comparability of services; use of Federal funds to 
supplement (not supplant) non-Federal funds; equitable 
participation of private school students and teachers; parental 
participation and involvement; applicable civil rights 
requirements; charter school requirements; prohibitions 
regarding State aid or use of funds for religious worship or 
instruction; or the selection of a school attendance area or 
school under subsections (a) and (b) of section 1113 (except 
that the Secretary may grant a waiver to allow a school 
attendance area or school to participate in activities under 
part A of title I if the percentage of children from low-income 
families in the school attendance area of such school or who 
attend such school is not less than 10 percentage points below 
the lowest percentage of such children for any school 
attendance area or school within the local educational agency 
that meets the requirements of subsections (a) and (b) of title 
1).
    Section 5251(d) establishes that an approved waiver under 
this section may be for 3 years. The Secretary may extend the 
period of time for the waiver if the Secretary determines that 
the waiver has been effective and the waiver is in the public 
interest.
    Section 5251(e) requires a local educational agency that 
receives a waiver under this section to submit a report to the 
State educational agency at the end of the second year and each 
subsequent year for which a waiver is received. This section 
also requires a State educational agency that receives local 
educational reports to submit a report to the Secretary. In 
addition, the Secretary is also required to submit a report to 
the House and Senate education committees summarizing the use 
of waivers and whether the waivers increased the quality of 
instruction or student academic performance.
    Section 5251(f) authorizes the Secretary to terminate a 
waiver if the Secretary determines that the waiver has been 
inadequate or if the waiver is no longer necessary to achieve 
its original purposes.
    Section 5251(g) requires that a notice of the Secretary's 
decision to grant each waiver will be published in the Federal 
Register.
            Subpart 4--Innovative education program strategies
    Section 5301--Purpose; State and Local Responsibility. 
Section 5301(a) lists the purposes of subpart 4 which are: to 
support local and state education reform efforts; to provide a 
continuing source of innovation and educational improvement, 
including support for library services and instructional and 
media materials; and to develop education programs to 
improveschool, student, and teacher performance including 
professional development and class size reduction programs.
    Section 5301(b) specifies that the administration of these 
funds are the responsibility of the State educational agencies 
and the responsibility for design and implementation of the 
programs rests primarily with local educational agencies.
    Section 5302--Authorization of Appropriations; Duration of 
Assistance. Section 5302(a) authorizes $850 million for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    Section 5302(b) authorizes the Secretary to make payments 
to State educational agencies in accordance with the purposes 
described under section 5301(a).
    Section 5303--Definition of Effective Schools Program. 
Section 5303 describes an effective schools program as: 
promoting school-level planning; instructional improvement; and 
staff development for all personnel; and increasing academic 
performance for all children.

Chapter 1--State and local programs

    Section 5311--Allotment to States. Section 5311(a) 
specifies the percentage of funds reserved for the outlying 
areas for subpart 4 activities.
    Section 5311(b) establishes the State allotment formula.
    Section 5311(c) defines ``school-age population'' and 
``State'' as they apply to State allotment.
    Section 5312--Allocation to Local Educational Agencies. 
Section 5312(a) describes the allocation of funds to local 
educational agencies.
    Section 5312(b) describes the calculation of enrollments.
    Section 5312(c) specifies the distribution of funds from 
the State educational agency to the local educational agency.

Chapter 2--State programs

    Section 5321--State Uses of Funds. Section 5321(a) 
authorizes the State educational agency activities which 
include: State administration; support for planning and 
implementing charter schools; support for designing and 
implementing student assessments; support for State and local 
standards implementation; and technical assistance.
    Section 5321(b) specifies the amount of funds available for 
State administration.
    Section 5322--State Applications. Section 5322(a) specifies 
the State application requirements.
    Section 5322(b) specifies that the State application is for 
a period of 3 years and may be amended annually.
    Section 5322(c) specifies that a local educational agency 
that receives less than an average of $10,000 under this part, 
for 3 years will not be audited more than once every 5 years.

Chapter 3--Local innovative educational programs

    Section 5331--Targeted Use of Funds. Section 5331(a) 
establishes that local educational agencies shall use the funds 
awarded under chapter 1 for innovative assistance.
    Section 5331(b) describes an array of activities, programs, 
and initiatives that may be used for innovative assistance. 
These include: programs for the acquisition of instructional 
and educational materials (such as library services, media 
materials, and assessments); professional development programs; 
activities designed to advance student performance; parental 
involvement initiatives; programs to reduce class size; 
programs to improve academic performance of educationally 
disadvantaged students; expansion of best practice models; 
literacy programs; technology activities; school improvement 
programs; activities for gifted and talented students; programs 
to provide same gender schools or classrooms; service learning 
programs; and school safety programs. All activities shall be: 
tied to promoting high academic standards; used to improve 
student performance; and part of an overall education reform 
strategy.
    Section 5332--Administrative Authority. Section 5332 allows 
a State educational agency or a local educational agency to 
enter into grants or contracts with higher education 
institutions, libraries, museums, and public and private 
nonprofit entities.
    Section 5333--Local Application. Section 5333(a) specifies 
the contents of a local educational agency application.
    Section 5333(b) specifies that the local educational agency 
application shall be for a period of 3 years and may be amended 
annually.
    Section 5333(c) gives the local educational agency complete 
discretion in determining how funds are expended at the local 
level.

Chapter 4--General administrative provisions

    Section 5341--Maintenance of Effort; Federal Funds 
Supplementary. Section 5341(a) describes maintenance of effort 
requirements.
    Section 5341(b) specifies that a State or local educational 
agency may only use funds received under this subpart to 
supplement (not supplant) other funding sources.
    Section 5342--Participation of Children Enrolled in Private 
Schools. Section 5342(a) specifies that State education 
agencies shall provide benefit for children enrolled in private 
schools with programs or projects under this subpart.
    Section 5342(b) describes expenditures of funds under this 
subpart for children enrolled in private schools.
    Section 5342(c) requires that the funds provided under this 
subpart must be controlled by a public agency and that public 
agency employees must provide the services.
    Sections 5342(d) through (i) describes the arrangement for 
provision of services to private school children if a State or 
local educational agency, through either State or local law, is 
prohibited from providing services.
    Section 5343--Federal Administration. Section 5343(a) 
requires the Secretary, upon request, to provide technical 
assistance to State and local educational agencies.
    Section 5343(b) gives the Secretary authority to issue 
regulations.
    Section 5343(c) requires that funds become available on 
July 1 of each fiscal year.

Part C--Flexibility in the use of administrative and other funds

    Section 5401--Consolidation of State Administrative Funds 
for Elementary and Secondary Education Programs. Section 
5401(a) establishes the process for a State educational agency 
to consolidate administrative funds if the State educational 
agency chooses the consolidation process.
    Section 5401(b) establishes that a State educational agency 
may use consolidated administrative funds for activities that: 
strengthen coordination of programs; disseminate model programs 
and practices; and provide technical assistance.
    Section 5401(c) provides for consolidated recordkeeping for 
State educational agencies that consolidate administrative 
funds.
    Section 5401(d) requires the Secretary to review State 
educational agencies that consolidate administrative funds.
    Section 5401(e) enables a State educational agency that 
does not use all of its administrative funds to use those 
remaining funds for program activities.
    Section 5401(f) gives a State educational agency the 
ability to consolidate funds for standards and assessment 
development as described under title I of this act.
    Section 5402--Single Local Educational Agency States. 
Section 5402 requires a State educational agency that also 
serves as a local educational agency to describe how 
duplication of administrative functions will be eliminated.
    Section 5403--Consolidation of Funds for Local 
Administration. Section 5403(a) establishes that a local 
educational agency may consolidate administrative funds.
    Section 5403(b) requires the State educational agency to 
establish procedures for responding to requests from local 
educational agencies to consolidate administrative funds.
    Section 5403(c) specifies the conditions for a local 
educational agency to consolidate administrative funds.
    Section 5403(d) describes the use of administrative funds 
for a local educational agency that chooses to consolidate 
administrative funds.
    Section 5403(e) provides for consolidated recordkeeping for 
local educational agencies that consolidate administrative 
funds.
    Section 5404--Administrative Funds Studies. Section 5404(a) 
requires the Secretary to conduct an evaluation of State and 
local uses of administrative funds for programs covered under 
this act.
    Section 5405--Consolidated Set-Aside for Department of the 
Interior Funds. Section 5405 establishes a transfer of funds 
mechanism to the Department of Interior for those consolidated 
funds pertaining to part A of title VII and to subtitle B of 
title VII of the Stewart B. McKinney Homeless Assistance Act.
    Section 5406--Availability of Unneeded Program Funds. 
Section 5406 allows a local educational agency to transfer not 
more than 5 percent of a program's unused funds to another 
program.

Part D--Coordination of programs; consolidated State and local plans 
        and applications

    Section 5501--Purpose. Section 5501 describes the purpose 
for coordinating and consolidating State and local plans and 
applications.
    Section 5502--Optional Consolidated State Plans or 
Applications. Section 5502(a) establishes the authority for 
compiling consolidated State plans or applications.
    Section 5502(b) requires the Secretary to collaborate with 
State educational agencies, local educational agencies, public 
and private entities, parents, students, and teachers to 
establish criteria and procedures for consolidated planning.
    Section 5503--General Applicability of State Educational 
Agency Assurances. Section 5503(a) requires a State educational 
agency that submits a consolidated plan to have on file with 
the Secretary a single set of assurances that are applicable to 
each program.
    Section 5503(b) establishes that section 441 of the General 
Education Provisions Act does not apply to programs under this 
act.
    Section 5504--Additional Coordination. Section 5504(a) 
directs the Secretary to seek coordination of programs with 
other members of the Cabinet for the purpose of enhancing 
coordination and reducing administrative burdens.
    Section 5505--Consolidated Local Plans or Applications. 
Section 5505(a) enables a local educational agency to submit a 
consolidated plan or application to a State educational agency.
    Section 5505(b) specifies that a State educational agency 
that has submitted and had approved a consolidated State plan 
or application may require local educational agencies in the 
State to submit consolidated local plans.
    Section 5505(c) requires a State educational agency to 
collaborate with local educational agencies in establishing 
procedures for the submission of consolidated plans and 
applications.
    Section 5505(d) specifies that a State educational agency 
will require a local educational agency to submit only 
necessary material as part of its plan or application.
    Section 5506--Other General Assurances. Section 5506(a) 
requires any applicant that submits a plan under this Act to 
have on file, with the State educational agency, a set of 
assurances for each program for which a plan or application has 
been submitted.
    Section 5506(b) specifies that section 442 of the General 
Education Provisions Act does not apply to programs under this 
act.

Part E--Advanced placement programs

    Section 5601--Short Title. This section specifies that part 
E may be cited as the ``Access to High Standards Act.''
    Section 5602--Findings and Purposes. This section states 
the findings and purposes of this part. The purposes are to 
encourage more of the students who take advanced placement 
courses to take the exam; to build on the benefits of advanced 
placement programs for students; to support State and local 
efforts to raise academic standards through advanced placement 
programs; to increase the availability and broaden the range of 
schools that have advanced placement programs; to build on 
present State programs and demonstrate that larger and more 
diverse groups of students can participate and succeed in 
advanced placement courses; to provide greater access to 
advanced placement courses; to provide access to advanced 
placement courses for students in schools that do not offer the 
courses; and to increase the participation of low-income 
individuals in taking advanced placement tests.
    Section 5603--Funding Distribution Rule. This section 
authorizes the Secretary to give priority to funding activities 
under the Advanced Placement Incentive Program (section 5606) 
and to distribute 70 percent of remaining funds to carry out 
Advanced Placement Program Grants (section 5604) and 30 percent 
to carry out Online Advanced Placement Courses (section 5605).
    Section 5604--Advanced Placement Program Grants. This 
section authorizes the Secretary to award grants on an annual 
basis for a period of 3 years to State educational agencies and 
local educational agencies in order to expand access for low-
income individuals to advanced placement incentive programs 
that involve teacher training; pre-advanced placement course 
development; curriculum coordination and articulation between 
grade levels that prepare students for advanced placement 
courses; curriculum development; books and supplies; and other 
activities. All entities seeking a grant shall submit an 
application to the Secretary. Those entities receiving grants 
shall annually report to the Secretary: the number of students 
taking advanced placement courses; the number of advanced 
placement tests taken by students; the scores on the advanced 
placement tests; and demographic information regarding 
individuals taking the advanced placement courses. The 
Secretary shall annually compile the information and submit a 
report to Congress.
    Section 5605--On-Line Advanced Placement Courses. This 
section authorizes the Secretary to award grants, on a 
competitive basis, to State educational agencies to enable them 
to award grants to local educational agencies to provide 
students with on-line advanced placement courses. State 
educational agencies seeking a grant shall submit an 
application to the Secretary and in awarding grants, priority 
should be given to local educational agencies that: serve high 
concentrations of low-income students; serve rural areas; and 
would not otherwise have access to on-line advanced placement 
courses. Grant funds may be used to purchase on-line curriculum 
or course materials and to train teachers.
    Section 5606--Advanced Placement Incentive Program. This 
section authorizes the Secretary to award grants to State 
educational agencies in order to reimburse low-income 
individuals to cover part or all of the costs of advanced 
placement test fees. If an excess of funds exists, State 
educational agencies may use the grant funds to increase the 
enrollment of low-income individuals in advanced placement 
courses; the participation of low-income individuals in 
advanced placement courses; and the availability of advanced 
placement courses in schools serving high-poverty areas. Grant 
funds shall supplement and not supplant other non-Federalfunds 
that are available to assist low-income individuals in paying 
for the cost of advanced placement test fees.
    Section 5607--Definitions. This section provides the 
meanings of certain terms used in this part, including: 
``advanced placement incentive program,'' ``advanced placement 
test,'' ``high concentration of low-income students,'' ``low-
income individual,'' ``institution of higher education,'' and 
``State.''
    Section 5608--Authorization of Appropriations. This section 
authorizes $50 million for fiscal year 2002 and such sums as 
may be necessary for each of the 6 succeeding fiscal years.
    Section 601--Parental Involvement and Accountability. This 
section renames title VI as ``PARENTAL INVOLVEMENT AND 
ACCOUNTABILITY'' and amends the title to read as follows:

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

Part A--Parental assistance

    New Section 6101--Parental Information and Resource 
Centers. This section states the purpose of this part which is 
to: (1) provide leadership, technical assistance, and financial 
support to nonprofit organizations and local educational 
agencies to help implement successful and effective parental 
involvement policies, programs, and activities; (2) strengthen 
partnerships among parents, teachers, principals, 
administrators, and other school personnel; (3) develop and 
strengthen the relationship between parents and the schools; 
(4) further the developmental progress of children; and (5) 
coordinate activities funded under this part with other 
parental involvement initiatives in the act.
    New Section 6101(b) authorizes the Secretary to award 
grants (while ensuring geographic distribution of grants) to 
nonprofit organizations, or consortia of nonprofits and local 
educational agencies, to establish school-linked or school-
based parental information and resource centers to provide 
training, information, and support to parents of elementary and 
secondary school students, individuals who work with parents, 
and organizations that carry out parent education and family 
involvement programs.
    New Section 6102--Applications. This section requires 
agencies and organizations seeking grants under this part to 
submit an application to the Secretary which must include a 
broad range of assurances. Each organization or consortium 
receiving a grant will be governed by a board of directors 
which includes parents or organizations that represent parents. 
At least \1/2\ of the overall funding provided each fiscal year 
must serve areas with high concentrations of low-income 
families.
    New Section 6103--Uses of Funds. This section states that 
grant funds shall be used to: (1) assist parents in 
participating effectively in their children's education; (2) 
obtain information about the range of options, programs, 
services, and resources available at all levels of the 
government to assist parents and school personnel who work with 
parents; (3) help parents learn and use the technology applied 
in their children's education; (4) plan, implement, and fund 
activities for parents that coordinate the education of their 
children with other Federal programs that serve their children; 
and (5) provide support for State or local educational 
personnel if the participation of such personnel will further 
the activities assisted under the grant.
    New Section 6104--Technical Assistance. This section states 
that the Secretary shall provide technical assistance, by grant 
or contract, for the establishment, development, and 
coordination of parent training, information, and support 
programs and parental information and resource centers.
    New Section 6105--Reports. This section requires agencies 
and organizations receiving assistance under this part to 
submit to the Secretary, on an annual basis, information 
concerning parental information and resource centers assisted 
under this part.
    New Section 6105(b) requires the Secretary to annually 
disseminate to the public and the Congress, the information 
that each organization or consortium submits.
    New Section 6106--General Provisions. This section states 
that no person shall be required to participate in a parent 
education or developmental screening program. In addition, no 
program or center assisted under this part shall take any 
action that infringes on the right of a parent to direct the 
education of their children.
    New Section 6107--Authorization of Appropriations. This 
section authorizes a funding level of $50 million for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.

Part B--Improving academic achievement

    New section 6201--Education Awards.
    New section 6210(a) authorizes the Secretary to make 
``Achievement in Education Awards'' to States that, beginning 
with the 2002-2003 school year, make the most progress in 
improving educational achievement. Awards will be made on the 
basis of: (1) the progress of economically disadvantaged and 
minority students in meeting State student performance 
standards as measured by State assessments and (beginning with 
the 2nd year for which data are available for all States) the 
progress of such students on State assessments under the 
National Assessment of Educational Progress (NAEP); (2) overall 
improvement in student achievement as measured by State 
assessments and (beginning with the 2nd year for which data are 
available for all States) the progress of all students onState 
assessments NAEP; (3) improvement in the English proficiency of 
students who enter school with limited English proficiency; (4) 
increased percentage of students who graduate from high school; 
and (5) increased percentage of students who take advanced 
coursework. The Secretary is to give greatest weight to a 
State's success in improving the performance of economically 
disadvantaged and minority students.
    New section 6210(b) permits the Secretary to make 1-time 
bonus payments to States that develop the new assessments 
required by this bill in advance of the deadlines included in 
the bill.
    New section 6210(c) permits the Secretary to make ``No 
Child Left Behind Awards'' to schools that have made greatest 
progress in improving the educational achievement of 
economically disadvantaged students.
    New section 6210(d) permits the Secretary to make awards 
for activities, such as character education, that are designed 
to promote the improvement of elementary and secondary 
education.
    New section 6202--Loss of Administrative Funds. New section 
6202 establishes penalties for States that--based on State 
assessment and State NAEP results--fail to make adequate yearly 
progress and whose economically disadvantaged and minority 
students fail to make statistically significant progress in the 
academic subjects for which the State has developed content and 
student performance standards. If such failure persists for 2 
consecutive fiscal years, the Secretary is required to reduce 
up to 30 percent of the State's administrative funds. If such 
failure persists for 3 or more consecutive fiscal years, the 
Secretary is required to reduce up to 75 percent of the State's 
administrative funds.
    New section 6203--Authorization of Appropriations. New 
section 6203 authorizes $400 million for fiscal year 2002 and 
such sums as may be necessary in the 6 succeeding fiscal years 
to develop and implement the standards and assessments required 
under section 1111 of the act. The section authorizes $110 
million for fiscal year 2002 and such sums as may be necessary 
in the 6 succeeding fiscal years to administer State 
assessments under NAEP. The section authorizes $50 million for 
fiscal year 2002 and such sums as may be necessary in the 6 
succeeding fiscal years for the awards, bonuses, and 
improvement activities authorized under section 6201.

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

    Section 701--Amendment to the Elementary and Secondary 
Education Act of 1965. This section transfers programs 
currently authorized under title IX to title VII, renaming 
Title VII ``Indian, Native Hawaiian, and Alaska Native 
Education'' and amending the title to read as follows:

Part A--Indian education

    Section 7101--Findings. New section 7101 maintains the 
current law statement of findings regarding Indian education.
    Section 7102--Purpose. New section 7102 maintains the 
current law purpose of part A.
            Subpart 1--Formula grants to local educational agencies
    Section 7111--Purpose. New section 7111 maintains the 
current law purpose of subpart 1.
    Section 7112--Grants to Local Educational Agencies. New 
section 7112 maintains current law provisions regarding the 
distribution of grants to local educational agencies and Indian 
tribes.
    Section 7113--Amount of Grants. New section 7113 sets out 
grant awards. The order of the subsections has changed in that 
the subsection related to schools operated or supported by the 
Bureau of Indian Affairs is now subsection (b).
    Section 7114--Applications. New section 7114 maintains the 
current law provisions regarding application requirements.
    Section 7115--Authorized Services and Activities. New 
section 7115 adds 4 new kinds of services and activities to the 
7 services and activities in current law. These activities 
include: activities that promote the incorporation culturally 
responsive teaching and learning strategies; activities that 
incorporate American Indian and Alaska Native specific 
curriculum content; activities that promote coordination and 
collaboration between tribal, Federal, and State public 
schools; and family literacy services. The section also limits 
the amount of funds spent on administrative costs to not more 
than 5 percent.
    Section 7116--Integration of Services Authorized. New 
section 7116 allows local educational agencies which receive 
formula grants under part A the ability 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. Local educational agencies that choose to do this 
will submit a single plan describing how they intend to 
consolidate funding and specifying the student achievement 
goals that they will meet.
    Section 7117--Student Eligibility Forms. New section 7117 
allows the Secretary to use either the count certified by the 
Bureau of Indian Affairs, or the count of the number of 
students for whom the school has eligibility forms when 
awarding grants to tribal schools. It also allows each local 
educational agency to select either a particular date or period 
(up to 31 days) to countthe number of children it will claim 
for purposes of receiving a grant. The choice of the child 
counts allows the schools to avoid the burden of 2 separate 
counts.
    Section 7118--Payments. New section 7118 maintains current 
law provisions dealing with payments by the Secretary to local 
educational agencies.
    Section 7119--State Educational Agency Review. New section 
7119 modifies the current requirements for application review 
by the Secretary (as the requirement that a local educational 
agency must submit an application to the Secretary is already 
in section 7114(a)), while maintaining the requirement that the 
local educational agency must submit the application to State 
educational agency for its possible comments.
            Subpart 2--Special programs and projects to improve 
                    educational opportunities for Indian children
    Section 7121--Improvement of Educational Opportunities for 
Indian Children. New section 7121 maintains the 11 types of 
grants authorized under this section while adding a provision 
for family literacy service and adds 2 new provisions as 
requirements for applications for dissemination grants: that 
the application must include information demonstrating that the 
proposed program is a research-based program, and that the 
application must contain a description of how the applicant 
will incorporate the proposed activities into the ongoing 
school program involved once the grant period is over. New 
section 7121 limits the amount of funds spent on administrative 
costs to not more than 5 percent.
    Section 7122--Professional Development. New section 7122 
modifies the preference for programs that train Indian 
students. The obligation of service has been modified to 
include only those persons who receive pre-service training.
    Section 7123--Fellowships for Indian Students. New section 
7123 maintains current law provisions authorizing the Secretary 
to award fellowships to Indian students for study in graduate 
and professional programs at institutions of higher education.
    Section 7124--Gifted and Talented Indian Students. New 
section 7124 maintains current law provisions authorizing the 
Secretary to establish 2 centers for gifted and talented Indian 
students at tribally controlled community colleges and to 
support demonstration programs relating to gifted and talented 
Indian students.
    Section 7125--Grants to Tribes for Education Administrative 
Planning and Development. New section 7125 maintains current 
law provisions authorizing the Secretary to make grants to 
Indian tribes and tribal organizations approved by Indian 
tribes to develop a centralized tribal administrative entity to 
coordinate education programs and related activities. A funding 
level of $3 million is authorized for each of the fiscal years 
2002 through 2008.
            Subpart 3--Special programs relating to adult education for 
                    Indians
    Section 7131--Improvement of Educational Opportunities for 
Adult Indians. This section maintains current law provisions 
authorizing the Secretary to make grants to State and local 
educational agencies and to Indian tribes, institutions, and 
organizations to support adult education activities.
            Subpart 4--National research activities
    Section 7141--National Activities. New section 7141 
maintains current law provisions authorizing the Secretary to 
conduct research and evaluation activities related to the 
education of Indian children and adults.
            Subpart 5--Federal administration
    Section 7151--National Advisory Council on Indian 
Education. New section 7151 maintains current law provisions 
establishing a National Advisory Council on Indian Education.
    Section 7152--Peer Review. New section 7152 maintains 
current law provisions permitting the Secretary to use a peer 
review process to review applications submitted under subpart 
2, 3, or 4.
    Section 7153--Preference for Indian Applicants. New section 
7153 maintains current law provisions giving preference to 
Indian applications for grants and contracts under subpart 2, 
3, or 4.
    Section 7154--Minimum Grant Criteria. New section 7154 
maintains current law provisions providing that the Secretary 
may approve only applications which are of sufficient size, 
scope, and quality to achieve the objectives of the grant or 
contract and which are based on relevant research findings.
            Subpart 6--Definitions; authorizations of appropriations
    Section 7161--Definitions. New section 7161 maintains 
current law definition of terms applicable to part A.
    Section 7162--Authorization of Appropriations. New section 
7162 authorizes a funding level of $93 million for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years to carry out subpart 1; $20 million for 
fiscal year 2002 and such sums as may be necessary for each of 
the 6 succeeding fiscal years to carry out subparts 2 through 
4. No funds are authorized for carrying out subpart 5.

Part B--Native Hawaiian education

    Section 7201--Short title. New section 7201 provides that 
part B may be cited as the ``Native Hawaiian Education Act''.
    Section 7202--Findings. New section 7202 sets forth 
congressional findings regarding Native Hawaiians and education 
and includes new findings that reflect the new legal position 
of the United States relative to the status of Native Hawaiians 
as set forth in the brief filed by the United States in the 
U.S. Supreme Court on July 28, 1999.
    Section 7203--Purposes. New section 7203 maintains the 
current law purposes related to the education of Native 
Hawaiians.
    Section 7204--Native Hawaiian Education Council and Island 
Councils. New section 7204 authorizes the Secretary to make 
direct grants to Native Hawaiian educational organizations; 
provides that the Native Hawaiian Education Council will be 
reduced to 21 members; changes the composition, appointment, 
terms of Council members; and authorizes seven Island councils, 
so that each island will now have its own council.
    Section 7205--Program Authorized. New section 7205 
consolidates the following programs: the Family-Based Education 
Centers program; the Higher Education program; the Gifted and 
Talented; Curriculum Development, Teacher Training and 
Recruitment program; and Community-Based Education Learning 
Center into a single authority and adds 3 new permissible 
activities: family literacy services; activities which enhance 
beginning reading and literacy among K-3rd grade; and early 
education and care services for children pre-natal to age 5. 
New section 7205 also establishes priorities for the award of 
contracts or grants; includes special rules and conditions; 
provides that qualified Native Hawaiian student attending a 
post-secondary institution outside the State of Hawaii shall 
not be prevented from receiving a fellowship; that individuals 
who receive a fellowship are required to serve the Native 
Hawaiian community either during their fellowship period or 
upon completion of the program of post-secondary education. New 
section 7205 also limits the amount of funds spent on 
administrative costs to not more than 5 percent and authorizes 
$28 million for fiscal year 2002 and such sums as may be 
necessary for the 6 succeeding fiscal years for these 
activities.
    Section 7206--Administrative Provisions. New section 7206 
maintains current law provisions relating to applications for 
funds.
    Section 7207--Definitions. New section 7207 maintains 
current law definitions applicable to part B.

Part C--Alaska Native education

    Section 7301--Short Title. New section 7301 provides that 
part C may be cited as the ``Alaska Native Educational Equity, 
Support, and Assistance Act''.
    Section 7302--Findings. New section 7302 maintains current 
law findings related to Alaska Native education.
    Section 7303--Purposes. New section 7303 maintains the 
current law purposes of part C.
    Section 7304--Program Authorized. New section 7304 
consolidates the following programs serving Alaska Native 
children and adults: The Educational Planning, Curriculum, 
Development, Teacher Training, and Recruitment program; Home-
Based Education for Preschool Children program; and Student 
Enrichment Programs into a single authority and adds family 
literacy services as an additional activity. New section 7304 
also limits the amount of funds spent on administrative costs 
to not more than 5 percent and authorizes $17 million for 
fiscal year 2002 and such sums as may be necessary for the 6 
succeeding fiscal years for these activities.
    Section 7305--Administrative Provisions. New section 7305 
maintains current law provisions relating to applications for 
funds.
    Section 7306--Definitions. New section 7306 maintains 
current law definitions applicable to part C.
    Section 702--Conforming Amendments. This section of the 
bill provides for conforming amendments to references in other 
acts, reflecting the transfer of title IX programs to the new 
title VII.

                          TITLE VIII--REPEALS

    Section 801(a) of the bill repeals titles IX through XIV of 
the Elementary and Secondary Education Act of 1965.
    Section 801(b) of the bill repeals the Goals 2000: 
Education America Act.

                   TITLE IX--MISCELLANEOUS PROVISIONS

    Section 901--Independent Evaluation. Section 901 amends the 
act by adding a new ``TITLE IX--MISCELLANEOUS PROVISIONS'' and 
``Part A--INDEPENDENT EVALUATION''.

Part A--Independent evaluation

    Provisions of the new Title IX, Part A include:
    Section 9101--In General. New Section 9101 authorizes the 
Secretary to award a grant to the Board on Testing and 
Assessment of the National Research Council of the National 
Academy of Sciences in order to conduct an ongoing evaluation 
of high stakes assessments used by a representative sample of 
state and local educational agencies. The evaluation shall be 
conducted in consultation with the Department and shall not 
exceed 4 years in duration. The evaluation shall be based on a 
research design designed by the board, in consultation with 
others. The evaluation shall address at least the 3 components 
described in section 9102.
    Section 9102--Components Evaluated. New Section 9102 
describes the 3 components mentioned in Section 9101.
    Section 9102 (1) establishes Students, Teachers, Parents, 
Families, Schools, and School Districts as a component to be 
addressed by the evaluation. The evaluation of this component 
shall include: overall change in what students are learning 
based upon independent measures; changes in course offerings, 
teaching practices, course content, and instructional material; 
measures of teacher satisfaction with the assessments; changes 
in rates of teacher and administrator turnover; changes in 
dropout, grade retention, and graduation rates for students; 
the relationship of student performance on the assessments to 
school resources, teacher and instructional quality, or such 
factors as language barriers or construct-irrelevant 
disabilities; changes in the frequency of referrals for 
enrichment opportunities, remedial measures, and other 
consequences; changes in student post-graduation outcomes, 
including admission to, and signs of success at colleges, 
community colleges or technical school training programs; cost 
of preparing for, conducting, and grading the assessments in 
terms of dollars expended by; the school district and time 
expended by students and teachers; changes in funding levels 
and distribution of instructional and staffing resources for 
schools based on the results of the assessments; purposes for 
which the assessments or components of the assessments are used 
beyond what is required under part A of title I, and the 
consequences for students and teachers because of those uses; 
differences in the areas studied under this section between 
high poverty and high concentration minority schools and school 
districts, and schools and school districts with lower rates of 
poverty and minority students; and the level of involvement of 
parents and families in the development and implementation of 
the assessments and the extent to which the parents and 
families are informed of assessment results and consequences.
    Section 9102 (2) establishes Students With Disabilities as 
a component to be addressed by the evaluation. The evaluation 
of this component shall include: the overall improvement or 
decline in academic achievement for students with disabilities; 
the numbers and characteristics of students with disabilities 
who are excluded from the assessments, and the number and type 
of modifications and accommodations extended; changes in the 
rate of referral of students to special education; changes in 
attendance patterns and dropout, retention, and graduation 
rates for students with disabilities; changes in rates at which 
students with disabilities are retained in grade level; changes 
in rates of transfers of students with disabilities to other 
schools or institutions; and the level of involvement of 
parents and families of students with disabilities in the 
development and implementation of the assessments and the 
extent to which the parents and families are informed of 
assessment results and consequences.
    Section 9102 (3) establishes Low Socio-Economic Students, 
Limited English Proficient Students, and Minority Students as a 
component to be addressed by the evaluation. The evaluation of 
this component shall include: the overall improvement or 
decline in academic achievement for such students; the numbers 
and characteristics of such students excused from taking the 
assessments, and the number and type of modifications and 
accommodations extended to such students; changes in the rate 
of referral of such students to special education; changes in 
attendance patterns and dropout and graduation rates for such 
students; changes in rates at which such students are retained 
in grade level; changes in rates of transfer of such students 
to other schools or institutions; and the level of involvement 
of parents and families of low socio-economic students, and 
racial and ethnic minority students in the development and 
implementation of the assessments and the extent to which the 
parents and families are informed of assessment results and 
consequences.
    Section 9103--Reporting. New Section 9103 requires the 
Secretary to make public the results of the evaluation each 
year and to report the findings of the evaluation to Congress 
and to the States, not later than 2 months after completion of 
the evaluation.
    Section 9104--Definitions. New Section 9104 provides 
definitions for the terms ``High Stakes Assessment,'' and 
``Standardized Test''.
    Section 9105--Authorization of Appropriations. New Section 
9103 authorizes $4 million for fiscal year 2002. The funds 
shall remain available until expended.

                          IX. ADDITIONAL VIEWS

                              ----------                              

              ADDITIONAL VIEWS OF SENATOR MICHAEL B. ENZI

    First, I want to applaud the entire Committee for 
unanimously advancing this important bill before the full 
Senate. We invested tremendous resources in attempting to 
reauthorize ESEA last year, and I am pleased that we have made 
it our first priority this year. I am also impressed with the 
support of the new Administration in seeing President Bush's 
number one priority take the next step in the legislative 
process.
    This education reform bill reflects an understanding of the 
variation in needs between urban, suburban, and rural schools. 
The bill arguably addresses the concerns of all stakeholders in 
our children's education, and it does so in a bipartisan way. I 
believe the bill has struck a meaningful compromise and 
reflects a strong but appropriate role for the federal 
partnership in elementary and secondary education.
    The state of Wyoming has invested tremendous amounts of 
time and money in developing high standards of learning, 
reliable assessments, strong parental involvement initiatives 
and other research-based education innovations. This bill 
builds upon that work and solidifies the shared commitment to 
academic achievement for all children.
    However, the state of Wyoming is currently facing a crisis 
in education--a teacher shortage. It's not about class size, 
though. It's about teacher salaries and a dwindling supply of 
qualified educators, particularly in light of the high new 
standards which students must meet. But, this is a problem 
where there is a federal role in the solution. Under Title II 
of our bill, the focus is not only on preparing teachers, but 
on helping schools recruit and retain high quality teachers. 
Reducing class sizes will be an allowable use of funds under 
this Title, if that's the unique need of a particular school.
    The bill also emphasizes the need to improve access to 
education technology and to USE it in the process of improving 
academic achievement. The goal of eliminating the duplicative 
administrative application process and allowing schools to have 
one pot of funds for the range of technology uses, including 
teacher and administrative staff training, will make a 
difference. The digital divide will shrink and technology will 
become even more relevant as an educational tool.
    Very importantly, the bill clarifies the purpose of the 
President's requirement that states expand existing assessments 
and take on the new practice of participating annually in the 
NAEP test (National Assessment of Educational Progress). Those 
clarifications go a long way in addressing the fundamental 
concern by all parties that the federal government not enact 
additional unfunded mandates, and that the states continue to 
retain the flexibility to design their own standards of 
learning for students, versus nationalized standards or 
assessments.
    And, while not a part of this reauthorization, we would be 
remiss in meeting our commitment to the education of all 
children if we do not also prioritize full funding of the 
Individuals with Disabilities Education Act as we advocate for 
meaningful education reform. I look forward to this Committee's 
continued support for strong increases in funding for IDEA. 
Funding this important but costly federal requirement is as 
critical as requiring academic success in our classrooms.
    I look forward to seeing this bill through the legislative 
process and am committed to enacting a reform measure that puts 
children first.
    Additional Views of Senators Kennedy, Harkin, Bingaman, Murray, 
         Edwards, Dodd, Mikulski, Wellstone, Reed, and Clinton

    Ninety percent of American children attend public schools. 
We owe it to them to ensure that every public school and every 
teacher is able to help all school children in the nation reach 
their full potential.
    Few issues are as important as education. Democrats believe 
Congress should help all children meet high standards of 
achievement by strengthening federal support for innovative 
reforms and demanding tough accountability for results for our 
children.
    Seven years ago, Congress and President Clinton took urgent 
steps to turn around failing schools. With passage of the GOALS 
2000 legislation in 1994, and the reauthorization of the 
Elementary and Secondary Education Act that same year, we 
established bold new goals for schools to prepare children to 
succeed in today's world by mastering the basics and reaching 
high standards of achievement.
    These were important actions that launched changes in 
schools across America. Now we need to build on this progress. 
More change is necessary--much more--if we are to turn around 
failing schools and give our children the education they need 
and deserve.
    Democrats and Republicans alike agree that no child should 
be left behind--regardless of background, race, or gender, or 
whether a child is homeless, a child of a migrant worker, or an 
immigrant. Every child has the right to a high-quality 
education.
    We commend President Bush for identifying education as one 
of his early priorities, and for encouraging Congress to act on 
needed reforms. We share the Administration's goals of greater 
help for local schools to meet the most urgent needs, and 
holding schools accountable for the results.
    As we move forward on today's reforms, Democrats believe 
that we need to meet five important goals:
          Targeting resources to high-need districts;
          Holding schools accountable for substantial progress 
        and improved student achievement;
          Providing our children and teachers with smaller 
        classes in safe, modern school buildings;
          Ensuring that our children will have qualified 
        teachers in every classroom and a qualified principal 
        in every school;
          Helping communities and schools provide research-
        based programs that support learning--such as parent 
        involvement, after-school programs, technology in the 
        classroom and early reading programs.
    In approving the BEST Act, we believe the Committee took a 
major step towards strengthening and expanding the federal 
helping hand to support these kinds of innovations, and to help 
all children meet high standards of achievement. The 
centerpiece of the bill is new testing and accountability 
measures that will help parents, educators, and community 
members gauge how well our children are learning.
    The Committee took a major step forward in adopting the 
essential elements of Senator Bingaman's accountability bill 
and President Bush's testing and accountability plan.
    We are also pleased that the bill includes dedicated funds 
for turning around failing schools--a strong step towards 
ensuring that more underserved children get the extra 
assistance they need to succeed in school. We know that these 
reforms can work and we want to ensure every school succeeds.
    But, we must remember that tests and accountability are 
simply the measure of reforms--they are not the reforms 
themselves. Tests don't put a qualified teacher in the 
classroom. Tests don't reduce class size. Tests don't make 
schools safer or stop a building from crumbling.
    Therefore, as this legislation moves forward, it is 
essential to strengthen it through measures to provide students 
and teachers with the support they need to succeed. We must 
ensure that teachers are guaranteed funding for professional 
development and mentoring; that communities are guaranteed 
funds to continue to reduce class sizes; and that communities 
get the continued help they need to meet their most urgent 
repair and renovation needs.
    But, we know that to achieve these much needed reforms, 
communities require additional resources to implement reform. 
We must ensure that our efforts to authorize additional 
resources will not become an empty promise when it's time to 
make tough choices on the national budget and in the 
appropriations process. Real change in education requires real 
investments.
    We are deeply concerned that the President's budget 
contains little more than a cost of living increase for our 
nation's schools, and few new investments to improve them.
    Democrats hope that as the full Senate acts on education in 
the coming weeks, we will put ourselves to the test to work 
together to pass a bipartisan reauthorization of ESEA and a 
bipartisan budget that significantly increases funding for 
education. We should hold ourselves to a high standard of 
accountability for achieving those goals.
    Public education is one of the finest achievements of 
American democracy, and one of the most critical investments we 
can make to ensure a bright future for the nation's children. 
We look forward to working with the President and colleagues on 
both sides of the aisle to move forward on strong reforms with 
solid support. We owe the nation's children no less.

Strengthening accountability for better student achievement

    We applaud the bill's adoption of new requirements for 
statewide accountability systems based on each state's 
standards and assessments. The Committee also adopted 
Democratic proposals to hold states, districts, and schools 
accountable for real achievement progress for all students, and 
to require states, districts, and schools to set specific, 
measurable goals for improvement that ensure that all students 
will be proficient on state standards within 10 years. The bill 
also requires school report cards to inform parents about the 
quality of their schools and the progress toward meeting 
student achievement goals. Report cards are required at the 
state, district, and school levels on the results of the 
assessments as well as the number of students excluded from 
assessments. We are concerned that the bill did not adopt our 
proposal to report the results for prior years so that parents 
could clearly monitor a school's progress, or to report teacher 
qualifications and drop out rates.
    Another significant addition to the bill that will help 
shine the light on the efforts of our states and districts to 
turn around failing schools is the requirement that states 
report the names and numbers of low-performing schools, and the 
steps that states are taking to meet their responsibility to 
help such schools improve. This is an important and common-
sense provision to address the fact that the Department of 
Education does not have an exact accounting of this type of 
information. We also support measures in Title I that provide 
parents the right to know the qualifications of their 
children's teachers.
    Importantly, the bill adopts the President's and our 
proposal to require that assessment results be disaggregated 
for various student groups. Disaggregation of results ensures 
that existing achievement gaps are closed between disabled 
students, students with limited English proficiency, migrant 
students, or minority students and the rest of the student 
population.
    We are also pleased that the Committee has adopted the 
essential elements of Senator Edwards' School Support and 
Improvement Act of 2001. We believe that appointing specially 
trained support or assistance teams is a proven effective 
practice to help low-performing schools get back on track. By 
requiring states to make these teams a priority in their 
efforts to turn around their low-performing schools, we can 
help ensure that every child across the nation has access to a 
quality public school.
    Democrats also have serious concerns that the bill does not 
effectively address the issue of the quality of assessments. 
The Independent Review Panel on Title I has reported to 
Congress that ``many states use assessment results from a 
single test--often traditional multiple choice tests. Although 
these tests may have an important place in state assessment 
systems, they rarely capture the depth and breadth of student 
knowledge reflected in state content standards.'' The report 
goes on to say that ``better assessments for instructional and 
accountability purposes are urgently needed.''
    Democrats are concerned that there is insufficient emphasis 
in this bill on ensuring that states develop the high quality 
assessments that are so critical to any accountability system. 
We believe that it is most important to ensure that quality, 
rather than quantity or speed in completing assessments, should 
be the top priority in this legislation because accountability 
systems will only be as effective as the measurements they 
include. In order to ensure that tests are of high quality, 
states should be required to present evidence that the 
assessments they use are of adequate technical quality for 
every purpose for which they are used including high stakes 
purposes for individual students.
    It is also critical that states align assessments with 
their standards and curriculum. The best assessments measure 
the range and depth of student knowledge and should include 
more than just multiple choice questions. They should also 
include performance-based approaches to testing in all subjects 
assessed to measure higher order thinking skills and 
understanding.
    Democrats believe that an important element of the 
Committee bill is the manner in which it measures ``annual 
yearly progress.'' Under the bill, we are pleased that such 
progress is measured not only by test results, but also reduced 
drop-out rates and other measures of student achievement. 
States should do all they can to obtain a complete picture of 
student achievement and school success by using multiple 
indicators of student achievement.
    In addition, we are pleased that the Committee adopted 
Senator Wellstone's amendment authorizing a National Research 
Council study on the impact of high stakes tests on students, 
teachers, and curricula. As the use of high stakes tests 
becomes more widespread, it is critical for policy makers to 
understand better how they effect student learning.
    However, the Democrats believe strongly that assessments 
and accountability are critical, but they are only a part of 
education reform. Assessments must be accompanied by 
significant investments in the programs we know work, so that 
students have the opportunity to do well on the tests and 
schools have the resources to address the learning gaps the 
tests reveal. We will not be able to achieve real education 
reform unless we do much more to fund schools' capacity to 
teach students well and to help those who are not doing well.

Targeting funds to the neediest students

    We believe that providing every child with a world-class, 
high quality education requires both a serious investment in 
school reform and a rigorous insistence on educational results. 
The Committee-reported BEST Act makes significant strides in 
insisting on results. But much more work remains to be done by 
Congress to ensure an adequate investment in school reform.
    The federal investment in school reform should be of 
sufficient size and focus to provide disadvantaged children the 
best chance at educational success. Children can learn to high 
standards, but not all children face the same challenges in 
achieving that goal.
    Targeting education resources to high-need areas is a 
necessity. Since its inception more than 35 years ago, Title I 
has recognized that children in poverty are at a unique 
educationaldisadvantage. What has become increasingly clear 
since ESEA was first enacted is that poor children living in 
poor communities are at an even larger disadvantage. They have 
heightened educational needs and their schools have fewer 
resources to meet those needs.
    If we fail to invest sufficient resources in high-need 
schools and districts, we support the status quo and support 
failure. We can and should do better. The Committee bill 
provides the authority for Congress to make significant 
investments in proven effective reforms targeted to the 
neediest communities. Now we must ensure that Congress and the 
Administration actually provide those investments.

Focusing on reading well early

    We commend President Bush and Chairman Jeffords for their 
leadership in making child literacy a priority and developing 
this strong legislation. We also commend the First Lady for her 
remarkable commitment to helping all children learn to read.
    Learning to read well is the cornerstone of every child's 
education. We know that reading skills are fundamental to 
effective learning in all subjects. The ability to read 
effectively is the gateway to opportunity and success 
throughout life.
    Many successful programs are helping children learn to read 
well. But too often, the best programs are not available to all 
children. As a result, large numbers of children are denied the 
opportunity to learn to read well. Forty percent of 4th grade 
students do not achieve the basic reading level, and 70 percent 
of 4th graders are not proficient in reading.
    Children who fail to acquire basic reading skills early in 
life are at a disadvantage throughout their education and later 
careers. They are more likely to drop out of school and to be 
unemployed. We need to do more to ensure that all children 
learn to read well--and learn to read well early--so they have 
a greater chance for successful lives and careers.
    In October 1996, President and Mrs. Clinton initiated a new 
effort to call national attention to child literacy by 
proposing the ``America Reads Challenge.'' Many of us in 
Congress strongly supported their call for increased aid for 
reading tutors and other steps to improve child literacy. 
Today, over 1,000 colleges and universities are committed to 
the ``America Reads Work Study Program,'' and 59 of these 
institutions are in Massachusetts.
    Their efforts led to the successful bipartisan passage of 
the Reading Excellence Act in 1998 that gave priority to 
professional development in research-based techniques for 
improving children's reading skills.
    The committee bill builds on the Reading Excellence Act and 
is a major step toward meeting the goal of helping every child 
learn to read early in life. It embraces President Bush's 
proposal to expand the Reading Excellence Act by tripling 
funding for it, and by creating a new Early Reading First pilot 
program to help children get the reading skills they need 
before they are of school age. It provides children, parents, 
schools, and communities with the resources and opportunities 
they need to improve child and family literacy--and the help 
can't come a minute too soon.
    The BEST Act recognizes that teachers must have adequate 
resources and proper training to teach reading well. Teachers 
often must provide special assistance to children who are 
having difficulty learning to read. Too often, teachers lack 
the time, the skills, and the resources to provide children 
with that assistance. The act creates new opportunities for 
teachers to obtain the training they need to teach reading 
effectively.
    The committee bill encourages local school districts to 
build partnerships and work in cooperation with community 
organizations and state agencies. It ensures that local, State, 
and national efforts to improve literacy are coordinated, and 
that the most effective resources and practices are used to 
meet the needs of children. It also provides communities with 
support to provide children with trained tutors to give them 
the opportunity to practice reading with adults.
    Children whose parents are involved in their education, who 
read to them, and who work with them on language skills are 
more likely to become successful readers. They achieve higher 
test scores. They have better school attendance records. They 
graduate at higher rates. And they are more likely to go to 
college. But children whose parents lack a strong educational 
foundation are less likely to do so.
    Funds will continue to be made available to the National 
Institute for Literacy to gather and disseminate information 
about the best practices for improving child literacy, so that 
every school and community can take advantage of them.
    This bill targets funds for literacy programs on schools 
where the needs are greatest. Children in poor schools are more 
likely to live in homes with parents who have not completed 
high school and are unemployed. Children from such homes are 5 
to 6 times more likely to drop out of school than other 
children. We should help ensure that they get the opportunities 
they need to learn to read well.
    The bill will help provide children with the readiness 
skills and support they need to learn to read once they enter 
school. It will help teach every child to read in these early 
years--from preschool though the 3rd grade. And it will improve 
the instructional practices of teachers and other staff in 
elementary schools with the greatest need for extra help.
    The BEST Act ensures that the best methods and resources 
are more widely available to schools, families, and children 
across the country, and we are pleased to support it.

Meeting the national need to support school libraries

    However, we cannot increase the literacy skills of 
America's students without providing students with access to an 
adequate supply of up-to-date reading materials. Indeed, 
research has documented a clear connection between well-
equipped, well-staffed school libraries and increased literacy, 
reading achievement, and overall academic success. 
Unfortunately, schools across the Nation are still dependent on 
collections purchased in the mid-1960's and 1970's with 
dedicated funding provided under the Elementary and Secondary 
Education Act of 1965. Since 1981, when this funding was folded 
into what is currently the title VI block grant, school 
libraries have suffered. This 20-year experiment in leaving 
school library funding to States and school districts has 
failed. Consequently, school library shelves are filled with 
inaccurate books which pre-date the landing of manned 
spacecraft on the moon, the breakup of the Soviet Union, the 
end of apartheid, the Internet, and advances in scientific 
research.
    At the committee markup, Senator Reed presented clear 
examples of old school library books filled with outdated facts 
and offensive stereotypes that line our school library shelves. 
We are dismayed that the committee failed to restore funding 
for school libraries or to increase student access to up-to-
date school library materials. The needs of school libraries 
have been unaddressed for too long. We urge the restoration of 
funding to update and improve the Nation's school libraries. 
Otherwise, our goal of eliminating illiteracy will be thwarted.

Public school repair and renovation

    The facts about the condition of our Nation's schools are 
well known. The average age of our Nation's schools is 42 years 
and 14 million children attend classes in buildings that are 
unsafe or inadequate. In addition, the National Center for 
Education Statistics estimates that $127 billion is needed 
simply to bring our nation's schools up to overall good 
condition.
    In March, the American Society of Civil Engineers issued a 
Report Card for America's Infrastructure which reported serious 
problems with the physical infrastructure in our nation. Once 
again, school buildings received the lowest grade of all 
facilities in the Nation--a D minus.
    Clearly, this is a national problem that deserves a 
comprehensive national response. However, the committee bill 
does not address this pressing national concern.
    Last year, we made substantial progress on this issue by 
including a new school repair and renovation program in the 
education appropriations bill. The fiscal year 2001 
appropriations bill included a $1.2 billion bipartisan 
initiative to help communities address their most urgent repair 
and renovation needs. This legislation was agreed to by the 
House, the Senate and the White House.
    In Committee, Senators Harkin and Reed offered a bipartisan 
amendment to reauthorize the school repair and renovation 
program and increase the authorization to $1.6 billion. The 
amendment continued the split between school modernization and 
IDEA as negotiated in last year's appropriations bill. Seventy-
five percent of the funds would be used to finance urgent 
repairs such as fixing leaky roofs, replacing faulty wiring or 
making repairs to bring schools up to local safety and fire 
codes. The remaining funding would support activities related 
to IDEA Part B or technology related to school construction.
    The school repair program is a key component in a two-prong 
strategy to modernize the Nation's schools. Some schools have 
simply outlived their usefulness and need to be replaced. In 
addition, the record enrollment in our nation's public schools 
has caused overcrowding that can only be remedied by building 
new schools. That's why we hope Congress will also pass much-
needed legislation to provide interest-free school 
modernization bonds that will finance at least $25 in new 
construction.
    Nearly three-quarters of the nation's schools are over 30 
years old. According to the National Center for Education 
Statistics, when a school is between 20 and 30 years of age, 
frequent replacement of equipment is necessary. Between 30 and 
40 years, all of the original equipment should have been 
replaced including the roof and electrical systems. After 40 
years, a school begins to deteriorate rapidly and after 60 
years most schools are abandoned.
    There is a legitimate federal role to help fix our nation's 
crumbling schools, and we can do so without undermining local 
control of education. We were disappointed by the defeat of the 
Harkin-Reed Amendment on a 10-10 party line vote, and hope the 
Senate will adopt the program on the floor with bipartisan 
support.

Reducing class size

    Smaller classes in the early grades can have a positive 
impact on students for years to come by ensuring students learn 
the basics, improve classroom discipline, providing more 
individual attention, and encouraging parents and teachers to 
work more closely together. By including the Class Size 
Reduction program in the appropriations bills over the last 
three years, Congress has taken an important, bipartisan step 
to ensure that the nation's students are learning in less 
crowded classrooms. Unfortunately, the committee bill does not 
include a guaranteed funding stream for Class Size Reduction, 
abandoning our bipartisan commitment to the teachers, parents, 
and students of this country.
    The party line vote rejecting Senator Murray's amendment to 
include the Class Size Reduction program in this bill is a 
rejection of sound education policy. Studies have shown what 
parents, students and teachers have always known: smaller 
classes make a difference. Despite numerous comprehensive, 
high-quality studies confirming the benefits of smaller classes 
in theearly grades, our Republican colleagues rejected the 
Class Size Reduction program.
    In small classes, students receive more individual 
attention and instruction. Students with learning disabilities 
are identified earlier, and their needs can be met without 
placing them in costly special education. In small classes, 
teachers are better able to maintain discipline, and parents 
and teachers can work together more effectively to support 
children's education. The Federal Government has always taken a 
special responsibility for disadvantaged students, the very 
students that studies show benefit the most from smaller 
classes in the early grades. A recent study found that if all 
children were in smaller classes in the early grades, that 
change alone could close the black/white gap in students taking 
college entrance exams by as much as 60 percent. But today, 
there are still too many students in overcrowded classrooms. 
The average class size in this country is over 22 students, 
with some of the most crowded classrooms in urban areas. Almost 
half of all elementary school teachers have class sizes of 25 
students or more.
    Teachers, parents, and students also want high-quality, 
well-prepared teachers. Including class size reduction as an 
allowable use of funds within a teacher quality block grant may 
foster the illusion of ``local control,'' but in reality it 
creates a false choice between investing in smaller classes and 
investing in professional development, mentoring, and 
recruiting activities. We know that good education reform 
includes both boosting teacher quality and reducing class 
sizes, and we should provide communities the support they need 
communities address both issues sufficiently by providing 
dedicated funding streams for both class size reduction and 
professional development.
    The current Class Size Reduction program is already 
flexible. Small school districts that do not receive enough 
Federal funding to pay a starting teacher's full salary may 
combine these funds with other funds to pay the salary of a 
full or part-time teacher, or may use the funds for 
professional development. Any school district that has already 
reduced class sizes in the early grades may use these funds to 
reduce class sizes in other grades, or to improve teacher 
quality. Districts can already use up to 25 percent of their 
Class Size Reduction funds for professional development, 
mentoring, or recruitment. The only qualification is that all 
teachers hired with Class Size Reduction funds must be fully 
qualified.
    The first year of Federal Class Size Reduction program has 
helped schools hire 29,000 teachers who are already teaching in 
smaller classes across the country. As a result, approximately 
1.7 million students are learning in classrooms that are no 
longer overcrowded. An additional 8,000 teachers will be hired 
with the funds provided by the fiscal year 2001 appropriations, 
creating smaller learning environments for hundreds of 
thousands of additional students. We should not abandon our 
commitment to teachers, parents, and students to help them 
reduce class sizes, and we hope the full Senate will adopt 
Senator Murray's amendment.

Ensuring a qualified teacher in every classroom and a qualified 
        principal in every school

    Over the next 10 years, we will need to recruit more than 2 
million teachers to teach the record number of elementary and 
secondary students in our public schools. Nothing in education 
is more important than ensuring a highly qualified teacher for 
every classroom. Research shows that what teachers know and can 
do is the most important influence on what students learn. 
Increased knowledge of academic content by teachers and 
effective teaching skills are associated with increases in 
students achievement.
    Research shows that current professional development 
activities often fail to generate significant improvements in 
teaching or even impact teaching practice. Moreover, a recent 
survey of teachers found that professional development is too 
short-term, with a majority of teachers participating in 
professional development activities that last only 1 to 8 hours 
a year. As a consequence, only about one in five teachers felt 
very well prepared to address the needs of students with 
limited English proficiency, those from culturally diverse 
backgrounds, and those with disabilities, or to integrate 
educational technology into the curriculum.
    The Committee bill includes strong definitions of 
professional development, mentoring, and highly qualified 
teacher, and contains strong accountability and application 
requirements. In particular, the bill contains many of the 
elements that research indicates constitute effective mentoring 
and professional development--sustained, intensive activities 
that focus on deepening teachers knowledge of content; 
collaborative working environments; and training that is 
aligned with standards and embedded in the daily work of the 
school.
    At the same time, however, the bill allows title II-A 
funding to be used for purposes other than professional 
development and mentoring. Accordingly, districts could spend 
all of the funding on signing bonuses, teacher tenure system 
reform, merit pay, and teacher testing. As a result, teachers 
would not get any of the professional development they need.
    An amendment was added in the markup to expand the 
allowable uses of funds to include merit pay for teachers, 
reform of tenure, and teacher testing. We underscore that this 
language in no way should be interpreted to interfere with or 
alter the integrity of existing local control or local 
collective bargaining agreements.
    We are particularly disappointed that the Committee failed 
to adopt Senator Kennedy's amendment to guarantee teachers that 
at least 50 percent of the title II-A funds will be used for 
the professional development of all teachers and mentoring of 
new teachers. The amendment would have made professional 
development and mentoring a top priority to ensure that 
teachers get the support they need to succeed in the classroom 
and help all children meet high standards of achievement.
    We don't disagree with any of the uses of funds under title 
II-A. However, the current structure of the Committee bill is a 
step backwards for teachers. Currently, teachers areguaranteed 
$485 million for professional development and mentoring 
activities--and its not enough to meet the need. Under the 
committee bill, a local school district could spend all the 
funding on recruitment activities, leaving current teachers out 
in the cold.
    We believe that local school districts should have 
flexibility in the use of funds, but not to the extent that 
they ignore the needs of teachers for on-going, high-quality, 
and locally designed professional development and mentoring 
activities.
    Such a requirement is absolutely critical if we are to meet 
the challenge of ensuring that teachers have the training, 
assistance, and support to sustain them throughout their 
careers and increase student achievement.
    It is also critical so that parents know that their child 
is being taught by a qualified teacher.
    Democrats believe the bill should have included this goal 
explicitly as a requirement in Title II with a timeline and a 
specific date for implementation. However, we are pleased that 
the committee agreed to include provisions in a floor manager's 
package addressing Senator Kennedy's teacher quality 
accountability amendment. His amendment to Title II-A would 
require that schools serving Title I students must have a 
highly qualified teacher in every classroom within 4 years. 
Senator Gregg and Senator Jeffords argued that the Committee 
should modify the amendment to focus the program on schools in 
which at least 50 percent of their students are in poverty.
    In addition, because qualified and well-prepared teachers 
are critical to improving student achievement, we hope that a 
compromise can be reached on the amendment proposed by Senator 
Reed to set a funding bar under Title I for professional 
development at the district level at 10 percent.
    Although the Committee bill includes a strong definition of 
professional development, it does not include language to 
ensure that recruitment activities are of the same high 
quality. It does little good to recruit teachers into schools 
and train them if we cannot retain them in the profession. 
Fifty percent of urban educators leave the profession within 5 
years. We want to ensure that federal funds support only those 
recruitment programs that are linked to or include activities 
that are proven effective in retaining teachers.
    The key elements for effective teacher retention were laid 
out by the National Commission on Teaching and America's Future 
in 1996. Effective programs organize professional development 
around standards for teachers and students; provide a year 
long, pre-service internship; include mentoring and strong 
evaluation of teacher skills; and offer stable, high quality 
professional development.
    Title II would be strengthened by including Senator 
Wellstone's amendment to ensure that any teacher recruitment 
programs funded by Federal dollars incorporate high quality 
retention practices, and we hope it will receive bipartisan 
support on the floor.
    There is widespread agreement that a good principal is the 
keystone of a good school. However, there is great concern that 
the supply of quality principals may not meet the increasing 
demand for quality school leadership. Moreover, principals 
often lack opportunities for high-quality professional 
development. Too often, such development is in the form of one-
day workshops not geared to the needs of most principals. We 
must do all we can to provide opportunities for mentoring and 
professional development for principals--and it must be of high 
quality, readily available, and geared toward the practical 
needs of principals as instructional leaders.
    We are pleased that the committee bill includes a National 
School Leadership program, which allows the Secretary to award 
grants for professional development activities for principals 
to develop and enhance their leadership skills. However, we 
need to do more if we are to send a strong signal to the 
Nation's communities that we will help provide stronger school 
leaders in every school. We hope that the bill will be 
strengthened by adding requirements for resources to be spent 
on professional development and leadership activities for 
principals, and including principals in professional 
development activities, as appropriate, throughout Title II.
    We should do all we can to ensure a qualified teacher in 
every classroom and a qualified principal in every school, 
particularly for the neediest children.

Expanding 21st Century Community Learning Centers

    By providing high quality after-school, weekend, and summer 
programs, 21st Century Community Learning Centers keep children 
safe, help parents work, and expand children's learning 
opportunities. Yet, demand for these programs continues to 
outpace supply. According to a report from the U.S. Census 
Bureau last year, almost 7 million children aged 5 to 14 are 
left unsupervised on a regular basis during the after-school 
hours.
    Research shows that children who are home alone after 
school hours report higher use of alcohol, cigarettes, and 
marijuana. Nearly 45 million children ages 14 years and younger 
are injured in their homes every year and most unintentional, 
injury-related deaths occur when children are out of school and 
unsupervised. Children home alone after school are also more 
likely to be victims of crime or to commit crimes themselves. 
Violent crimes by juveniles--murder, sexual assault, robbery 
and aggravated assault--peak between 3:00 p.m. and 6:00 p.m. 
The rate of juvenile violence during those hours is four times 
the rate during the standard teenage curfew hours of 10:00 p.m. 
to 6:00 a.m.
    Yet, despite the overwhelming evidence of need for more and 
better quality after-school alternatives, the Department of 
Education had sufficient resources last year to fund only 310 
of the over 2,000 applications it received under the 21st 
Century Community Learning Centers program. More than 1,000 
high-quality applications went unfunded.
    Given the critical shortage of high-quality after-school 
programs, we are pleased that the Committee voted unanimously 
to accept an amendment by Senator Dodd to increase the 
authorization for the 21st Century Community Learning Centers 
program from $846 million to $1.5 billion.
    With $1.5 billion in funding, over 2.1 million children 
across the nation would be provided extended learning 
opportunities in safe environments--approximately one million 
more children than can now be served. This level of investment 
would eliminate as much as a quarter of the Nation's ``latch-
key'' crisis. Although the amendment that was accepted is an 
authorization increase, and funding is still subject to annual 
appropriations, the Committee's unanimous approval of Senator 
Dodd's amendment sends a strong signal to the Administration 
and to the Appropriations Committee that the Committee places a 
high priority on funding for this program.
    We are also pleased that the Committee reached agreement 
during the Executive Session on allowing community-based 
organizations to apply for grants under the 21st Century 
Community Learning Centers program. Under the agreement, an 
equal priority will be given to applications from the following 
applicants: Title I-eligible schools; joint applications from 
community-based organizations and Title I-eligible schools; and 
community-based organizations serving Title I schools. 
Importantly, the agreement also provides that the locus of 21st 
Century Community Learning Centers programs will remain in 
public schools, unless the Secretary determines, on a case-by-
case basis, that requiring a particular program to operate in a 
school would undermine the program's effectiveness or limit its 
accessibility. In addition, it will clarify that a primary 
purpose of the 21st Century Community Learning Centers program 
is to enhance and increase extended learning time for students 
so that all children can meet high standards of achievement.

Increasing authorization of appropriations for Title I, Part A

    We are pleased that the Committee increased the 
authorization level for grants to local educational agencies 
under Title I, Part A to $15 billion for fiscal year 2002. But, 
we are disappointed that the Committee did not accept Senator 
Dodd's amendment to provide annual increases in the 
authorization levels for Title I over the next 7 years in order 
to reach full funding by fiscal year 2008. We believe that in 
this area, the Committee abdicated its responsibility to help 
ensure that all children meet high standards of achievement.
    Title I grants to local educational agencies are the 
primary method by which Congress helps low-income schools 
provide services to educationally at-risk students to enable 
them to meet challenging academic standards. It also helps 
States and communities to close the achievement gap between 
low-income and high-income schools, and turn around failing 
schools.
    Studies have shown that 80 percent of low-income school 
districts report that Title I is driving school reform and that 
reading and math performance has improved in low-income 
schools. The Department of Education's National Assessment of 
Title I--which was done in consultation with an independent 
review panel--found that since 1992, national reading 
performance has improved for 9-year olds in the highest poverty 
public schools and math achievement also has improved among 
students in the highest poverty public schools.
    Other studies show that since the 1994 reauthorization of 
ESEA, students receiving Title I services have increased their 
reading achievement in 21 of 24 urban districts studied, and 
increased their math achievement in 20 of 24 urban districts 
studied. Nevertheless, a significant gap remains between 
student achievement in low-income schools and high-income 
schools.
    The Committee bill would impose significant testing and 
accountability measures to help states and schools close this 
gap. We agree that it is important to measure student progress 
and hold States and schools accountable, but testing and 
accountability are not the reforms themselves. We must provide 
schools with the necessary resources to implement reforms, such 
as more intensive supplemental instruction and new research-
based curricula.
    However, Congress provides sufficient funding to meet only 
one-third of the need, as defined by the Title I formula. So, 
not only does Title I not serve all eligible children, but 
local educational agencies that receive Title I funds receive 
only about one-third of the amount that Congress has determined 
is necessary to help them close the achievement gap.
    Senator Dodd's amendment, although subject to annual 
appropriations, would have sent a strong signal that the 
Committee believes that Congress' goal must be to provide 
schools with the resources they need to provide all children 
with the education they need and deserve, and it should be a 
top national priority.

Meeting the needs of children with limited English proficiency

    The Committee bill marks a step forward in providing for 
the academic achievement of limited English proficient (LEP) 
students, and ensuring that these children are not left behind. 
Over the past decade, the Nation's overall school enrollment 
has grown by 14 percent. Over the same period, the LEP student 
population in our schools has grown by 104 percent, and LEP 
children now number over 3.5 million of the nation's 
schoolchildren. As this population grows, so too grows the need 
of the Nation's schools to ensure the academic success of LEP 
children.
    Democrats are pleased with provisions relating to LEP 
children in Title I, and view the disaggregation requirements 
included in the bill's accountability provisions as critical to 
ensuring that LEP students are not overlooked as states 
determine adequate yearly progress. Under the bill, states will 
set annual, numerical goals for the progress of LEP children, 
ensuring that schools no longer depend on average student 
achievement data in the aggregate to determine academic 
progress. These new provisions are critical to closing the 
achievement gap between LEP children and their English-speaking 
peers.
    Democrats are also pleased that the bill maintains and 
strengthens the Bilingual Education Act, and streamlines 
existing bilingual education programs while incorporating 
additional accountability measures for achievement in all 
academic content areas, as well as proficiency in English. We 
are pleased that provisions under Title III target funds to 
areas with large LEP student populations, and also provide 
assistance to areas that have limited or no experience in 
serving such populations.

Closing the digital divide

    Educational technology can enhance the classroom 
environment in ways that were unimaginable only a decade ago 
and can help students develop independent thinking and problem 
solving skills. We are pleased that the BEST Act includes a 
substantial investment in this important priority, and includes 
Senator Mikulski's national education goal to close the digital 
divide. We are also pleased with the requirement in the 
Committee bill that states and districts set aside 30 percent 
of technology funds for professional development for teachers. 
Our investment in technology infrastructure in schools will not 
be realized unless we ensure that teachers know how to use this 
important learning tool.
    Despite significant gains in technological capacity and 
connectivity, schools serving low-income children continuously 
lag behind in understanding how to integrate technology 
effectively into the curriculum. This ``digital divide'' is an 
issue of growing concern across the country. Children who are 
not exposed to technology and taught how to use it are at a 
disadvantage in their education and in the workplace. We know 
that low-income and minority students are less likely to own 
computers at home, making the accessibility of technology at 
school even more critical for these children. Also, many rural 
districts face challenges that technology is helping them to 
overcome. For example, districts that could never offer 
Advanced Placement or foreign language courses in the past are 
now able to do so through distance learning. Because of the 
federal government's special obligation to provide extra 
resources to our most disadvantaged children, we are pleased 
that the Committee accepted Senator Murray's amendment to 
target funds for technology to high-poverty districts, and to 
ensure an equitable distribution of funds among rural and urban 
districts. When faced with a digital divide, it is not time to 
abandon this role, but to reinforce it by ensuring federal 
dollars go where they are most needed. We also favor a federal 
commitment to research and development so that new innovations 
in the use of technology can continue to enrich the learning 
experiences of the Nation's children.

Improving school and community safety

    We are pleased that the bipartisan Safe and Drug-Free 
Schools and Communities Act, authored by Senator DeWine, 
Senator Dodd, and Senator Murray, is included in the Committee 
bill. Changes made to the act focus on improving accountability 
and enhancing the effectiveness of this program. The 
legislation requires states and schools to adhere to the 
``Principles of Effectiveness'' in the design, implementation, 
and evaluation of their programs. The bill also increases 
federal coordination, while providing states with the 
flexibility to better target these dollars.
    We are pleased with the adoption of Senator Wellstone's 
amendment concerning domestic violence and child abuse. 
Domestic violence and child abuse both are causes and 
predictors of juvenile violence, so this addition will 
significantly enhance the Safe and Drug-Free Schools and 
Communities Act. We also are pleased with the adoption of 
Senator Sessions' amendment concerning violence-prevention 
training and other allowable uses of funds.

Increasing parental involvement

    Research shows that regardless of economic, ethnic, or 
cultural background, parental involvement is a major factor in 
determining a child's academic success. Parental involvement 
contributes to better grades and test scores, higher homework 
completion rates, better attendance, and greater discipline. We 
are pleased that the bill takes many steps to bolster the 
existing parental involvement provisions in ESEA.
    In particular, the bill ensures that families of children 
in Title I schools can: access information on their children's 
progress and the performance of their children's school in 
terms they can understand; involves parents in school support 
teams to help in the process of turning around failing schools; 
ensures that parents are involved in violence and drug 
prevention programs so they can reinforce the safe and drug-
free message at home; requires states to collect and 
disseminate information about effective parental involvement 
practices; requires states and districts to annually review 
parental involvement activities of districts and schools to 
ensure the activities are effective; and requires technical 
assistance for Title I schools and districts that are having 
problems implementing parental involvement activities.
    We are also pleased that amendments proposed by Senator 
Reed to further strengthen parental involvement in the bill 
will be adopted as the bill moves to the Senate floor. These 
amendments support and encourage the use of technology to 
enhance parental involvement activities; add to the definition 
of professional development activities that encourage and 
enhancethe ability of teachers to provide instruction on how to 
work with and involve parents; add a requirement that districts 
describe how they will provide training to enable teachers to 
involve parents in their child's education; and revise the 
definition of parental involvement.
    But the bill does not go far enough. Too often, states, 
districts, and schools fail to adequately inform and involve 
parents because they lack the funding to do so. We are 
disappointed that Senator Reed's amendment, which would provide 
the needed resources, accountability, and flexibility to ensure 
that parental involvement activities are actually carried out, 
was not passed. Senator Reed's amendment would provide $500 
million to school districts, with strict accountability 
measures, to supplement and support recognized and proven 
initiatives that improve student achievement through parental 
involvement. In addition, the amendment would require states 
seeking funding under ESEA to: (1) describe, implement, and 
evaluate parental involvement policies and practices; and (2) 
provide public notice of its parental involvement policies in a 
manner and language understandable to parents, and to provide 
the opportunity for parents and others to comment on such 
policies.
    This amendment is critical, particularly in light of the 
bill's new requirement to test all students in grades 3 through 
8 every year. Given the proven connection between increased 
student achievement and parental involvement, we should not 
pass up this opportunity to provide all schools, teachers, and 
parents with the tools to increase parental involvement. As the 
bill moves to the floor, we urge the addition of these 
provisions.

Addressing the social, health, and other needs of children

    Beyond academic concerns, we recognize that children bring 
many social, health, and mental health problems to school that 
interfere with their ability to learn. Before children can turn 
their full attention to school, their basic needs must be met. 
Therefore, we are disappointed that the bill eliminates 
coordinated services under title XI and eliminates the 
Elementary School Counseling Demonstration Program.
    We are also disappointed that the Committee bill does not 
include Senator Reed's amendment which would authorize school-
community partnerships to provide children and families with 
links to existing community prevention and intervention 
services such as child care, health, mental health, nutrition, 
family support, literacy, parenting skills, and dropout 
prevention. Such services exist in a fragmented fashion in many 
communities, and families which would otherwise be eligible to 
receive the services cannot obtain them without coordination at 
a site housed under one familiar roof--their child's school. 
The coordination of these services not only removes barriers to 
a successful education, but promotes the overall health and 
well-being of the student as well. Without this amendment, 
along with Senator Harkin's amendment to establish and expand 
effective counseling programs in elementary and secondary 
schools, we will not achieve the improved academic results this 
bill demands.

Undermining accountability, targeting, and reform through block grants

    Senator Frist offered and withdrew an amendment to 
authorize Straight A's block grants. We believe that Straight 
A's would have undermined the bill, and created a tangled web 
of administrative chaos and policies that undermine national 
priorities in education, such as reducing class size, improving 
teacher quality, and closing the digital divide.
    Block grants undermine the targeting of resources to the 
neediest students and eliminate critical accountability 
provisions that help ensure better results for all children. 
The Straight A's proposal undermines the tough accountability 
and testing requirements championed by President Bush. While we 
support greater flexibility in education funding and the 
consolidation of many existing programs, block grants are the 
wrong direction for education, and do nothing to spur change in 
public schools.

Straight A's block grants are anti-local control, anti-accountability, 
        and pro-status quo

    The Academic Achievement for All Act--``Straight A's''--
abandons the national commitment to help the nation's most 
disadvantaged children get a good education through proven 
effective reforms of public schools. The amendment would give 
states a blank check for over $12 billion in current funding 
and over $22 billion in funding under the BEST Act--and then 
turns its back on holding states accountable for results.
    History shows that block grants haven't worked--and they 
won't work now. Block grants eliminate accountability. A 1997 
study by the Center on Budget and Policy Priorities found that 
the Maternal and Child Health Block Grant suffered from lack of 
accountability and illustrated the difficulty of tracking how 
states use funds and how many children were reached. Under the 
Straight A's proposal, states are not held accountable for 
educational results until after 5 years. By that time, many 
students will have lost five years of potential gains in 
student achievement.
    Under the amendment, states must only demonstrate statewide 
performance. They can ignore individual failing schools if a 
few schools excel--and increase the statewide average. A state 
could demonstrate statewide overall progress based on progress 
by wealthier communities, while a lack of progress in 
disadvantaged communities remains statistically hidden. States 
should have to demonstrate progress in student achievement in 
each school and each district, so that no community or child is 
left behind. This amendment is in direct conflict with 
President Bush's initiatives and the BEST Act provisions for 
annual accountability for improvement for disaggregated groups 
of children at the school, district, and state levels, annual 
report cards, rewards and sanctions based on annual progress, 
and for new annual tests.
    In addition, the accountability provisions in the 
Republican block grant proposal are oflittle significance. If 
states fail to make progress, the only required response is to 
prohibit the state from participating in the block grant 
program. Even this weak repercussion is unlikely to be 
implemented, because the states define progress without any 
federal or local input or general legislative parameters. Under 
the BEST Act, states set goals for student performance, but 
these goals are reviewed by the Secretary of Education and must 
be set within the context of the goal that all students attain 
proficiency within 10 years. Annual, numeric goals must be set 
for improved performance, as well as separate goals for low-
income and minority students, in order to ensure that 
achievement gaps are eliminated. If schools or districts fail 
to meet these goals, districts and states, respectively, must 
take action to assist the school or district, and supplemental 
resources are provided. Research-based school improvement 
strategies must be implemented. If the school or district 
continues to fail, sanctions are imposed.
    But under Straight A's, none of these requirements apply. 
There is no real accountability for closing the achievement gap 
in the Republican block grant proposals. Although the proposals 
require states to set goals for certain groups, as mentioned 
above, goals for student performance are set at the state level 
and there is little consequence for failure. In addition, the 
proposal would free participants from requirements in current 
law to include all students in state assessments. Under the 
Republican block grant proposal, ``all students'' is defined as 
``all students attending public or charter schools that are 
participating in the state's assessment system.'' There are no 
provisions requiring states to include all students in that 
assessment system. Therefore, a state could exclude students 
from assessments without any accountability for their 
performance.
    Block grants threaten funding for education. Historically, 
Congress increases funding for programs targeted on national 
priorities, not block grants. This is no time to reduce our 
investment in education. We should increase it. According to a 
1995 GAO study, total funding for nine block grants created in 
1981 declined by 12 percent, or $1 billion, in 1982. Funding 
for title VI (formerly Chapter 2) has decreased by 50 percent 
since FY82, when the block grant was created. In FY82, $708 
million (in 1999 dollars) was appropriated for the programs. In 
FY99, $375 million was appropriated.
    In contrast, because Title I, technology, and other Federal 
programs are targeted to important national priorities, 
appropriations for these programs have increased over time. For 
example, funding for Title I has almost doubled since FY82, 
from $4.1 billion (in FY99 dollars) to $7.9 billion in fiscal 
year 2000. Unfortunately, even with the increases, these 
programs are still underfunded.
    In addition, some of the programs that were originally 
consolidated, such as grants for professional development, 
magnet schools, and gifted and talented education, were later 
re-created as separate Federal programs. After submerging these 
programs in a block grant, Congress--on a bipartisan basis--
decided that these needs were not being met at the state and 
local levels and remained priorities of national importance.
    Block grants leave the door open for waste and abuse--and 
provide no focus on proven effective strategies to improve 
schools. Last year, Senator DeWine, in urging increased 
accountability measures, noted the poor history of states and 
local districts in spending Safe and Drug-Free Schools and 
Communities funds; he characterized those dollars as being 
``raided'' for pet projects or to support ineffective methods. 
School districts and schools could use scarce public tax 
dollars to support fads and gimmicks with no basis in research 
or proven practice. They could even use the money to support 
the football team, to buy computer games, or to buy new office 
furniture, if they decide that these uses serve ``educational 
purposes.'' In short, the Act provides no assurance that 
federal funds will go to improve instruction and teacher 
quality, strengthen curriculum, reduce class size, provide 
extended learning opportunities, or support other proven 
strategies for helping all students learn to high standards.
    Under Straight A's, there is no accountability at the 
school district or school level. Only the state must show that 
it has substantially--not entirely--met its own goals. If a 
state does not partially meet its goals, the only penalty is 
that after five years, it can no longer block grant the 
programs. There is no requirement for reporting at the district 
or school level on progress in improving student achievement, 
and there is no requirement for helping to improve low-
performing schools.
    History also shows that block grants allow the misdirection 
of funds. When states and localities received billions of 
dollars in the tobacco settlement, we heard their good 
intentions to use the funds to improve health care and stop 
children from smoking. Some state and local officials have kept 
that commitment. But many others have succumbed to the pressure 
to use the tobacco funds to build new sidewalks, provide new 
tax breaks, build new prisons, and, in the case of Los Angeles, 
pay the legal settlement costs in the recent police corruption 
cases. The tobacco funds do not have the limitations that would 
apply to this education bill. But we all know that there will 
be large pressures on the states to use the education block 
grant proposed in this bill for activities that do very little 
to enhance the quality of public schools.
    The block grants authorized by the amendment harken back to 
mistakes made during the early days of Title I. A 1969 report 
on how the 1965 Title I program funds were spent--when Title I 
was a state block grant--shows that states seriously misused 
the funds. State bureaucracies were fattened with funds that 
were supposed to go to schools. States and districts used funds 
to purchase football and band uniforms. Some purchased swimming 
pools. We cannot afford to go back to those days. We must 
insist that Federal funds are spent on improving the academic 
achievement of all students.
    Block grants also undermine targeting to disadvantaged 
communities. The Straight A's program holds school districts 
harmless for the amount of funding they received under Title I 
inthe previous year. Therefore, any new money appropriated 
could be reallocated to wealthier districts and schools. Needy 
districts would no longer be assured the additional funding 
they should get due to increased enrollments of poor children. 
In addition, the amendment does not protect any within-district 
targeting provisions under Title I. At FY2001 funding levels 
other than title I, over $4.3 billion could be spent in any 
district without a single dime going to needy schools.
    We acknowledge the pressures that state governments face in 
funding education. But we know that States don't target 
resources to the neediest schools and children who need 
additional help. Federal funds are significantly more targeted 
to low-income children than state funds. A recent General 
Accounting Office (GAO) report found that state formulas are 
less targeted on high-need children and school districts than 
federal formulas. GAO found that states provide an additional 
62 cents for each needy child for every dollar for all 
children, while the federal investment provided $4.73 per poor 
child for every dollar for all children.
    The Straight A's program also undermines local control. The 
amendment concentrates educational decision-making at the state 
level. By authorizing the state to decide whether it will enter 
into a performance agreement, the Act gives the state ultimate 
authority to determine the parameters of the agreement, 
including which schools and school districts will receive funds 
and how funds may be spent. Far from giving local districts 
flexibility, as policies and waiver provisions under current 
law have, Straight A's would increase the power of governors 
over local education policy at the expense of local districts, 
local school officials, and parents.
    Proponents of Straight A's argue that block grants are 
needed to return control of education to local communities. The 
reality is that there is already significant local control of 
education, and the 1994 ESEA reauthorization provided even more 
flexibility to local authorities in how they spend Title I 
dollars. States and communities provide 92 percent of funding 
for education. The federal government--which provides only 8 
percent of all K-12 education funding--cannot run local 
schools. What Washington can do, however, is help local 
communities meet education reform priorities when their budgets 
are stretched too thin. Washington can also target scarce 
public tax dollars on areas of national need, serve as a strong 
partner in education reform, and help establish a system that 
holds all officials accountable for children's academic 
progress.
    GAO found that for major federal elementary and secondary 
education programs, the Department of Education sent over 99 
cents of every dollar to states, and states, in turn, sent 94 
cents to local school districts. There is no massive waste or 
federal bureaucracy in federal education programs.
    The Straight A's block grants also deny special populations 
of students guaranteed help for meeting high standards. 
Migrant, homeless, and immigrant students would no longer be 
assured the extra help they need to stay in school and succeed 
in school.
    States could use the money for any ``educational 
purposes,'' including private school vouchers that would drain 
funds away from public schools. In the Committee mark up last 
year, Senator Gregg confirmed that funds under Straight A's 
could be used to support private school vouchers if a state 
approved them. Billions of public tax dollars could be diverted 
to private and religious schools, with no accountability for 
raising students' academic achievement. This diversion would 
represent a major shift in priorities for the role of the 
federal government in education.
    Finally, Straight A's abdicates our responsibility in a 
reauthorization to examine and improve federal efforts. If 
there are issues with federal programs, we should fix them--not 
just hand them off to the states and local communities.
    We would have staunchly opposed the Straight A's amendment 
in Committee had it been offered, and we will oppose it if it 
is offered on the floor.

Undermining standards-based reform under Title I and diverting scarce 
        public dollars from needy public schools to private schools 
        through vouchers

    Currently, Title I is funded at approximately $8.6 billion, 
only one-third of the level needed to fully fund the program. 
We are pleased that the Committee maintained Senator Dodd's 
amendment to increase the Title I authorization from $10 
billion to $15 billion that was adopted unanimously last year. 
However, at the same time that we signaled strong support for 
the program and standards-based reform, Senator Gregg's 
amendment to make Title I ``portable'' would have undermined 
them.
    The portability proposal gives students and parents false 
hope by promising increased educational support for low-income 
students. ``Portability'' under Senator Gregg's amendment would 
allocate a per-child share of Title I funds to virtually every 
school in a district, regardless of whether a school contains 
the concentration of need presently required to receive a Title 
I allocation. Because Title I funding levels are only 
sufficient to serve about one-third of eligible students, this 
provision would result in an immediate and drastic cut in the 
level and quality of supplementary educational services 
provided to low-achieving children.
    Under portability, the targeting of Title I funds on 
schools and pupils with the greatest need for assistance would 
be substantially reduced. Districts in the highest poverty 
quartile currently receive 43 percent of Title I funds, but 
only 23 percent of state and local funds. This amendment would 
enable states to distribute Title I funds in a way that creates 
further inequities in spending and result in a significant 
reduction in Title I resources for the neediest recipients and 
the highest poverty schools.
    For decades, Congress has recognized that schools enrolling 
high concentrations of children living in poverty face the most 
difficult challenges, and are much more likely to have higher 
proportions of children who are failing to meet state academic 
standards. As a result, Title I grants have been historically 
concentrated on the higher poverty schools, and they should 
continue to be targeted in this way if they are to address the 
greatest needs. If Title I funds are dispersed among public 
schools regardless of need, or to numerous private outside 
providers, the program will not be able to function as 
intended. The solution to ensuring that all eligible children 
are served by Title I is not an unworkable portability scheme, 
but it is for Congress to fully fund Title I. The Congressional 
Research Service has estimated that it would cost over $24 
billion to fully serve all eligible children--three times the 
current funding level.
    Redistributing funds through portability hurts poor 
children. The Congressionally-mandated Prospects Study strongly 
suggests that the need for Federal assistance is greatest in 
schools with high concentrations of poverty. As shown before, 
children can be given more public school choice, without 
destroying the targeting of funds to schools with high 
concentrations of poverty.
    Portability would also provide too little money to purchase 
educational services on an individual basis, or in schools with 
small numbers of Title I students. When funds are combined and 
concentrated on a substantial number of low-income pupils, 
however, they are far more effective. In fact, the bill already 
recognizes this important fact. Section 1001 (Statement of 
Purpose) states that one of the purposes of Title I is 
accomplished by ``. . . distributing resources sufficient to 
make a difference to local education agencies and schools where 
the needs are greatest.'' Under Senator Gregg's amendment, if 
students opt to take their allotment to an outside provider, 
what happens to the students who remain in the original school? 
The school will not be able to maintain the same level of 
services with only a fraction of what it had been receiving. 
Further, what if a parent requests supplemental services from 
an outside provider but also elects to stay in the home school 
and continue to receive Title I services there?
    Portability undermines reform. Since the 1994 
reauthorization, states, districts and schools have been 
restructuring their Title I programs with a focus on helping 
all children achieve to high state standards. The National 
Assessment of Title I reports that these changes are beginning 
to show results and are contributing to increased student 
achievement. Portability would wreak havoc on this process by 
disrupting program funding in current Title I schools. The 
current average Title I per-pupil expenditure of $775 can 
provide a significant amount of resources and services, but 
only if combined to help a substantial number of students in a 
school. Tying Title I dollars to individual students diminishes 
the benefits and success of schoolwide programs and research-
based school reform models.
    Portability reduces or eliminates Title I program 
accountability for the achievement of eligible students. 
Current provisions hold schools accountable for improved 
student achievement. Under this proposal, parents of eligible 
children could use their Title I funds to purchase 
supplementary educational services from a wide variety of 
providers, including private and religious schools and for-
profit businesses. There is no mechanism to ensure such 
providers provide quality services to children, and no 
accountability measures are required of these providers.
    Portability also opens the door to private school vouchers, 
at a time when courts are again rejecting these questionable 
policies enacted at the state and local levels. Public schools 
would be required at the request of parents to contract with a 
tutorial assistance provider, which could include private and 
religious schools and other religious entities. The proposal 
would allow public money to pay such entities for provision of 
private educational services. Since the public school 
administers the program, will the public school also be 
responsible for assuring that a child's academic achievement is 
improving, even if the students are receiving services at 
nonpublic schools?
    Portability doesn't guarantee any child a better education. 
Allowing children to take their portable grant to a private 
school or an off-campus after-school program does not 
necessarily mean they will receive a better education. Unless 
private schools are required to publicly report student 
achievement data in the same manner as public schools, we have 
no information regarding the quality of education in those 
schools. It would be irresponsible to send public dollars into 
``mystery'' institutions of questionable quality.
    We know that standards-based reform and schoolwide programs 
are making a difference. For example, approximately 80 percent 
of the students at Baldwin Elementary School in Boston, 
Massachusetts are identified as low income and many of the 
students are recent immigrants. With a strong focus on 
professional development and high standards and with Title I 
funds, test scores increased substantially from 1996 to 2000 
when 96 percent of third graders and 91 percent of fifth 
graders passed the reading test. Sixty percent of third graders 
and 39 percent of fifth graders scored at the proficient or 
advanced levels.
    At Gladys Noon Spellman Elementary in Cheverly, Maryland, 
in 1994, only 17 percent of third graders scored at or above 
the satisfactory level on the state test. Title I funds were 
used to implement reform. Each teacher was paired with another 
staff member to provide small group instruction during a 90 
minute reading and language arts block in the mornings. All 
staff utilized their specialties as a basis for language 
instruction and were provided with professional development. By 
1999, 73 percent of third-graders performed at or above 
satisfactory on the state test.
    Democrats strongly believe that Title I and other Federal 
programs should be focused on the neediest students, and should 
provide consequences for failure. Portability and voucher 
schemes undermine those efforts and support the status quo.
    We believe that we must change the status quo for children 
attending failing schools. We must invest additional resources 
in programs that work to improve student achievement. We must 
hold schools, districts, and states accountability for better 
results. We must require schools to change when they are 
failing their students and to offer parents public school 
choice options. The Committee bill meets these goals. We should 
strengthen school reform, not undermine it.

Conclusion

    The Committee bill represents important progress in 
strengthening and improving public schools in every community. 
This progress includes a strong federal helping hand, 
accountability for results, targeting to the neediest 
communities, and a clear focus on priority areas of national 
need. The nation's children deserve no less.

                                   Edward M. Kennedy.
                                   Tom Harkin.
                                   Jeff Bingaman.
                                   Patty Murray.
                                   John Edwards.
                                   Christopher J. Dodd.
                                   Barbara A. Mikulski.
                                   Paul D. Wellstone.
                                   Jack Reed.
                                   Hillary Clinton.
                       X. Changes in Existing Law

    In compliance with rule XXVI paragraph 12 of the Standing 
Rules of the Senate, the following provides a print of the 
statute or the part or section thereof to be amended or 
replaced (existing law proposed to be omitted is enclosed in 
black brackets, new matter is printed in italic, existing law 
in which no change is proposed is shown in roman):

BETTER EDUCATION FOR STUDENTS AND TEACHERS ACT

           *       *       *       *       *       *       *

SECTION 1. [20 U.S.C. 6301 NOTE] [TABLE OF CONTENTS] SHORT TITLE.

           *       *       *       *       *       *       *

SEC. 2. PURPOSE.

    It is the purpose of this Act to support programs and 
activities that will improve the Nation's schools and enable 
all children to achieve high standards.

SEC. 3. DEFINITIONS.

    Except as otherwise provided, in this Act:
          (1) Average daily attendance.--
                  (A) In general.--Except as provided otherwise 
                by State law or this paragraph, the term 
                ``average daily attendance'' means--
                          (i) the aggregate number of days of 
                        attendance of all students during a 
                        school year; divided by
                          (ii) the number of days school is in 
                        session during such school year.
                  (B) Conversion.--The Secretary shall permit 
                the conversion of average daily membership (or 
                other similar data) to average daily attendance 
                for local educational agencies in States that 
                provide State aid to local educational agencies 
                on the basis of average daily membership or 
                such other data.
                  (C) Special rule.--If the local educational 
                agency in which a child resides makes a tuition 
                or other payment for the free public education 
                of the child in a school located 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) Children with disabilities.--If a local 
                educational agency makes a tuition payment to a 
                private school or to a public school of another 
                local educational agency for a child with a 
                disability, as defined in section 602 of the 
                Individuals with Disabilities Education Act, 
                the Secretary shall, for the 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 5505.
          (6) Consolidated local plan.--The term ``consolidated 
        local plan'' means a plan submitted by a local 
        educational agency pursuant to section 5505.
          (7) Consolidated state application.--The term 
        ``consolidated State application'' means an application 
        submitted by a State educational agency pursuant to 
        section 5502.
          (8) Consolidated state plan.--The term ``consolidated 
        State plan'' means a plan submitted by a State 
        educational agency pursuant to section 5502.
          (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) part C of title II;
                  (D) part A of title IV (other than section 
                4114); and
                  (E) subpart 4 of part B of title V.
          (11) Current expenditures.--The term ``current 
        expenditures'' means expenditures for free public 
        education--
                  (A) including expenditures for 
                administration, instruction, attendance and 
                health services, pupil transportation services, 
                operation and maintenance of plant, fixed 
                charges, and net expenditures to cover deficits 
                for food services and student body activities; 
                but
                  (B) not including expenditures for community 
                services, capital outlay, and debt service, or 
                any expenditures made from funds received under 
                subpart 4 of part B of title V.
          (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) Free public education.--The term ``free public 
        education'' means education that is provided--
                  (A) at public expense, under public 
                supervision and direction, and without tuition 
                charge; and
                  (B) as elementary school or secondary school 
                education as determined under applicable State 
                law, except that such term does not include any 
                education provided beyond grade 12.
          (16) 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.
          (17) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given the term in section 101 of the Higher Education 
        Act of 1965.
          (18) Local educational agency.--
                  (A) In general.--The term ``local educational 
                agency'' means a public board of education or 
                other public authority legally constituted 
                within a State for either administrative 
                control or direction of, or to perform a 
                service function for, public elementary schools 
                or secondary schools in a city, county, 
                township, school district, or other political 
                subdivision of a State, or for such combination 
                of school districts or counties as are 
                recognized in a State as an administrative 
                agency for the State's public elementary or 
                secondary schools.
                  (B) Administrative control and direction.--
                The term includes any other public institution 
                or agency having administrative control and 
                direction of a public elementary school or 
                secondary school.
                  (C) BIA schools.--The term includes an 
                elementary school or secondary school funded by 
                the Bureau of Indian Affairs but only to the 
                extent that 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.
          (19) Mentoring.--The term ``mentoring'', when used 
        with respect to mentoring other than teacher 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.
          (20) Other staff.--The term ``other staff'' means 
        pupil services personnel, librarians, career guidance 
        and counseling personnel, education aides, and other 
        instructional and administrative personnel.
          (21) Outlying area.--The term ``outlying area'' means 
        the United States 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.
          (22) Parent.--The term ``parent'' includes a legal 
        guardian or other person standing in loco parentis.
          (23) Parental involvement.--The term ``parental 
        involvement'' means the participation of parents on all 
        levels of a school's operation, including all of the 
        activities described in section 1118.
          (24) Public telecommunications entity.--The term 
        ``public telecommunication entity'' has the same 
        meaning given to such term in section 397 of the 
        Communications Act of 1934.
          (25) Pupil services personnel; pupil services.--
                  (A) Pupil services personnel.--The term 
                ``pupil services personnel'' means school 
                counselors, school social workers, school 
                psychologists, and other qualified professional 
                personnel involved in providing assessment, 
                diagnosis, counseling, educational, 
                therapeutic, and other necessary services 
                (including related services as such term is 
                defined in section 602 of the Individuals with 
                Disabilities Education Act) as part of a 
                comprehensive program to meet student needs.
                  (B) Pupil services.--The term ``pupil 
                services'' means the services provided by pupil 
                services personnel.
          (26) Scientifically based research.--The term 
        ``scientifically based research'' used with respect to 
        an activity or a program, means an activity based on 
        specific strategies and implementation of such 
        strategies that, based on theory, research and 
        evaluation, are effective in improving student 
        achievement and performance and other program 
        objectives.
          (27) 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.
          (28) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (29) 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.
          (30) State educational agency.--The term ``State 
        educational agency'' means the agency primarily 
        responsible for the State supervision of public 
        elementary schools and secondary schools.
          (31) Teacher mentoring.--The term ``teacher 
        mentoring'' means activities that--
                  (A) consist of structured guidance and 
                regular and ongoing support for beginning 
                teachers, that--
                          (i) are designed to help the teachers 
                        continue to improve their practice of 
                        teaching and to develop their 
                        instructional skills; and
                          (ii) as part of a multiyear, 
                        developmental induction process--
                                  (I) involve the assistance of 
                                a mentor teacher and other 
                                appropriate individuals from a 
                                school, local educational 
                                agency, or institution of 
                                higher education; and
                                  (II) may include coaching, 
                                classroom observation, team 
                                teaching, and reduced teaching 
                                loads; and
                  (B) may include the establishment of a 
                partnership by a local educational agency with 
                an institution of higher education, another 
                local educational agency, a teacher 
                organization, or another organization.
          (32) Technology.--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, video and audio tapes, 
        web-based learning resources, including online classes, 
        interactive tutorials, and interactive tools and 
        virtual environments for problem-solving, hand-held 
        devices, wireless technology, voice recognition 
        systems, and high-quality digital video, distance 
        learning networks, visualization, modeling, and 
        simulation software, and learning focused digital 
        libraries and information retrieval systems.

      [TITLE I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS

[SEC. 1001. [20 U.S.C. 6301] 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 partners 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 acknowledge 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 extensive 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. [20 U.S.C. 6302] 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 $118,000,000 for fiscal 
year 1995 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. [20 U.S.C. 6303] 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)).]

SEC. 1001. STATEMENT OF PURPOSE.

  The purpose of this title is to enable schools to provide 
opportunities for children served under this title to acquire 
the knowledge and skills contained in the challenging State 
content standards and to meet the challenging State student 
performance standards developed for all children. This purpose 
should 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 the use of schoolwide 
        programs or 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, including 
        prekindergarten) to effective instructional strategies 
        and challenging academic content that includes 
        intensive complex thinking and problem-solving 
        experiences;
          (4) significantly elevating 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 other agencies 
        providing services to youth, children, and families 
        that are funded from other sources;
          (6) affording parents substantial and 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 local educational agencies and 
        schools where needs are greatest;
          (8) improving and strengthening accountability, 
        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 $15,000,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
  (b) Reading First.--
          (1) Even start.--For the purpose of carrying out 
        subpart 1 of part B, there are authorized to be 
        appropriated $250,000,000 for fiscal year 2002 and such 
        sums as may be necessary for each of the 6 succeeding 
        fiscal years.
          (2) Reading first.--For the purpose of carrying out 
        subpart 2 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 6 succeeding 
        fiscal years.
          (3) Early reading first.--For the purpose of carrying 
        out subpart 3 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 6 succeeding 
        fiscal years.
  (c) Education of Migratory Children.--For the purpose of 
carrying out part C, there are authorized to be appropriated 
$400,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 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 6 succeeding fiscal years.
  (e) Capital Expenses.--For the purpose of carrying out 
section 1120(e), there are authorized to be appropriated 
$15,000,000 for fiscal year 2002, $15,000,000 for fiscal year 
2003, and $5,000,000 for fiscal year 2004.
  (f) Federal Activities.--
          (1) Section 1501.--For the purpose of carrying out 
        section 1501, there are authorized to be appropriated 
        $10,000,000 for fiscal year 2002 and such sums as may 
        be necessary for each of the 6 succeeding fiscal years.
          (2) Section 1502.--For the purpose of carrying out 
        section 1502, there are authorized to be appropriated 
        $25,000,000 for fiscal year 2002 and such sums as may 
        be necessary for each of the 6 succeeding fiscal years.
  (g) 21st Century Learning Centers.--For the purpose of 
carrying out part F, there are authorized to be appropriated 
$1,500,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.
  (h) Comprehensive School Reform.--For the purpose of carrying 
out part G, there are authorized to be appropriated 
$250,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.
  (i) School Dropout Prevention.--For the purpose of carrying 
out part H, there are authorized to beappropriated $250,000,000 
for fiscal year 2002 and such sums as may be necessary for each 
of the 6 succeeding fiscal years, of which--
          (1) 10 percent shall be available to carry out 
        subpart 1 of part H for each fiscal year; and
          (2) 90 percent shall be available to carry out 
        subpart 2 of part H for each fiscal year.

SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

  (a) State Reservation.--Each State educational agency shall 
reserve 3.5 percent of the amount the State educational agency 
receives under subpart 2 of part A for each of the fiscal years 
2002 and 2003, and 5 percent of that amount for each of the 
fiscal years 2004 through 2008, to carry out subsection (b) and 
to carry out the State educational agency'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 make 
available not less than 50 percent of that amount directly to 
local educational agencies for schools identified for school 
improvement, corrective action, or reconstitution under section 
1116(c).

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

                 Subpart 1--Basic Program Requirements

SEC. 1111. [20 U.S.C. 6311] 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 143.02.
    (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 students 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 performing 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) measures 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 are 
                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 116(d), and schools under 
        paragraphs (1) and (7) of section 116(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 schools; 
                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 to 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 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 114;
          [(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; and
          [(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.
    (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. 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 that satisfies the requirements 
        of this section and that is coordinated with other 
        programs under this Act, the Individuals with 
        Disabilities Education Act, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998, the 
        Adult Education and Family Literacy Act, and the Head 
        Start Act.
          (2) Consolidation plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a 
        consolidation plan under section 5506.
  (b) Standards, Assessments, and Accountability.--
          (1) Challenging standards.--(A) Each State plan shall 
        demonstrate that the State has 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) The standards required by subparagraph (A) shall 
        be the same standards that the State applies to all 
        schools and children in the State.
          (C) The State shall have the standards described in 
        subparagraph (A) for all public elementary school and 
        secondary school children served under this part in 
        subjects determined by the State, but including at 
        least mathematics, reading or language arts, history, 
        and science, which shall include the same knowledge 
        skills, and levels of achievement expected of all 
        children, except that no State shall be required to 
        meet the requirements under this part relating to 
        history or science standards until the beginning of the 
        2005-2006 school year.
          (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; and
                  (ii) challenging student performance 
                standards that--
                          (I) are aligned with the State's 
                        content standards;
                          (II) describe 2 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 served under 
        this part will be taught, but for which a State is not 
        required by subparagraphs (A), (B), and (C) to develop 
        standards, and has not otherwise developed 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) Accountability.--(A) Each State plan shall 
        demonstrate that the State has developed and is 
        implementing a single, statewide State accountability 
        system that has been or will be effective in ensuring 
        that all local educational agencies, elementary 
        schools, and secondary schools make adequate yearly 
        progress as defined under subparagraph (B). Each State 
        accountability system shall--
                  (i) be based on the standards and assessments 
                adopted under paragraphs (1) and (3) and take 
                into account the performance of all students;
                  (ii) be used for all schools or all local 
                educational agencies in the State, except that 
                schools and local educational agencies not 
                participating under this part are not subject 
                to the requirements of section 1116(c);
                  (iii) include performance indicators for 
                local educational agencies and schools to 
                measure student performance consistent with 
                subparagraph (B); and
                  (iv) include sanctions and rewards, such as 
                bonuses or recognition, the State will use to 
                hold local educational agencies and schools 
                accountable for student achievement and 
                performance and for ensuring that the agencies 
                and schools make adequate yearly progress in 
                accordance with the State's definition under 
                subparagraph (B).
          (B) Each State plan shall demonstrate, based on 
        assessments described in paragraph (3), what 
        constitutes adequate yearly progress of the State, and 
        of schools and local educational agencies in the State, 
        toward enabling all students to meet the State's 
        student performance standards. Adequate yearly progress 
        shall be defined by the State in a manner that--
                  (i) applies the same high standards of 
                academic performance to all students in the 
                State;
                  (ii) is statistically valid and reliable;
                  (iii) results in continuous and substantial 
                academic improvement for all students;
                  (iv) measures the progress of schools and 
                local educational agencies based primarily on 
                the assessments described in paragraph (3);
                  (v) includes annual measurable objectives for 
                continuing and significant improvement in--
                          (I) the achievement of all students; 
                        and
                          (II) the achievement of economically 
                        disadvantaged students, students with 
                        disabilities, students with limited 
                        English proficiency, migrant students, 
                        students by racial and ethnic group, 
                        and students by gender, except that 
                        such disaggregation shall not be 
                        required in any 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;
                  (vi) includes a timeline for ensuring that 
                each group of students described in clause (v) 
                meets or exceeds the State's proficient level 
                of performance on the State assessment used for 
                the purposes of this section and section 1116 
                within 10 years from the date of enactment 
                ofthe Better Education for Students and 
                Teachers Act; and
                  (vii) includes school completion or dropout 
                rates and at least 1 other academic indicator, 
                as determined by the States, except that 
                inclusion of such indicators shall not decrease 
                the number of schools or local educational 
                agencies that would otherwise be subject to 
                identification for improvement or corrective 
                action if the discretionary indicators were not 
                included.
          (C) Each State shall ensure that in developing its 
        plan, the State diligently seeks public comment from a 
        range of institutions and individuals in the State with 
        an interest in improved student achievement and 
        performance, including parents, teachers, local 
        educational agencies, pupil services personnel, 
        administrators (including those described in other 
        parts of this title), and other staff, and that the 
        State 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.
          (D) 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 performance standards, and assessments 
        aligned with such standards, which will be applicable 
        to all students enrolled in the State's public schools, 
        the State educational agency may meet the requirements 
        of this subsection by--
                  (i) adopting standards and assessments that 
                meet the requirements of this subsection, on a 
                statewide basis, and limiting the applicability 
                of the standards and assessments to students 
                served under this part; or
                  (ii) adopting and implementing policies that 
                ensure that each local educational agency in 
                the State which receives a grant under this 
                part will adopt curriculum content and student 
                performance standards, and assessments aligned 
                with such standards, which meet all of the 
                criteria of this subsection.
          (E) Each State plan shall describe the standard the 
        State will use for judging statistically significant 
        educational progress for purposes of implementing the 
        reconstitution provisions contained in section 1116 
        and, in so doing, describe how the State will take into 
        account issues such as the size of a school and the 
        mobility of the students in a school.
          (3) Assessments.--Each State plan shall demonstrate 
        that the State, in consultation with local educational 
        agencies, has a system of high-quality, yearly student 
        assessments in subjects that include, at a minimum, 
        mathematics, reading or language arts, and science that 
        will be used as the primary means of determining the 
        yearly performance of each local educational agency and 
        school in enabling all children to meet the State's 
        student performance standards, except that no State 
        shall be required to meet the requirements of this part 
        relating to science assessments until the beginning of 
        the 2007-2008 school year. Such assessments shall--
                  (A) be the same assessments used to measure 
                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 not 
                less than 1 or more times 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) beginning not later than school year 
                2005-2006, measure the annual performance of 
                students against the challenging State content 
                and student performance standards in grades 3 
                through 8 in at least mathematics and reading 
                or language arts, except that--
                          (i) 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 local educational 
                        agency or school, prevented full 
                        implementation of the assessments by 
                        that deadline and that the State will 
                        complete the implementation within the 
                        additional 1-year period; and
                          (ii) a State shall not be required to 
                        conduct any assessments under this 
                        subparagraph, that were not required on 
                        the day preceding the date of enactment 
                        of the Better Education for Students 
                        and Teachers Act, in any school year, 
                        if the amount made available to the 
                        State under section 6403(a) for use in 
                        that school year for such assessments 
                        is less than 50 percent of the costs of 
                        administering such assessments by the 
                        State in the previous school year, or 
                        if such assessments were not 
                        administered in the previous school 
                        year (in accordance with this clause), 
                        in the most recent school year in which 
                        such assessments were administered;
                  (G) provide for--
                          (i) the participation in such 
                        assessments of all students;
                          (ii) the reasonable adaptations and 
                        accommodations for students with 
                        disabilities defined under section 
                        602(3) of the Individuals with 
                        Disabilities Education Act necessary to 
                        measure the achievement of such 
                        students relative to State content and 
                        State student performance 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; and
                          (iv) notwithstanding clause (iii), 
                        the assessment (using tests written in 
                        English) of reading or language arts of 
                        any student who has attended school in 
                        the United States (excluding the 
                        Commonwealth of Puerto Rico) for 3 or 
                        more consecutive school years, except 
                        that--
                                  (I) if the local educational 
                                agency determines, on a case-
                                by-case individual basis, that 
                                assessments in another language 
                                and form would likely yield 
                                more accurate and reliable 
                                information on what such 
                                student knows and can do, the 
                                local educational agency may 
                                assess such student in the 
                                appropriate language other than 
                                English for 1 additional year; 
                                or
                                  (II) in extraordinary 
                                situations, if the local 
                                educational agency determines, 
                                on a case-by-case individual 
                                basis, that assessments in 
                                another language and form would 
                                likely yield more accurate and 
                                reliable information, the local 
                                educational agency may assess 
                                such student in the appropriate 
                                language for additional years;
                  (H) 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;
                  (I) produce individual student interpretive 
                and descriptive reports to be provided to 
                parents of all students, which shall include 
                scores, or other information on the attainment 
                of student performance standards, such as 
                measures of student course work over time, 
                student attendance rates, student dropout 
                rates, and student participation in advanced 
                level courses; and
                  (J) enable results to be disaggregated within 
                each State, local educational agency, and 
                school by gender, by 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, except that in the case of a 
                local educational agency or a school such 
                disaggregation shall not be required in a case 
                in which the number of students in a category 
                is insufficient to yield statistically reliable 
                information or the results would reveal 
                individually identifiable information about an 
                individual student.
          (4) Special rules.--(A) Additional measures that do 
        not meet the requirements of paragraph (3)(C) may be 
        included in the assessments if a State includes in the 
        State plan information regarding the State's efforts to 
        validate such measures.
          (B) States may measure the proficiency of students in 
        the academic subjects in which a State has adopted 
        challenging content and student performance standards 1 
        or more times during grades kindergarten through 2.
          (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 but shall not mandate a 
        specific assessment or mode of instruction.
          (6) 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 to develop the 
                capacity to comply with each of the 
                requirements of sections 1112(c)(4), 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.
          (7) Ed-flex.--A State shall not be eligible for 
        designation under the Ed-Flex Partnership Act of 1999 
        until the State develops assessments aligned with the 
        State's content standards in at least mathematics and 
        reading or language arts.
  (c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
          (1) the State will meet the requirements of 
        subsection (i)(1) and, beginning with the 2002-2003 
        school year, will produce the annual State report cards 
        described in such subsection;
          (2) the State will, beginning in school year 2002-
        2003, participate in annual State assessments of 4th 
        and 8th grade reading and mathematics under the 
        National Assessment of Educational Progress carried out 
        under section 411(b)(2) of the National Education 
        Statistics Act of 1994 if the Secretary pays the costs 
        of administering such assessments;
          (3) 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, technical assistance under section 1117, 
        and parental involvement under section 1118;
          (4)(A) where educational service agencies exist, the 
        State educational agency will consider providing 
        professional development and technical assistance 
        through such agencies; and
          (B) where educational service agencies do not exist, 
        the State educational agency will consider providing 
        professional development and technical assistance 
        through other cooperative agreements such as through a 
        consortium of local educational agencies;
          (5) the State educational agency will notify local 
        educational agencies and the public of the content and 
        student performance 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;
          (6) 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;
          (7) the State educational agency will inform the 
        Secretary and the public of how Federal laws, if at 
        all, hinder the ability of States to hold local 
        educational agencies and schools accountable for 
        student academic 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 will modify or 
        eliminate State fiscal and accounting barriers so that 
        schools can easily consolidate funds from other 
        Federal, State, and local sources for schoolwide 
        programs under section 1114;
          (10) the State educational agency has involved the 
        committee of practitioners established under section 
        1903(b) in developing the plan and monitoring its 
        implementation;
          (11) the State educational agency will inform local 
        educational agencies of the local educational agency's 
        authority to obtain waivers under subpart 3 of part B 
        of title V and, if the State is an Ed-Flex Partnership 
        State, waivers under the Education Flexibility 
        Partnership Act of 1999; and
          (12) the State will coordinate activities funded 
        under this part with other Federal activities as 
        appropriate.
  (d) Parental Involvement.--Each State plan shall describe how 
the State will support the collection and dissemination to 
local educational agencies and schools of effective parental 
involvement practices. Such practices shall--
          (1) be based on the most current research on 
        effective parental involvement that fosters achievement 
        to high standards for all children; and
          (2) be geared toward lowering barriers to greater 
        participation in school planning, review, and 
        improvement experienced by parents.
  (e) Peer Review and Secretarial Approval.--
          (1) Secretarial duties.--The Secretary shall--
                  (A) establish a peer review process to assist 
                in the review of State plans;
                  (B) appoint individuals to the peer review 
                process who are representative of parents, 
                teachers, State educational agencies, local 
                educational agencies, and who are familiar with 
                educational standards, assessments, 
                accountability, and other diverse educational 
                needs of students;
                  (C) approve a State plan within 120 days of 
                its submission unless the Secretary determines 
                that the plan does not meet the requirements of 
                this section;
                  (D) if the Secretary determines that the 
                State plan does not meet the requirements of 
                subsection (a), (b), or (c), immediately notify 
                the State of such determination and the reasons 
                for such determination;
                  (E) not decline to approve a State's plan 
                before--
                          (i) offering the State an opportunity 
                        to revise its plan;
                          (ii) providing technical assistance 
                        in order to assist the State to meet 
                        the requirements 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 1 or more specific elements of the 
                State's content standards or to use specific 
                assessment instruments or items.
          (2) State revisions.--States shall revise their plans 
        if necessary to satisfy the requirements of this 
        section.
    (f) Provision of Testing Results to Parents and Teachers.--
Each State plan shall demonstrate how the State educational 
agency will assist local educational agencies in assuring that 
results from the assessments required under this section will 
be provided to parents and teachers as soon as is practicably 
possible after the test is taken, in a manner and form that is 
understandable and easily accessible to parents and teachers.
    (g) 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.
    (h) 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.
    (i) Penalty.--If a State fails to meet the statutory 
deadlines for demonstrating that it has in place challenging 
content standards and student performance standards, and a 
system for measuring and monitoring adequate yearly progress, 
the Secretary shall withhold funds for State administration and 
activities under section 1117 until the Secretary determines 
that the State plan meets the requirements of this section.
    (j) Reports.--
          (1) Annual state report card.--
                  (A) In general.--Not later than the beginning 
                of the 2002-2003 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 and performance at 
                        each proficiency level on the State 
                        assessments described in subsection 
                        (b)(3)(F) (disaggregated by race, 
                        ethnicity, gender, disability status, 
                        migrant status, English proficiency, 
                        and socioeconomic status);
                          (ii) the percentage of students not 
                        tested (disaggregated by the same 
                        categories described in clause (i));
                          (iii) such other information (such as 
                        dropout, graduation, and school 
                        attendance rates, completion of 
                        advanced placement courses, 
                        professional qualifications of 
                        teachers, 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;
                          (iv) the number and names of each 
                        school identified for school 
                        improvement, including schools 
                        identified under section 1116(c); and
                          (v) information on the performance of 
                        local educational agencies in the State 
                        regarding making adequate yearly 
                        progress, including the number and 
                        percentage of schools in the State that 
                        did not make adequate yearly progress.
          (2) Annual local educational agency report cards.--
                  (A) In general.--Not later than the beginning 
                of the 2002-2003 school year, a local 
                educational agency that receives assistance 
                under this Act shall prepare and disseminate an 
                annual local educational agency report card.
                  (B) Minimum requirements.--The State shall 
                ensure that each local educational agency 
                collects appropriate data and includes in the 
                local educational agency's annual report the 
                information described in paragraph (1)(D) as 
                applied to the local educational agency and 
                each school served by the local educational 
                agency, and--
                          (i) in the case of a local 
                        educational agency--
                                  (I) the number and percentage 
                                of schools identified for 
                                school improvement and how long 
                                they have been so identified, 
                                including schools identified 
                                under section 1116(c); and
                                  (II) information that shows 
                                how students served by the 
                                local educational agency 
                                perform on the statewide 
                                assessment compared to students 
                                in the State as a whole; and
                          (ii) in the case of a school--
                                  (I) whether the school has 
                                been identified for school 
                                improvement; and
                                  (II) information that shows 
                                how the school's students 
                                performed on the statewide 
                                assessment compared to students 
                                in the local educational agency 
                                and the State as a whole.
                  (C) Other information.--A local educational 
                agency may include in its annual reports any 
                other appropriate information whether or not 
                such information is included in the annual 
                State report.
                  (D) Data.--A local educational agency or 
                school shall only include in its annual local 
                educational agency report card data that is 
                sufficient to yield statistically reliable 
                information, as determined by the State, and 
                does not reveal individually identifiable 
                information about an individual student.
                  (E) Public dissemination.--The local 
                educational agency shall, not later than the 
                beginning of the 2002-2003 school year, 
                publicly disseminate the information described 
                in this paragraph to all schools in the school 
                district and to all parents of students 
                attending those schools, and make the 
                information broadly available through public 
                means, such as posting on the Internet, 
                distribution to the media, and distribution 
                through public agencies, except that if a local 
                educational agency issues a report card for all 
                students, the local educational agency may 
                include the information under this section as 
                part of such report.
          (3) Preexisting report cards.--A State or local 
        educational agency that was providing public report 
        cards on the performance of students, schools, local 
        educational agencies, or the State, may continue to use 
        those reports for the purpose of this subsection, if 
        such report is modified, as may be necessary, 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 assessments 
                described in subsection (b)(3);
                  (B) beginning not later than school year 
                2004-2005, information on the achievement of 
                students on the assessments required by that 
                section, including the disaggregated results 
                for the categories of students identified in 
                subsection (b)(2)(B)(v)(II);
                  (C) the number and names of each school 
                identified for school improvement, including 
                schools identified under section 1116(c), the 
                reason why each school was so identified, and 
                the measures taken to address the performance 
                problems of such schools; and
                  (D) in any year before the State begins to 
                provide the information described in 
                subparagraph (B), information on the results of 
                student assessments (including disaggregated 
                results) required under this section.
          (5) Parents right-to-know.--
                  (A) Qualifications.--A local educational 
                agency that receives funds under this part 
                shall provide and notify the parents of each 
                student attending any school receiving funds 
                under this part that the parents may request, 
                and will be provided on request, 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 the 
                        qualifications of such 
                        paraprofessional.
                  (B) Additional information.--A school that 
                receives funds under this part shall provide to 
                parents information on the level of 
                performance, of the individual student for whom 
                they are the parent, in each of the State 
                assessments as required under this part.
                  (C) Format.--The notice and information 
                provided to parents shall be in an 
                understandable and uniform format.
  (k) Privacy.--Information collected under this section shall 
be collected and disseminated in a manner that protects the 
privacy of individuals.
  (l) Technical Assistance.--The Secretary shall provide a 
State educational agency, at the State educational agency's 
request, technical assistance in meeting the requirements of 
this section, including the provision of advice by experts in 
the development of high-quality assessments and other relevant 
areas.

SEC. 1112. [20 U.S.C. 6312] 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.] the Individuals with 
        Disabilities Education Act, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998, the 
        Head Start Act, and other Acts, as appropriate
          (2) Consolidated application.--The plan may be 
        submitted as part of a consolidated application under 
        section [14304] 5504.
    (b) Plan Provisions.--Each local educational agency plan 
shall include--

           *       *       *       *       *       *       *

                  (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; and
                  (D) determine the literacy levels of first 
                graders and their needs for interventions, 
                including a description of how the agency will 
                ensure that any such assements--
                          (i) are developmentally appropriate;
                          (ii) use multiple measures to provide 
                        information about the variety of skills 
                        that research has identified as leading 
                        to early reading; and
                          (iii) are administered to students in 
                        the language most likely to yield valid 
                        results;

           *       *       *       *       *       *       *

          (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, which strategy shall 
        be coordinated with activities under title II if the 
        local educational agency receives funds under title II;

           *       *       *       *       *       *       *

                  (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,] 
                programs and 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;

           *       *       *       *       *       *       *

          [(9) where appropriate, description of how the local 
        educational agency will use funds under this part to 
        support pre-school 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.]
          (9) where appropriate, a description of how the local 
        educational agency will use funds under this part to 
        support early childhood education programs under 
        section 1120B; and
          (10) a description of the strategy the local 
        educational agency will use to implement effective 
        parental involvement under section 1118.
      [(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.]
    (c) Assurances.--Each local educational agency plan shall 
provide assurances that the local educational agency will--
          (1) inform eligible schools and parents of schoolwide 
        project authority;
          (2) provide technical assistance and support to 
        schoolwide programs;
          (3) 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;
          (4) fulfill such agency's school improvement 
        responsibilities under section 1116, including taking 
        corrective actions under section 1116(c)(5);
          (5) work in consultation with schools as the schools 
        develop and implement their plans or activities under 
        sections 1118 and 1119;
          (6) 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;
          (7) 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;
          (8) 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;
          (9) comply with the requirements of section 1119 
        regarding professional development;
          (10) inform eligible schools of the local educational 
        agency's authority to obtain waivers on the school's 
        behalf under subpart 3 of part B of title V, and if the 
        State is an Ed-Flex Partnership State, waivers under 
        the Education Flexibility Partnership Act of 1999;
          (11) ensure, through incentives for voluntary 
        transfers, the provision of professional development, 
        recruitment programs, or other effective strategies, 
        that low-income students and minority students are not 
        taught at higher rates than other students by 
        unqualified, out-of-field, or inexperienced teachers;
          (12) use the results of the student assessments 
        required under section 1111(b)(3), and other measures 
        or indicators available to the agency, to review 
        annually the progress of each school served by the 
        agency and receiving funds under this title to 
        determine whether or not all of the schools are making 
        the annual progress necessary to ensure that all 
        students will meet the State's proficient level of 
        performance on the State assessments described in 
        section 1111(b)(3) within 10 years of the date of 
        enactment of the Better Education for Students and 
        Teachers Act;
          (13) ensure that the results from the assessments 
        required under section 1111 will be provided to parents 
        and teachers as soon as is practicably possible after 
        the test is taken, in a manner and form that is 
        understandable and easily accessible to parents and 
        teachers.

           *       *       *       *       *       *       *

    (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].

           *       *       *       *       *       *       *

          (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] sections 1118 and 
        1119.

           *       *       *       *       *       *       *

SEC. 1113. [20 U.S.C. 6313] ELIGIBLE SCHOOL ATTENDANCE AREAS.

    (a) Determination.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  (B) use funds received under this part in a 
                school that is not 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) * * *

           *       *       *       *       *       *       *

                          (iii) the funds expended from such 
                        other sources equal or exceed the 
                        amount that would be provided under 
                        this part[.]; and
                  (D) designate and serve a school attendance 
                area or school that is not an eligible school 
                attendance area under subsection (a)(2), but 
                that was an eligible school attendance area and 
                was served in the fiscal year preceding the 
                fiscal year for which the determination is 
                made, but only for 1 additional fiscal year.

           *       *       *       *       *       *       *

SEC. 1114. [20 U.S.C. 6314] 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.]
          (1) In General.--A local educational agency may use 
        funds under this part, together with other Federal, 
        State, and local funds, 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, for the initial year 
        of the schoolwide program.

           *       *       *       *       *       *       *

          (4) [Special rule.--Exemption from statutory and 
        regulatory requirements.--(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.

           *       *       *       *       *       *       *

                   (C) A school that chooses to use funds from 
                such other programs under this section shall 
                not be required to maintain separate fiscal 
                accounting records, by program, that identify 
                the specific activities supported by those 
                particular funds as long as the school 
                maintains records that demonstrate that the 
                schoolwide program, considered as a whole, 
                addresses the intent and purposes of each of 
                the programs that were consolidated to support 
                the schoolwide program.
    (b) Components of a Schoolwide Program.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                          (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].

           *       *       *       *       *       *       *

                  (E) Strategies to increase parental 
                involvement[, such as family literary services] 
                (including activities described in section 
                1118), such as family literacy services, in-
                school volunteer opportunities, or parent 
                membership on school-based leadership or 
                management teams.

           *       *       *       *       *       *       *

          (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] Better Education for 
        Students and Teachers Act), 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--

           *       *       *       *       *       *       *

                  (iv) describes how the school will provide 
                individual student assessment results in a 
                language the family can understand, including 
                an interpretation of those results, to the 
                parents of a child who participates in the 
                assessment required by section 1111(b)(3);

           *       *       *       *       *       *       *

          (C) The comprehensive plan shall be--
                  (i) developed during a one-year period, 
                unless--

           *       *       *       *       *       *       *

                          (II) the school is operating a 
                        schoolwide program on the day preceding 
                        the date of enactment of the [Improving 
                        America's Schools Act of 1999] Better 
                        Education for Students and Teachers 
                        Act, 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;
                  (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.

           *       *       *       *       *       *       *

SEC. 1115. [20 U.S.C. 6315] TARGETED ASSISTANCE SCHOOLS.

    (a) In General.--* * *

           *       *       *       *       *       *       *

                          (ii) children who are not yet at a 
                        grade level where the local education 
                        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) 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, or in early childhood education 
                services under this title, 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.

           *       *       *       *       *       *       *

                  [(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]
                  (G) provide opportunities for professional 
                development with resources provided under this 
                part, and to the extent practicable, from other 
                sources, for teachers, principals, 
                administrators, paraprofessionals, pupul 
                services personnel, and parents, 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.] (including activities described in 
                section 1118), such as family literacy 
                services, in-school volunteer opportunities, or 
                parent membership on school-based leadership or 
                management teams.

           *       *       *       *       *       *       *

SEC. 1115B. PUPIL SAFETY AND FAMILY SCHOOL CHOICE.

    (a) In General.--If a student is eligible to be served 
under section 1115(b), or attends a school eligible for a 
schoolwide program under section 1114, and--
          (1) becomes a victim of a violent criminal offense 
        while in or on the grounds of a public elementary 
        school or secondary school that the student attends and 
        that receives assistance under this part, then the 
        local educational agency shall allow such student to 
        transfer to another public school or public charter 
        school in the same State as the school where the 
        criminal offense occurred, that is selected by the 
        student's parent unless allowing such transfer is 
        prohibited--
                  (A) under the provisions of a State or local 
                law; or
                  (B) by a local educational agency policy that 
                is approved by a local school board; or
          (2) the public school that the student attends and 
        that receives assistance under this part has been 
        designated as an unsafe public school, then the local 
        educational agency may allow such student to transfer 
        to another public school or public charter school in 
        the same State as the school where the criminal offense 
        occurred, that is selected by the student's parent.
    (b) State Educational Agency Determinations.--
          (1) The State educational agency shall determine, 
        based upon State law, what actions constitute a violent 
        criminal offense for purposes of this section.
          (2) The State educational agency shall determine 
        which schools in the State are unsafe public schools.
          (3) The term ``unsafe public schools'' means a public 
        school that has serious crime, violence, illegal drug, 
        and discipline problems, as indicated by conditions 
        that may include high rates of--
                  (A) expulsions and suspensions of students 
                from school;
                  (B) referrals of students to alternative 
                schools for disciplinary reasons, to special 
                programs or schools for delinquent youth, or to 
                juvenile court;
                  (C) victimization of students or teachers by 
                criminal acts, including robbery, assault and 
                homicide;
                  (D) enrolled students who are under court 
                supervision for past criminal behavior;
                  (E) possession, use, sale or distribution of 
                illegal drugs;
                  (F) enrolled students who are attending 
                school while under the influence of illegal 
                drugs or alcohol;
                  (G) possession or use of guns or other 
                weapons;
                  (H) participation in youth gangs; or
                  (I) crimes against property, such as theft or 
                vandalism.
    (c) Transportation Costs.--The local educational agency 
that serves the public school in which the violent criminal 
offense occurred or that serves the designated unsafe public 
school may use funds provided under this part to provide 
transportation services or to pay the reasonable costs of 
transportation for the student to attend the school selected by 
the student's parent.
  (d) Special Rule.--Any school receiving assistance provided 
under this section shall comply with title VI of the Civil 
Rights Act of 1964 (42 U.S.C. 2000d et seq.) and not 
discriminate on the basis of race, color, or national origin.
  (e) Part B of the Individuals With Disabilities Education 
Act.--Nothing in this section shall be construed to affect the 
requirements of part B of the Individuals with Disabilities 
Education Act (20 U.S.C. 1411 et seq.).
    (f) Maximum Amount.--Notwithstanding any other provision of 
this section, the amount of assistance provided under this part 
for a student who elects a transfer under this section shall 
not exceed the per pupil expenditures for elementary or 
secondary school students as provided by the local educational 
agency that serves the school involved in the transfer.

[SEC, 116, [20 U.S.C. 6317] 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 plant 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 an 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 non-profit 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 
        sub-paragraph (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
                  [(B) if such agency determines that a local 
                educational agency failed to carry out the 
                local educational agency's responsibilities 
                under paragraphs (4) and (5), take such 
                corrective actions as the State educational 
                agency deems appropriate and which are in 
                compliance with State law.
          [(7) Special rule.--Schools that, for at least two of 
        the three years following identification under 
        paragraph (1), make adequate progress toward meeting 
        the State's proficient and advanced levels of 
        performance shall no longer need to be identified for 
        school improvement.
    [(d) State Review and Local Educational Agency 
Improvement.--
          [(1) In general.--A State educational agency 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 progress as defined in section 
                1111(b)(2)(A)(ii) toward meeting the State's 
                student performance 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, 
                includingstatistically sound disaggregated 
                results, as required by section 1111(b)(3)(I).
          [(2) Rewards.--In the case of a local educational 
        agency that for three consecutive years has met or 
        exceeded the State's definition of adequate progress as 
        defined in section 1111(b)(2)(A)(ii), the State may 
        make institutional and individual rewards of the kinds 
        described for individual schools in paragraph (2) of 
        section 1117(c).
          [(3) Identification.--(A) A State educational agency 
        shall identify for improvement any local educational 
        agency that--
                  [(i) for two consecutive years, is not making 
                adequate progress as defined in section 
                1111(b)(2)(A)(ii) in schools served under this 
                part toward meeting the State' student 
                performance standards, except that schools 
                served by the local educational agency that are 
                operating targeted assistance programs may be 
                reviewed on the basis of the progress of only 
                those students served under this part; or
                  [(ii) has failed to meet the criteria 
                established by the State through such State's 
                transitional procedure under section 
                1111(b)(7)(B) for two consecutive years.
          [(B) Before identifying a local educational agency 
        for improvement under paragraph (1), the State 
        educational agency shall provide the local educational 
        agency with an opportunity to review the school-level 
        data, including assessment data, on which such 
        identification is based. If the local educational 
        agency believes that such identification for 
        improvement is in error due to statistical or other 
        substantive reasons, such local educational agency may 
        provide evidence to the State educational agency to 
        support such belief.
          [(4) Local educational agency revisions.--(A) Each 
        local educational agency identified under paragraph (3) 
        shall, in consultation with schools, parents, and 
        educational experts, revise its local educational 
        agency plan under section 1112 in ways that have the 
        greatest likelihood of improving the performance of 
        schools served by the local educational agency under 
        this part in meeting the State's student performance 
        standards.
          [(B) Such revision shall include determining why the 
        local educational agency's plan failed to bring about 
        increased achievement.
          [(5) State educational agency responsibility.--(A) 
        For each local educational agency identified under 
        paragraph (3), the State educational agency shall--
                  [(i) provide technical or other assistance, 
                if requested, as authorized under section 1117, 
                to better enable the local educational agency 
                to--
                          [(I) develop and implement the local 
                        educational agency's revised plan; and
                          [(II) work with schools needing 
                        improvement; and
                  [(ii) make available to the local educational 
                agencies farthest from meeting the State's 
                standards, if requested, assistance under 
                section 1117.
          [(B) Technical or other assistance may be provided by 
        the State educational agency directly, or by an 
        institution of higher education, a private nonprofit 
        organization, an educational service agency or other 
        local consortium, a technical assistance center, or 
        other entities with experience in assisting local 
        educational agencies improve achievement, and may 
        include--
                  [(i) interagency collaborative agreements 
                between the local educational agency and other 
                public agencies to provide health, pupil 
                services, and other social services needed to 
                remove barriers to learning; and
                  [(ii) waivers or modification of requirements 
                of State law or regulation (in States in which 
                such waivers are permitted) that impede the 
                ability of a local educational agency to 
                educate students.
          [(6) Corrective action.--(A) Except as provided in 
        subparagraph (C), after providing technical assistance 
        pursuant to paragraph (5) and taking other remediation 
        measures, the State educational agency may take 
        corrective action at any time against a local 
        educational agency that has been identified under 
        paragraph (3) but during the fourth year following 
        identification under paragraph (3), shall take such 
        action against any local educational agency that still 
        fails to make adequate progress.
          [(B)(i) Corrective actions are those actions, 
        consistent with State law, determined and made public 
        and disseminated by the State educational agency, which 
        may include--
                  [(I) the withholding of funds;
                  [(II) reconstitution of school district 
                personnel;
                  [(III) removal of particular schools from the 
                jurisdiction of the local educational agency 
                and establishment of alternative arrangements 
                for public governance and supervision of such 
                schools;
                  [(IV) appointment by the State educational 
                agency of a receiver or trustee to administer 
                the affairs of the local educational agency in 
                place of the superintendent and school board;
                  [(V) the abolition or restructuring of the 
                local educational agency;
                  [(VI) the authorizing of students to transfer 
                from a school operated by one local educational 
                agency to a school operated by another local 
                educational agency; and
                  [(VII) a joint plan between the State and the 
                local educational agency that addresses 
                specific elements of student performance 
                problems and that specifies State and local 
                responsibilities under the plan.
          [(ii) Notwithstanding clause (i), corrective actions 
        taken pursuant to this part shall not include the 
        actions described in subclauses (I), (II), and (III) of 
        clause (i) until the State has developed assessments 
        that meet the requirements of paragraph (3)(C) of 
        section 1111(b).
          [(C) Prior to implementing any corrective action, the 
        State educational agency shall provide due process and 
        a hearing (if State law provides for such due process 
        and a hearing) to any local educational agency 
        identified under paragraph (3) and may refrain from 
        such corrective action for one year after the four-year 
        period described in subparagraph (A) to the extent that 
        the failure to make progress can be attributed to such 
        extenuating circumstances as determined by the State 
        educational agency.
          [(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.
    [(e) Construction.--Nothing in this section shall be 
construed to alter or otherwise affect the rights, remedies, 
and procedures afforded school or school district employees 
under Federal, State, or local laws (including applicable 
regulations or court orders) or under the terms of collective 
bargaining agreements, memoranda of understanding, or other 
agreements between such employees and their employers.]

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)(B) toward enabling its students to 
        meet the State's student performance standards 
        described in the State plan;
          (3) 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; and
          (4) annually review the effectiveness of the actions 
        and activities the schools are carrying out under this 
        part with respect to parental involvement activities 
        under section 1118, professional development activities 
        under section 1119, and other activities assisted under 
        this Act.
    (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) School improvement.--(A) Subject to subparagraph 
        (B), a local educational agency shall identify for 
        school improvement any elementary school 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)(B); or
                  (ii) was in school improvement status under 
                this section on the day preceding the date of 
                enactment of the Better Education for Students 
                and Teachers Act.
          (B) Subparagraph (A) shall not apply to a school if 
        almost every student in such school is meeting the 
        State's proficient level of performance.
          (C) 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.
          (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 reconstitution under paragraph (7), 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.
          (B) If the principal of a school proposed for 
        identification under paragraph (1), (6), or (7) 
        believes 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) Not later than 30 days after a local educational 
        agency makes an initial determination concerning 
        identifying a school under paragraph (1), (6), or (7), 
        the local educational agency shall make public a final 
        determination on the status of the school.
          (3) School plan.--(A) 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)(B)(v)(II) and enrolled in the school 
                will meet the State's proficient level of 
                performance on the State assessment described 
                in section 1111(b)(3) within 10 years after the 
                date of enactment of the Better Education for 
                Students and Teachers Act;
                  (iii) provide an assurance that the school 
                will 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; and
                          (II) meets the requirements for 
                        professional development activities 
                        under section 1119;
                  (iv) specify how the funds described in 
                clause (iii) will be used to remove the school 
                from school improvement status;
                  (v) establish specific annual, objective 
                goals for continuous and significant progress 
                by each group of students specified in section 
                1111(b)(2)(B)(v)(II) and enrolled in the school 
                that will ensure that all such groups of 
                students will meet the State's proficient level 
                of performanceon the State assessment described 
                in section 1111(b)(3) within 10 years after the 
                date of enactment of the Better Education for 
                Students and Teachers Act;
                  (vi) identify how the school will provide 
                written notification about the identification 
                to the parents of each student enrolled in such 
                school, in a format and, to the extent 
                practicable, in a language the parents can 
                understand;
                  (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) include strategies to promote 
                effective parental involvement in the school.
          (B) The local educational agency may condition 
        approval of a school plan on inclusion of 1 or more of 
        the corrective actions specified in paragraph 
        (6)(D)(ii).
          (C) 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 school was identified for 
        school improvement.
          (D) The local educational agency, within 45 days 
        after receiving a school plan, 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 the plan meets the requirements 
                of this paragraph.
          (4) Technical assistance.--(A) 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.
          (B) Such technical assistance--
                  (i) shall include assistance in analyzing 
                data from the assessments required under 
                section 1111(b)(3), and other samples of 
                student work, to identify and address 
                instructional problems and solutions;
                  (ii) shall include assistance in identifying 
                and implementing instructional strategies and 
                methods that are tied to 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 performance 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) 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 performance 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 performance;
                  (D) an explanation of what the local 
                educational agency or State educational agency 
                is doing to help the school address the 
                performance problem; and
                  (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.
          (6) Corrective action.--(A) In this subsection, the 
        term `corrective action' means action, consistent with 
        State and local 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 problem 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 performance on the State assessment 
                described in section 1111(b)(3).
          (B) In order to help students served under this part 
        meet challenging State standards, each local 
        educational agency shall implement a system of 
        corrective action in accordance with subparagraphs (C) 
        through (F) and paragraph (7).
          (C) After providing technical assistance under 
        paragraph (4), the local educational agency--
                  (i) may identify for corrective action and 
                take corrective action with respect to any 
                school served by the local educational agency 
                under this part that fails to make adequate 
                yearly progress, as defined by the State under 
                section 1111(b)(2)(B), at the end of the first 
                year after the school year in which the school 
                was identified under paragraph (1);
                  (ii) 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)(B), at the end of 
                        the second year after the school year 
                        in which the school was identified 
                        under paragraph (1); or
                          (II) was in program-improvement 
                        status for 2 years or in corrective-
                        action status under this subsection on 
                        the day preceding the date of enactment 
                        of the Better Education for Students 
                        and Teachers Act;
                  (iii) shall continue to provide technical 
                assistance while instituting any corrective 
                action under clause (i) or (ii); and
                  (iv) shall promptly notify parents of the 
                option to transfer their child to another 
                public school under subparagraph (D)(i).
          (D) In the case of a school described in subparagraph 
        (C)(ii), 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--
                          (I) such an option is prohibited by 
                        State law or local law (which includes 
                        a policy adopted by the school board); 
                        or
                          (II) the local educational agency 
                        demonstrates to the satisfaction of the 
                        State educational agency that the local 
                        educational agency lacks the capacity 
                        toprovide that option to all students 
                        in the school who request it, in which 
                        case it shall permit as many students 
                        as possible (selected by the agency on 
                        an equitable basis) to make such a 
                        transfer; and
                  (ii) take at least 1 of the following 
                corrective actions:
                          (I) Make alternative governance 
                        arrangements, such as reopening the 
                        school as a public charter school.
                          (II) Replace the relevant school 
                        staff.
                          (III) Institute and fully implement a 
                        new curriculum, including providing 
                        appropriate professional development 
                        for all relevant staff, that is tied to 
                        scientifically based research and 
                        offers substantial promise of improving 
                        educational performance for low-
                        performing students.
          (E) 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) 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) Reconstitution.--(A) If, after 1 additional year, 
        a school subject to corrective action under paragraph 
        (6) 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, 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), including affording each 
                such student the same right to attend any such 
                school as is afforded to any child who is a new 
                resident of that school's attendance area; and
                  (ii) prepare a plan and make necessary 
                arrangements to carry out subparagraph (B).
          (B) 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:
                  (i) Reopening the school as a public charter 
                school.
                  (ii) Replacing all or most of the school 
                staff.
                  (iii) Making alternative governance 
                arrangements.
          (C) The local educational agency shall provide prompt 
        notice to teachers and parents whenever subparagraph 
        (A) or (B) applies, shall provide the teachers and 
        parents adequate opportunity to comment before taking 
        any action under those paragraphs and to participate in 
        developing any plan under subparagraph (A)(ii), and 
        shall provide parents an explanation of the option 
        under subparagraph (A)(i).
          (8) Transportation.--In any case described in 
        paragraph (6)(D)(i) or (7)(A)(i), the local educational 
        agency shall provide, or shall pay for the provision 
        of, transportation for the student to the school the 
        child attends, provided that payments for such purpose 
        do not exceed 15 percent of the local educational 
        agency's allocation under this part.
          (9) Duration of reconstitution.--If any school 
        identified for reconstitution under paragraph (7) makes 
        adequate yearly progress for 2 consecutive years and 
        children in that school from economically disadvantaged 
        families are making statistically significant 
        educational progress over that 2-year period, then the 
        local educational agency need no longer subject the 
        school to corrective action or identify the school as 
        in need of improvement.
          (10) State educational agency responsibilities.--The 
        State educational agency shall--
                  (A) make technical assistance under section 
                1117 available to all schools identified for 
                school improvement and corrective action 
                underthis subsection, to the extent possible 
                with funds reserved under section 1003; and
                  (B) if the State educational agency 
                determines that a local educational agency 
                failed to carry out its responsibilities under 
                this subsection, take such corrective actions 
                as the State educational agency determines 
                appropriate and in compliance with State law.
    (d) State Review and Local Educational Agency 
Improvement.--
          (1) In general.--A State educational agency shall 
        review annually--
                  (A) the progress of each local educational 
                agency receiving funds under this part to 
                determine whether schools receiving assistance 
                under this part are making adequate progress as 
                defined in section 1111(b)(2)(B) toward meeting 
                the State's student performance standards and 
                to determine whether each local educational 
                agency is carrying out its responsibilities 
                under section 1116 and section 1117; and
                  (B) the effectiveness of the activities 
                carried out under this part by each local 
                educational agency that receives funds under 
                this part and is served by the State 
                educational agency with respect to parental 
                involvement, professional development, and 
                other activities assisted under this part.
          (2) Rewards.--In the case of a local educational 
        agency that for 3 consecutive years has met or exceeded 
        the State's definition of adequate progress as defined 
        in section 1111(b)(2)(B), the State may make 
        institutional and individual rewards of the kinds 
        described for individual schools in paragraph (2) of 
        section 1117(c).
          (3) Identification.--(A) A State educational agency 
        shall identify for improvement any local educational 
        agency that for 2 consecutive years, is not making 
        adequate progress as defined in section 1111(b)(2)(B) 
        in schools served under this part toward meeting the 
        State's student performance standards, except that 
        schools served by the local educational agency that are 
        operating targeted assistance programs may be reviewed 
        on the basis of the progress of only those students 
        served under this part.
          (B) Before identifying a local educational agency for 
        improvement under paragraph (1), the State educational 
        agency shall provide the local educational agency with 
        an opportunity to review the school-level data, 
        including assessment data, on which such identification 
        is based. If the local educational agency believes that 
        such identification for improvement is in error due to 
        statistical or other substantive reasons, such local 
        educational agency may provide evidence to the State 
        educational agency to support such belief.
          (4) Local educational agency revisions.--(A) Each 
        local educational agency identified under paragraph (3) 
        shall, not later than 3 months after being so 
        identified, revise a local educational agency plan as 
        described under section 1112. The plan shall--
                  (i) include specific State-determined yearly 
                progress requirements in subjects and grades to 
                ensure that all students will meet proficient 
                levels of performance within 10 years;
                  (ii) address the fundamental teaching and 
                learning needs in the schools of that agency, 
                and the specific academic problems of low-
                performing students including a determination 
                of why the local educational agency's prior 
                plan failed to bring about increased student 
                achievement and performance;
                  (iii) incorporate scientifically based 
                research strategies that strengthen the core 
                academic program in the local educational 
                agency;
                  (iv) address the professional development 
                needs of the instructional staff by committing 
                to spend not less than 10 percent of the funds 
                received by the school under this part during 1 
                fiscal year for professional development, which 
                funds shall supplement and not supplant 
                professional development that instructional 
                staff would otherwise receive, and which 
                professional development shall increase the 
                content knowledge of teachers and build the 
                capacity of the teachers to align classroom 
                instruction with challenging content standards 
                and to bring all students to proficient or 
                advanced levels of performance as determined by 
                the State;
                  (v) identify specific goals and objectives 
                the local educational agency will undertake for 
                making adequate yearly progress, which goals 
                and objectives shall be consistent with State 
                standards;
                  (vi) identify how the local educational 
                agency will provide written notification to 
                parents in a format, and to the extent 
                practicable, in a language that the parents can 
                understand;
                  (vii) specify the responsibilities of the 
                State educational agency and the local 
                educational agency under the plan; and
                  (viii) include strategies to promote 
                effective parental involvement in the school.
          (5) State educational agency responsibility.--(A) For 
        each local educational agency identified under 
        paragraph (3), the State educational agency shall--
                  (i) provide technical or other assistance, if 
                requested, as authorized under section 1117, to 
                better enable the local educational agency to--
                          (I) develop and implement the local 
                        educational agency's revised plan; and
                          (II) work with schools needing 
                        improvement; and
                  (ii) make available to the local educational 
                agencies farthest from meeting the State's 
                standards, if requested, assistance under 
                section 1117.
          (B) Technical assistance provided under this section 
        by the State educational agency oran entity authorized 
        by such agency shall be supported by effective methods 
        and scientifically based research instructional 
        strategies. Such technical assistance shall address 
        problems, if any, in implementing the parental 
        involvement activities described in section 1118 and 
        the professional development activities described in 
        section 1119.
          (6) Corrective action.--(A) Except as provided in 
        subparagraph (C), after providing technical assistance 
        pursuant to paragraph (5) and taking other remediation 
        measures, the State educational agency may take 
        corrective action at any time against a local 
        educational agency that has been identified under 
        paragraph (3), but, during the fourth year following 
        identification under paragraph (3), shall take such 
        action against any local educational agency that still 
        fails to make adequate progress.
          (B)(i) Consistent with State and local law, in order 
        to help students served under this part meet 
        challenging State and local standards, each State 
        educational agency shall implement a corrective action 
        system in accordance with the following:
                  (I) After providing technical assistance as 
                described under paragraph (5), the State 
                educational agency--
                          (aa) may take corrective action at 
                        any time with respect to a local 
                        educational agency that has been 
                        identified under paragraph (3);
                          (bb) shall take corrective action 
                        with respect to any local educational 
                        agency that fails to make adequate 
                        yearly progress, as defined by the 
                        State; and
                          (cc) shall continue to provide 
                        technical assistance while implementing 
                        any corrective action.
                  (II) Consistent with State and local law, in 
                the case of a local educational agency 
                described under subclause (I), the State 
                educational agency shall not take less than 1 
                of the following corrective actions:
                          (aa) Instituting and fully 
                        implementing a new curriculum that is 
                        based on State and local standards, 
                        including appropriate scientifically 
                        based research professional development 
                        for all relevant staff that offers 
                        substantial promise of improving 
                        educational achievement for low-
                        performing students.
                          (bb) Restructuring the local 
                        educational agency.
                          (cc) Developing and implementing a 
                        joint plan between the State 
                        educational agency and the local 
                        educational agency that addresses 
                        specific elements of student 
                        performance problems and that specifies 
                        the responsibilities of the State 
                        educational agency and the local 
                        educational agency under the plan.
                          (dd) Reconstituting school district 
                        personnel.
                          (ee) Making alternative governance 
                        arrangements.
                  (III) Consistent with State and local law, in 
                the case of a local educational agency 
                described under subclause (I), the State 
                educational agency may take 1 of the following 
                corrective actions:
                          (aa) Deferring, reducing, or 
                        withholding funds.
                          (bb) Restructuring or abolishing the 
                        local educational agency.
                          (cc) Removal of particular schools 
                        from the jurisdiction of the local 
                        educational agency and establishment of 
                        alternative arrangements for public 
                        governance and supervision of such 
                        schools.
                          (dd) Appointment by the State 
                        educational agency of a receiver or 
                        trustee to administer the affairs of 
                        the local educational agency in place 
                        of the superintendent and school board.
          (ii) Notwithstanding clause (i), corrective actions 
        taken pursuant to this section shall not include the 
        actions described in subclauses (I), (II), and (III) of 
        clause (i) until the State has developed assessments 
        that meet the requirements of paragraph (3) of section 
        1111(b).
          (C) Hearing.--Prior to implementing any corrective 
        action, the State educational agency shall provide 
        notice and a hearing to the affected local educational 
        agency, if State law provides for such notice and 
        hearing. The hearing shall take place not later than 45 
        days following the decision to implement corrective 
        action.
          (D) Notification to parents.--The State educational 
        agency shall publish, and disseminate toparents and the 
        public, any corrective action the State educational 
        agency takes under this paragraph through a widely read 
        or distributed medium.
          (E) Delay.--A State educational agency may delay, for 
        a period not to exceed 1 year, implementation of 
        corrective action if--
                  (i) the State educational agency determines 
                that the local educational agency is meeting 
                the State-determined yearly progress 
                requirements in subjects and grades included in 
                the State assessments; and
                  (ii) the schools within the local educational 
                agency will meet the State's criteria for 
                improvement within 1 year.
          (F) Waivers.--The State educational agency shall 
        review any waivers approved prior to the date of 
        enactment of the Better Education for Students and 
        Teachers Act for a local educational agency designated 
        for improvement or corrective action and shall 
        terminate any waiver approved by the State under the 
        Educational Flexibility Partnership Act of 1999 if the 
        State determines, after notice and an opportunity for a 
        hearing, that the waiver is not helping the local 
        educational agency make yearly progress to meet the 
        objectives and specific goals described in the local 
        educational agency's improvement plan.
          (7) Special rule.--Local educational agencies that 
        for at least 2 of the 3 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.
  (e) Construction.--Nothing in this section shall be construed 
to alter or otherwise affect the rights, remedies, and 
procedures afforded school or school district employees under 
Federal, State, or local laws (including applicable regulations 
or court orders) or under the terms of collective bargaining 
agreements, memoranda of understanding, or other agreements 
between such employees and their employers.

SEC. 117. [20 U.S.C. 6318] STATE ASSISTANCE FOR SCHOOL SUPPORT AND 
                    IMPROVEMENT.

    (a) System for Support.--
          (1) State support.--* * *

           *       *       *       *       *       *       *

          (3) Priorities.--In carrying out this section, a 
        State educational agency shall--
                  (A) first, provide support and assistance to 
                local educational agencies subject to 
                corrective action described in section 1116 and 
                assist schools, in accordance with section 
                1116, for which a local educational agency has 
                failed to carry out its responsibilities under 
                section 1116;
                  (B) second, provide support and assistance to 
                other local educational agencies and schools 
                identified as in need of improvement under 
                section 1116; and
                  (C) third, provide support and assistance to 
                other local educational agencies and schools 
                participating under this part that need support 
                and assistance in order to achieve the purpose 
                of this part.

           *       *       *       *       *       *       *

    (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] comprehensive regional technical assistance centers, 
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.]
          (1) Approaches.--
                  (A) In general.--In order to achieve the 
                purpose described in subsection (a), each such 
                system shall give priority to using funds made 
                available to carry out this section--
                          (i) to establish school support teams 
                        for assignment to and working in 
                        schools in the State that are described 
                        in subsection (a)(3)(A); and
                          (ii) to provide such support as the 
                        State educational agency determines to 
                        be necessary and available to assure 
                        the effectiveness of such teams.
                  (B) Composition.--Each school support team 
                shall be composed of persons knowledgeable 
                about successful schoolwide projects, school 
                reform, and improving educational opportunities 
                for low-achieving students, including--
                          (i) teachers;
                          (ii) pupil services personnel;
                          (iii) parents;
                          (iv) distinguished teachers or 
                        principals;
                          (v) representatives of institutions 
                        of higher education;
                          (vi) regional educational 
                        laboratories or research centers;
                          (vii) outside consultant groups; or
                          (viii) other individuals as the State 
                        educational agency, in consultation 
                        with the local educational agency, may 
                        determine appropriate.
                  (C) Functions.--Each school support team 
                assigned to a school under this section shall--
                          (i) review and analyze all facets of 
                        the school's operation, including the 
                        design and operation of the 
                        instructional program, and assist the 
                        school in developing recommendations 
                        for improving student performances in 
                        that school;
                          (ii) collaborate, with school staff 
                        and the local educational agency 
                        serving the school, in the design, 
                        implementation, and monitoring of a 
                        plan that, if fully implemented, can 
                        reasonably be expected to improve 
                        student performance and help the school 
                        meet its goals for improvement, 
                        including adequate yearly progress 
                        under section 1111(b)(2)(B);
                          (iii) evaluate, at least 
                        semiannually, the effectiveness of 
                        school personnel assigned to the 
                        school, including identifying 
                        outstanding teachers and principals, 
                        and make findings and recommendations 
                        (including the need for additional 
                        resources, professional development, or 
                        compensation) to the school, the local 
                        educational agency, and, where 
                        appropriate, the State educational 
                        agency; and
                          (iv) make additional recommendations 
                        as the school implements the plan 
                        described in clause (ii) to the local 
                        educational agency and the State 
                        educational agency concerning 
                        additional assistance and resources 
                        that are needed by the school or the 
                        school support team.
                  (D) Continuation of assistance.--After 1 
                school year, the school support team may 
                recommend that the school support team continue 
                to provide assistance to the school, or that 
                the local educational agency or the State 
                educational agency, as appropriate, take 
                alternative actions with regard to the school.
          (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 ad-vanced level of student 
                        performance; and
                          (ii) equity in participation and 
                        achievement of students by sex has been 
                        achieved or significantly improved.] 
                        part.

           *       *       *       *       *       *       *

                  (C) States shall use funds reserved under 
                section 1003(a) and funds made available under 
                section 1001(f) to allow schools identified 
                under this paragraph to carry out the 
                activities described in subparagraph (B) [and 
                may] 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.] exemplary 
                performance.

           *       *       *       *       *       *       *

          (3) Distinguished [educators] Teachers and 
        Principals.--
                  [(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.] (A) The State may 
                also recognize and provide financial awards to 
                teachers or principals in a school described in 
                paragraph (2) whose students consistently make 
                significant gains in academic achievement.
                  (B) When possible, distinguished [educators] 
                teachers and principals 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 imple-ment their plans, including 
                participation in the support teams described in 
                paragraph (1).]

           *       *       *       *       *       *       *

SEC. 1118. [20 U.S.C. 6319] PARENTAL INVOLVEMENT.

    (a) Local Educational Agency Policy.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  (B) provide the coordination, technical 
                assistance, and other support necessary to 
                assist participating schools activities to 
                improve student achievement and student and 
                school performance in planning and implementing 
                effective parent [involvement];

           *       *       *       *       *       *       *

    (b) School Parental Involvement Policy.--
          (1) In general.-- Each school served under this part 
        shall jointly develop with, and distribute (in a 
        language parents can understand) 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 made 
        available to the local community and shall be updated 
        periodically to meet the changing needs of parents and 
        the school.

           *       *       *       *       *       *       *

    (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,] parents of children served by the 
        school or local educational agency, as appropriate, in 
        understanding 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; and
                  (C) using technology, as appropriate, to 
                foster parental involvement;

           *       *       *       *       *       *       *

          (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.]
          (15) may establish a school district wide parent 
        advisory council to advise the school and local 
        educational agency on all matters related to parental 
        involvement in programs supported under this section; 
        and
          (16) shall provide such other reasonable support for 
        parental involvement activities under this section as 
        parents may request, which may include emerging 
        technologies.
    (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], parents of migratory 
children, or parent 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 services and programs 
provided by such centers, advising parents on how to use such 
centers, and helping parents to contact such centers.]
    (g) Information From Parental Information and Resource 
Centers.--In a State where a parental information and resource 
center is established to provide training, information, and 
support to parents and individuals who work with local parents, 
local educational agencies, and schools receiving assistance 
under this part, each school or local educational agency that 
receives assistance under this part and is located in the 
State, shall assist parents and parental organizations by 
informing such parents and organizations of the existence and 
purpose of such centers, 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.
    (h) Review.--The State educational agency shall review the 
local educational agency's parental involvement policies and 
practices to determine if the policies and practices meet the 
requirements of this section.

SEC. 1119. [20 U.S.C. 6301] PROFESSIONAL DEVELOPMENT.

    (a) Program Requirements.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  [(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:]
                  (A) support professional development 
                activities that give teachers, principals, 
                administrators, paraprofessionals, pupil 
                services personnel, and parents the knowledge 
                and skills to provide students with the 
                opportunity to meet challenging State or local 
                content standards and student performance 
                standards;
                  (B) advance teacher understanding of 
                effective instructional strategies, based on 
                research for improving student achievement, at 
                a minimum in reading or language arts and 
                mathematics;
                  (C) 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, except that this subparagraph shall 
                not apply to an activity if such activity is 1 
                component of a long-term comprehensive 
                professional development plan established by 
                the teacher and the teacher's supervisor based 
                upon an assessment of the needs of the teacher, 
                the needs of students, and the needs of the 
                local educational agency;
                  [(B)](D) support local educational agency 
                plans under section 1112 and school plans under 
                section 1114;
                  [(C)](E) 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)](F) 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)](G) include strategies for identifying 
                and eliminating gender and racial bias in 
                instructional materials, methods, and 
                practices[.];
                  (H) to the extent appropriate, provide 
                training for teachers in the use of technology 
                and the applications of technology that are 
                effectively used--
                          (i) in the classroom to improve 
                        teaching and learning in the 
                        curriculum; and
                          (ii) in academic content areas in 
                        which the teachers provide instruction; 
                        and
                  (I) be regularly evaluated for their impact 
                on increased teacher effectiveness and improved 
                student performance and achievement, with the 
                findings of such evaluations used to improve 
                the quality of professional development.

           *       *       *       *       *       *       *

    (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] other Acts and 
other sources.

           *       *       *       *       *       *       *

SEC. 1120. [20 U.S.C. 6321] 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 such children 
        participate, on an equitable basis, in services and 
        activities under sections 1118 and 1119).

           *       *       *       *       *       *       *

          (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 as determined by 
        the local educational agency each year or every 2 
        years.

           *       *       *       *       *       *       *

    (b) Consultation.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  (C) how [and where], where, and by whom the 
                services will be provided;
                  [(D) how the services will be assessed; and]
                  (D) how the services will be 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 what is the proportion of 
                funds allocated under subsection (a)(4) for 
                such services[.]; and
                  (F) how and when the local educational agency 
                will make decisions about the delivery of 
                services to eligible private school children, 
                including a thorough consideration and analysis 
                of the views of private school officials 
                regarding the provision of contract services 
                through potential third party providers, and if 
                the local educational agency disagrees with the 
                views of the private school officials on such 
                provision of services, 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 
                so provide such services.

           *       *       *       *       *       *       *

          (4) Consultation.--Each local educational agency 
        shall provide to the State educational agency, and 
        maintain in the local educational agency's records, a 
        written affirmation signed by officials of each 
        participating private school that the consultation 
        required by this section has occurred. If a private 
        school declines in writing to have eligible children in 
        the private school participate in services provided 
        under this section, the local educational agency is not 
        required to further consult with the private school 
        officials or to document the local educational agency's 
        consultation with the private school officials until 
        the private school officials request in writing such 
        consultation. The local educational agency shall inform 
        the private school each year of the opportunity for 
        eligible children to participate in services provided 
        under this section.
          (5) Compliance.--A private school official shall have 
        the right to appeal to the State educational agency the 
        decision of a local educational agency as to whether 
        consultation provided for in this section was 
        meaningful and timely, and whether due consideration 
        was given to the views of the private school official. 
        If the private school official wishes to appeal the 
        decision, the basis of the claim of noncompliance with 
        this section by the local educational agencies shall be 
        provided to the State educational agency, and the local 
        educational agency shall forward the appropriate 
        documentation to the State educational agency.

           *       *       *       *       *       *       *

    (c) Allocation for Equitable Service to Private School 
Students.--
          (1) Calculation.--A local educational agency shall 
        have the final authority, consistent with this section, 
        to calculate the number of private school children, 
        ages 5 through 17, who are low-income by--
                  (A) using the same measure of low-income used 
                to count public school children;
                  (B) using the results of a survey that, to 
                the extent possible, protects the identity of 
                families of private school students, and 
                allowing such survey results to be extrapolated 
                if complete actual data are unavailable; or
                  (C) applying the low-income percentage of 
                each participating public school attendance 
                area, determined pursuant to this section, to 
                the number of private school children who 
                reside in that school attendance area.
          (2) Complaint process.--Any dispute regarding low-
        income data for private school students shall be 
        subject to the complaint process authorized in section 
        8.
    [(c)](d) Public Control of Funds.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

    [(d)](e) Standards for a Bypass.--[If a]
          ``(1) In General.--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)](A) waive the requirements of this section for 
        such local educational agency; and
          [(2)](B) 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] 8 and 9.
          (2) Determination.--In making the determination under 
        paragraph (1), the Secretary shall consider 1 or more 
        factors, including the quality, size, scope, or 
        location of the program, or the opportunity of eligible 
        children to participate in the program.
    [(e)](f) 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 years 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 natural sites or spaces;
                  [(B) insurance and maintenance costs;
                  [(C) transportation; and
                  [(D) other comparable goods and services.]

SEC. 1120A. [20 U.S.C. 6322] 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] 4.

           *       *       *       *       *       *       *

[SEC. 1120B. [20 U.S.C. 6323] COORDINATION REQUIREMENTS.] SEC. 1120B. 
                    COORDINATION REQUIREMENTS; EARLY CHILDHOOD 
                    EDUCATION SERVICES.

    (a) In General.--* * *

           *       *       *       *       *       *       *

    (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] Head 
Start Amendments of 1998.
  (d) Early Childhood Services.--A local educational agency may 
use funds received under this part to provide preschool 
services--
          (1) directly to eligible preschool children in all or 
        part of its school district;
          (2) through any school participating in the local 
        educational agency's program under this part; or
          (3) through a contract with a local Head Start 
        agency, an eligible entity operating an Even Start 
        program, a State-funded preschool program, or a 
        comparable public early childhood development program.
  (e) Early Childhood Education Programs.--Early childhood 
education programs operated with funds provided under this part 
may be operated and funded jointly with Even Start programs 
under part B of this title, Head Start programs, or State-
funded preschool programs. Early childhood education programs 
funded under this part shall--
          (1) focus on the developmental needs of participating 
        children, including their social, cognitive, and 
        language-development needs, and use scientifically 
        based research approaches that build on competencies 
        that lead to school success, particularly in language 
        and literacy development and in reading;
          (2) teach children to understand and use language in 
        order to communicate for various purposes;
          (3) enable children to develop and demonstrate an 
        appreciation of books; and
          (4) in the case of children with limited English 
        proficiency, enable the children to progress toward 
        acquisition of the English language.

                        [Subpart 2--Allocations

[SEC. 1121. [20 U.S.C. 6331] GRANTS FOR THE OUTLYING AREAS AND THE 
                    SECRETARY OF THE INTERIOR.

    [(a) Reservation of Funds.--From the amount appropriated 
for payments to States for any fiscal year under section 
1002(a), 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. [20 U.S.C. 6332] 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) Adjustment 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 fordelinquent 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, not withstanding 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. [20 U.S.C. 6333] 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 ofSciences. 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 
        servicing 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 though 
1998, grants not made as a result of applying the preceding 
sentence shall be reallocated by the State educational agency 
to other eligible local education 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 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 inappropriateor 
        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 subState 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 Acad-emy'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. [20 U.S.C. 6334] CONCENTRATION GRANTS TO LOCAL EDUCATIONAL 
                    AGENCIES.

    [(a) Eligibility for and Amount of Grants.--
          [(1) In general.--(A) Except as otherwise provided in 
        this paragraph, each local educational agency, 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 
        localeducational 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 
        disatisfied 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 service 
        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. [20 U.S.C. 6335] 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 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 to17, 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 
20,000sons. Such an alterative 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) of (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. [20 U.S.C. 6336] 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 222.64 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 expendi-tures within the 
        State with respect to the provision of free pub-lic 
        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 deter-mination is made.
          [(2) Reduction of funds.--The Secretary shall reduce 
        the amount of the 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 ef-
        fort 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 deter-mines 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 
appro-priated $200,000,000 for fiscal year 1996 and such sums 
as may be necessary for each of the three succeeding fiscal 
years.

[SEC. 1126. [20 U.S.C. 6337] 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 un-willing to provide for the special 
        educational needs of children who are living in 
        institutions for neglected children as de-scribed in 
        subparagraph 1124(c)(1)(C), the State educational 
        agency shall, if such agency assumes responsibility for 
        the spe-cial 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 
edu-cational 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 edu-cational 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 re-ceive 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. [20 U.S.C. 6338] 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 edu-cational agency for any fiscal year under this 
subpart (but not in-cluding funds received through any 
reallocation under this subpart) may remain available for 
obligation by such agency for one addi-tional 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 edu-cational 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 education agency that receives 
less than $50,000 under this subpart for any fiscal year.]

                         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 
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)(1) in each fiscal year the Secretary 
        shall make grants to local educational agencies in the 
        outlying areas.
          (2) Competitive grants.--
                  (A) In general.--For fiscal year 2002 and 
                each of the 6 succeeding fiscal years, the 
                Secretary shall reserve $5,000,000 from the 
                amounts made available under subsection (a)(1) 
                to award grants, on a competitive basis, to 
                local educational agencies in the Freely 
                Associated States. 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) Uses.--Except as provided in subparagraph 
                (C), grant funds awarded under this paragraph 
                only may be used--
                          (i) for programs described in this 
                        Act, including teacher training, 
                        curriculum development, instructional 
                        materials, or general school 
                        improvement and reform; and
                          (ii) to provide direct educational 
                        services.
                  (C) Administrative costs.--The Secretary may 
                provide 5 percent of the amount made available 
                for grants under this paragraph to the Pacific 
                Region Educational Laboratory 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 reserved for payments to 
        the Secretary of the Interior under subsection (a)(2) 
        for any fiscal year shall be, as determined pursuant to 
        criteria established by the Secretary, the amount 
        necessary to meet the special educational needs of--
                  (A) Indian children on reservations served by 
                elementary schools and secondary schools for 
                Indian children operated or supported by the 
                Department of the Interior; and
                  (B) out-of-State Indian children in 
                elementary schools and secondary schools in 
                local educational agencies under special 
                contracts with the Department of the Interior.
          (2) Payments.--From the amount reserved 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)(B). 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) In General.--For each of the fiscal years 2002 through 
2008--
          (1) the amount appropriated to carry out this part 
        that is less than or equal to the amount appropriated 
        to carry out section 1124 for fiscal year 2001, shall 
        be allocated in accordance with section 1124;
          (2) the amount appropriated to carry out this part 
        that is not used under paragraph (1) that equals the 
        amount appropriated to carry out section 1124A for 
        fiscal year 2001, shall be allocated in accordance with 
        section 1124A; and
          (3) any amount appropriated to carry out this part 
        for the fiscal year for which the determination is made 
        that is not used to carry out paragraphs (1) and (2) 
        shall be allocated in accordance with section 1125.
    (b) Adjustments Where Necessitated by Appropriations.--
          (1) In general.--If the sums made 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).
          (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 the allocations were reduced.
    (c) Hold-Harmless Amounts.--
          (1) In general.--For each fiscal year the amount made 
        available to each local educational agency under each 
        of sections 1124, 1124A, and 1125 shall be not less 
        than--
                  (A) 95 percent of the amount made available 
                to the local educational agency under each such 
                section for the preceding fiscal year if 
                thenumber 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, served by the local educational 
                agency;
                  (B) 90 percent of the amount made available 
                to the local educational agency under each such 
                section for the preceding fiscal year if such 
                percentage is not less than 15 percent and not 
                more than 30 percent; and
                  (C) 85 percent of the amount made available 
                to the local educational agency under each such 
                section for the preceding fiscal year if such 
                percentage is less than 15 percent.
          (2) Special rules.--If sufficient funds are 
        appropriated, the hold-harmless amounts described in 
        paragraph (1) shall be paid to all local educational 
        agencies that received grants under section 1124, 
        1124A, or 1125 for the preceding fiscal year, 
        regardless of whether the local educational agency 
        meets the minimum eligibility criteria provided in 
        section 1124(b), 1124A(a)(1)(A), or 1125(a), 
        respectively, except that a local educational agency 
        that does not meet such minimum eligibility criteria 
        for 5 consecutive years shall no longer be eligible to 
        receive a hold-harmless amount under this subsection.
          (3) County calculation basis.--For any fiscal year 
        for which the Secretary calculates grants on the basis 
        of population data for counties, the Secretary shall 
        apply the hold-homeless 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, then the 
        State educational agency shall reallocate funds 
        proportionately from all other local educational 
        agencies in the State that receive funds for the fiscal 
        year 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 were reduced.

SEC. 1123. DEFINITIONS.

    In this subpart:
          (1) Freely associated states.--The term ``Freely 
        Associated States'' means the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the 
        Republic of Palau.
          (2) Outlying areas.--The term ``outlying areas'' 
        means the United States Virgin Islands, Guam, American 
        Samoa, and the Commonwealth of the Northern Mariana 
        Islands.
          (3) State.--The term ``State'' means each of the 
        several States of the United 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, and not 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 Secretary and the Secretary 
                        of Commerce 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) Large local educational 
                        agencies.--In the case of an allocation 
                        under this section to a large local 
                        educational agency, the amount of the 
                        grant under this section for the large 
                        local educational agency shall be the 
                        amount determined under paragraph (1).
                          (ii) Small local educational 
                        agencies.--
                                  (I) In general.--In the case 
                                of an allocation under this 
                                section to a small local 
                                educational agency the State 
                                educational agency may--
                                          (aa) distribute 
                                        grants under this 
                                        section in amounts 
                                        determined by the 
                                        Secretary under 
                                        paragraph (1); or
                                          (bb) 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 
                                        local educational 
                                        agencies.
                                  (II) Alternative method.--An 
                                alternative method under 
                                subclause (I)(bb) 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 minimum number of children 
                                to qualify described in 
                                subsection (b).
                                  (III) Appeal.--If a small 
                                local educational agency is 
                                dissatisfied with the 
                                determination of the amount of 
                                its grant by the State 
                                educational agency under 
                                subclause (I)(bb), the small 
                                local educational agency may 
                                appeal the determination to the 
                                Secretary, who shall respond 
                                within 45 days of receiving the 
                                appeal.
                          (iii) Definitions.--In this 
                        subparagraph--
                                  (I) the term ``large local 
                                educational agency'' means a 
                                local educational agency 
                                serving a school district with 
                                a total population of 20,000 or 
                                more; and
                                  (II) the term ``small local 
                                educational agency'' means a 
                                local educational agency 
                                serving a school district with 
                                a total population of less than 
                                20,000.
          (3) Allocations to counties.--
                  (A) In general.--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 allocate county 
                amounts to local educational agencies, in 
                accordance with regulations promulgated by the 
                Secretary.
                  (B) Application.--In any State in which a 
                large number of local educational agencies 
                overlap county boundaries, or for which the 
                State believes the State has data that would 
                better target funds than allocating the funds 
                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) Allocations to local educational 
                agencies.--If the Secretary approves its 
                application under subparagraph (B), the State 
                educational agency shall provide the Secretary 
                an assurance that the allocations will be 
                made--
                          (i) using precisely the same factors 
                        for determining a grant as are used 
                        under this section; 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 a 
                procedure is or will be established through 
                which local educational agencies that are 
                dissatisfied with determinations under 
                subparagraph (B) may appeal directly to the 
                Secretary for a final determination.
          (4) 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.
  (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--
          (1) 10 or more; and
          (2) more than 2 percent of the total school-age 
        population in the school district of the local 
        educational agency.
    (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 paragraphs 
                (2) and (3);
                  (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 (4); and
                  (C) the number of children determined under 
                paragraph (4) for 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 and youth 
                (other than such institutions operated by the 
                United States), but not counted pursuant to 
                chapter 1 of 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. 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 shall 
        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 
        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. 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 Secretary and the Secretary of Commerce 
        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 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. 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 
        themonth 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 paragraph (2)) in each school district, and the 
        Secretary is authorized to pay (either in advance or by 
        way of reimbursement) the Secretary of Commerce the 
        cost of making this special estimate. The Secretary of 
        Commerce shall give consideration to any request of the 
        chief executive of a State for the collection of 
        additional census information.
    (d) State Minimum.--Notwithstanding section 1122, the 
aggregate amount allotted for all local educational agencies 
within a State may not be less than the lesser of--
          (1) 0.25 percent of the total amount made available 
        to carry out this section for such fiscal year; or
          (2) the average of--
                  (A) 0.25 percent of the total amount made 
                available to carry out this section for such 
                fiscal year; 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 fiscal 
                year.

SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    (a) Eligibility for and Amount of Grants.--
          (1) Eligibility.--
                  (A) In general.--Except as otherwise provided 
                in this paragraph, each local educational 
                agency in a State that 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) who are 
                served by the agency exceeds--
                          (i) 6,500; or
                          (ii) 15 percent of the total number 
                        of children aged 5 through 17 served by 
                        the agency.
                  (B) Minimum.--Notwithstanding section 1122, 
                no State shall receive under this section an 
                amount that is less than the lesser of--
                          (i) 0.25 percent of the total amount 
                        made available to carry out this 
                        section for such fiscal year; or
                          (ii) the average of--
                                  (I) 0.25 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 
                                        fiscal year.
          (2) Determination.--For each county or local 
        educational agency eligible to receive an additional 
        grant under this section for any fiscal year the 
        Secretary shall determine the product of--
                  (A) the number of children counted under 
                section 1124(c) for that fiscal year; and
                  (B) the amount in section 1124(a)(1)(B) for 
                all States except the Commonwealth of Puerto 
                Rico, and the amount in section 1124(a)(3) for 
                the Commonwealth of Puerto Rico.
          (3) Amount.--The amount of the additional grant for 
        which an eligible local educational agency or county is 
        eligible under this section for any fiscal year shall 
        be an amount that bears the same ratio to the amount 
        available to carry out this section for that fiscal 
        year as the product determined underparagraph (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) In general.--Grant amounts under this 
                section shall be calculated in the same manner 
                as grant amounts are calculated under section 
                1124(a) (2) and (3).
                  (B) Special rule.--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 the amount 
                made available to the State under this section 
                for any fiscal year to make grants to local 
                educational agencies that meet the criteria in 
                paragraph (1)(A) (i) or (ii) but that are in 
                ineligible counties.
    (b) Ratable Reduction Rule.--If the sums available under 
subsection (a) 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 that 
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.
    (c) States Receiving 0.25 Percent or Less.--In States that 
receive 0.25 percent or less of the total amount made available 
to carry out this section for a fiscal year, the State 
educational agency shall allocate such funds among the local 
educational agencies in the State--
          (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.--
          (1) In general.--A local educational agency in a 
        State is eligible to receive a targeted grant under 
        this section for any fiscal year if--
                  (A) the number of children in the local 
                educational agency counted under section 
                1124(c), before application of the weighted 
                child count described in subsection (c), is at 
                least 10; and
                  (B) if the number of children counted for 
                grants under section 1124(c), before 
                application of the weighted child count 
                described in subsection (c), is at least 5 
                percent of the total number of children aged 5 
                to 17 years, inclusive, in the school district 
                of the local educational agency.
          (2) Special rule.--For any fiscal year for which the 
        Secretary allocates funds under this section on the 
        basis of counties, funds made available as a result of 
        applying this subsection shall be reallocated by the 
        State educational agency to other eligible local 
        educational agencies in the State in proportion to the 
        distribution of other funds under this section.
    (b) Grants for Local Educational Agencies, the District of 
Columbia, and the Commonwealth of Puerto Rico.--
          (1) In general.--The amount of the grant that a local 
        educational agency in a State (other than the 
        Commonwealth of Puerto Rico) is eligible to receive 
        under this section for any fiscal year shall be the 
        product of--
                  (A) the weighted child count determined under 
                subsection (c); and
                  (B) the amount determined under section 
                1124(a)(1)(B).
          (2) Puerto rico.--For each fiscal year, the amount of 
        the grant the Commonwealth of Puerto Rico is eligible 
        to receive under this section shall be equal to the 
        number of children counted under subsection (c) for the 
        Commonwealth of Puerto Rico, multiplied by the amount 
        determined in section 1124(a)(4) for the Commonwealth 
        of Puerto Rico.
    (c) Weighted Child Count.--
          (1) Weights for allocations to counties.--
                  (A) In general.--For each fiscal year for 
                which the Secretary uses county population data 
                to calculate grants, the weighted childcount 
                used to determine a county's allocation under 
                this section is the larger of the 2 amounts 
                determined under subparagraphs (B) and (C).
                  (B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                          (i) the number of children determined 
                        under section 1124(c) for that county 
                        who constitute not more than 15.00 
                        percent, inclusive, of the county's 
                        total population aged 5 to 17, 
                        inclusive, multiplied by 1.0;
                          (ii) the number of such children who 
                        constitute more than 15.00 percent, but 
                        not more than 19.00 percent, of such 
                        population, multiplied by 1.75;
                          (iii) the number of such children who 
                        constitute more than 19.00 percent, but 
                        not more than 24.20 percent, of such 
                        population, multiplied by 2.5;
                          (iv) the number of such children who 
                        constitute more than 24.20 percent, but 
                        not more than 29.20 percent, of such 
                        population, multiplied by 3.25; and
                          (v) the number of such children who 
                        constitute more than 29.20 percent of 
                        such population, multiplied by 4.0.
                  (C) By number of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                          (i) the number of children determined 
                        under section 1124(c) who constitute 
                        not more than 2,311, inclusive, of the 
                        county's total population aged 5 to 17, 
                        inclusive, multiplied by 1.0;
                          (ii) the number of such children 
                        between 2,312 and 7,913, inclusive, in 
                        such population, multiplied by 1.5;
                          (iii) the number of such children 
                        between 7,914 and 23,917, inclusive, in 
                        such population, multiplied by 2.0;
                          (iv) the number of such children 
                        between 23,918 and 93,810, inclusive, 
                        in such population, multiplied by 2.5; 
                        and
                          (v) the number of such children in 
                        excess of 93,811 in such population, 
                        multiplied by 3.0.
                  (D) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for the 
                Commonwealth of Puerto Rico under this 
                paragraph shall not be greater than the total 
                number of children counted under section 
                1124(c) multiplied by 1.72.
          (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 subparagraphs (B) and 
                (C).
                  (B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                          (i) the number of children determined 
                        under section 1124(c) for that local 
                        educational agency who constitute not 
                        more than 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 who 
                        constitute 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 who 
                        constitute 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 who 
                        constitute 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 who 
                        constitute more than 41.452 percent of 
                        such population, multiplied by 4.0.
                  (C) By number of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                          (i) the number of children determined 
                        under section 1124(c) who constitute 
                        not more than 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 54,600 in such population, 
                        multiplied by 3.0.
                  (D) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for the 
                Commonwealth of Puerto Rico under this 
                paragraph shall not be greater than the total 
                number of children counted under section 
                1124(c) multiplied by 1.72.
    (d) Calculation of Grant Amounts.--Grant amounts under this 
section shall be calculated in the same manner as grant amounts 
are calculated under section 1124(a) (2) and (3).
    (e) State Minimum.--Notwithstanding any other provision of 
this section or section 1122, from the total amount available 
for any fiscal year to carry out this section, each State shall 
be allotted not less than 0.5 percent of the total amount made 
available to carry out this section for such fiscal year.

SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.

    (a) Grants.--From funds appropriated under subsection (e) 
the Secretary is authorized to make grants to States, from 
allotments under subsection (b), to carry out the purposes of 
this part.
    (b) Distribution Based Upon Fiscal Effort and Equity.--
          (1) In general.--
                  (A) In general.--Except as provided in 
                subparagraph (B), funds appropriated pursuant 
                to subsection (e) shall be allotted to each 
                State based upon the number of children counted 
                under section 1124(c) in such State multiplied 
                by the product of--
                          (i) such State's effort factor 
                        described in paragraph (2); multiplied 
                        by
                          (ii) 1.30 minus such State's equity 
                        factor described in paragraph (3).
                  (B) Minimum.--For each fiscal year no State 
                shall receive under this section less than 0.5 
                percent of the total amount appropriated under 
                subsection (e) for the fiscal year.
          (2) Effort factor.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the effort factor for a State 
                shall be determined in accordance with the 
                succeeding sentence, except that such factor 
                shall not be less than 0.95 nor greater than 
                1.05. The effort factor determined under this 
                sentence shall be a fraction the numerator of 
                which is the product of the 3-year average per-
                pupil expenditure in the State multiplied by 
                the 3-year average per capita income in the 
                United States and the denominator of which is 
                the product of the 3-year average per capita 
                income in such State multiplied by the 3-year 
                average per-pupil expenditure in the United 
                States.
                  (B) Commonwealth of puerto rico.--The effort 
                factor for the Commonwealth of Puerto Rico 
                shall be equal to the lowest effort factor 
                calculated under subparagraph (A) for any 
                State.
          (3) Equity factor.--
                  (A) Determination.--
                          (i) In general.--Except as provided 
                        in subparagraph (B), the Secretary 
                        shall determine the equity factor under 
                        this section for each State in 
                        accordance with clause (ii).
                          (ii) Computation.--
                                  (I) In general.--For each 
                                State, the Secretary shall 
                                compute a weighted coefficient 
                                of variation for the per-pupil 
                                expenditures of local 
                                educational agencies in 
                                accordance with subclauses 
                                (II), (III), and (IV).
                                  (II) Variation.--In computing 
                                coefficients of variation, the 
                                Secretary shall weigh the 
                                variation between per-pupil 
                                expenditures in each local 
                                educational agency and the 
                                average per-pupil expenditures 
                                in the State according to the 
                                number of pupils served by the 
                                local educational agency.
                                  (III) Number of pupils.--In 
                                determining the number of 
                                pupils under this paragraph 
                                served by each local 
                                educational agency and in each 
                                State, the Secretary shall 
                                multiply the number of children 
                                from low-income families by a 
                                factor of 1.4.
                                  (IV) Enrollment 
                                requirement.--In computing 
                                coefficients of variation, the 
                                Secretary shall include only 
                                those local educational 
                                agencieswith an enrollment of 
                                more than 200 students.
                  (B) Special rule.--The equity factor for a 
                State that meets the disparity standard 
                described in section 222.162 of title 34, Code 
                of Federal Regulations (as such section was in 
                effect on the day preceding the date of 
                enactment of the Better Education for Students 
                and Teachers Act) or a State with only 1 local 
                educational agency shall be not greater than 
                0.10.
                  (C) Revisions.--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, after obtaining 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 section for any fiscal year if the 
        Secretary finds that either the combined fiscal effort 
        per student or the aggregate expenditures within the 
        State with respect to the provision of free public 
        education for the fiscal year preceding the fiscal year 
        for which the determination is made was not less than 
        90 percent of such combined fiscal effort or aggregate 
        expenditures for the second fiscal year preceding the 
        fiscal year for which the determination is made.
          (2) Reduction of funds.--The Secretary shall reduce 
        the amount of funds awarded to any State under this 
        section in any fiscal year in the exact proportion to 
        which the State fails to meet the requirements of 
        paragraph (1) by falling below 90 percent of both the 
        fiscal effort per student and aggregate expenditures 
        (using the measure most favorable to the State), and no 
        such lesser amount shall be used for computing the 
        effort required under paragraph (1) for subsequent 
        years.
          (3) Waivers.--The Secretary may waive, for 1 fiscal 
        year only, the requirements of this subsection if the 
        Secretary determines that such a waiver would be 
        equitable due to exceptional or uncontrollable 
        circumstances such as a natural disaster or a 
        precipitous and unforeseen decline in the financial 
        resources of the State.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $200,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of 
the 6 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 or delinquent children as 
        described in section 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 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 educational agency will use, the State educational agency 
shall make the excess amount available to other local 
educational agencies in the State that need additional funds in 
accordance with criteria established by the State educational 
agency.

SEC. 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 3 
years, waive the percentage limitation in subsection (a) if--
          (1) the agency determines that the request of a local 
        educational agency is reasonable and necessary; or
          (2) supplemental appropriations for this subpart 
        become available.
    (c) Exclusion.--The percentage limitation under subsection 
(a) shall not apply to any local educational agency that 
receives less than $50,000 under this subpart for any fiscal 
year.

             [PART B--EVEN START FAMILY LITERACY PROGRAMS]

               PART B_LITERACY FOR CHILDREN AND FAMILIES

   Subpart 1_William F. Goodling Even Start Family Literacy Programs

SEC. 1201. [20 U.S.C. 6361] STATEMENT OF PURPOSE.

    It is the purpose of [this part] this 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--

           *       *       *       *       *       *       *

SEC. 1202. [20 U.S.C. 6362] 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) for programs, under such terms 
        and conditions as the Secretary shall establish, that 
        are consistent with the purpose of [this part], this 
        subpart and according to their relative needs, for--

           *       *       *       *       *       *       *

    (c) Reservation for Grants.--
          (1) Grants authorized.--From funds reserved under 
        section 2260(b)(3), the Secretary shall 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], 
        this subpart. Such coordination and integration shall 
        include funds available under the Adult Education and 
        Family Literacy Act, the Head Start Act, [this part] 
        this subpart, part A of this title, and part A of title 
        IV of the Social Security Act.

           *       *       *       *       *       *       *

    (e) Definitions.--For the purpose of [this part] this 
subpart--

           *       *       *       *       *       *       *

SEC. 1204. [20 U.S.C. 6364] USES OF FUNDS.

    (a) In General.--* * *

           *       *       *       *       *       *       *

    (b) Federal Share Limitation.--
          (1) In general.--(A) Except as provided in paragraph 
        (2), the Federal share under [this part] this 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] this 
                subpart or its predecessor authority.

           *       *       *       *       *       *       *

                  (B) The remaining cost of a program assisted 
                under [this part] this subpart may be provided 
                in cash or in kind, fairly evaluated and may be 
                obtained from any source, including other 
                Federal funds under this Act.

           *       *       *       *       *       *       *

                  (A) demonstrates that such entity otherwise 
                would not be able to participate in the program 
                assisted under [this part] this subpart and

           *       *       *       *       *       *       *

          (3) Prohibition.--Federal funds provided under [this 
        part] this subpart may not be used for the indirect 
        costs of a program assisted under [this part] this 
        subpart except that the Secretary may waive this 
        paragraph if an eligible recipient of funds reserved 
        under section 1202(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] this subpart.

SEC. 1205. [20 U.S.C. 6365] PROGRAM ELEMENTS.

    Each program assisted under [this part] this subpart 
shall--
          (1) include the identification and recruitment of 
        families most in need of services provided under [this 
        part] this subpart, as indicated by a low level of 
        income, a low level of adult literacy or English 
        language proficiency of the eligible parent or parents, 
        and other need-related indicators;
          (2) include screening and preparation of parents, 
        including teenage parents and children to enable such 
        parents to participate fully in the activities and 
        services provided under [this part] this subpart, 
        including testing, referral to necessary counselling, 
        other developmental and support services, and related 
        services;
          (3) be designed to accommodate the participants' work 
        schedule and other responsibilities, including the 
        provision of support services, when such services are 
        unavailable from other sources, necessary for 
        participation in the activities assisted under [this 
        part] this subpart, such as--

           *       *       *       *       *       *       *

                  (B) child care for the period that parents 
                are involved in the program provided under 
                [this part] this subpart; and
                  (C) transportation for the purpose of 
                enabling parents and their children to 
                participate in programs authorized by [this 
                part] this subpart;

           *       *       *       *       *       *       *

          (5) 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] 
        this subpart;

           *       *       *       *       *       *       *

          (9) ensure that the programs will serve those 
        families most in need of the activities and services 
        provided by [this part] this subpart; and

           *       *       *       *       *       *       *

SEC. 1206. [20 U.S.C. 6366] ELIGIBLE PARTICIPANTS.

    (a) In General.--* * *

           *       *       *       *       *       *       *

                  (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] this subpart; and

           *       *       *       *       *       *       *

    (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] this subpart, when appropriate to serve the 
        purpose of [this part] this subpart.

           *       *       *       *       *       *       *

          (2) Special rule.--Any family participating in a 
        program assisted under [this part] this subpart that 
        becomes ineligible for such participation as a result 
        of one or more members of the family becoming 
        ineligible for such participation may continue to 
        participate in the program until all members of the 
        family become ineligible for such participation, 
        which--

           *       *       *       *       *       *       *

SEC. 1207. [20 U.S.C. 6367] APPLICATIONS.

    (a) Submission.--To be eligible to receive a subgrant under 
[this part] this subpart, an eligible entity shall submit an 
application to the State educational agency in such form and 
containing or accompanied by such information as the State 
educational agency shall require.

           *       *       *       *       *       *       *

          (1) to develop, administer, and implement an Even 
        Start program under [this part] this subpart; and

           *       *       *       *       *       *       *

                          (i) to ensure that the programs will 
                        serve families most in need of the 
                        activities and services provided by 
                        [this part] this subpart;
                          (ii) to provide services under [this 
                        part] this subpart to individuals with 
                        special needs, such as individuals with 
                        limited English proficiency and 
                        individuals with disabilities; and

           *       *       *       *       *       *       *

                  (A) remain in effect for the duration of the 
                eligible entity's participation under [this 
                part] this subpart; and

           *       *       *       *       *       *       *

SEC. 1208. [20 U.S.C. 6368] AWARD OF SUBGRANTS.

    (a) Selection Process.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

    (b) Duration.--
          (1) In general.--Subgrants under [this part] this 
        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] this 
        subpart for the second, third, or fourth year, the 
        State educational agency shall evaluate the program 
        based on the indicators of program quality developed by 
        the State under section 1210. Such evaluation shall 
        take place after the conclusion of the startup period, 
        if any.

           *       *       *       *       *       *       *

          (5) Grant renewal.--(A) An eligible entity that has 
        pre-viously received a subgrant under [this part] this 
        subpart may reapply under this part for additional 
        subgrants. An eligible recipient may receive funds 
        under [this part] this subpart for a period not to 
        exceed eight years.

           *       *       *       *       *       *       *

SEC. 1209. [20 U.S.C. 6369] EVALUATION.

    From funds reserved under section 1202(b)(1), the Secretary 
shall provide for an independent evaluation of programs 
assisted under [this part] this subpart--
          (1) to determine the performance and effectiveness of 
        pro-grams assisted under [this part] this subpart;
          (2) to identify effective Even Start programs 
        assisted under [this part] this 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] this subpart, directly or 
        through a grant or contract with an organization with 
        experience in the development and operation of 
        successful family literacy services, technical 
        assistance to ensure local evaluations undertaken under 
        section 1205(10) provide accurate information on the 
        effectiveness of programs assisted under [this part] 
        this subpart.

SEC. 1210. [20 U.S.C. 6369A] INDICATORS OF PROGRAM QUALITY.

    Each State receiving funds under [this part] this subpart 
shall develop, based on the best available research and 
evaluation data, indicators of program quality for programs 
assisted under [this part] this subpart. Such indicators shall 
be used to monitor, evaluate, and improve such programs within 
the State. Such indicators shall include the following:

           *       *       *       *       *       *       *

SEC. 1211. [20 U.S.C. 6369B] RESEARCH.

    (a) In General.--* * *

           *       *       *       *       *       *       *

          (1) to improve the quality of existing programs 
        assisted under [this part] this subpart or other family 
        literacy programs carried out under this Act or the 
        Adult Education and Family Literacy Act; and

           *       *       *       *       *       *       *

    (b) Dissemination.--The National Institute for Literacy 
shall disseminate, pursuant to section 2258, the results of the 
research described in subsection (a) to States and recipients 
of subgrants under [this part] this subpart.

SEC. 1212. [20 U.S.C. 6370] CONSTRUCTION.

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

           *       *       *       *       *       *       *

                        Subpart 2--Reading First

SEC. 1221. 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 
        grounded in scientifically based reading research, in 
        order to ensure that every student can read at grade 
        level or above by the end of the third grade.
          (2) To provide assistance to States and local 
        educational agencies in preparing 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 
        effectively to help their student to learn to read.
          (3) To provide assistance to States and local 
        educational agencies in selecting or developing 
        rigorous diagnostic reading assessments that document 
        the effectiveness of this subpart in improving 
        students' reading and in holding grant and subgrant 
        recipients accountable for their results.
          (4) To provide assistance to States and local 
        educational agencies in selecting or developing 
        effective instructional materials, programs, and 
        strategies to implement methods that have been proven 
        to prevent or remediate reading failure within a State 
        or States.
          (5) To strengthen coordination among schools, early 
        literacy programs, and family literacy programs in 
        order to improve reading achievement for all children.

SEC. 1222. FORMULA GRANTS TO STATES; COMPETITIVE SUBGRANTS TO LOCAL 
                    AGENCIES.

    (a) In General.--In the case of each State that in 
accordance with section 1224 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 
educational agency for the uses specified in subsections (c) 
and (d). The grant shall consist of the allotment determined 
for the State under subsection (b).
      (b) Determination of Amount of Allotment.--
          (1) In general.--From the total amount made available 
        to carry out this subpart for any fiscal year and not 
        reserved under section 1225, the Secretary shall allot 
        75 percent under this section among each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.
          (2) State allotments.--The Secretary shall allot the 
        amount made available under paragraph (1) for a fiscal 
        year among the States in proportion to the amount all 
        local educational agencies in a State would receive 
        under section 1124.
          (3) Reallotment.--If any State 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 (2).
    (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 eligible local educational 
        agencies.
          (2) Notice.--A State receiving a grant under this 
        section shall provide notice to all eligible local 
        educational agencies in the State of the availability 
        of competitive subgrants under this subsection and of 
        the requirements for applying for the subgrants.
          (3) Local application.--To be eligible to receive a 
        subgrant under this subsection, an eligible 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) Definition of eligible local educational 
        agency.--In this subpart the term ``eligible local 
        educational agency'' means a local educational agency 
        that--
                  (A) has a high percentage of students in 
                grades kindergarten through 3 reading below 
                grade level; and
                  (B) has--
                          (i) jurisdiction over a geographic 
                        area that includes an area designated 
                        as an empowerment zone, or an 
                        enterprise community, under part I of 
                        subchapter U of chapter 1 of the 
                        Internal Revenue Code of 1986;
                          (ii) jurisdiction over at least 1 
                        school that is identified for school 
                        improvement under section 1116(c); or
                          (iii) a high percentage of children 
                        who are counted under section 1124(c), 
                        in comparison to other local 
                        educational agencies in the State.
          (5) State requirement.--In distributing subgrant 
        funds to local educational agencies, a State shall 
        provide the funds in sufficient amounts to enable local 
        educational agencies to improve reading, as measured by 
        scores on rigorous diagnostic reading assessments.
          (6) Local priority.--In distributing subgrant funds 
        under this subsection a local educational agency shall 
        give priority to providing the funds to schools that--
                  (A) have a high percentage of students in 
                grades kindergarten through 3 reading below 
                grade level;
                  (B) are identified for school improvement 
                under section 1116(c); or
                  (C) have a high percentage of children 
                counted under section 1124(c).
          (7) Local uses of funds.--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:
                  (A) Selecting or developing, and 
                administering, a rigorous diagnostic reading 
                assessment.
                  (B) Selecting or developing, and 
                implementing, a program or programs of reading 
                instruction grounded on scientifically based 
                reading research that--
                          (i) includes the major components of 
                        reading instruction; and
                          (ii) provides such instruction to all 
                        children, including children who--
                                  (I) may have reading 
                                difficulties;
                                  (II) are at risk of being 
                                referred to special education 
                                based on these difficulties;
                                  (III) have been evaluated 
                                under section 614 of the 
                                Individuals with Disabilities 
                                Education Act but, in 
                                accordance with section 
                                614(b)(5) of such Act, and have 
                                not been identified as being a 
                                child with a disability (as 
                                defined in section 602 of such 
                                Act);
                                  (IV) 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; or
                                  (V) are identified as having 
                                limited English proficiency (as 
                                defined in section 3501).
                  (C) Procuring and implementing instructional 
                materials grounded on scientifically based 
                reading research.
                  (D) Providing professional development for 
                teachers of grades kindergarten through 3 
                that--
                          (i) will prepare these teachers in 
                        all of the major components of reading 
                        instruction;
                          (ii) shall include--
                                  (I) information on 
                                instructional materials, 
                                programs, strategies, and 
                                approaches grounded on 
                                scientifically based reading 
                                research, including early 
                                intervention and reading 
                                remediation materials, 
                                programs, and approaches; and
                                  (II) instruction in the use 
                                of rigorous diagnostic reading 
                                assessments and other 
                                procedures that effectively 
                                identify students who may be at 
                                risk for reading failure or who 
                                are having difficulty reading; 
                                and
                          (iii) may be provided by eligible 
                        professional development providers or 
                        otherwise.
                  (E) Promoting reading and library programs 
                that provide access to engaging reading 
                material.
                  (F) Providing training to individuals who 
                volunteer to be reading tutors for students to 
                enable the volunteers to support instructional 
                practices that are based on scientific reading 
                research and being used by the student's 
                teacher.
                  (G) Assisting parents, through the use of 
                materials, programs, strategies and approaches, 
                that are based on scientific reading research, 
                to help support their children's reading 
                development.
                  (H) Collecting and summarizing data from 
                rigorous diagnostic reading assessments--
                          (i) to document the effectiveness of 
                        this subpart in individual schools and 
                        in the local educational agency as a 
                        whole; and
                          (ii) to stimulate and accelerate 
                        improvement by identifying the schools 
                        that produce the significant gains in 
                        reading achievement.
                  (I) Reporting data in the same manner as data 
                is reported under section 1116(c).
          (8) Local planning and administration.--A local 
        educational agency that receives a subgrant under this 
        subsection may use not more than 5 percent of the funds 
        provided under the subgrant for planning and 
        administration.
    (d) Other State Uses of Funds.--
          (1) In general.--A State that receives a grant under 
        this section may expend not more than a total of 20 
        percent of the grant funds to carry out the activities 
        described in paragraphs (3), (4), and (5).
          (2) Priority.--A State shall give priority to 
        carrying out the activities described in paragraphs 
        (3), (4), and (5) for schools described in subsection 
        (c)(6).
          (3) Professional development.--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 to develop and implement a program of 
        professional development for teachers of grades 
        kindergarten through 3 that--
                  (A) will prepare these teachers in all of the 
                major components of reading instruction;
                  (B) shall include--
                          (i) information on instructional 
                        materials, programs, strategies, and 
                        approaches grounded on scientifically 
                        based reading research, including early 
                        intervention and reading remediation 
                        materials, programs, and approaches; 
                        and
                          (ii) instruction in the use of 
                        rigorous diagnostic reading assessments 
                        and other procedures that effectively 
                        identify students who may be at risk 
                        for reading failure or who are having 
                        difficulty reading; and
                  (C) may be provided by eligible professional 
                development providers or otherwise.
          (4) Technical assistance for local educational 
        agencies and schools.--A State that receives a grant 
        under this section may expend not more than 5 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 program under this subpart, 
                including--
                          (i) selecting and implementing a 
                        program or programs of reading 
                        instruction grounded on scientifically 
                        based reading research;
                          (ii) selecting or developing rigorous 
                        diagnostic reading assessments; and
                          (iii) identifying eligible 
                        professional development providers to 
                        help prepare reading teachers to teach 
                        students using the programs and 
                        assessments described in subparagraphs 
                        (A) and (B).
                  (B) Providing expanded opportunities to 
                students in grades kindergarten through 3 
                within eligible local educational agencies for 
                receiving reading assistance from alternative 
                providers that includes--
                          (i) a rigorous diagnostic reading 
                        assessment; and
                          (ii) instruction in the major 
                        components of reading that is based on 
                        scientific reading research.
          (3) Planning, administration, and reporting.--
                  (A) In general.--A State that receives a 
                grant under this section shall expend not more 
                than 5 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 made available under subparagraph 
                (A) for planning and administration relating to 
                the State uses of funds authorized under this 
                subpart, including the following:
                          (i) Administering the distribution of 
                        competitive subgrants to local 
                        educational agencies under sections 
                        1222 and 1223.
                          (ii) Collecting and summarizing data 
                        from rigorous diagnostic reading 
                        assessments--
                                  (I) to document the 
                                effectiveness of this subpart 
                                in individual local educational 
                                agencies and in the State as a 
                                whole; and
                                  (II) to stimulate and 
                                accelerate improvement by 
                                identifying the local 
                                educational agencies that 
                                produce significant gains in 
                                reading achievement.
                  (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 thissubpart. The 
                        report shall also include the data 
                        required under subsection (c)(7)(H) to 
                        be reported to the State by local 
                        educational agencies. The report shall 
                        include a specific identification of 
                        those local educational agencies that 
                        report significant gains in reading 
                        achievement overall and such gains 
                        based on disaggregated data, reported 
                        in the same manner as data is reported 
                        under section 1116(c).
                          (ii) Privacy protection.--Data in the 
                        report shall be reported 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 
                        assist the State in producing the 
                        reports required to be submitted under 
                        this subparagraph.

SEC. 1223. COMPETITIVE GRANTS TO STATES; COMPETITIVE SUBGRANTS TO LOCAL 
                    AGENCIES.

    (a) In General.--In the case of a State that in accordance 
with section 1224 submits to the Secretary an application, the 
Secretary may award a grant, on a competitive basis, to the 
State for the use specified in subsection (c). The grant shall 
consist of the allotment determined for the State under 
subsection (b).
      (b) Determination of Amount of Allotment.--
          (1) In general.--From the total amount made available 
        to carry out this subpart for any fiscal year referred 
        to in subsection (a) that is neither used under section 
        1222 nor reserved under section 1225, the Secretary may 
        allot such remaining amount under this section among 
        each of the 50 States, the District of Columbia, and 
        the Commonwealth of Puerto Rico.
          (2) State allotments.--
                  (A) In general.--In carrying out paragraph 
                (1), the Secretary shall allot such funds to 
                those States that demonstrate the most 
                effective implementation of this subpart, as 
                determined by the peer review panel convened 
                under section 1224 based upon the application 
                contents described in subparagraph (B).
                  (B) Application contents.--A State that 
                desires to receive a grant under this section 
                shall include in its application the following:
                          (i) Evidence that the State has 
                        carried out its obligations under this 
                        subpart.
                          (ii) Evidence that the State has 
                        increased significantly the percentage 
                        of students reading at grade level or 
                        above by the end of the third grade.
                          (iii) Evidence that the State has 
                        been successful in reducing the reading 
                        deficit in terms of the percentage of 
                        students in ethnic, racial, and low-
                        income populations who are reading at 
                        grade level or above by the end of the 
                        third grade.
                          (iv) The amount of funds being 
                        requested by the State and a 
                        description of the criteria the State 
                        intends to use in distributing 
                        subgrants to local educational agencies 
                        under this section to continue or 
                        expand activities under this subpart.
                          (v) Any additional evidence that 
                        demonstrates success in the 
                        implementation of this subpart.
    (c) 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 eligible local 
        educational agencies in the State of the availability 
        of competitive subgrants under this subsection and of 
        the requirements for applying for the subgrants.
          (3) Application.--To apply for a subgrant under this 
        subsection, an eligible 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 State shall distribute funds 
        under this section, on a competitive basis, based on 
        the following criteria:
                  (A) Evidence that a local educational agency 
                has carried out its obligations under this 
                subpart.
                  (B) Evidence that a local educational agency 
                has increased significantly the percentage of 
                students reading at grade level or above by the 
                end of the third grade.
                  (C) Evidence that a local educational agency 
                has been successful in reducing the reading 
                deficit in terms of the percentage of students 
                in ethnic, racial, and low-income populations 
                who are reading at grade level or above by the 
                end of the third grade.
                  (D) The amount of funds being requested by a 
                local educational agency in its application 
                under paragraph (3) and the description in such 
                application of how such funds will be used to 
                support the continuation or expansion of the 
                agency's programs under this subpart.
                  (E) Evidence that the local educational 
                agency will work with other eligible local 
                educational agencies in the State who have not 
                received a subgrant under this subsection to 
                assist such nonreceiving agencies in increasing 
                the reading achievement of students.
                  (F) Any additional evidence in a local 
                educational agency's application under 
                paragraph (3) that demonstrates success in the 
                implementation of this subpart.
          (5) Local uses of funds.--A local educational agency 
        that receives a subgrant under this subsection shall 
        use the funds provided under the subgrant to carry out 
        the activities described in subparagraphs (A) through 
        (G) of section 1222(c)(7).

SEC. 1224. STATE APPLICATIONS.

    (a) In General.--A State that desires to receive a grant 
under this subpart 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) A description of a strategy to expand, continue, 
        or modify activities commenced under part C of title II 
        of this Act (as such part was in effect on the day 
        before the date of the enactment of the Better 
        Education for Students and Teachers Act).
          (3) 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 the following:
                  (A) How the State will assist local 
                educational agencies in identifying rigorous 
                diagnostic reading assessments.
                  (B) How the State will assist local 
                educational agencies in identifying 
                instructional materials, programs, strategies, 
                and approaches, grounded on scientifically 
                based reading research, including early 
                intervention and reading remediation materials, 
                programs and approaches.
                  (C) How the State educational agency will 
                ensure that professional development activities 
                related to reading instruction and provided 
                under this subpart 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.
                  (D) How the activities assisted under this 
                subpart will address the needs of teachers and 
                other instructional staff in schools receiving 
                assistance under this subpart and will 
                effectively teach students to read.
                  (E) The extent to which the activities will 
                prepare teachers in all the major components of 
                reading instruction.
                  (F) How subgrants made by the State 
                educational agency under this subpart will meet 
                the requirements of this subpart, including how 
                the State educational agency will ensure that 
                local educational agencies receiving subgrants 
                under this subpart will use practices based on 
                scientifically based reading research.
                  (G) How the State educational agency will, to 
                the extent practicable, make grants to 
                subgrantees in both rural and urban areas.
                  (H) 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 program; and
                          (ii) will assess and evaluate, on a 
                        regular basis, local educational agency 
                        activities assisted under this subpart, 
                        with respect to whether they have been 
                        effective in achieving the purposes of 
                        this subpart.
    (c) Approval of Applications.--
          (1) In general.--The Secretary shall approve an 
        application of a State under this section only if such 
        application meets the requirement 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) Required participants.--In order for a State to 
        receive a grant under this subpart, 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 
                1222.
                  (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 Better Education for Students and 
        Teachers Act, a State established a consortium, 
        partnership, or any other similar body that was 
        considered a reading and literacy partnership for 
        purposes of part C of title II of this Act (as such 
        part was in effect on the day before the date of the 
        enactment of the Better Education for Students and 
        Teachers Act), that consortium, partnership, or body 
        may be considered a reading and literacy partnership 
        for purposes of this subpart notwithstanding that it 
        does not satisfy the requirements of paragraph (1).

SEC. 1225. RESERVATIONS FROM APPROPRIATIONS.

    From the amounts appropriated to carry out this subpart for 
a fiscal year, the Secretary--
          (1) may reserve not more than 1 percent to carry out 
        section 1226 (relating to national activities); and
          (2) shall reserve $5,000,000 to carry out section 
        1227 (relating to information dissemination).

SEC. 1226. NATIONAL ACTIVITIES.

    From funds reserved under section 1225(1), the Secretary--
          (1) through grants or contracts, shall conduct an 
        evaluation of the program under this subpart using 
        criteria recommended by the peer review panel convened 
        under section 1224; and
          (2) may provide technical assistance in achieving the 
        purposes of this subpart to States, local educational 
        agencies, and schools requesting such assistance.

SEC. 1227. INFORMATION DISSEMINATION.

    (a) In General.--From funds reserved under section 1225(2), 
the National Institute for Literacy, in collaboration with the 
Departments of Education and Health and Human Services, 
including the National Institute for Child Health and Human 
Development, shall--
          (1) disseminate information on scientifically based 
        reading research pertaining to children, youth, and 
        adults;
          (2) identify and disseminate information about 
        schools, local educational agencies, and States that 
        effectively developed and implemented 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) support the continued identification of 
        scientifically based reading research that can lead to 
        improved reading outcomes for children, youth, and 
        adults through evidenced-based assessments of the 
        scientific research literature.
    (b) Dissemination and Coordination.--At a minimum, the 
National Institute for Literacy shall disseminate such 
information to recipients of Federal financial assistance under 
titles I and III, the Head Start Act, the Individuals With 
Disabilities Education Act, and the Adult Education and Family 
Literacy Act. 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.
    (c) Use of Funds.--The National Institute for Literacy may 
use not more than 5 percent of the funds made available under 
section 1225(2) for administrative purposes directly related to 
carrying out of activities authorized by this section.

SEC. 1228. 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 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) Major components of reading instruction.--The 
        term ``major components of reading instruction'' means 
        systematic instruction that includes--
                  (A) phonemic awareness;
                  (B) phonics;
                  (C) vocabulary development;
                  (D) reading fluency; and
                  (E) reading comprehension strategies.
          (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 assessment.--The term 
        ``rigorous diagnostic reading assessment'' means a 
        diagnostic reading assessment that--
                  (A) is valid, reliable, and grounded in 
                scientifically based reading research;
                  (B) measures progress in phonemic awareness 
                and phonics, vocabulary development, reading 
                fluency, and reading comprehension; and
                  (C) identifies students who may be at risk 
                for reading failure or who are having 
                difficulty reading.
          (6) Scientifically based reading research.--The term 
        ``scientifically based reading research''--
                  (A) means research that applies 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 3--Early Reading First

SEC. 1241. PURPOSES.

    The purposes of this subpart are as follows:
          (1) To support local efforts to enhance the school 
        readiness of young children, particularly those from 
        low-income families, through scientific, research-based 
        strategies and professional development that are 
        designed to enhance the early language and literacy 
        development of children aged 3 through 5.
          (2) To provide children aged 3 through 5 with 
        cognitive learning opportunities in high-quality 
        language and literature-rich environments, so that they 
        can attain the fundamental knowledge necessary for 
        optimal reading development in kindergarten and beyond.
          (3) To integrate these learning opportunities with 
        family literacy services.
          (4) To demonstrate research-based language and 
        literacy activities, which can be integrated with 
        existing preschool programs, that support the age-
        appropriate development of letter knowledge, letter 
        sounds and blending of sounds, words, the use of books, 
        and the understanding and use of an increasingly 
        complex and rich spoken vocabulary, developed in part 
        through teacher-read stories, as well as other 
        activities that build a strong foundation for learning 
        to read.

SEC. 1242. LOCAL EARLY READING FIRST GRANTS.

    (a) Program Authorized.--From amounts appropriated under 
section 1002(b)(3), the Secretary shall award grants, on a 
competitive basis, for periods of not more than 4 years, to 
eligible applicants to enable the eligible 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) one or more local educational agencies that are 
        eligible to receive a subgrant under subpart 2;
          (2) one or more public or private organizations, 
        acting on behalf of 1 or more programs that serve 
        preschool age children (such as a program at a Head 
        Start center or a family literacy program), which 
        organizations shall be located in a community served by 
        a local educational agency described in paragraph (1); 
        or
          (3) one or more local educational agencies described 
        in paragraph (1) in collaboration with one or more 
        organizations described in paragraph (2).
    (c) Applications.--An eligible applicant that desires to 
receive a grant under this section shall submit an application 
to the Secretary which shall include a description of--
          (1) the programs to be served by the proposed 
        project, including demographic and socioeconomic 
        information on the children enrolled in the programs;
          (2) how the proposed project will prepare and provide 
        ongoing assistance to staff in the programs, through 
        professional development and other support, to provide 
        high-quality language, literacy and prereading 
        activities using scientifically based research, for 
        children ages 3 through 5;
          (3) how the proposed project will provide services 
        and utilize materials that are based on scientifically 
        based research on early language acquisition, 
        prereading activities, and the development of spoken 
        vocabulary skills;
          (4) how the proposed project will help staff in the 
        programs to meet the diverse needs of children in the 
        community better, including children with limited 
        English proficiency, disabilities, or other special 
        needs;
          (5) how the proposed project will help children, 
        particularly children experiencing difficulty with 
        spoken language, prereading, and literacy skills, to 
        make the transition from preschool to formal classroom 
        instruction in school;
          (6) if the eligible applicant has received a subgrant 
        under subpart 2, how the activities conducted under 
        this subpart will be coordinated with the eligible 
        applicant's activities under subpart 2 at the 
        kindergarten through third-grade level;
          (7) how the proposed project will determine the 
        success of the activities supported under this subpart 
        in enhancing the early language and literacy 
        development of children served by the project; and
          (8) such other information as the Secretary may 
        require.
    (d) Approval of Applications.--The Secretary shall select 
applicants for funding under this subpart onthe basis of the 
quality of the applications, in consultation with the National 
Institute for Child Health and Human Development, the National 
Institute for Literacy, and the National Academy of Sciences. 
The Secretary shall select applications for approval under this 
subpart on the basis of a peer review process.
    (e) Award Amounts.--The Secretary may establish a maximum 
award amount, or ranges of award amounts, for grants under this 
subpart.

SEC. 1243. 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 early childhood programs 
administered by the Department of Health and Human Services.

SEC. 1244. INFORMATION DISSEMINATION.

    From the funds the National Institute for Literacy receives 
under section 1227, the National Institute for Literacy, in 
consultation with the Secretary, shall disseminate information 
regarding projects assisted under this subpart that have proven 
effective.

SEC. 1245. 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. 1246. EVALUATIONS.

    From the total amount appropriated under section 1002(b)(3) 
for the period beginning October 1, 2002 and ending September 
30, 2008, the Secretary shall reserve not more than $5,000,000 
to conduct an independent evaluation of the effectiveness of 
this subpart.

SEC. 1247. ADDITIONAL RESEARCH.

    From the amount appropriated under section 1002(b)(3) for 
each of the fiscal years 2002 through 2006, the Secretary shall 
reserve not more than $3,000,000 to conduct, in consultation 
with 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.

                PART C--EDUCATION OF MIGRATORY CHILDREN

SEC. 1301. [20 U.S.C. 6391] PROGRAM PURPOSE.

    It is the purpose of this part to assist States to--
          (1) * * *

           *       *       *       *       *       *       *

          (2) ensure that migratory children who move among the 
        States are not penalized in any manner by disparities 
        among the States in curriculum, graduation 
        requirements, and State student performance and content 
        standards;
          [(2)](3) ensure that migratory children are provided 
        with appropriate education services (including 
        supportive services) that address their special needs 
        in a coordinated and efficient manner;
          [(3)](4) ensure that migratory children have the 
        opportunity to meet the same challenging State content 
        standards and challenging State student performance 
        standards that all children are expected to meet;
          [(4)](5) design programs to help migratory children 
        overcome educational disruption, cultural and language 
        barriers, social isolation, various health-related 
        problems, and other factors that inhibit the ability of 
        such children to do well in school, and to prepare such 
        children to make a successful transition to 
        postsecondary education or employment; and
          [(5)](6) ensure that migratory children benefit from 
        State and local systemic reforms[.]; and
          (7) ensure that migratory children receive full and 
        appropriate opportunities to meet the same challenging 
        State content and student performance standards that 
        all children are expected to meet.

           *       *       *       *       *       *       *

SEC. 1304. [20 U.S.C. 6394] STATE APPLICATIONS; SERVICE.

    (a) Application Required.-- * * *

           *       *       *       *       *       *       *

    (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 education 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;] 
        the full range of services that are available for 
        migratory children from appropriate local, State, and 
        Federal educational programs;
          (2) a description of joint planning efforts that will 
        be made with respect to programs assisted under this 
        Act, local, State, and Federal programs, and bilingual 
        education programs under subpart 1 of part A of title 
        III;
          [(2)](3) a description of the steps the State is 
        taking to provide all migratory students with the 
        opportunity to meet the same challenging State content 
        standards and challenging State student performance 
        standards that all children are expected to meet;
          [(3)](4) a description of how the State will use 
        funds received under this part to promote interstate 
        and intrastate coordination of services for migratory 
        children, including how, consistent with procedures the 
        Secretary may require, the State will provide for 
        educational continuity through the timely transfer of 
        pertinent school records, including information on 
        health, when children move from one school to another, 
        whether or not such move occurs during the regular 
        school year;
          [(4)](5) a description of the State's priorities for 
        the use of funds received under this part, and how such 
        priorities relate to the State's assessment of needs 
        for services in the State;
          [(5)](6) 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); and
          [(6)](7) such budgetary and other information as the 
        Secretary may require.
    (c) Assurances.--Each such application shall also include 
assurances, satisfactory to the Secretary, that--
          (1) funds received under this part will be used 
        only--

           *       *       *       *       *       *       *

          [(3) in the planning and operation of programs and 
        projects at both the State and local agency operating 
        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, in a manner 
        consistent with section 1118;]
          (3) in the planning and operation of programs and 
        projects at both the State and local agency operating 
        level, there is consultation with parent advisory 
        councils for programs of one school year in duration, 
        and that all such programs and projects are carried 
        out--
                  (A) in a manner consistent with section 1118 
                unless extraordinary circumstances make 
                implementation with such section impractical; 
                and
                  (B) in a format and language understandable 
                to the parents;

           *       *       *       *       *       *       *

SEC. 1306. [20 U.S.C. 6396] COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-
                    DELIVERY PLAN; AUTHORIZED ACTIVITIES.

    (a) Comprehensive Plan.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  (A) is integrated with other programs under 
                this Act, [the Goals 2000: Educate America Act] 
                or other Acts, as appropriate, consistent with 
                section [14306] 5506;
                  (B) may be submitted as a part of 
                consolidated application under section [14302] 
                5502, if--
                          (i) the special needs of migratory 
                        children are specifically addressed in 
                        the comprehensive State plan;
                          (ii) the comprehensive State plan is 
                        developed in collaboration with parents 
                        of migratory children; and
                          (iii) the comprehensive State 
                        planning is not used to supplant State 
                        efforts regarding, or administrative 
                        funding for, this part;

           *       *       *       *       *       *       *

    (b) Authorized Activities.--
          (1) In general.-- * * *

           *       *       *       *       *       *       *

    [(b) Assistance and Reportint.--
          (3) Special rule.--Notwithstanding sectino 1114, a 
        school that received funds under this part shall 
        continue to address the identified needs described in 
        paragraph (a)(A), and shall meet the special 
        educational needs of migrant children before using 
        funds under this part for schoolwide programs under 
        section 1114.

SEC. 1308. [20 U.S.C. 6398] COORDINATION OF MIGRANT EDUCATION 
                    ACTIVITIES.

    (a) Improvement of Coordination.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

          [(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) Access to Information on Migrant Students.--
          (1) Information system.--(A) The Secretary shall 
        establish an information system for electronically 
        exchanging, among the States, health and educational 
        information regarding all students served under this 
        part. Such information may include--
                  (i) immunization records and other health 
                information;
                  (ii) elementary and secondary academic 
                history (including partial credit), credit 
                accrual, and results from State assessments 
                required under this title;
                  (iii) other academic information essential to 
                ensuring that migrant children achieve to high 
                standards; and
                  (iv) eligibility for services under the 
                Individuals with Disabilities Education Act.
          (B) The Secretary shall publish, not later than 120 
        days after the date of enactment of the Better 
        Education for Students and Teachers Act, a notice in 
        the Federal Register seeking public comment on the 
        proposed data elements that each State receiving funds 
        under this part shall be required to collect for 
        purposes of electronic transfer of migrant student 
        information, the requirements for immediate electronic 
        access to such information, and the educational 
        agencies eligible to access such information.
          (C) Such system of electronic access to migrant 
        student information shall be operational not later than 
        1 year after the date of enactment of the Better 
        Education for Students and Teachers Act.
          (D) For the purpose of carrying out this subsection 
        in any fiscal year, the Secretary shall reserve not 
        more than $10,000,000 of the amount appropriated to 
        carry out this part for such year.
          (2) Report to congress.--(A) Not later than April 30, 
        2003, the Secretary shall report to the Committee on 
        Health, Education, Labor, and Pensions of the Senate 
        and the Committee on Education and the Workforce of the 
        House of Representatives the Secretary's findings and 
        recommendations regarding services under this part, and 
        shall include in this report, recommendations for the 
        interim measures that may be taken to ensure continuity 
        of services under this part.
          (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.
    (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] $3,000,000 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).

           *       *       *       *       *       *       *

    (e) Data Collection.--The Secretary shall direct the 
National Center for Education Statistics to collect data on 
migratory children.

           *       *       *       *       *       *       *

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

[SEC. 1401. [20 U.S.C. 6421] FINDINGS; PURPOSE; PROGRAM AUTHORIZED.

    [(a) Findings.--Congress finds the following:
          [(1) A large percentage of youth in the juvenile 
        justice system have poor academic achievement, are a 
        year or more behind grade level, and have dropped out 
        of school.
          [(2) There is a strong correlation between academic 
        failure and involvement in delinquent activities.
          [(3) Preventing students from dropping out of local 
        schools and addressing the educational needs of 
        delinquent youth can help reduce the dropout rate and 
        involvement in delinquent activities at the same time.
          [(4) Many schools and correctional facilities fail to 
        communicate regarding a youth's academic needs and 
        students often return to their home school ill-prepared 
        to meet current curriculum requirements.
          [(5) Schools are often reluctant to deal with youth 
        returning from facilities and receive no funds to deal 
        with the unique educational and other needs of such 
        youth.
          [(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.
    [(b) Purpose.--It is the purpose of this part--
          [(1) to improve educational services to children in 
        local and State institutions for neglected or 
        delinquent children and youth so that such children and 
        youth have the opportunity to meet the same challenging 
        State content standards and challenging State student 
        performance standards that all children in the State 
        will be expected to meet;
          [(2) to provide such children and youth the services 
        needed to make a successful transition from 
        institutionalization to further schooling or 
        employment; and
          [(3) to prevent at-risk youth from dropping out of 
        school and to provide dropouts and youth returning from 
        institutions with a support system to ensure their 
        continued education.
    [(c) Program Authorized.--In order to carry out the purpose 
of this part the Secretary shall make grants to State 
educational agencies to enable such agencies to award subgrants 
to State agencies and local educational agencies to establish 
or improve programs of education for neglected or delinquent 
children and youth at risk of dropping out of school before 
graduation.

[SEC. 1402. [20 U.S.C. 6422] PAYMENTS FOR PROGRAMS UNDER THIS PART.

    [(a) Agency Subgrants.--Based on the allocation amount 
computed under section 1412, the Secretary shall allocate to 
each State educational agency amounts necessary to make 
subgrants to State agencies.
    [(b) Local Subgrants.--Each State shall retain, for 
purposes of subpart 2, funds generated throughout the State 
under part A based on youth residing in local correctional 
facilities, or attending community day programs for delinquent 
children and youth.
    [(c) Use of Remaining Funds.--Each State shall use any 
funds remaining after allocations are made under subsection 
(a).

                    Subpart 1--State Agency Programs

[SEC. 1411. [20 U.S.C. 6431] ELIGIBILITY.

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

SEC. 1412. [20 U.S.C. 6432] ALLOCATION OF FUNDS.

    [(a) Subgrants to State Agencies.--
          [(1) In General.--Each State agency described in 
        section 1411 (other than an agency in the Commonwealth 
        of Puerto Rico) is eligible to receive a subgrant under 
        this part, for each fiscal year, an amount equal to the 
        product of--
                  [(A) the number of neglected or delinquent 
                children and youth described in section 1411 
                who--
                          [(i) are enrolled for at least 15 
                        hours per week in education programs in 
                        adult correctional institutions; and
                          [(ii) are enrolled for at least 20 
                        hours per week--
                                  [(I) in education programs in 
                                institutions for neglected or 
                                delinquent children; or
                                  [(II) in community day 
                                programs for neglected or 
                                delinquent children; and
                  [(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, or more than 48 
                percent, of the average per-pupil expenditure 
                in the United States.
          [(2) Special Rule.--The number of neglected or 
        delinquent children and youth determined under 
        paragraph (1) shall--
                  [(A) be determined by the State agency by a 
                deadline set by the Secretary, except that no 
                State agency shall be required to determine the 
                number of such children on a specific date set 
                by the Secretary; and
                  [(B) be adjusted, as the Secretary determines 
                is appropriate, to reflect the relative length 
                of such agency's annual programs.
    [(b) Subgrants to State Agencies in Puerto Rico.--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 expendi-ture in the Commonwealth of 
                Puerto Rico is of the lowest average per-pupil 
                expenditure of any of 50 States; and
                  [(B) 32 percent of the average per-pupil 
                expenditure in the United States.
    [(c) Ratable Reductions in Case of Insufficient Appropria-
tions.--If the amount appropriated for any fiscal year for sub-
grants under subsections (a) and (b) is insufficient to pay the 
full amount for which all agencies are eligible under such 
subsections, the Secretary shall ratably reduce each such 
amount.

SEC. 1413. [20 U.S.C. 6433] STATE REALLOCATION OF FUNDS.

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

[SEC. 1414. [20 U.S.C. 6434] STATE PLAN AND STATE AGENCY APPLICA-TIONS.

    [(a) State Plan.--
          [(1) In general.--Each State educational agency that 
        de-sires to receive a grant under this part shall 
        submit, for ap-proval by the Secretary, a plan for 
        meeting the needs of ne-glected 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: Education 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 per-formance measures established by the 
                State that will be used to assess the 
                effectiveness of the program in improv-ing 
                academic and vocational skills of children in 
                the pro-gram;
                  [(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 sec-tion 1416;
                          [(iii) ensure that the State agencies 
                        receiving sub-grants under this subpart 
                        comply with all applicable statutory 
                        and regulatory requirements; and
                          [(iv) provide such other information 
                        as the Sec-retary may reasonably 
                        require.
          [(3) Duration of the plan.--Each such State plan 
        shall--
                  [(A) remain in effect for the duration of the 
                State's par-ticipation 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 de-
sires 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 
        ex-perts and provide the necessary training for 
        appropriate staff, to ensure that the planning and 
        operation of institution-wide projects under section 
        1416 are o 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 accord-ance with section 14501 
        of this title;
          [(8) describes how the programs will be coordinated 
        with other appropriate State and Federal programs, such 
        as pro-grams under the Job Training Partnership Act or 
        title I of the Workforce Investment Act of 1998, 
        vocational education pro-grams, State and local dropout 
        prevention programs, and spe-cial 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. 1415. [20 U.S.C. 6435] 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, 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 is failing, or most at 
                        risk of failing, to meet the State's 
                        challenging State content standards and 
                        challenging State student performance 
                        standards;
                          [(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; and
                  [(D) may include the costs of meeting the 
                evaluation requirements of section 14701.
    [(b) Supplement, Not Supplant.--A program under this 
subpart that supplements the number of hours of instruction 
students receive from State and local sources shall be 
considered to comply with the supplement, not supplant 
requirement of section 1120A without regard to the subject 
areas in which instruction is given during those hours.

[SEC. 1416 [20 U.S.C. 6436] INSTITUTION-WIDE PROJECTS.

    [A State agency that provides free public education for 
children and youth in an institution for neglected or 
delinquent children (other than an adult correctional 
institution) or attending a community-day program for such 
children may use funds received under this part to serve all 
children in, and upgrade the entire educational effort of, that 
institution or program if the State agency has developed, and 
the State educational agency has approved, a comprehensive plan 
for that institution or program that--
          [(1) provides for a comprehensive assessment of the 
        educational needs of all youth in the institution or 
        program serving juveniles;
          [(2) provides for a comprehensive assessment of the 
        educational needs of youth aged 20 and younger in adult 
        facilities who are expected to complete incarceration 
        within a two-year period;
          [(3) describes the steps the State agency has taken, 
        or will take, to provide all children under age 21 with 
        the opportunity to meet challenging State content 
        standards and challenging State student performance 
        standards in order to improve the likelihood that the 
        students will complete secondary school, attain 
        secondary diploma or its recognized equivalent, or find 
        employment after leaving the institution;
          [(4) describes the instructional program, pupil 
        services, and procedures that will be used to meet the 
        needs described in paragraph (1), including, to the 
        extent feasible, the provision of mentors for students;
          [(5) specifically describes how such funds will be 
        used;
          [(6) describes the measures and procedures that will 
        be used to assess student progress;
          [(7) describes how the agency has planned, and will 
        implement and evaluate, the institution-wide or 
        program-wide project in consultation with personnel 
        providing direct instructional services and support 
        services in institutions or community-day programs for 
        neglected or delinquent children and personnel from the 
        State educational agency; and
          [(8) includes an assurance that the State agency has 
        provided for appropriate training for teachers and 
        other instructional and administrative personnel to 
        enable such teachers and personnel to carry out the 
        project effectively.

[SEC. 1417. [120 U.S.C. 6437] THREE-YEAR PROGRAMS OR PROJECTS.

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

[SEC. 1418. [20 U.S.C. 6438] TRANSITION SERVICES.

    [(a) Transition Services.--Each State agency shall reserve 
not more than 10 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.
    [(b) Conduct of Projects.--A project support under this 
section may be conducted directly by the State agency, or 
through a contract or other arrangement with one or more local 
educational agencies, other public agencies, or private 
nonprofit organizations.
    [(c) Limitation.--Any funds reserved under subsection (a) 
shall be used only to provide transitional educational 
services, which may include pupil services and mentoring, to 
neglected and delinquent children in schools other than State-
operated institutions.
    [(d) Construction.--Nothing in this section shall be 
construed to prohibit a school that receives funds under 
subsection (a) from serving neglected and delinquent children 
simultaneously with students with similar educational needs, in 
the same educational settings where appropriate.

                   [Subpart 2--Local Agency Programs

[SEC. 1421. [20 U.S.C. 6451] 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) carry out high quality education programs to 
        prepare youth for secondary school completion, 
        training, and employment, or further education;
          [(2) provide activities to facilitate the transition 
        of such youth from the correctional program to further 
        education or employment; and
          [(3) operate dropout prevention programs in local 
        schools for youth at risk of dropping out of school and 
        youth returning from correctional facilities.

[SEC. 1422. [20 U.S.C. 6452] 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 members 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.
    [(c) Notification.--A State educational agency shall notify 
local educational agencies within the State of the eligibility 
of such agencies to receive a subgrant under this subpart.

[SEC. 1423. [20 U.S.C. 6453] LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    [Eligible local educational agencies desiring assistance 
under this section shall submit an application as to the State 
educational agency, containing such information as the State 
educational agency may require. Each such application shall 
include--
          [(1) a description of the program to be assisted;
          [(2) a description of formal agreements between--
                  [(A) the local educational agency; and
                  [(B) correctional facilities and alternative 
                school programs serving youth involved with the 
                juvenile justice system to operate programs for 
                delinquent youth;
          [(3) as appropriate, a description of how 
        participating schools will coordinate with facilities 
        working with delinquent youth to ensure that such youth 
        are participating in an education program comparable to 
        one operating in the local school such youth would 
        attend;
          [(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 achievementof 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 the Job 
        Training Partnership Act or title I of the Workforce 
        Investment Act of 1998 and vocational education 
        programs serving this at-risk population of youth;
          [(10) a description of how the program will be 
        coordinated with programs operated under the Juvenile 
        Justice and Delinquency Prevention Act of 1974 and 
        other comparable programs, if applicable;
          [(11) as appropriate, a description of how schools 
        will work with probation officers to assist in meeting 
        the needs of youth returning from correctional 
        facilities;
          [(12) a description of efforts participating schools 
        will make to ensure correctional facilities working 
        with youth are aware of a child's existing 
        individualized education program; and
          [(13) as appropriate, a description of the steps 
        participating schools will take to find alternative 
        placements for youth interested in continuing their 
        education but unable to participate in a regular public 
        school program.

[SEC 1424. [20 U.S.C. 6454] 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 
        and grants.

[SEC. 1425. [20 U.S.C. 6455] PROGRAM REQUIREMENTS FOR CORRECTIONAL 
                    FACILITIES RECEIVING FUNDS UNDER THIS SECTION.

    [Each correctional facility entering into an agreement with 
a local educational agency under section 1422(a) to provide 
services to youth under this section shall--
          [(1) where feasible, ensure 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;
          [(2) notify the local school of a youth if the youth 
        is identified as in need of special education services 
        while in the facility;
          [(3) where feasible, 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;
          [(4) provide support programs which encourage youth 
        who have dropped out to reenter school once their term 
        has been completed or provide such youth with the 
        skills necessary for such youth to gain employment or 
        seek a secondary school diploma or its recognized 
        equivalent;
          [(5) work to ensure such facilities are staffed with 
        teachers and other qualified staff who are trained to 
        work with children with disabilities and other students 
        with special needs taking into consideration the unique 
        needs of such children and students;
          [(6) ensure educational programs in correctional 
        facilities are related to assisting students meet high 
        educational standards;
          [(7) use, to the extent possible, technology to 
        assist in coordinating educational programs between the 
        juvenile facility and the community school;
          [(8) where feasible, involve parents in efforts to 
        improve the educational achievement of their children 
        and prevent the further involvement of such children in 
        delinquent activities;
          [(9) coordinate funds received under this program 
        with other local, State, and Federal funds available to 
        provide services to participating youth, such as funds 
        made available under the Job Training Partnership Act 
        or title I of the Workforce Investment Act of 1998, and 
        vocational education funds;
          [(10) coordinate programs operated under this subpart 
        with activities funded under the Juvenile Justice and 
        Delinquency Prevention Act of 1974 and other comparable 
        programs, if applicable; and
          [(11) if appropriate, work with local businesses to 
        develop training and mentoring programs for 
        participating youth.

[SEC. 1426. [20 U.S.C. 6456] ACCOUNTABILITY.

    [The State educational agency may--
          [(1) reduce or terminate funding for projects under 
        this section if a local educational agency does not 
        show progress in reducing dropout rates for male 
        students and for female students over a 3-year period; 
        and
          [(2) require juvenile facilities to demonstrate, 
        after receiving assistance under this subpart for 3 
        years, that there has been an increase in the number of 
        youth returning to school, obtaining a secondary school 
        diploma or its recognized equivalent, or obtaining 
        employment after such youth are released.

                     [Subpart 3--General Provisions

[SEC. 1431. [20 U.S.C. 6471] 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, by race, ethnicity, and 
age, not less than one every three years to determine the 
program's impact on the ability of participants to--
          [(1) maintain and improve educational achievement;
          [(2) accrue school credits that meet State 
        requirements for grade promotion and secondary school 
        graduation;
          [(3) make the transition to a regular program or 
        other education program operated by a local educational 
        agency; and
          [(4) complete secondary school (or secondary school 
        equivalency requirements) and obtain employment after 
        leaving the institution.
    [(b) Evaluation Measures.--In conducting each evaluation 
under subsection (a), a State agency or local educational 
agency shall use multiple and appropriate measures of student 
progress.
    [(c) Evaluation Results.--Each State agency and local 
educational agency shall--
          [(1) submit evaluation results to the State 
        educational agency; and
          [(2) use the results of evaluations under this 
        section to plan and improve subsequent programs for 
        participating children and youth.

[SEC. 1432. [20 U.S.C. 6472] DEFINITIONS.

    [For the purpose of this part:
          [(1) The term ``adult correctional institution'' 
        means a facility in which persons are confined as a 
        result of a conviction for a criminal offense, 
        including persons under 21 years of age.
          [(2) The term ``at-risk youth'' means school aged 
        youth who are at risk of academic failure, have drug or 
        alcohol problems, are pregnant or are parents, have 
        come into contact with the juvenile justice system in 
        the past, are at least one year behind the expected 
        grade level for the age of the youth, have limited-
        English proficiency, are gang members, have dropped out 
        of school in the past, or have high absenteeism rates 
        at school.
          [(3) The term ``community day program'' means a 
        regular program of instruction provided by a State 
        agency at a community day school operated specifically 
        for neglected or delinquent children.
          [(4) The term ``institution for delinquent children 
        and youth'' means a public or private residential 
        facility for the care of children who have been 
        adjudicated to be delinquent or in need of supervision.
          [(5) The term ``institution for neglected children'' 
        means a public or private residential facility, other 
        than a foster home, that is operated for the care of 
        children who have been committed to the institution or 
        voluntarily placed in the institution under applicable 
        State law, due to abandonment, neglect, or death of 
        their parents or guardians.]

    PART D--INITIATIVES FOR NEGLECTED, DELINQUENT, OR AT RISK YOUTH

Subpart 1--Prevention and Intervention Programs for Children and Youth 
       Who Are Neglected, Delinquent, or at Risk of Dropping Out

SEC. 1401. PURPOSE; PROGRAM AUTHORIZED.

  (a) Purpose.--It is the purpose of this subpart--
          (1) to improve educational services for children in 
        local and State institutions for neglected or 
        delinquent children and youth so that such children and 
        youth have the opportunity to meet the same challenging 
        State content standards and challenging State student 
        performance standards that all children in the State 
        are expected to meet;
          (2) to provide such children and youth with the 
        services needed to make a successful transition from 
        institutionalization to further schooling or 
        employment; and
          (3) to prevent at-risk youth from dropping out of 
        school and to provide dropouts and youth returning from 
        institutions with a support system to ensure their 
        continued education.
  (b) Program Authorized.--In order to carry out the purpose of 
this subpart the Secretary shall make grants to State 
educational agencies to enable such agencies to award subgrants 
to State agencies and local educational agencies to establish 
or improve programs of education for neglected or delinquent 
children and youth at risk of dropping out of school before 
graduation.

SEC. 1402. PAYMENTS FOR PROGRAMS UNDER THIS SUBPART.

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

                    CHAPTER 1--STATE AGENCY PROGRAMS

SEC. 1411. ELIGIBILITY.

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

SEC. 1412. ALLOCATION OF FUNDS.

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

SEC. 1413. STATE REALLOCATION OF FUNDS.

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

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 chapter shall 
        submit, for approval by the Secretary, a plan for 
        meeting the needs of neglected and delinquent children 
        and youth and, where applicable, children and youth at 
        risk of dropping out of school, that is integrated with 
        other programs under this Act, or other Acts, as 
        appropriate, consistent with section 5506.
          (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 subpart will be carried out 
                        in accordance with the State plan 
                        described in this subsection;
                          (ii) carry out the evaluation 
                        requirements of section 1431;
                          (iii) ensure that the State agencies 
                        receiving subgrants under this chapter 
                        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 State plan shall--
                  (A) remain in effect for the duration of the 
                State's participation under this subpart; and
                  (B) be periodically reviewed and revised by 
                the State, as necessary, to reflect changes in 
                the State's strategies and programs under this 
                subpart.
    (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 chapter 
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 institutions, 
        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;
          (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 
        evaluation activities 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 the fiscal effort required of a local 
        educational agency, in accordance with section 4;
          (8) describes how the programs will be coordinated 
        with other appropriate State and Federal programs, such 
        as programs under 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 children and 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 the 
        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 its 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 
        children and youth, such as career counseling, and 
        assistance in securing student loans and grants; and
          (18) provides assurances that the program under this 
        chapter will be coordinated with any programs operated 
        under the Juvenile Justice and Delinquency Prevention 
        Act of 1974 or other comparable programs, if 
        applicable.

SEC. 1415. USE OF FUNDS.

    (a) Uses.--
          (1) In general.--A State agency shall use funds 
        received under this chapter 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, further education, or employment.
          (2) Programs and projects.--Such programs and 
        projects--
                  (A) may include the acquisition of equipment;
                  (B) shall be designed to support educational 
                services that--
                          (i) except for institution-wide 
                        projects under section 1416, are 
                        provided to children and youth 
                        identified by the State agency as 
                        failing, or most at risk of failing, to 
                        meet the State's challenging State 
                        content standards and challenging State 
                        student performance standards;
                          (ii) supplement and improve the 
                        quality of the educational services 
                        provided to such children and youth by 
                        the State agency; and
                          (iii) afford such children and youth 
                        an opportunity to learn to such 
                        challenging State standards;
                  (C) shall be carried out in a manner 
                consistent with section 1120A and part H of 
                title I; and
                  (D) may include the costs of evaluation 
                activities.
    (b) Supplement, Not Supplant.--A program under this chapter 
that supplements the number of hoursof instruction students 
receive from State and local sources shall be considered to 
comply with the supplement, not supplant requirement of section 
1120A without regard to the subject areas in which instruction 
is given during those hours.

SEC. 1416. INSTITUTION-WIDE PROJECTS.

    A State agency that provides free public education for 
children and youth in an institution for neglected or 
delinquent children and youth (other than an adult correctional 
institution) or attending a community-day program for such 
children may use funds received under this part to serve all 
children in, and upgrade the entire educational effort of, that 
institution or program if the State agency has developed, and 
the State educational agency has approved, a comprehensive plan 
for that institution or program that--
          (1) provides for a comprehensive assessment of the 
        educational needs of all youth in the institution or 
        program serving juveniles;
          (2) provides for a comprehensive assessment of the 
        educational needs of youth aged 20 and younger in adult 
        facilities who are expected to complete incarceration 
        within a two-year period;
          (3) describes the steps the State agency has taken, 
        or will take, to provide all youth under age 21 with 
        the opportunity to meet challenging State content 
        standards and challenging State student performance 
        standards in order to improve the likelihood that the 
        youths will complete secondary school, attain a 
        secondary diploma or its recognized equivalent, or find 
        employment after leaving the institution;
          (4) describes the instructional program, pupil 
        services, and procedures that will be used to meet the 
        needs described in paragraph (1), including, to the 
        extent feasible, the provision of mentors for students;
          (5) specifically describes how such funds will be 
        used;
          (6) describes the measures and procedures that will 
        be used to assess student progress;
          (7) describes how the agency has planned, and will 
        implement and evaluate, the institution-wide or 
        program-wide project in consultation with personnel 
        providing direct instructional services and support 
        services in institutions or community-day programs for 
        neglected or delinquent children and personnel from the 
        State educational agency; and
          (8) includes an assurance that the State agency has 
        provided for appropriate training for teachers and 
        other instructional and administrative personnel to 
        enable such teachers and personnel to carry out the 
        project effectively.

SEC. 1417. THREE-YEAR PROGRAMS OR PROJECTS.

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

SEC. 1418. TRANSITION SERVICES.

    (a) Transition Services.--Each State agency shall reserve 
not more than 10 percent of the amount such agency receives 
under this chapter for any fiscal year to support projects that 
facilitate the transition of children and youth from State-
operated institutions to local educational agencies.
    (b) Conduct of Projects.--A project supported under this 
section may be conducted directly by the State agency, or 
through a contract or other arrangement with one or more local 
educational agencies, other public agencies, or private 
nonprofit organizations.
    (c) Limitation.--Any funds reserved under subsection (a) 
shall be used only to provide transitional educational 
services, which may include pupil services and mentoring, to 
neglected and delinquent children and youth in schools other 
than State-operated institutions.
    (d) Construction.--Nothing in this section shall be 
construed to prohibit a school that receives funds under 
subsection (a) from serving neglected and delinquent children 
and youth simultaneously with students with similar educational 
needs, in the same educational settings where appropriate.

                    CHAPTER 2--LOCAL AGENCY PROGRAMS

SEC. 1421. PURPOSE.

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

SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

    (a) Local Subgrants.--With funds made available under 
section 1412(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 community 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.
    (c) Notification.--A State educational agency shall notify 
local educational agencies within the State of the eligibility 
of such agencies to receive a subgrant under this chapter.

SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    Eligible local educational agencies desiring assistance 
under this chapter 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) a description of the program to be assisted;
          (2) a description of formal agreements between--
                  (A) the local educational agency; and
                  (B) correctional facilities and alternative 
                school programs serving youth involved with the 
                juvenile justice system to operate programs for 
                delinquent youth;
          (3) as appropriate, a description of how 
        participating schools will coordinate with facilities 
        working with delinquent youth to ensure that such youth 
        are participating in an education program comparable to 
        one operating in the local school such youth would 
        attend;
          (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 coordinate 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 
        chapter 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 at-risk youth;
          (10) a description of how the program will be 
        coordinated with programs operated under the Juvenile 
        Justice and Delinquency Prevention Act of 1974 and 
        other comparable programs, if applicable;
          (11) as appropriate, a description of how schools 
        will work with probation officers to assist in meeting 
        the needs of youth returning from correctional 
        facilities;
          (12) a description of efforts participating schools 
        will make to ensure correctional facilities working 
        with youth are aware of a child's existing 
        individualized education program; and
          (13) as appropriate, a description of the steps 
        participating schools will take to find alternative 
        placements for youth interested in continuing their 
        education but unable to participate in a regular public 
        school program.

SEC. 1424. USES OF FUNDS.

    Funds provided to local educational agencies under this 
chapter 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.

SEC. 1425. PROGRAM REQUIREMENTS FOR CORRECTIONAL FACILITIES RECEIVING 
                    FUNDS UNDER THIS SECTION.

    Each correctional facility having an agreement with a local 
educational agency under section 1423(2) to provide services to 
youth under this chapter shall--
          (1) where feasible, ensure 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;
          (2) notify the local school of a youth if the youth 
        is identified as in need of special education services 
        while in the facility;
          (3) where feasible, 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;
          (4) provide support programs which encourage youth 
        who have dropped out of school to reenter school once 
        their term has been completed or provide such youth 
        with the skills necessary for such youth to gain 
        employment or seek a secondary school diploma or its 
        recognized equivalent;
          (5) work to ensure such facilities are staffed with 
        teachers and other qualified staff who are trained to 
        work with children with disabilities and other students 
        with special needs taking into consideration the unique 
        needs of such children and students;
          (6) ensure educational programs in correctional 
        facilities are related to assisting students to meet 
        high educational standards;
          (7) use, to the extent possible, technology to assist 
        in coordinating educational programs between the 
        juvenile facility and the community school;
          (8) where feasible, involve parents in efforts to 
        improve the educational achievement of their children 
        and prevent the further involvement of such children in 
        delinquent activities;
          (9) coordinate funds received under this program 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, and vocational education funds;
          (10) coordinate programs operated under this chapter 
        with activities funded under the Juvenile Justice and 
        Delinquency Prevention Act of 1974 and other comparable 
        programs, if applicable; and
          (11) if appropriate, work with local businesses to 
        develop training and mentoring programs for 
        participating youth.

SEC. 1426. ACCOUNTABILITY.

    The State educational agency may--
          (1) reduce or terminate funding for projects under 
        this chapter if a local educational agency does not 
        show progress in reducing dropout rates for male 
        students and for female students over a 3-year period; 
        and
          (2) require juvenile facilities to demonstrate, after 
        receiving assistance under this chapter for 3 years, 
        that there has been an increase in the number of youth 
        returning to school, obtaining a secondary school 
        diploma or its recognized equivalent, or obtaining 
        employment after such youth are released.

                     CHAPTER 3--GENERAL PROVISIONS

SEC. 1431. PROGRAM EVALUATIONS.

  (a) Scope of Evaluation.--Each State agency or local 
educational agency that conducts a program under chapter 1 or 2 
shall evaluate the program, disaggregating data on 
participation by sex, and if feasible, by race, ethnicity, and 
age, not less than once every 3 years to determine the 
program's impact on the ability of participants to--
          (1) maintain and improve educational achievement;
          (2) accrue school credits that meet State 
        requirements for grade promotion and secondary school 
        graduation;
          (3) make the transition to a regular program or other 
        education program operated by a local educational 
        agency; and
          (4) complete secondary school (or secondary school 
        equivalency requirements) and obtain employment after 
        leaving the institution.
    (b) Evaluation Measures.--In conducting each evaluation 
under subsection (a), a State agency orlocal educational agency 
shall use multiple and appropriate measures of student 
progress.
    (c) Evaluation Results.--Each State agency and local 
educational agency shall--
          (1) submit evaluation results to the State 
        educational agency; and
          (2) use the results of evaluations under this section 
        to plan and improve subsequent programs for 
        participating children and youth.

SEC. 1432. DEFINITIONS.

    In this subpart:
          (1) Adult correctional institution.--The term ``adult 
        correctional institution'' means a facility in which 
        persons are confined as a result of a conviction for a 
        criminal offense, including persons under 21 years of 
        age.
          (2) At-risk youth.--The term ``at-risk youth'' means 
        school aged youth who are at risk of academic failure, 
        have drug or alcohol problems, are pregnant or are 
        parents, have come into contact with the juvenile 
        justice system in the past, are at least one year 
        behind the expected grade level for the age of the 
        youth, have limited-English proficiency, are gang 
        members, have dropped out of school in the past, or 
        have high absenteeism rates at school.
          (3) Community day program.--The term ``community day 
        program'' means a regular program of instruction 
        provided by a State agency at a community day school 
        operated specifically for neglected or delinquent 
        children and youth.
          (4) Institution for neglected or delinquent children 
        and youth.--The term ``institution for neglected or 
        delinquent children and youth'' means--
                  (A) a public or private residential facility, 
                other than a foster home, that is operated for 
                the care of children who have been committed to 
                the institution or voluntarily placed in the 
                institution under applicable State law, due to 
                abandonment, neglect, or death of their parents 
                or guardians; or
                  (B) a public or private residential facility 
                for the care of children who have been 
                adjudicated to be delinquent or in need of 
                supervision.

            PART F--21ST CENTURY COMMUNITY LEARNING CENTERS

SEC. 1601. SHORT TITLE.

    This part may be cited as the ``21st Century Community 
Learning Centers Act''.

SEC. 1602. PURPOSE.

    It is the purpose of this part to provide opportunities for 
public schools, primarily in rural and inner-city communities, 
to collaborate with other public and nonprofit entities 
(including businesses and postsecondary institutions) to--
          (1) offer a broad selection of services that address 
        the needs of the communities served by such schools; 
        and
          (2) offer extended learning opportunities for 
        children, youth, and adults in the communities.

SEC. 1603. PROGRAM AUTHORIZATION.

    (a) Grants by the Secretary.--The Secretary is authorized, 
in accordance with the provisions of this part, to award grants 
to local educational agencies, and units of general purpose 
local government, on behalf of rural and inner-city public 
elementary schools 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 $50,000.

SEC. 1604. ELIGIBILITY OF CERTAIN ORGANIZATIONS AND ENTITIES.

    (a) In General.--Notwithstanding any other provision of 
law--
          (1) the Secretary may award grants under this part to 
        community-based organizations, and public or private 
        entities, that have experience in providing before- and 
        after-school services, on the same basis as local 
        educational agencies described in section 1603; and
          (2) for purposes of this part--
                  (A) references to local educational agencies 
                shall be considered to include references to 
                organizations and entities described in 
                paragraph (1); and
                  (B) except as provided in subsection (c), 
                references to schools shall be considered to 
                include references to rural and inner-city 
                public elementary schools or secondary schools 
                served by organizations and entities described 
                in paragraph (1).
    (b) Priority.--In addition to giving priority to 
applications described in section 1605(b), in awarding grants 
under this part, the Secretary shall give priority to 
applications that--
          (1) describe projects that include academic 
        enrichment components; and
          (2) are submitted jointly by--
                  (A) organizations and entities described in 
                subsection (a)(1); and
                  (B) rural and inner-city public elementary 
                schools or secondary schools (including 
                consortia of such schools).
    (c) Waiver.--The Secretary may waive, for an organization 
or entity described in subsection (a)(1), any provision of this 
part that requires the organization or entity to carry out a 
project through or in a school, if the Secretary determines 
that the provision would undermine the effectiveness of the 
project or limit the accessibility of the project to children 
and families in the community.

SEC. 1605. APPLICATION REQUIRED.

    (a) Application.--To be eligible to receive a grant under 
this part, a local educational agency or unit of general 
purpose local government 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 served by the local educational 
        agency or unit of general purpose local government 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 served by the local educational 
                agency or unit of general purpose local 
                government 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 served by the local educational 
                agency or unit of general purpose local 
                government 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.
  (c) Encouraging Joint Submission of Applications.--The 
Secretary shall strongly encourage applications for grants 
under this part to be submitted jointly by a local educational 
agency (or a consortium of local educational agencies) or unit 
of general purpose local government, and a community-based 
organization, including public or private entities with 
demonstrated effectiveness in providing educational and related 
services to individuals in the community.

SEC. 1606. USES OF FUNDS.

  Grant funds awarded under this part may be used to plan, 
implement, or expand community learning centers which include 
not less than 4 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.
          (6) Expanded library service hours to serve community 
        needs.
          (7) Telecommunications and technology education 
        programs for individuals of all ages.
          (8) Services for individuals who leave school before 
        graduating from secondary school, regardless of the age 
        of such individual.
          (9) Services for individuals with disabilities.
          (10) Academic enrichment activities.

SEC. 1607. DEFINITIONS.

  For the purpose of this part:
          (1) Community learning center.--The term ``community 
        learning center'' means an entity within a public 
        elementary school or secondary school building that--
                  (A) provides educational, recreational, 
                health, and social service programs for 
                residents of all ages within a local community; 
                and
                  (B) is operated by a local educational agency 
                or unit of general purpose local government, 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.
          (2) Unit of general purpose local government.--The 
        term ``unit of general purpose local government'' means 
        any city, town, township, parish, village, or other 
        general purpose political subdivision of a State.

                  PART G--COMPREHENSIVE SCHOOL REFORM

SEC. 1701. PURPOSE.

  The purpose of this part is to provide financial incentives 
for schools to develop comprehensive school reforms based upon 
promising and effective practices and scientifically based 
research programs that emphasize basic academics and parental 
involvement so that all children can meet challenging State 
content and student performance standards.

SEC. 1702. PROGRAM AUTHORIZATION.

  (a) Program Authorized.--
          (1) In general.--The Secretary is authorized to award 
        grants to State educational agencies, from allotments 
        under paragraph (2), to enable the State educational 
        agencies to award subgrants to local educational 
        agencies to carry out the purpose described in section 
        1701.
          (2) Allotments.--
                  (A) Reservations.--Of the amount appropriated 
                under section 1002(h) for a fiscal year, the 
                Secretary may reserve--
                          (i) not more than 1 percent to 
                        provide assistance to schools supported 
                        by the Bureau of Indian Affairs and in 
                        the United States Virgin Islands, Guam, 
                        American Samoa, and the Commonwealth of 
                        the Northern Mariana Islands according 
                        to their respective needs for 
                        assistance under this part; and
                          (ii) not more than 1 percent to 
                        conduct national evaluation activities 
                        described in section 1707.
                  (B) In general.--Of the amount appropriated 
                under section 1002(h) that remains after making 
                the reservation under subparagraph (A) for a 
                fiscal year, the Secretary shall allot to each 
                State for the fiscal year an amount that bears 
                the same ratio to the remainder for that fiscal 
                year as the amount made available under section 
                1124 to the State for the preceding fiscal year 
                bears to the total amount made available under 
                section 1124 to all States for that year.
                  (C) Reallotment.--If a State does not apply 
                for funds under this section, the Secretary 
                shall reallot such funds to other States that 
                do not apply in proportion to the amount 
                allotted to such other States under 
                subparagraph (B).

SEC. 1703. STATE APPLICATIONS.

  (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 information as the Secretary may reasonably 
require.
  (b) Contents.--Each such application shall describe--
          (1) the process and selection criteria by which the 
        State educational agency, using expert review,will 
        select local educational agencies to receive subgrants 
        under this section;
          (2) how the State educational agency will ensure that 
        only comprehensive school reforms that are based on 
        promising and effective practices and scientifically 
        based research programs receive funds under this part;
          (3) how the State educational agency will disseminate 
        information on comprehensive school reforms that are 
        based on promising and effective practices and 
        scientifically based research programs;
          (4) how the State educational agency will evaluate 
        the implementation of such reforms and measure the 
        extent to which the reforms have resulted in increased 
        student academic performance; and
          (5) how the State educational agency will make 
        available technical assistance to a local educational 
        agency or consortia of local educational agencies in 
        evaluating, developing, and implementing comprehensive 
        school reform.

SEC. 1704. STATE USE OF FUNDS.

  (a) In General.--Except as provided in subsection (e), a 
State educational agency that receives a grant under this part 
shall use the grant funds to award subgrants, on a competitive 
basis, to local educational agencies or consortia of local 
educational agencies in the State that receive funds under part 
A.
  (b) Subgrant Requirements.--A subgrant to a local educational 
agency or consortium shall be--
          (1) of sufficient size and scope to support the 
        initial costs for the particular comprehensive school 
        reform plan selected or designed by each school 
        identified in the application of the local educational 
        agency or consortium;
          (2) in an amount not less than $50,000 for each 
        participating school; and
          (3) renewable for 2 additional 1-year periods after 
        the initial 1-year grant is made if the school is 
        making substantial progress in the implementation of 
        reforms.
  (c) Priority.--A State educational agency, in awarding 
subgrants under this part, shall give priority to local 
educational agencies or consortia that--
          (1) plan to use the funds in schools identified as 
        being in need of improvement or corrective action under 
        section 1116(c); and
          (2) demonstrate a commitment to assist schools with 
        budget allocation, professional development, and other 
        strategies necessary to ensure the comprehensive school 
        reforms are properly implemented and are sustained in 
        the future.
  (d) Grant Consideration.--In awarding subgrants under this 
part, the State educational agency shall take into 
consideration the equitable distribution of subgrants to 
different geographic regions within the State, including urban 
and rural areas, and to schools serving elementary school and 
secondary students.
  (e) Administrative Costs.--A State educational agency that 
receives a grant under this part may reserve not more than 5 
percent of the grant funds for administrative, evaluation, and 
technical assistance expenses.
  (f) Supplement.--Funds made available under this part shall 
be used to supplement, and not supplant, any other Federal, 
State, or local funds that would otherwise be available to 
carry out the activities assisted under this part.
  (g) Reporting.--Each State educational agency that receives a 
grant under this part shall provide to the Secretary such 
information as the Secretary may require, including the names 
of local educational agencies and schools receiving assistance 
under this part, the amount of the assistance, and a 
description of the comprehensive school reform model selected 
and used.

SEC. 1705. LOCAL APPLICATIONS.

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

SEC. 1706. LOCAL USE OF FUNDS.

  (a) Uses of Funds.--A local educational agency or consortium 
that receives a subgrant under this section shall provide the 
subgrant funds to schools, that are eligible for assistance 
under part A and served by the agency, to enable the schools to 
implement a comprehensive school reform program for--
          (1) employing innovative strategies for student 
        learning, teaching, and school management that are 
        based on promising and effective practices and 
        scientifically based research programs and have been 
        replicated successfully in schools with diverse 
        characteristics;
          (2) integrating 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 student 
        performance standards and addresses needs identified 
        through a school needs assessment;
          (3) providing high quality and continuous teacher and 
        staff professional development;
          (4) the inclusion of measurable goals for student 
        performance;
          (5) support for teachers, principals, administrators, 
        and other school personnel staff;
          (6) meaningful community and parental involvement 
        initiatives that will strengthen school improvement 
        activities;
          (7) using high quality external technical support and 
        assistance from an entity that has experience and 
        expertise in schoolwide reform and improvement, which 
        may include an institution of higher education;
          (8) evaluating school reform implementation and 
        student performance; and
          (9) identification of other resources, including 
        Federal, State, local, and private resources, that 
        shall be used to coordinate services that will support 
        and sustain the school reform effort.
  (b) Special Rule.--A school that receives funds to develop a 
comprehensive school reform program shall not be limited to 
using the approaches identified or developed by the Secretary, 
but may develop the school's own comprehensive school reform 
programs for schoolwide change as described in subsection (a).

SEC. 1707. NATIONAL EVALUATION AND REPORTS.

  (a) In General.--The Secretary shall develop a plan for a 
national evaluation of the programs assisted under this part.
  (b) Evaluation.--The national evaluation shall--
          (1) evaluate the implementation and results achieved 
        by schools after 3 years of implementing comprehensive 
        school reforms; and
          (2) assess the effectiveness of comprehensive school 
        reforms in schools with diverse characteristics.
  (c) Reports.--Prior to the completion of the national 
evaluation, the Secretary shall submit an interim report 
describing implementation activities for the Comprehensive 
School Reform Program, which began in 1998, to the Committee on 
Education and the Workforce, and the Committee on 
Appropriations of the House of Representatives, and the 
Committee on Health, Education, Labor, and Pensions, and the 
Committee on Appropriations of the Senate.

                   PART H--SCHOOL DROPOUT PREVENTION

SEC. 1801. SHORT TITLE.

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

SEC. 1802. PURPOSE.

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

                Subpart 1--Coordinated National Strategy

SEC. 1811. NATIONAL ACTIVITIES.

  (a) In General.--The Secretary is authorized--
          (1) to collect systematic data on the participation 
        in the programs described in paragraph (2)(C) of 
        individuals 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;
          (2) to establish and to consult with an interagency 
        working group that shall--
                  (A) address inter- and intra-agency program 
                coordination issues at the Federal level with 
                respect to school dropout prevention and middle 
                school and secondary school reentry, and assess 
                the targeting of existing Federal services to 
                students who are most at risk of dropping out 
                of school, and the cost-effectiveness of 
                various programs and approaches used to address 
                school dropout prevention;
                  (B) describe the ways in which State and 
                local agencies can implement effective school 
                dropout prevention programs using funds from a 
                variety of Federal programs, including the 
                programs under this title and the School-to-
                Work Opportunities Act of 1994; and
                  (C) address all Federal programs with school 
                dropout prevention or school reentry elements 
                or objectives, including programs under this 
                title, the School-to-Work Opportunities Act of 
                1994, subtitle C of title I of the Workforce 
                Investment Act of 1998, and other programs; and
          (3) carry out a national recognition program in 
        accordance with subsection (b) that recognizes schools 
        that have made extraordinary progress in lowering 
        school dropout rates under which a public middle school 
        or secondary school from each State will be recognized.
    (b) Recognition Program.--
          (1) National guidelines.--The Secretary shall develop 
        uniform national guidelines for the recognition program 
        that shall be used to recognize schools from 
        nominations submitted by State educational agencies.
          (2) Eligible schools.--The Secretary may recognize 
        under the recognition program any public middle school 
        or secondary school (including a charter school) that 
        has implemented comprehensive reforms regarding the 
        lowering of school dropout rates for all students at 
        that school.
          (3) Support.--The Secretary may make monetary awards 
        to schools recognized under the recognition program in 
        amounts determined by the Secretary. Amounts received 
        under this section shall be used for dissemination 
        activities within the school district or nationally.
    (c) Capacity Building.--
          (1) In general.--The Secretary, through a contract 
        with a non-Federal entity, may conduct a capacity 
        building and design initiative in order to increase the 
        types of proven strategies for dropout prevention and 
        reentry that address the needs of an entire school 
        population rather than a subset of students.
          (2) Number and duration.--
                  (A) Number.--The Secretary may award not more 
                than 5 contracts under this subsection.
                  (B) Duration.--The Secretary may award a 
                contract under this subsection for a period of 
                not more than 5 years.
    (d) Support for Existing Reform Networks.--
          (1) In general.--The Secretary may provide 
        appropriate support to eligible entities to enable the 
        eligible entities to provide training, materials, 
        development, and staff assistance to schools assisted 
        under this chapter.
          (2) Definition of eligible entity.--In this 
        subsection, the term ``eligible entity'' means an 
        entity that, prior to the date of enactment of the 
        Dropout Prevention Act--
                  (A) provided training, technical assistance, 
                and materials to 100 or more elementary schools 
                or secondary schools; and
                  (B) developed and published a specific 
                educational program or design for use by the 
                schools.

        Subpart 2--National School Dropout Prevention Initiative

SEC. 1821. PROGRAM AUTHORIZED.

    (a) Grants.--
          (1) Discretionary grants.--If the sum appropriated 
        under section 1002(i) for a fiscal year is less than 
        $250,000,000, then the Secretary shall use such sum to 
        award grants, on a competitive basis, to State 
        educational agencies to enable the State educational 
        agencies to award grants under subsection (b).
          (2) Formula.--If the sum appropriated under section 
        1002(i) for a fiscal year equals or exceeds 
        $250,000,000, then the Secretary shall use such sum to 
        make an allotment to each State in an amount that bears 
        the same relation to the sum as the amount the State 
        received under part A for the preceding fiscal year 
        bears to the amount received by all States under such 
        part for the preceding fiscal year.
          (3) Definition of state.--In this subpart, the term 
        ``State'' means each of the several States of the 
        United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the 
        Republic of Palau.
  (b) Grants.--From amounts made available to a State under 
subsection (a), the State educational agency may award grants 
to public middle schools or secondary schools that serve 
students in grades 6 through 12, that have school dropout rates 
that are the highest of all school dropout rates in the State, 
to enable the schools to pay only the startup and 
implementation costs of effective, sustainable, coordinated, 
and whole school dropout prevention programs that involve 
activities such as--
          (1) professional development;
          (2) obtaining curricular materials;
          (3) release time for professional staff;
          (4) planning and research;
          (5) remedial education;
          (6) reduction in pupil-to-teacher ratios;
          (7) efforts to meet State student achievement 
        standards;
          (8) counseling and mentoring for at-risk students; 
        and
          (9) comprehensive school reform models.
    (c) Amount.--
          (1) In general.--Subject to subsection (d) and except 
        as provided in paragraph (2), a grant under this 
        subpart shall be awarded--
                  (A) in the first year that a school receives 
                a grant payment under this subpart, based on 
                factors such as--
                          (i) school size;
                          (ii) costs of the model or set of 
                        prevention and reentry strategies being 
                        implemented; and
                          (iii) local cost factors such as 
                        poverty rates;
                  (B) in the second such year, in an amount 
                that is not less than 75 percent of the amount 
                the school received under this subpart in the 
                first such year;
                  (C) in the third year, in an amount that is 
                not less than 50 percent of the amount the 
                school received under this subpart in the first 
                such year; and
                  (D) in each succeeding year in an amount that 
                is not less than 30 percent of the amount the 
                school received under this subpart in the first 
                such year.
          (2) Increases.--The Secretary shall increase the 
        amount awarded to a school under this subpart by 10 
        percent if the school creates smaller learning 
        communities within the school and the creation is 
        certified by the State educational agency.
    (d) Duration.--A grant under this subpart shall be awarded 
for a period of 3 years, and may be continued for a period of 2 
additional years if the State educational agency determines, 
based on the annual reports described in section 1827(a), that 
significant progress has been made in lowering the school 
dropout rate for students participating in the program assisted 
under this subpart compared to students at similar schools who 
are not participating in the program.

SEC. 1822. STRATEGIES AND CAPACITY BUILDING.

    Each school receiving a grant under this subpart shall 
implement scientifically based research, sustainable, and 
widely replicated strategies for school dropout prevention and 
reentry that address the needs of an entire school population 
rather than a subset of students. The strategies may include--
          (1) specific strategies for targeted purposes, such 
        as--
                  (A) effective early intervention programs 
                designed to identify at-risk students;
                  (B) effective programs encompassing 
                traditionally underserved students, including 
                racial and ethnic minorities and pregnant and 
                parenting teenagers, designed to prevent such 
                students from dropping out of school; and
                  (C) effective programs to identify and 
                encourage youth who have already dropped out of 
                school to reenter school and complete their 
                secondary education; and
          (2) approaches such as breaking larger schools down 
        into smaller learning communities and other 
        comprehensive reform approaches, creating alternative 
        school programs, developing clear linkages to career 
        skills and employment, and addressing specific 
        gatekeeper hurdles that often limit student retention 
        and academic success.

SEC. 1823. SELECTION OF SCHOOLS.

    (a) School Application.--
          (1) In general.--Each school desiring a grant under 
        this subpart shall submit an application to the State 
        educational agency at such time, in such manner, and 
        accompanied by such information as the State 
        educational agency may require.
          (2) Contents.--Each application submitted under 
        paragraph (1) shall--
                  (A) contain a certification from the local 
                educational agency serving the school that--
                          (i) the school has the highest number 
                        or rates of school dropouts in the age 
                        group served by the local educational 
                        agency;
                          (ii) the local educational agency is 
                        committed to providing ongoing 
                        operational support, for the school's 
                        comprehensive reform plan to address 
                        the problem of school dropouts, for a 
                        period of 5 years; and
                          (iii) the local educational agency 
                        will support the plan, including--
                                  (I) release time for teacher 
                                training;
                                  (II) efforts to coordinate 
                                activities for feeder schools; 
                                and
                                  (III) encouraging other 
                                schools served by the local 
                                educational agency to 
                                participate in the plan;
                  (B) demonstrate that the faculty and 
                administration of the school have agreed to 
                applyfor assistance under this subpart, and 
                provide evidence of the school's willingness 
                and ability to use the funds under this 
                subpart, including providing an assurance of 
                the support of 80 percent or more of the 
                professional staff at the school;
                  (C) describe the instructional strategies to 
                be implemented, how the strategies will serve 
                all students, and the effectiveness of the 
                strategies;
                  (D) describe a budget and timeline for 
                implementing the strategies;
                  (E) contain evidence of coordination with 
                existing resources;
                  (F) provide an assurance that funds provided 
                under this subpart will supplement and not 
                supplant other Federal, State, and local funds 
                available for dropout prevention programs;
                  (G) describe how the activities to be 
                assisted conform with scientifically based 
                research knowledge about school dropout 
                prevention and reentry; and
                  (H) demonstrate that the school and local 
                educational agency have agreed to conduct a 
                schoolwide program under section 1114.
    (b) State Agency Review and Award.--The State educational 
agency shall review applications and award grants to schools 
under subsection (a) according to a review by a panel of 
experts on school dropout prevention.
    (c) Eligibility.--A school is eligible to receive a grant 
under this subpart if the school is--
          (1) a public school (including a public alternative 
        school)--
                  (A) that is eligible to receive assistance 
                under part A, including a comprehensive 
                secondary school, a vocational or technical 
                secondary school, or a charter school; and
                  (B)(i) that serves students 50 percent or 
                more of whom are low-income individuals; or
                  (ii) with respect to which the feeder schools 
                that provide the majority of the incoming 
                students to the school serve students 50 
                percent or more of whom are low-income 
                individuals; or
          (2) participating in a schoolwide program under 
        section 1114 during the grant period.
    (d) Community-Based Organizations.--A school that receives 
a grant under this subpart may use the grant funds to secure 
necessary services from a community-based organization, 
including private sector entities, if--
          (1) the school approves the use;
          (2) the funds are used to provide school dropout 
        prevention and reentry activities related to schoolwide 
        efforts; and
          (3) the community-based organization has demonstrated 
        the organization's ability to provide effective 
        services as described in section 122 of the Workforce 
        Investment Act of 1998.
    (e) Coordination.--Each school that receives a grant under 
this subpart shall coordinate the activities assisted under 
this subpart with other Federal programs, such as programs 
assisted under chapter 1 of subpart 2 of part A of title IV of 
the Higher Education Act of 1965.

SEC. 1824. DISSEMINATION ACTIVITIES.

    Each school that receives a grant under this part shall 
provide information and technical assistance to other schools 
within the school district, including presentations, document-
sharing, and joint staff development.

SEC. 1825. PROGRESS INCENTIVES.

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

SEC. 1826. SCHOOL DROPOUT RATE CALCULATION.

    For purposes of calculating a school dropout rate under 
this subpart, a school shall use--
          (1) the annual event school dropout rate for students 
        leaving a school in a single year determined in 
        accordance with the National Center for Education 
        Statistics' Common Core of Data, if available; or
          (2) in other cases, a standard method for calculating 
        the school dropout rate as determined by the State 
        educational agency.

SEC. 1827. REPORTING AND ACCOUNTABILITY.

    (a) Reporting.--To receive funds under this subpart for a 
fiscal year after the first fiscal year that a school receives 
funds under this subpart, the school shall provide, on an 
annual basis, to the Secretary and the State educational agency 
a report regarding the status of the implementation of 
activities funded under this subpart, the outcome data for 
students at schools assisted underthis subpart disaggregated in 
the same manner as information under section 1811(a) (such as 
dropout rates), and a certification of progress from the 
eligible entity whose strategies the school is implementing.
  (b) Accountability.--On the basis of the reports submitted 
under subsection (a), the Secretary shall evaluate the effect 
of the activities assisted under this subpart on school dropout 
prevention compared to a control group.

SEC. 1828. STATE RESPONSIBILITIES.

  (a) Uniform Data Collection.--Within 1 year after the date of 
enactment of the Dropout Prevention Act, a State educational 
agency that receives funds under this subpart shall report to 
the Secretary and statewide, all school district and school 
data regarding school dropout rates in the State disaggregated 
in the same manner as information under section 1811(a), 
according to procedures that conform with the National Center 
for Education Statistics' Common Core of Data.
  (b) Attendance-Neutral Funding Policies.--Within 2 years 
after the date of enactment of the Dropout Prevention Act, a 
State educational agency that receives funds under this subpart 
shall develop and implement education funding formula policies 
for public schools that provide appropriate incentives to 
retain students in school throughout the school year, such as--
          (1) a student count methodology that does not 
        determine annual budgets based on attendance on a 
        single day early in the academic year; and
          (2) specific incentives for retaining enrolled 
        students throughout each year.
  (c) Suspension and Expulsion Policies.--Within 2 years after 
the date of enactment of the Dropout Prevention Act, a State 
educational agency that receives funds under this subpart shall 
develop uniform, long-term suspension and expulsion policies 
(that in the case of a child with a disability are consistent 
with the suspension and expulsion policies under the 
Individuals with Disabilities Education Act) for serious 
infractions resulting in more than 10 days of exclusion from 
school per academic year so that similar violations result in 
similar penalties.
  (d) Regulations.--The Secretary shall promulgate regulations 
implementing subsections (a) through (c).

        Subpart 3--Definitions; Authorization of Appropriations

SEC. 1831. DEFINITIONS.

  In this part:
          (1) Low-income.--The term ``low-income'', used with 
        respect to an individual, means an individual 
        determined to be low-income in accordance with measures 
        described in section 1113(a)(5).
          (2) School dropout.--The term ``school dropout'' 
        means a youth who is no longer attending any school and 
        who has not received a secondary school diploma or a 
        certificate from a program of equivalency for such a 
        diploma.

           *       *       *       *       *       *       *

                     PART [F] T--GENERAL PROVISIONS

SEC. [1601.] 1901. [20 U.S.C. 6511] 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.] 1902. [20 U.S.C. 6512] 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 
        tile, uniformity 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.] 1903. [20 U.S.C. 6513] 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 designed to 
        enable all children to meet the challenging State 
        contend 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 an 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 practioners 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.] 1904. [20 U.S.C. 6514] 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.

    [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 and 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 to 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 report 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 jurisdictionsreceived 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 $25,000,000.--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 
2202(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 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 much 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 approved 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 
        of 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, 
                administrator, pupil service 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 under 
                        represented 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, 
                experimental 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 describe din 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) 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.
          [(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) 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 and 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 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 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 
        therequirements 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 art.

[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 he 
                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 subsection, 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 instructions 
                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 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 
                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 readingresearch 
                        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 OR APPROPRIATIONS; RESERVATIONS FROM 
                    APPROPRIATIONS; SUNSET.

    [(a) Authorizations.--
          [(1) FY 1999.--There are authorized to be 
        appropriated to carry out this part and section 1202(c) 
        $260,000,000 for fiscal year 1999.
          [(2) FY 2000.--There are authorized to be 
        appropriated to carry out this part and section 1202(c) 
        $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);
          [(2) shall reserve $5,000,000 to carry out section 
        2258; and
          [(3) shall reserve $10,000,000 to carry out section 
        1202(c).
    [(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 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--TEACHERS

                        PART A--TEACHER QUALITY

SEC. 2101. PURPOSE.

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

SEC. 2102. DEFINITIONS.

  In this part:
          (1) All students.--The term ``all students'' means 
        students from a broad range of backgrounds and 
        circumstances, including economically disadvantaged 
        students, students with diverse racial, ethnic, and 
        cultural backgrounds, students with disabilities, 
        students with limited English proficiency, and 
        academically talented students.
          (2) Core academic subjects.--The term ``core academic 
        subjects'' means English, mathematics, science, foreign 
        languages, civics and government, economics, arts, 
        history, and geography.
          (3) Highly qualified.--The term ``highly qualified'' 
        means--
                  (A) with respect to an elementary school 
                teacher, a teacher--
                          (i)(I) with an academic major in the 
                        arts and sciences; or
                          (II) who can demonstrate competence 
                        through a high level of performance in 
                        core academic subjects; and
                          (ii) who is certified or licensed by 
                        the State involved; and
                  (B) with respect to a secondary school 
                teacher, a teacher--
                          (i)(I) with an academic major (or 
                        courses totaling an equivalent number 
                        of credit hours) in the academic 
                        subject that the teacher teaches or a 
                        related field;
                          (II) who can demonstrate a high level 
                        of competence through rigorous academic 
                        subject tests and achievement of a high 
                        level of competence as described in 
                        subclause (III);
                          (III) who can demonstrate a high 
                        level of competence through a high 
                        level of performance in the academic 
                        subjects that the teacher teaches; and
                          (ii) who is certified or licensed by 
                        the State.
          (4) High need local educational agency.--The term 
        ``high need local educational agency'' has the meaning 
        given the term in section 201(b) of the Higher 
        Education Act of 1965.
          (5) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given the term in section 101(a) of the Higher 
        Education Act of 1965.
          (6) Out-of-field teacher.--The term ``out-of-field 
        teacher'' means a secondary school teacher who is 
        teaching an academic subject for which the teacher is 
        not highly qualified.
          (7) Poverty line.--The term ``poverty line'' means 
        the poverty line (as defined by the Office of 
        Management and Budget and revised annually in 
        accordance with section 673(2) of the Community 
        Services Block Grant Act) applicable to a family of the 
        size involved.
          (8) Professional development.--The term 
        ``professional development'' means activities that--
                  (A) are an integral part of broad schoolwide 
                and districtwide educational improvement plans;
                  (B) enhance the ability of teachers and other 
                staff to--
                          (i) help all students meet 
                        challenging State and local content and 
                        student performance standards;
                          (ii) improve understanding and use of 
                        student assessments by the teachers and 
                        staff;
                          (iii) improve classroom management 
                        skills; and
                          (iv) as appropriate, integrate 
                        technology into the curriculum;
                  (C) are sustained, intensive, and school-
                embedded;
                  (D) are tied to State content and student 
                performance standards;
                  (E) are of high quality and sufficient 
                duration to have a positive and lasting impact 
                on classroom instruction, and are not one-time 
                workshops; and
                  (F) are based on the best available research 
                on teaching and learning.

SEC. 2103. AUTHORIZATION OF APPROPRIATIONS.

    (a) Grants to States, Local Educational Agencies, and 
Eligible Partnerships.--There are authorized to be appropriated 
to carry out this part (other than subpart 5) $3,000,000,000 
for fiscal year 2002 and such sums as may be necessary for each 
of the 6 succeeding fiscal years.
    (b) National Programs.--There are authorized to be 
appropriated to carry out subpart 5 (other than subsection (f)) 
$100,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.

                      Subpart 1--Grants to States

SEC. 2111. ALLOTMENTS TO STATES.

    (a) In General.--The Secretary shall make grants to States 
with applications approved under section 2112 to pay for the 
Federal share of carrying out the activities specified in 
section 2113. Each grant shall consist of the allotment 
determined for a State under subsection (b).
    (b) Determination of Allotments.--
          (1) Reservation of funds.--
                  (A) In general.--From the total amount 
                appropriated under section 2103(a) for a fiscal 
                year, the Secretary shall reserve--
                          (i) \1/2\ of 1 percent for payments 
                        to the outlying areas, to be 
                        distributed among the outlying areas on 
                        the basis of their relative need, as 
                        determined by the Secretary, for 
                        activities authorized under this part 
                        relating to teacher quality, including 
                        professional development and teacher 
                        hiring; and
                          (ii) \1/2\ of 1 percent for payments 
                        to the Secretary of the Interior for 
                        activities described in clause (i) in 
                        schools operated or funded by the 
                        Bureau of Indian Affairs.
                  (B) Limitation.--In reserving an amount for 
                the purposes described in clauses (i) and (ii) 
                of subparagraph (A) for a fiscal year, the 
                Secretary shall not reserve more than the total 
                amount the outlying areas and the schools 
                operated or funded by the Bureau of Indian 
                Affairs received for fiscal year 2001 under--
                          (i) section 2202(b) of this Act (as 
                        in effect on the day before the date of 
                        enactment of the Better Education for 
                        Students and Teachers Act); 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).
          (2) State allotments.--
                  (A) Hold harmless.--
                          (i) In general.--Subject to 
                        subparagraph (B), from the total amount 
                        appropriated under section 2103(a) for 
                        any fiscal year and not reserved under 
                        paragraph (1), the Secretary shall 
                        allot to each of the 50 States, the 
                        District of Columbia, and the 
                        Commonwealth of Puerto Rico an amount 
                        equal to the total amount that such 
                        State received for fiscal year 2001 
                        under the authorities described in 
                        paragraph (1)(B).
                          (ii) Ratable reduction.--If the total 
                        amount appropriated under section 
                        2103(a) 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 the fiscal year, 
                        the Secretary shall ratably reduce such 
                        amounts for the fiscal year.
                  (B) Allotment of additional funds.--
                          (i) In general.--Subject to clause 
                        (ii), for any fiscal year for which the 
                        total amount appropriated under section 
                        2103(a) and not reserved under 
                        paragraph (1) exceeds the total amount 
                        made available to the 50 States, the 
                        District of Columbia, and the 
                        Commonwealth of Puerto Rico for fiscal 
                        year 2001 under the authorities 
                        described in paragraph (1)(B), the 
                        Secretary shall allot to each of those 
                        States the sum of--
                                  (I) an amount that bears the 
                                same relationship to 50 percent 
                                of the excess amount as the 
                                number of individuals age 5 
                                through 17 in the State, as 
                                determined by the Secretary on 
                                the basis of the most recent 
                                satisfactory data, bears to the 
                                number of those individuals in 
                                all such States, as so 
                                determined; and
                                  (II) an amount that bears the 
                                same relationship to 50 percent 
                                of the excess amount as the 
                                number of individuals age 5 
                                through 17 from families with 
                                incomes below the poverty line 
                                in the State, as determined by 
                                the Secretary on the basis of 
                                the most recent satisfactory 
                                data, bears to the number of 
                                those individuals in all such 
                                States, as so determined.
                          (ii) Exception.--No State receiving 
                        an allotment under clause (i) may 
                        receive less than \1/2\ of 1 percent of 
                        the total excess amount allotted under 
                        clause (i) for a fiscal year.
          (3) Reallotment.--If any State does not apply for an 
        allotment under this subsection for any fiscal year, 
        the Secretary shall reallot the amount of the allotment 
        to the remaining States in accordance with this 
        subsection.

SEC. 2112. STATE APPLICATIONS.

  (a) In General.--For a State to be eligible to receive a 
grant under this part, the State educational agency shall 
submit an application to the Secretary at such time, in such 
manner, and containing such information as the Secretary may 
reasonably require.
  (b) Contents.--Each application submitted under this section 
shall include the following:
          (1) A description of how the activities to be carried 
        out by the State educational agency under this subpart 
        will be based on a review of relevant research and an 
        explanation of why the activities are expected to 
        improve student performance and outcomes.
          (2) A description of how the State educational agency 
        will align activities assisted under this subpart with 
        State content and student performance standards and 
        State assessments.
          (3) A description of how the State educational agency 
        will ensure that a local educational agency receiving a 
        subgrant to carry out subpart 2 will comply with the 
        requirements of such subpart.
          (4) A description of how the State educational agency 
        will use funds made available under this part to 
        improve the quality of the State's teaching force and 
        the educational opportunities for students.
          (5) A description of how the State educational agency 
        will coordinate professional development activities 
        authorized under this part with professional 
        development activities provided under other Federal, 
        State, and local programs, including those authorized 
        under--
                  (A) title I, part C of this title, part A of 
                title III, and title IV; and
                  (B) where applicable, the Individuals with 
                Disabilities Education Act, the Carl D. Perkins 
                Vocational and Technical Education Act of 1998, 
                and title II of the Higher Education Act of 
                1965.
          (6) An assurance that the State educational agency 
        will consistently monitor the progress of each local 
        educational agency and school in the State in achieving 
        the purpose of this part and meeting the performance 
        objectives and measures described in section 2141.
  (c) Approval.--The Secretary shall approve a State 
application submitted to the Secretary under this section 
unless the Secretary makes a written determination, within 90 
days after receiving the application, that the application does 
not meet the requirements of this Act.

SEC. 2113. STATE USE OF FUNDS.

  (a) In General.--A State that receives a grant under section 
2111 shall--
          (1) reserve a portion of the funds made available 
        through the grant for State activities described in 
        subsection (b);
          (2) reserve 95 percent of the funds to make subgrants 
        to local educational agencies as described in subpart 
        2; and
          (3) reserve a portion of the funds to make subgrants 
        to local partnerships as described in subpart 3.
  (b) State Activities.--The State educational agency for a 
State that receives a grant under section 2111 shall use the 
funds reserved under subsection (a)(1) to carry out 1 or more 
of the following activities:
          (1) Reforming teacher certification (including 
        recertification) or licensing requirements to ensure 
        that--
                  (A) teachers have the necessary subject 
                matter knowledge and teaching skills in the 
                academic subjects that the teachers teach;
                  (B) the requirements are aligned with 
                challenging State content standards; and
                  (C) teachers have the subject matter 
                knowledge and teaching skills necessary to help 
                students meet challenging State student 
                performance standards.
          (2) Carrying out programs that provide support during 
        the initial teaching experience, such as programs that 
        provide mentoring, team teaching, reduced schedules, 
        and intensive professional development.
          (3) Carrying out programs that establish, expand, or 
        improve alternative routes for State certification of 
        teachers 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.
          (4) Supporting activities to encourage and support 
        teachers seeking national board certification from the 
        National Board for Professional Teaching Standards or 
        other recognized entities.
          (5) Developing and implementing effective mechanisms 
        to assist local educational agencies and schools in 
        effectively recruiting and retaining highly qualified 
        and effective teachers and principals.
          (6) Funding projects to promote reciprocity of 
        teacher certification or licensure between or among 
        States.
          (7) Testing new teachers for subject matter 
        knowledge, and testing the teachers for State 
        certification or licensing, consistent with title II of 
        the Higher Education Act of 1965.
          (8) Supporting activities that ensure that teachers 
        are able to use State content and student performance 
        standards and assessments to improve instructional 
        practices and improve student achievement and student 
        performance.
          (9) Establishing teacher compensation systems based 
        on merit and proven performance.
          (10) Reforming tenure systems.
  (c) Coordination.--A State that receives a grant to carry out 
this subpart and a grant under section 202 of the Higher 
Education Act of 1965 shall coordinate the activities carried 
out under this subpart and the activities carried out under 
that section 202.

           Subpart 2--Subgrants to Local Educational Agencies

SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.

  (a) In General.--A State that receives a grant under section 
2111 shall use the funds reserved under section 2113(a)(2) to 
make subgrants to eligible local educational agencies to carry 
out the activities specified in section 2123. Each subgrant 
shall consist of the allocation determined for a local 
educational agency under subsection (b).
  (b) Determination of Allocations.--From the total amount made 
available through the grant, the State shall allocate to each 
of the eligible local educational agencies the sum of--
          (1) an amount that bears the same relationship to 25 
        percent of the total amount as the number of 
        individuals age 5 through 17 in the geographic area 
        served by the agency, as determined by the Secretary on 
        the basis of the most recent satisfactory data, bears 
        to the number of those individuals in the geographic 
        areas served by all the local educational agencies in 
        the State, as so determined; and
          (2) an amount that bears the same relationship to 75 
        percent of the total amount as the number of 
        individuals age 5 through 17 from families with incomes 
        below the poverty line, in the geographic area served 
        by the agency, as determined by the Secretary on the 
        basis of the most recent satisfactory data, bears to 
        the number of those individuals in the geographic areas 
        served by all the local educational agencies in the 
        State, as so determined.

SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT.

  (a) In General.--To be eligible to receive a subgrant under 
this subpart, a local educational agency shall submit an 
application to the State educational agency at such time, in 
such manner, and containing such information as the State 
educational agency may reasonably require.
  (b) Contents.--Each application submitted under this section 
shall be based on the needs assessment required in subsection 
(c) and shall include the following:
          (1)(A) A description of the activities to be carried 
        out by the local educational agency under this subpart.
          (B) A description of how the activities will be based 
        on a review of relevant research and an explanation of 
        why the activities are expected to improve student 
        performance and outcomes.
          (2) A description of how the activities will have a 
        substantial, measurable, and positive impact on student 
        academic achievement and student performance and how 
        the activities will be used as part of a broader 
        strategy to eliminate the achievement gap that 
        separates low-income and minority students from other 
        students.
          (3) An assurance that the local educational agency 
        will target funds to schools served by the local 
        educational agency that--
                  (A) have the lowest proportions of highly 
                qualified teachers;
                  (B) are identified for school improvement 
                under section 1116(c); or
                  (C) are identified for school improvement in 
                accordance with other measures of school 
                quality as determined and documented by the 
                local educational agency.
          (4) A description of how the local educational agency 
        will coordinate professional development activities 
        authorized under this subpart with professional 
        development activities provided under other Federal, 
        State, and local programs, including those authorized 
        under--
                  (A) title I, part C of this title, part A of 
                title III, and title IV; and
                  (B) where applicable, the Individuals with 
                Disabilities Education Act, the Carl D. Perkins 
                Vocational and Technical Education Act of 1998, 
                and title II of the Higher Education Act of 
                1965.
          (5) A description of the evaluation plan that the 
        local educational agency will carry out pursuant to 
        section 2141.
          (6) A description of how the local educational agency 
        has collaborated with teachers, paraprofessionals, 
        principals, other relevant school personnel, and 
        parents in the preparation of the application.
          (7) A description of the results of the needs 
        assessment described in subsection (c).
          (8) A description of how the local educational agency 
        will address the ongoing professional development and 
        mentoring needs of teachers and administrators.
    (c) Needs Assessment.--
          (1) In general.--To be eligible to receive a subgrant 
        under this subpart, a local educational agency shall 
        conduct an assessment of local needs for professional 
        development and hiring, as identified by the local 
        educational agency and school staff.
          (2) Requirements.--Such needs assessment shall be 
        conducted with the involvement of teachers, including 
        teachers receiving assistance under part A of title I, 
        and shall take into account the activities that need to 
        be conducted in order to give teachers and, where 
        appropriate, administrators, the means, including 
        subject matter knowledge and teaching skills, to 
        provide students with the opportunity to meet 
        challenging State and local student performance 
        standards.

SEC. 2123. LOCAL USE OF FUNDS.

    (a) Special Rule.--
          (1) In general.--A local educational agency that 
        receives a subgrant under section 2121 may use the 
        amount described in paragraph (2), of the funds made 
        available through the subgrant, to carry out activities 
        described in section 306 of the Department of Education 
        Appropriations Act, 2001 (as enacted into law by 
        section 1(a)(1) of Public Law 106-554).
          (2) Amount.--The amount referred to in paragraph (1) 
        is the amount received by the agency under that section 
        306.
    (b) Local Use of Funds.--A local educational agency that 
receives a subgrant under section 2121 shall use the funds made 
available through the subgrant to carry out 1 or more of the 
following activities:
          (1) Providing professional development activities 
        that improve the knowledge of teachers concerning--
                  (A) 1 or more of the core academic subjects 
                that the teachers teach;
                  (B) effective instructional strategies, 
                methods, and skills for improving student 
                academic achievement and student performance; 
                and
                  (C) effective use of State content and 
                student performance standards and assessments 
                to improve instructional practices and improve 
                student achievement and student performance.
          (2) Mentoring.
          (3) Providing teachers and principals with 
        opportunities for professional development through 
        institutions of higher education.
          (4) Providing induction and support for teachers 
        during their first 3 years of teaching.
          (5) Recruiting (including recruiting through the use 
        of scholarships, signing bonuses, or other financial 
        incentives, as well as accelerated paraprofessional-to-
        teacher training programs and programs that attract 
        mid-career professionals from other professions), 
        hiring, and training regular and special education 
        teachers (which may include hiring special education 
        teachers to team-teach in classrooms that contain both 
        children with disabilities and nondisabled children, 
        and may include recruiting and hiring certified or 
        licensed teachers to reduce classsize), and teachers of 
        special needs children, who are highly qualified.
          (6) Carrying out programs and activities related to--
                  (A) reform of teacher tenure systems;
                  (B) provision of merit pay for teachers; and
                  (C) testing of elementary school and 
                secondary school teachers in the academic 
                subjects that the teachers teach.

             Subpart 3--Subgrants to Eligible Partnerships

SEC. 2131. SUBGRANTS.

  (a) In General.--The State agency for higher education for a 
State that receives a grant under section 2111, working in 
conjunction with the State educational agency (if such agencies 
are separate) shall use the funds reserved under section 
2113(a)(3) to make subgrants, on a competitive basis, to 
eligible partnerships to enable such partnerships to carry out 
the activities described in section 2133.
  (b) Distribution.--The State agency for higher education 
shall ensure that--
          (1) such subgrants are equitably distributed by 
        geographic area within a State; or
          (2) eligible partnerships in all geographic areas 
        within the State are served through the subgrants.
    (c) Special Rule.--No single participant in an eligible 
partnership may use more than 50 percent of the funds made 
available to the partnership under this section.

SEC. 2132. APPLICATIONS.

    To be eligible to receive a subgrant under this subpart, an 
eligible partnership shall submit an application to the State 
agency for higher education at such time, in such manner, and 
containing such information as the agency may require.

SEC. 2133. USE OF FUNDS.

    (a) In General.--An eligible partnership that receives a 
subgrant under section 2131 shall use the funds made available 
through the subgrant for--
          (1) professional development activities in core 
        academic subjects to ensure that teachers, 
        paraprofessionals, and, if appropriate, principals have 
        subject matter knowledge in the academic subjects that 
        the teachers teach; and
          (2) developing and providing assistance to local 
        educational agencies and individuals who are teachers, 
        paraprofessionals, or principals of schools served by 
        such agencies, for sustained, high-quality professional 
        development activities that--
                  (A) ensure that the individuals are able to 
                use State content standards, performance 
                standards, and assessments to improve 
                instructional practices and improve student 
                academic achievement and student performance; 
                and
                  (B) may include intensive programs designed 
                to prepare such individuals who will return to 
                a school to provide instruction related to the 
                professional development described in 
                subparagraph (A) to other such individuals 
                within such school.
    (b) Coordination.--An eligible partnership that receives a 
subgrant to carry out this subpart and a grant under section 
203 of the Higher Education Act of 1965 shall coordinate the 
activities carried out under this subpart and the activities 
carried out under that section 203.

SEC. 2134. DEFINITION.

    In this subpart, the term ``eligible partnership'' means an 
entity that--
          (1) shall include--
                  (A) a private or State institution of higher 
                education and the division of the institution 
                that prepares teachers;
                  (B) a school of arts and sciences; and
                  (C) a high need local educational agency; and
          (2) may include another local educational agency, a 
        public charter school, an elementary school or 
        secondary school, an educational service agency, a 
        nonprofit educational organization, another institution 
        of higher education, a school of arts and sciences 
        within such an institution, the division of such an 
        institution that prepares teachers, a nonprofit 
        cultural organization, an entity carrying out a 
        prekindergarten program, a teacher organization, or a 
        business.

                       Subpart 4--Accountability

SEC. 2141. EVALUATION PLAN FOR LOCAL EDUCATIONAL AGENCIES.

    Each local educational agency receiving funds under this 
part shall establish and include in the agency's application 
submitted under section 2122(b) an evaluation plan that 
requires evaluation of the agency and the schools served by the 
agency with respect to--
          (1) strong performance objectives and other measures 
        concerning--
                  (A)(i) increasing student academic 
                achievement and student performance for 
                allstudents as measured by the local 
                educational agency; and
                  (ii) increasing participation in sustained 
                professional development and mentoring;
                  (B) increasing teacher retention among 
                teachers in the first 3 years of their teaching 
                careers; and
                  (C) decreasing use of out-of-field teachers; 
                and
          (2) other measures of improved student academic 
        achievement and student performance, as determined by 
        the local educational agency.

SEC. 2142. SANCTIONS FOR LOCAL EDUCATIONAL AGENCIES.

  (a) Reports.--Each local educational agency receiving a 
subgrant under this part shall annually prepare and submit to 
the State educational agency a report describing the progress 
of the local educational agency and the schools served by the 
agency toward achieving the purpose of this part and meeting 
the performance objectives and measures described in section 
2141.
  (b) Technical Assistance.--If a State educational agency 
determines that a local educational agency in the State has 
failed to make substantial progress toward achieving the 
purpose and meeting the objectives and measures described in 
subsection (a) by the end of the third year for which the local 
educational agency receives funds under this part, the State 
educational agency shall provide technical assistance--
          (1) to the local educational agency; and
          (2) if applicable, to schools served by the local 
        educational agency that need assistance to achieve the 
        purpose and meet the objectives and measures.
  (c) Withholding of Funds.--If the State educational agency 
determines that the local educational agency has failed to make 
substantial progress toward achieving the purpose and meeting 
the objectives and measures described in subsection (a) by the 
end of the fifth year for which the local educational agency 
receives funds under this part, the State educational agency 
shall--
          (1) withhold the allocation described in section 
        2121(b) from the local educational agency for 2 fiscal 
        years; and
          (2) use the funds to carry out programs to assist the 
        local educational agency and schools served by the 
        local educational agency to achieve the purpose and 
        meet the objectives and measures.

                      Subpart 5--National Programs

SEC. 2151. NATIONAL PROGRAMS OF DEMONSTRATED EFFECTIVENESS.

  (a) In General.--The Secretary shall use funds made available 
under section 2103(b) to carry out each of the activities 
described in subsections (b) through (e).
  (b) School Leadership.--The Secretary shall award grants to 
entities that are State educational agencies, local educational 
agencies, institutions of higher education, or nonprofit 
educational organizations, and consortia of such entities, to 
enable such entities and consortia to recruit and train school 
leaders (including principals and assistant principals), 
provide mentorship for new school leaders, and provide ongoing 
professional development to develop or enhance the leadership 
skills of school leaders.
  (c) Advanced Certification or Advanced Credentialing.--
          (1) In general.--The Secretary shall support 
        activities to encourage and support teachers seeking 
        advanced certification or advanced credentialing 
        through high quality professional teacher enhancement 
        programs designed to improve teaching and learning, 
        including programs provided by the National Board for 
        Professional Teaching Standards.
          (2) Implementation.--In carrying out paragraph (1), 
        the Secretary shall make grants to the National Board 
        for Professional Teaching Standards, State educational 
        agencies, local educational agencies, or individuals, 
        to promote outreach, teacher recruitment, teacher 
        subsidy, or teacher support programs related to teacher 
        certification by the National Board for Professional 
        Teaching Standards.
  (d) Troops-to-Teachers Program.--
          (1) Purpose.--The purpose of this subsection is to 
        authorize a mechanism for the funding and 
        administration of the Troops-to-Teachers Program 
        established by the Troops-to-Teachers Program Act of 
        1999 (title XVII of the National Defense Authorization 
        Act for Fiscal Year 2000).
          (2) Transfer of funds for administration of 
        program.--To the extent that funds are made available 
        under this Act to the Secretary for the Troops-to-
        Teachers Program, the Secretary shall use the funds to 
        enter into a contract with the Defense Activity for 
        Non-Traditional Education Support of the Department of 
        Defense. The Defense Activity shall use the amounts 
        made available through the contract to perform the 
        actual administration of the Troops-to-Teachers 
        Program, including theselection of participants in the 
        program under section 1704 of the Troops-to-Teachers 
        Program Act of 1999. The Secretary may retain a portion 
        of the funds to identify local educational agencies 
        with concentrations of children from low-income 
        families or with teacher shortages and States with 
        alternative certification or licensure requirements, as 
        required by section 1702 of such Act.
  (e) Transition to Teaching.--The Secretary shall provide 
assistance for activities to support the development and 
implementation of national or regional programs to--
          (1) recruit, prepare, place, and support mid-career 
        professionals who have knowledge and experience that 
        will help the professionals become highly qualified 
        teachers, through alternative routes to certification, 
        for high need local educational agencies; and
          (2) help retain the professionals as classroom 
        teachers serving the local educational agencies for 
        more than 3 years.
  (f) National Teacher Recruitment Campaign.--
          (1) Grant.--The Secretary shall award a grant, on a 
        competitive basis, to a single national coalition of 
        teacher and media organizations, including the National 
        Teacher Recruitment Clearinghouse, to enable such 
        organizations to jointly conduct a national public 
        service campaign as described in paragraph (2).
          (2) Use of funds.--A coalition that receives a grant 
        under paragraph (1) shall use amounts made available 
        under the grant to conduct a national public service 
        campaign concerning the resources for and routes to 
        entering the field of teaching. In conducting the 
        campaign, the coalition shall focus on providing 
        information both to a national audience and in specific 
        media markets, and shall specifically expand on, 
        promote, and link the coalition's outreach efforts to, 
        the information referral activities and resources of 
        the National Teacher Recruitment Clearinghouse.
          (3) Application.--To be eligible to receive a grant 
        under this subsection, a coalition shall prepare and 
        submit to the Secretary an application at such time, in 
        such manner, and containing such information as the 
        Secretary may require.
          (4) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection $3,000,0000 for fiscal year 2002 and each of 
        the 6 succeeding fiscal years.

              PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

SEC. 2201. PURPOSE.

  ``The purpose of this part is to improve the performance of 
students in the areas of mathematics and science by encouraging 
States, institutions of higher education, elementary schools, 
and secondary schools to participate in programs that--
          (1) upgrade the status and stature of mathematics and 
        science teaching by encouraging institutions of higher 
        education to assume greater responsibility for 
        improving mathematics and science teacher education 
        through the establishment of a comprehensive, 
        integrated system of recruiting and advising such 
        teachers;
          (2) focus on education of mathematics and science 
        teachers as a career-long process that should 
        continuously stimulate teachers' intellectual growth 
        and upgrade teachers' knowledge and skills;
          (3) bring mathematics and science teachers in 
        elementary schools and secondary schools together with 
        scientists, mathematicians, and engineers to increase 
        the subject matter knowledge and improve the teaching 
        skills of teachers through the use of more 
        sophisticated laboratory equipment and space, computing 
        facilities, libraries, and other resources that 
        institutions of higher education are better able to 
        provide than the schools; and
          (4) develop more rigorous mathematics and science 
        curricula that are aligned with State and local 
        standards and with the standards expected for 
        postsecondary study in mathematics and science, 
        respectively.

SEC. 2202. DEFINITIONS.

  In this part:
          (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 an institution of higher 
                        education; and
                          (iii) a local educational agency; and
                  (B) may include--
                          (i) another mathematics, science, or 
                        teacher training department of an 
                        institution of higher education;
                          (ii) another local educational 
                        agency, or an elementary school or 
                        secondary school;
                          (iii) a business; or
                          (iv) a nonprofit organization of 
                        demonstrated effectiveness, including a 
                        museum.
          (2) High need local educational agency.--The term 
        ``high need local educational agency'' has the meaning 
        given the term in section 201(b) of the Higher 
        Education Act of 1965.
          (3) Summer workshop or institute.--The term ``summer 
        workshop or institute'' means a workshop or institute, 
        conducted during the summer, that--
                  (A) is conducted during a period of not less 
                than 2 weeks;
                  (B) provides for a program that provides 
                direct interaction between students and 
                faculty; and
                  (C) provides for followup training during the 
                academic year that--
                          (i) except as provided in clause (ii) 
                        or (iii), shall be conducted in the 
                        classroomfor a period of not less than 
                        3 days, which may or may not be 
                        consecutive;
                          (ii) if the program described in 
                        subparagraph (B) is for a period of not 
                        more than 2 weeks, shall be conducted 
                        for a period of more than 3 days; or
                          (iii) if the program is for teachers 
                        in rural school districts, may be 
                        conducted through distance education.

                   Subpart 1--Grants to Partnerships

SEC. 2211. GRANTS AUTHORIZED.

  (a) In General.--The Secretary is authorized to award grants, 
on a competitive basis, to eligible partnerships to enable the 
eligible partnerships to pay the Federal share of the costs of 
carrying out the authorized activities described in section 
2213.
  (b) Duration.--The Secretary shall award grants under this 
section for a period of 5 years.
  (c) Federal Share.--
          (1) In general.--The Federal share of the costs of 
        the activities assisted under this subpart shall be--
                  (A) 75 percent of the costs for the first 
                year an eligible partnership receives a grant 
                payment under this subpart;
                  (B) 65 percent of the costs for the second 
                such year; and
                  (C) 50 percent of the costs for each of the 
                third, fourth, and fifth such years.
          (2) Non-federal share.--The non-Federal share of the 
        costs may be provided in cash or in kind, fairly 
        evaluated.
  (d) Priority.--In awarding grants under this subpart the 
Secretary shall give priority to partnerships that include high 
need local educational agencies.

SEC. 2212. APPLICATION REQUIREMENTS.

  (a) In General.--Each eligible partnership desiring a grant 
under this subpart shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such 
information as the Secretary may require.
  (b) Contents.--Each such application shall include--
          (1) an assessment of the teacher quality and 
        professional development needs 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 and local standards 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 
        performance and to strengthen the quality of 
        mathematics and science instruction; and
          (4) a description of--
                  (A) how the eligible partnership will carry 
                out the authorized activities described in 
                section 2213; and
                  (B) the eligible partnership's evaluation and 
                accountability plan described in section 2214.

SEC. 2213. AUTHORIZED ACTIVITIES.

  An eligible partnership shall use the grant funds provided 
under this subpart for 1 or more of the following activities 
related to elementary schools or secondary schools:
          (1) Developing or redesigning more rigorous 
        mathematics and science curricula that are aligned with 
        State and local standards and with the standards 
        expected for postsecondary study in mathematics and 
        science, respectively.
          (2) Creating opportunities for enhanced and ongoing 
        professional development that improves the subject 
        matter knowledge of mathematics and science teachers.
          (3) Recruiting mathematics and science majors to 
        teaching.
          (4) Promoting strong teaching skills for mathematics 
        and science teachers and teacher educators, including 
        integrating reliable scientifically based research 
        teaching methods into the curriculum.
          (5) Establishing mathematics and science summer 
        workshops or institutes (including followup training) 
        for teachers, using curricula that are experiment-
        oriented, content-based, and grounded in research that 
        is current as of the date of the workshop or institute 
        involved.
          (6) Establishing distance learning programs for 
        mathematics and science teachers using curricula that 
        are experiment-oriented, content-based, and grounded in 
        research that is current as of the date of the program 
        involved.
          (7) Designing programs to prepare a teacher at a 
        school to provide professional development to other 
        teachers at the school and to assist novice teachers at 
        such school, including (if applicable) amechanism to 
        integrate experiences from a summer workshop or 
        institute.
          (8) Designing programs to bring teachers into contact 
        with working scientists.

SEC. 2214. EVALUATION AND ACCOUNTABILITY PLAN.

  Each eligible partnership receiving a grant under this 
subpart shall develop an evaluation and accountability plan for 
activities assisted under this subpart that includes strong 
performance objectives. The plan shall include objectives and 
measures for--
          (1) improved student performance on State mathematics 
        and science assessments or the Third International Math 
        and Science Study assessment;
          (2) increased participation by students in advanced 
        courses in mathematics and science;
          (3) increased percentages of secondary school classes 
        in mathematics and science taught by teachers with 
        academic majors in mathematics and science, 
        respectively; and
          (4) increased numbers of mathematics and science 
        teachers who participate in content-based professional 
        development activities.

SEC. 2215. REPORT; REVOCATION OF GRANT.

  (a) Report.--Each eligible partnership receiving a grant 
under this subpart annually shall report to the Secretary 
regarding the eligible partnership's progress in meeting the 
performance objectives described in section 2214.
  (b) Revocation.--If the Secretary determines that an eligible 
partnership is not making substantial progress in meeting the 
performance objectives described in section 2214 by the end of 
the third year of a grant under this subpart, the grant 
payments shall not be made for the fourth and fifth year of the 
grant.

    Subpart 2--Eisenhower Clearinghouse for Mathematics and Science 
                               Education

SEC. 2221. CLEARINGHOUSE.

  (a) Grant or Contract.--
          (1) In general.--The Secretary, in consultation with 
        the Director of the National Science Foundation, may 
        award a grant or contract to an entity to continue the 
        operation of the Eisenhower National Clearinghouse for 
        Mathematics and Science Education (referred to in this 
        section as the `Clearinghouse'). The Secretary shall 
        award the grant or contract on a competitive basis, on 
        the basis of merit.
          (2) Duration.--The grant or contract awarded under 
        paragraph (1) shall be awarded for a period of 5 years.
  (b) Clearinghouse.--
          (1) Use of funds.--An entity that receives a grant or 
        contract under subsection (a) shall use the funds made 
        available through the grant or contract to--
                  (A) maintain a permanent repository of 
                mathematics and science education instructional 
                materials and programs for elementary schools 
                and secondary schools, including middle 
                schools;
                  (B) compile information on all mathematics 
                and science education programs administered by 
                each Federal agency or department;
                  (C) disseminate instructional materials, 
                programs, and information to the public and 
                dissemination networks, including information 
                on model engineering, science, technology, and 
                mathematics teacher mentoring programs;
                  (D) coordinate activities with entities 
                operating identifiable databases containing 
                mathematics and science instructional materials 
                and programs, including Federal, non-Federal, 
                and, where feasible, international, databases;
                  (E) gather qualitative and evaluative data on 
                submissions to the Clearinghouse;
                  (F)(i) solicit and gather (in consultation 
                with the Department, national teacher 
                associations, professional associations, and 
                other reviewers and developers of instructional 
                materials and programs) qualitative and 
                evaluative materials and programs, including 
                full text and graphics, for the Clearinghouse;
                  (ii) review the evaluation of the materials 
                and programs, and rank the effectiveness of the 
                materials and programs on the basis of the 
                evaluations, except that nothing in this 
                subparagraph shall be construed to permit the 
                Clearinghouse to directly conduct an evaluation 
                of the materials or programs; and
                  (iii) distribute to teachers, in an easily 
                accessible manner, the results of the reviews 
                (in a short, standardized, and electronic 
                format that contains electronic links to an 
                electronic version of the qualitative and 
                evaluative materials and programs described in 
                clause (i)), excerpts of the materials and 
                programs, links to Internet-based sites, and 
                information regarding on-line communities of 
                persons who use the materials and programs; and
                  (G) develop and establish an Internet-based 
                site offering a search mechanism to assist site 
                visitors in identifying information available 
                through the Clearinghouse on engineering, 
                science, technology, and mathematics education 
                instructional materials and programs, including 
                electronic links to information on classroom 
                demonstrations and experiments, to teachers who 
                have used materials or participated in 
                programs, to vendors, to curricula, and to 
                textbooks.
          (2) Submission to clearinghouse.--Each Federal agency 
        or department that develops mathematics or science 
        education instructional materials or programs, 
        including the National Science Foundation and the 
        Department, shall submit to the Clearinghouse copies of 
        such materials or programs.
          (3) Steering committee.--The Secretary may appoint a 
        steering committee to recommend policies and activities 
        for the Clearinghouse.
          (4) Application of copyright laws.--Nothing in this 
        section shall be construed to allow the use or copying, 
        in any medium, of any material collected by the 
        Clearinghouse that is protected under the copyright 
        laws of the United States unless the Clearinghouse 
        obtains the permission of the owner of the copyright. 
        The Clearinghouse, in carrying out this subsection, 
        shall ensure compliance with title 17, United States 
        Code.
  (c) Application.--
          (1) In general.--To be eligible to receive a grant or 
        contract under subsection (a) to operate the 
        Clearinghouse, an entity shall submit an application to 
        the Secretary at such time, in such manner, and 
        accompanied by such information as the Secretary may 
        reasonably require.
          (2) Peer review.--The Secretary shall establish a 
        peer review process to review the applications and 
        select the recipient of the award under subsection (a).
  (d) Dissemination of Information.--The Secretary shall 
disseminate information concerning the grant or contract 
awarded under this section to State educational agencies, local 
educational agencies, and institutions of higher education. The 
information disseminated shall include examples of exemplary 
national programs in mathematics and science instruction and 
information on necessary technical assistance for the 
establishment of similar programs.
  (e) Report.--Not later than 2 years after the date of 
enactment of the Better Education for Students and Teachers 
Act, the National Academy of Sciences, in conjunction with 
appropriate related associations and organizations, shall--
          (1) conduct a study on the Clearinghouse to evaluate 
        the effectiveness of the Clearinghouse in conducting 
        the activities described in subsection (b)(1); and
          (2) submit to Congress a report on the results of the 
        study, including any recommendations of the Academy 
        regarding the Clearinghouse.

       Subpart 3--Preparing Tomorrow's Teachers To Use Technology

SEC. 2231. PURPOSE; PROGRAM AUTHORITY.

  (a) Purpose.--It is the purpose of this subpart to assist 
consortia of public and private entities in carrying out 
programs that prepare prospective teachers to use advanced 
technology to foster learning environments conducive to 
preparing all students to meet challenging State and local 
content and student performance standards.
  (b) Program Authority.--
          (1) In general.--The Secretary, acting through the 
        Director of the Office of Educational Technology, is 
        authorized to award grants, contracts, or cooperative 
        agreements on a competitive basis to eligible 
        applicants in order to pay for the Federal share of the 
        cost of assisting applicants in carrying out projects 
        to develop or redesign teacher preparation programs to 
        enable prospective teachers to use advanced technology 
        effectively in their classrooms.
          (2) Period of awards.--The Secretary may award 
        grants, contracts, or cooperative agreements under this 
        subpart for a period of not more than 5 years.

SEC. 2232. ELIGIBILITY.

    (a) Eligible Applicants.--In order to receive an award 
under this subpart, an applicant shall be a consortium that 
includes--
          (1) at least 1 institution of higher education that 
        offers a baccalaureate degree and prepares teachers for 
        their initial entry into teaching;
          (2) at least 1 State educational agency or local 
        educational agency; and
          (3) 1 or more entities consisting of--
                  (A) an institution of higher education (other 
                than the institution described in paragraph 
                (1));
                  (B) a school or department of education at an 
                institution of higher education;
                  (C) a school or college of arts and sciences 
                at an institution of higher education;
                  (D) a professional association, foundation, 
                museum, library, for-profit business, public or 
                private nonprofit organization, community-based 
                organization, or other entity, with the 
                capacity to contribute to the technology-
                related reform of teacher preparation programs.
    (b) Application Requirements.--In order to receive an award 
under this subpart, an eligible applicant shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. Such 
application shall include--
          (1) a description of the proposed project, including 
        how the project would ensure that individuals 
        participating in the project would be prepared to use 
        advanced technology to create learning environments 
        conducive to preparing all students, including girls 
        and students who have economic and educational 
        disadvantages, to meet challenging State and local 
        content and student performance standards;
          (2) a demonstration of--
                  (A) the commitment, including the financial 
                commitment, of each of the members of the 
                consortium for the proposed project; and
                  (B) the active support of the leadership of 
                each organization that is a member of the 
                consortium for the proposed project;
          (3) a description of how each member of the 
        consortium will be included in project activities;
          (4) a description of how the proposed project will be 
        continued after Federal funds are no longer awarded 
        under this subpart; and
          (5) a plan for the evaluation of the project, which 
        shall include benchmarks to monitor progress toward 
        specific project objectives.
    (c) Matching Requirements.--
          (1) In general.--The Federal share of the cost of any 
        project funded under this subpart shall not exceed 50 
        percent. Except as provided in paragraph (2), the non-
        Federal share of the cost of such project may be 
        provided in cash or in kind, fairly evaluated, 
        including services.
          (2) Acquisition of equipment.--Not more than 10 
        percent of the funds awarded for a project under this 
        subpart may be used to acquire equipment, networking 
        capabilities, or infrastructure, and the non-Federal 
        share of the cost of any such acquisition shall be 
        provided in cash.

SEC. 2233. USE OF FUNDS.

    (a) Required Uses.--A recipient of an award under this 
subpart shall use funds made available under this subpart for--
          (1) a project that creates programs that enable 
        prospective teachers to use advanced technology to 
        create learning environments conducive to preparing all 
        students, including girls and students who have 
        economic and educational disadvantages, to meet 
        challenging State and local content and student 
        performance standards; and
          (2) evaluating the effectiveness of the project.
    (b) Permissible Uses.--The recipient may use funds made 
available under this subpart for activities, described in the 
application submitted by the recipient under this subpart, that 
carry out the purpose of this subpart, such as--
          (1) developing and implementing high-quality teacher 
        preparation programs that enable educators to--
                  (A) learn the full range of resources that 
                can be accessed through the use of technology;
                  (B) integrate a variety of technologies into 
                the classroom in order to expand students' 
                knowledge;
                  (C) evaluate educational technologies and 
                their potential for use in instruction; and
                  (D) help students develop their technical 
                skills and digital learning environments;
          (2) developing alternative teacher development paths 
        that provide elementary schools and secondary schools 
        with well-prepared, technology-proficient educators;
          (3) developing performance-based standards and 
        assessments aligned with the standards to measure the 
        capacity of prospective teachers to use technology 
        effectively in their classrooms;
          (4) providing technical assistance to entities 
        carrying out other teacher preparation programs;
          (5) developing and disseminating resources and 
        information in order to assist institutions of higher 
        education to prepare teachers to use technology 
        effectively in their classrooms; and
          (6) subject to section 2232(c)(2), acquiring 
        equipment, networking capabilities, and infrastructure 
        to carry out the project.

                     Subpart 4--General Provisions

SEC. 2241. CONSULTATION WITH NATIONAL SCIENCE FOUNDATION.

  In carrying out the activities authorized by this part, the 
Secretary shall consult and coordinate activities with the 
Director of the National Science Foundation, particularly with 
respect to the appropriate roles for the Department and the 
Foundation in the conduct of summer workshops or institutes 
provided by the eligible partnerships to improve mathematics 
and science teaching in elementary schools and secondary 
schools.

SEC. 2242. AUTHORIZATION OF APPROPRIATIONS.

  (a) Grants.--There are authorized to be appropriated to carry 
out subpart 1 $500,000,000 for fiscal year 2002 and such sums 
as may be necessary for each of the 6 succeeding fiscal years.
  (b) Clearinghouse.--There are authorized to be appropriated 
to carry out subpart 2 $5,000,000 for fiscal year 2002 and such 
sums as may be necessary for each of the 6 succeeding fiscal 
years.
  (c) Technology Preparation.--There are authorized to be 
appropriated to carry out subpart 3 $150,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.

   PART C--STATE AND LOCAL PROGRAMS FOR TECHNOLOGY USE IN CLASSROOMS

SEC. 2301. PURPOSE; GOAL.

  (a) Purpose.--The purpose of this part is to support a 
comprehensive system to effectively use technology in 
elementary and secondary schools to improve student academic 
achievement and performance.
  (b) Goal.--A goal of this part shall also be to assist every 
student in crossing the digital divide by ensuring that every 
child is technologically literate by the time the child 
finishes the 8th grade, regardless of the child's race, 
ethnicity, gender, income, geography, or disability.

SEC. 2302. DEFINITIONS.

  In this part:
          (1) Adult education.--The term ``adult education'' 
        has the meaning given the term in section 312(2) of the 
        Adult Education Act (20 U.S.C. 1201a(2)).
          (2) All students.--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, and academically talented 
        students.
          (3) Child in poverty.--The term ``child in poverty'' 
        means a child from a family with a family income below 
        the poverty line (as defined in section 2102).
          (4) Information infrastructure.--The term 
        ``information infrastructure'' means a network of 
        communication systems designed to exchange information 
        among all citizens and residents of the United States.
          (5) Interoperable; interoperability.--The terms 
        ``interoperable'' and ``interoperability'' mean the 
        ability to exchange data easily with, and connect to, 
        other hardware and software in order to provide the 
        greatest accessibility for all students and other 
        users.
          (6) Public telecommunications entity.--The term 
        ``public telecommunications entity'' has the meaning 
        given the term in section 397(12) of the Communications 
        Act of 1934 (47 U.S.C. 397(12)).
          (7) State educational agency.--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.
          (8) State library administrative agency.--The term 
        ``State library administrative agency'' has the meaning 
        given the term in section 213(5) of the Library 
        Services and Technology Act (20 U.S.C. 9122(5)).

SEC. 2303. ALLOTMENT AND REALLOTMENT.

  (a) Limitation.--From funds appropriated under this part, the 
Secretary shall first reserve such sums as may be necessary for 
grants awarded under section 3136 prior to the date of 
enactment of the Better Education for Students and Teacher Act.
  (b) Allotment.--
          (1) In general.--Except as provided in paragraph (2), 
        each State educational agency shall be eligible to 
        receive a grant under this part for a fiscal year in an 
        amount which bears the same relationship to the amount 
        made available under section 2310 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 \1/2\ of 1 
        percent of the amount made available under section 2310 
        for such year.
  (c) Reallotment of Unused Funds.--
          (1) In general.--The amount of any State educational 
        agency's allotment under subsection (b) for any fiscal 
        year which the State determines will not be required 
        for such fiscal year to carry out this part 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 tosuch State educational 
        agencies under subsection (b) 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 State 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 agency's 
        allotment under subsection (b) for such year.

SEC. 2304. TECHNOLOGY GRANTS.

  (a) Grants to States.--
          (1) In general.--From amounts made available under 
        section 2303, the Secretary, through the Office of 
        Educational Technology, shall award grants to State 
        educational agencies having applications approved under 
        section 2305.
          (2) Use of grants.--
                  (A) Award to agencies.--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 2306.
                  (B) Sufficiency.--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.
                  (C) Priority.--In awarding the grants, each 
                State educational agency shall give priority to 
                the local educational agencies serving the 
                school districts that have the highest number 
                or percentage of children in poverty.
                  (D) Distribution.--In awarding the grants, 
                each State educational agency shall assure an 
                equitable distribution of assistance under this 
                part among urban and rural areas of the State, 
                according to the demonstrated need of the local 
                educational agencies serving the areas.
  (b) Technical Assistance.--Each State educational agency 
receiving a grant under subsection (a) 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 
                2307; and
          (2) offer such technical assistance to such local 
        educational agencies.

SEC. 2305. STATE APPLICATION.

  To receive a grant under this part, each State educational 
agency shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as 
the Secretary may reasonably require, including a systemic 
statewide educational technology plan that--
          (1) outlines the long-term strategies for improving 
        student performance and student academic achievement 
        through the effective use of technology in classrooms 
        throughout the State;
          (2) 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
          (3) 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 improve student academic 
        achievement and student performance.

SEC. 2306. LOCAL USES OF FUNDS.

  (a) In General.--Each local educational agency, to the extent 
possible, shall use the funds made available under section 
2304(a)(2) for--
          (1) developing, adapting, or expanding existing and 
        new applications of technology to support the school 
        reform effort to improve student academic achievement 
        and student performance;
          (2) providing ongoing professional development in the 
        integration of quality educational technologies into 
        school curriculum;
          (3) acquiring connectivity linkages, resources, and 
        services, including the acquisition of hardwareand 
        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 
        academic achievement and student performance;
          (4) acquiring connectivity with wide area networks 
        for purposes of accessing information and educational 
        programming sources, particularly with institutions of 
        higher education and public libraries;
          (5) providing educational services for adults and 
        families; and
          (6) repairing and maintaining school technology 
        equipment.
    (b) Special Rule.--A local educational agency receiving a 
grant under this part shall use at least 30 percent of 
allocated funds for professional development.

SEC. 2307. LOCAL APPLICATION.

    (a) Application.--Each local educational agency desiring 
assistance from a State educational agency under section 
2304(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 
include an updated version of a strategic, long-range plan (3 
to 5 years) that includes--
          (1) a description of how the activities to be carried 
        out by the local educational agency under this part 
        will be based on a review of relevant research and an 
        explanation of why the activities are expected to 
        improve student achievement;
          (2) an explanation of how the acquired technologies 
        will be integrated into the curriculum to help the 
        local educational agency improve student academic 
        achievement, student performance, and teaching;
          (3) 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;
          (4) an explanation of how programs will be developed 
        in collaboration with existing adult literacy service 
        providers to maximize the use of such technologies;
          (5) 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 effective use of technology in the 
        classroom or library media center, including a list of 
        those entities that will partner with the local 
        educational agency in providing ongoing sustained 
        professional development;
          (6) 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 part;
          (7) the projected cost of technologies to be acquired 
        and related expenses needed to implement the plan;
          (8) a description of how the local educational agency 
        will coordinate the technology provided pursuant to 
        this part with other grant funds available for 
        technology from other Federal, State, and local 
        sources;
          (9) a description of a process for the ongoing 
        evaluation of how technologies acquired under this part 
        will be integrated into the school curriculum; and will 
        affect student academic achievement and student 
        performance as related to challenging State content 
        standards and State student performance standards in 
        all subjects; and
          (10) a description of the evaluation plan that the 
        local educational agency will carry out pursuant to 
        section 2308(a).
    (b) 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.
    (c) Coordination of Application Requirements.--If a local 
educational agency submitting an application for assistance 
under this section has developed a comprehensive education 
improvement plan, the State educational agency may approve such 
plan, or a component of such plan if the State educational 
agency determines that such approval would further the purposes 
of this part.

SEC. 2308. ACCOUNTABILITY.

    (a) Evaluation Plan.--Each local educational agency 
receiving funds under this part shall establish and include in 
the agency's application submitted under section 2307 an 
evaluation plan that requires evaluation of the agency and the 
schools served by the agency with respect to strong performance 
objectives and other measures concerning--
          (1) increased professional development in the 
        effective use of technology in educating students with 
        the goal of improving student academic achievement and 
        student performance;
          (2) increased access to technology in the classroom, 
        especially in low-income schools; and
          (3) other indicators reflecting increased student 
        academic achievement or student performance.
    (b) Report.--Each local educational agency receiving a 
grant under this part shall annually prepare and submit to the 
State educational agency a report regarding the progress of the 
local educational agency and the schools served by the local 
educational agency toward achieving the purposes of this part 
and meeting the performance objectives and measures described 
in this section.
    (c) Sanction.--If after 3 years, the local educational 
agency does not show measurable improvements in all of the 
areas, the local educational agency shall not receive funds for 
the remaining grant years.
    (d) Assistance.--The State educational agency shall provide 
technical assistance to the local educational agency to assist 
them in meeting the performance objectives and measures 
described in this section.

SEC. 2309. NATIONAL EDUCATION TECHNOLOGY PLAN.

    (a) In General.--Not later than 12 months after the date of 
enactment of this section, the Secretary shall prepare the 
national long-range plan that supports the overall national 
technology policy. The Secretary shall update such plan 
periodically when appropriate.
    (b) Consultation.--In preparing the plan described in 
subsection (a), the Secretary shall consult with other Federal 
departments or agencies, State and local education 
practitioners, and policymakers, including teachers, 
principals, and superintendents, 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 or the Technology Challenge Fund program, and 
providers of technology services and products.
    (c) Submission; Publication.--Upon completion of the plan 
described in subsection (a), the Secretary shall--
          (1) submit such plan to the President and to the 
        appropriate committees of Congress; and
          (2) publish such plan in a form that is readily 
        accessible to the public, including on the Internet.
    (d) Content of the Plan.--The plan described in subsection 
(a) shall describe the following:
          (1) Effective use.--The plan shall describe the 
        manner in which the Secretary will encourage the 
        effective use of technology to provide all students the 
        opportunity to achieve challenging State academic 
        content standards and challenging State student 
        performance standards, especially through programs 
        administered by the Department.
          (2) Joint activities.--The plan shall describe joint 
        activities in support of the overall national 
        technology policy to be carried out 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) Collaboration.--The plan shall describe the 
        manner in which the Secretary will work with educators, 
        State and local educational agencies, and appropriate 
        representatives of the private sector, including the 
        Universal Service Administrative Company, to facilitate 
        the effective use of technology in education.
          (4) Promoting access.--The plan shall describe the 
        manner in which the Secretary will promote--
                  (A) higher academic achievement and 
                performance 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 improving educational opportunities;
                  (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) Guidelines.--The plan shall describe the manner 
        in which 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 improving educational opportunities.
          (6) Exchange.--The plan shall describe the manner in 
        which 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 improving educational 
        opportunities.
          (7) Goals.--The plan shall describe the Secretary's 
        long-range measurable goals and objectives relating to 
        the purposes of this part.

SEC. 2310. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated to 
carry out this part $1,000,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of the 6 succeeding 
fiscal years.
  (b) Limitation.--Not more than 5 percent of the funds made 
available to a recipient under this part for any fiscal year 
may be used by such recipient for administrative costs or 
technical assistance.

        PART D--PORTABILITY OF TEACHER PENSIONS AND CREDENTIALS

SEC. 2401. DEFINITION.

  In this part, the term ``pension'' means a pension provided 
under an employee pension benefit plan, as defined in section 
3(2) of the Employee Retirement Income Security Act of 1974.

SEC. 2402. NATIONAL PANEL ON PORTABILITY OF TEACHER PENSIONS AND 
                    CREDENTIALS.

  (a) Establishment.--There is established a panel to be known 
as the National Panel on Portability of Teacher Pensions and 
Credentials (referred to in this section as the ``panel'').
  (b) Membership.--The panel shall be composed of members 
appointed by the Secretary. The Secretary shall appoint the 
members from among practitioners and experts with experience 
relating to teacher pensions and credentials, such as pension 
managers, teachers, members of teacher certification or 
licensing bodies, faculty of institutions of higher education 
that prepare teachers, and State policymakers with such 
experience.
  (c) Period of Appointment; Vacancies.--Members shall be 
appointed for the life of the panel. Any vacancy in the panel 
shall not affect the powers of the panel, but shall be filled 
in the same manner as the original appointment.
  (d) Duties.--
          (1) Study.--The panel shall study various options for 
        increasing the reciprocity of recognition of teacher 
        credentials, and the portability of teacher pensions, 
        between States.
          (2) Report.--Not later than 1 year after the date on 
        which all members of the panel have been appointed, the 
        panel shall submit to the Secretary and to the 
        appropriate committees of Congress a report containing 
        the results of the study.
  (e) Powers.--
          (1) Hearings.--The panel may hold such hearings, sit 
        and act at such times and places, take such testimony, 
        and receive such evidence as the panel considers 
        advisable to carry out the objectives of this section.
          (2) Information from federal agencies.--The panel may 
        secure directly from any Federal department or agency 
        such information as the panel considers necessary to 
        carry out the provisions of this section. Upon request 
        of a majority of the members of the panel, the head of 
        such department or agency shall furnish such 
        information to the panel.
          (3) Postal services.--The panel may use the United 
        States mails in the same manner and under the same 
        conditions as other departments and agencies of the 
        Federal Government.
  (f) Personnel.--
          (1) Travel expenses.--The members of the panel shall 
        not receive compensation for the performance of 
        services for the panel, but shall be allowed travel 
        expenses, including per diem in lieu of subsistence, at 
        rates authorized for employees of agencies under 
        subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of 
        business in the performance of services for the panel. 
        Notwithstanding section 1342 of title 31, United States 
        Code, the Secretary may accept the voluntary and 
        uncompensated services of members of the panel.
          (2) Detail of government employees.--Any Federal 
        Government employee may be detailed to the panel 
        without reimbursement, and such detail shall be without 
        interruption or loss of civil service status or 
        privilege.
  (g) Permanent Committee.--Section 14 of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the panel.
  (h) Authorization of Appropriations.--
          (1) In general.--There are authorized to be 
        appropriated to carry out this section such sums as may 
        be necessary for fiscal year 2002.
          (2) Availability.--Any sums appropriated under the 
        authorization contained in this subsection shall remain 
        available, without fiscal year limitation, until 
        expended.

                  [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 
        Educational 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(b) 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 sumsas 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 
        to 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) development of model strategies to promote 
        gender equity concerning assess 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 assistin 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 design 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) 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. 3302. 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 
containingor 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 
        levels;
          [(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 now 
        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 auhtorized--
          [(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 televisions 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 programs 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 inserviceprofessional 
                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 purposes 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.]

  TITLE III--BILINGUAL EDUCATION, LANGUAGE ENHANCEMENT, AND LANGUAGE 
                          ACQUISITION PROGRAMS

                      PART A--BILINGUAL EDUCATION

SEC. 3001. SHORT TITLE.

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

SEC. 3002. PURPOSE.

    The purpose of this part is to help ensure that limited 
English proficient students master English and 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) promoting systemic improvement and reform of, and 
        developing accountability systems for, educational 
        programs serving limited English proficient students;
          (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. 3003. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--For the purpose of carrying out this part, 
there are authorized to be appropriated $300,000,000 for the 
fiscal year 2002 and such sums as may be necessary for each of 
the 6 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. 3004. 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. 3005. 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' 
includes public institutions or agencies whose mission is the 
preservation and maintenance of native languages.

    Subpart 1--Bilingual Education Capacity and Demonstration Grants

SEC. 3101. 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 
3102 and 3103 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. 3102. PROGRAM ENHANCEMENT PROJECTS.

    (a) Purpose.--The purpose of this section is to--
          (1) provide grants to eligible entities to provide 
        innovative, locally designed, high quality instruction 
        to children and youth of limited English proficiency;
          (2) help children and youth develop proficiency in 
        the English language by expanding or strengthening 
        instructional programs; and
          (3) help children and youth attain the standards 
        established under section 1111(b).
    (b) Program Authorized.--
          (1) Authority.--
                  (A) In general.--The Secretary is authorized 
                to award grants to eligible entities having 
                applications approved under section 3104 to 
                enable such entities to carry out activities 
                described in paragraph (2).
                  (B) Period.--Each grant under this section 
                shall be awarded for a period of 3 years.
          (2) Authorized activities.--
                  (A) Required activities.--Grants awarded 
                under this section shall be used for--
                          (i) developing, implementing, 
                        expanding, or enhancing comprehensive 
                        preschool, elementary, or secondary 
                        education programs for limited English 
                        proficient children and youth, that 
                        are--
                                  (I) aligned with State and 
                                local content and student 
                                performance standards, and 
                                local school reform efforts; 
                                and
                                  (II) coordinated with related 
                                services for children and 
                                youth;
                          (ii) providing high quality 
                        professional development to classroom 
                        teachers, administrators, and other 
                        school or community-based organization 
                        personnel to improve the instruction 
                        and assessment of limited English 
                        proficient students; and
                          (iii) annually assessing the English 
                        proficiency of all limited English 
                        proficient students served by 
                        activities carried out under this 
                        section.
                  (B) Permissible activities.--Grants awarded 
                under this section may be used for--
                          (i) implementing programs to upgrade 
                        the reading and other academic skills 
                        of limited English proficient students;
                          (ii) developing accountability 
                        systems to monitor the academic 
                        progress of limited English proficient 
                        and formerly limited English proficient 
                        students;
                          (iii) implementing family education 
                        programs and parent outreach and 
                        training activities designed to assist 
                        parents to become active participants 
                        in the education of their children;
                          (iv) improving the instructional 
                        programs for limited English proficient 
                        students by identifying, acquiring, and 
                        applying effective curricula, 
                        instructional materials (including 
                        materials provided throughtechnology), 
                        and assessments that are all aligned 
                        with State and local standards;
                          (v) providing intensified 
                        instruction, including tutorials and 
                        academic or career counseling, for 
                        children and youth who are limited 
                        English proficient;
                          (vi) adapting best practice models 
                        for meeting the needs of limited 
                        English proficient students;
                          (vii) assisting limited English 
                        proficient students with disabilities;
                          (viii) implementing applied learning 
                        activities such as service learning to 
                        enhance and support comprehensive 
                        elementary and secondary bilingual 
                        education programs; and
                          (ix) carrying out such other 
                        activities, consistent with the purpose 
                        of this part, as the Secretary may 
                        approve.
    (c) Eligible Entity.--For the purpose of this section the 
term ``eligible entity'' means--
          (1) 1 or more local educational agencies;
          (2) 1 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.
    (d) Priority.--In awarding grants under this section, the 
Secretary may give priority to an entity that--
          (1) serves a school district--
                  (A) that has a total district enrollment that 
                is less than 10,000 students; or
                  (B) with a large percentage or number of 
                limited English proficient students; and
          (2) has limited or no experience in serving limited 
        English proficient students.

SEC. 3103. COMPREHENSIVE SCHOOL AND SYSTEMWIDE IMPROVEMENT GRANTS.

    (a) Purposes.--The purposes of this section are--
          (1) to provide financial assistance to schools and 
        local educational agencies for implementing bilingual 
        education programs, in coordination with programs 
        carried out under this title, for children and youth of 
        limited English proficiency;
          (2) to assist limited English proficient students to 
        meet the standards established under section 1111(b); 
        and
          (3) to improve, reform, and upgrade relevant 
        instructional programs and operations, in schools and 
        local educational agencies, that serve significant 
        percentages of students with limited English 
        proficiency or significant numbers of such students.
    (b) Authorized Activities.--
          (1) Authority.--The Secretary may award grants to 
        eligible entities having applications approved under 
        section 3104 to enable such entities to carry out 
        activities described in paragraphs (2) and (3).
          (2) Mandatory activities.--Grants awarded under this 
        section shall be used for--
                  (A) improving instructional programs for 
                limited English proficient students by 
                acquiring and upgrading curriculum and related 
                instructional materials;
                  (B) aligning the activities carried out under 
                this section with State and local school reform 
                efforts;
                  (C) providing training, aligned with State 
                and local standards, to school personnel and 
                participating community-based organization 
                personnel to improve the instruction and 
                assessment of limited English proficient 
                students;
                  (D) developing and implementing plans, 
                coordinated with plans for programs carried out 
                under title II of the Higher Education Act of 
                1965 (where applicable), and title II of this 
                Act (where applicable), to recruit teachers 
                trained to serve limited English proficient 
                students;
                  (E) implementing culturally and 
                linguistically appropriate family education 
                programs, or parent outreach and training 
                activities, that are designed to assist parents 
                to become active participants in the education 
                of their children;
                  (F) coordinating the activities carried out 
                under this section with other programs, such as 
                programs carried out under this title;
                  (G) providing services to meet the full range 
                of the educational needs of limited English 
                proficient students;
                  (H) annually assessing the English 
                proficiency of all limited English proficient 
                students served by the activities carried out 
                under this section; and
                  (I) developing or improving accountability 
                systems to monitor the academic progress of 
                limited English proficient students.
          (3) Permissible activities.--Grants awarded under 
        this section may be used for--
                  (A) implementing programs to upgrade reading 
                and other academic skills of limited English 
                proficient students;
                  (B) developing and using educational 
                technology to improve learning, assessments, 
                and accountability to meet the needs of limited 
                English proficient students;
                  (C) implementing scientifically based 
                research programs to meet the needs of limited 
                English proficient students;
                  (D) providing tutorials and academic or 
                career counseling for limited English 
                proficient children and youth;
                  (E) developing and implementing State and 
                local content and student performance standards 
                for learning English as a second language, as 
                well as for learning other languages;
                  (F) developing and implementing programs for 
                limited English proficient students to meet the 
                needs of changing populations of such students;
                  (G) implementing policies to ensure that 
                limited English proficient students have access 
                to other education programs (other than 
                programs designed to address limited English 
                proficiency), such as gifted and talented, 
                vocational education, and special education 
                programs;
                  (H) implementing programs to meet the needs 
                of limited English proficient students with 
                disabilities;
                  (I) developing and implementing programs to 
                help all students become proficient in more 
                than 1 language; and
                  (J) providing such other activities related 
                to the purpose of this part as the Secretary 
                may approve.
          (4) Special rule.--A recipient of a grant under this 
        section, before carrying out activities under this 
        section, shall plan, train personnel, develop 
        curricula, and acquire or develop materials, but shall 
        not use funds made available under this section for 
        planning purposes for more than 90 days. The recipient 
        shall commence carrying out activities under this 
        section not later than 90 days after the date of 
        receipt of the grant.
    (c) Availability of Appropriations.--
          (1) Reservation of funds for continued payments.--
                  (A) Covered grant.--In this paragraph, the 
                term ``covered grant'' means a grant--
                          (i) that was awarded under section 
                        7114 or 7115 (as such sections were in 
                        effect prior to the date of enactment 
                        of the Better Education for Students 
                        and Teachers Act); and
                          (ii) for which the grant period has 
                        not ended.
                  (B) Reservation.--For any fiscal year that is 
                part of the grant period of a covered grant, 
                the Secretary shall reserve funds for the 
                payments described in subparagraph (C) from the 
                amount appropriated for the fiscal year under 
                section 3003 and made available for carrying 
                out this section.
                  (C) Payments.--The Secretary shall continue 
                to make grant payments to each entity that 
                received a covered grant, for the duration of 
                the grant period of the grant, to carry out 
                activities in accordance with the appropriate 
                section described in subparagraph (A)(i).
          (2) Availability.--Of the amount appropriated for a 
        fiscal year under section 3003 that is made available 
        for carrying out this section, and that remains after 
        the Secretary reserves funds for payments under 
        paragraph (1)--
                  (A) not less than \1/3\ of the remainder 
                shall be used to award grants for activities 
                carried out within an entire school district; 
                and
                  (B) not less than \2/3\ of the remainder 
                shall be used to award grants for activities 
                carried out within individual schools.
    (d) Eligible Entities.--In this section, the term 
``eligible entity'' means--
          (1) 1 or more local educational agencies; or
          (2) 1 or more local educational agencies, in 
        collaboration with an institution of higher education, 
        community-based organization, local educational agency, 
        or State educational agency.

SEC. 3104. 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 the written comments of the agency regarding 
        the application to the Secretary.
          (2) Comments.--
                  (A) Submission of comments.--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) Subject.--For purposes of this subpart, 
                such comments shall address--
                          (i) how the activities to be carried 
                        out under the grant will further the 
                        academic achievement and English 
                        proficiency of limited English 
                        proficient students served under the 
                        grant; and
                          (ii) how the grant application is 
                        consistent with the State plan required 
                        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--
          (1) the applicant has the qualified personnel 
        required to develop, administer, and implement the 
        program proposed in the application; and
          (2) the leadership personnel of each school 
        participating in the program have been involved in the 
        development and planning of the program in the school.
    (g) Contents.--
          (1) In general.--An application for a grant under 
        this subpart shall contain the following:
                  (A) A description of the need for the 
                proposed program, including--
                          (i) data on the number of limited 
                        English proficient students in the 
                        school or school district to be served;
                          (ii) the characteristics of such 
                        students, including--
                                  (I) the native languages of 
                                the students;
                                  (II) the proficiency of the 
                                students in English and their 
                                native language;
                                  (III) achievement data 
                                (current as of the date of 
                                submission of the application) 
                                for the limited English 
                                proficient students in--
                                          (aa) reading or 
                                        language arts (in 
                                        English and in the 
                                        native language, if 
                                        applicable); and
                                          (bb) mathematics;
                                  (IV) a comparison of that 
                                data for the students with that 
                                data for the English proficient 
                                peers of the students; and
                                  (V) the previous schooling 
                                experiences of the students;
                          (iii) the professional development 
                        needs of the instructional personnel 
                        who will provide services for the 
                        limited English proficient students 
                        under the proposed program; and
                          (iv) how the services provided 
                        through the grant will supplement the 
                        basic services provided to limited 
                        English proficient students.
                  (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) will ensure that the services 
                        provided through the program will 
                        supplement the basic services the 
                        applicant provides to limited English 
                        proficient students;
                          (iii) is coordinated with other 
                        programs under this Act and other Acts, 
                        as appropriate, in accordance with 
                        section 5506;
                          (iv) involves the parents of the 
                        children and youth of limited English 
                        proficiency to be served;
                          (v) ensures accountability in 
                        achieving high academic standards; and
                          (vi) 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 who, 
                individually or in combination, are proficient 
                in--
                          (i) English, including written, as 
                        well as oral, communication skills; and
                          (ii) the native language of the 
                        majority of the students that the 
                        teachers teach, if instruction in the 
                        program is in the native language as 
                        well as English.
                  (F) A budget for grant funds.
          (2) Additional information.--Each application for a 
        grant under section 3103 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 subpart 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 ofstudents 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.--In approving applications for grants 
        for programs under this subpart, the Secretary shall 
        give priority to an applicant who--
                  (A) experiences a dramatic increase in the 
                number or percentage of limited English 
                proficient students enrolled in the applicant's 
                programs and has limited or no experience in 
                serving limited English proficient students;
                  (B) is a local educational agency that serves 
                a school district that has a total district 
                enrollment that is less than 10,000 students;
                  (C) demonstrates that the applicant has a 
                proven record of success in helping limited 
                English proficient children and youth learn 
                English and meet high academic standards;
                  (D) proposes programs that provide for the 
                development of bilingual proficiency both in 
                English and another language for all 
                participating students; or
                  (E) serves a school district with a large 
                percentage or number of limited English 
                proficient students.
          (2) 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.
          (3) 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. 3105. 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. 3106. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

    Programs authorized under this subpart that serve Native 
American children, Native Pacific Island children, and children 
in the Commonwealth of Puerto Rico, notwithstanding any other 
provision of this subpart, 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 1 outcome 
of such programs serving Native American children shall be 
increased English proficiency among such children.

SEC. 3107. EVALUATIONS.

    (a) Evaluation.--Each recipient of funds under this subpart 
for a program shall annually conduct an evaluation of the 
program and submit to the Secretary a report concerning the 
evaluation, in the form prescribed by the Secretary.
    (b) Use of Evaluation.--Such evaluation shall be used by 
the grant recipient--
          (1) for program improvement;
          (2) to further define the program's goals and 
        objectives; and
          (3) to determine program effectiveness.
    (c) Evaluation Report Components.--In preparing the 
evaluation reports, the recipient shall--
          (1) use the data provided in the application 
        submitted by the recipient under section 3104 as 
        baseline data against which to report academic 
        achievement and gains in English proficiency for 
        students in the program;
          (2) disaggregate the results of the evaluation by 
        gender, language groups, and whether the students have 
        disabilities;
          (3) include data on the progress of the recipient in 
        achieving the objectives of the program, including data 
        demonstrating the extent to which students served by 
        the program are meeting the State's student performance 
        standards, and including data comparing limited English 
        proficient students with English proficient students 
        with regard to school retention and academic 
        achievement in--
                  (A) reading and language arts;
                  (B) English proficiency;
                  (C) mathematics; and
                  (D) the native language of the students if 
                the program develops native language 
                proficiency;
          (4) include information on the extent that 
        professional development activities carried out through 
        the program have resulted in improved classroom 
        practices and improved student performance;
          (5) include a description of how the activities 
        carried out through the program are coordinated and 
        integrated with the other Federal, State, or local 
        programs serving limited English proficient children 
        and youth; and
          (6) include such other information as the Secretary 
        may require.

SEC. 3108. CONSTRUCTION.

    Nothing in this subpart 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. 3121. 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. 3122. 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 chapter 1 
        or 2 who have received such grants within the previous 
        5 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 chapter 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 2 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. 3123. ACADEMIC EXCELLENCE AWARDS.

  (a) Authority.--The Secretary may make grants to State 
educational agencies to assist the agencies in recognizing 
local educational agencies and other public and nonprofit 
entities whose programs have--
          (1) demonstrated significant progress in assisting 
        limited English proficient students to learn English 
        according to age appropriate and developmentally 
        appropriate standards; and
          (2) demonstrated significant progress in assisting 
        limited English proficient children and youth to meet, 
        according to age appropriate and developmentally 
        appropriate standards, the same challenging State 
        content standards as all children and youth are 
        expected to meet.
  (b) Applications.--A State educational agency desiring a 
grant under this section shall include an application for such 
grant in the application submitted by the agency under section 
3124(e).

SEC. 3124. 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 chapter 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 $200,000.
  (c) Use of Funds.--
          (1) In general.--A State educational agency shall use 
        funds awarded under this section to--
                  (A) assist local educational agencies in the 
                State with activities that--
                          (i) consist of program design, 
                        capacity building, assessment of 
                        student performance, program 
                        evaluation, and development of data 
                        collection and accountability systems 
                        for limited English proficient 
                        students; and
                          (ii) are aligned with State reform 
                        efforts; and
                  (B) collect data on the State's limited 
                English proficient populations and document the 
                services available to all such populations.
          (2) Training.--The State educational agency may also 
        use funds provided under this section for the training 
        of State educational agency personnel in educational 
        issues affecting limited English proficient children 
        and youth.
          (3) Special rule.--Recipients of funds under this 
        section shall not restrict the provision of services 
        under this section to federally funded programs.
    (d) State Consultation.--A State educational agency 
receiving funds under this section shall consult with 
recipients of grants under this subpart and other individuals 
or organizations involved in the development or operation of 
programs serving limited English proficient children or youth 
to ensure that such funds are used in a manner consistent with 
the requirements of this subpart.
    (e) Applications.--A State educational agency desiring to 
receive funds under this section shall submit an application to 
the Secretary 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. 3125. 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;
          (4) develop, maintain, and disseminate 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; and
          (5) publish, on an annual basis, a list of grant 
        recipients under this subpart.

SEC. 3126. 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, and in other low-incidence languages in the 
United States 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 chapters 1 and 
2 and which are consistent with voluntary national content 
standards and challenging State content standards.

                  Subpart 3--Professional Development

SEC. 3131. 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. 3132. 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 may award grants under 
        this section to--
                  (A) local educational agencies; or
                  (B) 1 or more local educational agencies in a 
                consortium with 1 or more State educational 
                agencies, institutions of higher education, or 
                nonprofit organizations.
          (2) Duration.--Each grant awarded under this section 
        shall be awarded for a period of not more than 5 years.
    (c) Authorized Activities.--
          (1) Professional development activities.--Grants 
        awarded under this section shall be used to conduct 
        high-quality, long-term professional development 
        activities relating to meeting the needs of limited 
        English proficient students, which may include--
                  (A) developing and implementing induction 
                programs for new teachers, including programs 
                that provide mentoring and coaching by trained 
                teachers, and team teaching with experienced 
                teachers;
                  (B) implementing school-based collaborative 
                efforts among teachers to improve instruction 
                in core academic areas, including reading, for 
                students with limited English proficiency;
                  (C) coordinating activities with other 
                programs, such as programs carried out under 
                this title, title II, and the Head Start Act;
                  (D) implementing programs that support 
                effective teacher use of education technologies 
                to improve instruction and assessment;
                  (E) establishing and maintaining local 
                professional networks;
                  (F) developing curricular materials and 
                assessments for teachers that are aligned with 
                State and local standards and the needs of the 
                limited English proficient students to be 
                served; and
                  (G) carrying out such other activities as are 
                consistent with the purpose of this section.
          (2) Permissible activities.--Activities conducted 
        under this section may include the development of 
        training programs in collaboration with other programs, 
        such as programs authorized under this title, title II, 
        and the Head Start Act.

SEC. 3133. 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) Program Authorized.--
          (1) Grants to institutions of higher education.--The 
        Secretary is authorized to award grants for not more 
        than 5 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) Grants to state and local educational agencies.--
        The Secretary is authorized to award grants for not 
        more than 5 years to State and local educational 
        agencies for inservice professional development 
        programs.

SEC. 3134. 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 5 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, which may include effective 
        employment placement activities;
          (2) development of teacher proficiency in English as 
        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 subpart 2 of part A of title IV of the 
        Higher Education Act of 1965, programs under title I of 
        the National and Community Service Act of 1990, 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. 3135. 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) 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 3139.
    (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. 3136. 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) Training practicum.--An application 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) Waiver.--A recipient of a grant under 
                this subpart 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) Submission of comments.--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) Subject.--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, 
        particularlysuch 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 subpart.
          (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. 3137. 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. 3138. PROGRAM EVALUATIONS.

    Each recipient of funds under this subpart for a program 
shall annually conduct an evaluation of the program and submit 
to the Secretary a report containing the evaluation. Such 
report shall include information on--
          (1) the number of participants served through the 
        program, the number of participants who completed 
        program requirements, and the number of participants 
        who took positions in an instructional setting with 
        limited English proficient students;
          (2) the effectiveness of the program in imparting the 
        professional skills necessary for participants to 
        achieve the objectives of the program; and
          (3) the teaching effectiveness of graduates of the 
        program or other participants who have completed the 
        program.

SEC. 3139. 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. 3141. 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 Better 
Education for Students and Teachers Act) 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. 3201. SHORT TITLE.

    This part may be cited as the ``Foreign Language Assistance 
Act of 1994''.

SEC. 3202. 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 3206 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 3206 
        to evaluate the efficacy of programs under this part.

SEC. 3203. 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;
          (3) promote the sequential study of a foreign 
        language for students, beginning in elementary schools;
          (4) make effective use of technology, such as 
        computer-assisted instruction, language laboratories, 
        or distance learning, to promote foreign language 
        study;
          (5) promote innovative activities such as foreign 
        language immersion, partial foreign language immersion, 
        or content-based instruction; and
          (6) are carried out through a consortium comprised of 
        the agency receiving the grant and an elementary school 
        or secondary school.

SEC. 3204. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE PROGRAM.

    (a) Incentive Payments.--From amounts appropriated under 
section 3206 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 4 days per week throughout an academic 
year.

SEC. 3205. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $35,000,000 for the 
fiscal year 2002, and such sums as may be necessary for each of 
the 6 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 3204.

             PART C--EMERGENCY IMMIGRANT EDUCATION PROGRAM

SEC. 3301. 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. 3302. STATE ADMINISTRATIVE COSTS.

    For any fiscal year, a State educational agency may reserve 
not more than 1.5 percent (2 percent if the State educational 
agency distributes funds received under this part to local 
educational agencies on a competitive basis) of the amount 
allocated to such agency under section 3304 to pay the costs of 
performing such agency's administrative functions under this 
part.

SEC. 3303. 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. 3304. 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 2002 through 2008 for the 
purpose set forth in section 3301.
    (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 schools or secondary schools under 
        the jurisdiction of each local educational agency 
        described in paragraph (2) within such State, and in 
        nonpublic elementary schools 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 schools or secondary 
        schools under the jurisdiction of such agencies, and in 
        nonpublic elementary schools 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 tocarry 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) Agencies with immigrant children and 
                youth.--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) Agencies with a sudden influx of 
                immigrant children and youth.--Funds reserved 
                under this paragraph and not made available 
                under subparagraph (A) may be distributed to 
                local educational agencies within the State 
                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 3307.
          (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. 3305. 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 3301 
        and 3307, 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, 
        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 3304(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 
        3304(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 school 
                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 paragraphshall not be commingled 
                with State or local funds;
          (8) provide that funds reserved under subsection (e) 
        of section 3304 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. 3306. 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 3305 of the 
amount of such agency's allocation under section 3304 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 3305(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. 3307. 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. 3308. REPORTS.

  (a) Biennial Report.--Each State educational agency receiving 
funds under this part shall submit, once every 2 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 2 years, a report to the appropriatecommittees of the 
Congress concerning programs assisted under this part.

SEC. 3309. AUTHORIZATION OF APPROPRIATIONS.

  For the purpose of carrying out this part, there are 
authorized to be appropriated $200,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding 
fiscal years.

                         PART D--ADMINISTRATION

SEC. 3401. RELEASE TIME.

  The Secretary shall allow professional development programs 
funded under subpart 1 to use funds provided under subpart 1 
for professional release time to enable individuals to 
participate in programs assisted under subpart 1.

SEC. 3402. EDUCATION TECHNOLOGY.

  Funds made available under subpart 1 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. 3403. NOTIFICATION.

  The State educational agency, and when applicable, the State 
board for postsecondary education, shall be notified within 3 
working days of the date an award under subpart 1 is made to an 
eligible entity within the State.

SEC. 3404. 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. 3405. COORDINATION AND REPORTING REQUIREMENTS.

  (a) Coordination With Related Programs.--In order to maximize 
Federal efforts aimed at serving the educational needs of 
children and youth of limited English proficiency, the 
Secretary shall coordinate and ensure close cooperation with 
other programs serving language-minority and limited English 
proficient 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 
this title 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 subpart 1.
  (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 Health, Education, Labor, and Pensions 
of the Senate and to the Committee on Education and the 
Workforce 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 3124;
          (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 5 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. 3501. DEFINITIONS; REGULATIONS.

  Except as otherwise provided, in 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;
                  (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 College or University 
        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 
        209 of the Department of Education Organization Act.
          (6) Family education program.--
                  (A) In general.--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, 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) Instruction for higher education and 
                employment.--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 
                3 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.
          (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 5 years successful experience in providing 
        educational services in traditional Native American 
        languages.
          (11) Native language.--The term ``native language'', 
        when used with reference to an individual of limited 
        English proficiency, means 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 school 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; 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. 3502. 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 subpart 1 
        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) In general.--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) Civil rights obligations.--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 subpart 1; 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 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 
        donot 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 smokless 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 ofsuch 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 co-ordination 
        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 subpartfor 
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, 
                soft-ware, 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 distributed 
        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 amanner 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 pre-school 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 pre-school 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 programs, as a component of 
                a comprehensive drug or violence prevention 
                program, that are tailored by communities, 
                parents and schools; 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 executives 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 teachchild 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 communuity-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 purpose 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--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

                          PART A--STATE GRANTS

SEC. 4001. SHORT TITLE.

  This part may be cited as the ``Safe and Drug-Free Schools 
and Communities Act of 1994''.

SEC. 4002. FINDINGS.

    Congress makes the following findings:
          (1) Every student should attend a school in a drug- 
        and violence-free learning environment.
          (2) The widespread illegal use of alcohol and 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) Drug and violence prevention programs are 
        essential components of a comprehensive strategy to 
        promote school safety, youth development, positive 
        school outcomes, and to reduce the demand for and 
        illegal use of alcohol, tobacco and drugs throughout 
        the Nation. Schools, local organizations, parents, 
        students, and communities throughout the Nation have a 
        special responsibility to work together to combat the 
        continuing epidemic of violence and illegal drug use 
        and should measure the success of their programs 
        against clearly defined goals and objectives.
          (4) Drug and violence prevention programs are most 
        effective when implemented within a scientifically 
        based research, drug and violence prevention framework 
        of proven effectiveness.
          (5) Research clearly shows that community contexts 
        contribute to substance abuse and violence.
          (6) Substance abuse and violence are intricately 
        related and must be dealt with in a holistic manner.
          (7) Research has documented that parental behavior 
        and environment directly influence a child's 
        inclination to use alcohol, tobacco or drugs.

SEC. 4003. PURPOSE.

  The purpose of this part is to support programs that prevent 
violence in and around schools and prevent the illegal use of 
alcohol, tobacco, and drugs, involve parents, and are 
coordinated with related Federal, State, school,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 for the development 
        and implementation of policies that set clear and 
        appropriate standards regarding the illegal use of 
        alcohol, tobacco and drugs, and for violent behavior 
        (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 including 
        community mobilization, early intervention, 
        rehabilitation referral, and education;
          (3) States for development, training, technical 
        assistance, and coordination activities; and
          (4) public and private nonprofit organizations to 
        provide technical assistance, conduct training, 
        demonstrations, and evaluation, and to provide 
        supplementary services and community mobilization 
        activities for the prevention of drug use and violence 
        among students and youth.

SEC. 4004. FUNDING.

    There are authorized to be appropriated--
          (1) $700,000,000 for fiscal year 2002, and such sums 
        as may be necessary for each of the 6 succeeding fiscal 
        years, for State grants under subpart 1;
          (2) $150,000,000 for fiscal year 2002, and such sums 
        as may be necessary for each of the 6 succeeding fiscal 
        years, for national programs under subpart 2;
          (3) $75,000,000 for fiscal year 2002, and such sums 
        as may be necessary for each of the 6 succeeding fiscal 
        years, for the National Coordinator Initiative under 
        section 4122; and
          (4) $5,000,000 for each of fiscal years 2002 through 
        2004 to carry out section 4125.

   Subpart 1--State Grants for Drug and Violence Prevention Programs

SEC. 4111. RESERVATIONS AND ALLOTMENTS.

    (a) Reservations.--From the amount made available under 
section 4004(1) 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 $2,000,000 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 section 1124A for the preceding 
                year and the sum of such amounts received by 
                all the States.
          (2) Minimum.--For any fiscal year, no State shall be 
        allotted under this subsection an amount that is less 
        than 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 2 years of such allotment. Such 
        reallotments shall be made on the same basis as 
        allotments are made under paragraph (1).
          (4) Definitions.--In this subsection:
                  (A) State.--The term `State' means each of 
                the 50 States, the District of Columbia, and 
                the Commonwealth of Puerto Rico.
                  (B) Local educational agency.--The term 
                `local educational agency' includes educational 
                service agencies and consortia of such 
                agencies.
    (c) Limitation.--Amounts appropriated under section 4004(2) 
for a fiscal year may not be increased above the amounts 
appropriated under such section for the previous fiscal year 
unless the amounts appropriated under section 4004(1) for the 
fiscal year involved are at least 10 percent greater that the 
amounts appropriated under such section 4004(1) for the 
previous fiscal year.

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) contains a comprehensive plan for the use of 
        funds by the State educational agency and the chief 
        executive officer to provide safe, orderly, and drug-
        free schools and communities;
          (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 incidence 
        and prevalence, age of onset, perception of health 
        risk, and perception of social disapproval of drug use 
        and violence by youth in schools and communities and 
        the prevalence of risk or protective factors, buffers 
        or assets or other scientifically based research 
        variables in the school and community;
          (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 together, with each such officer or State 
        representative, 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);
          (5) contains assurances that the State education 
        agency and the Governor will develop their respective 
        applications in consultation with an advisory council 
        that includes, to the extent practicable, 
        representatives from school districts, businesses, 
        parents, youth, teachers, administrators, pupil 
        services personnel, private schools, appropriate State 
        agencies, community-based organizations, the medical 
        profession, law enforcement, the faith-based community 
        and other groups with interest and expertise in 
        alcohol, tobacco, drug, and violence prevention;
          (6) contains assurances that the State education 
        agency and the Governor involve the representatives 
        described in paragraph (5), on an ongoing basis, to 
        review program evaluations and other relevant material 
        and make recommendations to the State education agency 
        and the Governor on how to improve their respective 
        alcohol, tobacco, drug, and violence prevention 
        programs;
          (7) contains a list of the State's results-based 
        performance measures for drug and violence prevention, 
        that shall--
                  (A) be focused on student behavior and 
                attitudes and be derived from the needs 
                assessment;
                  (B) include targets and due dates for the 
                attainment of such performance measures; and
                  (C) include a description of the procedures 
                that the State will use to inform local 
                educational agencies of such performance 
                measures for assessing and publicly reporting 
                progress toward meeting such measures or 
                revising them as needed; and
          (8) 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 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;
          (2) a description of how the State educational agency 
        will use funds under section 4113(b), including how the 
        agency will receive input from parents regarding the 
        use of such funds;
          (3) 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; 
        and
          (4) a description of the procedures the State 
        educational agency will use to review applications from 
        and allocate funding to local educational agencies 
        under section 4115 and how such review will receive 
        input from parents.
    (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, with respect to each activity to be carried out by 
the State--
          (1) 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;
          (2) 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;
          (3) 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;
          (4) a description of the special outreach activities 
        that will be carried out to maximize the participation 
        of community-based nonprofit organizations of 
        demonstrated effectiveness which provide services in 
        low-income communities;
          (5) a description of how funds will be used to 
        support community-wide comprehensive drug and violence 
        prevention planning and community mobilization 
        activities; and
          (6) a specific description of how input from parents 
        will be sought regarding the use of funds under section 
        4114(a).
    (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 
2002 a 1-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 2002 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.--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.
    (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) voluntary 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 
                drug and violence prevention 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 scientifically based 
                research programs for youth violence and drug 
                abuse prevention;
                  (D) demonstration projects in drug and 
                violence prevention, including service-learning 
                projects;
                  (E) training, technical assistance, and 
                demonstration projects to address violence 
                associated with prejudice and intolerance;
                  (F) training, technical assistance and 
                demonstration projects to address the impact 
                offamily violence on school violence and 
                substance abuse;
                  (G) 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
                  (H) 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.--
          (1) In general.--A State educational agency may use 
        not more than 5 percent of the amount reserved under 
        subsection (a) for the administrative costs of carrying 
        out its responsibilities under this part.
          (2) Uniform management information and reporting 
        system.--In carrying out its responsibilities under 
        this part, a State shall implement a uniform management 
        information and reporting system that includes 
        information on the types of curricula, programs and 
        services provided by the State, Governor, local 
        education agencies, and other recipients of funds under 
        this title.
    (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 State educational agency shall 
        distribute amounts under paragraph (1) in accordance 
        with any one of the following subparagraphs:
                  (A) Enrollment and combination approach.--Of 
                the amount distributed under paragraph (1), a 
                State educational agency shall distribute--
                          (i) at least 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) not to exceed 30 percent of any 
                        amounts remaining after amounts are 
                        distributed under clause (i)--
                                  (I) to each local educational 
                                agency in an amount determined 
                                appropriate by the State 
                                educational agency; or
                                  (II) to local educational 
                                agencies that the State 
                                education agency determines 
                                have the greatest need for 
                                additional funds to carry out 
                                drug and violence prevention 
                                programs authorized by this 
                                subpart.
                  (B) Competitive and need approach.--Of the 
                amount distributed under paragraph (1), a State 
                educational agency shall distribute--
                          (i) not to exceed 70 percent of such 
                        amount to local educational agencies 
                        that the State agency determines, 
                        through a competitive process, have the 
                        greatest need for funds to carry out 
                        drug and violence prevention programs 
                        based on criteria established by the 
                        State agency and authorized under this 
                        subpart; and
                          (ii) at least 30 percent of any 
                        amounts remaining after amounts are 
                        distributed under clause (i) to local 
                        educational agencies that the State 
                        agency determines have a need for 
                        additional funds to carry out the 
                        program authorized under this subpart.
          (3) Consideration of objective data.--For purposes of 
        paragraph (2), in determining which local educational 
        agencies have the greatest need for funds, the State 
        educational agency shall consider objective data which 
        may include--
                  (A) high or increasing rates of alcohol or 
                drug use among youth;
                  (B) high or increasing rates of victimization 
                of youth by violence and crime;
                  (C) high or increasing rates of arrests and 
                convictions of youth for violent or drug- or 
                alcohol-related crime;
                  (D) the extent of illegal gang activity;
                  (E) high or increasing incidence of violence 
                associated with prejudice and intolerance;
                  (F) high or increasing rates of referrals of 
                youths to drug and alcohol abuse treatment and 
                rehabilitation programs;
                  (G) high or increasing rates of referrals of 
                youths to juvenile court;
                  (H) high or increasing rates of expulsions 
                and suspensions of students from schools;
                  (I) high or increasing rates of reported 
                cases of child abuse and domestic violence; and
                  (J) high or increasing rates of drug related 
                emergencies or deaths.
    (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 its other local educational agencies.
    (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(b)(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) Administrative costs.--A chief executive officer 
        may use not more than 5 percent of the 20 percent 
        described in paragraph (1) for the administrative costs 
        incurred in carrying out the duties of such officer 
        under this section. The chief executive officer of a 
        State may use amounts under this paragraph to award 
        grants to State, county, or local law enforcement 
        agencies, including district attorneys, in consultation 
        with local education agencies or community-based 
        agencies, for the purposes of carrying out drug abuse 
        and violence prevention activities.
    (b) State Plan.--Amounts shall be used under this section 
in accordance with a State plan submitted by the chief 
executive office of the State. Such State plan 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 schools in the State 
        (including private school students who participate in 
        the States's drug and violence prevention programs) 
        that is based on ongoing local assessment or evaluation 
        activities;
          (2) an analysis, based on data reasonably available 
        at the time, of the prevalence of risk factors, 
        including high or increasing rates of reported cases of 
        child abuse and domestic violence, or protective 
        factors, buffers or assets or other scientifically 
        based research variables in schools and communities in 
        the State;
          (3) a description of the scientifically based 
        research strategies and programs, which shall be used 
        to prevent or reduce drug use, violence, or disruptive 
        behavior, which shall include--
                  (A) a specification of the objectively 
                measurable goals, objectives, and activities 
                for the program;
                  (B) a specification for how risk factors, if 
                any, which have been identified will be 
                targeted through scientifically based research 
                programs; and
                  (C) a specification for how protective 
                factors, buffers, or assets, if any, will be 
                targeted through scientifically based research 
                programs;
          (4) a specification for the method or methods by 
        which measurements of program goals will be achieved; 
        and
          (5) a specification for how the evaluation of the 
        effectiveness of the prevention program will be 
        assessed and how the results will be used to refine, 
        improve, and strengthen the program.
    (c) Programs Authorized.--
          (1) In general.--A chief executive officer shall use 
        funds made available under subsection (a)(1) directly 
        for grants to or contracts with parent groups, schools, 
        community action and job training agencies, community-
        based organizations, community anti-drug coalitions, 
        law enforcement education partnerships, 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 (d) 
        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.
    (d) Authorized Activities.--Grants and contracts under 
subsection (c) shall be used to carry out the comprehensive 
State plan as required under section 4112(a)(1) through 
programs and activities such as--
          (1) disseminating information about drug and violence 
        prevention;
          (2) the voluntary training of parents, law 
        enforcement officials, judicial officials, social 
        service providers, health service providers and 
        community leaders about drug and violence prevention, 
        health education (as it relates to drug and violence 
        prevention), domestic violence and child abuse 
        education (as it relates to drug and violence 
        prevention), 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, family violence prevention, 
        community service, service-learning, 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 activities to prevent 
        and reduce dating violence;
          (10) developing and implementing strategies to 
        prevent illegal gang activity;
          (11) coordinating and conducting school and 
        community-wide violence and safety and drug abuse 
        assessments and surveys;
          (12) service-learning projects that encourage drug- 
        and violence-free lifestyles;
          (13) evaluating programs and activities assisted 
        under this section;
          (14) developing and implementing community 
        mobilization activities to undertake environmental 
        change strategies related to substance abuse and 
        violence; and
          (15) partnerships between local law enforcement 
        agencies, including district attorneys, and local 
        education agencies or community-based agencies.

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) Consultation.--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) Duties of advisory council.--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 
                        scientifically based research drug and 
                        violence prevention programs, projects, 
                        and activities conducted within the 
                        boundaries of the local educational 
                        agency;
                          (ii) advise the local educational 
                        agency regarding how best to coordinate 
                        such agency's activities under this 
                        subpart with other related programs, 
                        projects, and activities;
                          (iii) ensure that a mechanism is in 
                        place to enable local educational 
                        agencies to have access to up-to-date 
                        information concerning the agencies 
                        that administer related programs, 
                        projects, and activities and any 
                        changes in the law that alter the 
                        duties of the local educational 
                        agencies withrespect to activities 
                        conducted under this subpart; and
                          (iv) review program evaluations and 
                        other relevant material and make 
                        recommendations on an active and 
                        ongoing basis 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) an analysis, based on data reasonably available 
        at the time, of the prevalence of risk factors, 
        including high or increasing rates of reported cases of 
        child abuse and domestic violence, or protective 
        factors, buffers or assets or other scientifically 
        based research variables in the school and community;
          (3) a description of the scientifically based 
        research strategies and programs, which shall be used 
        to prevent or reduce drug use, violence, or disruptive 
        behavior, which shall include--
                  (A) a specification of the objectively 
                measurable goals, objectives, and activities 
                for the program, which shall include--
                          (i) reductions in the use of alcohol, 
                        tobacco, and illicit drugs and violence 
                        by youth;
                          (ii) specific reductions in the 
                        prevalence of identified risk factors;
                          (iii) specific increases in the 
                        prevalence of protective factors, 
                        buffers, or assets if any have been 
                        identified; or
                          (iv) other scientifically based 
                        research goals, objectives, and 
                        activities that are identified as part 
                        of the application that are not 
                        otherwise covered under clauses (i) 
                        through (iii);
                  (B) a specification for how risk factors, if 
                any, which have been identified will be 
                targeted through scientifically based research 
                programs; and
                  (C) a specification for how protective 
                factors, buffers, or assets, if any, will be 
                targeted through scientifically based research 
                programs;
          (4) a specification for the method or methods by 
        which measurements of program goals will be achieved;
          (5) a specification for how the evaluation of the 
        effectiveness of the prevention program will be 
        assessed and how the results will be used to refine, 
        improve, and strengthen the program;
          (6) an assurance that the applicant has, or the 
        schools to be served have, a plan for keeping schools 
        safe and drug-free that includes--
                  (A) appropriate and effective discipline 
                policies that prohibit disorderly conduct, the 
                possession of firearms and other weapons, and 
                the illegal use, possession, distribution, and 
                sale of tobacco, alcohol, and other drugs by 
                students;
                  (B) security procedures at school and while 
                students are on the way to and from school;
                  (C) prevention activities that are designed 
                to create and maintain safe, disciplined, and 
                drug-free environments; and
                  (D) a crisis management plan for responding 
                to violent or traumatic incidents on school 
                grounds; and
          (7) 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 general.--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)(6) and the extent to which the 
                proposed plan provides a thorough assessment of 
                the substance abuse and violence problem, uses 
                objective data and the knowledge of a wide 
                range of community members, developsmeasurable 
                goals and objectives, and implements 
                scientifically based research programs that 
                have been shown to be effective and meet 
                identified needs.
                  (B) Disapproval.--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 school 
        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 school employees;
                  (B) prevent violence and promote school 
                safety; and
                  (C) create a disciplined environment 
                conducive to learning;
          (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;
          (3) implement activities which shall include--
                  (A) a thorough assessment of the substance 
                abuse violence problem, using objective data 
                and the knowledge of a wide range of community 
                members;
                  (B) the development of measurable goals and 
                objectives;
                  (C) the implementation of scientifically 
                based research programs that have been shown to 
                be effective and meet identified goals; and
                  (D) an evaluation of program activities; and
          (4) implement prevention programming activities 
        within the context of a scientifically based research 
        prevention framework.
  (b) Use of Funds.--A comprehensive, age-appropriate, 
developmentally-, and scientifically based research drug and 
violence prevention program carried out under this subpart may 
include--
          (1) drug or violence 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 or violence, promote a sense of individual 
        responsibility, and provide information about effective 
        techniques for resisting peer pressure to use illegal 
        drugs;
          (2) programs of drug or violence prevention, health 
        education (as it relates to drug and violence 
        prevention), domestic violence and child abuse 
        education (as it relates to drug and violence 
        prevention), 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 or violence prevention;
                  (B) the professional development or voluntary 
                training 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; and
                          (ii) 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, domestic violence and child 
        abuse, and victimization associated with prejudice and 
        intolerance, and that include activities designed to 
        help students develop a sense ofindividual 
        responsibility and respect for the rights of others, 
        and to resolve conflicts without violence, or otherwise 
        decrease the prevalence of risk factors or increase the 
        prevalence of protective factors, buffers, or assets in 
        the community;
          (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 or voluntary 
                training 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 programs, as a component of 
                a comprehensive drug or violence prevention 
                program, that are tailored by communities, 
                parents and schools; and
                  (E) comprehensive, community-wide strategies 
                to prevent or reduce illegal gang activities 
                and drug use;
          (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) the acquisition or hiring of school security 
        equipment, technologies, personnel, or services such 
        as--
                  (A) metal detectors;
                  (B) electronic locks;
                  (C) surveillance cameras; and
                  (D) other drug and violence prevention-
                related equipment and technologies;
          (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) other scientifically based research prevention 
        programming that is--
                  (A) effective in reducing the prevalence of 
                alcohol, tobacco or drug use, and violence in 
                youth;
                  (B) effective in reducing the prevalence of 
                risk factors predictive of increased alcohol, 
                tobacco or drug use, and violence; or
                  (C) effective in increasing the prevalence of 
                protective factors, buffers, and assets 
                predictive of decreased alcohol, tobacco or 
                drug use and violence among youth;
          (10) the collection of objective data used to assess 
        program needs, program implementation, or program 
        success in achieving program goals and objectives;
          (11) community involvement activities including 
        community mobilization;
          (12) voluntary parental involvement and training;
          (13) the evaluation of any of the activities 
        authorized under this subsection;
          (14) the provision of mental health counseling (by 
        qualified counselors) to students for drug or violence 
        related problems;
          (15) consistent with the fourth amendment to the 
        Constitution of the United States, the testing of a 
        student for illegal drug use or inspecting a student's 
        locker for guns, explosives, other weapons, or illegal 
        drugs, including at the request of or with the consent 
        of a parent or legal guardian of the student, if the 
        local educational agency elects to so test or inspect; 
        and
          (16) the conduct of a nationwide background check of 
        each local educational agency employee (regardless of 
        when hired) and prospective employees for the purpose 
        of determining whether the employee or prospective 
        employee has been convicted of a crime that bears upon 
        the employee's or prospective employee's fitness--
                  (A) to have responsibility for the safety or 
                well-being of children;
                  (B) to serve in the particular capacity in 
                which the employee or prospective employee is 
                or will be employed; or
                  (C) to otherwise be employed at all by the 
                local educational agency.
  (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 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) Rule of Construction.--Nothing in this section shall be 
construed to prohibit the use of funds under this part by any 
local educational agency or school for the establishment or 
implementation of a school uniform policy so long as such 
policy is part of the overall comprehensive drug and violence 
prevention plan of the State involved and is supported by the 
State's needs assessment and other scientifically based 
research information.

SEC. 4117. EVALUATION AND REPORTING.

  (a) Impact Evaluation.--
          (1) Biennial evaluation.--The Secretary, in 
        consultation with the National Advisory Committee, 
        shall conduct an independent biennial evaluation of the 
        impact of programs assisted under this subpart and of 
        other recent and new initiatives to combat violence in 
        schools. The evaluation shall report on--
                  (A) whether funded community and local 
                education agency programs--
                          (i) provided a thorough assessment of 
                        the substance abuse and violence 
                        problem;
                          (ii) used objective data and the 
                        knowledge of a wide range of community 
                        members;
                          (iii) developed measurable goals and 
                        objectives;
                          (iv) implemented scientifically based 
                        research programs that have been shown 
                        to be effective and meet identified 
                        needs; and
                          (v) conducted periodic program 
                        evaluations to assess progress made 
                        towards achieving program goals and 
                        objectives and whether they used 
                        evaluations to improve program goals, 
                        objectives and activities;
                  (B) whether funded community and local 
                education agency programs have been designed 
                and implemented in a manner that specifically 
                targets, if relevant to the program--
                          (i) scientifically based research 
                        variables that are predictive of drug 
                        use or violence;
                          (ii) risk factors that are predictive 
                        of an increased likelihood that young 
                        people will use drugs, alcohol or 
                        tobacco or engage in violence or drop 
                        out of school; or
                          (iii) protective factors, buffers, or 
                        assets that are known to protect 
                        children and youth from exposure to 
                        risk, either by reducing the exposure 
                        to risk factors or by changing the way 
                        the young person responds to risk, and 
                        to increase the likelihood of positive 
                        youth development;
                  (C) whether funded community and local 
                education agency programs have appreciably 
                reduced the level of drug, alcohol and tobacco 
                use and school violence and the presence of 
                firearms at schools; and
                  (D) whether funded community and local 
                educational agency programs have conducted 
                effective parent involvement and voluntary 
                training programs.
          (2) Data collection.--The National Center for 
        Education Statistics shall collect data to determine 
        the incidence and prevalence of social disapproval of 
        drug use and violence in elementary and secondary 
        schools in the States.
          (3) Biennial report.--Not later than January 1, 2003, 
        and every 2 years thereafter, the Secretary shall 
        submit to the President and Congress a report on the 
        findings of the evaluation conducted under paragraph 
        (1) together with the data collected under paragraph 
        (2) and data available from other sources on the 
        incidence and prevalence, age of onset, perception of 
        health risk, and perception of social disapproval of 
        drug use in elementary and secondary schools in the 
        States. The Secretary shall include data submitted by 
        the States pursuant to subsection (b)(2)(B).
  (b) State Report.--
          (1) In general.--By December 1, 2002, and every 2 
        years thereafter, the chief executive officer of the 
        State, in cooperation with the State educational 
        agency, shall submit to the Secretary a report--
                  (A) on the implementation and outcomes of 
                State programs under section 4114 and section 
                4113(b) and local educational agency programs 
                under section 4113(d), as well as an assessment 
                of their effectiveness;
                  (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; and
                  (C) on the State's efforts to inform parents 
                of, and include parents in, violence and drug 
                prevention efforts.
          (2) Special rule.--The report required by this 
        subsection shall be--
                  (A) in the form specified by the Secretary;
                  (B) based on the State's ongoing evaluation 
                activities, and shall include data on the 
                incidence and prevalence, age of onset, 
                perception of health risk, and perception of 
                social disapproval of drug use and violence by 
                youth in schools and communities; and
                  (C) made readily available to the public.
    (c) Local Educational Agency Report.--
          (1) In general.--Each local educational agency 
        receiving funds under this subpart shall submit to the 
        State educational agency such information that the 
        State requires to complete the State report required by 
        subsection (b), including a description of how parents 
        were informed of, and participated in, violence and 
        drug prevention efforts.
          (2) Availability.--Information under paragraph (1) 
        shall be made readily available to the public.
          (3) Provision of documentation.--Not later than 
        January 1 of each year that a State is required to 
        report under subsection (b), the Secretary shall 
        provide to the State education agency all of the 
        necessary documentation required for compliance with 
        this section.

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, 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 post-secondary 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 the voluntary training of 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 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 or to support crisis situations and 
        appropriate response efforts;
          (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 and service-learning 
        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. 4122. NATIONAL COORDINATOR PROGRAM.

    (a) In General.--From amounts available to carry out this 
section under section 4004(3), the Secretary shall provide for 
the establishment of a National Coordinator Program under which 
the Secretary shall award grants to local educational agencies 
for the hiring of drug prevention and school safety program 
coordinators.
    (b) Use of Funds.--Amounts received under a grant under 
subsection (a) shall be used by local educational agencies to 
recruit, hire, and train individuals to serve as drug 
prevention and school safety program coordinators in schools 
with significant drug and school safety problems. Such 
coordinators shall be responsible for developing, conducting, 
and analyzing assessments of drug and crime problems at their 
schools, and administering the safe and drug free grant program 
at such schools.

SEC. 4123. SAFE AND DRUG FREE SCHOOLS AND COMMUNITIES ADVISORY 
                    COMMITTEE.

      (a) Establishment.--
          (1) In general.--There is hereby established an 
        advisory committee to be known as the `Safe and Drug 
        Free Schools and Communities Advisory Committee' 
        (referred to in this section as the `Advisory 
        Committee') to--
                  (A) consult with the Secretary under 
                subsection (b);
                  (B) coordinate Federal school- and community-
                based substance abuse and violence prevention 
                programs and reduce duplicative research or 
                services;
                  (C) develop core data sets and evaluation 
                protocols for safe and drug free school- and 
                community-based programs;
                  (D) provide technical assistance and training 
                for safe and drug free school- and community-
                based programs;
                  (E) provide for the diffusion of 
                scientifically based research safe and drug 
                free school- and community-based programs; and
                  (F) review other regulations and standards 
                developed under this title.
          (2) Composition.--The Advisory Committee shall be 
        composed of representatives from--
                  (A) the Department of Education;
                  (B) the Centers for Disease Control and 
                Prevention;
                  (C) the National Institute on Drug Abuse;
                  (D) the National Institute on Alcoholism and 
                Alcohol Abuse;
                  (E) the Center for Substance Abuse 
                Prevention;
                  (F) the Center for Mental Health Services;
                  (G) the Office of Juvenile Justice and 
                Delinquency Prevention;
                  (H) the Office of National Drug Control 
                Policy; and
                  (I) State and local governments, including 
                education agencies.
          (3) Consultation.--In carrying out its duties under 
        this section, the Advisory Committee shall annually 
        consult with interested State and local coordinators of 
        school- and community-based substance abuse and 
        violence prevention programs and other interested 
        groups.
    (b) Programs.--
          (1) In general.--From amounts made available under 
        section 4004(2) to carry out this subpart, the 
        Secretary, in consultation with the Advisory Committee, 
        shall carry out scientifically based research programs 
        to strengthen the accountability and effectiveness of 
        the State, Governor's, and national programs under this 
        title.
          (2) Grants, contracts or cooperative agreements.--The 
        Secretary shall carry out paragraph (1) directly or 
        through grants, contracts, or cooperative agreements 
        with public and nonprofit private organizations and 
        individuals or through agreements with other Federal 
        agencies.
          (3) Coordination.--The Secretary shall coordinate 
        programs under this section with other appropriate 
        Federal activities.
          (4) Activities.--Activities that may be carried out 
        under programs funded under this section may include--
                  (A) the provision of technical assistance and 
                training, in collaboration with other Federal 
                agencies utilizing their expertise and national 
                and regional training systems, for Governors, 
                State educational agencies and local 
                educational agencies to support high quality, 
                effective programs that--
                          (i) provide a thorough assessment of 
                        the substance abuse and violence 
                        problem;
                          (ii) utilize objective data and the 
                        knowledge of a wide range of community 
                        members;
                          (iii) develop measurable goals and 
                        objectives; and
                          (iv) implement scientifically based 
                        research activities that have been 
                        shown to be effective and that meet 
                        identified needs;
                  (B) the provision of technical assistance and 
                training to foster program accountability;
                  (C) the diffusion and dissemination of best 
                practices and programs;
                  (D) the development of core data sets and 
                evaluation tools;
                  (E) program evaluations;
                  (F) the provision of information on drug 
                abuse education and prevention to the Secretary 
                of Health and Human Services for dissemination 
                by the Clearinghouse for Alcohol and Drug Abuse 
                Information established under section 
                501(d)(16) of the Public Health Service Act; 
                and
                  (G) other activities that meet unmet needs 
                related to the purposes of this title and that 
                are undertaken in consultation with the 
                Advisory Committee.

SEC. 4124. HATE CRIME PREVENTION.

    (a) Grant Authorization.--From funds made available to 
carry out this subpart under section 4004(2) 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 Secretary 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.

SEC. 4125. GRANTS TO COMBAT THE IMPACT OF EXPERIENCING OR WITNESSING 
                    DOMESTIC VIOLENCE ON ELEMENTARY AND SECONDARY 
                    SCHOOL CHILDREN.

    (a) Grants Authorized.--
          (1) Authority.--The Secretary is authorized to award 
        grants and contracts to elementary schools and 
        secondary schools that work with experts to enable the 
        elementary schools and secondary schools--
                  (A) to provide training to school 
                administrators, faculty, and staff, with 
                respect to issues concerning children 
                experiencing domestic violence in dating 
                relationships and witnessing domestic violence, 
                and the impact of the violence described in 
                this subparagraph on children;
                  (B) to provide educational programming to 
                students regarding domestic violence and the 
                impact of experiencing or witnessing domestic 
                violence on children;
                  (C) to provide support services for students 
                and school personnel for the purpose of 
                developing and strengthening effective 
                prevention and intervention strategies with 
                respect to issues concerning children 
                experiencing domestic violence in dating 
                relationships and witnessing domestic violence, 
                and the impact of the violence described in 
                this subparagraph on children; and
                  (D) to develop and implement school system 
                policies regarding appropriate, safe responses 
                identification and referral procedures for 
                students who are experiencing or witnessing 
                domestic violence.
          (2) Award basis.--The Secretary shall award grants 
        and contracts under this section--
                  (A) on a competitive basis; and
                  (B) in a manner that ensures that such grants 
                and contracts are equitably distributed 
                throughout a State among elementary schools and 
                secondary schools located in rural, urban, and 
                suburban areas in the State.
          (3) Policy dissemination.--The Secretary shall 
        disseminate to elementary schools and secondary schools 
        any Department of Education policy guidance regarding 
        the prevention of domestic violence and the impact of 
        experiencing or witnessing domestic violence on 
        children.
    (b) Uses of Funds.--Funds provided under this section may 
be used for the following purposes:
          (1) To provide training for elementary school and 
        secondary school administrators, faculty, and staff 
        that addresses issues concerning elementary school and 
        secondary school students who experience domestic 
        violence in dating relationships or witness or 
        experience family violence, and the impact of such 
        violence on the students.
          (2) To provide education programs for elementary 
        school and secondary school students that are 
        developmentally appropriate for the students' grade 
        levels and are designed to meet any unique cultural and 
        language needs of the particular student populations.
          (3) To develop and implement elementary school and 
        secondary school system policies regarding appropriate, 
        safe responses, identification and referral procedures 
        for students who are experiencing or witnessing 
        domestic violence and to develop and implement policies 
        on reporting and referral procedures for these 
        students.
          (4) To provide the necessary human resources to 
        respond to the needs of elementary school and secondary 
        school students and personnel who are faced with the 
        issue of domestic violence, such as a resource person 
        who is either on-site or on-call, and who is an expert.
          (5) To provide media center materials and educational 
        materials to elementary schools and secondary schools 
        that address issues concerning children who experience 
        domestic violence in dating relationships and witness 
        domestic violence, and the impact of the violence 
        described in this paragraph on the children.
          (6) To conduct evaluations to assess the impact of 
        programs and policies assisted under this section in 
        order to enhance the development of the programs.
  (c) Confidentiality.--Policies, programs, training materials, 
and evaluations developed and implemented under subsection (b) 
shall address issues of safety and confidentiality for the 
victim and the victim's family in a manner consistent with 
applicable Federal and State laws.
  (d) Application.--
          (1) In general.--To be eligible to be awarded a grant 
        or contract under this section for any fiscal year, an 
        elementary school or secondary school, in consultation 
        with an expert, shall submit an application to the 
        Secretary at such time and in such manner as the 
        Secretary shall prescribe.
          (2) Contents.--Each application submitted under 
        paragraph (1) shall--
                  (A) describe the need for funds provided 
                under the grant or contract and the plan for 
                implementation of any of the activities 
                described in subsection (b);
                  (B) describe how the experts shall work in 
                consultation and collaboration with the 
                elementary school or secondary school;
                  (C) provide measurable goals for and expected 
                results from the use of the funds provided 
                under the grant or contract; and
                  (D) incorporate appropriate remuneration for 
                collaborating partners.
  (e) Applicability.--The provisions of this part (other than 
this section) shall not apply to this section.
  (f) Definitions.--In this section:
          (1) Domestic violence.--The term ``domestic 
        violence'' has the meaning given that term in section 
        2003 of title I of the Omnibus Crime Control and Safe 
        Streets Act of 1968 (42 U.S.C. 3796gg-2)).
          (2) Experts.--The term ``experts'' means--
                  (A) experts on domestic violence, sexual 
                assault, and child abuse from the educational, 
                legal, youth, mental health, substance abuse, 
                and victim advocacy fields; and
                  (B) State and local domestic violence 
                coalitions and community-based youth 
                organizations.
          (3) Witness domestic violence.--
                  (A) In general.--The term ``witness domestic 
                violence'' means to witness--
                          (i) an act of domestic violence that 
                        constitutes actual or attempted 
                        physical assault; or
                          (ii) a threat or other action that 
                        places the victim in fear of domestic 
                        violence.
                  (B) Witness.--In subparagraph (A), the term 
                ``witness'' means to--
                          (i) directly observe an act, threat, 
                        or action described in subparagraph 
                        (A), or the aftermath of that act, 
                        threat, or action; or
                          (ii) be within earshot of an act, 
                        threat, or action described in 
                        subparagraph (A), or the aftermath of 
                        that act, threat, or action.

                     Subpart 3--General Provisions

SEC. 4131. DEFINITIONS.

  In 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) Objectively measurable goals.--The term 
        ``objectively measurable goals'' means prevention 
        programming goals defined through use of quantitative 
        epidemiological data measuring the prevalence of 
        alcohol, tobacco, and other drug use, violence, and the 
        prevalence of risk and protective factors predictive of 
        these behaviors, collected through a variety of methods 
        and sources known to provide high quality data.
          (6) Protective factor, buffer, or asset.--The terms 
        ``protective factor'', ``buffer'', and ``asset'' mean 
        any one of a number of the community, school, family, 
        or peer-individual domains that are known, through 
        prospective, longitudinal research efforts, or which 
        are grounded in a well-established theoretical model of 
        prevention, and have been shown to prevent alcohol, 
        tobacco, or illicit drug use, as well as violent 
        behavior, by youth in the community, and which promote 
        positive youth development.
          (7) Risk factor.--The term ``risk factor'' means any 
        one of a number of characteristics of the community, 
        school, family, or peer-individual domains that are 
        known, through prospective, longitudinal research 
        efforts, to be predictive of alcohol, tobacco, and 
        illicit drug use, as well as violent behavior, by youth 
        in the school and community.
          (8) School-aged population.--The term ``school-aged 
        population'' means the population aged five through 17, 
        as determined by the Secretary on the basis of the most 
        recent satisfactory data available from the Department 
        of Commerce.
          (9) School personnel.--The term ``school personnel'' 
        includes teachers, administrators, counselors, social 
        workers, psychologists, nurses, librarians, and other 
        support staff who are employed by a school or who 
        perform services for the school on a contractual basis.

SEC. 4132. MATERIALS.

  (a) ``Illegal 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 illegal 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 secondaryschools 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.

                         PART B--GUN POSSESSION

SEC. 4201. GUN-FREE REQUIREMENTS.

    (a) Short Title.--This part may be cited as the ``Gun-Free 
Schools Act of 1994''.
    (b) Requirements.--
          (1) In general.--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 a local educational 
        agency to modify such expulsion requirement for a 
        student on a case-by-case basis.
          (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 a student's regular school setting from providing 
        educational services to such student in an alternative 
        setting.
          (3) Definition.--For the purpose of this section, the 
        term ``weapon'' means a firearm as such term is defined 
        in section 921(a) of title 18, United States Code.
  (c) Special Rule.--The provisions of this section shall be 
construed in a manner consistent with the Individuals with 
Disabilities Education Act.
  (d) Report to State.--Each local educational agency 
requesting assistance from the State educational agency that is 
to be provided from funds made available to the State under 
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 (d) to the Secretary on an annual 
basis.

SEC. 4202. 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 meanings given the 
terms in section 921(a) of title 18, United States Code.

             PART C--SCHOOL SAFETY AND VIOLENCE PREVENTION

SEC. 4301. SCHOOL SAFETY AND VIOLENCE PREVENTION.

    Subject to this title, and subpart 4 of part B of title V, 
funds made available under this title and such subpart may be 
used for--
          (1) training, including in-service training, for 
        school personnel (including custodians and bus 
        drivers), with respect to--
                  (A) the identification of potential threats, 
                such as illegal weapons and explosive devices;
                  (B) crisis preparedness and intervention 
                procedures; and
                  (C) emergency response;
          (2) training for parents, teachers, school personnel 
        and other interested members of the community regarding 
        the identification and responses to early warning signs 
        of troubled and violent youth;
          (3) innovative scientifically based research 
        delinquency and violence prevention programs, 
        including--
                  (A) school antiviolence programs; and
                  (B) mentoring programs;
          (4) comprehensive security assessments;
          (5) in accordance with section 4116(c), the purchase 
        of school security equipment and technologies such as--
                  (A) metal detectors;
                  (B) electronic locks; and
                  (C) surveillance cameras;
          (6) collaborative efforts with community-based 
        organizations, including faith-based organizations, 
        statewide consortia, and law enforcement agencies, that 
        have demonstrated expertise in providing effective, 
        scientifically based research violence prevention and 
        intervention programs for school-aged children;
          (7) providing assistance to States, local education 
        agencies, or schools to establish school uniform 
        policies;
          (8) school resource officers, including community 
        policing officers; and
          (9) other innovative, local responses that are 
        consistent with reducing incidents of school violence 
        and improving the educational atmosphere of the 
        classroom.

SEC. 4302. SCHOOL UNIFORMS.

    (a) Construction.--Nothing in this part shall be construed 
to prohibit any State, local education agency, or school from 
establishing a school uniform policy.
    (b) Funding.--Subject to this title and subpart 4 of part B 
of title V, funds provided under this title and such subpart 
may be used for establishing a uniform policy.

SEC. 4303. TRANSFER OF SCHOOL DISCIPLINARY RECORDS.

    (a) Nonapplication of Provisions.--This section shall not 
apply to any disciplinary records with respect to a suspension 
or expulsion that are transferred from a private, parochial or 
other nonpublic school, person, institution, or other entity, 
that provides education below the college level.
    (b) Disciplinary Records.--In accordance with the Family 
Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g), 
not later than 2 years after the date of enactment of this 
part, each State receiving Federal funds under this Act shall 
provide an assurance to the Secretary that the State has a 
procedure in place to facilitate the transfer of disciplinary 
records, with respect to a suspension or expulsion, by local 
educational agencies to any private or public elementary school 
or secondary school for any student who is enrolled or seeks, 
intends, or is instructed to enroll, on a full- or part-time 
basis, in the school.

                  PART D--ENVIRONMENTAL TOBACCO SMOKE

SEC. 4401. SHORT TITLE.

  This part may be cited as the ``Pro-Children Act of 2000''.

SEC. 4402. DEFINITIONS.

  As used in this part:
          (1) Children.--The term ``children'' means 
        individuals who have not attained the age of 18.
          (2) Children's services.--The term ``children's 
        services'' means the provision on a routine or regular 
        basis of health, day care, education, or library 
        services--
                  (A) that are funded, after the date of the 
                enactment of the Educational Opportunities Act, 
                directly by the Federal Government or through 
                State or local governments, by Federal grant, 
                loan, loan guarantee, or contract programs--
                          (i) administered by either the 
                        Secretary of Health and Human Services 
                        or the Secretary of Education (other 
                        than services provided and funded 
                        solely under titles XVIII and XIX of 
                        the Social Security Act); or
                          (ii) administered by the Secretary of 
                        Agriculture in the case of a clinic (as 
                        defined in part 246.2 of title 7, Code 
                        of Federal Regulations (or any 
                        corresponding similar regulation or 
                        ruling)) under section 17(b)(6) of the 
                        Child Nutrition Act of 1966; or
                  (B) that are provided in indoor facilities 
                that are constructed, operated, or maintained 
                with such Federal funds, as determined by the 
                appropriate head of a Federal agency in any 
                enforcement action carried out under this part,
        except that nothing in clause (ii) of subparagraph (A) 
        is intended to include facilities (other than clinics) 
        where coupons are redeemed under the Child Nutrition 
        Act of 1966.
          (3) Indoor facility.--The term ``indoor facility'' 
        means a building that is enclosed.
          (4) Person.--The term ``person'' means any State or 
        local subdivision of a State, agency of such State or 
        subdivision, corporation, or partnership that owns or 
        operates or otherwise controls and provides children's 
        services or any individual who owns or operates or 
        otherwise controls and provides such services.
          (5) Secretary.--The term ``Secretary'' means the 
        Secretary of Health and Human Services.

SEC. 4403. NONSMOKING POLICY FOR CHILDREN'S SERVICES.

    (a) Prohibition.--After the date of the enactment of the 
Educational Opportunities Act, no person shall permit smoking 
within any indoor facility owned or leased or contracted for, 
and utilized, by such person for provision of routine or 
regular kindergarten, elementary, or secondary education or 
library services to children.
    (b) Additional Prohibition.--
          (1) In general.--After the date of the enactment of 
        the Educational Opportunities Act, no person shall 
        permit smoking within any indoor facility (or portion 
        of such a facility) owned or leased or contracted for, 
        and utilized by, such person for the provision of 
        regular or routine health care or day care or early 
        childhood development (Head Start) services.
          (2) Exception.--Paragraph (1) shall not apply to--
                  (A) any portion of such facility that is used 
                for inpatient hospital treatment of individuals 
                dependent on, or addicted to, drugs or alcohol; 
                and
                  (B) any private residence.
    (c) Federal Agencies.--
          (1) Kindergarten, elementary, or secondary education 
        or library services.--After the date of enactment of 
        the Educational Opportunities Act, no Federal agency 
        shall permit smoking within any indoor facility in the 
        United States operated by such agency, directly or by 
        contract, to provide routine or regular kindergarten, 
        elementary, or secondary education or library services 
        to children.
          (2) Health or day care or early childhood development 
        services.--
                  (A) In general.--After the date of enactment 
                of the Educational Opportunities Act, no 
                Federal agency shall permit smoking within any 
                indoor facility (or portion of such facility) 
                operated by such agency, directly or by 
                contract, to provide routine or regular health 
                or day care or early childhood development 
                (Head Start) services to children.
                  (B) Exception.--Subparagraph (A) shall not 
                apply to--
                          (i) any portion of such facility that 
                        is used for inpatient hospital 
                        treatment of individuals dependent on, 
                        or addicted to, drugs or alcohol; and
                          (ii) any private residence.
          (3) Application of provisions.--The provisions of 
        paragraph (2) shall also apply to the provision of such 
        routine or regular kindergarten, elementary or 
        secondary education or library services in the 
        facilities described in paragraph (2) not subject to 
        paragraph (1).
    (d) Notice.--The prohibitions in subsections (a) through 
(c) shall be published in a notice in the Federal Register by 
the Secretary (in consultation with the heads of other affected 
agencies) and by such agency heads in funding arrangements 
involving the provision of children's services administered by 
such heads. Such prohibitions shall be effective 90 days after 
such notice is published, or 270 days after the date of the 
enactment of the Educational Opportunities Act, whichever 
occurs first.
    (e) Civil Penalties.--
          (1) In general.--Any failure to comply with a 
        prohibition in this section shall be considered to be a 
        violation of this section and any person subject to 
        such prohibition who commits such violation may be 
        liable to the United States for a civil penalty in an 
        amount not to exceed $1,000 for each violation, or may 
        be subject to an administrative compliance order, or 
        both, as determined by the Secretary. Each day a 
        violation continues shall constitute a separate 
        violation. In the case of any civil penalty assessed 
        under this section, the total amount shall not exceed 
        the amount of Federal funds received by such person for 
        the fiscal year in which the continuing 
        violationoccurred. For the purpose of the prohibition 
        in subsection (c), the term ``person'', as used in this 
        paragraph, shall mean the head of the applicable 
        Federal agency or the contractor of such agency 
        providing the services to children.
          (2) Administrative proceeding.--A civil penalty may 
        be assessed in a written notice, or an administrative 
        compliance order may be issued under paragraph (1), by 
        the Secretary only after an opportunity for a hearing 
        in accordance with section 554 of title 5, United 
        States Code. Before making such assessment or issuing 
        such order, or both, the Secretary shall give written 
        notice of the assessment or order to such person by 
        certified mail with return receipt and provide 
        information in the notice of an opportunity to request 
        in writing, not later than 30 days after the date of 
        receipt of such notice, such hearing. The notice shall 
        reasonably describe the violation and be accompanied 
        with the procedures for such hearing and a simple form 
        that may be used to request such hearing if such person 
        desires to use such form. If a hearing is requested, 
        the Secretary shall establish by such certified notice 
        the time and place for such hearing, which shall be 
        located, to the greatest extent possible, at a location 
        convenient to such person. The Secretary (or the 
        Secretary's designee) and such person may consult to 
        arrange a suitable date and location where appropriate.
          (3) Circumstances affecting penalty or order.--In 
        determining the amount of the civil penalty or the 
        nature of the administrative compliance order, the 
        Secretary shall take into account, as appropriate--
                  (A) the nature, circumstances, extent, and 
                gravity of the violation;
                  (B) with respect to the violator, any good 
                faith efforts to comply, the importance of 
                achieving early and permanent compliance, the 
                ability to pay or comply, the effect of the 
                penalty or order on the ability to continue 
                operation, any prior history of the same kind 
                of violation, the degree of culpability, and 
                any demonstration of willingness to comply with 
                the prohibitions of this section in a timely 
                manner; and
                  (C) such other matters as justice may 
                require.
          (4) Modification.--The Secretary may, as appropriate, 
        compromise, modify, or remit, with or without 
        conditions, any civil penalty or administrative 
        compliance order. In the case of a civil penalty, the 
        amount, as finally determined by the Secretary or 
        agreed upon in compromise, may be deducted from any 
        sums that the United States or the agencies or 
        instrumentalities of the United States owe to the 
        person against whom the penalty is assessed.
          (5) Petition for review.--Any person aggrieved by a 
        penalty assessed or an order issued, or both, by the 
        Secretary under this section may file a petition for 
        judicial review of the order with the United States 
        Court of Appeals for the District of Columbia Circuit 
        or for any other circuit in which the person resides or 
        transacts business. Such person shall provide a copy of 
        the petition to the Secretary or the Secretary's 
        designee. The petition shall be filed within 30 days 
        after the Secretary's assessment or order, or both, are 
        final and have been provided to such person by 
        certified mail. The Secretary shall promptly provide to 
        the court a certified copy of the transcript of any 
        hearing held under this section and a copy of the 
        notice or order.
          (6) Failure to comply.--If a person fails to pay an 
        assessment of a civil penalty or comply with an order, 
        after the assessment or order, or both, are final under 
        this section, or after a court has entered a final 
        judgment under paragraph (5) in favor of the Secretary, 
        the Attorney General, at the request of the Secretary, 
        shall recover the amount of the civil penalty (plus 
        interest at prevailing rates from the day the 
        assessment or order, or both, are final) or enforce the 
        order in an action brought in the appropriate district 
        court of the United States. In such action, the 
        validity and appropriateness of the penalty or order or 
        the amount of the penalty shall not be subject to 
        review.

SEC. 4404. PREEMPTION.

    Nothing in this part is intended to preempt any provision 
of law of a State or political subdivision of a State that is 
more restrictive than a provision of this part.

                       [TITLE V--PROMOTING 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 background.

[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 underthis 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) Transporation.--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 B--WOMEN'S EDUCATIONAL EQUITY

[SEC. 5201. SHORT TITLE; FINDINGS.

    [(a) Short Title.--This part may be cited as the ``Women's 
Educational Equity Act of 1994''.
    [(b) Findings.--The Congress finds that--
          [(1) since the enactment of title IX of the Education 
        Amendments of 1972, women and girls have made strides 
        in educational achievement and in their ability to 
        avail themselves of educational opportunities;
          [(2) because of funding provided under the Women's 
        Educational Equity Act, more curricula, training, and 
        other educational materials concerning educational 
        equity for women and girls are available for national 
        dissemination;
          [(3) teaching and learning practices in the United 
        States are frequently inequitable as such practices 
        relate to women and girls, for example--
                  [(A) sexual harassment, particularly that 
                experienced by girls, undermines the ability of 
                schools to provide a safe and equitable 
                learning or workplace environment;
                  [(B) classroom textbooks and other 
                educational materials do not sufficiently 
                reflect the experiences, achievements, or 
                concerns of women and, in most cases, are not 
                written by women or persons of color;
                  [(C) girls do not take as many mathematics 
                and science courses as boys, girls lose 
                confidence in their mathematics and science 
                ability as girls move through adolescence, and 
                there are few women role models in the 
                sciences; and
                  [(D) pregnant and parenting teenagers are at 
                high risk for dropping out of school and 
                existing dropout prevention programs do not 
                adequately address the needs of such teenagers;
          [(4) efforts to improve the quality of public 
        education also must include efforts to ensure equal 
        access to quality education programs for all women and 
        girls;
          [(5) Federal support should address not only research 
        and development of innovative model curricula and 
        teaching and learning strategies to promote gender 
        equity, but should also assist schools and local 
        communities implement gender equitable practices;
          [(6) Federal assistance for gender equity must be 
        tied to systemic reform, involve collaborative efforts 
        to implement effective gender practices at the local 
        level, and encourage parental participation; and
          [(7) excellence in education, high educational 
        achievements and standards, and the full participation 
        of women and girls in American society, cannot be 
        achieved without educational equity for women and 
        girls.

[SEC. 5202. STATEMENT OF PURPOSES.

    [It is the purpose of this part--
          [(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. 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.
    [(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, 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, socio-economic 
                        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 toensure 
                        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 implemen-tation 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; in-cluding community 
                                colleges; and
                                  [(III) innovative approaches 
                                to school-commu-nity 
                                partnerships for educational 
                                equity.
                  [(B) for research and development, which 
                shall be co-ordinated with each of the research 
                institutes of the Office of Educational 
                Research and Improvement to avoid dupli-cation 
                of research efforts, designed to advance gender 
                eq-uity nationwide and to help make policies 
                and practices in educational agencies and 
                institutions, and local commu-nities, gender 
                equitable, including--
                          [(i) research and development of 
                        innovative strate-gies and model 
                        training programs for teachers and 
                        other education personnel;
                          [(ii) the development of high quality 
                        and chal-lenging assessment instruments 
                        that are nondiscrim-inatory;
                          [(iii) the development and evaluation 
                        of model cur-ricula, textbooks, 
                        software, and other educational 
                        materials to ensure the absence of 
                        gender stereotyping and bias;
                          [(iv) the development of instruments 
                        and proce-dures that employ new and 
                        innovative strategies to as-sess 
                        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;
                          [(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. APPLICATIONS.

    [An application under this part shall--
          [(1) set forth policies and procedures that will 
        ensure a comprehensive evaluation of the activities 
        assisted under this part, 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 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 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)(1), demonstrate how the applicant will foster 
        partnerships and, where applicable, share resources 
        with State educational agen-cities, local educational 
        agencies, institutions of higher edu-cation, community-
        based organizations (including organizations serving 
        women), parent, teacher, and student groups, busi-
        nesses or other recipients of Federal educational 
        funding which may include State literacy resource 
        centers;
          [(6) for applications for assistance under section 
        5203(b)(1), demonstrate how parental involvement in the 
        project will be encouraged; and
          [(7) for applications for assistance under section 
        5203(b)(1), describe plans for continuation of the 
        activities assisted under this part with local support 
        following completion of the grant period and 
        termination of Federal support under this part.

[SEC. 5205. 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) to ensure that 
        funds under this part are used for programs that most 
        effectively will achieve the purposes of this part.
          [(2) Criteria.--The criteria described in subsection 
        (a) may include the extent to which the activities 
        assisted under this part--
                  [(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 has terminated.
    [(b) Priorities.--In approving applications under this 
part, the Secretary may give special consideration to 
applications--
          [(1) submitted by applicants that have not received 
        assistance under this part 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 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 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--
          [(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 shall be construed 
as prohibiting men and boys from participating in any programs 
or activities assisted with funds under this part.

[SEC. 5206. REPORT.

    [The Secretary, not later than January 1, 1999, 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. ADMINISTRATION.

    [(a) Evaluation and Dissemination.--The Secretary shall 
evaluate in accordance with section 14701, and disseminate, 
materials and programs developed under this part and shall 
report to the Congress regarding such evaluation materials and 
programs not later than January 1, 1998.
    [(b) Program Operations.--The Secretary shall ensure that 
the activities assisted under this part are administered within 
the Department by a person who has recognized professional 
qualifications and experience in the field of gender equity 
education.

[SEC. 5208. AUTHORIZATION OF APPROPRIATIONS.

    [For the purpose of carrying out this part, 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, 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)(1).

         [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 theirelementary 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 cost.--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 for 
        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, equip-ment 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 fea-sible, 
        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 sec-ondary 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 con-siderations 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, 
        in-cluding 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 
        con-tracting 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 pro-grams;
          [(7) the development and implementation of programs 
        for traditionally underserved groups of students;
          [(8) the implementation of activities which will 
        improve stu-dent 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 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 education 
        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 of 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 school; and
                  [(B) the number of children enrolled in 
                private non-profit 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 education agencies 
        to contact, on an annual basis, appropriate officials 
        from private non-profit 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 
        sub-section (a) shall be adjusted, in accordance with 
        criteria approved by the Secretary under subparagraph 
        (B), to providehigher 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) Distrubution.--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 fiscalyear 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 non-profit 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 education 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 of July 1 of such fiscal year and shall remain 
available for obligation until the end of the subsequent fiscal 
year.

  [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 
        an 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 
        AmericanLanguages 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 and 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 
        under standing;
          [(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 each 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 operatedor 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) Eligibility 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 improved 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) Authorized.--(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, toprovide 
                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 
                purpose 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 
require-ments 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 pro-gram.
    [(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 aca-demic standards; and
                          [(v) promotes coordination of 
                        services for the chil-dren and youth of 
                        limited-English proficiency to be 
                        served and their families.
                  [(C) A description, if appropriate, of the 
                applicant's col-laborative activities with 
                institutions of higher education, community-
                based organizations, local or State educational 
                agencies, private schools, nonprofit 
                organizations, or busi-nesses 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 teach-ers in the proposed program that, 
                individually or in com-bination, 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 chil-dren 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 pri-
                        vate 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 applica-ble; 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 consulta-tion 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 deter-
mines that--
          [(1) the program will use qualified personnel, 
        including per-sonnel 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 sec-ondary schools have been taken into 
        account through consulta-tion 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 consulta-tion 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 havebeen 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 
provisionof 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 researchersand 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 forms, 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) Exeception.--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 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 use in a manner consist 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 peroid 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, public 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 department 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 any 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 need 
        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(2)(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 
        enchances 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.--Exept 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.--Not withstanding 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 youthwhich 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 man-ner, 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, in-cluding a description of how local 
        educational agencies receiv-ing funds under this part 
        will use such funds to meet such pur-poses 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 re-ceiving 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 
        excep-tion of payments reserved under section 7304(e), 
        will be dis-tributed 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 nec-essary 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 sec-tion 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 no-tice, 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) basis 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 programcoordination 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 ``limitedEnglish 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 give 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 1964because 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 V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

                      PART A--PUBLIC SCHOOL CHOICE

                       Subpart 1--Charter Schools

SEC. 5111. 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. 5112. PROGRAM AUTHORIZED.

    (a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to 
section 5113 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 5113, the 
Secretary may award a grant to an eligible applicant that 
serves such State and has an application approved pursuant to 
section 5113(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 
                5114(f)(6)(B).
    (d) Limitation.--A charter school may not receive--
          (1) more than one grant for activities described in 
        subparagraphs (A) and (B) of subsection (c)(2); or
          (2) more than one grant for activities under 
        subparagraph (C) of subsection (c)(2).
(e) Priority Treatment.--
          (1) In general.--In awarding grants under this 
        subpart for fiscal year 2002 or any succeeding fiscal 
        year from any funds appropriated under section 5121, 
        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. 5113. 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 5112(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 5112(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 5114(e).

SEC. 5114. 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 undersection 5113(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 5112(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 5113(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 5112(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 
5120(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 
                        formeasuring 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. 5115. 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 5113;
                  (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. 5116. 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. 5117. SOLICITATION OF INPUT FROM CHARTER SCHOOL OPERATORS.

  To the extent practicable, the Secretary shall ensure that 
administrators, teachers, and other individuals directly 
involved in the operation of charter schools are consulted in 
the development of any rules or regulations required to 
implement this subpart, as well as in the development of any 
rules or regulations relevant to charter schools that are 
required to implement part A of title I, the Individuals with 
Disabilities Education Act (20 U.S.C. 1400 et seq.), or any 
other program administered by theSecretary that provides 
education funds to charter schools or regulates the activities 
of charter schools.

SEC. 5118. RECORDS TRANSFER.

  State educational agencies and local educational agencies, to 
the extent practicable, shall ensure that a student's records 
and, if applicable, a student's individualized education 
program as defined in section 602(11) of the Individuals with 
Disabilities Education Act, are transferred to a charter school 
upon the transfer of the student to the charter school, and to 
another public school upon the transfer of the student from a 
charter school to another public school, in accordance with 
applicable State law.

SEC. 5119. 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. 5120. DEFINITIONS.

  In this subpart:
          (1) Charter school.--The term ``charter school'' 
        means a public school that--
                  (A) in accordance with a specific State 
                statute authorizing the granting of charters to 
                schools, is 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, if more students 
                apply for admission than can be accommodated;
                  (I) agrees to comply with the same Federal 
                and State audit requirements as do other 
                elementary schools and secondary schools in the 
                State, unless such requirements are 
                specifically waived for the purpose of this 
                program;
                  (J) meets all applicable Federal, State, and 
                local health and safety requirements;
                  (K) operates in accordance with State law; 
                and
                  (L) has a written performance contract with 
                the authorized public chartering agency in the 
                State that includes a description of how 
                student performance will be measured in charter 
                schools pursuant to State assessments that are 
                required of other schools and pursuant to any 
                other assessments mutually agreeable to the 
                authorized public chartering agency and the 
                charter school.
          (2) Developer.--The term ``developer'' means an 
        individual or group of individuals (including a public 
        or private nonprofit organization), which may include 
        teachers, administrators and other school staff, 
        parents, or other members of the local community in 
        which a charter school project will be carried out.
          (3) Eligible applicant.--The term ``eligible 
        applicant'' means an authorized public chartering 
        agency participating in a partnership with a developer 
        to establish a charter school in accordance with this 
        subpart.
          (4) Authorized public chartering agency.--The term 
        ``authorized public chartering agency'' means a State 
        educational agency, local educational agency, or other 
        public entity that has the authority pursuant to State 
        law and approved by the Secretary to authorize or 
        approve a charter school.

SEC. 5121. AUTHORIZATION OF APPROPRIATIONS.

  For the purpose of carrying out this subpart, there are 
authorized to be appropriated $190,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding 
fiscal years.

                  Subpart 2--Magnet Schools Assistance

SEC. 5131. FINDINGS AND STATEMENT OF PURPOSE.

  (a) Findings.--Congress makes the following findings:
          (1) Magnet schools are a significant part of our 
        Nation's effort to achieve voluntary desegregation of 
        our Nation's schools.
          (2) It is in the national interest to continue the 
        Federal Government's support of school districts that 
        are implementing court-ordered desegregation plans and 
        school districts that are voluntarily seeking to foster 
        meaningful interaction among students of different 
        racial and ethnic backgrounds.
          (3) Desegregation can help ensure that all students 
        have equitable access to high-quality education that 
        will prepare them to function well in a technologically 
        oriented and highly competitive society comprised of 
        people from many different racial and ethnic 
        backgrounds.
          (4) It is in the national interest to desegregate and 
        diversify those schools in our Nation that are 
        racially, economically, linguistically, or ethnically 
        segregated. Such segregation exists between minority 
        and non-minority students as well as among students of 
        different minority groups.
    (b) Statement of Purpose.--The purpose of this subpart 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 schools and 
        secondary schools with substantial proportions of 
        minority students which shall assist in the efforts of 
        the United States to achieve voluntary desegregation in 
        public schools;
          (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 
        and local content standards and challenging State and 
        local student performance standards;
          (3) the development and design of innovative 
        educational methods and practices;
          (4) courses of instruction within magnet schools that 
        will substantially strengthen the knowledge of academic 
        subjects and the grasp of tangible and marketable 
        vocational, technological and career skills of students 
        attending such schools;
          (5) improving the capacity of local educational 
        agencies, including through professional development, 
        to continue operating magnet schools at a high 
        performance level after Federal funding is terminated; 
        and
          (6) ensuring that all students enrolled in the magnet 
        school program have equitable access to high quality 
        education that will enable the students to succeed 
        academically and continue with post secondary education 
        or productive employment.

SEC. 5132. PROGRAM AUTHORIZED.

    The Secretary, in accordance with this subpart, is 
authorized to make grants to eligible local educational 
agencies, and consortia of such agencies where appropriate, to 
carry out the purpose of this subpart 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. 5133. DEFINITION.

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

SEC. 5134. ELIGIBILITY.

    A local educational agency, or consortium of such agencies 
where appropriate, is eligible to receive assistance under this 
subpart to carry out the purposes of this subpart if such 
agency or consortium--
          (1) is implementing a plan undertaken pursuant to a 
        final order issued by a court of the United States, or 
        a court of any State, or any other State agency or 
        official of competent jurisdiction, that requires the 
        desegregation of minority-group-segregated children or 
        faculty in the elementary schools and secondary schools 
        of such agency; or
          (2) without having been required to do so, has 
        adopted and is implementing, or will, if assistance is 
        made available to such local educational agency or 
        consortium of such agencies under this subpart, 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. 5135. APPLICATIONS AND REQUIREMENTS.

    (a) Applications.--An eligible local educational agency or 
consortium of such agencies desiring to receive assistance 
under this subpart shall submit an application to the Secretary 
at such time, in such manner, and containing such information 
and assurances as the Secretary may reasonably require.
    (b) Information and Assurances.--Each such application 
shall include--
          (1) a description of--
                  (A) how assistance made available under this 
                subpart 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 
                subpart is no longer available, including, if 
                applicable, an explanation of why magnet 
                schools established or supported by the 
                applicant with funds under this subpart cannot 
                be continued without the use of funds under 
                this subpart;
                  (D) how funds under this subpart will be used 
                to implement services and activities thatare 
                consistent with other programs under this Act, 
                and other Acts, as appropriate, in accordance 
                with the provisions of section 5506; and
                  (E) the criteria to be used in selecting 
                students to attend the proposed magnet school 
                project; and
          (2) assurances that the applicant will--
                  (A) use funds under this subpart for the 
                purposes specified in section 5131(b);
                  (B) employ State certified or licensed 
                teachers in the courses of instruction assisted 
                under this subpart 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 
                project equitable consideration for placement 
                in the project, consistent with desegregation 
                guidelines and the capacity of the project to 
                accommodate these students.
    (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. 5136. PRIORITY.

    In approving applications under this subpart, 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 and local 
        content and student performance standards; and
          (5) propose activities, which may include 
        professional development, that will build local 
        capacity to operate the magnet school program once 
        Federal assistance has terminated.

SEC. 5137. USE OF FUNDS.

    (a) In General.--Grant funds made available under this 
subpart 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 school 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;
          (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 subpart;
          (5) to include professional development, which 
        professional development shall build the agency's or 
        consortium's capacity to operate the magnet school once 
        Federal assistance has terminated;
          (6) to enable the local educational agency or 
        consortium to have more flexibility in the 
        administration of a magnet school program in order to 
        serve students attending a school who are not enrolled 
        in a magnet school program; and
          (7) to enable the local educational agency or 
        consortium to have flexibility in designing magnet 
        schools for students at all grades.
    (b) Special Rule.--Grant funds under this subpart 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, 
technological and career skills.

SEC. 5138. PROHIBITION.

    Grants under this subpart may not be used for 
transportation or any activity that does not augment academic 
improvement.

SEC. 5139. LIMITATIONS.

    (a) Duration of Awards.--A grant under this subpart shall 
be awarded for a period that shall not exceed 3 fiscal years.
    (b) Limitation on Planning Funds.--A local educational 
agency may expend for planning (professional development shall 
not be considered as planning for purposes of this subsection) 
not more than 50 percent of the funds received under this 
subpart for the first year of the project, 25 percent of such 
funds for the second such year, and 15 percent of such funds 
for the third such year.
    (c) Amount.--No local educational agency or consortium 
awarded a grant under this subpart shall receive more than 
$4,000,000 under this subpart in any 1 fiscal year.
    (d) Timing.--To the extent practicable, the Secretary shall 
award grants for any fiscal year under this subpart not later 
than June 1 of the applicable fiscal year.

SEC. 5140. 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 5134 to enable such agencies or consortia to conduct 
innovative programs that--
          (1) involve innovative strategies other than magnet 
        schools, such as neighborhood or community model 
        schools, to support desegregation of schools and to 
        reduce achievement gaps;
          (2) assist in achieving systemic reforms and 
        providing all students the opportunity to meet 
        challenging State and local content standards and 
        challenging State and local student performance 
        standards; and
          (3) include innovative educational methods and 
        practices that--
                (A) are organized around a special emphasis, 
                theme, or concept; and
                (B) involve extensive parent and community 
                involvement.
    (b) Applicability.--Sections 5131(b), 5132, 5135, 5136, and 
5137, 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 
5142(a) for each fiscal year to award grants under this 
section.

SEC. 5141. EVALUATIONS.

    (a) Reservation.--The Secretary may reserve not more than 2 
percent of the funds appropriated under section 5142(a) for any 
fiscal year to carry out evaluations of projects assisted under 
this subpart and to provide technical assistance for grant 
recipients under this subpart.
    (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 schools and 
        secondary schools with substantial proportions of 
        minority students;
          (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; and
          (5) the extent to which magnet school programs 
        continue once grant assistance under this subpart is 
        terminated.
    (c) Dissemination.--The Secretary shall collect and 
disseminate to the general public information on successful 
magnet school programs.

SEC. 5142. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

    (a) Authorization.--For the purpose of carrying out this 
subpart, there are authorized to be appropriated$125,000,000 
for fiscal year 2002 and such sums as may be necessary for each 
of the 6 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 subpart in the preceding fiscal year.

                    Subpart 3--Public School Choice

SEC. 5151. PUBLIC SCHOOL CHOICE.

    (a) Allotment to State.--From the amount appropriated under 
subsection (e) for a fiscal year, the Secretary shall allot to 
each State an amount that bears the same relation to the amount 
as the amount the State received under section 1122 for the 
preceding year bears to the amount received by all States under 
section 1122 for the preceding year.
    (b) State Use of Funds.--Each State receiving an allotment 
under subsection (a) shall use 100 percent of the allotted 
funds for allocations to local educational agencies to enable 
the local educational agencies to carry out school improvement 
under section 1116(c).
    (c) Public School Choice.--Subject to subsection (d), each 
local educational agency receiving an allocation under 
subsection (b), and each local educational agency that is 
within a State that receives funds under part A of title I 
(other than a local educational agency within a State that 
receives a minimum grant under section 1124(d) or 
1124A(a)(1)(B) of such Act), shall provide all students 
enrolled in a school identified under section 1116(c) and 
served by the local educational agency with the option to 
transfer to another public school within the school district 
served by the local educational agency, including a public 
charter school, that has not been identified for school 
improvement under section 1116(c), unless such option to 
transfer is prohibited by State law or local law (which 
includes school board-approved local educational agency 
policy).
    (d) Special Rule.--If a local educational agency 
demonstrates to the satisfaction of the State educational 
agency that the local educational agency lacks the capacity to 
provide all students with the option to transfer to another 
public school within the school district served by the local 
educational agency in accordance with subsection (c), and gives 
notice (consistent with State and local law) to the parents of 
children affected that it is not possible to accommodate the 
transfer request of every student, then the local educational 
agency shall permit as many students as possible (who shall be 
selected by the local educational agency on an equitable basis) 
to transfer to a public school within such school district that 
has not been identified for school improvement under section 
1116(c).
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $225,000,000 for 
fiscal year 2002 and each of the 6 succeeding fiscal years.''.

                          PART B--FLEXIBILITY

             Subpart 1--Education Flexibility Partnerships

SEC. 5201. SHORT TITLE.

    This subpart may be cited as the ``Education Flexibility 
Partnership Act of 2001''.

SEC. 5202. DEFINITIONS.

    In this subpart:
          (1) Eligible school attendance area; school 
        attendance area.--The terms ``eligible school 
        attendance area'' and ``school attendance area'' have 
        the meanings given the terms in section 1113(a)(2).
          (2) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, and each 
        outlying area.

SEC. 5203. EDUCATION FLEXIBILITY PARTNERSHIP.

    (a) Educational Flexibility Program.--
          (1) Program authorized.--
                  (A) In general.--The Secretary may carry out 
                an educational flexibility program under which 
                the Secretary authorizes a State educational 
                agency that serves an eligible State to waive 
                statutory or regulatory requirements applicable 
                to one or more programs described in subsection 
                (b), other than requirements described in 
                subsection (c), for any local educational 
                agency or school within the State.
                  (B) Designation.--Each eligible State 
                participating in the program described in 
                subparagraph (A) shall be known as an ``Ed-Flex 
                Partnership State''.
          (2) Eligible state.--For the purpose of this section 
        the term ``eligible State'' means a State that--
                  (A) has--
                          (i) developed and implemented the 
                        challenging State content standards, 
                        challenging State student performance 
                        standards, and aligned assessments 
                        described in section 1111(b), and for 
                        which local educational agencies in the 
                        State are producing the individual 
                        school performance profiles required by 
                        section 1116(a)(3); or
                          (ii)(I) developed and implemented the 
                        content standards described in clause 
                        (i);
                          (II) developed and implemented 
                        interim assessments; and
                          (III) made substantial progress (as 
                        determined by the Secretary) toward 
                        developing and implementing the 
                        performance standards and final aligned 
                        assessments described in clause (i), 
                        and toward having local educational 
                        agencies in the State produce the 
                        profiles described in clause (i);
                  (B) holds local educational agencies and 
                schools accountable for meeting the educational 
                goals described in the local applications 
                submitted under paragraph (4), and for engaging 
                in technical assistance and corrective actions 
                consistent with section 1116, for the local 
                educational agencies and schools that do not 
                make adequate yearly progress as described in 
                section 1111(b)(2); and
                  (C) waives State statutory or regulatory 
                requirements relating to education while 
                holdinglocal educational agencies or schools 
                within the State that are affected by such 
                waivers accountable for the performance of the 
                students who are affected by such waivers.
          (3) State application.--
                  (A) In general.--Each State educational 
                agency desiring to participate in the 
                educational flexibility program under this 
                section 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 demonstrate that the eligible State has 
                adopted an educational flexibility plan for the 
                State that includes--
                          (i) a description of the process the 
                        State educational agency will use to 
                        evaluate applications from local 
                        educational agencies or schools 
                        requesting waivers of--
                                  (I) Federal statutory or 
                                regulatory requirements as 
                                described in paragraph (1)(A); 
                                and
                                  (II) State statutory or 
                                regulatory requirements 
                                relating to education;
                          (ii) a detailed description of the 
                        State statutory and regulatory 
                        requirements relating to education that 
                        the State educational agency will 
                        waive;
                          (iii) a description of clear 
                        educational objectives the State 
                        intends to meet under the educational 
                        flexibility plan;
                          (iv) a description of how the 
                        educational flexibility plan is 
                        consistent with and will assist in 
                        implementing the State comprehensive 
                        reform plan or, if a State does not 
                        have a comprehensive reform plan, a 
                        description of how the educational 
                        flexibility plan is coordinated with 
                        activities described in section 
                        1111(b);
                          (v) a description of how the State 
                        educational agency will evaluate, 
                        consistent with the requirements of 
                        title I, the performance of students in 
                        the schools and local educational 
                        agencies affected by the waivers; and
                          (vi) a description of how the State 
                        educational agency will meet the 
                        requirements of paragraph (8).
                  (B) Approval and considerations.--The 
                Secretary may approve an application described 
                in subparagraph (A) only if the Secretary 
                determines that such application demonstrates 
                substantial promise of assisting the State 
                educational agency and affected local 
                educational agencies and schools within the 
                State in carrying out comprehensive educational 
                reform, after considering--
                          (i) the eligibility of the State as 
                        described in paragraph (2);
                          (ii) the comprehensiveness and 
                        quality of the educational flexibility 
                        plan described in subparagraph (A);
                          (iii) the ability of the educational 
                        flexibility plan to ensure 
                        accountability for the activities and 
                        goals described in such plan;
                          (iv) the degree to which the State's 
                        objectives described in subparagraph 
                        (A)(iii)--
                                  (I) are clear and have the 
                                ability to be assessed; and
                                  (II) take into account the 
                                performance of local 
                                educational agencies or 
                                schools, and students, 
                                particularly those affected by 
                                waivers;
                          (v) the significance of the State 
                        statutory or regulatory requirements 
                        relating to education that will be 
                        waived; and
                          (vi) the quality of the State 
                        educational agency's process for 
                        approving applications for waivers of 
                        Federal statutory or regulatory 
                        requirements as described in paragraph 
                        (1)(A) and for monitoring and 
                        evaluating the results of such waivers.
          (4) Local application.--
                  (A) In general.--Each local educational 
                agency or school requesting a waiver of a 
                Federal statutory or regulatory requirement as 
                described in paragraph (1)(A) and any relevant 
                State statutory or regulatory requirement from 
                a State educational agency shall submit an 
                application to the State educational agency at 
                such time, in such manner, and containing such 
                information as the State educational agency may 
                reasonably require. Each such application 
                shall--
                          (i) indicate each Federal program 
                        affected and each statutory or 
                        regulatory requirement that will be 
                        waived;
                          (ii) describe the purposes and 
                        overall expected results of waiving 
                        each such requirement;
                          (iii) describe, for each school year, 
                        specific, measurable, educational goals 
                        for each local educational agency or 
                        school affected by the proposed waiver, 
                        and for the students served by the 
                        local educational agency or school who 
                        are affected by the waiver;
                          (iv) explain why the waiver will 
                        assist the local educational agency or 
                        school in reaching such goals; and
                          (v) in the case of an application 
                        from a local educational agency, 
                        describe how the local educational 
                        agency will meet the requirements of 
                        paragraph (8).
                  (B) Evaluation of applications.--A State 
                educational agency shall evaluate an 
                application submitted under subparagraph (A) in 
                accordance with the State's educational 
                flexibility plan described in paragraph (3)(A).
                  (C) Approval.--A State educational agency 
                shall not approve an application for a waiver 
                under this paragraph unless--
                          (i) the local educational agency or 
                        school requesting such waiver has 
                        developed a local reform plan that is 
                        applicable to such agency or school, 
                        respectively;
                          (ii) the waiver of Federal statutory 
                        or regulatory requirements as described 
                        in paragraph (1)(A) will assist the 
                        local educational agency or school in 
                        reaching its educational goals, 
                        particularly goals with respect to 
                        school and student performance; and
                          (iii) the State educational agency is 
                        satisfied that the underlying purposes 
                        of the statutory requirements of each 
                        program for which a waiver is granted 
                        will continue to be met.
                  (D) Termination.--The State educational 
                agency shall annually review the performance of 
                any local educational agency or school granted 
                a waiver of Federal statutory or regulatory 
                requirements as described in paragraph (1)(A) 
                in accordance with the evaluation requirement 
                described in paragraph (3)(A)(v), and shall 
                terminate any waiver granted to the local 
                educational agency or school if the State 
                educational agency determines, after notice and 
                an opportunity for a hearing, that the local 
                educational agency or school's performance with 
                respect to meeting the accountability 
                requirement described in paragraph (2)(C) and 
                the goals described in paragraph (4)(A)(iii)--
                          (i) has been inadequate to justify 
                        continuation of such waiver; or
                          (ii) has decreased for two 
                        consecutive years, unless the State 
                        educational agency determines that the 
                        decrease in performance was justified 
                        due to exceptional or uncontrollable 
                        circumstances.
          (5) Oversight and reporting.--
                  (A) Oversight.--Each State educational agency 
                participating in the educational flexibility 
                program under this section shall annually 
                monitor the activities of local educational 
                agencies and schools receiving waivers under 
                this section.
                  (B) State reports.--
                          (i) Annual reports.--The State 
                        educational agency shall submit to the 
                        Secretary an annual report on the 
                        results of such oversight and the 
                        impact of the waivers on school and 
                        student performance.
                          (ii) Performance data.--Not later 
                        than 2 years after the date a State is 
                        designated an Ed-Flex Partnership 
                        State, each such State shall include, 
                        as part of the State's annual report 
                        submitted under clause (i), data 
                        demonstrating the degree to which 
                        progress has been made toward meeting 
                        the State's educational objectives. The 
                        data, when applicable, shall include--
                                  (I) information on the total 
                                number of waivers granted for 
                                Federal and State statutory and 
                                regulatory requirements under 
                                this section, including the 
                                number of waivers granted for 
                                each type of waiver;
                                  (II) information describing 
                                the effect of the waivers on 
                                the implementation of State and 
                                local educational reforms 
                                pertaining to school and 
                                student performance;
                                  (III) information describing 
                                the relationship of the waivers 
                                to the performance of schools 
                                and students affected by the 
                                waivers; and
                                  (IV) an assurance from State 
                                program managers that the data 
                                reported under this section are 
                                reliable, complete, and 
                                accurate, as defined by the 
                                State, or a description of a 
                                plan for improving the 
                                reliability, completeness, and 
                                accuracy of such data as 
                                defined by the State.
                  (C) Secretary's reports.--The Secretary, not 
                later than 2 years after the date of enactment 
                of the Education Flexibility Partnership Act of 
                1999 and annually thereafter, shall--
                          (i) make each State report submitted 
                        under subparagraph (B) available to 
                        Congress and the public; and
                          (ii) submit to Congress a report that 
                        summarizes the State reports and 
                        describes the effects that the 
                        educational flexibility program under 
                        this section had on the implementation 
                        of State and local educational reforms 
                        and on the performance of students 
                        affected by the waivers.
          (6) Duration of federal waivers.--
                  (A) In general.--The Secretary shall not 
                approve the application of a State educational 
                agency under paragraph (3) for a period 
                exceeding 5 years, except that the Secretary 
                may extend such period if the Secretary 
                determines that such agency's authority to 
                grant waivers--
                          (i) has been effective in enabling 
                        such State or affected local 
                        educational agencies or schools to 
                        carry out their State or local reform 
                        plans and to continue to meet the 
                        accountability requirement described in 
                        paragraph (2)(C); and
                          (ii) has improved student 
                        performance.
                  (B) Performance review.--Three years after 
                the date a State is designated an Ed-Flex 
                Partnership State, the Secretary shall review 
                the performance of the State educational agency 
                in granting waivers of Federal statutory or 
                regulatory requirements as described in 
                paragraph (1)(A) and shall terminate such 
                agency's authority to grant such waivers if the 
                Secretary determines, after notice and an 
                opportunity for a hearing, that such agency's 
                performance (including performance with respect 
                to meeting the objectives described in 
                paragraph (3)(A)(iii)) has been inadequate to 
                justify continuation of such authority.
                  (C) Renewal.--In deciding whether to extend a 
                request for a State educational agency's 
                authority to issue waivers under this section, 
                the Secretary shall review the progress of the 
                State educational agency to determine if the 
                State educational agency--
                          (i) has made progress toward 
                        achieving the objectives described in 
                        the application submitted pursuant to 
                        paragraph (3)(A)(iii); and
                          (ii) demonstrates in the request that 
                        local educational agencies or schools 
                        affected by the waiver authority or 
                        waivers have made progress toward 
                        achieving the desired results described 
                        in the application submitted pursuant 
                        to paragraph (4)(A)(iii).
          (7) Authority to issue waivers.--Notwithstanding any 
        other provision of law, the Secretary is authorized to 
        carry out the educational flexibility program under 
        this section for each of the fiscal years 2002 through 
        2008.
          (8) Public notice and comment.--Each State 
        educational agency seeking waiver authority under this 
        section and each local educational agency seeking a 
        waiver under this section--
                  (A) shall provide the public with adequate 
                and efficient notice of the proposed waiver 
                authority or waiver, consisting of a 
                description of the agency's application for the 
                proposed waiver authority or waiver in a widely 
                read or distributed medium, including a 
                description of any improved student performance 
                that is expected to result from the waiver 
                authority or waiver;
                  (B) shall provide the opportunity for 
                parents, educators, and all other interested 
                members of the community to comment regarding 
                the proposed waiver authority or waiver;
                  (C) shall provide the opportunity described 
                in subparagraph (B) in accordance with any 
                applicable State law specifying how the 
                comments may be received, and how the comments 
                may be reviewed by any member of the public; 
                and
                  (D) shall submit the comments received with 
                the agency's application to the Secretary or 
                the State educational agency, as appropriate.
    (b) Included Programs.--The statutory or regulatory 
requirements referred to in subsection (a)(1)(A) are any such 
requirements for programs carried out under the following 
provisions:
          (1) Title I (other than subsections (a) and (c) of 
        section 1116, subpart 2 of part B, and part F).
          (2) Subparts 1, 2, and 3 of part A of title II.
          (3) Part C of title II.
          (4) Part C of title III.
          (5) Part A of title IV.
          (6) Subpart 4 of this part.
          (7) The Carl D. Perkins Vocational and Technical 
        Education Act of 1998.
    (c) Waivers Not Authorized.--The Secretary and the State 
educational agency may not waive under subsection (a)(1)(A) any 
statutory or regulatory requirement--
          (1) relating to--
                  (A) maintenance of effort;
                  (B) comparability of services;
                  (C) equitable participation of students and 
                professional staff in private schools;
                  (D) parental participation and involvement;
                  (E) distribution of funds to States or to 
                local educational agencies;
                  (F) serving eligible school attendance areas 
                in rank order under section 1113(a)(3);
                  (G) the selection of a school attendance area 
                or school under subsections (a) and (b) of 
                section 1113, except that a State educational 
                agency may grant a waiver to allow a school 
                attendance area or school to participate in 
                activities under part A of title I if the 
                percentage of children from low-income families 
                in the school attendance area of such school or 
                who attend such school is not less than 10 
                percentage points below the lowest percentage 
                of such children for any school attendance area 
                or school of the local educational agency that 
                meets the requirements of such subsections (a) 
                and (b);
                  (H) use of Federal funds to supplement, not 
                supplant, non-Federal funds; and
                  (I) applicable civil rights requirements; and
          (2) unless the underlying purposes of the statutory 
        requirements of the program for which a waiver is 
        granted continue to be met to the satisfaction of the 
        Secretary.
    (d) Treatment of Existing Ed-Flex Partnership States.--
          (1) In general.--Except as provided in paragraphs (3) 
        and (4), this section shall not apply to a State 
        educational agency that has been granted waiver 
        authority under the provisions of law described in 
        paragraph (2) (as such provisions were in effect on the 
        day before the date of enactment of the Better 
        Education for Students and Teachers Act) for the 
        duration of the waiver authority.
          (2) Applicable provisions.--The provisions of law 
        referred to in paragraph (1) are as follows:
                  (A) Section 311(e) of the Goals 2000: Educate 
                America Act (as such section was in effect on 
                the day before the date of enactment of the 
                Better Education for Students and Teachers 
                Act).
                  (B) The proviso referring to such section 
                311(e) under the heading ``education reform'' 
                in the Department of Education Appropriations 
                Act, 1996 (Public Law 104-134; 110 Stat. 1321-
                229).
          (3) Special rule.--If a State educational agency 
        granted waiver authority pursuant to the provisions of 
        law described in subparagraph (A) or (B) of paragraph 
        (2) applies to the Secretary for waiver authority under 
        this section--
                  (A) the Secretary shall review the progress 
                of the State educational agency in achieving 
                the objectives set forth in the application 
                submitted pursuant to section 311(e) of the 
                Goals 2000: Educate America Act (as such 
                section was in effect on the day before the 
                date of enactment of the Better Education for 
                Students and Teachers Act); and
                  (B) the Secretary shall administer the waiver 
                authority granted under this section in 
                accordance with the requirements of this 
                section.
          (4) Technology.--In the case of a State educational 
        agency granted waiver authority under the provisions of 
        law described in subparagraph (A) or (B) of paragraph 
        (2), the Secretary shall permit a State educational 
        agency to expand, on or after the date of enactment of 
        the Better Education for Students and Teachers Act, the 
        waiver authority to include programs under part C of 
        title II.
  (e) Publication.--A notice of the Secretary's decision to 
authorize State educational agencies to issue waivers under 
this section, including a description of the rationale the 
Secretary used to approve applications under subsection 
(a)(3)(B), 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, and advocacy and civil rights 
organizations), and the public.

                 Subpart 2--Rural Education Initiative

SEC. 5221. SHORT TITLE.

    This subpart may be cited as the ``Rural Education 
Achievement Program''.

SEC. 5222. 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. 5223. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this 
subpart--
          (1) $300,000,000 for fiscal year 2002, of which 
        $150,000,000 shall be made available to carry out 
        chapter 1; and
          (2) such sums as may be necessary for each of the 4 
        succeeding fiscal years.

           CHAPTER 1--SMALL, RURAL SCHOOL ACHIEVEMENT PROGRAM

SEC. 5231. 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 activities described in section 
        1114, 1115, 1116, 2123, or 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, except 
        that the Secretary may waive the School Locale Code 
        requirement of this paragraph if the Secretary 
        determines, based on certification provided by the 
        local educational agency or the State educational 
        agency on behalf of the local 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 each of 
titles II and IV, and subpart 4 of this part.
    (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 Federal, 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 chapter 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 
section.

SEC. 5232. 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 activities described in 
section 1114, 1115, 1116, 2123, 2213, 2306, or 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, except 
        that the Secretary may waive the School Locale Code 
        requirement of this paragraph if the Secretary 
        determines, based on certification provided by the 
        local educational agency or the State educational 
        agency on behalf of the local educational agency, that 
        the local educational agency is located in an area 
        defined as rural by a governmental agency of the State.
    (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 5231(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 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.
          (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 Federal, State, or local education funds.
    (f) Construction.--Nothing in this chapter 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 
section.

SEC. 5233. ACCOUNTABILITY.

    (a) Academic Achievement.--
          (1) In general.--Each local educational agency that 
        uses or receives funds under section 5231 or 5232 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 5231 or 5232 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 5231(c) shall--
          (1) after the 3rd year that a local educational 
        agency in the State participates in a program 
        authorized under section 5231 or 5232 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 3rd year of the participation than the 
        students performed on the assessments or tests after 
        the 1st 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. 5234. 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 chapter is 
insufficient to pay the full amount for whichall agencies are 
eligible under this chapter, 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.

             CHAPTER 2--LOW-INCOME AND RURAL SCHOOL PROGRAM

SEC. 5241. DEFINITIONS.

  In this chapter:
          (1) Poverty line.--The term ``poverty line'' means 
        the poverty line (as defined by the Office of 
        Management and Budget, and revised annually in 
        accordance with section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
          (2) Specially qualified agency.--The term ``specially 
        qualified agency'' means an eligible local educational 
        agency, located in a State that does not participate in 
        a program carried out under this chapter for a fiscal 
        year, which may apply directly to the Secretary for a 
        grant for such year in accordance with section 5242(b).

SEC. 5242. PROGRAM AUTHORIZED.

  (a) Grants to States.--
          (1) In general.--From the sum appropriated under 
        section 5223 for a fiscal year and made available to 
        carry out this chapter, the Secretary shall award 
        grants, from allotments made under paragraph (2), to 
        State educational agencies that have applications 
        approved under section 5244 to enable the State 
        educational agencies to award grants to eligible local 
        educational agencies for innovative assistance 
        activities described in section 5331(b).
          (2) Allotment.--From the sum appropriated under 
        section 5223 for a fiscal year and made available to 
        carry out this chapter, the Secretary shall allot to 
        each State educational agency an amount that bears the 
        same ratio to the sum as the number of students in 
        average daily attendance at the schools served by 
        eligible local educational agencies in the State for 
        that fiscal year bears to the number of all such 
        students at the schools served by eligible local 
        educational agencies in all States for that fiscal 
        year.
  (b) Direct Grants to Specially Qualified Agencies.--
          (1) Nonparticipating state.--If a State educational 
        agency elects not to participate in the program carried 
        out under this chapter or does not have an application 
        approved under section 5244, a specially qualified 
        agency in such State desiring a grant under this 
        chapter shall apply directly to the Secretary under 
        section 5244 to receive a grant under this chapter.
          (2) 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 subsection (a)(2) directly to specially 
        qualified agencies in the State.
  (c) Administrative Costs.--A State educational agency that 
receives a grant under this chapter may not use more than 5 
percent of the amount of the grant for State administrative 
costs.

SEC. 5243. STATE DISTRIBUTION OF FUNDS.

  (a) In General.--A State educational agency that receives a 
grant under this chapter may use the funds made available 
through the grant to award grants to eligible local educational 
agencies to enable the local educational agencies to carry out 
innovative assistance activities described in section 5331(b).
  (b) Local Awards.--
          (1) Eligibility.--A local educational agency shall be 
        eligible to receive a grant under this chapter if--
                  (A) 20 percent or more of the children age 5 
                through 17 that are 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 located in a community with a Locale Code 
                of 6, 7, or 8, as determined by the Secretary 
                of Education.
  (c) Award Basis.--The State educational agency shall award 
the 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 at schools served 
        by the eligible local educational agencies.

SEC. 5244. APPLICATIONS.

  (a) In General.--Each State educational agency and specially 
qualified agency desiring to receive a grant under this chapter 
shall submit an application to the Secretary at such time, in 
such manner, and accompanied by such information as the 
Secretary may require.
  (b) Contents.--At a minimum, such application shall include 
information on specific measurable goals and objectives to be 
achieved through the activities carried out through the grant, 
which may include specific educational goals and objectives 
relating to--
          (1) increased student academic achievement;
          (2) decreased student dropout rates; or
          (3) such other factors as the State educational 
        agency or specially qualified agency may choose to 
        measure.

SEC. 5245. ACCOUNTABILITY.

  (a) State Reports.--Each State educational agency that 
receives a grant under this chapter shall prepare and submit to 
the Secretary an annual report. The report shall describe--
          (1) the method the State educational agency used to 
        award grants to eligible local educational agencies 
        under this chapter;
          (2) how the local educational agencies used the funds 
        provided under this chapter; and
          (3) the degree to which the State made progress 
        toward meeting the goals and objectives described in 
        the application submitted under section 5244.
  (b) Specially Qualified Agency Report.--Each specially 
qualified agency that receives a grant under this chapter shall 
prepare and submit to the Secretary an annual report. The 
report shall describe--
          (1) how such agency used the funds provided under 
        this chapter; and
          (2) the degree to which the agency made progress 
        toward meeting the goals and objectives described in 
        the application submitted under section 5244.
  (c) Academic Achievement.--
          (1) In general.--Each local educational agency that 
        receives a grant under this chapter 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 
        receives a grant under this chapter shall use the same 
        assessment or test described in paragraph (1) for each 
        year of participation in the program carried out under 
        this chapter.
  (d) State Educational Agency Determination Regarding 
Continuing Participation.--Each State educational agency that 
receives a grant under this chapter shall--
          (1) after the 3rd year that a local educational 
        agency in the State participates in the program 
        authorized under this chapter and on the basis of the 
        results of the assessments or tests described in 
        subsection (c), determine whether the students served 
        by the local educational agency participating in the 
        program performed better on the assessments or tests 
        after the 3rd year of the participation than the 
        students performed on the assessments or tests after 
        the 1st 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. 5246. SUPPLEMENT NOT SUPPLANT.

  Funds made available under this chapter shall be used to 
supplement and not supplant any other Federal, State, or local 
education funds.

SEC. 5247. SPECIAL RULE.

  No local educational agency may concurrently participate in 
activities carried out under chapter 1 and activities carried 
out under this chapter.

                           Subpart 3--Waivers

SEC. 5251. 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) State educational agencies.--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) Local educational agencies.--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 
        subpart 1 of part A;
          (9) the prohibitions regarding--
                  (A) State aid in section 5; or
                  (B) use of funds for religious worship or 
                instruction in section 10; or
          (10) the selection of a school attendance area or 
        school under subsections (a) and (b) of section 1113, 
        except that the Secretary may grant a waiver to allow a 
        school attendance area or school to participate in 
        activities under part A of title I if the percentage of 
        children from low-income families in the school 
        attendance area of such school or who attend such 
        school is not less than 10 percentage points below the 
        lowest percentage of such children for any school 
        attendance area or school of the local educational 
        agency that meets the requirements of such subsections 
        (a) and (b).
  (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 3 
        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 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.

           Subpart 4--Innovative Education Program Strategies

SEC. 5301. PURPOSE; STATE AND LOCAL RESPONSIBILITY.

  (a) Purpose.--The purpose of this subpart is--
          (1) to support local education reform efforts that 
        are consistent with and support statewide education 
        reform efforts;
          (2) to provide funding to enable State and local 
        educational agencies to implement promising educational 
        reform strategies;
          (3) to provide a continuing source of innovation and 
        educational improvement, including supportfor library 
        services and instructional and media materials; and
          (4) to develop and implement education programs to 
        improve school, student, and teacher performance, 
        including professional development activities and class 
        size reduction programs.
    (b) State and Local Responsibility.--The basic 
responsibility for the administration of funds made available 
under this subpart 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 subpart 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. 5302. AUTHORIZATION OF APPROPRIATIONS; DURATION OF ASSISTANCE.

    (a) Authorization.--To carry out the purposes of this 
subpart, there are authorized to be appropriated $850,000,000 
for fiscal year 2002 and such sums as may be necessary for each 
of the 6 succeeding fiscal years.
    (b) Duration of Assistance.--During the period beginning 
October 1, 2002, and ending September 30, 2008, the Secretary, 
in accordance with the provisions of this subpart, shall make 
payments to State educational agencies for the purpose of this 
subpart.

SEC. 5303. DEFINITION OF EFFECTIVE SCHOOLS PROGRAM.

    In this subpart the term ``effective schools program'' 
means a school-based program that--
          (1) may encompass preschool through secondary school 
        levels; and
          (2) has the objectives of--
                  (A) promoting school-level planning, 
                instructional improvement, and staff 
                development for all personnel;
                  (B) increasing the academic performance 
                levels of all children and particularly 
                educationally disadvantaged children; and
                  (C) achieving as an ongoing condition in the 
                school the following factors identified through 
                effective schools research:
                          (i) Strong and effective 
                        administrative and instructional 
                        leadership.
                          (ii) A safe and orderly school 
                        environment that enables teachers and 
                        students to focus on academic 
                        performance.
                          (iii) Continuous assessment of 
                        students and initiatives to evaluate 
                        instructional techniques.

                  CHAPTER 1--STATE AND LOCAL PROGRAMS

SEC. 5311. ALLOTMENT TO STATES.

    (a) Reservations.--From the sums appropriated to carry out 
this subpart in any 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) 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 \1/2\ of 1 percent of such remainder.
    (c) Definitions.--In this chapter:
          (1) School-age population.--The term ``school-age 
        population'' means the population aged 5 through 17.
          (2) State.--The term ``State'' includes the 50 States 
        of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

SEC. 5312. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    (a) Formula.--From the sums made available each year to 
carry out this subpart, 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 elementary schools and 
secondary 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 serving 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 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 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 subpart.
          (3) Adjustments.--
                  (A) In general.--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) Criteria.--The Secretary shall review 
                criteria submitted by a State educational 
                agency for adjusting allocations under 
                subparagraph (A) 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 5311 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 5333 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), 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) Requirement.--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.--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.

                       CHAPTER 2--STATE PROGRAMS

SEC. 5321. STATE USES OF FUNDS.

    (a) Authorized Activities.--A State educational agency 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 
        subpart 1 of part A;
          (3) support for designing and implementation of high-
        quality yearly student assessments;
          (4) support for implementation of State and local 
        standards; and
          (5) 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 15 percent 
of funds available for State programs under this subpart in any 
fiscal year may be used for State administration under 
subsection (a)(1).

SEC. 5322. STATE APPLICATIONS.

    (a) Application Requirements.--Any State which desires to 
receive assistance under this subpart 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 subpart;
          (2) provides for a biennial submission of data on the 
        use of funds, the types of services furnished, and the 
        students served under this subpart;
          (3) sets forth the allocation of such funds required 
        to implement section 5342;
          (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 assurances that, apart from technical 
        and advisory assistance and monitoring compliance with 
        this subpart, 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 5333;
          (6) contains assurances that there is compliance with 
        the specific requirements of this subpart; 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 
3 years, and may be amended annually as may be necessary to 
reflect changes without filing a new application.
    (c) Audit Rule.--A local educational agency that receives 
less than an average of $10,000 under this subpart for 3 fiscal 
years shall not be audited more frequently than once every 5 
years.

             CHAPTER 3--LOCAL INNOVATIVE EDUCATION PROGRAMS

SEC. 5331. TARGETED USE OF FUNDS.

    (a) General Rule.--Funds made available to local 
educational agencies under section 5312 shall be used for 
innovative assistance described in subsection (b).
    (b) Innovative Assistance.--
          (1) In general.--The innovative assistance programs 
        referred to in subsection (a) include--
                  (A) programs for the acquisition and use of 
                instructional and educational materials, 
                including library services and materials 
                (including media materials), assessments, and 
                other curricular materials;
                  (B) programs to improve teaching and 
                learning, including professional development 
                activities, that are consistent with 
                comprehensive State and local systemic 
                education reform efforts;
                  (C) activities that encourage and expand 
                improvements throughout the local educational 
                agency that are designed to advance student 
                performance;
                  (D) initiatives to generate, maintain, and 
                strengthen parental and community involvement, 
                including initiatives creating activities for 
                school-age children and activities to meet the 
                educational needs of children aged birth 
                through 5;
                  (E) programs to recruit, hire, and train 
                certified teachers (including teachers 
                certified through State and local alternative 
                routes) in order to reduce class size;
                  (F) programs to improve the academic 
                performance of educationally disadvantaged 
                elementary school and secondary school 
                students, including activities to prevent 
                students from dropping out of school;
                  (G) programs and activities that expand 
                learning opportunities through best practice 
                models designed to improve classroom learning 
                and teaching;
                  (H) programs to combat both student and 
                parental illiteracy;
                  (I) technology activities related to the 
                implementation of school-based reform efforts, 
                including professional development to assist 
                teachers and other school personnel (including 
                school library media personnel) regarding how 
                to effectively use technology in the classrooms 
                and the school library media centers involved;
                  (J) school improvement programs or activities 
                under section 1116 or 1117;
                  (K) programs to provide for the educational 
                needs of gifted and talented children;
                  (L) programs to provide same gender schools 
                and classrooms, if equal educational 
                opportunities are made available to students of 
                both sexes, consistent with the Constitution of 
                the United States of America;
                  (M) service learning activities; and
                  (N) school safety programs.
          (2) Requirements.--The innovative assistance programs 
        referred to in subsection (a) shall be--
                  (A) tied to promoting high academic 
                standards;
                  (B) used to improve student performance; and
                  (C) part of an overall education reform 
                strategy.

SEC. 5332. 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.

SEC. 5333. LOCAL APPLICATIONS.

    (a) Contents of Application.--A local educational agency or 
consortium of such agencies may receive an allocation of funds 
under this subpart 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 5331 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 5342;
          (2) describes how assistance under this subpart will 
        contribute to improving student achievement or 
        improving the quality of education for students;
          (3) provides assurances of compliance with the 
        provisions of this subpart, including the participation 
        of children enrolled in private, nonprofit schools in 
        accordance with section 5342;
          (4) provides an assurance that the local educational 
        agency will 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 educational agency under this subpart; and
          (5) 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 schools 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.
    (b) Period of Application.--An application filed by a local 
educational agency under subsection (a) shall be for a period 
not to exceed 3 fiscal years, may provide for the allocation of 
funds to programs for a period of 3 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 subpart, a local 
educational agency shall have complete discretion in 
determining how funds under this chapter shall be divided among 
the areas of targeted assistance. In exercising such 
discretion, 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 ADMINISTRATIVE PROVISIONS

SEC. 5341. 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 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 fiscaleffort 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 
        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) Waivers.--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 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 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. 5342. 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 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 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 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 
        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.--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, 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 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) Funds.--
          (1) Administration of 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 andpurposes 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) 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 schools 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 schools 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 subpart.
  (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 part 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 withthe purposes of this 
subpart, apply to programs under this subpart.

SEC. 5343. FEDERAL ADMINISTRATION.

    (a) Technical Assistance.--The Secretary, upon request, 
shall provide technical assistance to State and local 
educational agencies under this subpart.
    (b) Rulemaking.--The Secretary shall issue regulations 
under this subpart 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.

    PART C--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER FUNDS

SEC. 5401. 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 3(10).
    (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 part, part D, 
                and sections 3 through 17;
                  (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.

SEC. 5402. 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. 5403. 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 
5401(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. 5404. 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 1903 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. 5405. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE INTERIOR FUNDS.

  (a) General Authority.--
          (1) Transfer.--The Secretary shall transfer to the 
        Department of the Interior, as a consolidated amount 
        for covered programs, the Indian education programs 
        under part A of title VII 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, and set forth 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. 5406. AVAILABILITY OF 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.

 PART D--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND LOCAL PLANS 
                            AND APPLICATIONS

SEC. 5501. 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. 5502. 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 School-to-Work 
                Opportunities Act of 1994; and
                  (D) 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 beincluded 
        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. 5503. 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 5502, 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. 5504. 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. 5505. 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 5502 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. 5506. 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 5504, 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.

                  PART E--ADVANCED PLACEMENT PROGRAMS

SEC. 5601. SHORT TITLE.

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

SEC. 5602. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
          (1) far too many students are not being provided 
        sufficient academic preparation in secondary school, 
        which results in limited employment opportunities, 
        college dropout rates of over 25 percent for the first 
        year of college, and remediation for almost one-third 
        of incoming college freshmen;
          (2) there is a growing consensus that raising 
        academic standards, establishing high academic 
        expectations, and showing concrete results are at the 
        core of improving public education;
          (3) modeling academic standards on the well-known 
        program of advanced placement courses is an approach 
        that many education leaders and almost half of all 
        States have endorsed;
          (4) advanced placement programs already are providing 
        30 different college-level courses, serving almost 60 
        percent of all secondary schools, reaching over 
        1,000,000 students (of whom 80 percent attend public 
        schools, 55 percent are females, and 30 percent are 
        minorities), and providing test scores that are 
        accepted for college credit at over 3,000 colleges and 
        universities, every university in Germany, France, and 
        Austria, and most institutions in Canada and the United 
        Kingdom;
          (5) 24 States are now funding programs to increase 
        participation in advanced placement programs, including 
        19 States that provide funds for advanced placement 
        teacher professional development, 3 States that require 
        that all public secondary schools offer advanced 
        placement courses, 10 States that pay the fees for 
        advanced placement tests for some or all students, and 
        4 States that require that their public universities 
        grant uniform academic credit for scores of 3 or better 
        on advanced placement tests; and
          (6) the State programs described in paragraph (5) 
        have shown the responsiveness of schools and students 
        to such programs, raised the academic standards both 
        for students participating in such programs and for 
        other children taught by teachers who are involved in 
        advanced placement courses, and have shown tremendous 
        success in increasing enrollment, achievement, and 
        minority participation in advanced placement programs.
    (b) Purposes.--The purposes of this part are--
          (1) to encourage more of the 600,000 students who 
        take advanced placement courses but do not take 
        advanced placement exams each year to demonstrate their 
        achievements through taking the exams;
          (2) to build on the many benefits of advanced 
        placement programs for students, which benefits may 
        include the acquisition of skills that are important to 
        many employers, Scholastic Aptitude Tests (SAT) scores 
        that are 100 points above the national averages, and 
        the achievement of better grades in secondary school 
        and in college than the grades of students who have not 
        participated in the programs;
          (3) to support State and local efforts to raise 
        academic standards through advanced placement programs, 
        and thus further increase the number of students who 
        participate and succeed in advanced placement programs;
          (4) to increase the availability and broaden the 
        range of schools that have advanced placement programs, 
        which programs are still often distributed unevenly 
        among regions, States, and even secondary schools 
        within the same school district, while also increasing 
        and diversifying student participation in the programs;
          (5) to build on the State programs described in 
        subsection (a)(5) and demonstrate that larger and more 
        diverse groups of students can participate and succeed 
        in advanced placement programs;
          (6) to provide greater access to advanced placement 
        courses for low-income and other disadvantaged 
        students;
          (7) to provide access to advanced placement courses 
        for secondary school juniors at schools that do not 
        offer advanced placement programs, increase the rate of 
        secondary school juniors and seniors who participate in 
        advanced placement courses to 25 percent of the 
        secondary school student population, and increase the 
        numbers of students who receive advanced placement test 
        scores for which college academic credit is awarded; 
        and
          (8) to increase the participation of low-income 
        individuals in taking advanced placement tests through 
        the payment or partial payment of the costs of the 
        advanced placement test fees.

SEC. 5603. FUNDING DISTRIBUTION RULE.

    From amounts appropriated under section 5608 for a fiscal 
year, the Secretary shall give first priority to funding 
activities under section 5606, and shall distribute any 
remaining funds not so applied according to the following 
ratio:
          (1) Seventy percent of the remaining funds shall be 
        available to carry out section 5604.
          (2) Thirty percent of the remaining funds shall be 
        available to carry out section 5605.

SEC. 5604. ADVANCED PLACEMENT PROGRAM GRANTS.

    (a) Grants Authorized.--
          (1) In general.--From amounts appropriated under 
        section 5608 and made available under section 5603(1) 
        for a fiscal year, the Secretary shall award grants, on 
        a competitive basis, to eligible entities to enable the 
        eligible entities to carry out the authorized 
        activities described in subsection (c).
          (2) Duration and payments.--
                  (A) Duration.--The Secretary shall award a 
                grant under this section for a period of 3 
                years.
                  (B) Payments.--The Secretary shall make grant 
                payments under this section on an annual basis.
          (3) Definition of eligible entity.--In this section, 
        the term ``eligible entity'' means a State educational 
        agency or a local educational agency in the State.
    (b) Priority.--In awarding grants under this section the 
Secretary shall give priority to eligible entities submitting 
applications under subsection (d) that demonstrate--
          (1) a pervasive need for access to advanced placement 
        incentive programs;
          (2) the involvement of business and community 
        organizations in the activities to be assisted;
          (3) the availability of matching funds from State or 
        local sources to pay for the cost of activities to be 
        assisted;
          (4) a focus on developing or expanding advanced 
        placement programs and participation in the core 
        academic areas of English, mathematics, and science; 
        and
          (5)(A) in the case of an eligible entity that is a 
        State educational agency, the State educational agency 
        carries out programs in the State that target--
                  (i) local educational agencies serving 
                schools with a high concentration of low-income 
                students; or
                  (ii) schools with a high concentration of 
                low-income students; or
          (B) in the case of an eligible entity that is a local 
        educational agency, the local educational agency serves 
        schools with a high concentration of low-income 
        students.
    (c) Authorized Activities.--An eligible entity may use 
grant funds under this section to expand access for low-income 
individuals to advanced placement incentive programs that 
involve--
          (1) teacher training;
          (2) preadvanced placement course development;
          (3) curriculum coordination and articulation between 
        grade levels that prepare students for advanced 
        placement courses;
          (4) curriculum development;
          (5) books and supplies; and
          (6) any other activity directly related to expanding 
        access to and participation in advanced placement 
        incentive programs particularly for low-income 
        individuals.
    (d) Application.--Each eligible entity desiring a grant 
under this section shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such 
information as the Secretary may require.
    (e) Data Collection and Reporting.--
          (1) Data collection.--Each eligible entity receiving 
        a grant under this section shall annually report to the 
        Secretary--
                  (A) the number of students taking advanced 
                placement courses who are served by the 
                eligible entity;
                  (B) the number of advanced placement tests 
                taken by students served by the eligible 
                entity;
                  (C) the scores on the advanced placement 
                tests; and
                  (D) demographic information regarding 
                individuals taking the advanced placement 
                courses and tests disaggregated by race, 
                ethnicity, sex, English proficiency status, and 
                socioeconomic status.
          (2) Report.--The Secretary shall annually compile the 
        information received from each eligible entity under 
        paragraph (1) and report to Congress regarding the 
        information.

SEC. 5605. ONLINE ADVANCED PLACEMENT COURSES.

  (a) Grants Authorized.--From amounts appropriated under 
section 5608 and made available under section 5603(2) for a 
fiscal year, the Secretary shall award grants to State 
educational agencies to enable such agencies to award grants to 
local educational agencies to provide students with online 
advanced placement courses.
  (b) State Educational Agency Applications.--
          (1) Application required.--Each State 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.
          (2) Award basis.--The Secretary shall award grants 
        under this section on a competitive basis.
  (c) Grants to Local Educational Agencies.--Each State 
educational agency receiving a grant under subsection (b) shall 
award grants to local educational agencies within the State to 
carry out activities described in subsection (e). In awarding 
grants under this subsection, the State educational agency 
shall give priority to local educational agencies that--
          (1) serve high concentrations of low-income students;
          (2) serve rural areas; and
          (3) the State educational agency determines will not 
        have access to online advanced placement courses 
        without assistance provided under this section.
  (d) Contracts.--A local educational agency that receives a 
grant under this section may enter into a contract with a 
nonprofit or for-profit organization to provide the online 
advanced placement courses, including contracting for necessary 
support services.
  (e) Uses.--Grant funds provided under this section may be 
used to purchase the online curriculum, to train teachers with 
respect to the use of online curriculum, and to purchase course 
materials.

SEC. 5606. ADVANCED PLACEMENT INCENTIVE PROGRAM.

  (a) Grants Authorized.--From amounts appropriated under 
section 5608 and made available under section 5603 for a fiscal 
year, the Secretary shall award grants to State educational 
agencies having applications approved under subsection (c) to 
enable the State educational agencies to reimburse low-income 
individuals to cover part or all of the costs of advanced 
placement test fees, if the low-income individuals--
          (1) are enrolled in an advanced placement class; and
          (2) plan to take an advanced placement test.
  (b) Award Basis.--In determining the amount of the grant 
awarded to each State educational agency under this section for 
a fiscal year, the Secretary shall consider the number of 
children eligible to be counted under section 1124(c) in the 
State in relation to the number of such children so counted in 
all the States.
  (c) Information Dissemination.--A State educational agency 
shall disseminate information regarding the availability of 
advanced placement test fee payments under this section to 
eligible individuals through secondary school teachers and 
guidance counselors.
  (d) Applications.--Each State educational agency desiring a 
grant under this section shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require. At a minimum, each 
State educational agency application shall--
          (1) describe the advanced placement test fees the 
        State educational agency will pay on behalf of low-
        income individuals in the State from grant funds made 
        available under this section;
          (2) provide an assurance that any grant funds 
        received under this section, other than funds used in 
        accordance with subsection (e), shall be used only to 
        pay for advanced placement test fees; and
          (3) contain such information as the Secretary may 
        require to demonstrate that the State will ensure that 
        a student is eligible for payments under this section, 
        including documentation required under chapter 1 of 
        subpart 2 of part A of title IV of the Higher Education 
        Act of 1965.
  (e) Additional Uses of Funds.--If each eligible low-income 
individual in a State pays not more than a nominal fee to take 
an advanced placement test in a coresubject, then a State 
educational agency may use grant funds made available under 
this section that remain after advanced placement test fees 
have been paid on behalf of all eligible low-income individuals 
in the State, for activities directly related to increasing--
          (1) the enrollment of low-income individuals in 
        advanced placement courses;
          (2) the participation of low-income individuals in 
        advanced placement courses; and
          (3) the availability of advanced placement courses in 
        schools serving high-poverty areas.
  (f) Supplement, Not Supplant.--Grant funds provided under 
this section shall supplement, and not supplant, other non-
federal funds that are available to assist low-income 
individuals in paying for the cost of advanced placement test 
fees.
  (g) Regulations.--The Secretary shall prescribe such 
regulations as are necessary to carry out this section.
  (h) Report.--Each State educational agency annually shall 
report to the Secretary information regarding--
          (1) the number of low-income individuals in the State 
        who received assistance under this section; and
          (2) any activities carried out pursuant to subsection 
        (e).
  (i) Definitions.--In this section:
          (1) Advanced placement test.--The term ``advanced 
        placement test'' includes only an advanced placement 
        test approved by the Secretary for the purposes of this 
        section.
          (2) Low-income individual.--The term ``low-income 
        individual'' has the meaning given the term in section 
        402A(g)(2) of the Higher Education Act of 1965.

SEC. 5607. DEFINITIONS.

  In this part:
          (1) Advanced placement incentive program.--The term 
        ``advanced placement incentive program'' means a 
        program that provides advanced placement activities and 
        services to low-income individuals.
          (2) Advanced placement test.--The term ``advanced 
        placement test'' means an advanced placement test 
        administered by the College Board or approved by the 
        Secretary.
          (3) High concentration of low-income students.--The 
        term ``high concentration of low-income students'', 
        used with respect to a State educational agency, local 
        educational agency or school, means an agency or 
        school, as the case may be, that serves a student 
        population 40 percent or more of whom are from families 
        with incomes below the poverty level, as determined in 
        the same manner as the determination is made under 
        section 1124(c)(2).
          (4) Low-income individual.--The term ``low-income 
        individual'' means, other than for purposes of section 
        5606, a low-income individual (as defined in section 
        402A(g)(2) of the Higher Education Act of 1965) who is 
        academically prepared to take successfully an advanced 
        placement test as determined by a school teacher or 
        advanced placement coordinator taking into 
        consideration factors such as enrollment and 
        performance in an advanced placement course or superior 
        academic ability.
          (5) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given the term in section 101(a) of the Higher 
        Education Act of 1965.
          (6) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, Guam, 
        American Samoa, the United States Virgin Islands, the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia, and the Republic of Palau.

SEC. 5608. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
part $50,000,000 for fiscal year 2002, and such sums as may be 
necessary for each of the 6 succeeding fiscal years.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

                      PART A--PARENTAL ASSISTANCE

SEC. 6101. PARENTAL INFORMATION AND RESOURCE CENTERS.

  (a) Purpose.--The purpose of this part is--
          (1) to provide leadership, technical assistance, and 
        financial support to nonprofit organizations and local 
        educational agencies to help the organizations and 
        agencies implement successful and effective parental 
        involvement policies, programs, and activities that 
        lead to improvements in student performance;
          (2) to strengthen partnerships among parents 
        (including parents of preschool age children), 
        teachers, principals, administrators, and other school 
        personnel in meeting the educational needs of children;
          (3) to develop and strengthen the relationship 
        between parents and the school;
          (4) to further the developmental progress primarily 
        of children assisted under this part; and
          (5) to coordinate activities funded under this part 
        with parental involvement initiatives funded under 
        section 1118 and other provisions of this Act.
  (b) Grants Authorized.--
          (1) In general.--The Secretary is authorized to award 
        grants in each fiscal year to nonprofit organizations, 
        and nonprofit organizations in consortia with local 
        educational agencies, to establish school-linked or 
        school-based parental information and resource centers 
        that provide training, information, and support to--
                  (A) parents of children enrolled in 
                elementary schools and secondary schools;
                  (B) individuals who work with the parents 
                described in subparagraph (A); and
                  (C) State educational agencies, local 
                educational agencies, schools, organizations 
                that support family-school partnerships (such 
                as parent-teacher associations), and other 
                organizations that carry out parent education 
                and family involvement programs.
          (2) Award rule.--In awarding grants under this part, 
        the Secretary shall ensure that such grants are 
        distributed in all geographic regions of the United 
        States.

SEC. 6102. APPLICATIONS.

    (a) Grants Applications.--
          (1) In general.--Each nonprofit organization or 
        nonprofit organization in consortium with a local 
        educational agency that desires a grant under this part 
        shall submit an application to the Secretary at such 
        time and in such manner as the Secretary shall require.
          (2) Contents.--Each application submitted under 
        paragraph (1), at a minimum, shall include assurances 
        that the organization or consortium will--
                  (A)(i) be governed by a board of directors 
                the membership of which includes parents; or
                  (ii) be an organization or consortium that 
                represents the interests of parents;
                  (B) establish a special advisory committee 
                the membership of which includes--
                          (i) parents described in section 
                        6101(b)(1)(A);
                          (ii) representatives of education 
                        professionals with expertise in 
                        improving services for disadvantaged 
                        children; and
                          (iii) representatives of local 
                        elementary schools and secondary 
                        schools who may include students and 
                        representatives from local youth 
                        organizations;
                  (C) use at least \1/2\ of the funds provided 
                under this part in each fiscal year to serve 
                areas with high concentrations of low-income 
                families in order to serve parents who are 
                severely educationally or economically 
                disadvantaged;
                  (D) operate a center of sufficient size, 
                scope, and quality to ensure that the center is 
                adequate to serve the parents in the area;
                  (E) serve both urban and rural areas;
                  (F) design a center that meets the unique 
                training, information, and support needs of 
                parents described in section 6101(b)(1)(A), 
                particularly such parents who are educationally 
                or economically disadvantaged;
                  (G) demonstrate the capacity and expertise to 
                conduct the effective training, information and 
                support activities for which assistance is 
                sought;
                  (H) network with--
                          (i) local educational agencies and 
                        schools;
                          (ii) parents of children enrolled in 
                        elementary schools and secondary 
                        schools;
                          (iii) parent training and information 
                        centers assisted under section 682 of 
                        the Individuals with Disabilities 
                        Education Act;
                          (iv) clearinghouses; and
                          (v) other organizations and agencies;
                  (I) focus on serving parents described in 
                section 6101(b)(1)(A) who are parents of low-
                income, minority, and limited English 
                proficient, children;
                  (J) use part of the funds received under this 
                part to establish, expand, or operate Parents 
                as Teachers programs or Home Instruction for 
                Preschool Youngsters programs;
                  (K) provide assistance to parents in such 
                areas as understanding State and local 
                standards and measures of student and school 
                performance; and
                  (L) work with State and local educational 
                agencies to determine parental needs and 
                delivery of services.
    (b) Grant Renewal.--For each fiscal year after the first 
fiscal year an organization or consortium receives assistance 
under this part, the organization or consortium shall 
demonstrate in the application submitted for such fiscal year 
after the first fiscal year that a portion of the services 
provided by the organization or consortium is supported through 
non-Federal contributions, which contributions may be in cash 
or in kind.

SEC. 6103. USES OF FUNDS.

    (a) In General.--Grant funds received under this part shall 
be used--
          (1) to assist parents in participating effectively in 
        their children's education and to help their children 
        meet State and local standards, such as assisting 
        parents--
                  (A) to engage in activities that will improve 
                student performance, including understanding 
                the accountability systems in place within 
                their State educational agency and local 
                educational agency and understanding their 
                children's educational performance in 
                comparison to State and local standards;
                  (B) to provide followup support for their 
                children's educational achievement;
                  (C) to communicate effectively with teachers, 
                principals, counselors, administrators, and 
                other school personnel;
                  (D) to become active participants in the 
                development, implementation, and review of 
                school-parent compacts, parent involvement 
                policies, and school planning and improvement;
                  (E) to participate in the design and 
                provision of assistance to students who are not 
                making adequate educational progress;
                  (F) to participate in State and local 
                decisionmaking; and
                  (G) to train other parents;
          (2) to obtain information about the range of options, 
        programs, services, and resources available at the 
        national, State, and local levels to assist parents and 
        school personnel who work with parents;
          (3) to help the parents learn and use the technology 
        applied in their children's education;
          (4) to plan, implement, and fund activities for 
        parents that coordinate the education of their children 
        with other Federal programs that serve their children 
        or their families; and
          (5) to provide support for State or local educational 
        personnel if the participation of such personnel will 
        further the activities assisted under the grant.
    (b) Permissive Activities.--Grant funds received under this 
part may be used to assist schools with activities such as--
          (1) developing and implementing their plans or 
        activities under sections 1118 and 1119; and
          (2) developing and implementing school improvement 
        plans, including addressing problems that develop in 
        the implementation of sections 1118 and 1119.
          (3) providing information about assessment and 
        individual results to parents in a manner and a 
        language the family can understand;
          (4) coordinating the efforts of Federal, State, and 
        local parent education and family involvement 
        initiatives; and
          (5) providing training, information, and support to--
                  (A) State educational agencies;
                  (B) local educational agencies and schools, 
                especially those local educational agencies and 
                schools that are low performing; and
                  (C) organizations that support family-school 
                partnerships.
    (c) Grandfather Clause.--The Secretary shall use funds made 
available under this part to continue to make grant or contract 
payments to each entity that was awarded a multiyear grant or 
contract under title IV of the Goals 2000: Educate America Act 
(as such title was in effect on the day before the date of 
enactment of the Better Education for Students and Teachers 
Act) for the duration of the grant or contract award.

SEC. 6104. TECHNICAL ASSISTANCE.

    The Secretary shall provide technical assistance, by grant 
or contract, for the establishment, development, and 
coordination of parent training, information, and support 
programs and parental information and resource centers.

SEC. 6105. REPORTS.

    (a) Information.--Each organization or consortium receiving 
assistance under this part shall submit to the Secretary, on an 
annual basis, information concerning the parental information 
and resource centers assisted under this part, including--
          (1) the number of parents (including the number of 
        minority and limited English proficient parents) who 
        receive information and training;
          (2) the types and modes of training, information, and 
        support provided under this part;
          (3) the strategies used to reach and serve parents of 
        minority and limited English proficient children, 
        parents with limited literacy skills, and other parents 
        in need of the services provided under this part;
          (4) the parental involvement policies and practices 
        used by the center and an evaluation of whether such 
        policies and practices are effective in improving home-
        school communication, student achievement, student and 
        school performance, and parental involvement in school 
        planning, review, and improvement; and
          (5) the effectiveness of the activities that local 
        educational agencies and schools are carrying out with 
        regard to parental involvement and other activities 
        assisted under this Act that lead to improved student 
        achievement and improved student and school 
        performance.
    (b) Dissemination.--The Secretary annually shall 
disseminate, widely to the public and to Congress, the 
information that each organization or consortium submits under 
subsection (a) to the Secretary.

SEC. 6106. GENERAL PROVISIONS.

    Notwithstanding any other provision of this part--
          (1) no person, including a parent who educates a 
        child at home, a public school parent, or a private 
        school parent, shall be required to participate in any 
        program of parent education or developmental screening 
        pursuant to the provisions of this part; and
          (2) no program or center assisted under this part 
        shall take any action that infringes in any manner on 
        the right of a parent to direct the education of their 
        children.

SEC. 6107. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this 
part $50,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 4 succeeding fiscal years.

                 PART B--IMPROVING ACADEMIC ACHIEVEMENT

SEC. 6201. EDUCATION AWARDS.

    (a) Achievement in Education Awards.--
          (1) In general.--The Secretary may make awards, to be 
        known as ``Achievement in Education Awards'', using a 
        peer review process, to the States that, beginning with 
        the 2002-2003 school year, make the most progress in 
        improving educational achievement.
          (2) Criteria.--
                  (A) In general.--The Secretary shall make the 
                awards on the basis of criteria consisting of--
                          (i) the progress of economically 
                        disadvantaged students and of students 
                        who are racial and ethnic minorities--
                                  (I) in meeting the State's 
                                student performance standards 
                                as measured by the assessments 
                                described in section 
                                1111(b)(3); and
                                  (II) beginning with the 2nd 
                                year for which data are 
                                available for all States, on 
                                State assessments under the 
                                National Assessment of 
                                Educational Progress of 4th and 
                                8th grade reading and 
                                mathematics skills;
                          (ii) overall improvement in student 
                        achievement by the State's students on 
                        the assessments required by section 
                        1111, and (beginning with the 2nd year 
                        for which data are available for all 
                        States) on the assessments described in 
                        clause (i)(II);
                          (iii) the progress of the State in 
                        improving the English proficiency of 
                        students who enter school with limited 
                        English proficiency;
                          (iv) the progress of the State in 
                        increasing the percentage of students 
                        who graduate from secondary school; and
                          (v) the progress of the State in 
                        increasing the percentage of students 
                        who take advanced coursework, such as 
                        advanced placement and international 
                        baccalaureate courses, and who pass 
                        advanced placement and international 
                        baccalaureate tests.
                  (B) Weight.--In applying the criteria 
                described in subparagraph (A), the Secretary 
                shall give the greatest weight to the criterion 
                described in subparagraph (A)(i).
    (b) Assessment Completion Bonuses.--The Secretary may make 
1-time bonus payments to States that complete the development 
of assessments required by section 1111 in advance of the 
schedule specified in such section.
    (c) No Child Left Behind Awards.--The Secretary may make 
awards, to be known as ``No Child Left Behind Awards'' to the 
schools that--
          (1) are nominated by the States in which the schools 
        are located; and
          (2) have made the greatest progress in improving the 
        educational achievement of economically disadvantaged 
        students.
    (d) Fund To Improve Education Achievement.--The Secretary 
may make awards for activities other than the activities 
described in subsections (a) through (c), such as character 
education, that are designed to promote the improvement of 
elementary and secondary education nationally.

SEC. 6202. LOSS OF ADMINISTRATIVE FUNDS.

    (a) 2 Years of Insufficient Progress.--
          (1) Reduction.--If the Secretary makes the 
        determinations described in paragraph (2) for 2 
        consecutive years, the Secretary shall reduce, by not 
        more than 30 percent, the amount of funds that the 
        State may reserve for the subsequent fiscal year for 
        State administration under the programs authorized by 
        this Act that the Secretary determines are formula 
        grant programs.
          (2) Determinations.--The determinations referred to 
        in paragraph (1) are determinations, made on the basis 
        of data from the State assessment system described in 
        section 1111 and data from State assessments under the 
        National Assessment of Educational Progress of 4th and 
        8th grade reading and mathematics skills, that--
                  (A) the State has failed to make adequate 
                yearly progress as defined under section 1111; 
                and
                  (B) students who are racial and ethnic 
                minorities, and economically disadvantaged 
                students, in the State failed to make 
                statistically significant progress in the 
                academic subjects for which the State has 
                developed State content and student performance 
                standards.
    (b) 3 or More Years of Insufficient Progress.--If the 
Secretary makes the determinations described in subsection 
(a)(2) for a third or subsequent consecutive year, the 
Secretary shall reduce, by not more than 75 percent, the amount 
of funds that the State may reserve for the subsequent fiscal 
year for State administration under the programs authorized by 
this Act that the Secretary determines are formula grant 
programs.

SEC. 6203. AUTHORIZATION OF APPROPRIATIONS.

    (a) State Assessment Grants.--For the purpose of developing 
and implementing the standards and assessments required under 
section 1111, there are authorized to be appropriated 
$400,000,000 for fiscal year 2002, and such sums as may be 
necessary for each of the 6 succeeding fiscal years.
    (b) National Assessment of Educational Progress.--For the 
purpose of administering the State assessments under the 
National Assessment of Educational Progress, there are 
authorized to be appropriated $110,000,000 for fiscal year 
2002, and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    (c) Education Awards.--For the purpose of carrying out 
section 6201, there are authorized to be appropriated 
$50,000,000 for fiscal year 2002, and such sums as may be 
necessary for each of the 6 succeeding fiscal years.

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

                        PART A--INDIAN EDUCATION

SEC. 7101. 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 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 the standards described in subparagraph 
                (A); and
                  (C) meet the unique educational and 
                culturally related academic needs of American 
                Indian and Alaska Native students;
          (2) since the date of enactment of the 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 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. 7102. PURPOSE.

    (a) Purpose.--The purpose of this part is to support the 
efforts of local educational agencies, Indian tribes and 
organizations, postsecondary institutions, and otherentities to 
meet the unique educational and culturally related academic 
needs of American Indian and Alaska Native students, so that 
such students can meet the same challenging State performance 
standards as are expected for all students.
  (b) Programs.--This part carries out the purpose described in 
subsection (a) by authorizing programs of direct assistance 
for--
          (1) meeting the unique educational and culturally 
        related academic needs of American Indians and Alaska 
        Natives;
          (2) the education of Indian children and adults;
          (3) the training of Indian persons as educators and 
        counselors, and in other professions serving Indian 
        people; and
          (4) research, evaluation, data collection, and 
        technical assistance.

        Subpart 1--Formula Grants to Local Educational Agencies

SEC. 7111. PURPOSE.

  The purpose of this subpart is to support local educational 
agencies in their efforts to reform elementary school and 
secondary school programs that serve Indian students in order 
to ensure that such programs--
          (1) are based on challenging State content standards 
        and State student performance standards that are used 
        for all students; and
          (2) are designed to assist Indian students to meet 
        those standards.

SEC. 7112. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

  (a) In General.--The Secretary may make grants to local 
educational agencies and Indian tribes in accordance with this 
section.
  (b) Local Educational Agencies.--
          (1) Enrollment requirements.--A local educational 
        agency shall be eligible for a grant under this subpart 
        for any fiscal year if the number of Indian children 
        who are eligible under section 7117, 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.
  (c) Indian Tribes.--
          (1) In general.--If a local educational agency that 
        is otherwise eligible for a grant under this subpart 
        does not establish a parent committee under section 
        7114(c)(4), an Indian tribe that represents not less 
        than \1/2\ of the eligible Indian children who are 
        served by such local educational agency may apply for 
        such grant by submitting an application in accordance 
        with section 7114.
          (2) Special rule.--The Secretary shall treat each 
        Indian tribe applying for a grant pursuant to paragraph 
        (1) as if such Indian tribe were a local educational 
        agency for purposes of this subpart, except that any 
        such tribe shall not be subject to section 7114(c)(4) 
        (relating to a parent committee), section 7118(c) 
        (relating to maintenance of effort), or section 7119 
        (relating to State review of applications).

SEC. 7113. AMOUNT OF GRANTS.

  (a) Amount of Grant Awards.--
          (1) In general.--Except as provided in subsections 
        (c) and (d), for purposes of making grants under this 
        subpart the Secretary shall allocate to each local 
        educational agency that 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 7117 and served by such 
                agency; and
                  (B) the greater of--
                          (i) the average per-pupil expenditure 
                        of the State in which such agency is 
                        located; or
                          (ii) 80 percent of the average per-
                        pupil expenditure of all the States.
          (2) Reduction.--The Secretary shall reduce the amount 
        of each allocation determined under paragraph (1) or 
        subsection (b) in accordance with subsection (c).
  (b) Schools Operated or Supported by the Bureau of Indian 
Affairs.--
          (1) In general.--In addition to the grants awarded 
        under subsection (a), and subject to paragraph (2), for 
        purposes of making grants under this subpart 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 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; 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 of all the States.
          (2) Special rule.--Any school described in paragraph 
        (1) may apply for an allocation under this subpart by 
        submitting an application in accordance with section 
        7114. The Secretary shall treat the school as if the 
        school were a local educational agency for purposes of 
        this subpart, except that any such school shall not be 
        subject to section 7114(c)(4), 7118(c), or 7119.
  (c) Ratable Reductions.--If the sums appropriated for any 
fiscal year under section 7162(a) are insufficient to pay in 
full the amounts determined for local educational agencies 
under subsection (a) and for the Secretary of the Interior 
under subsection (b), each of those amounts shall be ratably 
reduced.
  (d) Minimum Grant.--
          (1) In general.--Notwithstanding subsection (c), a 
        local educational agency (including an Indian tribe as 
        authorized under section 7112(b)) that is eligible for 
        a grant under section 7112, and a school that is 
        operated or supported by the Bureau of Indian Affairs 
        that is eligible for a grant under subsection (b), that 
        submits an application that is approved by the 
        Secretary, shall, subject to appropriations, receive a 
        grant under this subpart in an amount that is not less 
        than $3,000.
          (2) Consortia.--Local educational agencies may form a 
        consortium for the purpose of obtaining grants under 
        this subpart.
          (3) Increase.--The Secretary may increase the minimum 
        grant under paragraph (1) to not more than $4,000 for 
        all grant recipients if the Secretary determines such 
        increase is necessary to ensure quality programs.
  (e) Definition.--In this section, the term ``average per-
pupil expenditure'', for 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 and for whom such 
        agencies provided free public education during such 
        preceding fiscal year.

SEC. 7114. APPLICATIONS.

  (a) Application Required.--Each local educational agency that 
desires to receive a grant under this subpart shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably 
require.
  (b) Comprehensive Program Required.--Each application 
submitted under subsection (a) shall include a description of a 
comprehensive program for meeting the needs of Indian children 
served by the local educational agency, including the language 
and cultural needs of the children, that--
          (1) describes how the comprehensive program will 
        offer programs and activities to meet the culturally 
        related academic needs of American Indian and Alaska 
        Native students;
          (2)(A) is consistent with the State and local plans 
        submitted under other provisions of this Act; and
          (B) includes academic content and student 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 programs carried out under title I, will 
        meet the needs of such students;
          (4) demonstrates how funds made available under this 
        subpart will be used for activities described in 
        section 7115;
          (5) describes the professional development 
        opportunities that will be provided, as needed, to 
        ensure that--
                  (A) teachers and other school professionals 
                who are new to the Indian community are 
                prepared to work with Indian children; and
                  (B) all teachers who will be involved in 
                programs assisted under this subpart have been 
                properly trained to carry out such programs; 
                and
          (6) describes how the local educational agency--
                  (A) will periodically assess the progress of 
                all Indian children enrolled in the schools of 
                the local educational agency, including Indian 
                children who do not participate in programs 
                assisted under this subpart, in meeting the 
                goals described in paragraph (2);
                  (B) will provide the results of each 
                assessment referred to in subparagraph (A) to--
                          (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 
        funds that, in the absence of the Federal funds made 
        available under this subpart, such agency would make 
        available for the education of Indian children, and not 
        to supplant such funds;
          (2) the local educational agency will prepare and 
        submit to the Secretary such reports, in such form and 
        containing such information, as the Secretary may 
        require to--
                  (A) carry out the functions of the Secretary 
                under this subpart; and
                  (B) determine the extent to which activities 
                carried out with funds provided to the local 
                educational agency under this subpart are 
                effective in improving the educational 
                achievement of Indian students served by such 
                agency;
          (3) the program for which assistance is sought--
                  (A) is based on a comprehensive local 
                assessment and prioritization of the unique 
                educational and culturally related academic 
                needs of the American Indian and Alaska Native 
                students for whom the local educational agency 
                is providing an education;
                  (B) will use the best available talents and 
                resources, including individuals from the 
                Indian community; and
                  (C) was developed by such agency in open 
                consultation with parents of Indian children 
                and teachers, and, if appropriate, Indian 
                students from secondary schools, including 
                through public hearings held by such agency to 
                provide to the individuals described in this 
                subparagraph a full opportunity to understand 
                the program and to offer recommendations 
                regarding the program; and
          (4) the local educational agency developed the 
        program with the participation and written approval of 
        a committee--
                  (A) that is composed of, and selected by--
                          (i) parents of Indian children in the 
                        local educational agency's schools and 
                        teachers in the schools; and
                          (ii) if appropriate, Indian students 
                        attending secondary schools of the 
                        agency;
                  (B) a majority of whose members are parents 
                of Indian children;
                  (C) that has set forth such policies and 
                procedures, including policies and procedures 
                relating to the hiring of personnel, as will 
                ensure that the program for which assistance is 
                sought will be operated and evaluated in 
                consultation with, and with the involvement of, 
                parents of the children, and representatives of 
                the area, to be served;
                  (D) with respect to an application describing 
                a schoolwide program carried out in accordance 
                with section 7115(c), that has--
                          (i) reviewed in a timely fashion the 
                        program; and
                          (ii) determined that the program will 
                        enhance the availability of culturally 
                        related activities for American Indian 
                        and Alaska Native students; and
                  (E) that has adopted reasonable bylaws for 
                the conduct of the activities of the committee 
                and abides by such bylaws.

SEC. 7115. 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 thepurpose specified in 
section 7111, for services and activities that--
          (1) are designed to carry out the comprehensive 
        program of the local educational agency for Indian 
        students, and described in the application of the local 
        educational agency submitted to the Secretary under 
        section 7114;
          (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 Services and 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) career preparation activities to enable Indian 
        students to participate in programs such as the 
        programs supported by Public Law 103-239 and Public Law 
        88-210, including programs for tech-prep, mentoring, 
        and apprenticeship activities;
          (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 
        purpose described in section 7111;
          (8) activities that promote the incorporation of 
        culturally responsive teaching and learning strategies 
        into the educational program of the local educational 
        agency;
          (9) activities that incorporate American Indian and 
        Alaska Native specific curriculum content, consistent 
        with State standards, into the curriculum used by the 
        local educational agency;
          (10) activities to promote coordination and 
        collaboration between tribal, Federal, and State public 
        schools in areas that will improve American Indian and 
        Alaska Native student achievement; and
          (11) 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 subpart to support a 
schoolwide program under section 1114 if--
          (1) the committee composed of parents established 
        pursuant to section 7114(c)(4) approves the use of the 
        funds for the schoolwide program; and
          (2) the schoolwide program is consistent with the 
        purpose described in section 7111.
    (d) Administrative Costs.--Not more than 5 percent of the 
funds made available to a local educational agency through a 
grant made under this subpart for a fiscal year may be used to 
pay for administrative costs.

SEC. 7116. INTEGRATION OF SERVICES AUTHORIZED.

    (a) Plan.--An entity receiving funds under this subpart may 
submit a plan to the Secretary for a demonstration project for 
the integration of education and related services provided to 
Indian students.
    (b) Consolidation of Programs.--Upon the receipt of an 
acceptable plan under subsection (a), the Secretary, in 
cooperation with each Federal agency providing grants for the 
provision of education and related services to the applicant, 
shall authorize the applicant to consolidate, in accordance 
with such plan, the federally funded education and related 
services programs of the applicant and the agencies, or 
portions of the programs, serving Indian students in a manner 
that integrates the program services involved into a single, 
coordinated, comprehensive program and reduces administrative 
costs by consolidating administrative functions.
    (c) Programs Affected.--The funds that may be consolidated 
in a demonstration project under any such plan referred to in 
subsection (b) shall include funds for any Federal program 
exclusively serving Indian children, or the funds reserved 
exclusively to serve Indian children under any program, for 
which the applicant is eligible for receipt of funds under a 
statutory or administrative formula for the purposes of 
providing education and related services for Indian students.
    (d) Plan Requirements.--For a plan to be acceptable 
pursuant to subsection (b), the plan shall--
          (1) identify the programs or funding sources to be 
        consolidated;
          (2) be consistent with the objectives of this section 
        authorizing the program services to be integrated in a 
        demonstration project;
          (3) describe a comprehensive strategy that identifies 
        the full range of potential educational opportunities 
        and related services to be provided to assist Indian 
        students to achieve the objectives set forth in this 
        subpart;
          (4) describe the way in which the services are to be 
        integrated and delivered and the results expected from 
        the plan;
          (5) identify the projected expenditures under the 
        plan in a single budget;
          (6) identify the State, tribal, or local 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 the plan;
          (8) set forth measures of student achievement and 
        performance goals designed to be met within a specified 
        period of time for activities provided under the plan; 
        and
          (9) be approved by a parent committee formed in 
        accordance with section 7114(c)(4), if such a committee 
        exists, in consultation with the Committee on Resources 
        of the House of Representatives and the Committee on 
        Indian Affairs of the Senate.
  (e) Plan Review.--Upon receipt of the plan from an eligible 
entity, the Secretary shall consult with the head of each 
Federal agency 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 regulations, policies, or procedures necessary to 
enable the applicant to implement the plan. Notwithstanding any 
other provision of law, the Secretary of the affected agency 
shall have the authority to waive, for the applicant, any 
regulation, policy, or procedure promulgated by that agency 
that has been so identified by the applicant or agency, unless 
the head of the affected agency determines that such a waiver 
is inconsistent with the objectives of this subpart or the 
provisions of the statute from which the program involved 
derives authority that are specifically applicable to Indian 
students.
  (f) Plan Approval.--Within 90 days after the receipt of an 
applicant's plan by the Secretary under subsection (a), 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 the 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 enactment of the Better 
Education for Students and Teachers Act, the Secretary of 
Education, the Secretary of the Interior, and the head of any 
other Federal agency identified by the Secretary of Education, 
shall enter into an interagency memorandum of agreement 
providing for the implementation of the demonstration projects 
authorized under this section. The lead agency for a 
demonstration project authorized under this section shall be--
          (1) the Department of the Interior, in the case of an 
        applicant that is a contract or grant school, as 
        defined in section 1146 of the Education Amendments of 
        1978; or
          (2) the Department of Education, in the case of any 
        other applicant.
  (h) Responsibilities of Lead Agency.--The responsibilities of 
the lead agency for a demonstration project 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.--
          (1) In general.--The Secretary shall develop, 
        consistent with the requirements of this section, a 
        single report format for the reports described in 
        subsection (h).
          (2) Report information.--Such report format shall 
        require that the reports shall--
                  (A) contain such information as will allow a 
                determination that the eligible entity has 
                complied with the requirements incorporated in 
                the entity's approved plan, including the 
                demonstration of student achievement; and
                  (B) provide assurances to the Secretary of 
                Education and the Secretary of the Interior 
                that the eligible entity has complied with all 
                directly applicable statutory requirements and 
                with those directly applicable regulatory 
                requirements that have not been waived.
          (3) Record information.--The Secretary shall require 
        that records maintained at the local level on the 
        programs consolidated for the project shall contain the 
        information and provide the assurances described in 
        paragraph (2).
  (j) No Reduction in Amounts.--In no case shall the amount of 
Federal funds available to an eligible entity involved in any 
demonstration project be reduced as a result of the enactment 
of this section.
  (k) Interagency Fund Transfers Authorized.--The Secretary is 
authorized to take such action as may be necessary to provide 
for an interagency transfer of funds otherwise available to an 
eligible entity in order to further the objectives of this 
section.
  (l) Administration of Funds.--
          (1) In general.--An eligible entity shall administer 
        the program funds for the consolidated programs in such 
        a manner as to allow for a determination that funds 
        from a specific program are spent on allowable 
        activities authorized under such program, except that 
        the eligible entity shall determine theproportion of 
        the funds that shall be allocated to such program.
          (2) Separate records not required.--Nothing in this 
        section shall be construed as requiring the eligible 
        entity to maintain separate records tracing any 
        services or activities conducted under the approved 
        plan to the individual programs under which funds were 
        authorized for the services or activities, nor shall 
        the eligible entity be required to allocate 
        expenditures among such individual programs.
  (m) Overage.--The eligible entity may commingle all 
administrative funds from the consolidated programs and shall 
be entitled to the full amount of such funds (under each 
program's or agency's regulations). The overage (defined as the 
difference between the amount of the commingled funds and the 
actual administrative cost of the programs) shall be considered 
to be properly spent for Federal audit purposes, if the overage 
is used for the purposes provided for under this section.
  (n) Fiscal Accountability.--Nothing in this part shall be 
construed so as to interfere with the ability of the Secretary 
or the lead agency to fulfill responsibilities for safeguarding 
Federal funds pursuant to chapter 75 of title 31, United States 
Code.
  (o) Report on Statutory Obstacles to Program Integration.--
          (1) Preliminary report.--Not later than 2 years after 
        the date of enactment of the Better Education for 
        Students and Teachers Act, the Secretary of Education 
        shall submit a preliminary report to the Committee on 
        Education and the Workforce and the Committee on 
        Resources of the House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions and 
        the Committee on Indian Affairs of the Senate on the 
        status of the implementation of the demonstration 
        projects authorized under this section.
          (2) Final report.--Not later than 5 years after the 
        date of enactment of the Better Education for Students 
        and Teachers Act, the Secretary of Education shall 
        submit a report to the Committee on Education and the 
        Workforce and the Committee on Resources of the House 
        of Representatives and the Committee on Health, 
        Education, Labor, and Pensions and the Committee on 
        Indian Affairs of the Senate on the results of the 
        implementation of the demonstration projects authorized 
        under this section. Such report shall identify 
        statutory barriers to the ability of participants to 
        integrate more effectively their education and related 
        services to Indian students in a manner consistent with 
        the objectives of this section.
  (p) Definition.--In this section, the term ``Secretary'' 
means--
          (1) the Secretary of the Interior, in the case of an 
        applicant that is a contract or grant school, as 
        defined in section 1146 of the Education Amendments of 
        1978; or
          (2) the Secretary of Education, in the case of any 
        other applicant.

SEC. 7117. 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 
                        7161(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 
                        tribe or band of Indians (as so 
                        defined), the name, the enrollment 
                        number (if readily available), and the 
                        name and address of the organization 
                        responsible for maintaining updated and 
                        accurate membership rolls, of any 
                        parent or grandparent of the child from 
                        whom the child claims eligibility under 
                        this subpart;
                  (B) a statement of whether the tribe or band 
                of Indians (as so defined) with respect to 
                which the child, or parent or grandparent of 
                the child, claims membership is federally 
                recognized;
                  (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 7113, 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 so defined) with respect to which the child 
                claims membership; 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 computing the amount of a grant award 
        made under section 7113.
    (c) Statutory Construction.--Nothing in this section shall 
be construed to affect a definition contained in section 7161.
  (d) Forms and Standards of Proof.--The forms and the 
standards of proof (including the standard of good faith 
compliance) that were in use during the 1985-86 academic year 
to establish the eligibility of a child for entitlement under 
the Indian Elementary and Secondary School Assistance Act shall 
be the forms and standards of proof used--
          (1) to establish eligibility under this subpart; and
          (2) to meet the requirements of subsection (a).
    (e) Documentation.--For purposes of determining whether a 
child is eligible to be counted for the purpose of computing 
the amount of a grant award under section 7113, the membership 
of the child, or any parent or grandparent of the child, in a 
tribe or band of Indians (as so defined) may be established by 
proof other than an enrollment number, notwithstanding the 
availability of an enrollment number for a member of such tribe 
or band. Nothing in subsection (b) shall be construed to 
require the furnishing of an enrollment number.
    (f) Monitoring and Evaluation Review.--
          (1) In general.--
                  (A) Review.--For each fiscal year, in order 
                to provide such information as is necessary to 
                carry out the responsibility of the Secretary 
                to provide technical assistance under this 
                subpart, the Secretary shall conduct a 
                monitoring and evaluation review of a sampling 
                of the local educational agencies that are 
                recipients of grants under this subpart. The 
                sampling conducted under this paragraph shall 
                take into account the size of such a local 
                educational agency and the geographic location 
                of such agency.
                  (B) Exception.--A local educational agency 
                may not be held liable to the United States or 
                be subject to any penalty by reason of the 
                findings of an audit that relates to the date 
                of completion, or the date of submission, of 
                any forms used to establish, before April 28, 
                1988, the eligibility of a child for 
                entitlement under the Indian Elementary and 
                Secondary School Assistance Act.
          (2) False information.--Any local educational agency 
        that provides false information in an application for a 
        grant under this subpart shall--
                  (A) be ineligible to apply for any other 
                grant under this subpart; and
                  (B) be liable to the United States for any 
                funds from the grant that have not been 
                expended.
          (3) Excluded children.--A student who provides false 
        information for the form required under subsection (a) 
        shall not be counted for the purpose of computing the 
        amount of a grant award under section 7113.
  (g) Tribal Grant and Contract Schools.--Notwithstanding any 
other provision of this section, the Secretary, in computing 
the amount of a grant award under section 7113 to a tribal 
school that receives a grant or contract from the Bureau of 
Indian Affairs, shall use only 1 of the following, as selected 
by the school:
          (1) A count, certified by the Bureau, of the number 
        of students in the school.
          (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 computing the amount of 
a local educational agency's grant award under section 7113 
(other than in the case described in subsection (g)(1)), the 
local educational agency shall--
          (1) establish a date on, or a period not longer than 
        31 consecutive days during which, the agency counts 
        those children, if that date or period occurs before 
        the deadline established by the Secretary for 
        submitting an application under section 7114; and
          (2) determine that each such child was enrolled, and 
        receiving a free public education, in a school of the 
        agency on that date or during that period, as the case 
        may be.

SEC. 7118. 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 computed under section 7113. The 
Secretary shall notify the local educational agency of the 
amount of the payment not later than June 1 of the year for 
which the Secretary makes the payment.
    (b) Payments Taken Into Account by the State.--The 
Secretary may not make a grant under this subpart to a local 
educational agency for a fiscal year if, for such fiscal year, 
the State in which the local educational agency is located 
takes into consideration payments made under this subpart 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 in a State the full amount of a 
        grant award computed under section 7113 for any fiscal 
        year unless the State educational agency notifies the 
        Secretary, and the Secretary determines, that with 
        respect to the provision of free public education by 
        the local educational agency for the preceding fiscal 
        year, 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 and State 
        failed to maintain the combined fiscal effort at the 
        level specified in paragraph (1), the Secretary shall--
                  (A) reduce the amount of the grant that would 
                otherwise be made to such agency under this 
                subpart in the exact proportion of the failure 
                to maintain the fiscal effort at such level; 
                and
                  (B) not use the reduced amount of the 
                combined fiscal effort for the 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) during 
                the fiscal year for which the determination is 
                made.
          (3) Waiver.--
                  (A) In general.--The Secretary may waive the 
                requirement of paragraph (1) for a local 
                educational agency, for not more than 1 year at 
                a time, if the Secretary determines that the 
                failure to comply with such requirement is due 
                to exceptional or uncontrollable circumstances, 
                such as a natural disaster or a precipitous and 
                unforeseen decline in the agency's financial 
                resources.
                  (B) Future determinations.--The Secretary 
                shall not use the reduced amount of the 
                combined fiscal effort for the year for which 
                the 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 
                during the fiscal year for which the waiver is 
                granted.
    (d) Reallocations.--The Secretary may reallocate, in a 
manner that the Secretary determines will best carry out the 
purpose of this subpart, any amounts that--
          (1) based on estimates made by local educational 
        agencies or other information, the Secretary determines 
        will not be needed by such agencies to carry out 
        approved programs under this subpart; or
          (2) otherwise become available for reallocation under 
        this subpart.

SEC. 7119. STATE EDUCATIONAL AGENCY REVIEW.

    Before submitting an application to the Secretary under 
section 7114, a local educational agency shall submit the 
application to the State educational agency, which may comment 
on the application. If the State educational agency comments on 
the application, the agency shall comment on each such 
application submitted by a local educational agency in the 
State and shall provide the comment to the appropriate local 
educational agency, with an opportunity to respond.

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

SEC. 7121. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR INDIAN 
                    CHILDREN.

    (a) Purpose.--
          (1) In general.--The purpose of this section is 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.--In this section, the term ``eligible 
entity'' means a State educational agency, local educational 
agency, Indian tribe, Indian organization, federally supported 
elementary school or secondary school for Indian students, 
Indian institution (including an Indian institution of higher 
education) or a consortium of such entities.
  (c) Grants Authorized.--
          (1) In general.--The Secretary shall award grants to 
        eligible entities to enable such entities to carry out 
        activities that meet the purpose 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 1 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 for Indian children;
                  (F) comprehensive guidance, counseling, and 
                testing services;
                  (G) early childhood and kindergarten 
                programs, including family-based preschool 
                programs that emphasize school readiness and 
                parental skills, and the provision of services 
                to Indian children with disabilities;
                  (H) partnership projects between local 
                educational agencies and institutions of higher 
                education that allow secondary school students 
                to enroll in courses at the postsecondary level 
                to aid such students in the transition from 
                secondary 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;
                  (K) family literacy services; or
                  (L) other services that meet the purpose 
                described in subsection (a)(1).
          (2) Pre-service or in-service training.--Pre-service 
        or in-service 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) In general.--The Secretary may make 
                multiyear grants under subsection (c) for the 
                planning, development, pilot operation, or 
                demonstration of any activity described in 
                subsection (c). The Secretary shall make the 
                grants for periods of not more than 5 years.
                  (B) Priority.--In making multiyear grants 
                described in this paragraph, the Secretary 
                shall give priority to entities submitting 
                applications that present a plan for combining 
                2 or more of the activities described in 
                subsection (c) over a period of more than 1 
                year.
                  (C) Progress.--The Secretary shall make a 
                payment for a grant described in this paragraph 
                to an eligible entity after the initial year of 
                the multiyear grant period only if the 
                Secretary determines that the eligible entity 
                has made substantial progress in carrying out 
                the activities assisted under the grant in 
                accordance with the application submitted under 
                paragraph (3) and any subsequent modifications 
                to such application.
          (2) Dissemination grants.--
                  (A) In general.--In addition to awarding the 
                multiyear grants described in paragraph (1), 
                the Secretary may award grants under subsection 
                (c) to eligible entities for the dissemination 
                of exemplary materials or programs assisted 
                under this section.
                  (B) Determination.--The Secretary may award a 
                dissemination grant described in this paragraph 
                if, prior to awarding the grant, the Secretary 
                determines that the material or program to be 
                disseminated--
                          (i) has been adequately reviewed;
                          (ii) has demonstrated educational 
                        merit; and
                          (iii) can be replicated.
          (3) Application.--
                  (A) In general.--Any eligible entity that 
                desires to receive a grant under this section 
                shall submit an application to the Secretary at 
                such time and in such manner as the Secretary 
                may require.
                  (B) Contents.--Each application submitted to 
                the Secretary under subparagraph (A), other 
                than an application for a dissemination grant 
                under paragraph (2), shall contain--
                          (i) a description of how parents of 
                        Indian children and representatives of 
                        Indian tribes have been, and will be, 
                        involved in developing and implementing 
                        the activities for which assistance is 
                        sought;
                          (ii) assurances that the applicant 
                        will participate, at the request of the 
                        Secretary, in any national evaluation 
                        of activities assisted under this 
                        section;
                          (iii) information demonstrating that 
                        the proposed program for the activities 
                        is a scientifically based research 
                        program, which may include a program 
                        that has been modified to be culturally 
                        appropriate for students who will be 
                        served;
                          (iv) a description of how the 
                        applicant will incorporate the proposed 
                        activities into the ongoing school 
                        program involved once the grant period 
                        is over; and
                          (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 grant recipient under this subpart for any 
fiscal year may be used to pay for administrative costs.

SEC. 7122. PROFESSIONAL DEVELOPMENT.

  (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.--In this section, the term ``eligible 
entity'' means a consortium of--
          (1) a State or local educational agency; and
          (2) an institution of higher education (including an 
        Indian institution of higher education) or an Indian 
        tribe or organization.
  (c) Program Authorized.--The Secretary is authorized to award 
grants to eligible entities with applications approved under 
subsection (e) to enable such entities to carry out the 
activities described in subsection (d).
  (d) Authorized Activities.--
          (1) In general.--Grant funds made available under 
        subsection (c) shall be used for activities to provide 
        support and training for Indian individuals in a manner 
        consistent with the purposes of this section. Such 
        activities may include continuing programs, symposia, 
        workshops, conferences, and direct financial support.
          (2) Special rules.--
                  (A) Type of training.--For education 
                personnel, the training received pursuant to a 
                grant awarded under subsection (c) may be in-
                service or pre-service training.
                  (B) Program.--For individuals who are being 
                trained to enter any field other than 
                education, the training received pursuant to a 
                grant awarded under subsection (c) shall be in 
                a program that results in a graduate degree.
  (e) Application.--Each eligible entity desiring a grant under 
subsection (c) shall submit an application to the Secretary at 
such time, in such manner, and accompanied by such information, 
as the Secretary may reasonably require.
  (f) Special Rule.--In awarding grants under subsection (c), 
the Secretary--
          (1) shall consider the prior performance of an 
        eligible entity; and
          (2) may not limit eligibility to receive a grant 
        under subsection (c) 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 awarded under subsection (c) 
shall be awarded for a program of activities of not more than 5 
years.
  (h) Service Obligation.--
          (1) In general.--The Secretary shall require, by 
        regulation, that an individual who receives pre-service 
        training pursuant to a grant awarded under subsection 
        (c)--
                  (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 for the training.
          (2) Reporting.--The Secretary shall establish, by 
        regulation, a reporting procedure under which a 
        recipient of the pre-service training shall, not later 
        than 12 months after the date of completion of the 
        training, and periodically thereafter, provide 
        information concerning the compliance of such recipient 
        with the work requirement described in paragraph (1).
  (i) Inservice Training for Teachers of Indian Children.--
          (1) Grants authorized.--In addition to the grants 
        authorized by subsection (c), the Secretary may make 
        grants to eligible consortia for the provision of high 
        quality in-service training. The Secretary may make 
        such a grant to--
                  (A) a consortium of a tribal college and an 
                institution of higher education that awards a 
                degree in education; or
                  (B) a consortium of--
                          (i) a tribal college;
                          (ii) an institution of higher 
                        education that awards a degree in 
                        education; and
                          (iii) 1 or more elementary schools or 
                        secondary schools operated by the 
                        Bureau of Indian Affairs, local 
                        educational agencies serving Indian 
                        children, or tribal educational 
                        agencies.
          (2) Use of funds.--
                  (A) In-service training.--A consortium that 
                receives a grant under paragraph (1) shall use 
                the grant funds only to provide high quality 
                in-service training to teachers, including 
                teachers who are not Indians, in schools of 
                local educational agencies with substantial 
                numbers of Indian children enrolled in their 
                schools, in order to better meet the needs of 
                those children.
                  (B) Components.--The training described in 
                subparagraph (A) shall include such activities 
                as preparing teachers to use the best available 
                scientifically based research practices and 
                learning strategies, and to make the most 
                effective use of curricula and materials, to 
                respond to the unique needs of Indian children 
                in their classrooms.
          (3) Preference for indian applicants.--In applying 
        section 7153 to this subsection, the Secretary shall 
        give a preference to any consortium that includes 1 or 
        more of the entities described in that section.

SEC. 7123. FELLOWSHIPS FOR INDIAN STUDENTS.

  (a) Fellowships.--
          (1) Authority.--The Secretary is authorized to award 
        fellowships to Indian students to enable such students 
        to study in graduate and professional programs at 
        institutions of higher education.
          (2) Requirements.--The fellowships described in 
        paragraph (1) shall be awarded to Indian students to 
        enable such students to pursue a course of study--
                  (A) of not more than 4 academic years; and
                  (B) that leads--
                          (i) toward a postbaccalaureate degree 
                        in medicine, clinical psychology, 
                        psychology, law, education, or a 
                        related field; or
                          (ii) to an undergraduate or graduate 
                        degree in engineering, business 
                        administration, natural resources, or a 
                        related field.
  (b) Stipends.--The Secretary shall pay to Indian students 
awarded fellowships under subsection (a) such stipends 
(including allowances for subsistence of such students and 
dependents of such students) as the Secretary determines to be 
consistent with prevailing practices under comparable federally 
supported programs.
  (c) Payments to Institutions in Lieu of Tuition.--The 
Secretary shall pay to the institution of higher education at 
which such a fellowship recipient is pursuing a course of 
study, in lieu of tuition charged to such recipient, such 
amounts as the Secretary may determine to be necessary to cover 
the cost of education provided to such recipient.
  (d) Special Rules.--
          (1) In general.--If a fellowship awarded under 
        subsection (a) is vacated prior to the end of the 
        period for which the fellowship is awarded, the 
        Secretary may award an additional fellowship for 
        theunexpired portion of the period of the first 
        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 funding for the 
                fellowship; and
                  (B) any stipends or other payments that will 
                be made under this section to, or for the 
                benefit of, the individual for the academic 
                term.
          (3) Priority.--Not more than 10 percent of the 
        fellowships awarded under subsection (a) shall be 
        awarded, on a priority basis, to persons receiving 
        training in guidance counseling with a specialty in the 
        area of alcohol and substance abuse counseling and 
        education.
  (e) Service Obligation.--
          (1) In general.--The Secretary shall require, by 
        regulation, that an individual who receives financial 
        assistance under this section--
                  (A) perform work--
                          (i) related to the training for which 
                        the individual receives the assistance 
                        under this section; and
                          (ii) that benefits Indian people; or
                  (B) repay all or a prorated portion of such 
                assistance.
          (2) Reporting.--The Secretary shall establish, by 
        regulation, a reporting procedure under which a 
        recipient of assistance under this section shall, not 
        later than 12 months after the date of completion of 
        the training, and periodically thereafter, provide 
        information concerning the compliance of such recipient 
        with the work requirement described in paragraph (1).
  (f) Administration of Fellowships.--The Secretary may 
administer the fellowships authorized under this section 
through a grant to, or contract or cooperative agreement with, 
an Indian organization with demonstrated qualifications to 
administer all facets of the program assisted under this 
section.

SEC. 7124. GIFTED AND TALENTED INDIAN STUDENTS.

  (a) Program Authorized.--The Secretary is authorized to--
          (1) establish 2 centers for gifted and talented 
        Indian students at tribally controlled community 
        colleges in accordance with this section; and
          (2) support demonstration projects described in 
        subsection (c).
  (b) Eligible Entities.--The Secretary shall make grants, or 
enter into contracts, for the activities described in 
subsection (a), to or with--
          (1) 2 tribally controlled community colleges that--
                  (A) are eligible for funding under the 
                Tribally Controlled College or University 
                Assistance Act of 1978; and
                  (B) are fully accredited; or
          (2) if the Secretary does not receive applications 
        that the Secretary determines to be approvable from 2 
        colleges that meet the requirements of paragraph (1), 
        the American Indian Higher Education Consortium.
  (c) Use of Funds.--
          (1) In general.--Funds made available through the 
        grants made, or contracts entered into, by the 
        Secretary under subsection (b) shall be used for--
                  (A) the establishment of centers described in 
                subsection (a); and
                  (B) carrying out demonstration projects 
                designed to--
                          (i) address the special needs of 
                        Indian students in elementary schools 
                        and secondary schools who are gifted 
                        and talented; and
                          (ii) provide such support services to 
                        the families of the students described 
                        in clause (i) as are needed to enable 
                        such students to benefit from the 
                        projects.
          (2) Subcontracts.--Each recipient of a grant or 
        contract under subsection (b) to carry out a 
        demonstration project under subsection (a) may enter 
        into a contract with any other entity, including the 
        Children's Television Workshop, to carry out the 
        demonstration project.
          (3) Demonstration projects.--Demonstration projects 
        assisted under subsection (b) may include--
                  (A) the identification of the special needs 
                of gifted and talented Indian students, 
                particularly at the elementary school level, 
                giving attention to--
                          (i) identifying the emotional and 
                        psychosocial needs of such students; 
                        and
                          (ii) providing such support services 
                        to the families of such students as are 
                        needed to enable such students to 
                        benefit from the project;
                  (B) the conduct of educational, psychosocial, 
                and developmental activities that the Secretary 
                determines hold a reasonable promise of 
                resulting in substantial progress toward 
                meeting the educational needs of such gifted 
                and talented children, including--
                          (i) demonstrating and exploring the 
                        use of Indian languages and exposure to 
                        Indian cultural traditions; and
                          (ii) carrying out mentoring and 
                        apprenticeship programs;
                  (C) the provision of technical assistance and 
                the coordination of activities at schools that 
                receive grants under subsection (d) with 
                respect to the activities assisted under such 
                grants, the evaluation of programs assisted 
                under such grants, or the dissemination of such 
                evaluations;
                  (D) the use of public television in meeting 
                the special educational needs of such gifted 
                and talented children;
                  (E) leadership programs designed to replicate 
                programs for such children throughout the 
                United States, including disseminating 
                information derived from the demonstration 
                projects conducted under subsection (a); and
                  (F) appropriate research, evaluation, and 
                related activities pertaining to the needs of 
                such children and to the provision of such 
                support services to the families of such 
                children as are needed to enable such children 
                to benefit from the project.
          (4) Application.--Each entity desiring a grant or 
        contract under subsection (b) 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 
        (referred to individually in this section as a `Bureau 
        school') for program research and development and the 
        development and dissemination of curriculum and teacher 
        training material, regarding--
                  (A) gifted and talented students;
                  (B) college preparatory studies (including 
                programs for Indian students with an interest 
                in pursuing teaching careers);
                  (C) students with special culturally related 
                academic needs, including students with social, 
                lingual, and cultural needs; or
                  (D) mathematics and science education.
          (2) Applications.--Each Bureau school desiring a 
        grant to conduct 1 or more of the activities described 
        in paragraph (1) shall submit an application to the 
        Secretary at such time and in such manner 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, a grant awarded under paragraph (1) 
        shall be awarded for a 3-year period and may be renewed 
        by the Secretary for additional 3-year periods if the 
        Secretary determines that the performance of the grant 
        recipient has been satisfactory.
          (6) Dissemination.--
                  (A) Cooperative efforts.--The dissemination 
                of any materials developed from activities 
                assisted under paragraph (1) shall be carried 
                out in cooperation with entities that receive 
                funds pursuant to subsection (b).
                  (B) Report.--The Secretary shall prepare and 
                submit to the Secretary of the Interior and to 
                Congress a report concerning any results from 
                activities described in this subsection.
          (7) Evaluation costs.--
                  (A) Division.--The costs of evaluating any 
                activities assisted under paragraph (1) shall 
                be divided between the Bureau schools 
                conducting such activities and the recipients 
                of grants or contracts under subsection (b) 
                whoconduct demonstration projects under 
                subsection (a).
                  (B) Grants and contracts.--If no funds are 
                provided under subsection (b) for--
                          (i) the evaluation of activities 
                        assisted under paragraph (1);
                          (ii) technical assistance and 
                        coordination with respect to such 
                        activities; or
                          (iii) the dissemination of the 
                        evaluations referred to in clause (i),
                the Secretary shall make such grants, or enter 
                into such contracts, as are necessary to 
                provide for the evaluations, technical 
                assistance, and coordination of such 
                activities, and the dissemination of the 
                evaluations.
  (e) Information Network.--The Secretary shall encourage each 
recipient of a grant or contract under this section to work 
cooperatively as part of a national network to ensure that the 
information developed by the grant or contract recipient is 
readily available to the entire educational community.

SEC. 7125. GRANTS TO TRIBES FOR EDUCATION ADMINISTRATIVE PLANNING AND 
                    DEVELOPMENT.

  (a) In General.--The Secretary may make grants to Indian 
tribes, and tribal organizations approved by Indian tribes, to 
plan and develop a centralized tribal administrative entity 
to--
          (1) coordinate all education programs operated by the 
        tribe or within the territorial jurisdiction of the 
        tribe;
          (2) develop education codes for schools within the 
        territorial jurisdiction of the tribe;
          (3) provide support services and technical assistance 
        to schools serving children of the tribe; and
          (4) perform child-find screening services for the 
        preschool-aged children of the tribe to--
                  (A) ensure placement in appropriate 
                educational facilities; and
                  (B) coordinate the provision of any needed 
                special services for conditions such as 
                disabilities and English language skill 
                deficiencies.
  (b) Period of Grant.--Each grant awarded under this section 
may be awarded for a period of not more than 3 years. Such 
grant may be renewed upon the termination of the initial period 
of the grant if the grant recipient demonstrates to the 
satisfaction of the Secretary that renewing the grant for an 
additional 3-year period is necessary to carry out the 
objectives of the grant described in subsection (c)(2)(A).
  (c) Application for Grant.--
          (1) In general.--Each Indian tribe and tribal 
        organization desiring a grant under this section shall 
        submit an application to the Secretary at such time, in 
        such manner, containing such information, and 
        consistent with such criteria, as the Secretary may 
        prescribe in regulations.
          (2) Contents.--Each application described in 
        paragraph (1) shall contain--
                  (A) a statement describing the activities to 
                be conducted, and the objectives to be 
                achieved, under the grant; and
                  (B) a description of the method to be used 
                for evaluating the effectiveness of the 
                activities for which assistance is sought and 
                for determining whether such objectives are 
                achieved.
          (3) Approval.--The Secretary may approve an 
        application submitted by a tribe or tribal organization 
        pursuant to this section only if the Secretary is 
        satisfied that such application, including any 
        documentation submitted with the application--
                  (A) demonstrates that the applicant has 
                consulted with other education entities, if 
                any, within the territorial jurisdiction of the 
                applicant who will be affected by the 
                activities to be conducted under the grant;
                  (B) provides for consultation with such other 
                education entities in the operation and 
                evaluation of the activities conducted under 
                the grant; and
                  (C) demonstrates that there will be adequate 
                resources provided under this section or from 
                other sources to complete the activities for 
                which assistance is sought, except that the 
                availability of such other resources shall not 
                be a basis for disapproval of such application.
  (d) Restriction.--A tribe may not receive funds under this 
section if such tribe receives funds under section 1144 of the 
Education Amendments of 1978.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Education to carry out this 
section $3,000,000 for each of fiscal years 2002 through 2008.

  Subpart 3--Special Programs Relating to Adult Education for Indians

SEC. 7131. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT INDIANS.

  (a) In General.--The Secretary shall make 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) the provision of basic literacy 
                opportunities for all nonliterate Indian 
                adults; and
                  (B) the provision of opportunities to all 
                Indian adults to qualify for a secondary school 
                diploma, or its recognized equivalent, in the 
                shortest period of time feasible;
          (3) to support a major research and development 
        program to develop more innovative and effective 
        techniques for achieving literacy and secondary school 
        equivalency for Indians;
          (4) to provide for basic surveys and evaluations to 
        define accurately the extent of the problems of 
        illiteracy and lack of secondary school completion 
        among Indians; and
          (5) to encourage the dissemination of information and 
        materials relating to, and the evaluation of, the 
        effectiveness of education programs that may offer 
        educational opportunities to Indian adults.
  (b) Educational Services.--The Secretary may make grants to 
Indian tribes, institutions, and organizations to develop and 
establish educational services and programs specifically 
designed to improve educational opportunities for Indian 
adults.
  (c) Information and Evaluation.--The Secretary may make 
grants to, and enter into contracts with, public agencies and 
institutions and Indian tribes, institutions, and 
organizations, for--
          (1) the dissemination of information concerning 
        educational programs, services, and resources available 
        to Indian adults, including evaluations of the 
        programs, services, and resources; and
          (2) the evaluation of federally assisted programs in 
        which Indian adults may participate to determine the 
        effectiveness of the programs in achieving the purposes 
        of the programs with respect to Indian adults.
  (d) Applications.--
          (1) In general.--Each entity desiring a grant or 
        contract under this section shall submit to the 
        Secretary an application at such time, in such manner, 
        containing such information, and consistent with such 
        criteria, as the Secretary may prescribe in 
        regulations.
          (2) Contents.--Each application described in 
        paragraph (1) shall contain--
                  (A) a statement describing the activities to 
                be conducted and the objectives to be achieved 
                under the grant or contract; and
                  (B) a description of the method to be used 
                for evaluating the effectiveness of the 
                activities for which assistance is sought and 
                determining whether the objectives of the grant 
                or contract are achieved.
          (3) Approval.--The Secretary shall not approve an 
        application described in paragraph (1) unless the 
        Secretary determines that such application, including 
        any documentation submitted with the application, 
        indicates that--
                  (A) there has been adequate participation, by 
                the individuals to be served and the 
                appropriate tribal communities, in the planning 
                and development of the activities to be 
                assisted; and
                  (B) the individuals and tribal communities 
                referred to in subparagraph (A) will 
                participate in the operation and evaluation of 
                the activities to be assisted.
          (4) Priority.--In approving applications under 
        paragraph (1), the Secretary shall give priority to 
        applications from Indian educational agencies, 
        organizations, and institutions.
  (e) Administrative Costs.--Not more than 5 percent of the 
funds made available to an entity through a grant or contract 
made or entered into under this section for a fiscal year may 
be used to pay for administrative costs.

                Subpart 4--National Research Activities

SEC. 7141. NATIONAL ACTIVITIES.

  (a) Authorized Activities.--The Secretary may use funds made 
available under section 7162(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 of Educational Research and 
        Improvement; and
          (2) may include collaborative research activities 
        that are jointly funded and carried out by the Office 
        of Indian Education and the Office of Educational 
        Research and Improvement.
  (d) Administrative Costs.--Not more than 5 percent of the 
funds made available to an entity through a grant, contract, or 
agreement made or entered into under this subpart for a fiscal 
year may be used to pay for administrative costs.

                   Subpart 5--Federal Administration

SEC. 7151. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

  (a) Membership.--There is established a National Advisory 
Council on Indian Education (referred to in this section 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 
        Indian 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) prepare and submit to 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 to be 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. 7152. PEER REVIEW.

  The Secretary may use a peer review process to review 
applications submitted to the Secretary under subpart 2, 3, or 
4.

SEC. 7153. PREFERENCE FOR INDIAN APPLICANTS.

  In making grants and entering into contracts or cooperative 
agreements 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, contracts, or cooperative agreements.

SEC. 7154. MINIMUM GRANT CRITERIA.

  The Secretary may not approve an application for a grant, 
contract, or cooperative agreement under subpart 2 or 3 unless 
the application is for a grant, contract, or cooperative 
agreement that is--
          (1) of sufficient size, scope, and quality to achieve 
        the purpose or objectives of such grant, contract, or 
        cooperative agreement; and
          (2) based on relevant research findings.

        Subpart 6--Definitions; Authorizations of Appropriations

SEC. 7161. DEFINITIONS.

  In this part:
          (1) Adult.--The term `adult' means an individual 
        who--
                  (A) has attained age 16; 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) an individual who is considered by the 
                Secretary of the Interior to be an Indian for 
                any purpose;
                  (D) an Eskimo, Aleut, or other Alaska Native 
                (as defined in section 7306); or
                  (E) a member of an organized Indian group 
                that received a grant under the Indian 
                Education Act of 1988 as in effect the day 
                preceding the date of enactment of the 
                ``Improving America's Schools Act of 1994' (108 
                Stat. 3518).

SEC. 7162. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Subpart 1.--There are authorized to be appropriated to 
the Secretary of Education to carry out subpart 1 $93,000,000 
for fiscal year 2002 and such sums as may be necessary for each 
of the 6 succeeding fiscal years.
    (b) Subparts 2 Through 4.--There are authorized to be 
appropriated to the Secretary of Education to carry out 
subparts 2, 3, and 4 $20,000,000 for fiscal year 2002 and such 
sums as may be necessary for each of the 6 succeeding fiscal 
years.

                   PART B--NATIVE HAWAIIAN EDUCATION

SEC. 7201. SHORT TITLE.

    This part may be cited as the ``Native Hawaiian Education 
Act''.

SEC. 7202. FINDINGS.

  Congress finds the following:
          (1) Native Hawaiians are a distinct and unique 
        indigenous people with a historical continuity to the 
        original inhabitants of the Hawaiian archipelago, whose 
        society was organized as a nation and internationally 
        recognized as a nation by the United States, Britain, 
        France, and Japan, as evidenced by treaties governing 
        friendship, commerce, and navigation.
          (2) At the time of the arrival of the first 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 monarchal 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, in 1993 the United States apologized to Native 
        Hawaiians for the overthrow and the deprivation of the 
        rights of Native Hawaiians to self-determination 
        through Public Law 103-150 (107 Stat. 1510).
          (6) In 1898, the joint resolution entitled ``Joint 
        Resolution to provide for annexing the Hawaiian Islands 
        to the United States'', approved July 7, 1898 (30 Stat. 
        750), ceded absolute title of all lands held by the 
        Republic of 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 the 
        lands be used ``solely forthe benefit of the 
        inhabitants of the Hawaiian Islands for educational and 
        other public purposes''.
          (7) By 1919, the Native Hawaiian population had 
        declined from an estimated 1,000,000 in 1778 to an 
        alarming 22,600, and in recognition of this severe 
        decline, Congress enacted the Hawaiian Homes Commission 
        Act, 1920 (42 Stat. 108), which designated 
        approximately 200,000 acres of ceded public lands for 
        homesteading by Native Hawaiians.
          (8) Through the enactment of the Hawaiian Homes 
        Commission Act, 1920, Congress affirmed the special 
        relationship between the United States and the Native 
        Hawaiians, which was described by then Secretary of the 
        Interior Franklin K. Lane, who said: ``One thing that 
        impressed me . . . was the fact that the natives of the 
        island who are our wards, I should say, and for whom in 
        a sense we are trustees, are falling off rapidly in 
        numbers and many of them are in poverty.''.
          (9) In 1938, Congress again acknowledged the unique 
        status of the Hawaiian people by including in the Act 
        of June 20, 1938 (52 Stat. 781, chapter 530; 16 U.S.C. 
        391b, 391b-1, 392b, 392c, 396, 396a), a provision to 
        lease lands within the National Parks extension to 
        Native Hawaiians and to permit fishing in the area 
        ``only by native Hawaiian residents of said area or of 
        adjacent villages and by visitors under their 
        guidance.''.
          (10) Under the Act entitled ``An Act to provide for 
        the admission of the State of 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 between the United 
        States and the Hawaiian people by retaining the 
        exclusive power to enforce the trust, including the 
        power to approve land exchanges and amendments to such 
        Act affecting the rights of beneficiaries under such 
        Act.
          (11) In 1959, under the Act entitled ``An Act to 
        provide for the admission of the State of Hawai`i into 
        the Union'', the United States also 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 that existed between the United 
        States and the Hawaiian people by retaining the legal 
        responsibility to enforce the public trust 
        responsibility of the State of 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 has recognized and reaffirmed 
        that--
                  (A) Native Hawaiians have a cultural, 
                historic, and land-based link to the indigenous 
                people who exercised sovereignty over the 
                Hawaiian Islands, and that group has never 
                relinquished its claims to sovereignty or its 
                sovereign lands;
                  (B) Congress does not extend services to 
                Native Hawaiians because of their race, but 
                because of their unique status as the 
                indigenous people of a once sovereign nation as 
                to whom the United States has established a 
                trust relationship;
                  (C) Congress has also delegated broad 
                authority to administer a portion of the 
                Federal trust responsibility to the State of 
                Hawai`i;
                  (D) the political status of Native Hawaiians 
                is comparable to that of American Indians and 
                Alaska Natives; and
                  (E) the aboriginal, indigenous people of the 
                United States have--
                          (i) a continuing right to autonomy in 
                        their internal affairs; and
                          (ii) an ongoing right of self-
                        determination and self-governance that 
                        has never been extinguished.
          (13) The political relationship between the United 
        States and the Native Hawaiian people has been 
        recognized and reaffirmed by the United States, as 
        evidenced by the inclusion of Native Hawaiians in--
                  (A) the Native American Programs Act of 1974 
                (42 U.S.C. 2991 et seq.);
                  (B) the American Indian Religious Freedom Act 
                (42 U.S.C. 1996);
                  (C) the National Museum of the American 
                Indian Act (20 U.S.C. 80q et seq.);
                  (D) the Native American Graves Protection and 
                Repatriation Act (25 U.S.C. 3001 et seq.);
                  (E) the National Historic Preservation Act 
                (16 U.S.C. 470 et seq.);
                  (F) the Native American Languages Act (25 
                U.S.C. 2901 et seq.);
                  (G) the American Indian, Alaska Native, and 
                Native Hawaiian Culture and Art Development Act 
                (20 U.S.C. 4401 et seq.);
                  (H) the Workforce Investment Act of 1998 (29 
                U.S.C. 2801 et seq.); and
                  (I) the Older Americans Act of 1965 (42 
                U.S.C. 3001 et seq.).
          (14) In 1981, Congress instructed the Office of 
        Education to submit to Congress a comprehensive report 
        on Native Hawaiian education. The report, entitled the 
        ``Native Hawaiian Educational Assessment Project'', was 
        released in 1983 and documented that Native Hawaiians 
        scored below parity with regard to national norms on 
        standardized achievement tests, were disproportionately 
        represented in many negative social and physical 
        statistics indicative of special educational needs, and 
        had educational needs that were related to their unique 
        cultural situation, such as different learning styles 
        and low self-image.
          (15) In recognition of the educational needs of 
        Native Hawaiians, in 1988, Congress enacted title IV of 
        the Augustus F. Hawkins-Robert T. Stafford Elementary 
        and Secondary School Improvement Amendments of 1988 
        (102 Stat. 130) to authorize and develop supplemental 
        educational programs to address the unique conditions 
        of Native Hawaiians.
          (16) In 1993, the Kamehameha Schools Bishop Estate 
        released a 10-year update of findings of the Native 
        Hawaiian Educational Assessment Project, which found 
        that despite the successes of the programs established 
        under title IV of the Augustus F. Hawkins-Robert T. 
        Stafford Elementary and Secondary School Improvement 
        Amendments of 1988, many of the same educational needs 
        still existed for Native Hawaiians. Subsequent reports 
        by the Kamehameha Schools Bishop Estate and other 
        organizations have generally confirmed those findings. 
        For example--
                  (A) educational risk factors continue to 
                start even before birth for many Native 
                Hawaiian children, including--
                          (i) late or no prenatal care;
                          (ii) high rates of births by Native 
                        Hawaiian women who are unmarried; and
                          (iii) high rates of births to teenage 
                        parents;
                  (B) Native Hawaiian students continue to 
                begin their school experience lagging behind 
                other students in terms of readiness factors 
                such as vocabulary test scores;
                  (C) Native Hawaiian students continue to 
                score below national norms on standardized 
                education achievement tests at all grade 
                levels;
                  (D) both public and private schools continue 
                to show a pattern of lower percentages of 
                Native Hawaiian students in the uppermost 
                achievement levels and in gifted and talented 
                programs;
                  (E) Native Hawaiian students continue to be 
                overrepresented among students qualifying for 
                special education programs provided to students 
                with learning disabilities, mild mental 
                retardation, emotional impairment, and other 
                such disabilities;
                  (F) Native Hawaiians continue to be 
                underrepresented in institutions of higher 
                education and among adults who have completed 4 
                or more years of college;
                  (G) Native Hawaiians continue to be 
                disproportionately represented in many negative 
                social and physical statistics indicative of 
                special educational needs, as demonstrated by 
                the fact that--
                          (i) Native Hawaiian students are more 
                        likely to be retained in grade level 
                        and to be excessively absent in 
                        secondary school;
                          (ii) Native Hawaiian students have 
                        the highest rates of drug and alcohol 
                        use 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.
          (17) In the 1998 National Assessment of Educational 
        Progress, Hawaiian fourth-graders ranked 39th among 
        groups of students from 39 States in reading. Given 
        that Hawaiian students rank among the lowest groups of 
        students nationally in reading, and that Native 
        Hawaiian students rank the lowest among Hawaiian 
        students in reading, it is imperative that greater 
        focus be placed on beginning reading and early 
        education and literacy in Hawai`i.
          (18) The findings described in paragraphs (16) and 
        (17) are inconsistent with the high rates of literacy 
        and integration of traditional culture and Western 
        education historically achieved by Native Hawaiians 
        through a Hawaiian language-based public school system 
        established in 1840 by Kamehameha III.
          (19) Following the overthrow of the Kingdom of 
        Hawai`i in 1893, Hawaiian medium schools were banned. 
        After annexation, throughout the territorial and 
        statehood period of Hawai`i, and until 1986, use of the 
        Hawaiian language as an instructional medium in 
        education in public schools was declared unlawful. The 
        declaration caused incalculable harm to a culture that 
        placed a very high value on the power of language, as 
        exemplified in the traditional saying: ``I ka `olelo no 
        ke ola; I ka `olelo no ka make. In the language rests 
        life; In the language rests death.''.
          (20) Despite the consequences of over 100 years of 
        nonindigenous influence, the Native Hawaiian people are 
        determined to preserve, develop, and transmit to future 
        generations their ancestral territory and their 
        cultural identity in accordance with their own 
        spiritual and traditional beliefs, customs, practices, 
        language, and social institutions.
          (21) The State of 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;
                  (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; and
                  (C) promotes the study of the Hawaiian 
                culture, language, and history by providing a 
                Hawaiian education program and using community 
                expertise as a suitable and essential means to 
                further the program.

SEC. 7203. PURPOSES.

  The purposes of this part are to--
          (1) authorize and develop innovative educational 
        programs to assist Native Hawaiians;
          (2) provide direction and guidance to appropriate 
        Federal, State, and local agencies to focus resources, 
        including resources made available under this part, on 
        Native Hawaiian education, and to provide periodic 
        assessment and data collection;
          (3) supplement and expand programs and authorities in 
        the area of education to further the purposes of this 
        title; and
          (4) encourage the maximum participation of Native 
        Hawaiians in planning and management of Native Hawaiian 
        education programs.

SEC. 7204. 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 
(referred to in this part as the ``Education Council'').
  (b) Composition of Education Council.--The Education Council 
shall consist of not more than 21 members, unless otherwise 
determined by a majority of the council.
  (c) Conditions and Terms.--
          (1) Conditions.--At least 10 members of the Education 
        Council shall be Native Hawaiian education service 
        providers and 10 members of the Education Council shall 
        be Native Hawaiians or Native Hawaiian education 
        consumers. In addition, a representative of the State 
        of Hawai`i Office of Hawaiian Affairs shall serve as a 
        member of the Education Council.
          (2) Appointments.--The members of the Education 
        Council shall be appointed by the Secretary based on 
        recommendations received from the Native Hawaiian 
        community.
          (3) Terms.--Members of the Education Council shall 
        serve for staggered terms of 3 years, except as 
        provided in paragraph (4).
          (4) Council determinations.--Additional conditions 
        and terms relating to membership on the Education 
        Council, including term lengths and term renewals, 
        shall be determined by a majority of the Education 
        Council.
  (d) Native Hawaiian Education Council Grant.--The Secretary 
shall make a direct grant to the Education Council 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;
          (2) assess the extent to which such services and 
        programs meet the needs of Native Hawaiians, and 
        collect data on the status of Native Hawaiian 
        education;
          (3) provide direction and guidance, through the 
        issuance of reports and recommendations, to appropriate 
        Federal, State, and local agencies in order to focus 
        and improve the use of resources, including resources 
        made available under this part, relating to Native 
        Hawaiian education, and serve, where appropriate, in an 
        advisory capacity; and
          (4) make direct grants, if such grants enable the 
        Education Council to carry out the duties of the 
        Education Council, as described in paragraphs (1) 
        through (3).
  (e) Additional Duties of the Education Council.--
          (1) In general.--The Education Council shall provide 
        copies of any reports and recommendations issued by the 
        Education Council, including any information that the 
        Education Council provides to the Secretary pursuant to 
        subsection (i), to the Secretary, the Committee on 
        Education and the Workforce of the House of 
        Representatives, and the Committee on Indian Affairs of 
        the Senate.
          (2) Annual report.--The Education Council shall 
        prepare and submit to the Secretary an annual report on 
        the Education Council's activities.
          (3) Island council support and assistance.--The 
        Education Council shall provide such administrative 
        support and financial assistance to the island councils 
        established pursuant to subsection (f) as the Secretary 
        determines to be appropriate, in a manner that supports 
        the distinct needs of each island council.
  (f) Establishment of Island Councils.--
          (1) In general.--In order to better effectuate the 
        purposes of this part and to ensure the adequate 
        representation of island and community interests within 
        the Education Council, the Secretary is authorized to 
        facilitate the establishment of Native Hawaiian 
        education island councils (referred to individually in 
        this part as an ``island council'') for the following 
        islands:
                  (A) Hawai`i.
                  (B) Maui.
                  (C) Moloka`i.
                  (D) Lana`i.
                  (E) O`ahu.
                  (F) Kaua`i.
                  (G) Ni`ihau.
          (2) Composition of island councils.--Each island 
        council shall consist of parents, students, and other 
        community members who have an interest in the education 
        of Native Hawaiians, and shall be representative of 
        individuals concerned with the educational needs of all 
        age groups, from children in preschool through adults. 
        At least \3/4\ of the members of each island council 
        shall be Native Hawaiians.
  (g) Administrative Provisions Relating to Education Council 
and Island Councils.--The Education Council and each island 
council shall meet at the call of the chairperson of the 
appropriate council, or upon the request of the majority of the 
members of the appropriate council, but in any event not less 
often than 4 times during each calendar year. The provisions of 
the Federal Advisory Committee Act shall not apply to the 
Education Council and each island council.
  (h) Compensation.--Members of the Education Council and each 
island council shall not receive any compensation for service 
on the Education Council and each island council, respectively.
  (i) Report.--Not later than 4 years after the date of 
enactment of the Better Education for Students and Teachers 
Act, the Secretary shall prepare and submit to the Committee on 
Education and the Workforce of the House of Representatives and 
the Committee on Indian Affairs of the Senate a report that 
summarizes the annual reports of the Education Council, 
describes the allocation and use of funds under this part, and 
contains recommendations for changes in Federal, State, and 
local policy to advance the purposes of this part.
  (j) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section $300,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years. Funds appropriated under this 
subsection shall remain available until expended.

SEC. 7205. PROGRAM AUTHORIZED.

  (a) General Authority.--
          (1) Grants and contracts.--The Secretary is 
        authorized to make direct grants to, or enter into 
        contracts with--
                  (A) Native Hawaiian educational 
                organizations;
                  (B) Native Hawaiian community-based 
                organizations;
                  (C) public and private nonprofit 
                organizations, agencies, and institutions with 
                experience in developing or operating Native 
                Hawaiian programs or programs of instruction in 
                the Native Hawaiian language; and
                  (D) consortia of the organizations, agencies, 
                and institutions described in subparagraphs (A) 
                through (C),
        to carry out programs that meet the purposes of this 
        part.
          (2) Priorities.--In awarding grants or contracts to 
        carry out activities described in paragraph (3), the 
        Secretary shall give priority to entities proposing 
        projects that are designed to address--
                  (A) beginning reading and literacy among 
                students in kindergarten through third grade;
                  (B) the needs of at-risk children and youth;
                  (C) needs in fields or disciplines in which 
                Native Hawaiians are underemployed; and
                  (D) the use of the Hawaiian language in 
                instruction.
          (3) Authorized activities.--Activities provided 
        through programs carried out under this part may 
        include--
                  (A) the development and maintenance of a 
                statewide Native Hawaiian early education and 
                care system to provide a continuum of services 
                for Native Hawaiian children from the prenatal 
                period of the children through age 5;
                  (B) the operation of family-based education 
                centers that provide such services as--
                          (i) programs for Native Hawaiian 
                        parents and their infants from the 
                        prenatal period of the infants through 
                        age 3;
                          (ii) preschool programs for Native 
                        Hawaiians; and
                          (iii) research on, and development 
                        and assessment of, family-based, early 
                        childhood, and preschool programs for 
                        Native Hawaiians;
                  (C) activities that enhance beginning reading 
                and literacy in either the Hawaiian or the 
                English language among Native Hawaiian students 
                in kindergarten through third grade and 
                assistance in addressing the distinct features 
                of combined English and Hawaiian literacy for 
                Hawaiian speakers in fifth and sixth grade;
                  (D) activities to meet the special needs of 
                Native Hawaiian students with disabilities, 
                including--
                          (i) the identification of such 
                        students and their needs;
                          (ii) the provision of support 
                        services to the families of those 
                        students; and
                          (iii) other activities consistent 
                        with the requirements of the 
                        Individuals with Disabilities Education 
                        Act;
                  (E) activities that address the special needs 
                of Native Hawaiian students who are gifted and 
                talented, including--
                          (i) educational, psychological, and 
                        developmental activities designed to 
                        assist in the educational progress of 
                        those students; and
                          (ii) activities that involve the 
                        parents of those students in a manner 
                        designed to assist in the students' 
                        educational progress;
                  (F) the development of academic and 
                vocational curricula to address the needs of 
                Native Hawaiian children and adults, including 
                curriculum materials in the Hawaiian language 
                and mathematics and science curricula that 
                incorporate Native Hawaiian tradition and 
                culture;
                  (G) professional development activities for 
                educators, including--
                          (i) the development of programs to 
                        prepare prospective teachers to address 
                        the unique needs of Native Hawaiian 
                        students within the context of Native 
                        Hawaiian culture, language, and 
                        traditions;
                          (ii) in-service programs to improve 
                        the ability of teachers who teach in 
                        schools with concentrations of Native 
                        Hawaiian students to meet those 
                        students' unique needs; and
                          (iii) the recruitment and preparation 
                        of Native Hawaiians, and other 
                        individuals who live in communities 
                        with a high concentration of Native 
                        Hawaiians, to become teachers;
                  (H) the operation of community-based learning 
                centers that address the needs of Native 
                Hawaiian families and communities through the 
                coordination of public and private programs and 
                services, including--
                          (i) preschool programs;
                          (ii) after-school programs; and
                          (iii) vocational and adult education 
                        programs;
                  (I) activities to enable Native Hawaiians to 
                enter and complete programs of postsecondary 
                education, including--
                          (i) provision of full or partial 
                        scholarships for undergraduate or 
                        graduate study that are awarded to 
                        students based on their academic 
                        promise and financial need, with a 
                        priority, at the graduate level, given 
                        to students entering professions in 
                        which Native Hawaiians are 
                        underrepresented;
                          (ii) family literacy services;
                          (iii) counseling and support services 
                        for students receiving scholarship 
                        assistance;
                          (iv) counseling and guidance for 
                        Native Hawaiian secondary students who 
                        have the potential to receive 
                        scholarships; and
                          (v) faculty development activities 
                        designed to promote the matriculation 
                        of Native Hawaiian students;
                  (J) research and data collection activities 
                to determine the educational status and needs 
                of Native Hawaiian children and adults;
                  (K) other research and evaluation activities 
                related to programs carried out under this 
                part; and
                  (L) other activities, consistent with the 
                purposes of this part, to meet the educational 
                needs of Native Hawaiian children and adults.
          (4) Special rule and conditions.--
                  (A) Institutions outside hawaii.--The 
                Secretary shall not establish a policy under 
                this section that prevents a Native Hawaiian 
                student enrolled at a 2- or 4-year degree 
                granting institution of higher education 
                outside of the State of Hawai`i from receiving 
                a scholarship pursuant to paragraph (3)(I).
                  (B) Scholarship conditions.--The Secretary 
                shall establish conditions for receipt of a 
                scholarship awarded under paragraph (3)(I). The 
                conditions shall require that an individual 
                seeking such a scholarship enter into a 
                contract to provide professional services, 
                either during the scholarship period or upon 
                completion of a program of postsecondary 
                education, to the Native Hawaiian community.
  (b) Administrative Costs.--Not more than 5 percent of funds 
provided to a grant recipient under this section for any fiscal 
year may be used for administrative purposes.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section $28,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of 
the 6 succeeding fiscal years. Funds appropriated under this 
subsection shall remain available until expended.

SEC. 7206. ADMINISTRATIVE PROVISIONS.

  (a) Application Required.--No grant may be made under this 
part, and no contract may be entered into under this part, 
unless the entity seeking the grant or contract submits an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may determine to 
be necessary to carry out the provisions of this part.
  (b) Special Rule.--Each applicant for a grant or contract 
under this part shall submit the application for comment to the 
local educational agency serving students who will participate 
in the program to be carried out underthe grant or contract, 
and include those comments, if any, with the application to the 
Secretary.

SEC. 7207. DEFINITIONS.

  In this part:
          (1) Native hawaiian.--The term ``Native Hawaiian'' 
        means any individual who is--
                  (A) a citizen of the United States; and
                  (B) a descendant of the aboriginal people 
                who, prior to 1778, occupied and exercised 
                sovereignty in the area that now comprises the 
                State of 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) Native hawaiian community-based organization.--
        The term ``Native Hawaiian community-based 
        organization'' means any organization that is composed 
        primarily of Native Hawaiians from a specific community 
        and that assists in the social, cultural, and 
        educational development of Native Hawaiians in that 
        community.
          (3) Native hawaiian educational organization.--The 
        term ``Native Hawaiian educational organization'' means 
        a private nonprofit organization that--
                  (A) serves the interests of Native Hawaiians;
                  (B) has Native Hawaiians in substantive and 
                policymaking positions within the organization;
                  (C) incorporates Native Hawaiian perspective, 
                values, language, culture, and traditions into 
                the core function of the organization;
                  (D) has demonstrated expertise in the 
                education of Native Hawaiian youth; and
                  (E) has demonstrated expertise in research 
                and program development.
          (4) Native hawaiian language.--The term ``Native 
        Hawaiian language'' means the single Native American 
        language indigenous to the original inhabitants of the 
        State of Hawai`i.
          (5) Native hawaiian organization.--The term ``Native 
        Hawaiian organization'' means a private nonprofit 
        organization that--
                  (A) serves the interests of Native Hawaiians;
                  (B) has Native Hawaiians in substantive and 
                policymaking positions within the 
                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.
          (6) Office of hawaiian affairs.--The term ``Office of 
        Hawaiian Affairs'' means the office of Hawaiian Affairs 
        established by the Constitution of the State of 
        Hawai`i.

                    PART C--ALASKA NATIVE EDUCATION

SEC. 7301. SHORT TITLE.

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

SEC. 7302. FINDINGS.

  Congress finds the following:
          (1) The attainment of educational success is critical 
        to the betterment of the conditions, long-term well-
        being, and preservation of the culture of Alaska 
        Natives.
          (2) It is the policy of the Federal Government to 
        encourage the maximum participation by Alaska Natives 
        in the planning and the management of Alaska Native 
        education programs.
          (3) Alaska Native children enter and exit school with 
        serious educational handicaps.
          (4) The educational achievement of Alaska Native 
        children is far below national norms. Native 
        performance on standardized tests is low, Native 
        student dropout rates are high, and Natives are 
        significantly underrepresented among holders of 
        baccalaureate degrees in the State of Alaska. As a 
        result, Native students are being denied their 
        opportunity to become full participants in society by 
        grade school and high school educations that are 
        condemning an entire generation to an underclass status 
        and a life of limited choices.
          (5) The programs authorized in this title, combined 
        with expanded Head Start, infant learning and early 
        childhood education programs, and parent education 
        programs are essential if educational handicaps are to 
        be overcome.
          (6) The sheer magnitude of the geographic barriers to 
        be overcome in delivering educational services in rural 
        Alaska and Alaska villages should be addressed through 
        the development and implementation of innovative, model 
        programs in a variety of areas.
          (7) 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. 7303. PURPOSES.

  The purposes of this part are to--
          (1) recognize the unique educational needs of Alaska 
        Natives;
          (2) authorize the development of supplemental 
        educational programs to benefit Alaska Natives;
          (3) supplement programs and authorities in the area 
        of education to further the objectives 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. 7304. PROGRAM AUTHORIZED.

  (a) General Authority.--
          (1) Grants and contracts.--The Secretary is 
        authorized to make grants to, or enter into contracts 
        with, Alaska Native organizations, educational entities 
        with experience in developing or operating Alaska 
        Native programs or programs of instruction conducted in 
        Alaska Native languages, and consortia of such 
        organizations and entities to carry out programs that 
        meet the purposes of this part.
          (2) Permissible activities.--Activities provided 
        through programs carried out under this part may 
        include--
                  (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) recruitment and preparation of 
                        teachers who are Alaska Native, reside 
                        in communities with high concentrations 
                        of Alaska Native students, or are 
                        likely to succeed as teachers in 
                        isolated, rural communities and engage 
                        in cross-cultural instruction in 
                        Alaska;
                  (D) the development and operation of home 
                instruction programs for Alaska Native 
                preschool children, 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 secondary 
                        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 programs;
                  (G) research and data collection activities 
                to determine the educational status and needs 
                of Alaska Native children and adults;
                  (H) other research and evaluation activities 
                related to programs carried out under this 
                part; and
                  (I) other activities, consistent with the 
                purposes of this part, to meet the educational 
                needs of Alaska Native children and adults.
          (3) Home instruction programs.--Home instruction 
        programs for Alaska Native preschool children carried 
        out under paragraph (2)(D) may include--
                  (A) programs for parents and their infants, 
                from the prenatal period of the infant through 
                age 3;
                  (B) preschool programs; and
                  (C) training, education, and support for 
                parents in such areas as reading readiness, 
                observation, story telling, and critical 
                thinking.
  (b) Administrative Costs.--Not more than 5 percent of funds 
provided to a grant recipient under this section for any fiscal 
year may be used for administrative purposes.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section $17,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of 
the 6 succeeding fiscal years.

SEC. 7305. ADMINISTRATIVE PROVISIONS.

  (a) Application Required.--No grant may be made under this 
part, and no contract may be entered into under this part, 
unless the entity seeking the grant or contract submits an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may determine to 
be necessary to carry out the provisions of this part.
  (b) Applications.--A State educational agency or local 
educational agency may apply for a grant or contract under this 
part only as part of a consortium involving an Alaska Native 
organization. The consortium may include other eligible 
applicants.
    (c) Consultation Required.--Each applicant for a grant or 
contract under this part shall provide for ongoing advice from 
and consultation with representatives of the Alaska Native 
community.
    (d) Local Educational Agency Coordination.--Each applicant 
for a grant or contract under this part shall inform each local 
educational agency serving students who will participate in the 
program to be carried out under the grant or contract about the 
application.

SEC. 7306. DEFINITIONS.

    In this part:
          (1) Alaska native.--The term `Alaska Native' has the 
        meaning given the term `Native' in section 3(b) of the 
        Alaska Native Claims Settlement Act.
          (2) Alaska native organization.--The term `Alaska 
        Native organization' means a federally recognized 
        tribe, consortium of tribes, regional nonprofit Native 
        association, or another organization that--
                  (A) has or commits to acquire expertise in 
                the education of Alaska Natives; and
                  (B) has Alaska Natives in substantive and 
                policymaking positions within the organization.
    [Titles IX through XIV are repealed.]

                   TITLE IX--MISCELLANEOUS PROVISIONS

                     PART A--INDEPENDENT EVALUATION

SEC. 9101. IN GENERAL.

    The Secretary is authorized to award a grant to the Board 
on Testing and Assessment of the National Research Council of 
the National Academy of Sciences to enable the Board to 
conduct, in consultation with the Department (and others that 
the Board determines appropriate), an ongoing evaluation, not 
to exceed 4 years in duration, of a representative sample of 
State and local educational agencies regarding high stakes 
assessments used by the State and local educational agencies. 
The evaluation shall be based on a research design determined 
by the Board, in consultation with others, that includes 
existing data, and the development of new data as feasible and 
advisable. The evaluation shall address, at a minimum, the 3 
components described in section 9102.

SEC. 9102. COMPONENTS EVALUATED.

    The 3 components of the evaluation described in section 
9101 are as follows:
          (1) Students, teachers, parents, families, schools, 
        and school districts.--The intended and unintended 
        consequences of the assessments on individual students, 
        teachers, parents, families, schools, and school 
        districts, including--
                  (A) overall improvement or decline in what 
                students are learning based on independent 
                measures;
                  (B) changes in course offerings, teaching 
                practices, course content, and instructional 
                material;
                  (C) measures of teacher satisfaction with the 
                assessments;
                  (D) changes in rates of teacher and 
                administrator turnover;
                  (E) changes in dropout, grade retention, and 
                graduation rates for students;
                  (F) the relationship of student performance 
                on the assessments to school resources, teacher 
                and instructional quality, or such factors as 
                language barriers or construct-irrelevant 
                disabilities;
                  (G) changes in the frequency of referrals for 
                enrichment opportunities, remedial measures, 
                and other consequences;
                  (H) changes in student post-graduation 
                outcomes, including admission to, and signs of 
                success (such as reduced need for 
                remediationservices) at, colleges, community 
                colleges, or technical school training 
                programs;
                  (I) cost of preparing for, conducting, and 
                grading the assessments in terms of dollars 
                expended by the school district and time 
                expended by students and teachers;
                  (J) changes in funding levels and 
                distribution of instructional and staffing 
                resources for schools based on the results of 
                the assessments;
                  (K) purposes for which the assessments or 
                components of the assessments are used beyond 
                what is required under part A of title I, and 
                the consequences for students and teachers 
                because of those uses;
                  (L) differences in the areas studied under 
                this section between high poverty and high 
                concentration minority schools and school 
                districts, and schools and school districts 
                with lower rates of poverty and minority 
                students; and
                  (M) the level of involvement of parents and 
                families in the development and implementation 
                of the assessments and the extent to which the 
                parents and families are informed of assessment 
                results and consequences.
          (2) Students with disabilities.--The intended and 
        unintended consequences of the assessments for students 
        with disabilities, including--
                  (A) the overall improvement or decline in 
                academic achievement for students with 
                disabilities;
                  (B) the numbers and characteristics of 
                students with disabilities who are excluded 
                from the assessments, and the number and type 
                of modifications and accommodations extended;
                  (C) changes in the rate of referral of 
                students to special education;
                  (D) changes in attendance patterns and 
                dropout, retention, and graduation rates for 
                students with disabilities;
                  (E) changes in rates at which students with 
                disabilities are retained in grade level;
                  (F) changes in rates of transfers of students 
                with disabilities to other schools or 
                institutions; and
                  (G) the level of involvement of parents and 
                families of students with disabilities in the 
                development and implementation of the 
                assessments and the extent to which the parents 
                and families are informed of assessment results 
                and consequences.
          (3) Low socio-economic students, limited english 
        proficient students, and minority students.--The 
        intended and unintended consequences of the assessments 
        for low socio-economic status students, limited English 
        proficient students, and racial and ethnic minority 
        students, independently and as compared to middle or 
        high socio-economic status students, nonlimited English 
        proficient students, and white students, including--
                  (A) the overall improvement or decline in 
                academic achievement for such students;
                  (B) the numbers and characteristics of such 
                students excused from taking the assessments, 
                and the number and type of modifications and 
                accommodations extended to such students;
                  (C) changes in the rate of referral of such 
                students to special education;
                  (D) changes in attendance patterns and 
                dropout and graduation rates for such students;
                  (E) changes in rates at which such students 
                are retained in grade level;
                  (F) changes in rates of transfer of such 
                students to other schools or institutions; and
                  (G) the level of involvement of parents and 
                families of low socio-economic students, 
                limited English proficient students, and racial 
                and ethnic minority students in the development 
                and implementation of the assessments and the 
                extent to which the parents and families are 
                informed of assessment results and 
                consequences.

SEC. 9103. REPORTING.

    The Secretary shall make public annually the results of the 
evaluation carried out under this part and shall report the 
findings of the evaluation to Congress and to the States not 
later than 2 months after the completion of the evaluation.

SEC. 9104. DEFINITIONS.

    In this part:
          (1) High stakes assessment.--The term ``high stakes 
        assessment'' means a standardized test that is one of 
        the mandated determining factors in making decisions 
        concerning a student's promotion, graduation, or 
        tracking.
          (2) Standardized test.--The term ``standardized 
        test'' means a test that is administered and scored 
        under conditions uniform to all students so that the 
        test scores are comparable across individuals.

SEC. 9105. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this 
part $4,000,000 for fiscal year 2002. Such funds shall remain 
available until expended.

Stewart B. McKinney Homeless Assistance Act

           *       *       *       *       *       *       *

SEC. 701. [42 U.S.C. 11421] STATE LITERACY INITIATIVES.

    (a) General Authority.--

           *       *       *       *       *       *       *

SEC. 721. [42 U.S.C. 11431] STATEMENT OF POLICY.

    It is the policy of the Congress that--
          (1) * * *

           *       *       *       *       *       *       *

          (3) homelessness alone [should not be] is not 
        sufficient reason to separate students from the 
        mainstream school environment; and

           *       *       *       *       *       *       *

SEC. 722. [42 U.S.C. 11432] GRANTS FOR STATE AND LOCAL ACTIVITIES FOR 
                    THE EDUCATION OF HOMELESS CHILDREN AND YOUTH.

    (a) General Authority.--* * *

           *       *       *       *       *       *       *

    (c) Allocation and Reservations.--
          (1) In general.--Subject to paragraph (2) and 
        [section 724(c)] 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 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, and 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.

           *       *       *       *       *       *       *

          (3) Definition.--As used in this subsection, the term 
        ``State'' shall not include the Virgin Islands, Guam, 
        American Samoa, or the Commonwealth of the Northern 
        Mariana Islands[, or Palau].

           *       *       *       *       *       *       *

    (e) State and Local Grants.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

          (3) Prohibition on segregating homeless students.--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 on such child or youth's status as 
        homeless, except as provided in section 
        723(a)(2)(B)(ii).
    [(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.]
    (f) Functions of the Office of Coordinator.--The 
Coordinator of Education of Homeless Children and Youth 
established in each State shall--
          (1) gather 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 
        schools 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;
          (2) develop and carry out the State plan described in 
        subsection (g);
          (3) collect and transmit to the Secretary, at such 
        time and in such manner as the Secretary may require, 
        such information as the Secretary deems necessary to 
        assess the educational needs of homeless children and 
        youth within the State;
          (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 and 
        youth who are preschool age, 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) 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) 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 
        established under this subtitle, to ensure that local 
        educational agencies comply with the requirements of 
        section 722(e)(3).
    (g) State Plan.--
          (1) In general.-- * * *

           *       *       *       *       *       *       *

                  (E) address problems set forth in [the 
                report] the information provided to the 
                Secretary under subsection [(f)(4)];

           *       *       *       *       *       *       *

                  [(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.]
                  (H) contain assurances that--
                          (i) the State educational agency and 
                        local educational agencies in the State 
                        will adopt policies and practices to 
                        ensure that homeless children and youth 
                        are not segregated on the basis of 
                        their status as homeless or 
                        stigmatized; and
                          (ii) local educational agencies 
                        serving school districts in which 
                        homeless children and youth reside or 
                        attend school will--
                                  (I) post public notice of the 
                                educational rights of such 
                                children and youth where such 
                                children and youth receive 
                                services under this Act (such 
                                as family shelters and soup 
                                kitchens); and
                                  (II) designate an appropriate 
                                staff person, who may also be a 
                                coordinator for other Federal 
                                programs, as a liaison for 
                                homeless children and youth.

           *       *       *       *       *       *       *

          (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)]  paragraphs (3) through (8).
          [(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 non-homeless 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.]
          (3) Local educational agency requirements.--
                  (A) In general.--Each local educational 
                agency serving a homeless child or youth 
                assisted under this subtitle shall, according 
                to the child's or youth's best interest--
                          (i) continue the child's or youth's 
                        education in the school of origin--
                                  (I) for the duration of their 
                                homelessness;
                                  (II) if the child becomes 
                                permanently housed, for the 
                                remainder of the academic year; 
                                or
                                  (III) 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) 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, or in 
                        the case of an unaccompanied youth, 
                        doing so is contrary to the youth's 
                        wish; and
                          (ii) provide a written explanation to 
                        the homeless child's or youth's parent 
                        or guardian when 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.
                  (C) Enrollment.--
                          (i) Documentation.--The school 
                        selected in accordance with this 
                        paragraph shall immediately enroll the 
                        homeless child or youth even if the 
                        child or youth is unable to produce 
                        records normally required for 
                        enrollment, such as previous academic 
                        records, medical records, proof of 
                        residency, or other documentation.
                          (ii) Special rule.--The enrolling 
                        school immediately shall contact the 
                        school last attended by the child or 
                        youth to obtain relevant academic and 
                        other records. If the child or youth 
                        needs to obtain immunizations, the 
                        enrolling school shall promptly refer 
                        the child or youth to the appropriate 
                        authorities for such immunizations.
                          (iii) Disputes.--If a dispute arises 
                        over school selection or enrollment in 
                        a school, the child or youth shall be 
                        admitted immediately to the school in 
                        which the parent or guardian (or in the 
                        case of an unaccompanied youth, the 
                        youth) seeks enrollment pending 
                        resolution of the dispute.
                  (D) Definition of school of origin.--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.
                  (E) 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 by the parents.

           *       *       *       *       *       *       *

          [(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.]
          (6) Coordination.--
                  (A) In general.--Each local educational 
                agency serving homeless children and youth that 
                receives assistance under this subtitle shall 
                coordinate the provision of services under this 
                subtitle with local 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.).
                  (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 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 shelters 
                        and other challenges associated with 
                        homeless children and youth.
          [(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.]
          (7) Liaison.--
                  (A) In general.-- Each local liaison for 
                homeless children and youth designated pursuant 
                to paragraph (1)(H)(ii)(II) shall ensure that--
                          (i) homeless children and youth 
                        enroll, and have a full and equal 
                        opportunity to succeed, in the schools 
                        of the local educational agency;
                          (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;
                          (iii) 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; and
                          (iv) public notice of the educational 
                        rights of homeless children and youth 
                        is posted where such children and youth 
                        receive services under this Act (such 
                        as family shelters and soup kitchens).
                  (B) Information.--State coordinators in 
                States receiving assistance under this subtitle 
                and local educational agencies receiving 
                assistance under this subtitle shall inform 
                school personnel, service providers, and 
                advocates working with homeless families of the 
                duties of the liaisons for homeless children 
                and youth.
                  (C) Local and state coordination.--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.
                  (D) Dispute resolution.--Unless another 
                individual is designated by State law, the 
                local liaison for homeless children and youth 
                shall provide resource information and assist 
                in resolving a dispute under this subtitle if 
                such a dispute arises.

           *       *       *       *       *       *       *

          [(9) Coordination.--Where applicable, each State and 
        local educational agency that receives assistance under 
        this subtitle shall coordinate with State and local 
        housing agencies respon-sible for developing the 
        comprehensive housing affordability strategy described 
        in section 105 of the Cranston-Gonzalez Na-tional 
        Affordable Housing Act to minimize educational disrup-
        tion for children who become homeless.]

SEC. 723. [42 U.S.C. 11433] LOCAL EDUCATIONAL AGENCY GRANTS FOR THE 
                    EDUCATION OF HOMELESS CHILDREN AND YOUTH.

    (a) General Authority.--
          (1) In general.-- * * *

           *       *       *       *       *       *       *

          [(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.]
          (2) Services.--
                  (A) In general.--Services provided 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 individuals with 
                        nonhomeless individuals; and
                          (iii) shall be designed to expand or 
                        improve services provided as part of a 
                        school's regular academic program, but 
                        not replace that 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 clause (ii); 
                        and
                          (ii) 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, supplementary services 
                                to meet the unique needs of 
                                homeless children and youth.
    (b) Application.-- * * *

           *       *       *       *       *       *       *

          (1) an assessment of the educational and related 
        needs of homeless children and youth in the school 
        district (which may be undertaken as a part of needs 
        assessments for other disadvantaged groups);
          [(1)](2) 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)](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;
          [(3)](4) an assurance that the applicant complies 
        with, or will use requested funds to come into 
        compliance with, paragraphs (3) through [(9)] (8) of 
        section 722(g); and
          [(4)](5) 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.]
          (1) In general.--The State educational agency, in 
        accordance with the requirements of this subtitle and 
        from amounts made available to the State educational 
        agency under section 726, shall award grants, on a 
        competitive basis, to local educational agencies that 
        submit applications under subsection (b). Such grants 
        shall be awarded on the basis of the need of such 
        agencies for assistance under this subtitle and the 
        quality of the applications submitted.

           *       *       *       *       *       *       *

          (3) Quality.--In determining the quality of 
        applications under paragraph (1), the State educational 
        agency shall consider--
                  (A) the local educational agency's needs 
                assessment under subsection (b)(1) and the 
                likelihood that the program to be assisted will 
                meet the needs;
                  (B) the types, intensity, and coordination of 
                services to be assisted 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 local educational 
                agency's evaluation plan for the program;
                  (F) the extent to which services provided 
                under this subtitle will be coordinated with 
                other available services;
                  (G) the extent to which the local educational 
                agency provides case management or related 
                services to homeless children and youth who are 
                unaccompanied by a parent or guardian; and
                  (H) such other measures as the State 
                educational agency determines indicative of a 
                high-quality program.
          [(3)](4) Duration of grants.--Grants awarded under 
        this section shall be for terms not to exceed three 
        years.

           *       *       *       *       *       *       *

SEC. 724. [42 U.S.C. 11434] SECRETARIAL RESPONSIBILITIES.

    (a) Review of Plans.--In reviewing the State plans 
submitted by [the State educational] 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.

           *       *       *       *       *       *       *

    (c) Guidelines.--The Secretary shall develop, issue, and 
publish in the Federal Register, not later than 60 days after 
the date of enactment of the Better Education for Students and 
Teachers Act, school enrollment guidelines for States with 
respect to homeless children and youth. The guidelines shall 
describe--
          (1) successful ways in which a State may assist local 
        educational agencies to enroll immediately homeless 
        children and youth in school; and
          (2) how a State can review the State's requirements 
        regarding immunization and medical or school records 
        and make revisions to the requirements as are 
        appropriate and necessary in order to enroll homeless 
        children and youth in school more quickly.
    [(c)](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 apropriated 
under section 726 to conduct such activities.
    [(d)](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.
    [(e)](f) Determination by Secretary.--The Secretary, based 
on the information received from the States and information 
gathered by the Secretary under [subsection (d)] 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).
    [(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.]
    (g) Information.--
          (1) In general.--From funds appropriated under 
        section 726, the Secretary, directly or through grants, 
        contracts, or cooperative agreements, shall 
        periodically collect and disseminate data and 
        information regarding--
                  (A) the number and location of homeless 
                children and youth;
                  (B) the education and related services 
                homeless children and youth receive;
                  (C) the extent to which the needs of homeless 
                children and youth are met; and
                  (D) such other data and information as the 
                Secretary determines 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 
enactment of the Better Education for Students and Teachers 
Act, the Secretary shall prepare and submit to the President 
and the appropriate committees of the House of Representatives 
and the Senate a report on the status of the education of 
homeless children and youth, which shall include information 
regarding--
          (1) the education of homeless children and youth; and
          (2) the actions of the Department of Education and 
        the effectiveness of the programs supported under this 
        subtitle.

SEC. 725. [42 U.S.C. 11434A] DEFINITIONS.

    For the purpose of this subtitle, unless otherwise stated--
          (1) the terms ``local educational agency'' and 
        ``State educational agency'' have the meanings given 
        the terms in section 3 of the Elementary and Secondary 
        Education Act of 1965;
          [(1)](2) the term ``Secretary'' means the Secretary 
        of Education; and
          [(2)](3) the term ``State'' means each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.

[SEC. 726. [42 U.S.C. 11435] 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.]

SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

    For the purpose of carrying out this subtitle, there are 
authorized to be appropriated $70,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding 
fiscal years.

           *       *       *       *       *       *       *

                 National Child Protection Act of 1993

           *       *       *       *       *       *       *

SEC. 5119C. DEFINITIONS.

    For the purposes of this subchapter--
          (1) * * *

           *       *       *       *       *       *       *

          (9) the term ``provider'' means--
                  (A) a person who--
                          (i) is employed by or volunteers with 
                        a qualified entity (including an 
                        individual who is employed by a school 
                        in any capacity, including as a child 
                        care provider, a teacher, or another 
                        member of school personnel);

           *       *       *       *       *       *       *

                  (B) a person who--
                          (i) seeks to be employed by or 
                        volunteer with a qualified entity 
                        (including an individual who seeks to 
                        be employed by a school in any 
                        capacity, including as a child care 
                        provider, a teacher, or another member 
                        of school personnel);

           *       *       *       *       *       *       *

                      Higher Education Act of 1965

           *       *       *       *       *       *       *

SEC. 317. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

    (a) Program Authorized.--* * *

           *       *       *       *       *       *       *

    (b) Definitions.--For the purpose of this section--
          (1) the term ``Alaska Native'' has the meaning given 
        the term in [section 9308] section 7306 of the 
        Elementary and Secondary Education Act of 1965;

           *       *       *       *       *       *       *

          (3) the term ``Native Hawaiian'' has the meaning 
        given the term in [section 9212] section 7207 of the 
        Elementary and Secondary Education Act of 1965; and

           *       *       *       *       *       *       *

    [The Goals 2000: Educate America Act is repealed.]

           *       *       *       *       *       *       *

                       Assets for Independence Act

           *       *       *       *       *       *       *

SEC. 604. USE OF GRANTS.

           *       *       *       *       *       *       *

                     Historical and Statutory Notes

           *       *       *       *       *       *       *

SEC. 404. DEFINITIONS.

          [(11) Tribal government.--The term ``tribal 
        government'' means a tribal organization, as defined in 
        section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b) or a Native 
        Hawaiian organization, as defined in [section 9212 of 
        the Native Hawaiian Education Act (20 U.S.C. 7912)] 
        section 7207 of the Native Hawaiian Education Act.

           *       *       *       *       *       *       *

                    Workforce Investment Act of 1998

           *       *       *       *       *       *       *

SEC. 2911. NATIVE AMERICAN PROGRAMS.

    [(a) Purpose.--
          [(1) In general * * *

           *       *       *       *       *       *       *

    [(b) Definitions.--As used in this section:
          [(1) Alaska native * * *

           *       *       *       *       *       *       *

          [(3) Native hawaiian and native hawaiian 
        organization.--The terms ``Native Hawaiian'' and 
        ``Native Hawaiian organization'' have the meanings 
        given such terms in [paragraphs (1) and (3), 
        respectively, of section 9212 of the Native Hawaiian 
        Education Act (20 U.S.C. 7912)] section 7207 of the 
        Native Hawaiian Education Act.

           *       *       *       *       *       *       *

                    Museum and Library Services Act

           *       *       *       *       *       *       *

SEC. 9161. SERVICE TO NATIVE AMERICANS.

    From amounts under section 9131(a)(1)(A) of this title for 
any fiscal year the Director shall award grants to Indian 
tribes and to organizations that primarily serve and represent 
Native Hawaiians (as the term is defined in [section 9212 of 
the Native Hawaiian Education Act (20 U.S.C. 7912)] section 
7207 of the Native Hawaiian Education Act to enable such tribes 
and organizations to carry out the activities described in 
section 9141 of this title.

           *       *       *       *       *       *       *

Carl D. Perkins Vocational and Technical Education Act of 1998

           *       *       *       *       *       *       *

SEC 2326. NATIVE AMERICAN PROGRAM.

    (a) Definitions.--In this section:
          (1) Alaska native * * *

           *       *       *       *       *       *       *

          (5) Native hawaiian organization.--The term ``Native 
        Hawaiian organization'' has the meaning given the term 
        in [section 9212 of the Native Hawaiian Education Act 
        (20 U.S.C. 7912)] section 7207 of the Native Hawaiian 
        Education Act.

           *       *       *       *       *       *       *

SEC. 116. NATIVE AMERICAN PROGRAM.

    (a) Definitions.--In this section:
          (1) * * *

           *       *       *       *       *       *       *

          (5) Native hawaiian organization.--The term ``Native 
        Hawaiian organization'' has the meaning given the term 
        in [section 9212 of the Native Hawaiian Education Act 
        (20 U.S.C. 7912] section 7207 of the Native Hawaiian 
        Education Act.

           *       *       *       *       *       *       *

                     Native American Languages Act

           *       *       *       *       *       *       *

SEC. 2902. DEFINITIONS.

    For purposes of this chapter--
          (1) The term ``Native American'' means an Indian, 
        Native Hawaiian, or Native American Pacific Islander.
          (2) The term ``Indian'' has the meaning given to such 
        term under [7881(4)] section 7161(3) of the Elementary 
        and Secondary Education Act of 1965 of Title 20.
          (3) The term ``Native Hawaiian'' has the meaning 
        given to such term by [section 7912(1)] section 7207 of 
        the Elementary and Secondary Education Act of 1965 of 
        Title 20.

           *       *       *       *       *       *       *

                       Johnson--O' Malley Act

           *       *       *       *       *       *       *

SEC. 456 LOCAL COMMITTEE OF INDIAN PARENTS IN SCHOOL DISTRICTS HAVING 
                    SCHOOL BOARDS COMPOSED OF NON-INDIAN MAJORITY.

    (a) Election; Functions.--Whenever a school district 
affected by a contract or contracts for the education of 
Indians pursuant to sections 452 to 457 of this title has a 
local school board not composed of a majority of Indians, the 
parents of the Indian children enrolled in the school or 
schools affected by such contract or contracts shall elect a 
local committee from among their number. Such committee shall 
fully participate in the development of, and shall have the 
authority to approve or disapprove programs to be conducted 
under such contract or contracts, and shall carry out such 
other duties, and be so structured, as the Secretary of the 
Interior shall by regulation provide: Provided, however, That, 
whenever a local Indian committee or committees established 
pursuant to [section 7814(c)(4)] section 7114(c)(4) of Title 20 
or an Indian advisory school board or boards established 
pursuant to sections 452 to 457 of this title prior to January 
4, 1975, exists in such school district, such committee or 
board may, in the discretion of the affected tribal governing 
body or bodies, be utilized for the purposes of this section

           *       *       *       *       *       *       *

                                  
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