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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6 Referred in Senate (RFS)]

103d CONGRESS
  2d Session
                                H. R. 6

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

               April 15 (legislative day, April 11), 1994

                                Received

               April 19 (legislative day, April 11), 1994

 Read twice and referred to the Committee on Labor and Human Resources

_______________________________________________________________________

                                 AN ACT

 
 To extend for five years the authorizations of appropriations for the 
programs under the Elementary and Secondary Education Act of 1965, and 
                      for certain other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Improving 
America's Schools Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title.
Sec. 2. Effective dates; transition.
 TITLE I--AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
                                  1965

Sec. 101. Amendments to the Elementary and Secondary Education Act of 
                            1965.
        ``Sec. 1. Short title.
        ``TITLE I--IMPROVED EDUCATION FOR DISADVANTAGED CHILDREN

        ``Sec. 1001. Declaration of policy and statement of purpose.
        ``Sec. 1002. Authorization of appropriations.
    ``Part A--Ba``subpart 1--basic program requirementsnal Agencies
        ``Sec. 1111. State plans.
        ``Sec. 1112. Local educational agency plans.
        ``Sec. 1113. Eligible school attendance areas.
        ``Sec. 1114. Schoolwide programs.
        ``Sec. 1115. Targeted assistance schools.
        ``Sec. 1115A. School choice.
        ``Sec. 1116. Assessment and school and local educational agency 
                            improvement.
        ``Sec. 1117. State assistance for school support and 
                            improvement.
        ``Sec. 1118. Parental involvement.
        ``Sec. 1119. Professional development.
        ``Sec. 1120. Participation of children enrolled in private 
                            schools.
        ``Sec. 1121. Fis``subpart 2--allocations
        ``Sec. 1122. Grants for the outlying areas and the Secretary of 
                            the Interior.
        ``Sec. 1123. Allocations to States.
        ``Sec. 1124. Basic grants to local educational agencies.
        ``Sec. 1124A. Concentration grants to local educational 
                            agencies.
        ``Sec. 1125. Targeted grants to local educational agencies.
        ``Sec. 1126. Special allocation procedures.
        ``Sec. 1127. Carryover and waiver.
             ``Part B--Even Start Family Literacy Programs

        ``Sec. 1201. Statement of purpose.
        ``Sec. 1202. Program authorized.
        ``Sec. 1203. State programs.
        ``Sec. 1204. Uses of funds.
        ``Sec. 1205. Program elements.
        ``Sec. 1206. Eligible participants.
        ``Sec. 1207. Applications.
        ``Sec. 1208. Award of subgrants.
        ``Sec. 1209. Evaluation.
               ``Part C--Education of Migratory Children

        ``Sec. 1301. Program purpose.
        ``Sec. 1302. Program authorized.
        ``Sec. 1303. State allocations.
        ``Sec. 1304. State applications; services.
        ``Sec. 1305. Secretarial approval; peer review.
        ``Sec. 1306. Comprehensive needs assessment and service-
                            delivery plan; authorized activities.
        ``Sec. 1307. Bypass.
        ``Sec. 1308. Coordination of migrant education activities.
        ``Sec. 1309. Distance learning.
        ``Sec. 1310. Definitions.
``Part D--Prevention and Intervention Services for Delinquent Youth and 
                     Youth at Risk of Dropping Out

        ``Sec. 1401. Findings; purpose; program authorized.
        ``Sec. 1402``subpart 1--state agency programs part.
        ``Sec. 1403. Amount of allocation to State.
        ``Sec. 1404. State plan.
        ``Sec. 1405. Use of funds.
        ``Sec. 1406. Institution-wide projects.
        ``Sec. 1407. Three-year projects.
        ``Sec. 1408``subpart 2--local agency programs
        ``Sec. 1410. Programs operated by local educational agencies.
        ``Sec. 1411. Program evaluations.
        ``Sec. 1412. Definitions.
 ``Part E--Federal Evaluations, Demonstrations, and Transition Projects

        ``Sec. 1501. Evaluations.
        ``Sec. 1502. Demonstrations of innovative practices.
        ``Sec. 1503. Innovative elementary school transition projects.
                      ``Part F--General Provisions

        ``Sec. 1601. Federal regulations.
        ``Sec. 1602. Coordination of Federal, State, and local 
                            administration.
        ``Sec. 1603. State administration.
              ``TITLE II--IMPROVING TEACHING AND LEARNING

    ``Part A--Dwight D. Eisenhower Professional Development Program

        ``Sec. 2101. Findings.
        ``Sec. 2102. Purposes.
        ``Sec. 2103. Authorization of appropriations; allocation 
                    ``subpart 1--federal activities
        ``Sec. 2111. Program authorized.
        ``Sec. 2``subpart 2--state and local activities
        ``Sec. 2121. Program authorized.
        ``Sec. 2122. Allocation of funds.
        ``Sec. 2123. Within-State allocations.
        ``Sec. 2124. State applications.
        ``Sec. 2125. State-level activities.
        ``Sec. 2126. Local plan and application for improving teaching 
                            and learning.
        ``Sec. 2127. Local cost sharing.
        ``Sec. 2128. Local allocation of funds and allowable 
                            activities.
        ``Sec. 2129.``subpart 3--general provisions
        ``Sec. 2131. Reporting and accountability.
        ``Sec. 2132. Definitions.
    ``subpart 1--assistance to state and local educational agencies
        ``Sec. 2201. Short title.
        ``Sec. 2202. Findings.
        ``Sec. 2203. Statement of purpose.
        ``Sec. 2204. Definitions.
        ``Sec. 2205. In-State apportionment.
        ``Sec. 2206. Elementary and secondary education programs.
        ``Sec. 2207. Higher education programs.
        ``Sec. 2208. Library and literacy programs.
        ``Sec. 2209. State educational technology plan.
        ``Sec. 2210. Local educational technology plan.
        ``Sec. 2211. Federal administration.
        ``Sec. 2212. Allocation of funds.
 ``subpart 2--research, development, and demonstration of educational 
                               technology
        ``Sec. 2214. Findings and purposes.
        ``Sec. 2215. Office of Educational Technology.
        ``Sec. 2216. National long-range plan.
        ``Sec. 2217. Federal leadership.
        ``Sec. 2218``subpart 3--star schools program.
        ``Sec. 2219. Findings.
        ``Sec. 2220. Statement of purpose.
        ``Sec. 2221. Program authorized.
        ``Sec. 2222. Eligible entities.
        ``Sec. 2223. Applications.
        ``Sec. 2224. Leadership and evaluation activities.
      ``subpart 4--development of educational technology products
        ``Sec. 2226. Educational technology product development.
                    ``Part C--Library Media Program

        ``Sec. 2231. Establishment of program.
        ``Sec. 2232. Allocation to States.
        ``Sec. 2233. State plans.
        ``Sec. 2234. Distribution of allocation to local educational 
                            agencies.
        ``Sec. 2235. Authorization of appropriations.
           ``Part D--Support and Assistance for ESEA Programs

        ``Sec. 2341. Findings.
        ``Sec. 2342. Purpose.
        ``Sec. 2343. Programs authorized.
        ``Sec. 2344. Requirements of comprehensive assistance centers.
        ``Sec. 2345. Duties of comprehensive assistance centers.
        ``Sec. 2346. Service and application requirements..
        ``Sec. 2347. State-based activities.
        ``Sec. 2348. Program priorities.
        ``Sec. 2349. Technology-based technical assistance.
        ``Sec. 2350. Administration.
        ``Sec. 2351. Authorization of appropriations.
           ``Part E--Innovative Education Program Strategies

        ``Sec. 2401. Findings and statement of purpose.
        ``Sec. 2402. Authorization of appropriations; duration of 
                            assistance.
        ``Sec. 24``subpart 1--state and local programs
        ``Sec. 2411. Allotment to States.
        ``Sec. 2412. A``subpart 2--state programsnal agencies.
        ``Sec. 2421. State uses of funds.
        ``Se``subpart 3--local targeted assistance programs
        ``Sec. 2431. Targeted use of funds.
        ``Sec. 2432. Administrative authority.
        ``Sec``subpart 4--general administrative provisions
        ``Sec. 2441. Maintenance of effort; Federal funds 
                            supplementary.
        ``Sec. 2442. Participation of children enrolled in private 
                            schools.
        ``Sec. 2443. Evaluations and reporting.
        ``Sec. 2444. Federal administration.
        ``Sec. 2445. Application of General Education Provisions Act.
           ``Part F--21st Century Community Learning Centers

        ``Sec. 2451. Findings.
        ``Sec. 2452. Program authorization and distribution.
        ``Sec. 2453. Uses of funds.
        ``Sec. 2454. Award of grants.
        ``Sec. 2455. Definitions.
        ``Sec. 2456. Authorization of appropriations.
           ``TITLE III--EXPANDING OPPORTUNITIES FOR LEARNING

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

        ``Sec. 3201. Fund for the improvement of education.
                 ``Part B--Gifted and Talented Children

        ``Sec. 3301. Short title.
        ``Sec. 3302. Findings and purposes.
        ``Sec. 3303. Definitions.
        ``Sec. 3304. Authorized programs.
        ``Sec. 3305. Program priorities.
        ``Sec. 3306. General provisions.
        ``Sec. 3307. Administration.
        ``Sec. 3308. Authorization of appropriations.
                    ``Part C--Public Charter Schools

        ``Sec. 3401. Purpose.
        ``Sec. 3402. Program authorized.
        ``Sec. 3403. Applications.
        ``Sec. 3404. Selection of grantees; waivers.
        ``Sec. 3405. Uses of funds.
        ``Sec. 3406. National activities.
        ``Sec. 3407. Definitions.
        ``Sec. 3408. Authorization of appropriations.
                ``subpart 1--support for arts education
        ``Sec. 3501. S``subpart 2--community arts
        ``Sec. 3502. Short title.
            ``Part E--Inexpensive Book Distribution Program

        ``Sec. 3601. Inexpensive book distribution program for reading 
                            motivation.
                       ``Part F--Civic Education

        ``Sec. 3701. Instruction on the history and principles of 
                            democracy in the United States.
        ``Sec. 3702. Instruction in civics, government, and the law.
        ``Sec. 3703. Report; authorization of appropriations.
                  ``Part G--Native Hawaiian Education

        ``Sec. 3801. Short title.
        ``Sec. 3802. Findings.
        ``Sec. 3803. Purpose.
        ``Sec. 3804. Native Hawaiian Education Council.
        ``Sec. 3805. Native Hawaiian Language Immersion Project.
        ``Sec. 3806. Native Hawaiian family-based education centers.
        ``Sec. 3807. Native Hawaiian Higher Education Demonstration 
                            Program.
        ``Sec. 3808. Native Hawaiian Gifted and Talented Demonstration 
                            Program.
        ``Sec. 3809. Native Hawaiian Special Education Program.
        ``Sec. 3810. Administrative provisions.
        ``Sec. 3811. Definitions.
             ``Part H--Allen J. Ellender Fellowship Program

     ``subpart 1--program for middle and secondary school students
        ``Sec. 3911. Establishment.
     ``subpart 2--program for middle and secondary school teachers
        ``Sec. 3915. Establishment.
   ``subpart 3--programs for recent immigrants, students of migrant 
                      parents and older americans
        ``Sec. 3921. Establishment.
        ``Sec. 3922.``subpart 4--general provisions
        ``Sec. 3925. Administrative provisions.
        ``Sec. 3926. Authorization of appropriations.
          ``Part I--Territorial Education Improvement Program

        ``Sec. 3931. Findings and purposes.
        ``Sec. 3932. Grant authorization.
        ``Sec. 3933. Restrictions.
        ``Sec. 3934. Authorization.
         ``TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

        ``Sec. 4001. Short title.
        ``Sec. 4002. Findings.
        ``Sec. 4003. Purpose.
        ``Sec. 4004. Funding.
    ``Part A--State Grants for Drug and Violence Prevention Programs

        ``Sec. 4101. Reservations and allotments.
        ``Sec. 4102. State applications.
        ``Sec. 4103. State and local educational agency programs.
        ``Sec. 4103A. Governor's programs.
        ``Sec. 4104. Local applications.
        ``Sec. 4105. Local drug and violence prevention programs.
        ``Sec. 4106. Evaluation and reporting.
                      ``Part B--National Programs

        ``Sec. 4201. Federal activities.
        ``Sec. 4202. Programs for Native Hawaiians.
        ``Sec. 4203. Hate crime prevention.
                      ``Part C--General Provisions

        ``Sec. 4301. Definitions.
        ``Sec. 4302. Materials.
        ``Sec. 4303. Prohibited uses of funds.
        ``Sec. 4304. Certification of drug and alcohol abuse prevention 
                            programs.
                      ``TITLE V--PROMOTING EQUITY

                  ``Part A--Magnet Schools Assistance

        ``Sec. 5101. Findings.
        ``Sec. 5102. Statement of purpose.
        ``Sec. 5103. Program authorized.
        ``Sec. 5104. Definition.
        ``Sec. 5105. Eligibility.
        ``Sec. 5106. Applications and requirements.
        ``Sec. 5107. Priority.
        ``Sec. 5108. Use of funds.
        ``Sec. 5109. Prohibitions.
        ``Sec. 5110. Limitation on payments.
        ``Sec. 5111. Authorization of appropriations; reservation.
                ``Part B--Women's Educational Equity Act

        ``Sec. 5201. Findings and statement of purpose.
        ``Sec. 5202. Programs authorized.
        ``Sec. 5203. Local implementation grants.
        ``Sec. 5204. Research and development grants.
        ``Sec. 5205. Authorization of appropriations.
                      ``TITLE VI--INDIAN EDUCATION

        ``Sec. 6001. Findings.
        ``Sec. 6002. Purpose.
         ``Part A--Formula Grants to Local Educational Agencies

        ``Sec. 6101. Purpose.
        ``Sec. 6102. Grants to local educational agencies.
        ``Sec. 6103. Amount of grants.
        ``Sec. 6104. Applications.
        ``Sec. 6105. Authorized services and activities.
        ``Sec. 6106. Student eligibility forms.
        ``Sec. 6107. Payments.
    ``Part B--Special Programs and Projects To Improve Educational 
                   Opportunities for Indian Children

        ``Sec. 6201. Improvement of educational opportunities for 
                            Indian children.
        ``Sec. 6202. Professional development.
        ``Sec. 6203. Fellowships for Indian students.
        ``Sec. 6204. Gifted and talented.
   ``Part C--Special Programs Relating to Adult Education for Indians

        ``Sec. 6301. Improvement of educational opportunities for adult 
                            Indians.
           ``Part D--National Activities and Grants to States

        ``Sec. 6401. National activities.
        ``Sec. 6402. State educational agency review.
                    ``Part E--Federal Administration

        ``Sec. 6501. Office of Indian education.
        ``Sec. 6502. National Advisory Council on Indian Education.
        ``Sec. 6503. Peer review.
        ``Sec. 6504. Preference for Indian applicants.
        ``Sec. 6505. Minimum grant criteria.
        ``Part F--Definitions; Authorizations of Appropriations

        ``Sec. 6601. Definitions.
        ``Sec. 6602. Authorizations of appropriations.
               ``TITLE VII--BILINGUAL EDUCATION PROGRAMS

        ``Sec. 7001. Short title.
        ``Sec. 7002. Findings, policy, and purpose.
        ``Sec. 7003. Authorization of appropriations.
        ``Sec. 7004. Definitions; regulations.
        ``Sec. 7005. Indian and Alaskan Native children in schools.
        ``Sec. 7006. Residents of the territories and freely associated 
                            nations.
    ``Part A--Bilingual Education Capacity and Demonstration Grants

        ``Sec. 7101. Purpose of grants.
        ``Sec. 7102. Program development and implementation grants.
        ``Sec. 7103. Program enhancement projects.
        ``Sec. 7104. Whole-school programs.
        ``Sec. 7105. System-wide improvement grants.
        ``Sec. 7106. Applications.
        ``Sec. 7107. Intensified instruction.
        ``Sec. 7108. Capacity building.
        ``Sec. 7109. Subgrants.
        ``Sec. 7110. Geographic distribution of funds.
        ``Sec. 7111. Programs in Puerto Rico.
        ``Sec. 7112. Evaluations.
                  ``Part B--Research and Dissemination

        ``Sec. 7201. Use of funds.
        ``Sec. 7202. Research.
        ``Sec. 7203. Academic excellence awards.
        ``Sec. 7204. State grant program.
        ``Sec. 7205. National Clearinghouse for Bilingual Education.
        ``Sec. 7206. Instructional materials development.
        ``Sec. 7207. Evaluation Assistance Centers and Multifunctional 
                            Resource Centers.
             ``Part C--Bilingual Education Teacher Training

        ``Sec. 7301. Purpose.
        ``Sec. 7302. Training for all teachers program.
        ``Sec. 7303. Bilingual education teachers and personnel grants.
        ``Sec. 7304. Bilingual education career ladder program.
        ``Sec. 7305. Graduate fellowships in bilingual education 
                            program.
        ``Sec. 7306. Applications.
        ``Sec. 7307. Program requirements.
        ``Sec. 7308. Stipends.
        ``Sec. 7309. Program evaluations under part C.
                        ``Part D--Administration

        ``Sec. 7401. Office of Bilingual Education and Minority 
                            Language Affairs.
        ``Sec. 7402. Release time.
        ``Sec. 7403. Education technology.
        ``Sec. 7404. Notification.
        ``Sec. 7405. Continued eligibility.
        ``Sec. 7406. Limitation of authority.
                          ``Part E--Transition

        ``Sec. 7501. Transition provisions.
            ``Part F--Emergency Immigrant Education Program

        ``Sec. 7601. Purpose.
        ``Sec. 7602. State administrative costs.
        ``Sec. 7603. Withholding.
        ``Sec. 7604. State allocations.
        ``Sec. 7605. State applications.
        ``Sec. 7606. Payments.
        ``Sec. 7607. Uses of funds.
        ``Sec. 7608. Reports.
        ``Sec. 7609. Authorization of appropriations.
                        ``TITLE VIII--IMPACT AID

        ``Sec. 8001. Findings.
        ``Sec. 8002. Purpose.
        ``Sec. 8003. Payments relating to Federal acquisition of real 
                            property.
        ``Sec. 8004. Payments for eligible federally-connected 
                            children.
        ``Sec. 8005. Policies and procedures relating to children 
                            residing on Indian lands.
        ``Sec. 8006. Application for payments under sections 8003 and 
                            8004.
        ``Sec. 8007. Payments for sudden and substantial increases in 
                            attendance of military dependents.
        ``Sec. 8008. Facilities.
        ``Sec. 8009. State consideration of payments in providing State 
                            aid.
        ``Sec. 8010. Federal administration.
        ``Sec. 8011. Administrative hearings and judicial review.
        ``Sec. 8012. Definitions.
        ``Sec. 8013. Authorization of appropriations.
                     ``TITLE IX--GENERAL PROVISIONS

                         ``Part A--Definitions

        ``Sec. 9101. Definitions.
        ``Sec. 9102. Applicability of this title.
        ``Sec. 9103. References in other Acts.
        ``Sec. 9104. Applicability to Bureau of Indian Affairs operated 
                            schools.
   ``Part B--Flexibility in the Use of Administrative and Other Funds

        ``Sec. 9201. Consolidation of State administrative funds for 
                            elementary and secondary education 
                            programs.
        ``Sec. 9202. Single local educational agency States.
        ``Sec. 9203. Consolidation of funds for local administration.
        ``Sec. 9204. Administrative funds study.
        ``Sec. 9205. Consolidated set-aside for Department of the 
                            Interior funds.
        ``Sec. 9206. Availability of unneeded program funds.
   ``Part C--Coordination of Programs; Consolidated State and Local 
                              Applications

        ``Sec. 9301. Purpose.
        ``Sec. 9302. Optional consolidated State application.
        ``Sec. 9303. General applicability of State educational agency 
                            assurances.
        ``Sec. 9304. Consolidated local applications.
        ``Sec. 9305. Other general assurances.
                           ``Part D--Waivers

        ``Sec. 9401. Waivers of statutory and regulatory requirements.
                      ``Part E--Uniform Provisions

        ``Sec. 9501. Maintenance of effort.
        ``Sec. 9502. Prohibition regarding State aid.
        ``Sec. 9503. Participation by private school children and 
                            teachers.
        ``Sec. 9504. Standards for by-pass.
        ``Sec. 9505. Complaint process for participation of private 
                            school children.
        ``Sec. 9506. By-pass determination process.
        ``Sec. 9507. Prohibition against funds for religious worship or 
                            instruction.
        ``Sec. 9508. Applicability to home schools.
        ``Sec. 9509. General provision regarding nonrecipient nonpublic 
                            schools.
        ``Sec. 9510. Compliance with Buy American Act.
        ``Sec. 9511. Sense of Congress; requirement regarding notice.
        ``Sec. 9512. Prohibition of contracts.
        ``Sec. 9513. Prohibition against funds for protected prayer.
        ``Sec. 9514. Sex education.
        ``Sec. 9515. Prohibition against funds for homosexual support.
        ``Sec. 9516. Nonsmoking policy.
                        ``Part F--Gun Possession

        ``Sec. 9601. Policy for gun possession.
        ``Sec. 9602. Ethical principles.
                      ``Part G--Custodial Services

        ``Sec. 9701. Compensation of custodians.
``Part H--Sense of the Congress To Increase the Total Share of Federal 
                         Spending on Education

                ``TITLE X--COORDINATED SERVICES PROJECTS

        ``Sec. 10001. Findings and purpose.
        ``Sec. 10002. Definitions.
        ``Sec. 10003. Project development and implementation.
        ``Sec. 10004. Uses of funds.
        ``Sec. 10005. Continuing authority.
        ``Sec. 10006. Federal agency coordination.
             ``TITLE XI--SCHOOL FACILITIES IMPROVEMENT ACT

        ``Sec. 11001. Findings.
        ``Sec. 11002. Purpose.
        ``Sec. 11003. Federal assistance in the form of loans.
        ``Sec. 11004. General provisions.
        ``Sec. 11005. Definitions.
        ``Sec. 11006. Authorization.
           ``TITLE XII--URBAN AND RURAL EDUCATION ASSISTANCE

             ``Part A--Urban Education Demonstration Grants

        ``Sec. 12000. Authorization of appropriations.
        ``Sec. 12001. Findings.
        ``Sec. 12002. Statement of purpose.
        ``Sec. 12003. Urban education demonstration grants.
        ``Sec. 12004. Research and evaluation grants.
        ``Sec. 12005. Use of funds.
        ``Sec. 12006. Augustus F. Hawkins National Commission on Urban 
                            Education.
        ``Sec. 12007. Evaluation.
             ``Part B--Rural Education Demonstration Grants

        ``Sec. 12101. Findings.
        ``Sec. 12102. Statement of purpose.
        ``Sec. 12103. Rural school grants.
        ``Sec. 12104. Higher education grants.
        ``Sec. 12105. National Commission on Rural Education.''.
      TITLE II--AMENDMENTS TO THE GENERAL EDUCATION PROVISIONS ACT

     Part A--Applicability of the General Education Provisions Act

Sec. 211. Title; applicability; definitions.
Sec. 212. Repeal and redesignation.
                  Part B--The Department of Education

Sec. 221. New heading for part A.
          ``Part A--Functions of the Department of Education''

Sec. 222. Office of non-public education.
Sec. 223. General authority of the Secretary.
Sec. 224. Coordination.
                 Part C--Appropriations and Evaluations

Sec. 230. Forward funding.
Sec. 231. Availability of appropriations.
Sec. 232. Contingent extension of programs.
Sec. 233. State reports.
Sec. 234. Biennial evaluation report.
Sec. 235. Technical amendment.
Sec. 236. Coordination.
              Part D--Administration of Education Programs

Sec. 241. Joint funding of programs.
Sec. 242. Collection and dissemination of information.
Sec. 243. Review of applications.
Sec. 244. Technical amendment.
Sec. 245. Use of funds withheld.
Sec. 246. Applications.
Sec. 247. Regulations.
Sec. 248. Records; reduction in retention requirements.
Sec. 249. Release of records.
Sec. 250. Protection of pupil rights.
Sec. 251. Enforcement.
Sec. 252. Technical amendments.
Sec. 253. Equity for students, teachers, and other program 
                            beneficiaries.
Sec. 254. Disclosure requirements.
                Part E--Related Amendments to Other Acts

Sec. 261. Department of Education Organization Act.
                  TITLE III--AMENDMENTS TO OTHER ACTS

 Part A--Amendments to the Individuals With Disabilities Education Act

Sec. 311. Allocations under section 611 of the IDEA.
Sec. 312. Treatment of chapter 1 State agencies.
Sec. 313. Infants and toddlers with disabilities.
           Part B--Education for Homeless Children and Youth

Sec. 320. Amendments to table of contents.
             ``Subtitle A--Adult Education for the Homeless

        ``Sec. 701. State literacy initiatives.
        ``Subtitle B--Education for Homeless Children and Youth

        ``Sec. 721. Statement of policy.
        ``Sec. 722. Grants for State and local activities for the 
                            education of homeless children and youth.
        ``Sec. 723. Local educational agency grants for the education 
                            of homeless children and youth.
        ``Sec. 724. Secretarial responsibilities.
        ``Sec. 725. Definitions.
        ``Sec. 726. Authorization of appropriations.''.
Sec. 321. Statement of policy.
Sec. 322. Education for homeless children and youth.
                      Part C--Impact Aid Statutes

Sec. 331. Amendments to Public Law 815.
        ``Sec. 2. Portion of appropriations available for payments.
        ``Sec. 3. Establishment of priorities.
        ``Sec. 5. Limitation on total payments to any local educational 
                            agency.''.
Sec. 332. Repeal of Public Law 874.
               Part D--Amendments to Adult Education Act

Sec. 335. Amendments to Adult Education Act.
          Part E--Amendments to Education Council Act of 1991

Sec. 341. Findings.
Sec. 342. National writing project.
     Part F--Amendments to Statutes Pertaining to Indian Education

Sec. 351. Bureau of Indian Affairs.
Sec. 352. Application with respect to Indian Self-Determination and 
                            Education Assistance Act.
Sec. 353. Payments.
Sec. 354. Endowment funds.
Sec. 355. Higher education amendments of 1992.
                TITLE IV--NATIONAL EDUCATION STATISTICS

Sec. 401. Short title.
Sec. 402. Findings; purpose; definitions.
Sec. 403. National Center for Education Statistics.
Sec. 404. Duties of the Center.
Sec. 405. Performance of duties.
Sec. 406. Reports.
Sec. 407. Advisory Council on Education Statistics.
Sec. 408. Confidentiality.
Sec. 409. Dissemination.
Sec. 410. Cooperative education statistics systems.
Sec. 411. National Assessment of Educational Progress.
Sec. 412. National Assessment Governing Board.
Sec. 413. Authorization of appropriations.
                         TITLE V--MISCELLANEOUS

Sec. 501. Evaluation of Federal efforts to assist in school reform.
Sec. 502. Study of the effectiveness and impact of Federal categorical 
                            aid programs.
Sec. 503. Budget compliance.

SEC. 2. EFFECTIVE DATES; TRANSITION.

    (a) Effective Dates.--(1)(A) Except as provided in subparagraph 
(B), the provisions of title I of this Act shall take effect July 1, 
1995, except that those provisions of title I that apply to programs 
under title VIII of the Elementary and Secondary Education Act of 1965, 
as amended by this Act, and to programs that are conducted on a 
competitive basis, shall be effective with respect to appropriations 
for use under such programs in fiscal year 1995 and in subsequent 
fiscal years.
    (B) Title VIII of the Elementary and Secondary Education Act of 
1965, as amended by title I of this Act, shall take effect on October 
1, 1994.
    (2) The provisions of title II of this Act shall be effective upon 
enactment, except that section 253 of such title shall be effective--
            (A) July 1, 1995, for noncompetitive programs in which 
        funds are allocated on the basis of a formula; and
            (B) for programs that are conducted on a competitive basis, 
        with respect to appropriations for use under such programs in 
        fiscal year 1995 and in subsequent fiscal years.
    (3)(A) Parts A and B of title III of this Act shall take effect 
July 1, 1995.
    (B) Part C of title III of this Act shall take effect on October 1, 
1994.
    (b) Transition.--Notwithstanding any other provision of law, a 
recipient of funds under the Elementary and Secondary Education Act of 
1965, as in effect prior to amendment by this Act, may use funds 
available to it under such predecessor authority to carry out necessary 
and reasonable planning and transition activities in order to ensure a 
smooth implementation of programs authorized by this Act.

 TITLE I--AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
                                  1965

SEC. 101. AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
              1965.

    The Elementary and Secondary Education Act of 1965 is amended to 
read as follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the ``Elementary and Secondary Education 
Act of 1965''.

        ``TITLE I--IMPROVED EDUCATION FOR DISADVANTAGED CHILDREN

``SEC. 1001. DECLARATION OF POLICY AND STATEMENT OF PURPOSE.

    ``(a) Statement of Policy.--The Congress declares it to be the 
policy of the United States that a high-quality education for all 
persons and a fair and equal opportunity to obtain such education--
            ``(1) are a societal good necessary for creating a vibrant 
        future for our complex and diverse democracy and for meeting 
        the challenge of an internationally competitive economy;
            ``(2) are a private good because individual opportunity is 
        greatly enhanced by being well educated;
            ``(3) are a moral imperative in our society and simple 
        justice demands that the opportunity to acquire skills and 
        knowledge deemed necessary for basic citizenship and economic 
        opportunity be equally available to all; and
            ``(4) improve the life of every person, because the quality 
        of individual lives ultimately depends on the quality of the 
        lives of others.
    ``(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 these schools;
            ``(3) educational needs are particularly great for low-
        achieving children in the highest-poverty schools, children 
        with limited English proficiency, children of migrant workers, 
        Indian children, children who are neglected or delinquent, and 
        young children and their parents who are in need of family-
        literacy services; and
            ``(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.
    ``(c) What Has Been Learned.--To enable schools to provide all 
children a high-quality education, this title builds upon what has been 
learned:
            ``(1) All children can master challenging content and 
        complex problem-solving skills and research clearly shows that 
        children, including low-achieving children, can succeed when 
        expectations are high and they 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) A better understanding of the principles of good 
        health can help children and adolescents succeed in school, 
        become active, productive members of society, and successfully 
        compete in a rapidly changing global economy. Schools that 
        provide quality physical and health education contribute to 
        enhanced knowledge, behavior, and fitness of children and 
        adolescents.
            ``(4) 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.
            ``(5) Resources are more effective when they ensure that 
        children have full access to effective regular school programs 
        and receive supplemental help through extended-time activities.
            ``(6) The disproven theory that children must first learn 
        basic skills before engaging in more complex tasks continues to 
        dominate strategies for classroom instruction, resulting in 
        emphasis on repetitive drill and practice at the expense of 
        content-rich instruction, accelerated curricula, and effective 
        teaching to high standards.
            ``(7) 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.
            ``(8) Insufficient attention and resources are directed 
        toward the effective use of technology in schools and the role 
        it can play in professional development and improved teaching 
        and learning.
            ``(9) All parents can contribute to their children's 
        success by helping at home and becoming partners with teachers 
        so that children can achieve high standards.
            ``(10) Decentralized decisionmaking is a key ingredient of 
        systemic reform. Schools need the resources, flexibility, and 
        responsibility to design and implement effective strategies for 
        bringing children to high levels of performance and should 
        accept responsibility to do so.
            ``(11) Opportunities for students to achieve high standards 
        can be enhanced through a variety of approaches such as public 
        school choice and public charter schools.
            ``(12) 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.
            ``(13) Resources provided under this title can be better 
        targeted on the highest-poverty local educational agencies and 
        schools that have children most in need.
    ``(d) Statement of Purpose.--The purpose of this title is to enable 
schools to provide opportunities for children served to acquire the 
knowledge and skills contained in the rigorous State content standards 
and to meet the challenging State performance standards developed for 
all children under the Goals 2000: Educate America Act or, in their 
absence, under this title. 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 through schoolwide programs or through 
        additional services that increase the amount and quality of 
        instructional time so that children served under this title 
        receive at least the classroom instruction that other children 
        receive;
            ``(3) promoting schoolwide reform and ensuring access of 
        children (from the earliest grades) to effective instructional 
        strategies and challenging academic content that includes 
        intensive complex thinking and problem-solving experiences;
            ``(4) significantly upgrading the quality of curricula and 
        instruction by providing staff in participating schools with 
        substantial opportunities for intensive and sustained 
        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 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 are achieving high State standards of 
        performance 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.

     ``Appropriations are authorized for the following programs and 
activities under this title:
             ``(1) Local educational agency grants.--For the purpose of 
        carrying out part A of this title, other than sections 1117, 
        and 1120(d), 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 fiscal years 1996, 1997, 1998, and 
        1999.
             ``(2) Even start.--For the purpose of carrying out part B 
        of this title, there are authorized to be appropriated 
        $118,000,000 for fiscal year 1995 and such sums as may be 
        necessary for each of the fiscal years 1996, 1997, 1998, and 
        1999.
             ``(3) Education of migratory children.--For the purpose of 
        carrying out part C of this title, there are authorized to be 
        appropriated $310,000,000 for fiscal year 1995 and such sums as 
        may be necessary for each of the fiscal years 1996, 1997, 1998, 
        and 1999.
             ``(4) Prevention and intervention services for delinquent 
        youth and youth at risk of dropping out.--For the purpose of 
        carrying out part D of this title, there are authorized to be 
        appropriated $40,000,000 for fiscal year 1995 and such sums as 
        may be necessary for each of the fiscal years 1996, 1997, 1998, 
        and 1999.
             ``(5) Capital expenses.--For the purpose of carrying out 
        section 1120(d) of this title, there are authorized to be 
        appropriated $41,434,000 for fiscal year 1995 and such sums as 
        may be necessary for each of the fiscal years 1996, 1997, 1998, 
        and 1999.
             ``(6) School improvement.--For the purpose of carrying out 
        the activities authorized in section 1117 of this title, 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.
             ``(7) Federal activities.--(A) For the purpose of carrying 
        out section 1501 of this title, there are authorized to be 
        appropriated $9,000,000 for fiscal year 1995 and such sums as 
        may be necessary for each of the fiscal years 1996, 1997, 1998, 
        and 1999.
            ``(B) For the purpose of carrying out sections 1502 and 
        1503 of this title, there are authorized to be appropriated 
        $20,000,000 for fiscal year 1995 and such sums as may be 
        necessary for each of the fiscal years 1996, 1997, 1998, and 
        1999.

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

                ``Subpart 1--Basic Program Requirements

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--(1) 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, administrators, 
and parents, that--
            ``(A)(i) is integrated with the State's plan, either 
        approved or being developed, under title III of the Goals 2000: 
        Educate America Act, and satisfies the requirements of this 
        section that are not already addressed by that State plan; and
            ``(ii) is integrated with other State plans, if any, under 
        the School-to-Work Opportunities Act of 1993 and the Carl D. 
        Perkins Vocational and Applied Technology Education Act, to the 
        extent that these plans have not already been incorporated in 
        the State's plan under title III of the Goals 2000: Educate 
        America Act; or
            ``(B) if the State does not have an approved plan under 
        title III of the Goals 2000: Educate America Act and is not 
        developing such a plan--
                    ``(i) is integrated with other State plans under 
                this Act and other plans, including those under the 
                School-to-Work Opportunities Act of 1993 and the Carl 
                D. Perkins Vocational and Applied Technology Education 
                Act, where such plans exist; and
                    ``(ii) satisfies the requirements of this section.
    ``(2) The plan may be submitted as part of a consolidated 
application under section 9302.
    ``(3) A State may satisfy all or part of the requirements of this 
section by referencing applicable sections of its approved State plan 
under title III of the Goals 2000: Educate America Act.
    ``(b) Standards and Assessment Provisions.--(1)(A) Each State plan 
shall demonstrate that the State has developed or adopted high-quality 
standards for children served under this title that will be used by the 
State, its local educational agencies, and its schools to carry out 
this Act and that these standards be as challenging and of the same 
high-quality as they are for all children. These standards shall 
include--
            ``(i) challenging content standards in the core academic 
        subjects that--
                    ``(I) specify what children served under this title 
                are expected to know and be able to do;
                    ``(II) contain coherent and rigorous content; and
                    ``(III) emphasize the teaching of advanced skills;
            ``(ii) challenging 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 served under this title are mastering the 
                material in the content standards; and
                    ``(III) include a third benchmark below proficient, 
                if necessary, to provide complete information about the 
                progress of the lower-performing children toward 
                achieving the high `proficient' and `advanced' 
                performance standards; and
            ``(iii) model opportunity to learn standards for schools 
        which receive assistance under this title that address--
                    ``(I) the alignment of curricula, instructional 
                materials, and other school resources with the content 
                and performance standards adopted by the State;
                    ``(II) the capability of teachers to provide high 
                quality instruction within each subject area for which 
                the State has adopted content and performance 
                standards; and
                    ``(III) such other factors that the State deems 
                appropriate to ensure that students served under this 
                title receive a fair opportunity to achieve the 
                knowledge and skills described in content and 
                performance standards adopted by the State.
    ``(B) For those core academic subjects in which a State has not 
adopted challenging content and performance standards, the State plan 
shall include a schedule for their development that includes the 
completion of standards in mathematics and reading/language arts by the 
end of the interim period as described in paragraph (8).
    ``(2)(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 `proficient' and `advanced' 
        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 `proficient' and 
        `advanced' performance standards.
    ``(B) Adequate yearly progress shall be defined in a manner--
            ``(i) that is consistent with criteria of general 
        applicability established by the Secretary and results in 
        continuous and substantial yearly improvement for economically 
        disadvantaged, limited-English proficient, and all students 
        under this title in each school and local educational agency 
        toward the goal of all children under this title meeting the 
        State's challenging `advanced' performance standards; and
            ``(ii) 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 
        outcome-based measures such as reductions in drop-out rates.
    ``(3) Each State plan shall demonstrate that the State has 
developed or adopted a set of high-quality, yearly student assessments 
that will be used as the primary means of determining the yearly 
performance of each local educational agency and school receiving 
assistance under this part in enabling children served under this title 
to meet the State's performance standards and that these assessments be 
challenging and of the same high-quality as they are for all children. 
These assessments shall--
            ``(A) be aligned with the State's challenging content and 
        performance standards and provide coherent information about 
        student attainment of such standards;
            ``(B) be used for purposes for which they are valid and 
        reliable, and be consistent with relevant nationally recognized 
        professional and technical standards of assessments;
            ``(C) shall measure the proficiency of students in the core 
        academic subjects in which a State has adopted challenging 
        content and 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.
            ``(D) be comprised of multiple, up-to-date measures of 
        student performance;
            ``(E)(i) include 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 these students know and can do, to determine their 
        mastery of skills in subjects other than English;
            ``(ii) include students who have been resident in a local 
        educational agency for a full academic year but have not 
        attended a single school for a full year, provided that 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; and
            ``(iii) include students with disabilities who shall be 
        assessed, to the extent practicable, in a manner and form most 
        likely to yield accurate and reliable information on what these 
        students know and can do, including assessment accommodations 
        and modifications necessary to make such determinations, 
        provided that those students who are determined, through valid 
        evaluation conducted by qualified personnel, to be so severely 
        cognitively impaired as to permanently lack the capacity to 
        make any educational progress, with the provision of special 
        education and related services, in meeting the State content 
        and performance standards may be exempted from the assessment 
        process;
            ``(F) provide individual student scores; and
            ``(G) provide for disaggregated results within each State, 
        local educational agency, and school by gender, by each major 
        racial and ethnic group, by English proficiency status, and by 
        economically disadvantaged students as compared to students who 
        are not economically disadvantaged.
    ``(4) 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 shall notify the Secretary if linguistically-
accessible assessment measures are needed. Upon notification, the 
Secretary shall assist with the identification of appropriate 
assessment measures in the needed languages through the Office of 
Bilingual Education and Minority Language Affairs.
    ``(5) If a State has developed or adopted challenging content and 
performance standards and an aligned set of assessments for all 
students such as those developed under title III of the Goals 2000: 
Educate America Act, or another process, the State shall use such 
standards and assessments, modified, if necessary, to conform with the 
requirements of paragraphs (1)(A)(ii), (2), and (3).
    ``(6) If, after 2 years, a State does not have challenging content 
and performance standards that meet the requirements of paragraph (1) 
or after 3 years, a State does not have assessments that meet the 
requirements of paragraph (3), a State shall adopt a set of standards 
and aligned assessments such as the standards and assessments contained 
in other State plans that the Secretary has approved.
    ``(7)(A) If a State does not have assessments that meet the 
requirements of paragraph (3), the State may propose to use an interim 
set of yearly statewide assessments that will assess the performance of 
complex skills and challenging subject matter.
    ``(B) For any year during which a State is using an interim 
assessment system, the State shall devise a means for identifying 
schools and local educational agencies in need of improvement under 
section 1116.
    ``(c) Other Provisions To Support Teaching And Learning.--Each 
State plan shall also describe--
            ``(1)(A) the means by which 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 assistance in providing high quality 
        professional development under section 1119 and technical 
        assistance under section 1117; and
            ``(B)(i) where educational service agencies exist, the 
        State educational agency shall consider providing professional 
        development and technical assistance through such agencies; and
            ``(ii) where educational service agencies do not exist, the 
        State educational agency shall consider providing professional 
        development and technical assistance through other cooperative 
        agreements such as a consortium of local educational agencies;
            ``(2) the measure of poverty that local educational 
        agencies shall use which shall include such measures as the 
        number of children age 5 to 7 in poverty counted in the most 
        recent census data approved by the Secretary, the number of 
        children eligible to receive free and reduced price lunches 
        under the National School Lunch Act, the number of children in 
        families receiving assistance under Aid to Families With 
        Dependent Children or the number of children eligible to 
        receive medical assistance under the Medicaid program; or a 
        composite of such indicators;
            ``(3) how 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 fulfill its local 
        educational agency and school improvement responsibilities 
        under section 1116, including the corrective actions it will 
        take under section 1116(d)(6);
            ``(4) how the State educational agency will encourage the 
        use of funds from other Federal, State, and local sources for 
        schoolwide reform in schoolwide programs under section 1114;
            ``(5) how the Committee of Practitioners established under 
        section 1603(b) was substantially involved in the development 
        of the plan and will continue to be involved in monitoring its 
        implementation by the State;
            ``(6) how the State educational agency will assess the 
        needs of local educational agencies serving rural areas and the 
        plans the State educational agency has to meet those needs;
            ``(7) how the State educational agency will encourage the 
        establishment and operation of cooperative education, 
        mentoring, and apprenticeship programs, involving business and 
        industry; and
            ``(8) how the State will coordinate activities funded under 
        this part with school-to-work and vocational education 
        programs, as appropriate.
    ``(d) Peer Review and Secretarial Approval.--The Secretary--
            ``(1) shall establish a peer review process to assist in 
        the review of State plans;
            ``(2) shall appoint individuals to the peer review process 
        who shall be representative of State educational agencies, 
        local educational agencies, teachers, and parents;
            ``(3) shall, following an initial peer review, approve a 
        State plan the Secretary determines meets the requirements of 
        subsections (a), (b), and (c); and
            ``(4)(A) shall, 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 it;
            (B) shall not decline to approve a State's plan before 
        offering the State an opportunity to revise its plan or 
        application, provide technical assistance in order to assist 
        the State to meet the requirements under subsections (a), (b), 
        and (c) and a hearing; and
            (C) may withhold funds until determining that the plan 
        meets the requirements of this section, provided, however, that 
        the Secretary may not withhold funds on the basis of the 
        specific content of the opportunity-to-learn standards adopted 
        by a State under this section.
    ``(e) Duration of the Plan.--(1) 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) If the State makes significant changes in its plan, such as 
the adoption of new content and performance standards, new assessments, 
or a new definition of adequate progress, the State shall submit this 
information to the Secretary for approval.
    ``(f) 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.
    ``(g) Notwithstanding any other provision of this Act, the 
implementation of model opportunity-to-learn standards shall be 
voluntary on the part of the States, local educational agencies, and 
schools.
    ``(h) 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 
opportunity-to-learn standards as a condition of eligibility to receive 
funds under this title.
    ``(i) Nothing in this section shall be construed to create a 
legally enforceable right for any person against a State, local 
educational agency, or school based on opportunity-to-learn standards.
    ``(j) Nothing in this section shall be construed to mandate 
equalized spending per pupil for State, local educational agency, or 
school.
    ``(k) Nothing in this section shall be construed to mandate 
national school building standards for a State, local educational 
agency, or school.
    ``(l) If aggregate State expenditure by the State educational 
agency for operation of elementary and secondary education programs is 
less than the State educational agency's aggregate Federal allocation 
for State operation of all Federal elementary and secondary education 
programs, then the State plan for title I must include assurances and 
specific provisions for State expenditures for operation of elementary 
and secondary education programs to equal or exceed the level of 
Federal expenditures for such operation by fiscal year 1999.

``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

    ``(a) Plans Required.--(1) A local educational agency may receive a 
subgrant under this part for any fiscal year only if it has on file 
with the State educational agency a plan, approved by the State 
educational agency, that--
            ``(A)(i) is integrated with the local educational agency's 
        plan, either approved or being developed, under title III of 
        the Goals 2000: Educate America Act, and satisfies the 
        requirements of this section that are not already addressed by 
        that State plan; and
            ``(ii) is integrated with local plans, if any, under the 
        School-to-Work Opportunities Act of 1993 and the Carl D. 
        Perkins Vocational and Applied Technology Education Act, to the 
        extent that such plans have not already been incorporated into 
        the local educational agency's plan under title III of the 
        Goals 2000: Educate America Act; or
            ``(B) if the local educational agency does not have an 
        approved plan under title III of the Goals 2000: Educate 
        America Act and is not developing such a plan--
                    ``(i) is integrated with other local plans under 
                this Act and other plans, including those under the 
                School-to-Work Opportunities Act of 1993 and the Carl 
                D. Perkins Vocational and Applied Technology Education 
                Act, where such plans exist; and
                    ``(ii) satisfies the requirements of this section.
    ``(2) The plan may be submitted as part of a consolidated 
application under section 9302.
    ``(3) A local educational agency may satisfy all or part of the 
requirements of this section by referencing applicable sections of its 
approved plan under title III of the Goals 2000: Educate America Act.
    ``(b) Standards and Assessment Provisions.--Each local educational 
agency plan shall include--
            ``(1) a description of its challenging content and 
        performance standards, if any, in the core subjects, in 
        addition to the content and performance standards adopted by 
        the State under section 1111, that the local educational agency 
        expects children served under this title to meet;
            ``(2) a description, based on the assessments described 
        under paragraph (3), of what constitutes adequate yearly 
        progress if a local educational agency elects to establish such 
        measures that are more stringent than the measures described in 
        the State plan under section 1111;
            ``(3) a description of additional high-quality student 
        assessments, if any, other than the assessments described in 
        the State plan under section 1111, that the local educational 
        agency and schools served under this part will use to--
                    ``(A) determine the success of children served 
                under this title in meeting the State's performance 
                standards;
                    ``(B) assist in diagnosis, teaching, and learning 
                in the classroom in ways that best enable children 
                served under this title 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 performance standards.
    ``(c) Other Provisions To Support Teaching and Learning.--(1) To 
ensure high-quality instruction to enable participating children to 
meet the State's challenging performance standards expected of all 
students, each local educational agency plan shall describe a coherent 
strategy for intensive and sustained professional development for 
teachers, administrators, and other staff, including staff of such 
agency, in accordance with section 1119.
    ``(2) Each local educational agency plan shall describe how the 
local educational agency will--
            ``(A) notify schools of the authority to operate schoolwide 
        programs;
            ``(B) work in consultation with schools as the schools 
        develop their plans pursuant to section 1114 or 1115 and assist 
        schools as they implement such plans so that each school can 
        make adequate yearly progress toward meeting the State's 
        standards; and
            ``(C) fulfill its school improvement responsibilities under 
        section 1116, including the corrective actions it will take 
        under section 1116(c)(5).
    ``(3) To address the comprehensive needs of children served under 
this title, each local educational agency plan shall describe how the 
local educational agency will--
            ``(A) coordinate and integrate services provided under this 
        part with other educational services at the local educational 
        agency or individual school level, including--
                    ``(i) Even Start, Head Start, and other preschool 
                programs, including plans for the transition of 
                participants in such programs to local elementary 
                school programs, vocational education programs, and 
                school-to-work transition programs; and
                    ``(ii) services for children with limited English 
                proficiency or with disabilities, migratory children 
                served under part C of this title or who were formerly 
                eligible for services under part C in the 2-year period 
                preceding the date of the enactment of this title, 
                delinquent youth and youth at risk of dropping out 
                served under part D of this title, homeless children, 
                and immigrant children in order to increase program 
                effectiveness, eliminate duplication, and reduce 
                fragmentation of the children's instructional program; 
                and
            ``(B) coordinate and collaborate with other agencies 
        providing services to children, youth, and families, including 
        health and social services.
    ``(4) The local educational agency plan also shall include a 
description of--
            ``(A) the poverty criteria that will be used to select 
        school attendance areas under section 1113;
            ``(B) the multiple criteria that will be used by targeted 
        assistance schools under section 1115 to identify children 
        eligible for services under this part;
            ``(C) the nature of the programs to be conducted by its 
        schools under sections 1114 and 1115 and services outside such 
        schools for children in local institutions for neglected or 
        delinquent children and eligible homeless children, in 
        accordance in section 1115(b)(2)(D);
            ``(D) how the local educational agency will ensure that 
        migratory children and formerly migratory children who are 
        eligible to receive services under this part are selected to 
        receive such services on the same basis as other children who 
        are selected to receive services under this part;
            ``(E) how a school that plans to serve preschool children 
        through the Head Start or Even Start programs will use its 
        funds to expand such programs to serve preschool children from 
        its attendance area that otherwise would not have been served 
        or increase the level of service to children presently being 
        served;
            ``(F) how the local educational agency will provide 
        services to eligible children attending private elementary and 
        secondary schools in accordance with section 1120, and how 
        timely and meaningful consultation with private school 
        officials regarding such services will occur; and
            ``(G) the number of schoolwide programs that will be 
        operating in the local educational agency.
    ``(d) Plan Development and Duration.--Each local educational agency 
plan shall--
            ``(1) be developed in consultation with teachers, including 
        vocational teachers, where appropriate, and parents of children 
        in schools served under this part; and
            ``(2)(A) remain in effect for the duration of the local 
        educational agency's participation under this part; and
            ``(B) periodically be reviewed and revised, as necessary, 
        to reflect changes in the local educational agency's strategies 
        and programs.
    ``(e)(1) State Approval.--The State educational agency shall 
approve a local educational agency's plan only if the State educational 
agency determines that the plan will enable schools served under this 
part to substantially help children served under this title to meet the 
State's challenging performance standards expected of all children.
    ``(2) The State educational agency shall review the local 
educational agency's plan to determine if such agency's professional 
development activities are in accordance with section 1119.
    ``(f) Program Responsibility.--The local educational agency plan 
shall reflect the shared responsibility of schools, teachers, and the 
local educational agency in making decisions required under sections 
1114 and 1115.

``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

    ``(a) In General.--(1)(A)(i) A local educational agency shall use 
funds received under this part only in school attendance areas with 
high concentrations of children from low-income families, hereafter in 
this section referred to as `eligible school attendance areas'.
    ``(ii) For the purposes of this part--
            ``(I) `school attendance area' means, in relation to a 
        particular school, the geographical area in which the children 
        who are normally served by such school reside; and
            ``(II) `eligible school attendance area' means a school 
        attendance area in which the percentage of children from low-
        income families is at least as high as the percentage of 
        children from low-income families in the local educational 
        agency as a whole.
    ``(B) If funds allocated in accordance with subsection (c) are 
insufficient to serve all eligible school attendance areas, a local 
educational agency shall--
            ``(i) annually rank, without regard to grade spans, its 
        eligible school attendance areas in which the concentration of 
        children from low-income families exceeds 75 percent from 
        highest to lowest according to the percentage of children from 
        low-income families; and
            ``(ii) serve such eligible school attendance areas in rank 
        order.
    ``(C) If funds remain after serving all eligible school attendance 
areas under subparagraph (B), a local educational agency shall--
            ``(i) annually rank its remaining eligible school 
        attendance areas from highest to lowest either by grade span or 
        for the entire local educational agency according to the 
        percentage of children from low-income families; and
            ``(ii) serve such eligible school attendance areas in rank 
        order either within each grade-span grouping or within the 
        local educational agency as a whole.
    ``(2) The local educational agency shall use as the measure of 
poverty, the number of children ages 5-17 in poverty counted in the 
most recent census data approved by the Secretary, the number of 
children eligible for free and reduced priced lunches under the 
National School Lunch Act, the number of children in families receiving 
assistance under Aid to Families with Dependent Children or the number 
of children eligible to receive medical assistance under the Medicaid 
program, or a composite of such indicators, with respect to all school 
attendance areas in the local educational agency--
            ``(A) to identify eligible school attendance areas;
            ``(B) to determine the ranking of each area; and
            ``(C) to determine allocations under subsection (c).
    ``(3) This subsection shall not apply to a local educational agency 
with a total enrollment of less than 1,000 children.
    ``(b) Local Educational Agency Discretion.--Notwithstanding 
subsection (a)(1), a local educational agency may--
            ``(1) designate as eligible any school attendance area or 
        school in which at least 50 percent of the children are from 
        low-income families;
            ``(2) use funds received under this part in a school that 
        is not in an eligible school attendance area, if the percentage 
        of children from low-income families enrolled in the school is 
        equal to or greater than the percentage of such children in a 
        participating school attendance area of such agency;
            ``(3)(A) elect not to serve an eligible school attendance 
        area or eligible school that has a higher percentage of 
        children from low-income families if--
                    ``(i) the school meets the comparability 
                requirements of section 1121(c);
                    ``(ii) the school is receiving supplemental funds 
                from other State or local sources that are spent 
                according to the requirements of section 1114 or 1115; 
                and
                    ``(iii) the funds expended from such other sources 
                equal or exceed the amount that would be provided under 
                this part; and
            ``(B) notwithstanding subparagraph (A), the number of 
        children attending private elementary and secondary schools who 
        are to receive services, and the assistance they are to receive 
        under this part, shall be determined without regard to whether 
        the public school attendance area in which such children reside 
        is passed over under this paragraph;
            ``(4) use funds received under this part to serve eligible 
        children who reside in school attendance areas served under the 
        part and who attend schools in other school attendance areas in 
        accordance with a court-ordered school desegregation plan or a 
        plan which continues to be implemented in accordance with a 
        district-wide, court-ordered desegregation plan; and
            ``(5) in local educational agencies that have over 900,000 
        students, to the extent feasible, use funds received under this 
        part to serve educationally deprived children who reside in 
        school attendance areas having high concentrations of children 
        from low-income families and who otherwise meet the eligibility 
        requirements of this part and who attend schools in noneligible 
        attendance areas.
    ``(c) Allocations.--(1) A local educational agency shall allocate 
funds received under this part to eligible school attendance areas or 
eligible schools, identified under subsection (a) or (b), in rank 
order, on the basis of the total number of children from low-income 
families in each area or school.
    ``(2)(A) Except as provided in subparagraph (B), the per-pupil 
amount of funds allocated to each school attendance area or school 
under paragraph (1) shall be not less than 80 percent of the per-pupil 
amount of funds the local educational agency received for such year 
under sections 1124, 1124A, and 1125.
    ``(B) A local educational agency may reduce the amount of funds 
allocated under subparagraph (A) for a school attendance area or school 
by the amount of any supplemental State and local funds expended in 
such school attendance area or school for programs that meet the 
requirements of section 1114 or 1115.
    ``(3) A local educational agency shall reserve such funds as are 
necessary under this part to provide services comparable to the 
services provided to children in schools funded under this part to 
serve--
            ``(A) homeless children in accordance with section 
        1115(b)(2)(D); and
            ``(B) children in local institutions for delinquent 
        children.

``SEC. 1114. SCHOOLWIDE PROGRAMS.

    ``(a) Use of Funds for Schoolwide Programs.--(1) A local 
educational agency may use funds under this part, in combination with 
other Federal, State, and local funds, to upgrade the entire 
educational program in an eligible school if, for the initial year of 
the schoolwide program, the school meets the following criteria:
            ``(A) For the school year 1995-96--
                    ``(i) the school serves an eligible school 
                attendance area in which at least 65 percent of the 
                children are from low-income families; or
                    ``(ii) at least 65 percent of the children enrolled 
                in the school are from such families.
            ``(B) For school year 1996-97 and thereafter, the 
        percentage requirement of clauses (i) and (ii) of subparagraph 
        (A) shall be 60 percent.
    ``(2) The provisions of paragraph (1) notwithstanding, a local 
educational agency may start new schoolwide programs only after the 
State educational agency provides written information to each local 
educational agency in the State that--
            ``(A) demonstrates that such State agency has established 
        the statewide system of support and improvement required by 
        section 1117 (c)(1) and (e); and
            ``(B) describes how such statewide system, together with 
        other providers of assistance with which the State has made 
        specific arrangements to assist schoolwide programs, such as 
        comprehensive technical assistance centers, regional 
        laboratories, and institutions of higher education, has the 
        capability of providing on-site assistance if necessary to each 
        eligible school.
    ``(3) A schoolwide program school shall use such funds only to 
supplement the amount of funds that would, in the absence of funds 
under this part, be made available from non-Federal sources for the 
school, including funds needed to provide services that are required by 
law for children with disabilities and children with limited English 
proficiency.
    ``(4) A school may use funds received under any noncompetitive, 
formula-grant program administered by the Secretary, excluding programs 
under the Individuals With Disabilities Education Act, and any 
discretionary program contained on a list (updated as necessary) issued 
by the Secretary to support a schoolwide program, notwithstanding any 
provision of the statute or regulations governing any such program.
    ``(b) Components of a Schoolwide Program.--(1) A schoolwide program 
shall include the following components:
            ``(A) A comprehensive needs assessment of the entire school 
        that is based on information on the performance of children in 
        relation to the State's standards.
            ``(B) Schoolwide reform strategies that--
                    ``(i) provide opportunities for all children to 
                meet the State's `proficient' and `advanced' 
                performance standards expected of all children;
                    ``(ii) are based on research on effective means of 
                improving the achievement of children;
                    ``(iii) use effective instructional strategies 
                which may include the integration of vocational and 
                academic learning (including applied learning and team 
                teaching strategies) that increase the amount and 
                quality of learning time, such as providing an extended 
                school year and before- and after-school programs and 
                opportunities, and help provide an enriched and 
                accelerated curriculum rather than remedial drill and 
                practice, and that incorporate gender-equitable methods 
                and practices;
                    ``(iv) address the needs of all children in the 
                school, but particularly the needs of low-achieving 
                children, children with limited-English proficiency, 
                children from migratory families, and children who are 
                members of the target population of any program that is 
                included in the schoolwide program, address how the 
                school will determine if such needs have been met, 
                describe the current program being offered to limited-
                English proficient students, and address how the school 
                will build upon, expand, or coordinate the schoolwide 
                program with the current program; and
                    ``(v) are consistent with, and are designed to 
                implement, the State and local reform plans, if any, 
                approved under title III of the Goals 2000: Educate 
                America Act.
            ``(C) Instruction by highly qualified professional staff.
            ``(D) Intensive and sustained professional development for 
        teachers, principals, and other staff, including aides, in 
        accordance with section 1120, to enable all children in the 
        school to meet the State's performance standards.
            ``(E) Strategies to increase parental involvement, 
        including family literary services.
            ``(F) Plans for assisting preschool children in the 
        transition from early childhood programs, such as Head Start, 
        Even Start, or a State-run preschool program, to local 
        elementary school programs.
            ``(G) Additionally, in schools serving children beyond 
        grade six, in coordination with funds available from other 
        programs and, as appropriate, drawing on private and public 
        organizations--
                    ``(i) counseling and mentoring services;
                    ``(ii) college and career awareness, exploration, 
                and preparation, such as college and career guidance, 
                comprehensive career development, occupational 
                information, enhancement of employability and 
                occupational skills, personal finance education, job 
                placement services, and innovative teaching methods 
                which may include applied learning and team teaching 
                strategies; and
                    ``(iii) services to prepare students for the 
                transition from school to work, including the formation 
                of partnerships between elementary, middle, and 
                secondary schools and local businesses, and the 
                integration of school-based and work-based learning.
    ``(2)(A) Any eligible school that desires to operate a schoolwide 
program shall first develop, in consultation with the local educational 
agency and its school support team or other technical assistance 
provider consistent with the provisions in subsection (c)(1) and (e) of 
section 1117, a comprehensive plan for reforming the total 
instructional program in the school that--
            ``(i) incorporates the components described in paragraph 
        (1);
            ``(ii) describes how the school will use resources under 
        this part and from other sources to implement such components;
            ``(iii) includes a list of State and local educational 
        agency programs and other Federal programs under paragraph 
        (a)(3) that will be included in the schoolwide program; and
            ``(iv) describes how the school will provide individual 
        student assessment results, including an interpretation of 
        those results, to the parents of a child who participates in 
        the assessment required by section 1111(b)(3).
    ``(B) Plans developed before a State has adopted standards and a 
set of assessments that meet the criteria in section 1111(b) (1) and 
(3) shall be based on an analysis of available data on the achievement 
of students in the school and a review of the school's instructional 
practices in the context of available research on effective 
instructional and school improvement practices.
    ``(C) The comprehensive plan shall be--
            ``(i) developed during a one-year period, unless--
                    ``(I) the local educational agency, based on the 
                recommendation of the technical assistance providers 
                under section 1117, determines that less time is needed 
                to develop and implement the schoolwide program; or
                    ``(II) the school is operating a schoolwide program 
                at the time this section takes effect, in which case it 
                may continue to operate such program, but shall develop 
                a new plan during the first year to reflect the 
                provisions of this section;
            ``(ii) developed with the involvement of the community to 
        be served and individuals who will carry it out, including 
        teachers, principals, other staff, parents, and, if the plan 
        relates to a secondary school, students from the school;
            ``(iii) reviewed and revised, as necessary, by the school;
            ``(iv) made available to parents and the public with the 
        information contained in such plan translated, to the extent 
        feasible, into any language that a significant percentage of 
        the parents of participating children in the school speak as 
        their primary language; and
            ``(v) developed where appropriate in coordination with 
        programs under the School-to-Work Opportunities Act, the Carl 
        D. Perkins Vocational and Applied Technology Education Act, and 
        the National and Community Service Trust Fund Act.
    ``(c) Accountability.--
            ``(1) As provided in subsection (c) of section 1116, each 
        schoolwide program shall be subject to school improvement for 
        failure to make adequate progress for two consecutive years.
            ``(2) A schoolwide program identified for school 
        improvement under such subsection that has not made adequate 
        progress by the third year following such identification shall 
        be subject to corrective actions by the local educational 
        agency, as well as, where appropriate, termination of 
        schoolwide program status.
            ``(3) A school that has forfeited its schoolwide status may 
        not regain such status until the local educational agency 
        determines that the school has adequately reformed its 
        schoolwide program plan to enable it to make adequate progress 
        toward meeting the State's challenging performance standards.

``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

    ``(a) In General.--In all schools selected to participate under 
section 1113 that are ineligible for a schoolwide program, or that 
choose not to operate a schoolwide program, a local educational agency 
may use funds received under this part only for programs that provide 
services to eligible children identified as having the greatest need 
for special assistance.
    ``(b) Eligible Children.--(1)(A) The eligible population for 
services under this part is--
            ``(i) children up to age 21 who are entitled to a free 
        public education through grade 12; and
            ``(ii) children who are not yet at a grade level where the 
        local educational agency provides a free public education, yet 
        are of an age at which they can benefit from an organized 
        instructional program provided in a school or other educational 
        setting.
    ``(B) From the population described in subparagraph (A), eligible 
children are children identified by the school as failing, or most at 
risk of failing, to meet the State's challenging performance standards 
on the basis of multiple, educationally related, objective criteria 
established by the local educational agency and supplemented by the 
school, except that children from preschool through grade two shall be 
selected solely on the basis of such criteria as teacher judgment, 
interviews with parents, and developmentally appropriate measures.
    ``(2)(A)(i) Children receiving services to overcome a disability or 
limited English proficiency are eligible for services under this part 
on the same basis as other children selected to receive services under 
this part.
    ``(ii) Funds received under this part may not be used to provide 
services that are otherwise required by law to be made available to 
such children.
    ``(B) A child who, at any time in the previous two years, 
participated in a Head Start, Even Start, or State-run preschool 
program shall be automatically eligible for services under this part.
    ``(C)(i) A child who, at any time in the previous two years 
received services under the program for delinquent youth and youth at 
risk of dropping out under part D of this title (or its predecessor 
authority) may be eligible for services under this part.
    ``(ii) Any child in a local institution for neglected or delinquent 
children or attending a community day program for such children is 
eligible for services under this part.
    ``(D) A local educational agency shall use funds received under 
this part to serve eligible homeless children who attend a school in 
the local educational agency that receives funds under this title. To 
the extent feasible, a local educational agency shall use funds 
received under this part to serve eligible homeless children who attend 
schools in noneligible attendance areas, including providing 
educationally related support services to children in shelters, where 
appropriate.
    ``(c) Components of a Targeted Assistance School Program.--(1) To 
assist targeted assistance schools and local educational agencies to 
meet their responsibility to provide all students with the opportunity 
to meet the State's challenging performance standards, each targeted 
assistance program under this section shall--
            ``(A) use its resources under this part to help 
        participating children meet the challenging performance 
        standards expected for all children;
            ``(B) be based on research on effective means for improving 
        achievement of children;
            ``(C) use effective instructional strategies that--
                    ``(i) give primary consideration to providing 
                extended learning time such as an extended school year 
                and before- and after-school programs and 
                opportunities;
                    ``(ii) involve an accelerated, high-quality 
                curriculum, including applied learning, rather than 
                remedial drill and practice; and
                    ``(iii) minimize removing children from the regular 
                classroom for instruction provided under this part;
            ``(D) be coordinated with and support the regular program 
        in providing an enriched and accelerated curriculum for 
        eligible children;
            ``(E) provide instruction by highly qualified professional 
        staff;
            ``(F) provide opportunities for intensive and sustained 
        professional development in accordance with section 1119 with 
        resources under this part and from other sources 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;
            ``(G) provide strategies to increase parental involvement, 
        including family literary services;
            ``(H) provide plans for assisting preschool children in the 
        transition from early childhood programs, such as Head Start, 
        Even Start, or a State-run preschool program, to local 
        elementary school programs; and
            ``(I) include, additionally, in schools serving children 
        beyond grade six, in coordination with funds available from 
        other programs and, as appropriate, drawing on private and 
        public organizations--
                    ``(i) counseling and mentoring;
                    ``(ii) college and career awareness and 
                preparation, such as college and career guidance, 
                comprehensive career development, enhancement of 
                employability skills, personal finance education, and 
                job placement services; and
                    ``(iii) services to prepare students for the 
                transition from school to work, including the formation 
                of partnerships between elementary, middle, and 
                secondary schools and local businesses.
    ``(2)(A) Each school conducting a program under this section shall 
develop, in consultation with the local educational agency, a plan to 
assist participating children to meet the State's `proficient' and 
`advanced' performance standards that describes--
            ``(i) the selection of children to participate in 
        accordance with subsection (b);
            ``(ii) the program to be conducted that incorporates the 
        components described in paragraph (1) and how the resources 
        provided under this part will be coordinated with other 
        resources to enable the children served to meet the State's 
        standards;
            ``(iii) how the school will review, on an ongoing basis, 
        the progress of participating children and revise the program, 
        if necessary, to provide additional assistance to enable such 
        children to meet the State's challenging performance standards 
        such as an extended school year and before- and after-school 
        programs and opportunities, training for teachers regarding how 
        to identify students that require additional assistance, and 
        training for teachers regarding how to implement performance 
        standards in the classroom; and
            ``(iv) if the school is eligible to operate a schoolwide 
        program under section 1114, why it chose not to do so.
    ``(B) Plans developed before a State has adopted standards and a 
set of assessments that meet the criteria of section 1111(b) (1) and 
(3) shall be based on an analysis of available data on the achievement 
of participating children and a review of the school's instructional 
practices in the context of available research on effective 
instructional practices.
    ``(C) Each plan shall be--
            ``(i) developed with the involvement of the community to be 
        served and the individuals who will carry it out, including 
        teachers, administrators, other staff, parents, representatives 
        from business and industry, and, if the plan relates to a 
        secondary school, students from the school;
            ``(ii) approved by the local educational agency and made 
        available to parents and the information contained therein 
        translated, to the extent feasible, into any language that a 
        significant percentage of the parents of participating children 
        in the school speak as their primary language; and
            ``(iii) reviewed and revised, as necessary, by the school.
    ``(d) Assignment of Personnel.--To promote the integration of staff 
paid with funds under this part and children served under this part 
into the regular school program and overall school planning and 
improvement efforts, public school personnel who are paid with funds 
received under this part may--
            ``(1) assume limited duties that are assigned to similar 
        personnel who are not so paid, including duties beyond 
        classroom instruction or that do not benefit participating 
        children so long as the amount of time spent on such duties is 
        the same proportion of total work time as prevails with respect 
        to similar personnel at the same school;
            ``(2) participate in general professional development and 
        school planning activities; and
            ``(3) collaboratively teach with regular classroom 
        teachers, so long as their efforts directly benefit 
        participating children.

``SEC. 1115A. SCHOOL CHOICE.

    ``(a) Choice Programs.--A local educational agency may use funds 
under this part, in combination with other Federal, State, local, and 
private funds to develop and implement choice programs, for children 
eligible for assistance under this title, which permit parents to 
select the public school that their children will attend.
    ``(b) Choice Plan.--A local educational agency that chooses to 
implement a school choice plan shall first develop a comprehensive plan 
that includes assurances that--
            ``(1) all eligible students across grade levels will have 
        equal access to the program;
            ``(2) the program does not include schools which follow a 
        racially discriminatory policy;
            ``(3) describe how the school will use resources under this 
        part and from other sources to implement such components;
            ``(4) describe how the school will provide individual 
        student assessment results, including an interpretation of such 
        results, to the parents of a child who participates in the 
        assessment required by section 1111(b)(3);
            ``(5) the plan will be developed with the involvement of 
        the community to be served and individuals who will carry it 
        out, including teachers, principals, and other staff, parents, 
        and, if the plan relates to a secondary school, students from 
        the school;
            ``(6) the plan will be made available to parents and the 
        public; and
            ``(7) the program shall not include schools that do not 
        receive funds under this title.

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

    ``(a) Local Review.--Each local educational agency receiving funds 
under this part shall--
            ``(1) use the State assessments described in the State plan 
        and any additional measures described in the local educational 
        agency's plan to review annually the progress of each school 
        served under this part to determine whether the school is 
        meeting, or making adequate progress as defined in section 
        1111(b)(2)(A)(i) or section 1112(b)(2), as appropriate, toward 
        enabling its students to meet, the State's performance 
        standards;
            ``(2) publicize and disseminate to teachers, parents, 
        students, and the community the results of the annual review 
        under paragraphs (1) and (2) of all schools served under this 
        part in individual school performance profiles that include 
        disaggregated results as required by section 1111(b)(3)(G); and
            ``(3) provide the results of the local annual review to 
        schools so that they can continually refine the program of 
        instruction to help all children in such schools to meet the 
        State's high 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) A local educational agency shall 
identify for school improvement any school served under this part 
that--
            ``(A) has been in program improvement under section 1021 of 
        chapter 1 of title I of the Elementary and Secondary Education 
        Act of 1965, as in effect before the effective date of the 
        Improving America's Schools Act of 1994, for at least two 
        consecutive school years prior to such date;
            ``(B) has not made adequate progress as defined in the 
        State's plan under section 1111(b)(2)(A)(i) or section 
        1112(b)(2), as appropriate, for two consecutive school years; 
        or
            ``(C) has failed to meet the criteria established by the 
        State through its interim procedure under section 1111(b)(5)(C) 
        for two consecutive years.
    ``(2) A school shall not be identified for school improvement if 
virtually all its students meet the State's advanced performance 
standards.
    ``(3)(A) Each school identified under paragraph (1) shall--
            ``(i) in consultation with parents, the local educational 
        agency, and, for schoolwide programs, the school support team, 
        revise its school plan under section 1114 or 1115 in ways that 
        have the greatest likelihood of improving the performance of 
        participating children in meeting the State's performance 
        standards including reviewing the school's plan in the context 
        of the State's model opportunity-to-learn standards; and
            ``(ii) submit the revised plan to the local educational 
        agency for approval.
    ``(B) Before identifying a school for program 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 would be based. If the 
school believes that its identification for school improvement would be 
in error, it may provide evidence to the local educational agency to 
support such belief.
    ``(C) During the first year immediately following identification 
under paragraph (1), the school shall implement its revised plan.
    ``(4) For each school identified under paragraph (1), the local 
educational agency shall make technical assistance available as the 
school determines why the school's plan failed to bring about increased 
achievement and develop and implement its revised plan. Such technical 
assistance may be provided directly by the local educational agency, 
through mechanisms authorized under section 1117, or by an institution 
of higher education, a private nonprofit organization, an educational 
service agency, Federal technical assistance centers under part D of 
title II of this Act, or other entities with experience in helping 
schools improve achievement.
    ``(5)(A) After providing technical assistance pursuant to paragraph 
(4) and 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) Corrective actions are those listed in the local educational 
agency plan adopted in compliance with State law, which may include 
implementing the State's model opportunity-to-learn standards, 
decreasing decisionmaking authority at the school level, making 
alternative governance arrangements such as the creation of a charter 
school, reconstituting the school staff, authorizing students to 
transfer, including paying transportation costs to other schools in the 
local educational agency, and in the case of schoolwide programs, 
terminating schoolwide status.
    ``(6) The State educational agency shall--
            ``(A) make technical assistance under section 1117 
        available to the schools furthest from meeting the State's 
        standards, if requested by the school or local educational 
        agency; and
            ``(B) if it determines that a local educational agency 
        failed to carry out its responsibility under paragraphs (4) and 
        (5), take such corrective actions, which may include actions in 
        compliance with State law to withhold or transfer funds and 
        authority from schools that are failing to make adequate 
        progress as defined in section 1111(b)(2), as will assure 
        adequate progress for all students.
    ``(7) 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' performance standards 
no longer need to be identified for school improvement.
    ``(d) State Review and Local Educational Agency Improvement.--(1) A 
State educational agency shall--
            ``(A) annually review the progress of each local 
        educational agency receiving funds under this part to determine 
        whether all students in schools receiving assistance under this 
        part are making adequate progress as defined in section 
        1111(b)(2)(A)(ii) or section 1112(b)(2), as appropriate, toward 
        meeting the State's performance standards; and
            ``(B) publicize and disseminate to teachers, parents, 
        students, and the community the results of the State review, 
        including disaggregated results, as required by section 
        1111(b)(3)(G).
    ``(2) In the case of a local educational agency that for three 
consecutive years has a school or schools receiving assistance under 
this part which have exceeded the State's definition of adequate 
progress as defined in section 1111(b)(2)(A)(ii) or section 1112(b)(2), 
as appropriate, the State may make institutional and individual rewards 
of the kinds described for individual schools in subsection 
1117(c)(2)(B).
    ``(3) A State educational agency shall identify for improvement any 
local educational agency that--
            ``(A) for two consecutive years, has a school or schools 
        receiving assistance under this part that are not making 
        adequate progress as defined in section 1111(b)(2)(A)(ii) or 
        section 1112(b)(2), as appropriate, toward meeting the State's 
        performance standards; or
            ``(B) has failed to meet the criteria established by the 
        State through its interim procedure under section 1111(b)(8)(A) 
        for two consecutive years.
    ``(4) 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 its 
schools in meeting the State's performance standards, including 
reviewing the local educational agency's plan in the context of the 
State's model opportunity-to-learn standards, and submit such plan to 
the State educational agency for approval.
    ``(5) For each local educational agency identified under paragraph 
(3), the State educational agency shall--
            ``(A) determine why the local educational agency's plan 
        failed to bring about increased achievement;
            ``(B) provide technical assistance, if requested, as 
        authorized under section 1117 to better enable the local 
        educational agency to develop and implement its revised plan 
        and work with schools needing improvement; and
            ``(C) make available to the local educational agencies 
        furthest from meeting the State's standards, if requested, 
        assistance under section 1117.
Technical assistance under subparagraph (B) 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 education agencies 
improve achievement.
    ``(6)(A) After providing technical assistance pursuant to paragraph 
(5) and 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) Corrective actions are those listed in the State educational 
agency plan adopted in compliance with State law, which may include 
implementing the State's model opportunity-to-learn standards, 
reconstitution of district personnel, 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, removal of particular schools from the jurisdiction of 
the local educational agency and establishment of alternative 
arrangements for governing and supervising such schools, the abolition 
or restructuring of the local educational agency, and the authorizing 
of students to transfer from 1 local educational agency to another.
    ``(7) 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) State Allocations for School Improvement.--From the amount 
appropriated under section 1002(6) 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 sections 
1124, 1124A, and 1125 bears to the total amount allocated to all States 
under such sections, except that each State shall receive at least 
$180,000, or $30,000 in the case of Guam, American Samoa, the Virgin 
Islands, the Northern Marianas, and Palau (until the Compact of Free 
Association goes into effect).

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

    ``(a) System for Support.--(1) Each State educational agency shall 
establish a statewide system of intensive and sustained support and 
improvement for schools receiving funds under this title, including all 
schoolwide programs and all schools in need of program improvement, in 
order to increase the opportunity for all students in such schools to 
meet the State's content and performance standards.
    ``(2) Funds appropriated pursuant to section 1002(6) shall be used 
to meet the requirements of this section. In addition and 
notwithstanding section 1002(1), a State or local educational agency 
may use funds made available under section 1002(1) and other available 
funds to meet such requirements.
    ``(b) Regional Centers.--Such a statewide system shall be linked to 
and receive support and assistance from the regional technical 
assistance centers authorized under part D of title II and the regional 
labs authorized under section 205 of the General Education Provisions 
Act.
    ``(c) Provisions.--The system shall include at a minimum the 
following:
            ``(1) School support teams.--
                    ``(A) Each State, in consultation with local 
                educational agencies, shall establish a system of 
                school support teams to provide information and 
                assistance to each schoolwide program and to assist 
                such program in providing an opportunity to all 
                students to meet the State's performance standards.
                    ``(B) Each such team shall be composed of 
                individuals with experience in successfully improving 
                the educational opportunities for low achieving 
                students, especially individuals identified in 
                paragraph (3), and individuals knowledgeable about 
                research and practice on teaching and learning, 
                including alternative and applied learning, especially 
                for low achieving students.
                    ``(C) A school support team shall work with each 
                school as it develops its schoolwide program plan, 
                review each plan, and make recommendations to the 
                school and the local educational agency.
                    ``(D) During the operation of the schoolwide 
                programs, a school support team shall periodically 
                review the progress of the school in enabling children 
                in the school to meet the State's performance 
                standards, identify problems in the design and 
                operation of the instructional program, and make 
                suggestions for the improvement to the school and the 
                local educational agency.
            ``(2) Distinguished schools.--
                    ``(A) Each State shall designate as a distinguished 
                school any school served under this part which, for 3 
                consecutive years, has exceeded the State's definition 
                of adequate progress as defined in section 1111(b)(2), 
                and, any school in which virtually all students have 
                met the State's advanced performance standards and in 
                which equity in participation and achievement of 
                students by sex has been achieved or significantly 
                improved.
                    ``(B) Schools designated under this paragraph may 
                serve as models and provide support to other schools, 
                especially schoolwide programs and schools in program 
                improvement, to assist such schools in meeting the 
                State's performance standards.
                    ``(C) States shall use funds available under 
                section 1002(6) to allow schools identified under this 
                paragraph to carry out the activities described in 
                subparagraph (B) and may use such funds to provide 
                awards to such schools to further their education 
                programs under this part, provide additional incentives 
                for continued success, and reward individuals or groups 
                in the school for exemplary performance.
                    ``(D) A local educational agency may also recognize 
                the success of a distinguished school by providing 
                additional institutional and individual rewards, such 
                as greater decisionmaking authority at the school 
                building level, increased access to resources or 
                supplemental services such as summer programs that may 
                be used to sustain or increase success, additional 
                professional development opportunities, opportunities 
                to participate in special projects, and individual 
                financial bonuses.
            ``(3) Distinguished educators.--
                    ``(A) In order to provide assistance to schools and 
                local educational agencies identified as needing 
                improvement or schoolwide programs, each State, in 
                consultation with local educational agencies and using 
                funds available under section 1002(6), shall establish 
                a corps of distinguished educators.
                    ``(B) When possible, distinguished educators shall 
                be chosen from schools served under this part that have 
                been especially successful in enabling children to meet 
                or make outstanding progress toward meeting the State's 
                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 furthest from meeting the State's standards 
                and schoolwide programs as they develop and implement 
                their plans, including participation in the support 
                teams described in paragraph (1).
    ``(d) In order to implement this section, funds under section 
1002(6) may be used by a State for release time for teachers and 
administrators, travel, training, and other related costs.
    ``(e) Alternatives.--If a State has devised alternative or 
additional approaches to providing the assistance described in 
paragraphs (1) and (3) of subsection (c), such as providing assistance 
through institutions of higher education and educational service 
agencies or other local consortia, the State may seek approval from the 
Secretary to use funds authorized in section 1002(6) for such 
approaches as part of the State plan.

``SEC. 1118. PARENTAL INVOLVEMENT.

    ``(a) In General.--A local educational agency may receive funds 
under this part only if it implements programs, activities, and 
procedures for the involvement of parents in programs assisted under 
this title. Such activities shall be planned and implemented with 
meaningful consultation with parents of participating children.
    ``(b) Local Educational Agency Policy.--(1) Each local educational 
agency that receives funds under this part shall develop jointly with, 
and make available to, parents of participating children a written 
parental involvement policy that is incorporated into the local 
educational agency's plan developed under section 1112, establishes the 
expectations for parental involvement, and describes how the local 
educational agency will--
            ``(A) involve parents in the development of the plan 
        described under section 1112, and the process of school review 
        and improvement described under section 1116;
            ``(B) provide the coordination, technical assistance, and 
        other support necessary to assist participating schools in 
        planning and implementing effective parent involvement;
            ``(C) build the schools' and parents' capacity for strong 
        parent involvement as described in subsection (f);
            ``(D) coordinate and integrate parental involvement 
        strategies in this part with parental involvement strategies 
        under other programs, including Head Start, Even Start, Parents 
        as Teachers, and State-run preschool programs; and
            ``(E) conduct, with the involvement of parents, an annual 
        evaluation of the content and effectiveness of the parental 
        involvement policy developed under this section in increasing 
        the participation of parents to identify barriers to greater 
        participation by parents in activities authorized by this 
        section, giving particular attention to parents who are 
        economically disadvantaged, are disabled, have limited-English 
        proficiency, have limited literacy, or are of any racial or 
        ethnic minority background and use the findings of such reviews 
        in designing strategies for school improvement.
    ``(2) If the local educational agency has an agency-wide parental 
involvement policy that applies to all parents, it may amend such 
policy, if necessary, to meet the requirements of this subsection.
    ``(3) Each local educational agency shall reserve not less than 1 
percent of its allocation under this part for the purposes of carrying 
out this section, including family literacy and parenting skills.
    ``(c) School Parental Involvement Plan.--(1) Each school served 
under this part shall jointly develop with, and make available to, 
parents of participating children a written parental involvement plan 
that shall be incorporated into the school plan developed under section 
1114 or 1115 and shall describe the means for carrying out the 
requirements of subsections (c) through (f).
    ``(2) If the school has a parental involvement policy that applies 
to all parents, it may amend such policy, if necessary, to meet the 
requirements of this subsection.
    ``(d) Policy Involvement.--Each school served under this part 
shall--
            ``(1) convene an annual meeting, at a convenient time, to 
        which all parents of participating children shall be invited 
        and encouraged to attend, to inform parents of the school's 
        participation under this part and to explain this part, its 
        requirements, and the parent's right to be involved;
            ``(2) involve parents, in an organized, ongoing, and timely 
        way, in the planning, review, and improvement of programs under 
        this part, including the development of the school plan under 
        section 1114 or 1115 or if a school has in place a process for 
        involving parents in the planning and design of its programs, 
        the school may use such process, provided that the process 
        includes an adequate representation of parents of participating 
        children; and
            ``(3) provide parents of participating children--
                    ``(A) timely information about programs under this 
                part;
                    ``(B) school performance profiles required under 
                section 1116(a)(2) and individual student assessment 
                results, including an interpretation of such results, 
                required under section 1111(b)(3);
                    ``(C) opportunities for regular meetings to 
                formulate suggestions, if such parents so desire; and
                    ``(D) timely responses to parents' recommendations.
    ``(e) Shared Responsibilities for High Student Performance.--As a 
component of the school-level parental involvement plan developed under 
subsection (b), each school served under this part shall jointly 
develop with parents for all children a school-parent compact that 
outlines how parents, the entire school staff, and students will share 
the responsibility for improved student achievement and the means by 
which the school and parents will build and develop a partnership to 
help children achieve the State's high standards. Such compact shall--
            ``(1) describe the school's responsibility to provide high-
        quality curriculum and instruction in a supportive and 
        effective learning environment that enable the children to meet 
        the State's challenging performance standards, and the ways in 
        which each parent will be responsible for supporting his or her 
        children's learning, including monitoring attendance, homework 
        completion, television watching, and positive use of 
        extracurricular time; and
            ``(2) address the importance of communication between 
        teachers and parents on an ongoing basis through at a minimum--
                    ``(A) parent-teacher conferences in elementary 
                schools, at least annually, during which the compact 
                shall be discussed as it relates to the individual 
                child's achievement;
                    ``(B) frequent reports to parents on their 
                children's progress; and
                    ``(C) reasonable access to staff and observation of 
                classroom activities.
    ``(f) Building Capacity for Involvement.--To ensure effective 
involvement of parents and to support a partnership among the school, 
parents, and the community to improve student achievement, each school 
and local educational agency--
            ``(1) shall provide assistance to participating parents in 
        such areas as understanding the National Education Goals, the 
        State's content and performance standards, opportunity-to-learn 
        standards, 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;
            ``(2) shall provide materials and training, including--
                    ``(A) coordinating necessary literacy training from 
                other sources to help parents work with their children 
                to improve their children's achievement;
                    ``(B) training to enable parents to work more 
                effectively with teachers, schools, and school systems; 
                and
                    ``(C) in the case of a school using funds under 
                this part to operate a preschool program, opportunities 
                for parents to learn about child development and child 
                rearing issues beginning at birth;
            ``(3) shall educate teachers, principals, and other staff 
        in the value and utility of contributions of parents, and in 
        how to reach out to, communicate with, and work with parents as 
        equal partners, implement and coordinate parent programs, and 
        build ties between home and school;
            ``(4) shall develop appropriate roles for community-based 
        organizations and businesses in parent involvement activities, 
        including providing information about opportunities for them to 
        work with parents and schools, and encouraging the formation of 
        partnerships between elementary, middle, and secondary schools 
        and local businesses that include a role for parents;
            ``(5) shall ensure, to the extent possible, that 
        information related to school and parent programs, meetings, 
        and other activities is sent to the homes of participating 
        children in the language used in such homes;
            ``(6) shall involve parents in the development of training 
        for teachers, principals, and other educators for the purpose 
        of improving the effectiveness of such training in improving 
        instruction and services to the children of such parents;
            ``(7) may provide necessary literacy training from funds 
        received under this part if the local educational agency has 
        exhausted all other reasonably available sources of funding for 
        such activities;
            ``(8) may pay reasonable and necessary expenses associated 
        with local parental involvement activities, including 
        transportation and child care costs to enable parents to 
        participate in school-related meetings and training sessions;
            ``(9) may coordinate and integrate parent involvement 
        programs and activities with Head Start, Even Start, Parents as 
        Teachers, and State-run preschool programs;
            ``(10) may train and support parents to enhance the 
        involvement of other parents;
            ``(11) may arrange meetings at a variety of times, such as 
        in the mornings and evenings in order to maximize opportunities 
        of parents to participate in school related activities;
            ``(12) may arrange for teachers or other educators, who 
        work directly with participating children, to conduct in-home 
        conferences with parents who are unable to attend such 
        conferences at school; and
            ``(13) may adopt and implement model approaches to 
        improving parental involvement such as Even Start.
    ``(g) Accessibility.--In carrying out the parental involvement 
requirements of this part, local educational agencies and schools 
shall, to the extent practicable, ensure that parents of limited-
English proficient children or disabled children are afforded the same 
access to parental involvement opportunities as their children are 
afforded to other programs funded under this part, including the 
provision of information in a language and form that the parents of 
such children can understand.

``SEC. 1119. PROFESSIONAL DEVELOPMENT.

    ``(a) Program Requirements.--(1) Local educational agencies 
receiving assistance under this part shall provide high-quality, 
sustained professional development that will improve the teaching of 
the core academic subjects, consistent with the State content 
standards, in order to enable all children to meet the State's 
performance standards.
    ``(2) Professional development activities shall be designed by 
teachers and other school staff in schools receiving assistance under 
this part.
    ``(b) Professional Development Activities.--
            ``(1) Professional development activities shall--
                    ``(A) support instructional practices that are 
                geared to challenging State content standards and 
                create a school environment conducive to high 
                achievement in the core academic subjects;
                    ``(B) support local educational agency plans under 
                section 1112 and school plans under sections 1114 and 
                1115;
                    ``(C) draw on resources available under this part, 
                title III of the Goals 2000: Educate American Act, part 
                A of title II of this Act, and from other sources;
                    ``(D) where appropriate, include strategies for 
                developing curricula and teaching methods that 
                integrate academic and vocational instruction 
                (including applied learning and team teaching 
                strategies); and
                    ``(E) include strategies for identifying and 
                eliminating gender and racial bias in instructional 
                materials, methods, and practices.
            ``(2) Professional development activities may include--
                    ``(A) instruction in the use of assessments;
                    ``(B) instruction in ways that teachers, 
                principals, and school administrators may work more 
                effectively with parents;
                    ``(C) the forming of partnerships with institutions 
                of higher education to establish school-based teacher 
                training programs that provide prospective teachers and 
                novice teachers with an opportunity to work under the 
                guidance of experienced teachers and college faculty;
                    ``(D) instruction in the use of technology;
                    ``(E) the creation of career ladder programs for 
                paraprofessionals (assisting teachers under this part) 
                to obtain the education necessary for them to become 
                licensed and certified teachers;
                    ``(F) instruction in ways to teach special needs 
                children;
                    ``(G) instruction in gender-equitable education 
                methods, techniques, and practices;
                    ``(H) joint professional development activities 
                involving programs under this part, Head Start, Even 
                Start, or State-run preschool program personnel; and
                    ``(I) instruction in experiential-based teaching 
                methods such as service learning.
    ``(c) Program Requirements.--Programs should be designed so that--
            ``(1) all school staff in schoolwide program schools can 
        participate in professional development activities;
            ``(2) all school staff in targeted assistance schools may 
        participate in professional development activities if such 
        participation will result in better addressing the needs of 
        students served under this part.
    ``(d) Parental Participation.--Parents may participate in 
professional development activities under this part if the school 
determines that parental participation would be appropriate.
    ``(e) Consortia.--In carrying out such professional development 
programs, local educational agencies may provide such services through 
consortia arrangements with other local educational agencies, 
educational service agencies or other local consortia, institutions of 
higher education or other public or private institutions or 
organizations.
    ``(f) Effective Teaching Strategies.--Knowledge of effective 
teaching strategies that is gained through professional development 
activities under this section may be shared with teachers who are not 
participating in schoolwide or targeted assistance programs under this 
part.
    ``(g) Combinations of Funds.--Funds provided under this part that 
are used for professional development purposes may be combined with 
funds provided under part A of title II of this Act, title III of the 
Goals 2000: Educate America Act, and other sources.
    ``(h)(1) The State educational agency shall review the local 
educational agency's plan to determine if such agency's professional 
development activities--
            ``(A) are tied to challenging State student content and 
        performance standards;
            ``(B) reflect recent research on teaching and learning;
            ``(C) are of sufficient intensity and duration to have a 
        positive impact on the teacher's performance in the classroom;
            ``(D) are part of the everyday activities of the school and 
        create an orientation toward continuous improvement in the 
        classroom or throughout the school;
            ``(E) include methods to teach children with special needs;
            ``(F) are developed with the extensive participation of 
        teachers; and
            ``(G) include gender-equitable education methods, 
        techniques, and practices.
    ``(2) If a local educational agency's plan for professional 
development does not meet such criteria, the State educational agency 
shall assist such local educational agencies in making progress toward 
inclusion of such elements in the local educational agency's 
professional development activities.
    ``(i) Instructional Aides.--(1) If a local educational agency uses 
funds received under this part to employ instructional aides, the local 
educational agency shall ensure that such aides--
            ``(A) possess the knowledge and skills sufficient to assist 
        participating children in meeting the educational goals of this 
        part;
            ``(B)(i) have a high school diploma, a General Education 
        Development certificate, or earn either within 2 years of 
        employment, except that
            ``(ii) a local educational agency may employ an 
        instructional aide that does not meet the requirement in clause 
        (i) if such aide possesses proficiency in a language other than 
        English that is needed to enhance the participation of children 
        in programs under this part; and
            ``(C) are under the direct supervision of a teacher who has 
        primary responsibility for providing instructional services to 
        eligible children.
    ``(2) Local educational agencies receiving funds under this part 
shall include instructional aides in professional development 
activities.

``SEC. 1120. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    ``(a) General Requirement.--(1) To the extent consistent with the 
number of eligible children identified under section 1115(b) in a local 
educational agency who are enrolled in private elementary and secondary 
schools, a local educational agency shall, after timely and meaningful 
consultation with appropriate private school officials, provide such 
children, on an equitable basis, special educational services or other 
benefits under this part (such as dual enrollment, educational radio 
and television, computer equipment and materials, other technology, and 
mobile educational services and equipment).
    ``(2) The educational services or other benefits, including 
materials and equipment, must be secular, neutral, and nonideological.
    ``(3) Educational services and other benefits for such private 
school children shall be equitable in comparison to services and other 
benefits for public school children participating under this part.
    ``(4) Expenditures for educational services and other benefits to 
eligible private school children shall be equal to the proportion of 
funds allocated to participating school attendance areas based on the 
number of children from low-income families who attend private schools.
    ``(5) The local educational agency may provide such services 
directly or through contracts with public and private agencies, 
organizations, and institutions.
    ``(b) Public Control of Funds.--(1) The control of funds provided 
under this part, and title to materials, equipment, and property 
purchased with such funds, shall be in a public agency, and a public 
agency shall administer such funds and property.
    ``(2)(A) The provision of services under this section shall be 
provided--
            ``(i) by employees of a public agency; or
            ``(ii) through contract by such public agency with an 
        individual, association, agency, or organization.
    ``(B) In the provision of such services, such employee, person, 
association, agency, or organization shall be independent of such 
private school and of any religious organization, and such employment 
or contract shall be under the control and supervision of such public 
agency.
    ``(c) Standards for a Bypass.--If a local educational agency is 
prohibited by law from providing for the participation on an equitable 
basis of eligible children enrolled in private elementary and secondary 
schools or if the Secretary determines that a local educational agency 
has substantially failed or is unwilling to provide for such 
participation, as required by this section, the Secretary shall--
            ``(1) waive the requirements of this section for such local 
        educational agency; and
            ``(2) arrange for the provision of services to such 
        children through arrangements that shall be subject to the 
        requirements of this section and sections 9505 and 9506 of this 
        Act.
    ``(d) Capital Expenses.--(1)(A) From the amount appropriated for 
this subsection under section 1002(5) for any fiscal year, each State 
is eligible to receive an amount that bears the same ratio to the 
amount so appropriated as the number of private school children who 
received services under this part in the State in the most recent year 
for which data satisfactory to the Secretary are available bears to the 
number of such children in all States in that same year.
    ``(B) The Secretary shall reallocate any amounts allocated under 
subparagraph (A) that are not used by a State for the purpose of this 
subsection to other States on the basis of their respective needs, as 
determined by the Secretary.
    ``(2)(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 to 
local educational agencies based on the degree of need set forth in 
their respective applications.
    ``(3) 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) For the purpose of this subsection, the term `capital 
expenses' is limited to--
            ``(A) expenditures for noninstructional goods and services, 
        such as the purchase, lease, or renovation of real and personal 
        property, including, but not limited to, mobile educational 
        units and leasing of neutral sites or spaces;
            ``(B) insurance and maintenance costs;
            ``(C) transportation; and
            ``(D) other comparable goods and services.

``SEC. 1121. 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 9501 of this 
Act, including such effort for professional development activities.
    ``(b) Federal Funds To Supplement, Not Supplant, Non-Federal 
Funds.--(1)(A) Except as provided in subparagraph (B), a State or local 
educational agency shall use funds received under this part only to 
supplement the amount of funds that would, in the absence of such 
Federal funds, be made available from non-Federal sources for the 
education of pupils participating in programs assisted under this part, 
and not to supplant such funds.
    ``(B) For the purpose of complying with subparagraph (A), a State 
or local educational agency may exclude supplemental State and local 
funds expended in any eligible school attendance area or school for 
programs that meet the requirements of section 1114 or 1115.
    ``(2) No local educational agency shall be required to provide 
services under this part through a particular instructional method or 
in a particular instructional setting in order to demonstrate its 
compliance with paragraph (1).
    ``(c) Comparability of Services.--(1)(A) Except as provided in 
paragraphs (4) and (5), a local educational agency may receive funds 
under this part only if State and local funds will be used in schools 
served under this part to provide services that, taken as a whole, are 
at least comparable to services in schools that are not receiving funds 
under this part.
    ``(B) If the local educational agency is serving all of its schools 
under this part, such agency may receive funds under this part only if 
it will use State and local funds to provide services that, taken as a 
whole, are substantially comparable in each school.
    ``(C) A local educational agency may meet the requirements of 
subparagraphs (A) and (B) on a grade-span by grade-span basis or a 
school-by-school basis.
    ``(2)(A) To meet the requirements of paragraph (1), a local 
educational agency shall demonstrate that--
            ``(i) expenditures per pupil from State and local funds in 
        each school served under this part are equal to or greater than 
        the average expenditures per pupil in schools not receiving 
        services under this part; or
            ``(ii) instructional basic salaries per pupil from State 
        and local funds in each school served under this part are equal 
        or greater than the average instructional salaries per pupil in 
        schools not receiving services.
    ``(B) For the purpose of subparagraph (A), in the determination of 
expenditures per pupil from State and local funds or instructional 
salaries per pupil from State and local funds, staff salary 
differentials for years of employment shall not be included.
    ``(C) A local educational agency need not include unpredictable 
changes in student enrollment or personnel assignments that occur after 
the beginning of a school year in determining comparability of services 
under this subsection.
    ``(3) Each local educational agency shall--
            ``(A) develop procedures for compliance with this 
        subsection; and
            ``(B) maintain records that are updated biennially 
        documenting its compliance.
    ``(4) This subsection shall not apply to a local educational agency 
that does not have more than one building for each grade span.
    ``(5) For the purpose of determining compliance with paragraph (1), 
a local educational agency may exclude State and local funds expended 
for--
            ``(A) bilingual education for children of limited English 
        proficiency; and
            ``(B) excess costs of providing services to children with 
        disabilities.

                        ``Subpart 2--Allocations

``SEC. 1122. 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 (b).
    ``(b) Allotment to the Secretary of the Interior.--
            ``(1) 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) 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 of 
        Education 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. 1123. ALLOCATIONS TO STATES.

    ``(a) General.--For each fiscal year, an amount of the 
appropriations for this part equal to the appropriation for fiscal year 
1994 for part A of chapter 1, title I, Elementary and Secondary 
Education Act, shall be allocated in accordance with sections 1124 and 
1124A. Any additional appropriations for this part for any fiscal year, 
after application of the preceding sentence, shall be allocated in 
accordance with section 1125.
    ``(b) Adjustments Where Necessitated by Appropriations.--
            ``(1) 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) 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.--Notwithstanding subsection (b), the 
total amount made available to each local educational agency under each 
of sections 1124 and 1125 for any fiscal year shall be at least 85 
percent of the total amount such local educational agency was allocated 
under such sections (or, for fiscal year 1995, their predecessor 
authorities) for the preceding fiscal year.
    ``(d) Definition.--For the purpose of this section and sections 
1124 and 1125, the term State means each of the 50 States, the District 
of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Amount of Grants.--
            ``(1) Grants for local educational agencies and puerto 
        rico.--
                    ``(A) 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 (i) 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 
                (ii) 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. 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 
                population of fewer than 20,000 persons, the State 
                education agency may either (I) distribute to such 
                local educational agencies grants under this section 
                equal to the amounts determined by the Secretary; or 
                (II) use an alternative method, approved by the 
                Secretary, to distribute the share of the State's total 
                grants under this section that is based on local 
                educational agencies with total populations of fewer 
                than 20,000 persons. Such an alternative method of 
                distributing grants under this section among a State's 
                local educational agencies serving areas with total 
                populations of fewer than 20,000 persons shall be based 
                upon population data that the State education 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 it may appeal this determination 
                to the Secretary. The Secretary must respond to this 
                appeal within 45 days of receipt. The Secretary shall 
                consult with the Secretary of Commerce regarding 
                whether available data on population for local 
                educational agencies serving areas with total 
                populations of fewer than 20,000 persons are 
                sufficiently reliable to be used to determine final 
                grants to such areas.
                    ``(B) If, and only if, there are portions of any of 
                the States for which the Department of Commerce has not 
                prepared data on the number of children, aged 5-17, 
                from families below the poverty level for local 
                educational agencies, then the Secretary shall use such 
                data compiled for counties in those portions of the 
                States, treating the counties as if they were local 
                educational agencies. In such cases, subject to section 
                1126, the grant for any local educational agency in 
                such an area of a State shall be determined on the 
                basis of the aggregate amount of such grants for all 
                such agencies in the county or counties in which the 
                school district of the particular agency is located, 
                which aggregate amount shall be equal to the aggregate 
                amount determined under subparagraph (A) for such 
                county or counties, and shall be allocated among those 
                agencies upon such equitable basis as may be determined 
                by the State educational agency in accordance with 
                basic criteria prescribed by the Secretary.
                    ``(C) 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 subpart 
                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--
                            ``(i) the percentage determined under the 
                        preceding sentence; and
                            ``(ii) 32 percent of the average per pupil 
                        expenditure in the United States.
            ``(2) 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.--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.
    ``(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)(A),
                    ``(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 (2)(B), 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) or attending community day programs for such 
                children, but not counted pursuant to subpart 3 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.--
                    ``(A) 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 
                available from the Department of Commerce for local 
                educational agencies (as produced and published under 
                section 181a of title 13, United States Code). If, and 
                only if, there are portions of any of the States for 
                which the Department of Commerce has not prepared data 
                on the number of children, aged 5-17, from families 
                below the poverty level for local educational agencies, 
                then the Secretary shall use such data compiled for 
                counties in those portions of the States, treating the 
                counties as if they were local educational agencies. 
                The District of Columbia and the Commonwealth of Puerto 
                Rico shall be treated as individual local educational 
                agencies. If a local educational agency contains two or 
                more counties in their entirety, then each county will 
                be treated as if it 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 
                shall distribute to schools in each county within it 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. If the Department of 
                Commerce has updated data on the number of children, 
                aged 5-17, from families below the poverty level for 
                local educational agencies, then the Secretary shall 
                use the updated data. 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.
                    ``(B) 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 the program of 
                aid to families with dependent children under a State 
                plan approved under 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.
                    ``(C) 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.--
            ``(1) The aggregate amount allotted for all local 
        educational agencies within a State may not be less than one-
        quarter of 1 percent of the total amount available for such 
        fiscal year under this section.
            ``(2)(A) No State shall, by reason of the application of 
        the provisions of paragraph (1) of this subsection, be allotted 
        more than--
                    ``(i) 150 percent of the amount that the State 
                received in the fiscal year preceding the fiscal year 
                for which the determination is made, or
                    ``(ii) the amount calculated under subparagraph 
                (B), whichever is less.
            ``(B) For the purpose of subparagraph (A)(ii), the amount 
        for each State equals--
                    ``(i) the number of children in such State counted 
                under subsection (c) in the fiscal year specified in 
                subparagraph (A), multiplied by
                    ``(ii) 150 percent of the national average per 
                pupil payment made with funds available under this 
                section for that year.
            ``(3) However, no State may receive less under this section 
        for fiscal years 1995 and 1996 than it received the preceding 
        year, or fiscal year 1993, whichever is greater, as a result of 
        application of paragraph (2).

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

    ``(a) Eligibility for and Amount of Grants.--
            ``(1)(A) Except as otherwise provided in this paragraph, 
        each local educational agency, in a State other than Guam, 
        American Samoa, the Virgin Islands, the Northern Mariana 
        Islands, and Palau, which is eligible for a grant under this 
        part for any fiscal year shall be entitled to an additional 
        grant under this section for that fiscal year if--
                    ``(i) the number of children counted under section 
                1124(c) of this part in the local educational agency 
                for the preceding 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 five to seventeen, inclusive, in the 
                local educational agency in that fiscal year.
            ``(B) Except as provided in subparagraph (C), no State 
        described in subparagraph (A) shall receive less than--
                    ``(i) one-quarter of 1 percent of the sums 
                appropriated under paragraph (6) of this section for 
                such fiscal year; or
                    ``(ii) $250,000, whichever is higher.
            ``(C) No State shall, by reason of the application of the 
        provisions of subparagraph (B)(i) of this paragraph, be 
        allotted more than--
                    ``(i) 150 percent of the amount that the State 
                received in the fiscal year preceding the fiscal year 
                for which the determination is made, or
                    ``(ii) the amount calculated under subparagraph 
                (D), whichever is less.
            ``(D) For the purpose of subparagraph (C), the amount for 
        each State equals--
                    ``(i) the number of children in such State counted 
                for purposes of this section in the fiscal year 
                specified in subparagraph (B), multiplied by
                    ``(ii) 150 percent of the national average per 
                pupil payment made with funds available under this 
                section for that year.
            ``(2) For each 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 greater of--
                            ``(i) the number of children in excess of 
                        6,500 counted under section 1124(c) for the 
                        preceding fiscal year, in a local educational 
                        agency which qualifies on the basis of 
                        subparagraph (A)(i) of paragraph (1); or
                            ``(ii) the number of children counted under 
                        section 1124(c) for the preceding fiscal year 
                        in a local educational agency which qualifies 
                        on the basis of subparagraph (A)(ii) of 
                        paragraph (1); 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 the preceding fiscal year.
            ``(3) The amount of the additional grant to which an 
        eligible local educational agency is entitled under this 
        section for any fiscal year shall be an amount which bears the 
        same ratio to the amount reserved under paragraph (6) 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) For the purposes of this section, the Secretary shall 
        determine the number of children counted under section 1124(c) 
        for any local educational agency, and the total number of 
        children aged five to seventeen, inclusive, in local 
        educational agencies, on the basis of the most recent 
        satisfactory data available at the time the payment for such 
        local educational agency is determined under section 1124.
            ``(5)(A) 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 
        education agency may either (i) distribute to such local 
        educational agencies grants under this section equal to the 
        amounts determined by the Secretary; or (ii) use an alternative 
        method, approved by the Secretary, to distribute the share of 
        the State's total grants under this section that is based on 
        local educational agencies with total populations of fewer than 
        20,000 persons. Such an alternative method of distributing 
        grants under this section among a State's local educational 
        agencies serving areas with total populations of fewer than 
        20,000 persons shall be based upon population data that the 
        State education agency determines best reflects the current 
        distribution of children in poor families among the State's 
        local educational agencies serving areas with total populations 
        of fewer than 20,000 persons and meeting the eligibility 
        criteria of paragraph (1)(A). If a local educational agency 
        serving an area with total population of less than 20,000 
        persons is dissatisfied with the determination of its grant by 
        the State education agency, then it may appeal this 
        determination to the Secretary. The Secretary must respond to 
        this appeal within 45 days of receipt. The Secretary shall 
        consult with the Secretary of Commerce regarding whether 
        available data on population for local educational agencies 
        serving areas with total populations of fewer than 20,000 
        persons are sufficiently reliable to be used to determine final 
        grants to such areas meeting the eligibility criteria of 
        paragraph (1)(A).
            ``(B) If, and only if, there are portions of any of the 
        States for which the Department of Commerce has not prepared 
        data on the number of children, aged 5-17, from families below 
        the poverty level for local educational agencies, then the 
        Secretary shall use such data compiled for counties in those 
        portions of the States, treating the counties as if they were 
        local educational agencies. In such cases, subject to section 
        1126, the grant for any local educational agency in such an 
        area of a State shall be determined on the basis of the 
        aggregate amount of such grants for all such agencies in the 
        county or counties in which the school district of the 
        particular agency is located, which aggregate amount shall be 
        equal to the aggregate amount determined under subparagraph (A) 
        for such county or counties, and shall be allocated among those 
        agencies upon such equitable basis as may be determined by the 
        State educational agency in accordance with the basic criteria 
        prescribed by the Secretary.
    ``(b) Reservation of Funds.--Of the total amount of funds available 
for sections 1124 and 1125A, 10 percent of the amount appropriated for 
that fiscal year 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 entitled to receive under subsection (a) for such fiscal 
year, the maximum amounts which all States are entitled to receive 
under subsection (a) for such fiscal year shall be ratably reduced. In 
case 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.

``SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Eligibility of Local Educational Agencies.--A local 
educational agency in a State is eligible to receive a targeted grant 
under this section for any fiscal year if the number of children in the 
local educational agency under subsection 1124(c), before application 
of the weighting factor, is at least 10.
    ``(b) Grants for Local Educational Agencies, the District of 
Columbia, and Puerto Rico.--(1) 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 number of children counted under subsection (c); 
        and
            ``(B) the amount in the second sentence of subparagraph 
        1124(a)(1)(A).
    ``(2) 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)(1)(C).
    ``(c) Children To Be Counted.--
            ``(1) Categories of children.--The number of children to be 
        counted for purposes of this section shall be the number 
        counted in subsection 1124(c) multiplied by the weighting 
        factor for the local educational agency. The weighting factor 
        shall be established on the basis of the percentage that the 
        number of children counted under section 1124(c) represents of 
        the total population aged 5-17 years in the local educational 
        agency or the number of such children. Weighted pupil counts 
        will be calculated based upon both percentage and number and 
        the larger of the two counts will be used in calculating grants 
        for each local educational agency. Weighting factors shall be 
        assigned according to the following scale: if the percentage is 
        greater than 0 but less than 14.265, the weighting factor shall 
        be 1.00 for all children counted in section 1124(c); if the 
        percentage is greater than 14.265 but less than 21.553, the 
        weighting factor shall be 1.00 for a number of children counted 
        in section 1124(c) equal to 14.265 percent of the total school 
        age population and 1.50 for children counted under section 
        1124(c) in excess of 14.265 percent of the total school age 
        population; if the percentage is greater than 21.553 percent 
        but less than 29.223 percent, then the weighting factor shall 
        be 1.00 for a number of children counted in section 1124(c) 
        equal to 14.265 percent of the total school age population, 
        1.50 for a number of children counted under section 1124(c) 
        equal to 7.288 percent of the total school age population, and 
        2.00 for children counted under section 1124(c) in excess of 
        21.553 percent of the total school age population; if the 
        percentage is greater than 29.223 percent but less than 36.538 
        percent, then the weighting factor shall be 1.00 for a number 
        of children counted in section 1124(c) equal to 14.265 percent 
        of the total school age population, 1.50 for a number of 
        children counted under section 1124(c) equal to 7.288 percent 
        of the total school age population, 2.00 for a number of 
        children counted under section 1124(c) equal to 7.67 percent of 
        the total school age population, and 2.50 for children counted 
        under section 1124(c) in excess of 29.223 percent of the total 
        school age population; and if the percentage is greater than 
        36.538, then the weighting factor shall be 1.00 for a number of 
        children counted in section 1124(c) equal to 14.265 percent of 
        the total school age population, 1.50 for a number of children 
        counted under section 1124(c) equal to 7.288 percent of the 
        total school age population, 2.00 for a number of children 
        counted under section 1124(c) equal to 7.67 percent of the 
        total school age population, 2.50 for a number of children 
        counted in section 1124(c) equal to 7.315 percent of the total 
        school age population, and 3.00 for children counted in section 
        1124(c) in excess of 36.538 percent of the total school age 
        population. Separately, if the number of children counted under 
        section 1124(c) is greater than 0 but less than 575, the 
        weighting factor shall be 1.00 for all children counted in 
        section 1124(c); if the number is greater than 575 but less 
        than 1,870, the weighting factor shall be 1.00 for a number of 
        children counted in section 1124(c) equal to 575, and 1.50 for 
        children counted under section 1124(c) in excess of 575; if the 
        number is greater than 1,870 but less than 6,910, then the 
        weighting factor shall be 1.00 for a number of children counted 
        in section 1124(c) equal to 575, 1.50 for a number of children 
        counted under section 1124(c) equal to 1,295, and 2.00 for 
        children counted under section 1124(c) in excess of 1,870; if 
        the number is greater than 6,910 but less than 42,000 then the 
        weighting factor shall be 1.00 for a number of children counted 
        in section 1124(c) equal to 575, 1.50 for a number of children 
        counted under section 1124(c) equal to 1,295, 2.00 for a number 
        of children counted under section 1124(c) equal to 5,040, and 
        2.50 for children counted under section 1124(c) in excess of 
        6,910; and if the number is greater than 42,000, then the 
        weighting factor shall be 1.00 for a number of children counted 
        in section 1124(c) equal to 575, 1.50 for a number of children 
        counted under section 1124(c) equal to 1,295, 2.00 for a number 
        of children counted under section 1124(c) equal to 5,040, 2.50 
        for a number of children counted in section 1124(c) equal to 
        35,090 and 3.00 for children counted in section 1124(c) in 
        excess of 42,000. For the Commonwealth of Puerto Rico, the 
        weighting factor shall be no greater than 1.62.
    ``(d) Local Educational Agency Allocations.--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 
education agency may either (1) distribute to such local educational 
agencies grants under this section equal to the amounts determined by 
the Secretary; or (2) use an alternative method, approved by the 
Secretary, to distribute the share of the State's total grants under 
this section that is based on local educational agencies with total 
populations of fewer than 20,000 persons. Such an alternative method of 
distributing grants under this section among a State's local 
educational agencies serving areas with total populations of fewer than 
20,000 persons shall be based upon population data that the State 
education 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 education agency, then it may appeal this determination to 
the Secretary. The Secretary must respond to this appeal within 45 days 
of receipt. If, and only if, there are portions of any of the States 
for which the Department of Commerce has not prepared data on the 
number of children, aged 5-17, from families below the poverty level 
for local educational agencies, then the Secretary shall use such data 
compiled for counties in those portions of the States, treating the 
counties as if they were local educational agencies. The Secretary 
shall consult with the Secretary of Commerce regarding whether 
available data on population for local educational agencies serving 
areas with total populations of fewer than 20,000 persons are 
sufficiently reliable to be used to determine final grants to such 
areas.
    ``(e) State Minimum.--Notwithstanding any other provision of this 
section, 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) one quarter of one percent of such amount;
            ``(2) 150 percent of the national average grant under this 
        section per child described in section 1124(c), without 
        application of a weighting factor, multiplied by the State's 
        total number of children described in section 1124(c), without 
        application of a weighting factor.

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

    ``(a) Allocations for Neglected or Delinquent Children.--(1) 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 subparagraph 1124(c)(1)(C), the 
State educational agency shall, if it 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) 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 between and among the affected local educational 
agencies when--
            ``(1) two or more local educational agencies serve, in 
        whole or in part, the same geographical area; or
            ``(2) a local educational agency provides free public 
        education for children who reside in the school district of 
        another local educational agency.
    ``(c) Reallocation.--If a State educational agency determines that 
the amount of a grant a local educational agency would receive under 
sections 1124, 1124A, and 1125 is more than such local agency will use, 
the State educational agency shall make the excess amount available to 
other local educational agencies in the State that need additional 
funds in accordance with criteria established by the State educational 
agency.

``SEC. 1127. CARRYOVER AND WAIVER.

    ``(a) Limitation on Carryover.--Notwithstanding section 412 of the 
General Education Provisions Act or any other provision of law, not 
more than 15 percent of the funds allocated to a local educational 
agency for any fiscal year under this subpart (but not including funds 
received through any reallocation under this subpart) may remain 
available for obligation by such agency for one additional fiscal year.
    ``(b) Waiver.--A State educational agency may, once every three 
years, waive the percentage limitation in subsection (a) if--
            ``(1) the agency determines that the request of a local 
        educational agency is reasonable and necessary; or
            ``(2) supplemental appropriations for this subpart become 
        available.
    ``(c) Exclusion.--The percentage limitation under subsection (a) 
shall not apply to any local educational agency that receives less than 
$50,000 under this subpart for any fiscal year.

                ``Subpart 3--Presidential Awards Program

``SEC. 1131. PRESIDENTIAL AWARDS PROGRAM.

    ``(a) Development.--The Secretary may develop a Presidential awards 
program that will recognize the person or corporation producing the 
best education game of the year.
    ``(b) Nominations.--Games recognized under this program shall be 
selected by the Secretary from a list of nominees or applicants 
submitted by a panel of experts who convene annually at the request of 
the Secretary.
    ``(c) Selection.--The Secretary shall annually convene a panel of 
experts who will review nominations and applicants in selecting 
recipients who will receive awards under this section. Games selected 
for awards under this section may be eligible to receive other awards.

             ``PART B--EVEN START FAMILY LITERACY PROGRAMS

``SEC. 1201. STATEMENT OF PURPOSE.

    ``It is the purpose of this part 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', 
that is implemented through cooperative projects that build on existing 
community resources to create a new range of services, that promotes 
achievement of the National Education Goals, and that assists children 
and adults from low-income families to achieve challenging State 
standards.

``SEC. 1202. PROGRAM AUTHORIZED.

    ``(a) Reservation for Migrant Programs, Outlying Areas, Indian 
Tribes, and Other Purposes.--(1) In each fiscal year, the Secretary 
shall reserve not less than 5 percent of the amount appropriated under 
section 1002(b) of this title for programs, under such terms and 
conditions as the Secretary shall establish, that are consistent with 
the purpose of this part, and according to their relative needs, for--
            ``(A) children of migratory workers;
            ``(B) the outlying areas; and
            ``(C) Indian tribes and tribal organizations.
    ``(2) If the amount of funds made available under subsection (a) 
exceeds $4,600,000, the Secretary shall make a grant of sufficient size 
and for a period of sufficient duration to demonstrate the 
effectiveness of a family literacy program in a prison that houses 
women and their preschool age children and that has the capability of 
developing a program of high quality.
    ``(b) Reservation for Federal Activities.--From amounts 
appropriated under section 1002(b), the Secretary may reserve not more 
than three percent of such amounts or the amount reserved for such 
purposes in the fiscal year 1994, whichever is greater, for purposes 
of--
            ``(1) carrying out the evaluation required by section 1209; 
        and
            ``(2) providing, through grants or contracts, technical 
        assistance, program improvement, and replication activities 
        through eligible organizations.
    ``(c) State Allocation.--(1) After reserving funds under 
subsections (a) and (b), the Secretary shall allocate the remaining 
funds appropriated for this part to States, to be used in accordance 
with section 1203.
    ``(2) Except as provided in paragraph (3), from the total amount 
available for allocation to States in any fiscal year, each State shall 
be eligible to receive a grant under paragraph (1) in an amount that 
bears the same ratio to such total amount as the amount allocated to 
such State under section 1122 of this title bears to the total amount 
allocated under that section to all the States.
    ``(3) No State shall receive less than $250,000 under paragraph (1) 
for any fiscal year.
    ``(d) Definitions.--For the purpose of this part--
            ``(1) the term `eligible entity' means a partnership 
        composed of both--
                    ``(A) a local educational agency; and
                    ``(B) a nonprofit community-based organization, 
                public agency, institution of higher education, or 
                other public or private nonprofit organization of 
                demonstrated quality;
            ``(2) the terms `Indian tribe' and `tribal organization' 
        have the meanings given such terms in section 4 of the Indian 
        Self-Determination and Education Assistance Act;
            ``(3) the term `State' includes each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico; and
            ``(4) the term `eligible organization' means any public or 
        private nonprofit organization with a record of providing 
        effective services to family literacy providers, such as the 
        National Center for Family Literacy, Parents as Teachers, Inc., 
        and the Home Instruction Program for Preschool Youngsters.

``SEC. 1203. STATE PROGRAMS.

    ``(a) State-Level Activities.--Each State that receives a grant 
under section 1202(c)(1) may use not more than 5 percent for--
            ``(1) administrative costs; and
            ``(2) the provision, through one or more subgrants or 
        contracts, of access to technical assistance for program 
        improvement and replication to eligible entities that receive 
        subgrants under subsection (b).
    ``(b) Subgrants for Local Programs.--(1) Each State shall use the 
remainder of its grant to make subgrants to eligible entities to carry 
out Even Start programs.
    ``(2) No State shall award a subgrant under paragraph (1) for an 
amount less than $75,000.

``SEC. 1204. USES OF FUNDS.

    ``(a) In General.--In carrying out an Even Start program under this 
part, a recipient of funds under this part shall use such funds to pay 
the Federal share of the cost of providing family-centered education 
programs that involve parents and children, from birth through age 7, 
in a cooperative effort to help parents become full partners in the 
education of their children and to assist children in reaching their 
full potential as learners.
    ``(b) Federal Share Limitation.--(1)(A) Except as provided in 
paragraph (2), the Federal share under this part may not exceed--
            ``(i) 90 percent of the total cost of the program in the 
        first year that that program receives assistance under this 
        part or its predecessor authority;
            ``(ii) 80 percent in the second such year;
            ``(iii) 70 percent in the third such year;
            ``(iv) 60 percent in the fourth such year; and
            ``(v) 50 percent in any subsequent such year.
    ``(B) The remaining cost of a program under this part may be 
provided in cash or in kind, fairly evaluated, and may be obtained from 
any source other than funds received under this title.
    ``(2) The State educational agency may waive, in whole or in part, 
the cost-sharing requirement of paragraph (1) if an eligible entity--
            ``(A) demonstrates that it otherwise would not be able to 
        participate in the program under this part; and
            ``(B) negotiates an agreement with the State educational 
        agency with respect to the amount of the remaining cost to 
        which the waiver would be applicable.
    ``(3) Federal funds under this part may not be used for the 
indirect costs of an Even Start program, except that the Secretary may 
waive this limitation if a recipient of funds reserved under section 
1202(a)(3) demonstrates to the Secretary's satisfaction that it 
otherwise would not be able to participate in the program under this 
part.

``SEC. 1205. PROGRAM ELEMENTS.

    ``Each Even Start program assisted under this part shall--
            ``(1) include the identification and recruitment of 
        families most in need of services provided under this part, 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 and 
        children to enable them to participate fully in the activities 
        and services provided under this part, 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 unavailable from other sources, 
        necessary for participation, such as--
                    ``(A) scheduling and locating of services to allow 
                joint participation by parents and children;
                    ``(B) child care for the period that parents are 
                involved in the program provided under this part; and
                    ``(C) transportation for the purpose of enabling 
                parents and their children to participate in programs 
                authorized by this part;
            ``(4) include high-quality instructional programs that 
        promote adult literacy, empower parents to support the 
        educational growth of their children, developmentally 
        appropriate early childhood educational services, and 
        preparation of children for success in regular school programs;
            ``(5) 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;
            ``(6) provide and monitor integrated instructional services 
        to participating parents and children through home-based 
        programs;
            ``(7) operate on a year-round basis, including the 
        provision of some program services, either instructional or 
        enrichment, or both, during the summer months;
            ``(8) be coordinated with--
                    ``(A) programs assisted under other parts of this 
                title and this Act;
                    ``(B) any relevant programs under the Adult 
                Education Act, the Individuals With Disabilities 
                Education Act, and the Job Training Partnership Act; 
                and
                    ``(C) the Head Start program, volunteer literacy 
                programs, and other relevant programs; and
            ``(9) provide for an independent evaluation of the program.

``SEC. 1206. ELIGIBLE PARTICIPANTS.

    ``(a) In General.--Except as provided in subsection (b), eligible 
participants in an Even Start program are--
            ``(1) a parent or parents--
                    ``(A) who are eligible for participation in an 
                adult basic education program under the Adult Education 
                Act; or
                    ``(B) who are within the State's compulsory school 
                attendance age range, so long as a local educational 
                agency provides (or ensures the availability of) the 
                basic education component required under this part; and
            ``(2) the child or children, from birth through age seven, 
        of any parent described in paragraph (1).
    ``(b) Eligibility for Certain Other Participants.--(1) Family 
members other than those described in subsection (a) may participate in 
program activities and services, when deemed by the program to serve 
the purpose of this part.
    ``(2) Any family participating in a program under this part 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 participation, which--
            ``(A) in the case of a family in which ineligibility was 
        due to the child or children of such family attaining the age 
        of eight, shall be in two years or when the parent or parents 
        become ineligible due to educational advancement, whichever 
        occurs first; and
            ``(B) in the case of a family in which ineligibility was 
        due to the educational advancement of the parent or parents of 
        such family, shall be when all children in the family attain 
        the age of eight.

``SEC. 1207. APPLICATIONS.

    ``(a) Submission.--To be eligible to receive a subgrant under this 
part, an eligible entity shall submit an application to the State 
educational agency in such form and containing or accompanied by such 
information as the State educational agency shall require.
    ``(b) Required Documentation.--Each application shall include 
documentation, satisfactory to the State educational agency, that the 
eligible entity has the qualified personnel needed--
            ``(1) to develop, administer, and implement an Even Start 
        program under this part; and
            ``(2) to provide access to the special training necessary 
        to prepare staff for the program, which may be offered by an 
        eligible organization.
    ``(c) Plan.--Such application shall also include a plan of 
operation for the program which shall include--
            ``(1) a description of the program goals;
            ``(2) a description of the activities and services that 
        will be provided under the program, including a description of 
        how the program will incorporate the program elements required 
        by section 1205;
            ``(3) a description of the population to be served and an 
        estimate of the number of participants;
            ``(4) as appropriate, a description of the applicant's 
        collaborative efforts with institutions of higher education, 
        community-based organizations, the State educational agency, 
        private elementary schools, or other eligible organizations in 
        carrying out the program for which assistance is sought;
            ``(5) a statement of the methods that will be used--
                    ``(A) to ensure that the programs will serve 
                families most in need of the activities and services 
                provided by this part;
                    ``(B) to provide services under this part to 
                individuals with special needs, such as individuals 
                with limited English proficiency and individuals with 
                disabilities; and
                    ``(C) to encourage participants to remain in the 
                program for a time sufficient to meet the program's 
                purpose; and
            ``(6) a description of how the plan--
                    ``(A)(i) is consistent with and promotes the goals 
                of the State and local plans, either approved or being 
                developed, under title III of the Goals 2000: Educate 
                America Act; and
                    ``(ii) is consistent with the State and local plans 
                under sections 1111 and 1112; or
                    ``(B) is consistent with the State and local plans 
                under sections 1111 and 1112 is the State does not have 
                an approved plan under title III of the Goals 2000: 
                Educate America Act and is not developing such a plan.
    ``(d) The plan described in subsection (c)(6) may be submitted as 
part of a consolidated application under section 9302.

``SEC. 1208. AWARD OF SUBGRANTS.

    ``(a) Selection Process.--(1) The State educational agency shall 
establish a review panel that will approve applications that--
            ``(A) are most likely to be successful in meeting the 
        purpose of this part, and in effectively implementing the 
        program elements required under section 1205;
            ``(B) demonstrate that the area to be served by such 
        program has a high percentage or a large number of children and 
        families who are in need of such services as indicated by high 
        levels of poverty, illiteracy, unemployment, or limited English 
        proficiency;
            ``(C) provide services for at least a three-year age range, 
        which may begin at birth;
            ``(D) demonstrate the greatest possible cooperation and 
        coordination between a variety of relevant service providers in 
        all phases of the program;
            ``(E) include cost-effective budgets, given the scope of 
        the application;
            ``(F) demonstrate the applicant's ability to provide the 
        additional funding required by section 1204(b);
            ``(G) are representative of urban and rural regions of the 
        State; and
            ``(H) show the greatest promise for providing models that 
        may be adopted by other local educational agencies.
    ``(2) The State educational agency shall give priority for 
subgrants under this subsection to proposals that either--
            ``(A) target services primarily to families described in 
        paragraph (1)(B); or
            ``(B) are located in areas designated as empowerment zones 
        or enterprise communities.
    ``(b) Review Panel.--A review panel shall consist of at least three 
members, including one early childhood professional, one adult 
education professional, and one or more of the following individuals:
            ``(1) A representative of a parent-child education 
        organization.
            ``(2) A representative of a community-based literacy 
        organization.
            ``(3) A member of a local board of education.
            ``(4) A representative of business and industry with a 
        commitment to education.
            ``(5) An individual who has been involved in the 
        implementation of programs under this title in the State.
    ``(c) Duration.--(1) Subgrants may be awarded for a period not to 
exceed four years.
    ``(2) The State educational agency may provide a subgrantee, at the 
subgrantee's request, a 3- to 6-month start-up period during the first 
year of the four-year period, which may include staff recruitment and 
training, and the coordination of services, before requiring full 
implementation of the program.
    ``(3)(A) In reviewing any application for a subgrant to continue a 
program for the second, third, or fourth year, the State educational 
agency shall review the progress being made toward meeting the 
objectives of the program after the conclusion of the start-up period, 
if any.
    ``(B) The State educational agency may refuse to award a subgrant 
if such agency finds that sufficient progress has not been made toward 
meeting such objectives, but only after affording the applicant notice 
and an opportunity for a hearing.
    ``(4)(A) An eligible entity that has previously received a subgrant 
under this part may reapply under the terms of this part for a second 
project period.
    ``(B) During the second project period, the Federal share of the 
subgrant shall not exceed 50 percent in any year.

``SEC. 1209. EVALUATION.

    ``From funds reserved under section 1202(b)(1), the Secretary shall 
provide for an independent evaluation of programs under this part--
            ``(1) to determine the performance and effectiveness of 
        programs; and
            ``(2) to identify effective Even Start projects that can be 
        replicated and used in providing technical assistance to 
        national, State, and local programs.

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

``SEC. 1301. PROGRAM PURPOSE.

    ``It is the purpose of this part to assist States to--
            ``(1) support high-quality and comprehensive educational 
        programs for migratory children to help reduce the educational 
        disruptions and other problems that result from repeated moves;
            ``(2) ensure that migratory children are provided with 
        appropriate educational services (including supportive 
        services) that address their special needs in a coordinated and 
        efficient manner;
            ``(3) ensure that migratory children have the opportunity 
        to meet the same challenging performance standards that all 
        children are expected to meet;
            ``(4) design programs to help migratory children overcome 
        educational disruption, cultural and language barriers, social 
        isolation, various health-related problems, and other factors 
        that inhibit their ability to do well in school, and to prepare 
        these children to make a successful transition to postsecondary 
        education or employment; and
            ``(5) ensure that migratory children benefit from State and 
        local systemic reforms.

``SEC. 1302. PROGRAM AUTHORIZED.

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

``SEC. 1303. STATE ALLOCATIONS.

    ``(a) State Allocations.--Each State (other than the Commonwealth 
of Puerto Rico) is entitled to receive under this part, for each fiscal 
year, an amount equal to--
            ``(1) the sum of the estimated number of migratory children 
        aged three through 21 who reside in the State full time and the 
        full-time equivalent of the estimated number of migratory 
        children aged three through 21 who reside in the State part 
        time, as determined in accordance with subsection (e); 
        multiplied by
            ``(2) 40 percent of the average per-pupil expenditure in 
        the State, except that the amount determined under this 
        paragraph shall not be less than 32 percent, or more than 48 
        percent, of the average expenditure per pupil in the United 
        States.
    ``(b) Allocation to Puerto Rico.--For each fiscal year, the amount 
for which the Commonwealth of Puerto Rico is eligible under this 
section shall be equal to--
            ``(1) the number of migratory children in Puerto Rico, 
        determined under subsection (a)(1); multiplied by
            ``(2) the product of--
                    ``(A) the percentage that the average expenditure 
                per pupil in Puerto Rico is of the lowest average per-
                pupil expenditure of any of the 50 States; and
                    ``(B) 32 percent of the average expenditure per 
                pupil in the United States.
    ``(c) Ratable Reductions; Reallocations.--(1)(A) If, after the 
Secretary reserves funds under section 1308(c), the amount appropriated 
to carry out this part for any fiscal year is insufficient to pay in 
full the amounts for which all States are eligible, the Secretary shall 
ratably reduce each such amount.
    ``(B) If additional funds become available for making such payments 
for any fiscal year, the Secretary shall allocate such funds to States 
in amounts that the Secretary finds would best carry out the purpose of 
this part.
    ``(2)(A) The Secretary shall further reduce the amount of any grant 
to a State under this part for any fiscal year if the Secretary 
determines, based on available information on the numbers and needs of 
migratory children in the State and the program proposed by the State 
to address such needs, that such amount exceeds the amount required 
under section 1304.
    ``(B) The Secretary shall reallocate such excess funds to other 
States whose grants under this part would otherwise be insufficient to 
provide an appropriate level of services to migratory children, in such 
amounts as the Secretary determines are appropriate.
    ``(d) Consortium Arrangements.--(1) In the case of a State that 
receives a grant of $1,000,000 or less under this section, the 
Secretary shall consult with the State educational agency to determine 
whether consortium arrangements with another State or other appropriate 
entity would result in delivery of services in a more effective and 
efficient manner.
    ``(2) A State, irrespective of the amount of its allocation, may 
propose a consortium arrangement.
    ``(3) The Secretary shall approve a consortium arrangement under 
paragraph (1) or (2) if the proposal demonstrates that the arrangement 
will--
            ``(A) reduce administrative costs or program function costs 
        for State programs; and
            ``(B) make more funds available for direct services to add 
        substantially to the welfare or educational attainment of 
        children to be served under this part.
    ``(e) Determining Numbers of Eligible Children.--In order to 
determine the estimated number of migratory children residing in each 
State for purposes of this section, the Secretary shall--
            ``(1) use such information as the Secretary finds most 
        accurately reflects the actual number of migratory children;
            ``(2) as soon as feasible develop and implement a procedure 
        for more accurately reflecting cost factors for different types 
        of summer program designs which will be used to adjust the 
        estimated number of children who reside in a State in order to 
        reflect the number of migratory children who are served in 
        summer programs (which may include intersession programs) in 
        the State and the additional costs of operating such programs; 
        and
            ``(3) conduct an analysis of the options for adjusting the 
        formula so as to better direct services to the child whose 
        education has been interrupted.

``SEC. 1304. STATE APPLICATIONS; SERVICES.

    ``(a) Application Required.--Any State wishing to receive a grant 
under this part for any fiscal year shall submit an application to the 
Secretary at such time and in such manner as the Secretary may require.
    ``(b) Program Information.--Each such application shall include--
            ``(1) a description of how, in planning, implementing, and 
        evaluating programs and projects under this part, the State and 
        its operating agencies will ensure that the special educational 
        needs of migratory children are identified and addressed 
        through a comprehensive plan for needs assessment and service 
        delivery that meets the requirements of section 1306, 
        including, when feasible, recording the migratory status of 
        such children and their average daily attendance on State 
        student collection data;
            ``(2) a description of the steps the State is taking to 
        provide migratory students with the opportunity to meet the 
        same challenging performance standards that all children are 
        expected to meet;
            ``(3) a description of how the State will use its funds to 
        promote interstate and intrastate coordination of services for 
        migratory children, including how, consistent with procedures 
        the Secretary may require, it 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 during the regular 
        school year;
            ``(4) a description of the State's priorities for the use 
        of funds received under this part, and how they relate to the 
        State's assessment of needs for services in the State;
            ``(5) a description of how the State will determine the 
        amount of any subgrants it will award to local operating 
        agencies, taking into account the requirements of paragraph 
        (1); and
            ``(6) 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--
                    ``(A) for programs and projects, including the 
                acquisition of equipment, in accordance with section 
                1306(b)(1); and
                    ``(B) to coordinate such programs and projects with 
                similar programs and projects within the State and in 
                other States, as well as with other Federal programs 
                that can benefit migratory children and their families;
            ``(2) such programs and projects will be carried out in a 
        manner consistent with the objectives of sections 1114, 1115(b) 
        and (d), 1120, and 1121(b) and (c), and part F of this title;
            ``(3) in the planning and operation of programs and 
        projects at both the State and local operating agency level, 
        there is appropriate consultation with parent advisory councils 
        for programs lasting a school year, and that all such programs 
        and projects are carried out, to the extent feasible, in a 
        manner consistent with section 1118 of this title;
            ``(4) in planning and carrying out such programs and 
        projects, there has been, and will be, adequate provision for 
        addressing the unmet education needs of preschool migratory 
        children;
            ``(5) the effectiveness of such programs and projects will 
        be determined, where feasible, using the same approaches and 
        standards that will be used to assess the performance of 
        students, schools, and local educational agencies under part A 
        of this title; and
            ``(6) the State will assist the Secretary in determining 
        the number of migratory children under section 1303(e), through 
        such procedures as the Secretary may require.
    ``(d) Priority for Services.--In providing services with funds 
received under this part, each recipient of such funds shall give 
priority to migratory children who are failing, or most at risk of 
failing, to meet the State's challenging performance standards, and 
whose education has been interrupted during the regular school year.
    ``(e) Continuation of Services.--Notwithstanding any other 
provision of this part--
            ``(1) a child who ceases to be a migratory child during a 
        school term shall be eligible for services until the end of 
        such term;
            ``(2) a child who is no longer a migratory child may 
        continue to receive services for one additional school year, 
        but only if comparable services are not available through other 
        programs; and
            ``(3) secondary school students who were eligible for 
        services in secondary school may continue to be served through 
        credit accrual programs until graduation.

``SEC. 1305. SECRETARIAL APPROVAL; PEER REVIEW.

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

``SEC. 1306. COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-DELIVERY PLAN; 
              AUTHORIZED ACTIVITIES.

    ``(a) Comprehensive Plan.--Each State that receives a grant under 
this part shall ensure that the State and its local operating agencies 
identify and address the special educational needs of migratory 
children in accordance with a comprehensive State plan that--
            ``(1)(A) is integrated with the State's plan, either 
        approved or being developed, under title III of the Goals 2000: 
        Educate America Act and satisfies the requirements of this 
        section that are not already addressed by such State plan; and
            ``(B) is integrated with other State plans, if any, under 
        the School-To-Work Opportunities Act of 1993 and the Carl D. 
        Perkins Vocational and Applied Technology Act to the extent 
        that such plans have not already been incorporated in the 
        State's plan under title III of the Goals 2000: Educate America 
        Act;
            ``(2) if the State does not have an approved plan under 
        title III of the Goals 2000: Educate America Act and is not 
        developing such a plan--
                    ``(A) is integrated with other State plans, such as 
                those under the School-To-Work Opportunities Act of 
                1993 and the Carl D. Perkins Vocational and Applied 
                Technology Act, where such plans exist; and
                    ``(B) satisfies the requirements of this section;
            ``(3) may be submitted as a part of a consolidated 
        application under section 9302;
            ``(4) provides that migratory children will have an 
        opportunity to meet the same challenging performance standards, 
        set out in those plans, that all children are expected to meet;
            ``(5) specifies measurable program goals and outcomes;
            ``(6) encompasses the full range of services that are 
        available for migratory children from appropriate local, State 
        and Federal educational programs;
            ``(7) is the product of joint planning among such local, 
        State, and Federal programs, including those under part A of 
        this title, early childhood programs, and bilingual education 
        programs under title VII of this Act;
            ``(8) provides for the integration of services available 
        under this part with services provided by such other programs; 
        and
            ``(9) to the extent feasible, provides for--
                    ``(A) advocacy and outreach activities for 
                migratory children and their families, including 
                informing them of, or helping them gain access to, 
                other education, health, nutrition, and social 
                services;
                    ``(B) professional development programs, including 
                mentoring, for teachers and other program personnel;
                    ``(C) parent involvement programs (as defined under 
                section 1118) and, when feasible, the establishment of 
                instructional programs such as use of the model 
                developed under the Even Start Family Literacy Programs 
                that promote adult literacy and train parents to 
                support the educational growth of their children;
                    ``(D) the integration of communication and 
                information technology into educational and related 
                programs; and
                    ``(E) programs to facilitate the transition of high 
                school students to postsecondary education or 
                employment.
A State may satisfy all or part of the requirements of this section by 
referencing applicable sections of its approved plan under title III of 
the Goals 2000: Educate America Act.
    ``(b) Authorized Activities.--(1) In implementing the comprehensive 
plan described in subsection (a), each local operating agency shall 
have the flexibility to determine the activities to be provided with 
funds made available under this part, provided that--
            ``(A) before funds provided under this part are used to 
        provide services described in subparagraph (B), those funds 
        shall be used to meet the identified needs of migratory 
        children that--
                    ``(i) result from the effects of their migratory 
                lifestyle, or are needed to permit migratory children 
                to participate effectively in school; and
                    ``(ii) are not addressed by services provided under 
                other programs, including part A of this title; and
            ``(B) all migratory children who are eligible to receive 
        services under part A of this title shall receive such services 
        with funds provided under this part or under part A of this 
        title.
    ``(2) This subsection shall not apply to funds under this part that 
are used for schoolwide programs under section 1114 of this title.

``SEC. 1307. BYPASS.

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

``SEC. 1308. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

    ``(a) Improvement of Coordination.--The Secretary, in consultation 
with the States, may make grants to, or enter into contracts with, 
State educational agencies, local educational agencies, institutions of 
higher education, and other public and private nonprofit entities to 
improve the interstate and intrastate coordination among State and 
local educational agencies of their educational programs, including the 
establishment or improvement of programs for credit accrual and 
exchange, available to migratory students. Grants under this subpart 
may be made for up to 5 years.
    ``(b) Assistance and Reporting.--(1) Within 60 days of enactment, 
the Secretary shall convene a panel of Chief State School Officers and 
technical experts to assess alternative methods by which student 
records may be transferred from one school to another. Within 150 days 
of having been convened, the panel shall make recommendations to the 
Secretary on how schools may adopt the most cost-effective means of 
exchanging of school records. The Secretary shall also develop the most 
cost-effective and accurate method of determining the number of 
students or full-time equivalent students in each State on a yearly 
basis. The Secretary shall report to the Committee on Education and 
Labor of the House of Representatives and the Committee on Labor and 
Human Resources of the Senate the panel's findings and the Secretary's 
recommendations.
    ``(2) The Secretary may contract for services for purposes of this 
section.
    ``(c) Availability of Funds.--For the purpose of carrying out this 
section, the Secretary shall reserve up to $6,000,000 from the amount 
appropriated under section 1002(3) for each fiscal year to carry out 
this part.
    ``(d) Competitive Grants.--From the amounts made available for this 
section, the Secretary shall reserve not more than $1,500,000 to award, 
on a competitive basis, grants in the amount of up to $100,000 each to 
State educational agencies with consortium agreements described under 
section 1303(d). Not less than 10 of such grants shall be awarded to 
States which receive allocations of less than $1,000,000 if such States 
have approved agreements.

``SEC. 1309. DISTANCE LEARNING.

    ``(a) Program.--The Secretary may establish a distance learning 
program to provide, through competitive grants, continuity in the 
education of migrant children using technology, interactive learning, 
computers, and automated technology links achieved with modems and 
telephone networks.
    ``(b) Funds.--Not more than $3,000,000 may be used to establish the 
program under subsection (a).

``SEC. 1310. DEFINITIONS.

    ``As used in this part, the following terms have the following 
meanings:
            ``(1) The term `local operating agency' means--
                    ``(A) a local educational agency to which a State 
                educational agency makes a subgrant under this part;
                    ``(B) a public or nonprofit private agency with 
                which a State educational agency or the Secretary makes 
                an arrangement to carry out a project under this part; 
                or
                    ``(C) a State educational agency, if the State 
                educational agency operates the State's migrant 
                education program or projects directly.
            ``(2) The term `migratory child' means--
                    ``(A) for fiscal year 1996 and subsequent years, a 
                child who is, or whose parent or spouse is, a migratory 
                agricultural worker (including a migratory dairy 
                worker) or a migratory fisher, and who, in the 
                preceding 24 months, in order to obtain, or accompany 
                such parent or spouse in order to obtain, temporary or 
                seasonal employment in agricultural or fishing work--
                            ``(i) has moved from one local educational 
                        agency to another; or
                            ``(ii) in a State that is comprised of a 
                        single local educational agency, has moved from 
                        one administrative area to another within such 
                        agency; or
                    ``(B) for fiscal year 1995 only, a child fulfilling 
                the requirements of subparagraph (A) for a period of 36 
                months instead of for 24 months.

``PART D--PREVENTION AND INTERVENTION SERVICES FOR DELINQUENT YOUTH AND 
                     YOUTH AT RISK OF DROPPING OUT

``SEC. 1401. 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 them with high level skills and which provides 
        supports to youth returning from correctional facilities in 
        order to keep them in school.
    ``(b) Purpose.--It is the purpose of this part--
            ``(1) to improve educational services to children in local 
        and State institutions for delinquent children so that they 
        have the opportunity to meet the same challenging State 
        performance standards that all children in the State will be 
        expected to meet;
            ``(2) to provide such children the services they need 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, which shall make subgrants to State agencies and local 
educational agencies to establish or improve programs of education for 
delinquent children and youth at risk of dropping out of school before 
graduation.

``SEC. 1402. PAYMENTS FOR PROGRAMS UNDER THIS PART.

    ``(a) Agency Subgrants.--Based on the allocation amount computed 
under section 1403, 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.
    ``(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. 1403. AMOUNT OF ALLOCATION TO STATE.

    ``(a) State Allocation.--Each State educational agency is eligible 
to receive under this part, for each fiscal year, an amount equal to 
the product of--
            ``(1) the number of delinquent children in State 
        correctional facilities serving youth under the age of 21 who 
        are enrolled for at least 20 hours per week in education 
        programs operated or supported by facilities serving youth, and 
        10 hours a week in adult facilities serving youth.
            ``(2) 40 percent of the average per-pupil expenditure in 
        the State, except that the amount determined under this 
        paragraph shall not be less than 32 percent or more than 48 
        percent of the average per-pupil expenditure in the United 
        States.
    ``(b) Subgrants to State Agencies In Puerto Rico.--For each fiscal 
year, the amount of the grant 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 counted under subsection 
        (a)(1) for Puerto Rico; multiplied by the product of--
                    ``(A) the percentage that the average per-pupil 
                expenditure in Puerto Rico is of the lowest average 
                per-pupil expenditure of any of the 50 States; and
                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.

``SEC. 1404. STATE PLAN.

    ``(a) State Plan.--(1)(A) Each State educational agency that 
desires to receive payments under this part shall submit, for approval 
by the Secretary, a plan, which shall be revised and updated as needed, 
for meeting the needs of delinquent youth and children at risk of 
dropping out that--
            ``(i) is integrated with the State's plan, either approved 
        or being developed, under title III of the Goals 2000: Educate 
        America Act, and satisfies the requirements of this section 
        that are not already addressed by such State plan; or
            ``(ii) if the State does not have an approved plan under 
        title III of the Goals 2000: Educate America Act or is not 
        developing such a plan, is integrated with other State plans 
        under this Act and satisfies the requirements of this section.
    ``(B) A State plan submitted under paragraph (1)(A)(i) may, if 
necessary, be submitted as an amendment to the State's plan under title 
III of the Goals 2000: Educate America Act.
    ``(2) Each such plan shall also--
            ``(A) describe the State-established program goals, 
        objectives, and performance measures 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 they would have if 
        they were in schools of local educational agencies in the 
        State;
            ``(C) describe the manner in which such State educational 
        agency will make subgrants; and
            ``(D) contain assurances that the State educational agency 
        will--
                    ``(i) ensure that programs assisted under this part 
                will be carried out in accordance with the State plan 
                described in this subsection;
                    ``(ii) carry out the evaluation requirements of 
                section 1408;
                    ``(iii) ensure that its State agencies comply with 
                all applicable statutory and regulatory requirements; 
                and
                    ``(iv) provide such other information as the 
                Secretary may reasonably require.
    ``(b) Secretarial Approval; Peer Review.--(1) The Secretary shall 
approve each State plan that meets the requirements of this part.
    ``(2) The Secretary may review any such plan with the assistance 
and advice of individuals with relevant expertise.
    ``(c) Subgrants to State Agencies.--A State agency is eligible for 
assistance under this part if it is responsible for providing free 
public education for children in institutions for delinquent children.
    ``(d) State Agency Applications.--A State agency that desires to 
receive funds to carry out a program under this part shall submit an 
application to the State educational agency that--
            ``(1) describes the procedures to be used, consistent with 
        the State plan under part A of this title, 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;
            ``(4) describes how the program will meet the goals and 
        objectives of the State plan under this part;
            ``(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 1406 are of high 
        quality;
            ``(6) describes how the agency will carry out the 
        evaluation requirements of section 1408 and how the results of 
        the most recent evaluation are used to plan and improve the 
        program;
            ``(7) includes data showing that the agency has maintained 
        fiscal effort required of a local educational agency, in 
        accordance with section 9501 of this title;
            ``(8) describes how the programs will be coordinated with 
        other appropriate State and Federal programs, including the Job 
        Training Partnership Act, vocational education, State and local 
        dropout prevention programs, and special education;
            ``(9) describes how appropriate professional development 
        will be provided to teachers and other instructional and 
        administrative personnel;
            ``(10) designates an individual in each affected 
        institution to be responsible for issues relating to the 
        transition of children from an institution to locally operated 
        programs;
            ``(11) describes how the agency will, endeavor to 
        coordinate with businesses for training and mentoring for 
        participating youth;
            ``(12) describes how the agency will assist in locating 
        alternative programs through which students can continue their 
        education if they are not returning to school after leaving the 
        correctional facility;
            ``(13) describes how the agency will work with parents to 
        secure their assistance in improving the educational 
        achievement of their children and preventing their further 
        involvement in delinquent activities;
            ``(14) describes how 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 is identified as in need 
        of special education services while the youth is in the 
        facility and if the youth intends to return to the local 
        school;
            ``(15) describes how the agency will work with youth who 
        dropped out of school before entering the facility to encourage 
        such youth to reenter school once their term has been completed 
        or provide the youth with the skills necessary to gain 
        employment, continue their education, or achieve a high school 
        equivalency certificate 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, 
        including career counseling, assistance in securing student 
        loans, grants; and
            ``(18) describes how this program will be coordinated with 
        any programs operated under the Juvenile Justice and 
        Delinquency Act, if applicable.

``SEC. 1405. USE OF FUNDS.

    ``(a) General.--(1) A State agency shall use funds received under 
this part only for programs and projects that--
            ``(A) are consistent with the State plan referred to in 
        section 1404(a); and
            ``(B) concentrate on providing participants with the 
        knowledge and skills needed to make a successful transition to 
        high school completion, further education, or employment.
    ``(2) 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 1406, are provided to children identified by 
                the State agency as failing, or most at risk of 
                failing, to meet the State's challenging 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 1119(b) and part F of this title; and
            ``(D) may include the costs of meeting the evaluation 
        requirements of section 1408.
    ``(b) Supplement, Not Supplant.--A program under this part 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 1119(b) of this title 
without regard to the subject areas in which instruction is given 
during those hours.

``SEC. 1406. INSTITUTION-WIDE PROJECTS.

    ``A State agency that provides free public education for children 
in an institution for delinquent children may use funds received under 
this part to serve all children in, and upgrade the entire educational 
effort of, such institution or program if the State agency has 
developed, and the State educational agency has approved, a 
comprehensive plan for such 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 
        2-year period;
            ``(3) describes the steps the State agency has taken, or 
        will take, to provide all children under 21 with the 
        opportunity to meet challenging academic and vocational 
        standards in order to improve the likelihood that the students 
        will complete high school, attain high school equivalency, 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 secondary school 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 for 
        delinquent children and personnel from the State educational 
        agency; and
            ``(8) includes an assurance that the State agency has 
        provided for appropriate training to teachers and other 
        instructional and administrative personnel to enable them to 
        carry out the project effectively.

``SEC. 1407. THREE-YEAR PROJECTS.

    ``If a State agency operates a program under this part 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 not to exceed 3 years.

``SEC. 1408. TRANSITION SERVICES.

    ``(a) Transition Services.--Each State agency shall reserve not 
more than 10 percent of the amount it receives under this part 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 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 counseling and mentoring, to delinquent children in schools 
other than State-operated institutions.

                   ``Subpart 2--Local Agency Programs

``SEC. 1410. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

    ``(a) Local Subgrants.--With funds retained under section 1402(2), 
the State educational agency shall make subgrants to local educational 
agencies with--
            ``(1) a high number or percentage of youth who are residing 
        in local (including county) correctional facilities for youth 
        (including those involved in day programs); and
            ``(2) which have the highest numbers or percentage of youth 
        in the State which have dropped out of school in the preceding 
        fiscal year.
    ``(b) Notification.--A State educational agency shall notify local 
educational agencies which meet the criteria of subsection (a) of their 
eligibility for participation in the program.
    ``(c) Purpose of Local Educational Agency Programs.--The purpose of 
this section is the operation of local educational agency programs 
which involve collaboration between local educational agencies and 
local correctional facilities serving such youth to--
            ``(1) continue transition activities for youth returning 
        from such facilities;
            ``(2) to operate dropout prevention programs in local 
        schools for youth at risk of dropping out and youth returning 
        from correctional facilities; and
            ``(3) to prepare youth who have finished their period of 
        incarceration for employment, high school completion, and 
        further education.
    ``(d) Local Educational Agency Applications.--(1) Eligible local 
educational agencies which choose to take part in programs funded under 
this section shall submit an application to the State educational 
agency, containing such information on programs to be operated under 
this section as the State educational agency may require, and which 
shall include--
            ``(1) a description of formal agreements between the local 
        educational agency and correctional facilities and alternative 
        school programs serving youth involved with the juvenile 
        justice system to operate programs for delinquent youth;
            ``(2) 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;
            ``(3) 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;
            ``(4) 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;
            ``(5) 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;
            ``(6) a description of any partnerships with local 
        businesses to develop training and mentoring services for 
        participating students;
            ``(7) a description of how the program will involve parents 
        in efforts to improve the education achievement of their 
        children, assist in dropout prevention activities, and prevent 
        the involvement of their children in delinquent activities;
            ``(8) a description of how this program will be coordinated 
        with other Federal, State, and local programs, including the 
        Job Training and Partnership Act and vocational education 
        programs serving this at risk population of youth;
            ``(9) a description of how the program will be coordinated 
        with programs operated under the Juvenile Justice and 
        Delinquency Prevention Act, if applicable;
            ``(10) a description of how schools will work with 
        probation officers to assist in meeting the needs of youth 
        returning from correctional facilities;
            ``(11) 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
            ``(12) 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.
    ``(e) Uses of Funds.--Funds provided to local educational agencies 
under this section may be used for--
            ``(1) dropout prevention programs which serve youth at 
        educational risk, including pregnant and parent teens, youth 
        who have come in contact with the juvenile justice system, 
        youth at least one year behind their expected grade level, 
        migrants, immigrants, students with limited-English proficiency 
        and gang members;
            ``(2) the coordination of health and social services for 
        such youth if there is a likelihood that the provision of such 
        services including day care and drug and alcohol counseling, 
        will improve the likelihood such students will complete their 
        education; and
            ``(3) programs to meet the unique education needs of youth 
        at risk of dropping out, which may include vocational 
        education, special education, career counseling, and assistance 
        in securing student loans or grants.
    ``(f) Program Requirements for Correctional Facilities Receiving 
Funds Under This Section.--Each facility entering into a partnership 
with a local educational agency to provide services to youth under this 
section shall--
            ``(1) 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 servicers while in 
        the facility;
            ``(3) 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 the youth 
        who have dropped out to reenter school once their term has been 
        completed or provide such youth with the skills necessary for 
        them to gain employment or seek a high school equivalency 
        certificate;
            ``(5) work to ensure facilities are staffed with teachers 
        and other qualified staff who are also trained to work with 
        children with disabilities and other special needs students 
        taking into consideration such unique needs;
            ``(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 
        coordinating educational programs between the juvenile facility 
        and community school;
            ``(8) 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 available State, local, and Federal funds to provide 
        services to participating youth, including the Job Training 
        Partnership Act, and vocational education;
            ``(10) coordinate programs operated under this section with 
        activities funded under the Juvenile Justice and Delinquency 
        Prevention Act, if applicable; and
            ``(11) if appropriate, work with local businesses to 
        develop training and mentoring programs for participating 
        youth.
    ``(g) Accountability.--The State educational agency may--
            ``(1) reduce or terminate funding for projects funded under 
        this section in local educational agencies if such agencies do 
        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 3 
        years, that there has been an increase in the number of youth 
        returning to school, obtaining high school equivalency 
        certificates, or obtaining employment after such youth are 
        released.

``SEC. 1411. 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 once every 3 years to 
determine its 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 high school graduation;
            ``(3) for delinquent youth, make the transition to a 
        regular program or other education program operated by a local 
        educational agency; and
            ``(4) complete high school (or high school equivalency 
        requirements) and obtain employment after leaving the 
        institution.
    ``(b) Evaluation Measures.--In conducting each such evaluation with 
respect to subsection (a)(1), 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.

``SEC. 1412. DEFINITIONS.

    ``For the purpose of this part, the following terms have the 
following meanings:
            ``(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 such age, have limited-
        English proficiency, are gang members, have dropped out in the 
        past, or have high absenteeism rates.
            ``(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 delinquent 
        children.
            ``(4) The term `institution for delinquent children' means 
        a public or private residential facility for the care of 
        children who have been adjudicated to be delinquent or in need 
        of supervision.

 ``PART E--FEDERAL EVALUATIONS, DEMONSTRATIONS, AND TRANSITION PROJECTS

``SEC. 1501. EVALUATIONS.

    ``(a) National Assessment.--(1) The Secretary shall conduct a 
national assessment of programs under this title, in coordination with 
the ongoing Chapter 1 Longitudinal Study under subsection (b) of this 
section, that shall be planned, reviewed, and conducted in consultation 
with an independent panel of researchers, State practitioners, local 
practitioners, and other appropriate individuals.
    ``(2) The assessment shall examine how well schools, local 
educational agencies, and States--
            ``(A) are progressing toward the goal of all children 
        served under this title reaching the State's content and 
        performance standards; and
            ``(B) are accomplishing the specific purposes set out in 
        section 1001(d) of this title to achieve this goal, including--
                    ``(i) ensuring high standards for all children and 
                aligning the efforts of States, local educational 
                agencies, and schools to help children reach them;
                    ``(ii) providing children an enriched and 
                accelerated educational program through schoolwide 
                programs or through additional services that increase 
                the amount and quality of instructional time that 
                children receive;
                    ``(iii) promoting schoolwide reform and access of 
                all children to effective instructional strategies and 
                challenging academic content;
                    ``(iv) significantly upgrading the quality of the 
                curriculum and instruction by providing staff in 
                participating schools with substantial opportunities 
                for professional development;
                    ``(v) are using any of the voluntary model State 
                opportunity-to-learn standards that may have been 
                implemented and whether they are useful in improving 
                learning;
                    ``(vi) coordinating services under all parts of 
                this title with each other, with other educational 
                services, including preschool services, and, to the 
                extent feasible, with health and social service 
                programs funded from other sources;
                    ``(vii) affording parents meaningful opportunities 
                to participate in the education of their children at 
                home and at school, including the provisions of family 
                literacy services;
                    ``(viii) distributing resources to areas where 
                needs are greatest;
                    ``(ix) improving accountability, as well as 
                teaching and learning, by making assessments under this 
                title congruent with State assessment systems; and
                    ``(x) providing greater decisionmaking authority 
                and flexibility to schools in exchange for greater 
                responsibility for student performance.
    ``(3) Where feasible, the Secretary shall use information gathered 
from a variety of sources, including the National Assessment of 
Educational Progress, State evaluations, and available research studies 
in carrying out this subsection.
    ``(4) The Secretary shall submit a biennial report summarizing the 
cumulative findings to date of the assessment to the President and the 
appropriate committees of the Congress.
    ``(b) Studies and Data Collection.--The Secretary may collect such 
data, as necessary, at the State, local, and school levels and conduct 
studies and evaluations, including national studies and evaluations, to 
assess on an ongoing basis the effectiveness of programs under this 
title and to report on such effectiveness on a periodic basis. The 
Secretary shall report no later than December 31, 1997 to the House 
Committee on Education and Labor and the Senate Committee on Labor and 
Human Resources on how schoolwide programs are meeting the needs of 
children from migratory families.
    ``(c) National Evaluation of Title I.--The Secretary shall carry 
out an ongoing evaluation of the program under part A of this title in 
order to provide the public, Congress, and educators involved in such 
program, an accurate description of the effectiveness of such program 
and provide information that can be used to improve such program's 
effectiveness. Such evaluation shall--
            ``(1) have a longitudinal design tracking cohorts of 
        students for at least 3 years which, when the cohorts are taken 
        as a whole, provides a picture of such program's effectiveness 
        over the elementary and secondary grades;
            ``(2) be separate and independent from State and local 
        assessments and evaluations as required under this part;
            ``(3) utilize the highest available content standards that 
        are generally accepted as national in scope;
            ``(4) provide information on all students, students served 
        under this part, and, if funds are sufficient, information on 
        students from low-income families and limited English 
        proficient students; and
            ``(5) when feasible, collect, cross-tabulate, and report 
        data by sex within race or ethnicity and socioeconomic status.
The Secretary shall use the information from this evaluation as part of 
the national assessment required by subsection (a) and shall report the 
data from this evaluation to the Congress and the public at least as 
frequently as that assessment.
    ``(d)(1) In conducting the National Assessment under subsection (a) 
and the National Evaluation under subsection (b), the Secretary shall 
not assess the progress of students in grade 1, kindergarten, and pre-
kindergarten on the basis of outcome measures such as content and 
performance standards.
    ``(2) Any assessments of children in grade 2 shall utilize matrix 
sampling and be performance-based.
    ``(3) Any data collected regarding children in grade 2 shall--
            ``(A) be collected at multiple points in time;
            ``(B) not be used to stigmatize, label, or place any child; 
        and
            ``(C) be collected in multiple domains.
    ``(e) Parental Involvement, Study, Report and Dissemination.--(1) 
The Secretary, through the Office of Education Research and 
Improvement, shall conduct a study to identify and describe--
            ``(A) common barriers to effective parental involvement in 
        the education of participating children; and
            ``(B) successful local policies and programs which improve 
        parental involvement and the performance of participating 
        children.
    ``(2) The Secretary shall--
            ``(A) complete such study by December 31, 1995;
            ``(B) report the findings of such study to the Committee on 
        Education and Labor of the House of Representatives and to the 
        Committee on Labor and Human Resources of the Senate; and
            ``(C) disseminate the findings, relating to the successful 
        local policies and programs which improve parental involvement 
        and the performance of participating children, to local 
        educational agencies.

``SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

    ``(a) Demonstration Programs To Improve Achievement.--(1) From the 
funds appropriated for any fiscal year under section 1002(7)(B), the 
Secretary may make grants to State educational agencies, local 
educational agencies, other public agencies, nonprofit organizations, 
public/private partnerships involving business and industry 
organizations, and consortia of such bodies to carry out demonstration 
projects that show the most promise of enabling children served under 
this title to meet challenging State standards. Such projects shall 
include promising strategies such as--
            ``(A) accelerated curricula, the application of new 
        technologies to improve teaching and learning, extended 
        learning time, and a safe and enriched full-day environment for 
        children to provide them the opportunity to reach high 
        standards;
            ``(B) integration of education services with each other and 
        with health, family, and other social services such as 
        mentoring programs, particularly in empowerment zones and 
        enterprise communities;
            ``(C) effective approaches to whole school reform;
            ``(D) programs that have been especially effective with 
        limited English proficient children, migratory children and 
        other highly mobile students, children leaving institutions for 
        neglected or delinquent children and returning to school, and 
        homeless children and youth; and
            ``(E) programs that are built upon partnerships developed 
        between elementary, middle schools, and secondary schools, 
        employers, and the community which emphasize the integration of 
        high quality academic and vocational learning, stress 
        excellence and high expectations for success in core academic 
        subjects, instill responsibility, decisionmaking, problem 
        solving, interpersonal skills, and other competencies in 
        students, and make school relevant to the workplace and the 
        community, through applied and interactive teaching 
        methodologies, team teaching strategies, learning opportunities 
        connecting school, the workplace, and the community, and career 
        exploration, awareness, and career guidance opportunities.
    ``(2) The Secretary shall evaluate the demonstration projects 
supported under this title, using rigorous methodological designs and 
techniques, including control groups and random assignment, to the 
extent feasible, to produce reliable evidence of effectiveness.
    ``(b) Partnerships.--(1) From funds appropriated under section 
1002(7)(B) for any fiscal year, the Secretary may, directly or through 
grants or contracts, work in partnership with State educational 
agencies, local educational agencies, other public agencies, and non-
profit organizations to disseminate and use the highest quality 
research and knowledge about effective practices to improve the quality 
of teaching and learning in schools supported under this title.

``SEC. 1503. INNOVATIVE ELEMENTARY SCHOOL TRANSITION PROJECTS.

    ``(a) In General.--From not less than $10,000,000 of the amount 
appropriated under section 1002(7)(B) the Secretary shall provide 
financial assistance to support innovative transition projects in 
elementary schools.
    ``(b) Grants.--(1) From 70 percent of the amount reserved under 
subsection (a) to carry out this section, the Secretary shall make 
grants to local educational agencies for the purpose of supporting 
projects, for children from low-income families who previously attended 
Head Start, Even Start, or similar preschool programs, which provide 
educational and other services in kindergarten and early elementary 
grades.
    ``(2) The purpose of such projects are to assist such children to--
            ``(A) make a successful transition from preschool through 
        the early elementary grades; and
            ``(B) achieve challenging academic standards.
    ``(3) A program assisted under this subsection shall--
            ``(A) provide transition-to-elementary school activities, 
        such as--
                    ``(i) development of a transition plan for each 
                child, which provides for support and assistance 
                through the third grade;
                    ``(ii) transfer of each child's preschool records 
                to the elementary school (with parental consent);
                    ``(iii) formal meetings between a child's parent, 
                preschool teacher, and kindergarten or first grade 
                teacher; and
                    ``(iv) kindergarten visits and other orientation 
                activities for preschool children prior to enrollment 
                in elementary school;
            ``(B) use a model instructional approach for which 
        financial assistance is provided under subsection (d);
            ``(C) provide directly or through referral comprehensive 
        educational, health, nutritional, social, and other services as 
        will aid in the continued development of eligible children to 
        their full potential; and
            ``(D) provide for the direct participation of the parents 
        of such children in the development, operation, and evaluation 
        of such program.
    ``(c) Applications and Grant Priority.--(1) An application for a 
grant under subsection (b) shall--
            ``(A) describe the transition-to-elementary school 
        activities which the applicant plans to administer;
            ``(B) describe the model instructional approach the 
        applicant will use, and the manner in which the applicant will 
        implement such approach;
            ``(C) provide evidence that the applicant has made a formal 
        arrangement to receive technical assistance and training from 
        the agency, organization, or institution which sponsors such 
        approach and receives funds under subsection (d);
            ``(D) describe the manner in which the applicant will 
        provide comprehensive services to the children to be served;
            ``(E) describe how the applicant will provide for direct 
        participation by parents in the planning, operation, and 
        evaluation of such program;
            ``(F) describe how such program will be coordinated with 
        title I, title VII, and other programs authorized under this 
        Act; and
            ``(G) provide evidence that--
                    ``(i) the applicant has entered into formal 
                arrangements with local Head Start, Even Start, and 
                other preschool programs to ensure that the transition 
                activities supported by such program are effective; and
                    ``(ii) the transition activities, instruction, and 
                other services to be provided by the applicant have 
                been specifically designed to build upon, and 
                coordinate with, those services provided to eligible 
                children and their parents in local Head Start, Even 
                Start and other similar preschool programs.
    ``(2) An application for a grant under subsection (b) may provide 
for the use of mentors who are high school or college students trained 
to provide tutoring to elementary and secondary students formerly 
enrolled in Head Start or Even Start programs.
    ``(3) In making grants under subsection (b), the Secretary shall--
            ``(A) give priority to applicants that--
                    ``(i) propose to administer a project in schools 
                designated as a schoolwide program under section 1114 
                of this Act; and
                    ``(ii) propose to use an innovative transition and 
                instructional approach which has been shown to be 
                effective for the purpose described in paragraph (2) of 
                subsection (b); and
            ``(B) provide sufficient funds to enable programs to meet 
        the purposes of paragraph (1) and the requirements of paragraph 
        (2).
    ``(d) Technical Assistance and Training.--From 30 percent of the 
amount reserved under subsection (a), the Secretary shall make grants 
to public and private nonprofit agencies, institutions, and 
organizations to provide--
            ``(1) technical assistance in the implementation and 
        expanded use of model transition and instructional approaches; 
        and
            ``(2) training in conjunction with the implementation and 
        operation of such model approaches.
    ``(e) General Provisions.--
            ``(1) An application for assistance under this section may 
        not be approved unless the Secretary is satisfied that the 
        services to be provided by the applicant will supplement, and 
        not supplant, services previously provided without Federal 
        assistance.
            ``(2) A program which receives assistance under subsection 
        (b) must demonstrate that such program achieved the purposes 
        described in paragraph (2) of such subsection in order to be 
        eligible for a renewal grant.

                      ``PART F--GENERAL PROVISIONS

``SEC. 1601. FEDERAL REGULATIONS.

    ``(a) In General.--The Secretary is authorized to issue such 
regulations as are necessary to reasonably ensure that there is 
compliance with this title.
    ``(b) Negotiated Rulemaking Process.--(1) Prior to publishing 
proposed regulations in the Federal Register 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) Such advice and recommendations may be obtained through such 
mechanisms as regional meetings and electronic exchanges of 
information.
    ``(3) 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 4 key issues, including--
                    ``(i) schoolwide projects;
                    ``(ii) standards and assessment;
                    ``(iii) parental involvement; and
                    ``(iv) professional development;
            ``(B) select individuals to participate in such process 
        from among individuals or groups which provided advice and 
        recommendations, with representation from all geographic 
        regions; 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 45 days prior to the first 
        meeting under such process.
    ``(4) Such process--
            ``(A) shall be conducted in a timely manner to ensure that 
        final regulations are issued by the Secretary not later than 
        the 240-day period required by section 437 of the General 
        Education Provisions Act; 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) 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 the program, 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) Special Rule.--Funds made available under section 1002(7) may 
not be released by the Secretary for expenditure until such time as 
final regulations to carry out part A are published in the Federal 
Register.
    ``(d) Limitation.--Regulations to carry out this part may not 
require local programs to follow a particular instructional model, such 
as the provision of services outside the regular classroom or school 
program.

``SEC. 1602. COORDINATION OF FEDERAL, STATE, AND LOCAL ADMINISTRATION.

    ``(a) Program Assistance Manual.--The Secretary shall, not later 
than 6 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 
        of Education, including officers and employees of the Secretary 
        and officers and employees of such Department charged with 
        auditing programs carried on under this title, uniformly 
        interpret, apply, and enforce requirements under this title 
        throughout the United States.
    ``(b) Contents of Policy Manual.--The policy manual shall, with 
respect to programs carried out under this title, contain descriptions, 
statements, procedural and substantive rules, opinions, policy 
statements and interpretations and indices to and amendments of the 
foregoing, and in particular, whether or not such items 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 
        their discretion, 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 more 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. In 
the case of a request from a local educational agency, such agency is 
required to address its request to the State educational agency first.

``SEC. 1603. STATE ADMINISTRATION.

    ``(a) Rulemaking.--(1) 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 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) 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 State's 
standards.
    ``(b) Committee of Practitioners.--(1) Each State educational 
agency shall create a State committee of practitioners to advise the 
State in carrying out its responsibilities under this title.
    ``(2) 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) counselors.
    ``(3) The duties of the committee shall include a review, prior to 
publication, of any proposed or final State rule or regulation pursuant 
to this title. In an emergency situation where such rule or regulation 
must be issued within a very limited time to assist local educational 
agencies with the operation of the program, the State educational 
agency may issue a regulation without prior consultation, but shall 
immediately thereafter convene the State committee of practitioners to 
review the emergency regulation prior to issuance in final form.
    ``(c) Payment For State Administration.--Each State may reserve for 
the proper and efficient performance of its duties under this title the 
greater of--
            ``(1) one percent of the funds received under section 
        1002(a) and (c) through (f); or
            ``(2) $375,000, or $50,000 in the case of Guam, American 
        Samoa, the Virgin Islands, the Northern Mariana Islands, and 
        Palau (until the Compact of Free Association takes effect).

              ``TITLE II--IMPROVING TEACHING AND LEARNING

    ``PART A--DWIGHT D. EISENHOWER PROFESSIONAL DEVELOPMENT PROGRAM

``SEC. 2101. FINDINGS.

    ``The Congress finds that--
            ``(1) reaching the 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 
        these goals is ensuring, through sustained and intensive high-
        quality professional development, and through the development 
        and adoption of high quality curriculum, that all teachers are 
        capable of providing 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 change the 
                opportunities of all students to achieve higher 
                standards; and
                    ``(B) effective professional development focuses on 
                discipline-based knowledge and subject-specific 
                pedagogical skills, involves teams of teachers and 
                administrators in a school and, through professional 
                networks of teachers and administrators, 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;
            ``(5) engaging teachers in the development of high quality 
        curricula is a powerful professional development activity that 
        improves teaching and learning;
            ``(6) 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;
            ``(7) States and local educational agencies also need to 
        engage teachers in the development of high quality curricula 
        that are aligned with State or local content and performance 
        standards in order to improve teaching and learning and ensure 
        that students achieve the State standards;
            ``(8) professional development is often a victim of budget 
        reductions in fiscally difficult times and curricula 
        development is almost nonexistent in many State and local 
        school systems; and
            ``(9) 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 and in providing assistance to such 
        agencies to engage teachers in the development of high quality 
        curricula that are aligned with State or local content and 
        performance standards.

``SEC. 2102. PURPOSES.

    ``The purposes of this part are to provide assistance to States and 
local educational agencies and to institutions of higher education with 
teacher education programs so that such agencies can determine how best 
to improve the teaching and learning of all students through--
            ``(1) helping to ensure that teachers, other staff, and 
        administrators have access to sustained and intensive high-
        quality professional development that is aligned to challenging 
        State content and performance standards in the care academic 
        subjects and that--
                    ``(A) is tied to challenging State and local 
                curriculum content and student performance standards;
                    ``(B) reflects recent research on teaching and 
                learning;
                    ``(C) incorporates 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 performance standards;
                    ``(D) includes strong academic content and 
                pedagogical components;
                    ``(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; and
            ``(2) assisting States and local educational agencies to 
        engage teachers in the development of high quality curriculum 
        that is aligned with State or local content and performance 
        standards.

``SEC. 2103. AUTHORIZATION OF APPROPRIATIONS; ALLOCATION BETWEEN 
              SUBPARTS.

    ``(a) Authorization of Appropriations.--For the purpose of carrying 
out this part, there are authorized to be appropriated $800,000,000 for 
fiscal year 1995 and such sums as may be necessary for fiscal years 
1996, 1997, 1998, and 1999.
    ``(b) Allocation Between Subparts.--Of the funds appropriated to 
carry out this part for a fiscal year, the Secretary shall use--
            ``(1) 5 percent to carry out subpart 1; and
            ``(2) 95 percent to carry out subpart 2.

                    ``Subpart 1--Federal Activities

``SEC. 2111. PROGRAM AUTHORIZED.

    ``(a) Program Authorized.--The Secretary is authorized to make 
grants to, and enter into contracts and cooperative agreements with, 
local educational agencies, State educational agencies, State agencies 
for higher education, educational service agencies, institutions of 
higher education, and other public and private agencies, other 
organizations, and institutions to--
            ``(1) support activities of national significance that will 
        contribute to the development and implementation of high-
        quality professional development activities in the core 
        academic subject areas;
            ``(2) support the development of challenging curriculum 
        that is aligned with State or local content and performance 
        standards; and
            ``(3) evaluate activities carried out under this subpart 
        and under subpart 2.
    ``(b) Coordination With Other Agencies.--In carrying out this 
program, the Secretary shall consult and coordinate with the National 
Science Foundation, the National Endowment for the Humanities, the 
National Endowment for the Arts, and other appropriate Federal agencies 
and entities.

``SEC. 2112. AUTHORIZED ACTIVITIES.

    ``(a) The Secretary shall use funds available to carry out this 
subpart--
            ``(1) to provide seed money to eligible entities to develop 
        their capacity to offer sustained and intensive high-quality 
        professional development;
            ``(2) for the development and maintenance of a national 
        clearinghouse for science, mathematics, and technology 
        education materials which shall be administered as an adjunct 
        clearinghouse of the ERIC system of clearinghouses supported by 
        the Office of Educational Research and Improvement;
            ``(3) to support consortia of educational agencies and 
        organizations in disseminating information and providing 
        assistance regarding curricula, teaching methods, and 
        assessment tools that support national or State content 
        standards in mathematics and science; and
            ``(4) the evaluation of programs under this subpart and 
        under subpart 2.
    ``(b) The Secretary may use funds available to carry out this 
subpart--
            ``(1) for 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 ERIC system of clearinghouses 
        supported by the Office of Educational Research and 
        Improvement;
            ``(2) to provide grants to entities to develop high quality 
        curricula that are aligned with voluntary national or State 
        content standards;
            ``(3) to sponsor institutes that provide teachers and 
        administrators with professional development that is based on 
        strong and integrated disciplinary content and pedagogical 
        components;
            ``(4) for efforts to train teachers in the innovative uses 
        and applications of technology to enhance student learning;
            ``(5) to encourage the development of local and national 
        professional networks of educators;
            ``(6) to disseminate standards in the core academic 
        subjects, including information on voluntary national content 
        and performance standards and related models of high-quality 
        professional development;
            ``(7) for efforts to train teachers in innovative uses of 
        applied learning strategies such as service learning;
            ``(8) to disseminate 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 performance standards;
            ``(9) to promote the transferability of licensure and 
        certification of teachers and administrators among State and 
        local jurisdictions; and
            ``(10) to support the National Board for Professional 
        Teaching Standards.
    ``(c) In carrying out subsection (a), the Secretary shall ensure 
that each program, project, and activity contained in such subsection 
receives an allocation that is no less than the amount that each such 
program, project, or activity received in fiscal year 1994.

                ``Subpart 2--State and Local Activities

``SEC. 2121. 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 and the 
development by teachers and others of high-quality curricula that are 
aligned with State or local content and performance standards.

``SEC. 2122. ALLOCATION OF FUNDS.

    ``(a) Reservation of Funds.--From the amount made available to 
carry out this subpart for any fiscal year, the Secretary shall--
            ``(1) reserve one half of one percent for the outlying 
        areas, to be distributed among them on the basis of relative 
        need, as determined by the Secretary in light of the purposes 
        of this part; and
            ``(2) reserve one half of one percent for the Secretary of 
        the Interior for programs under this subpart for professional 
        development activities for teachers, other staff, and 
        administrators in schools operated or funded by the Bureau of 
        Indian Affairs.
    ``(b) State Allotments.--The Secretary shall allocate the remaining 
amount 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 one-half of one percent of such remaining amount:
            ``(1) 50 percent shall be allocated among such 
        jurisdictions on the basis of their relative populations of 
        individuals aged 5 through 17, as determined by the Secretary 
        on the basis of the most recent satisfactory data.
            ``(2) 50 percent shall be allocated among such 
        jurisdictions in accordance with the relative amounts such 
        jurisdictions received under part A of title I of this Act for 
        the preceding fiscal year.
    ``(c) Reallocation.--If any jurisdiction does not apply for its 
allotment under subsection (b) for any fiscal year, the Secretary shall 
reallocate such amount to the remaining jurisdictions in accordance 
with such subsection.

``SEC. 2123. WITHIN-STATE ALLOCATIONS.

    ``(a) Reservations.--Of the amounts received by a State under this 
subpart for a fiscal year--
            ``(1) not more than 5 percent shall be used for the 
        administrative costs of programs carried out by the State 
        educational agency and the State agency for higher education;
            ``(2) not more than 5 percent may be used for State-level 
        activities, as described in section 2125; and
            ``(3) of the remaining amount--
                    ``(A) 87 percent shall be distributed to local 
                educational agencies, to be used in accordance with 
                section 2129, as follows:
                            ``(i) 50 percent of such amount shall be 
                        distributed in accordance with the relative 
                        enrollments in public and private nonprofit 
                        schools within their boundaries.
                            ``(ii) 50 percent of such amount shall be 
                        distributed in accordance with the relative 
                        amount such agencies received under part A of 
                        title I of this Act for the preceding fiscal 
                        year; and
                    ``(B) 13 percent shall be used for competitive 
                grants to institutions of higher education as described 
                in section 2129.
    ``(b) Limitation.--
            ``(1) General rule.--Except as provided in paragraph (2), 
        any local educational agency that receives an allocation of 
        less than $10,000 under subsection (a) shall, for the purpose 
        of providing services under this subpart, form a consortium 
        with at least 1 other local educational agency or institution 
        of higher education receiving assistance under this section.
            ``(2) Waiver.--The State educational agency shall waive the 
        application of paragraph (1) in the case of any local 
        educational agency that demonstrates that the amount of its 
        allocation 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--
                    ``(A) give special consideration to local 
                educational agencies serving rural areas; and
                    ``(B) 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.

``SEC. 2124. STATE APPLICATIONS.

    ``(a) Applications Required.--Each State educational agency that 
wishes to receive its allotment under this subpart for any fiscal year 
shall submit an application to the Secretary at such time and in such 
form as the Secretary may require.
    ``(b) State Plan To Improve Teaching and Learning--(1) Each 
application under this section shall include a State plan that--
            ``(A) is integrated with the State's plan, either approved 
        or being developed, under title III of the Goals 2000: Educate 
        America Act, and satisfies the requirements of this section 
        that are not already addressed by that State plan; or
            ``(B) if the State does not have an approved plan under 
        title III of the Goals 2000: Educate America Act and is not 
        developing such a plan, is integrated with other State plans 
        under this Act and satisfies the requirements of this section.
    ``(2) Each such plan shall also--
            ``(A) be developed in conjunction with the State agency for 
        higher education, institutions of higher education, schools of 
        education, and with the extensive participation of teachers and 
        administrators and members of the public who are interested in 
        improving education in the State and show the role of each in 
        implementation;
            ``(B) be designed to give teachers and administrators in 
        the State the knowledge and skills to provide all students the 
        opportunity to meet challenging State performance standards;
            ``(C) include an assessment of State and local needs for 
        professional development and for the development of curricula 
        that are aligned with State or local content and performance 
        standards;
            ``(D) include a description of how the plan has assessed 
        the needs of local education agencies serving rural areas, and 
        what actions are planned to meet those needs;
            ``(E) include a description of how the plan has maintained 
        funding for professional development activities in mathematics 
        and science education;
            ``(F) include a description of how the activities funded 
        under this subpart will address the needs of teachers in 
        schools receiving assistance under part A of title I of this 
        Act;
            ``(G) 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 the disabled, by incorporating pedagogical 
        strategies and techniques which meet their educational need;
            ``(H) if the State's needs assessment under subsection (C) 
        demonstrates a need for professional development, describe how 
        the State will--
                    ``(i) work with teachers, including teachers in 
                schools receiving assistance under part A of title I of 
                this Act, administrators, local educational agencies, 
                schools, and institutions of higher education to ensure 
                that they develop the capacity to support sustained and 
                intensive, high-quality professional development 
                programs in all the core academic subject areas, but 
                especially in mathematics and science;
                    ``(ii) take specific steps to review and, if 
                necessary, reform State requirements for licensure of 
                teachers and administrators, including certification 
                and recertification, to align such requirements with 
                challenging State content and performance standards; 
                and
                    ``(iii) address the need for improving teaching and 
                learning through teacher development beginning with 
                recruitment, pre-service, and induction, and continuing 
                throughout the professional teaching career; and
            ``(I) if the State's needs assessment under subparagraph 
        (C) demonstrates a need for curricula development, describe--
                    ``(i) a strategy for engaging teachers in the 
                development of curricula that are aligned with State or 
                local content and performance standards; and
                    ``(ii) how the State will also work with 
                administrators, parents, school board members, and 
                other members of the community in developing high 
                quality curricula that are aligned with State or local 
                content and performance standards.
    ``(c) Additional Material.--Each State application shall also 
include--
            ``(1) a description of how the activities funded under this 
        subpart 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;
                    ``(B) State and local funds;
                    ``(C) resources from business and industry; and
                    ``(D) funds 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, and the National 
                Endowment for the Humanities; and
            ``(2) a description of the activities to be sponsored under 
        the State-level activities and the higher education components 
        of its program under this subpart.
    ``(d) Peer Review and Secretarial Approval.--(1) The Secretary 
shall approve the application of a State educational agency if it meets 
the requirements of this section and holds reasonable promise of 
achieving the purposes of this part.
    ``(2) In reviewing applications, 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. 2125. STATE-LEVEL ACTIVITIES.

    ``Each State may use funds reserved under section 2123(a)(2) to 
carry out activities referred to in section 2124(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 content standards and ensure that teachers and 
        administrators have the knowledge and skills necessary to help 
        students meet challenging State 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 of 
        this Act, to help such schools and agencies provide effective 
        professional development in the core academic subjects and 
        develop high quality curricula;
            ``(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 
        assessment and pedagogy;
            ``(5) supporting partnerships between schools, consortia of 
        schools, or local education agencies and institutions of higher 
        education, including but not limited to schools of education, 
        which would encourage teachers to participate in intensive, 
        ongoing professional development programs, both academic and 
        pedagogical, at institutions of higher education, and to 
        encourage students at institutions of higher education studying 
        to become teachers to have direct, practical experience at the 
        schools;
            ``(6) enhancing the effective use of educational technology 
        as an instructional tool for increasing student understanding 
        of the core academic subject areas including--
                    ``(A) efforts to train teachers in the innovative 
                uses and application of instructional technology;
                    ``(B) utilizing and strengthening existing 
                telecommunications infrastructure dedicated to 
                educational purposes; and
                    ``(C) efforts to train teachers in methods for 
                achieving gender equity both in access to and teaching 
                practices used in the application of educational 
                technology;
            ``(7) providing incentives for teachers to be involved in 
        curriculum development and technical assistance processes for 
        teachers and students;
            ``(8) professional development enabling teachers and other 
        school staff to ensure that girls, young women, minorities, 
        limited English proficient students, individuals with 
        disabilities, and economically disadvantaged individuals have 
        the opportunity to achieve challenging State performance 
        standards in the core academic subjects by, for example, 
        encouraging girls, young women, and minorities to pursue 
        advanced courses in mathematics and science;
            ``(9) designing professional development activities that 
        increase the numbers of members of minority and other 
        underrepresented groups in the teaching force in the core 
        subjects;
            ``(10) developing high quality curriculum that is aligned 
        with State or local content and performance standards; and
            ``(11) providing financial or other incentives for teachers 
        to become certified by the National Board for Professional 
        Teaching Standards.

``SEC. 2126. LOCAL PLAN AND APPLICATION FOR IMPROVING TEACHING AND 
              LEARNING.

    ``(a) Local Application.--(1) Each local educational agency that 
wishes to receive a subgrant under this subpart shall submit an 
application (singly or as a consortia as described in section 2123(b)) 
to the State educational agency at such time as the State educational 
agency shall require, but not less frequently than every 3rd year.
    ``(2) If the local educational agency has an application approved 
by the State under title III of the Goals 2000: Educate America Act, 
the application required by this section shall be a component of (or, 
if necessary, an addendum to) its Goals 2000 application.
    ``(3) A local education agency shall set specific performance 
indicators for improving teaching and learning through professional 
development and curriculum development.
    ``(4) A local educational agency shall submit, as part of its 
application, the results of the needs assessment conducted under 
subsection (b), and the local educational agency plan developed in 
accordance with subsection (c).
    ``(b) Needs Assessment.--(1) A local educational agency that wishes 
to receive a subgrant under this subpart shall include in its 
application an assessment of such agency's need for professional 
development, for the development of high quality curricula that are 
aligned with State or local content and performance standards.
    ``(2) Such needs assessment shall be carried out with the 
involvement of teachers, including teachers in schools receiving 
assistance under part A of title I of this Act, and shall take into 
account what activities need to be conducted in order to give teachers 
and administrators the means, including the knowledge and skills, to 
provide students with the opportunity to meet challenging State or 
local performance standards.
    ``(c) Plan Development.--(1) The plan required under this 
subsection shall be developed jointly by the local educational agency 
and by teachers from the core academic disciplines.
    ``(2) Such 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 of this Act.
    ``(3) Based on the needs assessment required under subsection (b), 
the local educational agency's plan shall include the following--
            ``(A) a description of the local educational agency's 
        strategy to improve teaching and learning in every school;
            ``(B) a description of how the plan contributes to the 
        local educational agency's overall efforts for school reform 
        and educational improvement;
            ``(C) a description of the activities the local educational 
        agency intends to undertake under this subpart consistent with 
        such agency's needs assessment conducted under subsection (b);
            ``(D) a description of how the plan has maintained funding 
        for professional development activities in mathematics and 
        science education;
            ``(E) 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 of this Act;
            ``(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 the disabled, by incorporating pedagogical 
        strategies and techniques which meet their educational need;
            ``(G) an assurance that the activities conducted with funds 
        received under this program will be assessed at least every 3 
        years using the performance indicators; and
            ``(H) a description of how the program funded under this 
        subpart will be coordinated, as appropriate, with--
                    ``(i) activities conducted under section 2130 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 parts of this Act, particularly part B of 
                title II;
                    ``(iv) resources from business, industry, 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 disciplines);
                    ``(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 National Endowment for the 
                Humanities, and the National Endowment for the Arts; 
                and
                    ``(vi) an identification of funding that will 
                provide the local educational agency's contribution 
                under section 2127.

``SEC. 2127. LOCAL COST SHARING.

    ``(a) In General.--Each local educational agency shall bear not 
less than 33 percent of the cost of any program carried out under this 
subpart, but not including the cost of services provided to private 
schoolteachers.
    ``(b) Available Resources for Cost-Sharing.--A local educational 
agency may meet the requirements of subsection (a) through one or more 
of the following:
            ``(1) Cash expenditures from non-Federal sources, including 
        private contributions, directed toward professional development 
        and curriculum development activities.
            ``(2) Release time for teachers participating in 
        professional development or curricula development funded under 
        this subpart.
            ``(3) Funds received under one or more of the following 
        programs, if used for professional development or curricula 
        development activities consistent with this subpart and 
        consistent with the statutes under which such funds are 
        provided, then such funds must be used for the benefit of 
        students and teachers in the schools that would otherwise have 
        been served with such funds:
                    ``(A) Part A of title I of this Act.
                    ``(B) The Safe and Drug Free Schools program under 
                title IV of this Act.
                    ``(C) The bilingual education program under title 
                VII of this Act.
                    ``(D) The Women's Educational Equity Program under 
                title III of this Act.
                    ``(E) Title III of the Goals 2000: Educate America 
                Act.
                    ``(F) Programs that are related to the purposes of 
                this Act that are administered by other agencies, 
                including the National Science Foundation, the National 
                Endowment for the Humanities, the National Endowment 
                for the Arts, and the Department of Energy.
    ``(c) Waiver.--The State educational agency may approve an 
application which has not fully met the requirements of subsection (a) 
and waive the requirements of subsection (a) if a local educational 
agency can demonstrate that it is unable to meet the requirements of 
subsection (a) due to economic hardship and that compliance with such 
requirements would preclude its participation in the program.

``SEC. 2128. LOCAL ALLOCATION OF FUNDS AND ALLOWABLE ACTIVITIES.

    ``(a) Local Allocation of Funds.--Each local educational agency 
that receives funds under this subpart for any fiscal year--
            ``(1) shall use not less than 80 percent of such funds 
        for--
                    ``(A) professional development of teachers, 
                principals, and other instructional staff who work 
                directly with children; and
                    ``(B) engaging teachers and other staff in the 
                development of high quality curricula aligned with 
                State and local content and performance standards, in a 
                manner that is determined by such teachers and staff 
                and is consistent with the provisions of such local 
                educational agency's application under section 2126, 
                any school plan under part A of title I of this Act, 
                and any other plan for professional development or 
                curricula development carried out with Federal, State, 
                or local funds; and
            ``(2) may use not more than 20 percent of such funds for 
        district-level professional or curricula development 
        activities, which may include the participation of 
        administrators and policymakers if such activities directly 
        support instructional personnel.
    ``(b) Authorized Activities.--Each local educational agency and 
school that receives funds under this subpart shall use such funds for 
activities that give teachers and administrators the knowledge and 
skills to provide students with the opportunity to meet challenging 
State or local content and performance standards. Funds received by 
local educational agencies under this subpart only shall be used for 
the activities specified under subsections (c) and (d). No less than 80 
percent of those funds shall be used for activities under subsection 
(c) and not more than 20 percent for activities under subsection (d).
    ``(c) Professional Development.--If a needs assessment conducted 
under section 2126(b) determines that funds under this subpart should 
be used to provide professional development in the core academic 
subjects for teachers and other school staff, the local educational 
agency shall use such funds for professional development for teachers 
and other staff to support teaching consistent with State, or local 
content standards, and shall, to the extent practicable, coordinate 
such activities with institutions of higher education and activities 
under section 2129:
            ``(1) Professional development activities funded under this 
        subpart shall--
                    ``(A) be tied to challenging State or local content 
                and student performance standards;
                    ``(B) reflect recent research on teaching and 
                learning;
                    ``(C) incorporates 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 performance standards;
                    ``(D) include strong academic content and 
                pedagogical components;
                    ``(E) be of sufficient intensity and duration to 
                have a positive and lasting impact on the teacher's 
                performance in the classroom; and
                    ``(F) be part of the everyday life of the school 
                and create an orientation toward continuous improvement 
                throughout the school.
            ``(2) Funds under this subpart may be used for professional 
        development activities such as--
                    ``(A) professional development for teams of 
                teachers, administrators, or other staff from 
                individual schools, to support teaching consistent with 
                State or local content standards;
                    ``(B) support and time for teachers and other 
                school staff to participate in professional development 
                in the core subjects offered through professional 
                associations, universities, community-based 
                organizations, and other providers including museums 
                and educational partnership organizations;
                    ``(C) activities that provide followup for teachers 
                who have participated in professional development 
                activities that are designed to ensure that knowledge 
                and skills learned by the teacher are implemented in 
                the classroom;
                    ``(D) support for partnerships between schools, 
                consortia of schools, or local education agencies and 
                institutions of higher education, including but not 
                limited to schools of education, which would encourage 
                teachers to participate in intensive, ongoing 
                professional development programs, both academic and 
                pedagogical, at institutions of higher education, and 
                to encourage students at institutions of higher 
                education studying to become teachers to have direct, 
                practical experience at the 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) activities to prepare teachers in the 
                effective use of educational technology as an 
                instructional tool for increasing student understanding 
                of the core academic subject areas;
                    ``(G) activities to enable teachers to ensure that 
                girls, young women, minorities, limited-English 
                proficient students, individuals with disabilities, and 
                economically disadvantaged individuals the opportunity 
                to achieve the challenging State performance standards 
                in the core academic subjects;
                    ``(H) professional development and recruitment 
                activities designed to increase the number of 
                minorities, individuals with disabilities, and females 
                teaching in the core academic subject in which they are 
                underrepresented;
                    ``(I) the development of incentive strategies for 
                rewarding schools where a substantial portion of the 
                teachers achieve certification by the National Board 
                for Professional Teaching Standards; and
                    ``(J) other sustained and intensive high-quality 
                professional development activities in the core 
                academic subjects.
    ``(d) Curriculum Development.--(1) If the needs assessment of a 
local educational agency determines that funds under this subpart 
should be used for curriculum development, such agency shall use the 
funds provided to develop high quality curricula that is aligned with 
State or local content and performance standards.
    ``(2) Funds may be used to purchase the curriculum materials to the 
extent such materials are essential components of the local educational 
agency's plan to improve teaching and learning in the core academic 
subjects.

``SEC. 2129. HIGHER EDUCATION ACTIVITIES.

    ``(a) General.--(1) The State agency for higher education, working 
in conjunction with the State educational agency (if it is a separate 
agency), shall make grants to, or enter into contracts or cooperative 
agreements with, institutions of higher education and nonprofit 
organizations including museums and educational partnership 
organizations, which demonstrate consultation and cooperation with a 
local education agency, consortium of local education agencies, or 
schools, for--
                    ``(A) professional development activities in the 
                core academic subject areas that contribute to the 
                State plan for professional development;
                    ``(B) engaging teachers in the development of high-
                quality curricula that are aligned with State or local 
                content and performance standards;
                    ``(C) developing and providing assistance to local 
                education agencies, and the teachers and staff of each 
                such agency, for sustained, high-quality professional 
                development activities; and
                    ``(D) 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 education 
                agencies for well-prepared teachers;
    ``(2) All such awards shall be made on a competitive basis.
    ``(3) No institution of higher education may receive assistance 
under subsection (a)(1) of this subsection unless the institution 
enters into an agreement with a local education 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) Each project funded under this section shall involve a joint 
effort of the recipient's school or department of education and the 
schools or departments in the specific disciplines in which assistance 
may be provided.
    ``(b) Allowable Activities.--A recipient of funds under this 
section shall use those funds for--
            ``(1) sustained and intensive high-quality professional 
        development for teams of teachers, or teachers and 
        administrators from individual schools or districts;
            ``(2) other sustained and intensive professional 
        development activities related to achievement of the State plan 
        for professional development such as--
                    ``(A) establishment and maintenance of professional 
                networks of teachers that provide a forum for 
                interaction among teachers and that allow exchange of 
                information on advances in content and pedagogy;
                    ``(B) programs that prepare teachers to be 
                effective users of information technology, able to 
                integrate technology into their pedagogy and their 
                instructional practices, and able to enhance their 
                curricular offerings by appropriate applications of 
                technology;
                    ``(C) programs that utilize information technology 
                to deliver sustained and intensive high quality 
                professional development activities for teachers;
                    ``(D) activities to enable teachers to ensure that 
                girls, young women, minorities, limited-English 
                proficient students, individuals with disabilities, and 
                economically disadvantaged individuals have the 
                opportunity to achieve the challenging State 
                performance standards in the core academic subjects;
                    ``(E) professional development and recruitment 
                activities designed to increase the number of 
                minorities, individuals with disabilities, and other 
                underrepresented groups teaching in the core academic 
                subjects, particularly in mathematics and science;
                    ``(F) establishment of professional development 
                academies operated as partnerships between one or more 
                elementary or secondary schools and one or more 
                institutions of higher education to provide school-
                based teacher training that provides prospective, 
                novice, and experienced teachers with an opportunity to 
                work under the guidance of master teachers and college 
                faculty members; and
                    ``(G) technical assistance to local educational 
                agencies in providing sustained and intensive high 
                quality professional development activities for 
                teachers.

                    ``Subpart 3--General Provisions

``SEC. 2131. REPORTING AND ACCOUNTABILITY.

    ``(a) States.--Each State that receives funds under this part shall 
submit a report to the Secretary every 3 years on the State's progress 
toward the performance indicator identified in its State plan, as well 
as on the effectiveness of State and local activities under this part.
    ``(b) Local Educational Agencies.--Each local educational agency 
that receives funds under this part shall submit a report to the State 
every 3 years on its progress toward the outcome performance indicators 
in its plan.
    ``(c) Federal Evaluation.--The Secretary shall report to the 
President and Congress on the effectiveness of programs and activities 
funded under this part.
    ``(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. 2132. DEFINITIONS.

    ``As used in this part, the following terms have the following 
meanings:
            ``(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 National Education Goal 
        Three as set out 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 to assist their 
        students to meet challenging State standards in the core 
        academic subject areas. Examples of such indicators include--
                    ``(A) the degree to which licensure requirements 
                are tied to State standards;
                    ``(B) specific increases in the number of 
                elementary and secondary teachers with strong content 
                backgrounds in the core academic subjects;
                    ``(C) incorporates 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 performance standards; and
                    ``(D) specific increases in the number of Board 
                certified teachers licensed in each core subject.
            ``(3) The term `sustained and intensive high-quality 
        professional development' means professional development 
        activities that--
                    ``(A) are tied to challenging State or voluntary 
                national content and performance standards;
                    ``(B) reflect up-to-date research in teaching and 
                learning and include integrated content and pedagogical 
                components;
                    ``(C) incorporates 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 
                assure that all students have the opportunity to 
                achieve challenging 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.
            ``(4) The term `local standard' means challenging content 
        and performance standards in the core subjects (in addition to 
        State content and performance standards approved by the State 
        for title I).

               ``PART B--TECHNOLOGY EDUCATION ASSISTANCE

    ``Subpart 1--Assistance to State and Local Educational Agencies

``SEC. 2201. SHORT TITLE.

    ``This title may be cited as the `Technology Education Assistance 
Act of 1994'.

``SEC. 2202. FINDINGS.

    ``The Congress finds that--
            ``(1) technology can produce far greater opportunities for 
        all students to learn to high standards and promote efficiency 
        and effectiveness in education;
            ``(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 the absence 
        of Federal leadership, the inability of many State and local 
        educational agencies to invest in and support needed 
        technologies, and the limited availability of appropriate 
        technology-enhanced curriculum, instruction, teacher training, 
        and administrative support resources and services in the 
        educational marketplace;
            ``(4) educational equalization concerns and school 
        restructuring needs can be addressed through educational 
        telecommunications and technology by offering universal access 
        to high-quality teaching and programs, particularly in urban 
        and rural areas;
            ``(5) in the absence of appropriate educational technology 
        policies, the disparity between rich and poor students will 
        become even greater in a world where technology and 
        telecommunications increasingly have become an integral part of 
        many households;
            ``(6) the increasing use of new technologies and 
        telecommunications systems in business and industry has 
        furthered the gap between schooling and work force preparation;
            ``(7) telecommunications can be a conduit for ongoing 
        teacher training and improved professional development by 
        providing to teachers constant access to updated research in 
        teaching and learning;
            ``(8) research consistently shows that the planned use of 
        technology combined with teachers who are adequately trained in 
        its use can increase opportunities for more students to develop 
        higher order thinking and technical skills than is possible 
        with traditional instruction;
            ``(9) technology can engage students in learning through 
        media with which they are comfortable, and prove to be an 
        effective learning tool, particularly when correlated with 
        State and national curriculum standards;
            ``(10) schools need new ways of financing the acquisition 
        and maintenance of educational technology; and
            ``(11) the needs for educational technology differ from 
        State to State.

``SEC. 2203. STATEMENT OF PURPOSE.

    ``The purpose of this Act 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;
            ``(2) funding mechanisms which will support the 
        development, interconnection, implementation, improvement and 
        maintenance of an effective educational technology 
        infrastructure;
            ``(3) information dissemination networks to facilitate 
        access to information on effective learning programs, 
        assessment and evaluation of such programs, research findings, 
        and supporting resources (including instructionally based, 
        technology-enhanced programs, research and resources) by 
        educators throughout the United States;
            ``(4) an extensive variety of opportunities for teacher, 
        inservice training, and administrative training and technical 
        assistance with respect to effective uses of technologies in 
        education;
            ``(5) utilizing and strengthening, not duplicating, 
        existing telecommunications infrastructures dedicated to 
        educational purposes;
            ``(6) development and evaluation of new and emerging 
        educational technologies and telecommunications networks;
            ``(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 on for decisionmaking about the need for, and 
        provision of, appropriate technologies for education in the 
        United States; and
            ``(8) authorize grants to States that--
                    ``(A) improve the academic performance of students 
                through technology;
                    ``(B) strengthen the skills of teachers in 
                effectively utilizing technology for student learning;
                    ``(C) promote the planned application of technology 
                in education by those who will use the technology; and
                    ``(D) encourage collaborative relationships between 
                the State agency for higher education, the State 
                library administrative agency and the State 
                telecommunications agency for education and the State 
                educational agency in the area of technology support to 
                strengthen the system of education.

``SEC. 2204. DEFINITIONS.

    ``For purposes of this title--
            ``(1) the terms `library' and `State library administrative 
        agency' shall have the same meaning given to such terms in 
        section 3 of the Library Services and Construction Act (Public 
        Law 84-579);
            ``(2) the term `Regional Education Laboratory' shall have 
        the same meaning given to such term in section 405 of the 
        Department of Education Organization Act (Public Law 96-88);
            ``(3) the term `technology' includes closed circuit 
        television systems, public telecommunications entities, cable 
        television, satellite, copper and fiber optic transmission, 
        computer, video and audio laser and CD ROM disc, video and 
        audio tapes or other technologies;
            ``(4) the term `credit enhancement' means a financial 
        arrangement that enhances the credit quality of the issuer or 
        the financial instrument being used; and
            ``(5) the term `interoperability' means the ability to 
        communicate with operating systems developed nationally and 
        internationally using multiple network media.

``SEC. 2205. IN-STATE APPORTIONMENT.

    ``(a) Authorizations.--The Secretary is authorized to make grants 
to States in accordance with the provisions of this title to strengthen 
the skills of educators and improve learning through the use of 
technology.
    ``(b) Elementary, Secondary Education Programs.--(1) For each 
fiscal year, an amount equal to 70 percent of each State's allotment 
under section 2212(a)(2) shall be used for elementary and secondary 
education programs by the State educational agency in accordance with 
section 2206.
    ``(2) Not less than 90 percent of a State's allotment under this 
subsection shall be available to local educational agencies including 
services to adults and families of which not more than 5 percent of the 
funds available to the local educational agency for any fiscal year may 
be used for local administration.
    ``(3) Not more than 10 percent of the amount allocated under 
subsection (a) may be used by the State educational agency for 
technical assistance and administrative costs of which not less than 50 
percent shall be used for technical assistance.
    ``(c) Higher Education Programs.--(1) For each fiscal year 20 
percent of each State's allotment under section 2212(a)(2) shall be 
used by the State higher education agency designated in the State plan 
for partnership programs between local educational agencies, including 
educational services to adults and families and higher education 
institutions in accordance with section 2207.
    ``(2) Not less than 90 percent of the amount available for this 
subsection shall be used by the State for grants to institutions of 
higher education for partnership programs in accordance with the 
provisions of section 2207.
    ``(3) Not more than 10 percent of the amount allocated to the 
State's higher education partnership program under this section, may be 
used for the costs incurred for the evaluation of programs assisted 
under section 2207; and for administrative costs of the State's higher 
education agency designated in the State plan.
    ``(d) Library and Literacy Programs.--(1) For each fiscal year 10 
percent of each State's allocation under section 2212(a)(2) shall be 
used by the State library administrative agency to support 
collaborative activities among libraries, literacy programs, and local 
educational agencies in accordance with section 2208.
    ``(2) Not less than 90 percent of the amount available for this 
section shall be used by the State for grants to local public libraries 
and literacy programs in accordance with the provisions of section 
2208.
    ``(3) Not more than 10 percent of the amount available under this 
section may be used by the State for the costs incurred for evaluation 
of programs assisted under section 2208 and for administrative costs of 
the State library administrative agency.

``SEC. 2206. ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.

    ``(a) In General.--The amount apportioned under section 2205(b) 
from each State's allotment shall be used by the State educational 
agency to strengthen elementary and secondary education programs in 
accordance with the provisions of this section.
    ``(b) Local Educational Agencies.--(1) Each local educational 
agency, including educational services for adults and families, shall 
use the educational technology funds available under section 2205(b)(2) 
for--
            ``(A) developing, adapting, or expanding existing and new 
        applications of technology to support the school reform effort; 
        and
            ``(B) funding projects of sufficient size and scope to 
        improve student learning and, as appropriate, support 
        professional development, and provide administrative support.
    ``(2) To be eligible to receive educational technology funds under 
this section for school or other school managed alternative learning 
environment, a local educational agency must submit an application to 
the State educational agency. If the local educational agency has an 
application approved by the State under title III of the Goals 2000: 
Educate America Act, the application required by this section shall be 
a component of (or if necessary an addendum to) its Goals 2000 
application. The local educational agency must also receive State 
approval of a technology use plan which includes--
            ``(A) a description of how the local educational agency 
        plans to use the financial assistance received under section 
        2205(b)(2) to improve the use of technology in instruction, 
        professional development and administration;
            ``(B) a description of how funds under section 2205(b)(2) 
        will be coordinated with other State, local and Federal 
        resources;
            ``(C) a description of how the school programs will use 
        other resources of the community and involve public agencies, 
        private industry, institutions of higher education, public and 
        private nonprofit organizations, and other appropriate 
        institutions;
            ``(D) assurances that the programs will be evaluated and 
        outcomes reported in terms of the level of implementation of 
        the technology-based resources funded by this title, the impact 
        on teaching and learning, the changes in the school program, 
        and the extent to which the school will sustain the project 
        after funding is terminated;
            ``(E) a description of how the plan will support State and 
        local content and performance standards;
            ``(F) provisions to support, as needed, individual teachers 
        to develop and implement technology-based intervention 
        projects, including those which respond to the needs of 
        students with disabilities;
            ``(G) a description of how the financial assistance will be 
        used as appropriate for the expansion and improvement of 
        professional development of teachers and other appropriate 
        personnel regarding the use of technology, including the 
        educational use of computers, videos, and telecommunications to 
        enhance learning such training and instruction may be carried 
        out through agreements with public agencies, private industry, 
        institutions of higher education, regional educational 
        laboratories and national research centers, nonprofit 
        organizations, (including museums) libraries, educational 
        television stations;
            ``(H) a description of a strategy for the enhanced 
        involvement of parents through the use of technology; and
            ``(I) a description of how the plan will address the needs 
        of students with disabilities.
    ``(3) 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 appropriate educational entities 
to provide local programs. The State educational agency may assist in 
the formation of consortia between 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.

``SEC. 2207. HIGHER EDUCATION PROGRAMS.

    ``(a) In General.--The amount apportioned under section 2205(c) 
from each State's allotment shall be used by the State for education 
programs in accordance with the provisions of this section.
    ``(b) Grants to Institutions of Higher Education.--(1) The State 
agency for higher education, in accordance with the State educational 
technology plan filed under section 2209, shall make grants available 
on a competitive basis to institutions of higher education in the State 
which form partnerships with one or more local educational agencies.
    ``(2) The amount available under section 2205(c)(2) shall be used 
for--
            ``(A) professional development for new teachers in the use 
        of technology as an educational tool;
            ``(B) professional development for elementary, secondary, 
        adult and family, and vocational school teachers and training 
        for other appropriate school personnel to improve their ability 
        to use educational technology in their teaching; and
            ``(C) programs to improve student performance in academic 
        and work skill areas through the use of technology.
    ``(3) No institution of higher education may receive assistance 
under paragraph (2)(A), (B), and (C) unless the institution enters into 
an agreement with a local educational agency, or consortium of such 
agencies, to provide professional development for the elementary and 
secondary school teachers in the public and private schools of the 
school district of each agency.
    ``(c) Cooperative Program.--The State higher education agency may 
use funds described in section 2205(c)(2) to achieve the objectives of 
section 2207 by establishing cooperative programs among institutions of 
higher education, private industry, and non-profit organizations, that 
include one or more local education agencies, for the development and 
dissemination of projects to improve student performance in academic or 
work skill areas.
    ``(d) Reporting.--In accordance with section 2205(c), 5 percent of 
the funding available for higher education partnerships may be used by 
the agency for higher education for evaluating the programs funded 
under this section. Reports on the progress of programs shall be 
provided to the State educational agency annually.

``SEC. 2208. LIBRARY AND LITERACY PROGRAMS.

    ``(a) In General.--Except as provided in paragraph (2), the amount 
apportioned under section 2205(d) from each State's allotment under 
this section shall be used by the State to assist literacy and 
education programs in accordance with the provisions of this section.
    ``(b) Grants to Local Public Libraries.--(1) In accordance with the 
State education technology plan filed under section 2209, the State 
library administrative agency shall make grants available on a 
competitive basis to local public libraries in the State which 
demonstrate involvement of one or more local educational agencies and 
literacy programs or organizations in their activities.
    ``(2) The amount available under section 2205(d)(2) shall be used 
for--
            ``(A) developing programs that help libraries, local 
        educational agencies, and literacy programs use technology to 
        share services and resources and develop collaborative 
        activities that improve their performance and that of the 
        students in academic and work skill areas; and
            ``(B) professional development for library, literacy, and 
        other appropriate personnel to improve their skills in the use 
        of educational technology and telecommunications.
    ``(c) Cooperative Program.--The State library administration agency 
may use funds described in section 2205(d)(2) to achieve the objectives 
of section 2208 by establishing cooperative programs among public 
libraries, literacy organizations, private industries, and nonprofit 
education organizations, if such programs include one or more local 
educational agencies.
    ``(d) Reporting.--In accordance with section 2205(d), funding 
available for library and literacy programs may be used by the library 
administrative agency for reporting and evaluating the programs funded 
under this section. Reports on the progress of programs shall be 
provided to the State educational agency annually.

``SEC. 2209. STATE EDUCATIONAL TECHNOLOGY PLAN.

    ``(a) Application.--(1) Each State educational agency which desires 
to receive a grant under this title shall, in consultation with the 
State agency for higher education and the State library administrative 
agency, file a single educational technology plan with the Secretary of 
Education which covers a period of 5 fiscal years. The State 
educational agency shall be responsible for funding, supervising, and 
coordinating programs described under this title and shall file the 
educational technology plan at such time, in such manner, and 
containing or accompanied by such financial, educational and 
technological information as this section requires or as the Secretary 
may reasonably require.
    ``(2) Such plan shall be--
            ``(A) integrated with the State's plan either approved or 
        being developed under the Goals 2000: Educate America Act, and 
        shall satisfy the requirements of this section that are not 
        already addressed by that State plan; or
            ``(B) if the State does not have an approved plan under the 
        Goals 2000: Educate America Act and is not developing such a 
        plan, integrated with other State plans under this Act and 
        satisfy the requirements of this section.
    ``(b) Contents of the Plan.--Each such plan shall--
            ``(1) designate the State agency or agencies responsible 
        for administering the elementary and secondary adult and family 
        programs under section 2206, and the higher education programs 
        under section 2207 and designate the State library 
        administrative agency to administer the library and literacy 
        programs under section 2208 in support of improved student 
        learning;
            ``(2) describe a financial plan developed by the State 
        educational agency, which shall describe--
                    ``(A) financial assistance mechanisms to best fit 
                the technology needs of the State. Such mechanisms, 
                which must be included in the plan, may include, but 
                not be limited to--
                            ``(i) grants;
                            ``(ii) matching grants;
                            ``(iii) loans;
                            ``(iv) loan guarantees; and
                            ``(v) other credit enhancements.
                    ``(B) describe criteria and approving procedures 
                for submitting applications for programs described in 
                sections 2206, 2207, and 2208 for funding assistance 
                under section 2205 within the State;
                    ``(C) delineate processes for auditing and 
                monitoring the use of funds by recipients;
                    ``(D) describe priorities for awarding funds under 
                various funding mechanisms; and
                    ``(E) construe nothing in subsection (b)(2) to 
                implicitly or explicitly imply that the funds made 
                available under this subsection, through whatever 
                mechanism is chosen by the State agency, and 
                recommended for approval to the Secretary are backed by 
                the full faith and credit of the Federal Government;
            ``(3) designate the State education agency or another 
        single agency to carry out the financial plan developed by the 
        State education agency and to allocate funds received under 
        sections 2205 and 2212(a)(2). Such designated agency shall be 
        responsible for--
                    ``(A) maintaining appropriate records of allocation 
                of funds, and, in the case of loans, adequate 
                collection procedures and records;
                    ``(B) reporting annually to the Secretary on the 
                use of funds received under section 2212(a)(2);
            ``(4) describe an implementation strategy to coordinate the 
        expenditure of financial assistance paid under sections 2205 
        and 2212(a)(2) with other State and local funds, other Federal 
        funds and resources;
            ``(5) provide assurances that financial assistance provided 
        under section 2205 shall supplement, not supplant, State and 
        local funds;
            ``(6) describe how business, industry, and other public and 
        private agencies, including libraries, literacy programs, and 
        institutions of higher education, can participate in the 
        implementation, ongoing planning, and support of the plan;
            ``(7) delineate educational problems and needs in the 
        State, describe all learning environments supported by the 
        State plan, and specify how the application of technology will 
        address those and other needs including but not limited to the 
        special needs of--
                    ``(A) urban and rural schools;
                    ``(B) students with disabilities; and
                    ``(C) disadvantaged students;
            ``(8) provide assurances that--
                    ``(A) during the 5-year period of the plan, the 
                State shall evaluate its standards for teacher 
                preparation in the use of technology; and
                    ``(B) programs conducted with State funds available 
                under this title shall be evaluated and an evaluation 
                report shall be submitted to the Secretary at the close 
                of the third year of funding;
            ``(9) describe how the State educational agency will 
        promote the purchase of equipment by local school districts and 
        schools that, when placed in operation, will provide the 
        greatest accessibility and equity for students and meet the 
        highest level of interoperability and open system design within 
        the emerging broad-based electronic information highway that 
        includes schools within the State;
            ``(10) describe the State's strategy for ensuring that 
        teachers, administrators and other education personnel have 
        access to the necessary staff development and technical 
        assistance to improve teaching and learning, school 
        administration, and the electronic transfer of, and access to, 
        information;
            ``(11) establish a method for continuously gathering and 
        disseminating current and emerging information on all aspects 
        of educational technology to all educators within the State;
            ``(12) describe how the State's planned use of technology 
        is supportive of the national education goals;
            ``(13) provide performance indicators and an evaluation 
        method for the State plan; and
            ``(14) create a planning process through which such plan is 
        reviewed and updated periodically.
    ``(c) Approval of Plans.--(1) The State educational agency shall 
submit a plan for approval to the Secretary who shall expeditiously 
review such State plan.
    ``(2) Any State that submits a plan that is not approved shall 
receive assistance from the Secretary to improve its plan.

``SEC. 2210. LOCAL EDUCATIONAL TECHNOLOGY PLAN.

    ``(a) Application.--A local educational agency that desires to 
receive financial assistance under section 2205, shall submit to the 
State educational agency (singly or in conjunction with other local 
educational agencies, institutions of higher education, or an 
intermediate educational unit) a plan which covers a 3-year period.
    ``(b) Contents of the Plan.--A local educational agency plan 
shall--
            ``(1) assure that the programs will be evaluated, and 
        outcomes reported in terms of --
                    ``(A) the level of implementation of the 
                technology-based resources funded by this title;
                    ``(B) the impact on teaching and learning; and
                    ``(C) the extent to which the school or other 
                appropriate learning environments will sustain the 
                project after funding is terminated;
            ``(2) be consistent with district level planning for 
        educational technology, and shall support the local and State's 
        curriculum frameworks;
            ``(3) make provision for technical support and professional 
        development as needed for individual teachers to develop and 
        implement technology-assisted instruction; and
            ``(4) provide a strategy for the enhanced involvement of 
        parents through the use of technology.

``SEC. 2211. FEDERAL ADMINISTRATION.

    ``(a) Evaluation Procedures.--The Secretary shall, with State and 
local representatives, develop procedures for State and local 
evaluations of the programs under this title.
    ``(b) Evaluation Summary.--The Secretary shall submit to the 
Congress 4 years after the enactment of this bill a summary of the 
State evaluations of programs under this subpart.

``SEC. 2212. ALLOCATION OF FUNDS.

    ``(a) In General.--(1) From the amount appropriated under section 
2213 for any fiscal year, the Secretary shall reserve--
            ``(A) not more than one half of one percent for allocation 
        among Guam, American Samoa, the Virgin Islands, the Northern 
        Mariana Islands, and the Trust Territory of the Pacific Islands 
        according to their respective needs for assistance under this 
        subpart; and
            ``(B) one half of 1 percent for programs for Indian 
        students served by schools funded by the Secretary of the 
        Interior consistent with the purposes of this subpart;
    ``(2) The remainder of the amount so appropriated after meeting the 
requirements of paragraph (1) shall be allocated among the States (for 
purposes of this section, the District of Columbia and Puerto Rico 
shall be considered as States) with approved State plans under section 
2209 as follows--
            ``(A) \1/2\ of such remainder shall be allocated among the 
        States by allocating to each State an amount which bears the 
        same ratio to such \1/2\ 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;
            ``(B) \1/2\ of such remainder shall be allocated among the 
        States according to each State's share of allocations under 
        part A of title I of the Elementary and Secondary Education Act 
        of 1965, except that no State shall receive less than \1/2\ of 
        1 percent of the amount available under this subsection in any 
        fiscal year or less than the amount allotted to such State for 
        fiscal year 1988 under title II of the Education for Economic 
        Security Act;
            ``(C) for the purposes of this subsection, the term 
        ``State'' does not include Guam, American Samoa, the Virgin 
        Islands, the Northern Mariana Islands, or the Trust Territory 
        of the Pacific Islands; and
            ``(D) 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.
    ``(3) The Secretary shall make payments under paragraphs (1)(A) and 
(1)(B) on whatever terms the Secretary determines will best carry out 
the purposes of title I of this Act.
    ``(b) Reallotment of Unused Funds.--(1) The amount of any State's 
allotment under subsection (a) for any fiscal year which the Secretary 
determines will not be required for such fiscal year to carry out part 
B of title II shall be available for reallotment from time to time, on 
such dates during such year as the Secretary may determine, to other 
States in proportion to the original allotments to such States under 
subsection (a) for such year, but with such proportionate amount for 
any of such other States being reduced to the extent it exceeds the sum 
the Secretary estimates such State needs and will be able to use for 
such year.
    ``(2) The total of reductions under paragraph (1) shall be 
similarly reallotted among the States whose proportionate amounts were 
not so reduced. Any amounts reallotted to a State under this subsection 
during a year shall be deemed a subpart of its allotment under 
subsection (a) for such year.

``SEC. 2213. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $300,000,000 for this 
subpart for 1995 and such sums as may be necessary for each of the 
fiscal years 1996 through 1999.

 ``Subpart 2--Research, Development, and Demonstration of Educational 
                               Technology

``SEC. 2214. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds that--
            ``(1) technology has the potential to assist and support 
        the improvement of teaching and learning in schools and other 
        settings;
            ``(2) technology can provide students, parents, teachers, 
        and other education professionals 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;
            ``(3) technology can produce far greater opportunities for 
        all students to learn to high standards and to promote 
        efficiency and effectiveness in education; and
            ``(4) the rapidly changing nature of technology requires 
        coordination and flexibility in Federal leadership.
    ``(b) Purposes.--The purposes of this subpart are to promote 
achievement of the National Education Goals and to increase the 
opportunity for all students to achieve to challenging State standards 
by--
            ``(1) promoting awareness of the potential of technology 
        for improving teaching and learning;
            ``(2) supporting State and local efforts to increase the 
        effective use of technology for education;
            ``(3) demonstrating ways in which technology can be used to 
        improve teaching and learning, and to help ensure that all 
        students have an equal opportunity to meet challenging State 
        education standards;
            ``(4) ensuring the availability of knowledge drawn from 
        research and experience that can form the basis for sound State 
        and local decisions about investment in, and effective uses of, 
        educational technology;
            ``(5) promoting high-quality professional development 
        opportunities for teachers and administrators on the 
        integration of technology into instruction and administration;
            ``(6) ensuring that Federal technology-related policies and 
        programs facilitate the use of technology in education; and
            ``(7) ensuring that, as technological advances are made, 
        the educational uses of these advances are considered and their 
        applications are developed.

``SEC. 2215. OFFICE OF EDUCATIONAL TECHNOLOGY.

    ``There is established in the Department an Office of Educational 
Technology, which shall be administered by a Director of Educational 
Technology appointed by the Secretary. The Office of Educational 
Technology, in consultation with other appropriate agencies, shall 
provide leadership to the Nation in the use of technology to promote 
achievement of the National Education Goals and to increase 
opportunities for all students to achieve to challenging State 
standards, and shall perform such additional functions as the Secretary 
may require.

``SEC. 2216. NATIONAL LONG-RANGE PLAN.

    ``(a) In General.--(1) The Secretary shall develop and publish by 
September 30, 1995, and update when appropriate, a national long-range 
plan to carry out the purposes of this subpart.
    ``(2) The Secretary shall--
            ``(A) develop the plan in consultation with other Federal 
        agencies, State and local education practitioners and policy-
        makers, experts in technology and the educational applications 
        of technology, and providers of technology services and 
        products;
            ``(B) transmit the plan to the President and to the 
        appropriate committees of the Congress; and
            ``(C) publish the plan in a form that is readily accessible 
        to the public.
    ``(b) Contents of the Plan.--The national long-range plan shall 
describe the Secretary's activities to promote the purposes of this 
subpart, including--
            ``(1) how the Secretary will encourage the effective use of 
        technology to provide all students the opportunity to achieve 
        to challenging State standards, especially through programs 
        administered by the Department;
            ``(2) joint activities with other Federal agencies, such as 
        the National Endowment for the Humanities, the National 
        Endowment for the Arts, the National Aeronautics and Space 
        Administration, the National Science Foundation, and the 
        Departments of Commerce, Energy, Health and Human Services, and 
        Labor, the National Institute for Literacy, to promote the use 
        of technology in education, and training and lifelong learning, 
        including plans for the educational uses of a national 
        information infrastructure, and to ensure that the policies and 
        programs of such 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) increased access to the benefits of 
                technology for teaching and learning for schools with 
                high concentrations of children from low-income 
                families;
                    ``(B) the use of technology to assist in the 
                implementation of State systemic reform strategies;
                    ``(C) the application of technological advances to 
                use in education;
                    ``(D) increased opportunities for the professional 
                development of teachers in the use of new technologies; 
                and
                    ``(E) increased access to high quality adult and 
                family education services through the use of technology 
                for instruction and professional development;
            ``(5) how the Secretary will determine, in consultation 
        with appropriate individuals, organizations, and agencies, the 
        feasibility and desirability of establishing guidelines and 
        protocols to facilitate effective use of technology in 
        education; and
            ``(6) the Secretary's long-range measurable goals and 
        objectives relating to the purposes of this subpart.

``SEC. 2217. FEDERAL LEADERSHIP.

    ``(a) Program Authorized.--(1) 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, and other appropriate Federal agencies, may 
carry out activities designed to achieve the purposes of this subpart 
directly or by awarding grants (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.
    ``(2) For the purpose of carrying out coordinated or joint 
activities consistent with the purposes of this subpart, the Secretary 
may accept funds from, and transfer funds to, other Federal agencies.
    ``(b) Uses of Funds.--The Secretary may use funds appropriated 
under this subpart for activities designed to carry out the purpose of 
this subpart, and to meet the goals and objectives of the national 
long-range plan under section 2216, including--
            ``(1) planning grants to States and local education 
        agencies, to enable such entities to examine and develop 
        strategies for the effective use of technology to help achieve 
        the objectives of the Goals 2000: Educate America Act, the 
        School-to-Work Opportunities Act of 1994, and the National 
        Literacy Act;
            ``(2) development grants to technical assistance providers, 
        to enable them to improve substantially the services they 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 its 
        educational applications in carrying out activities under this 
        subpart;
            ``(4) research on, and the development of, guidelines and 
        protocols to facilitate efficient and effective use of 
        technology in education;
            ``(5) research on, and the development of, educational 
        applications of the most advanced and newly emerging 
        technologies;
            ``(6) 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;
            ``(7) the development and evaluation of software and other 
        products, including television programming, that incorporate 
        advances in technology and help achieve the National Education 
        Goals and challenging State standards;
            ``(8) the development, demonstration, and evaluation of 
        model strategies for preparing teachers and other personnel to 
        use technology effectively to improve teaching and learning;
            ``(9) the development of model programs to demonstrate the 
        educational effectiveness of technology in urban and rural 
        areas and economically-distressed communities;
            ``(10) research on, and the evaluation of, the 
        effectiveness and benefits of technology in education;
            ``(11) conferences on, and dissemination of information 
        about, the uses of technology in education;
            ``(12) the development of model strategies to promote 
        gender equity concerning access to, and the use of, technology 
        in the classroom;
            ``(13) the development, demonstration and evaluation of a 
        Buddy System Computer Education grant to each of three States 
        having demonstrated ability or commitment to computer-based 
        technology education to establish an education program for 
        students in 6th through 8th grades in which computers are 
        placed and linked in students' classrooms and homes; and
            ``(14) such other activities as the Secretary determines 
        would meet the purposes of this subpart.
    ``(c) Non-Federal Share.--(1) Subject to paragraph (2), the 
Secretary is authorized to require any recipient of a grant or contract 
under this subpart to share in the cost of its project, which 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) The Secretary may increase the non-Federal share required of 
such recipient after the first year of the recipient's project, except 
that such share may not exceed 50 percent at any time during the 
recipient's project.

``SEC. 2218. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subpart, there are 
authorized to be appropriated such sums as may be necessary for each of 
the fiscal years 1995 through 1999.

                   ``Subpart 3--Star Schools Program

``SEC. 2219. 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 
        would not otherwise have been able to provide; and
            ``(3) distance learning programs could 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 would enable them 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. 2220. STATEMENT OF PURPOSE.

    ``The purpose of this subpart is to encourage the expansion and use 
of distance learning programs and technologies to help--
            ``(1) improve teaching and learning;
            ``(2) achieve the National Education Goals;
            ``(3) all students learn to challenging State content 
        standards; and
            ``(4) increase participation in State and local educational 
        reform.

``SEC. 2221. PROGRAM AUTHORIZED.

    ``(a) Star School Awards.--The Secretary is authorized, in 
accordance with this subpart, to make grants to eligible entities for 
the Federal share of the cost of providing distance learning programs, 
including--
            ``(1) developing, constructing, and acquiring 
        telecommunications facilities and equipment;
            ``(2) developing and acquiring instructional programming; 
        and
            ``(3) providing technical assistance regarding the use of 
        such facilities and instructional programming.
    ``(b) Authorization of Appropriations.--For the purpose of carrying 
out this subpart, there are authorized to be appropriated such sums as 
may be necessary for each of the fiscal years 1995 through 1999.
    ``(c) Limitations.--(1) A grant under this section shall not 
exceed--
            ``(A) five years in duration; and
            ``(B) $10,000,000 in any one fiscal year.
    ``(2) Not less than 25 percent of the funds available to the 
Secretary for any fiscal year under this subpart shall be used for the 
cost of instructional programming.
    ``(3) Not less than 50 percent of the funds available to the 
Secretary for any fiscal year under this subpart shall be used for the 
cost of facilities, equipment, teacher training or retraining, 
technical assistance, or programming, for local educational agencies 
that are eligible to receive assistance under part A of title I of this 
Act.
    ``(d) Federal Share.--(1) The Federal share of the cost of projects 
funded under this section shall not exceed 75 percent for the first and 
second years of the award, 60 percent for the third and fourth years, 
and 50 percent for the fifth year.
    ``(2) The Secretary may reduce or waive the requirement of the non-
Federal share under paragraph (1) upon a showing of financial hardship.
    ``(e) Authority To Accept Funds From Other Agencies.--The Secretary 
is authorized to accept funds from other agencies to carry out the 
purposes of this section, including funds for the purchase of 
equipment.

``SEC. 2222. ELIGIBLE ENTITIES.

    ``(a) Eligible Entities.--(1) The Secretary may make a grant under 
section 2221 to any eligible entity, provided that at least one local 
educational agency is participating in the proposed project.
    ``(2) An 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 of this 
        Act; or
            ``(B) any two or more of the following, which will provide 
        a telecommunications network:
                    ``(i) a local educational agency that has a 
                significant number of elementary and secondary schools 
                that are eligible for assistance under part A of title 
                I of this Act, or elementary and secondary schools 
                operated or funded for Indian children by the 
                Department of the Interior eligible under section 
                1121(b)(1) of this Act;
                    ``(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.

``SEC. 2223. APPLICATIONS.

    ``(a) General Requirement.--Each eligible entity that desires to 
receive a grant under this subpart shall submit an application to the 
Secretary in such form, at such time, and containing such information 
and assurances as the Secretary may require.
    ``(b) Star School Award Applications.--Each application for a grant 
authorized under section 2221 shall--
            ``(1) describe--
                    ``(A) how the proposed project will assist in 
                achieving the National Education Goals set out in title 
                I of the Goals 2000: Educate America Act, how it will 
                assist all students to have an opportunity to learn to 
                challenging State standards, how it will assist State 
                and local educational reform efforts, and how it will 
                contribute to creating a high quality system of 
                lifelong learning;
                    ``(B) the telecommunications facilities and 
                equipment and technical assistance for which assistance 
                is sought, which may include--
                            ``(i) the design, development, 
                        construction, and acquisition of district, 
                        multidistrict, State, or multistate educational 
                        telecommunications networks and technology 
                        resource centers;
                            ``(ii) microwave, fiber optics, cable, and 
                        satellite transmission equipment, or any 
                        combination thereof;
                            ``(iii) reception facilities, satellite 
                        time, production facilities, and other 
                        telecommunications equipment capable of serving 
                        the intended geographic area;
                            ``(iv) the provision of training services 
                        to instructors who will be using the facilities 
                        and equipment for which assistance is sought in 
                        using such facilities and equipment, and in 
                        integrating programs into the class curriculum; 
                        and
                            ``(v) the development of educational and 
                        related programming for use on a 
                        telecommunications network;
                    ``(C) the types of programming that will be 
                developed to enhance instruction and training, 
                including an assurance that such programming will be 
                designed in consultation with professionals who are 
                experts in the applicable subject matter and grade 
                level;
                    ``(D) 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;
                    ``(E) 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;
                    ``(F) the manner in which historically underserved 
                students (such as students from low-income families, 
                limited English proficient students, disabled students, 
                or students who have low literacy skills) and their 
                families will participate in the benefits of the 
                telecommunications facilities, equipment, technical 
                assistance, and programming assisted under this 
                subpart;
                    ``(G) how existing telecommunications equipment, 
                facilities, and services, where available, will be 
                used;
                    ``(H) the activities or services for which 
                assistance is sought, such as--
                            ``(i) providing facilities, equipment, 
                        training services, and technical assistance;
                            ``(ii) making programs accessible to 
                        individuals with disabilities through 
                        mechanisms such as closed captioning and 
                        descriptive video services;
                            ``(iii) 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;
                            ``(iv) sharing curriculum materials between 
                        networks;
                            ``(v) providing teacher and student support 
                        services;
                            ``(vi) incorporating community resources 
                        such as libraries and museums into 
                        instructional programs;
                            ``(vii) 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; and
                            ``(viii) providing programs for adults at 
                        times other than the regular school day in 
                        order to maximize the use of telecommunications 
                        facilities and equipment; and
                    ``(I) how the proposed project as a whole will be 
                financed and how arrangements for future financing will 
                be developed before the project expires;
            ``(2) 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 of this Act; snf
            ``(3) provide an assurance that the applicant will provide 
        such information and cooperate in any evaluation that the 
        Secretary may conduct under this subpart.
    ``(c) Priorities.--The Secretary shall, in approving applications 
for grants authorized under section 2221, give priority to applications 
that--
            ``(1) propose high-quality plans to assist in achieving one 
        or more of the National Education Goals as set out in title I 
        of the Goals 2000: Educate America Act, would provide 
        instruction consistent with State content standards, or would 
        otherwise provide significant and specific assistance to States 
        and local educational agencies undertaking systemic education 
        reform under title III of the Goals 2000: Educate America Act;
            ``(2) would provide servcies to programs serving adults, 
        especially parents, with low levels of literacy; and
            ``(3) would serve schools with significant numbers of 
        children counted for the purposes of part A of title I of this 
        Act.
    ``(d) Geographic Distribution.--In approving applications for 
grants authorized under section 2221, the Secretary shall, to the 
extent feasible, ensure an equitable geographic distribution of 
services.

``SEC. 2224. LEADERSHIP AND EVALUATION ACTIVITIES.

    ``(a) Set-Aside.--From amounts appropriated under section 2221(b), 
the Secretary may reserve up to 10 percent 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) Funds reserved for leadership activities 
may be used for--
            ``(A) disseminating information, including lists and 
        descriptions of services available from recipients; and
            ``(B) other activities designed to enhance the quality of 
        distance learning activities nationwide.
    ``(2) Funds reserved for evaluation activities shall be used to 
conduct independent evaluations of the Star Schools program under this 
subpart and of distance learning in general, including--
            ``(A) analyses of distance learning efforts, including both 
        Star Schools projects and efforts not funded by the program 
        under this subpart; and
            ``(B) comparisons of the effects, including student 
        outcomes, of different technologies in distance learning 
        efforts.
    ``(3) Funds reserved for peer review activities may be used for 
peer review of both proposals and funded projects.

``SEC. 2225. DEFINITIONS.

    ``For the purpose of this subpart, the following terms have the 
following meanings:
            ``(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.
            ``(3) The term `public broadcasting entity' has the same 
        meaning given that term in section 397 of the Communications 
        Act of 1934.

      ``Subpart 4--Development of Educational Technology Products

``SEC. 2226. EDUCATIONAL TECHNOLOGY PRODUCT DEVELOPMENT.

    ``(a) Purpose.--It is the purpose of this section to support the 
development of curriculum-based learning resources and systems using 
state-of-the-art technologies and techniques designed to improve 
student learning.
    ``(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) Federal share.--The Secretary shall require any 
        recipient of a grant, contract, or loan under this section to 
        share in the cost of the activities supported with such 
        assistance.
            ``(4) Eligible consortium.--For the purpose of this 
        section, the term `eligible consortium' means a consortium 
        consisting of--
                    ``(A) State or local educational agencies in 
                partnership with business, industry, or 
                telecommunications entity;
                    ``(B) a business, industry, or telecommunications 
                entity;
                    ``(C) a public or private nonprofit organization; 
                or
                    ``(D) an institution of higher education.
            ``(5) Private sector advisory board.--The Secretary shall 
        establish an advisory board which shall provide advice and 
        counsel to the Secretary concerning the most effective means of 
        implementing the provisions of this section. Such board shall--
                    ``(A) include educators, school administrators, and 
                policymakers knowledgeable about the technology and 
                curriculum needs of State and local education agencies, 
                and adult and family educators;
                    ``(B) include representatives of private for-profit 
                and nonprofit entities engaged in the production and 
                development of educational software and other 
                technology-based learning resources;
                    ``(C) make recommendations to the Secretary 
                concerning the types and terms of Federal financial 
                assistance which promise to be most effective in 
                advancing the purposes of this section; and
                    ``(D) regularly evaluate the implementation of this 
                section.
            ``(6) 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 content 
                standards and State and local curriculum frameworks;
                    ``(C) may be adapted and applied nationally at a 
                reasonable cost;
                    ``(D) covert technology resources developed with 
                support from the Department of Defense and other 
                Federal agencies for effective use in the classroom;
                    ``(E) promise to reduce the costs of providing 
                high-quality instruction; and
                    ``(F) promise to expand access to high-quality 
                instruction in content areas which would otherwise not 
                be available to students in rural and urban communities 
                or who attend other educational agencies with limited 
                financial resources.
            ``(7) 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 program or system 
                shall improve the achievement levels of students of all 
                ages;
                    ``(B) a description of how teachers associated with 
                the program will be trained to integrate technology in 
                the classroom;
                    ``(C) a description of how the design, development, 
                piloting, field testing, and distribution of the 
                program or system will be carried out;
                    ``(D) an assurance that the program or system shall 
                effectively serve a large number or percentage of 
                economically disadvantaged students;
                    ``(E) plans for dissemination to a wide audience of 
                learners; and
                    ``(F) provisions for closed captioning or 
                descriptive video where appropriate.
    ``(c) Evaluation.--The Secretary shall provide for the independent 
evaluation of programs or systems developed with assistance under this 
section and shall regularly collect and disseminate to State and local 
educational agencies and to the public information about the usefulness 
and effectiveness of such programs or systems.
    ``(d) Royalties.--Notwithstanding any other provision of law, the 
Secretary is authorized to require that a portion of any royalty paid 
as a result of assistance provided under this section be deposited in a 
central fund for the purposes of--
            ``(1) recovering all or part of the Federal share of the 
        costs of developing, producing, and distributing the product 
        for which such royalty is paid; and
            ``(2) carrying out the provisions of this section.
    ``(e) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $50,000,000 
for fiscal year 1995 and such sums as may be necessary for fiscal years 
1996, 1997, 1998, and 1999.

                    ``PART C--LIBRARY MEDIA PROGRAM

``SEC. 2231. ESTABLISHMENT OF PROGRAM.

    ``The Secretary shall award grants from allocations under section 
2232 to States for the acquisition of school library media resources 
for the use of students, library media specialists, and teachers in 
elementary and secondary schools.

``SEC. 2232. ALLOCATION TO STATES.

    ``From the amount appropriated pursuant to section 2205 in each 
fiscal year, the Secretary shall allocate to each State having an 
approved plan under section 2233 as follows:
            ``(1) For appropriations below $50,000,000, at the 
        discretion of the Secretary, taking into account such factors 
        as the age and condition of the State's existing library media 
        collections.
            ``(2) For appropriations of $50,000,000 and above to each 
        State an amount which bears the same ratio to such funds as the 
        amount such State received under section 1122 of title I bears 
        to the amount all States received under section 1122 in such 
        year; except that no State shall receive less than one-half of 
        one percent of such funds.

``SEC. 2233. STATE PLANS.

    ``(a) In General.--In order for a State to receive an allocation of 
funds under section 2232 for any fiscal year, such State shall have in 
effect for such fiscal year a State plan. Such plan shall--
            ``(1) designate the State educational agency as the State 
        agency responsible for the administration of the program 
        described in this part;
            ``(2) set forth a program under which funds paid to the 
        State from its allocation under section 2202 will be expended 
        solely for--
                    ``(A) acquisition of school library media 
                resources, including foreign language resources, for 
                the use of students, school library media specialists, 
                and teachers in elementary and secondary schools in the 
                United States; and
                    ``(B) administration of the State plan, including 
                development and revision of standards, relating to 
                school library media resources; except that the amount 
                used for administration of the State plan in any fiscal 
                year shall not exceed 5 percent of the amount allocated 
                to such State under section 2232 for such fiscal year; 
                and
            ``(3) set forth the criteria to be used in allotting funds 
        for school library media resources among the local educational 
        agencies of the State, which allotment shall take into 
        consideration the relative need of the students, school media 
        specialists, and teachers to be served.
    ``(b) Plan Submission.--The State plan may be submitted as part of 
a consolidated application under section 9302.

``SEC. 2234. DISTRIBUTION OF ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    ``From the funds allocated to a State under section 2202 in each 
fiscal year, such State shall distribute not less than 99 percent of 
such funds in such year to local educational agencies within such State 
according to the relative enrollment of students in elementary and 
secondary schools within the school districts of such State, adjusted 
to provide higher per-pupil allotments to local educational agencies 
that have the greatest number or percentages of students whose 
education imposes a higher than average cost per child, such as those 
students--
            ``(1) living in areas with high concentrations of low-
        income families;
            ``(2) from low-income families; and
            ``(3) living in sparsely populated areas.

``SEC. 2235. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$200,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the fiscal years 1996, 1997, 1998, and 1999.

           ``PART D--SUPPORT AND ASSISTANCE FOR ESEA PROGRAMS

``SEC. 2341. FINDINGS.

    ``The Congress finds that--
            ``(1) high-quality technical assistance can enhance the 
        improvements in teaching and learning achieved through the 
        implementation of programs under this Act;
            ``(2) comprehensive technical assistance and effective 
        program dissemination are essential ingredients of the overall 
        strategy of the reauthorization of this Act to improve programs 
        and to provide all children opportunities to meet challenging 
        State performance standards;
            ``(3) States, local educational agencies, tribes, and 
        schools serving students with special needs, such as students 
        with limited English proficiency, have great need for 
        comprehensive technical assistance in order to use funds under 
        this Act to provide such students with opportunities to learn 
        to challenging State standards;
            ``(4) current technical assistance and dissemination 
        efforts are fragmented and categorical in nature, and thus fail 
        to address adequately the needs of States and local educational 
        agencies and tribes for help in integrating into a coherent 
        strategy for improving teaching and learning the various 
        programs under this Act with State and local programs and other 
        education reform efforts;
            ``(5) too little creative use is made of technology as a 
        means of providing information and assistance in a cost-
        effective way;
            ``(6) comprehensive technical assistance can help schools 
        and school systems focus on improving opportunities for all 
        children to reach challenging State performance standards, as 
        they implement programs under this Act;
            ``(7) comprehensive technical assistance would provide 
        coordinated assistance to help States, local educational 
        agencies, tribes, participating colleges and universities, and 
        schools integrate Federal, State, and local education programs 
        in ways that contribute to improving schools and entire school 
        systems;
            ``(8) technical assistance in support of programs under 
        this Act should be coordinated with the Department's regional 
        offices, the regional educational laboratories, State Literacy 
        Resource Centers, vocational resource centers, and other 
        technical assistance efforts supported by the Department;
            ``(9) technical assistance providers should prioritize 
        assistance to local educational agencies and schools; and
            ``(10) technical assistance should both encourage the 
        integration of categorical programs and ensure that students 
        with special needs, such as limited English proficiency 
        students, are served fully.

``SEC. 2342. PURPOSE.

    ``The purpose of this part is to create a national technical 
assistance and dissemination system to make available to States, local 
educational agencies, tribes, schools, and other recipients of funds 
under this Act technical assistance in--
            ``(1) implementing programs authorized by this Act in a 
        manner that improves teaching and learning for all students;
            ``(2) coordinating those programs with other Federal, 
        State, and local education plans and activities, so that all 
        students are provided opportunities to meet challenging State 
        performance standards, in particular students at risk of 
        educational failure; and
            ``(3) adopting, adapting, and implementing promising and 
        proven practices for improving teaching and learning.

``SEC. 2343. PROGRAMS AUTHORIZED.

    ``(a) Comprehensive Assistance Centers.--The Secretary is 
authorized to award grants or enter into contracts with public or 
private nonprofit entities or consortia to establish a networked system 
of 15 centers to provide comprehensive research-based training and 
technical assistance to States, local educational agencies, schools, 
tribes, community-based organizations, and other recipients of funds 
under this Act in their administration and implementation of programs 
authorized by this Act. In establishing centers and allocating 
resources among the centers, the Secretary shall consider the 
geographic distribution of title I students; the geographic and 
linguistic distribution of students of limited English proficiency; the 
geographic distribution of Indian students; the special needs of 
students living in rural areas; and the special needs of States and 
territories in geographic isolation.
    ``(b) State-Based Assistance.--The Secretary is authorized to award 
grants or enter into contracts with public and private nonprofit 
entities to establish an assistance agency in each State and territory 
and in the Bureau of Indian Affairs. This program shall be called the 
National Diffusion Network and will assist States, local educational 
agencies, schools, and other appropriate educational entities in 
identifying and securing appropriate, high-quality technical 
assistance, provide information on and assistance in adopting effective 
programs and practices, and work cooperatively with the Comprehensive 
Assistance Centers to improve teaching and learning and raise standards 
for all students.
    ``(c) Accountability.--To ensure the quality and effectiveness of 
the technical assistance system supported under this part, the 
Secretary shall--
            ``(1) provide for an external peer review (including 
        representatives of the populations served under this Act) of 
        the centers under this part every 2 years;
            ``(2) develop, in consultation with the Assistant Secretary 
        for Elementary and Secondary Education, the Director of 
        Bilingual Education and Minority Languages Affairs, and the 
        Assistant Secretary for Educational Research and Improvement, a 
        set of performance indicators, for use during the peer reviews 
        required by paragraph (1), that assesses whether the work of 
        the centers assists in improving teaching and learning under 
        this Act for all children, in particular children at risk of 
        educational failure;
            ``(3) require each center to publish, and disseminate 
        widely throughout its region, an annual report on its services 
        and accomplishments and how those services and accomplishments 
        relate to the performance indicators developed under paragraph 
        (2);
            ``(4) conduct periodic surveys of users of the centers' 
        services to determine if users are satisfied with the access to 
        and quality of such services;
            ``(5) collect, as part of the Department's reviews of 
        programs under this Act, information about the availability and 
        quality of services provided by the centers, and share that 
        information with the centers;
            ``(6) take whatever steps are reasonable and necessary to 
        ensure that each center performs its responsibilities in a 
        satisfactory manner, which may include termination of an award 
        under this part (if the Secretary concludes that performance 
        has been unsatisfactory) and the selection of a new center, as 
        well as whatever interim arrangements the Secretary determines 
        are necessary to ensure the satisfactory delivery of services 
        under this part to the affected region; and
            ``(7) provide for an independent evaluation of the 
        comprehensive assistance centers and the National Diffusion 
        Network authorized by this part and report the results of that 
        evaluation to Congress prior to the next reauthorization of 
        this Act.
    ``(d) Contract Period.--Grants or contracts awarded under this 
section shall be awarded for a period of 5 years following the 
extension of contracts and grants under section 2346(d).

``SEC. 2344. REQUIREMENTS OF COMPREHENSIVE ASSISTANCE CENTERS.

    ``Each comprehensive assistance center established under section 
2343(a)--
            ``(1) shall maintain staff expertise in at least all of the 
        following areas:
                    ``(A) Instruction, curriculum improvement, 
                assessment, school reform, and other aspects of title I 
                of this Act.
                    ``(B) Meeting the needs of children served under 
                this Act, including children in high-poverty areas, 
                migratory children, immigrant children, children with 
                limited English proficiency, neglected or delinquent 
                children, homeless children and youth, Indian children, 
                and children with disabilities and where applicable, 
                Alaskan Native children and Native Hawaiian children.
                    ``(C) Professional development for teachers, other 
                school staff, and administrators to help students meet 
                challenging State performance standards.
                    ``(D) Bilingual education, including programs that 
                emphasize English and native language proficiency and 
                promote multicultural understanding.
                    ``(E) Safe and drug-free schools.
                    ``(F) Educational applications of technology.
                    ``(G) Parent involvement and participation.
                    ``(H) The reform of schools and school systems.
                    ``(I) Program evaluation.
                    ``(J) Coordination of services.
                    ``(K) School governance and management.
                    ``(L) Partnerships between the public and private 
                sector, including the formation of partnerships between 
                schools and businesses;
            ``(2) shall ensure, where appropriate, staff expertise in 
        the special needs of students living in rural areas and in the 
        special needs of local education agencies serving rural areas;
            ``(3) shall ensure that technical assistance staff have 
        sufficient training, knowledge, and expertise in how to 
        integrate and coordinate programs under this Act with each 
        other, as well as with other Federal, State, and local programs 
        and reforms, and reflect the diverse linguistic and cultural 
        expertise appropriate to the region served;
            ``(4) shall provide technical assistance using the highest 
        quality and most cost-effective strategies possible;
            ``(5) shall coordinate services, work cooperatively, and 
        regularly share information with the regional education 
        laboratories, the Eisenhower Regional Math and Science 
        consortia, research and development centers, State literacy 
        centers, and other entities engaged in research, development, 
        dissemination, and technical assistance activities which are 
        supported by the Department of Education as part of a Federal 
        technical assistance system, to provide a broad range of 
        support services to schools in the region while minimizing the 
        duplication of such services; and
            ``(6) shall provide services to States, local educational 
        agencies, tribes, and schools through or in coordination with 
        the State Facilitators of the National Diffusion Network as 
        authorized in section 2343(b) in order to better implement the 
        purposes of this section and provide the support and assistance 
        diffusion agents need to carry out their mission effectively.

``SEC. 2345. DUTIES OF COMPREHENSIVE ASSISTANCE CENTERS.

    ``(a) In General.--Each center established under section 2343(a) 
shall provide comprehensive, integrated technical assistance services 
focused on improving teaching and learning.
    ``(b) Support and Assistance.--Comprehensive centers shall provide 
support and assistance to State educational agencies, tribal divisions 
of education, local educational agencies, schools, and other grant 
recipients under this Act in--
            ``(1) the development of plans for integrating programs 
        under this Act with other Federal programs and with State, 
        local and tribal reform efforts;
            ``(2) the development, selection, and use of challenging, 
        high-quality curricula aligned with high standards and 
        assessments;
            ``(3) the identification, adaptation, or development of 
        instructional strategies and materials which meet the needs of 
        children receiving assistance under this Act;
            ``(4) the development of valid, reliable, and 
        nondiscriminatory systems of assessment which reflect recent 
        advances in the field of education assessment;
            ``(5) the development, selection, and implementation of 
        effective schoolwide projects;
            ``(6) improving the capacity of educators, school 
        administrators, counselors, and other school personnel to 
        assist students to reach challenging standards, especially 
        those students furthest from such standards, through the 
        expansion and strengthening of professional development 
        activities;
            ``(7) expanding and improving opportunities for parents to 
        participate in the education of their children at home and at 
        school;
            ``(8) creating safe and drug-free environments, especially 
        in areas experiencing high levels of drug use and violence in 
        the community and schools;
            ``(9) the coordination of services and programs to meet the 
        needs of students so that they can fully participate in the 
        educational program of the school;
            ``(10) the evaluation of educational programs;
            ``(11) educational applications of technology, when 
        appropriate, in coordination with the regional mathematics and 
        science education consortia;
            ``(12) reforming the governance and management of schools; 
        and
            ``(13) establishing public/private education partnerships, 
        including school/business partnerships.
    ``(c) Additional Duties.--Additional duties include--
            ``(1) assisting States, local educational agencies, tribal 
        divisions of education, and schools in replicating and adapting 
        exemplary and promising educational programs, policies, and 
        practices through or in coordination with the National 
        Diffusion Network State Facilitator;
            ``(2) assisting State educational agencies and local 
        educational agencies to develop school support teams to work 
        with schoolwide programs under title I of this Act; and
            ``(3) assisting State educational agencies, local 
        educational agencies, and the National Diffusion Network State 
        Facilitators to increase their capacity to provide high-quality 
        technical assistance in support of programs under this Act.

``SEC. 2346. SERVICE AND APPLICATION REQUIREMENTS.

    ``(a) Maintenance of Service.--The Secretary shall ensure that the 
comprehensive assistance centers funded under this part provide 
technical assistance services that address the needs of bilingual, 
migrant, immigrant, and Indian students that are at least comparable to 
the level of such technical assistance services provided under programs 
administered by the Secretary prior to the date of the enactment of the 
Improving America's Schools Act of 1994.
    ``(b) Minimum Funds.--
            ``(1) Maintenance of effort.--In awarding grants or 
        contracts for comprehensive assistance centers, the Secretary 
        shall ensure that the proportion of funds used to provide 
        services that address the needs of limited-English-proficient, 
        immigrant, and migrant students shall be no less than the 
        proportion of funds expended under grants or contracts expiring 
        in fiscal year 1995 for categorical technical assistance 
        centers serving limited-English-proficient and migrant 
        students.
            ``(2) Indian students.--In awarding grants or contracts for 
        comprehensive assistance centers, the Secretary shall ensure 
        that the proportion of funds used to provide services that 
        address the need of Indian students through the comprehensive 
        centers established in section 2343(a) shall be no less than 
        the proportion of funds expended under grants or contracts 
        expiring in fiscal year 1995 for technical assistance centers 
        serving Indian students.
    ``(c) Application.--Applications for funds under subsection (a)(2) 
shall include how centers will--
            ``(1) provide expertise in the areas listed in section 
        2344(l);
            ``(2) work with the National Diffusion Network authorized 
        in section 2343(b) to conduct outreach to local educational 
        agencies prioritized in section 2348;
            ``(3) demonstrate support from States and local educational 
        agencies and tribes in the area to be served;
            ``(4) ensure a fair distribution of services to urban and 
        rural areas;
            ``(5) utilize technology to provide technical assistance; 
        and
            ``(6) provide other information the Secretary may require.
In approving applications to comprehensive centers serving Indian 
students, the Secretary shall give priority to applications from 
consortia that include Indian educational agencies, organizations, or 
institutions.
    ``(d) Transition.--The Secretary shall, notwithstanding any other 
provision of law, use funds appropriated under section 2351 to extend 
or continue existing contracts and grants for categorical technical 
assistance centers and for National Diffusion Network State Facilitator 
and Developer Demonstrators through fiscal year 1995 and take other 
necessary steps to ensure a smooth transition of this part.

``SEC. 2347. STATE-BASED ACTIVITIES.

    ``(a) Purposes.--The Secretary shall establish a State-based 
outreach, dissemination, training, and consultation component of the 
National Technical Assistance and Dissemination System through the 
National Diffusion Network and its State Facilitators.
    ``(b) In General.--The Department of Education, through the Office 
of Educational Research and Improvement shall award grants or enter 
into contracts with public or private nonprofit educational 
organizations or institutions in each State with demonstrated 
experience, expertise, and commitment in the areas of applied education 
research and program dissemination to carry out activities described in 
subsection (c).
    ``(c) National Diffusion Network State Facilitators.--National 
Diffusion Network State Facilitators shall work in coordination with 
the comprehensive assistance centers to assist State educational 
agencies, local educational agencies, tribal divisions of education, 
schools, family and adult literacy programs, and other appropriate 
educational entities to--
            ``(1) define their technical assistance needs and align 
        them with school reform, professional development, and 
        technology plans;
            ``(2) secure the technical assistance services that can 
        best fulfill their needs by utilizing Department of Education 
        technical assistance centers, regional education laboratories, 
        Eisenhower Regional consortia, State Literacy Resource Centers, 
        and other technical assistance providers including local 
        providers of professional development services;
            ``(3) identify educational technology needs and secure the 
        necessary technical assistance to address them;
            ``(4) prepare for on-site, intensive technical assistance 
        provided by the comprehensive centers, labs, or other service 
        providers;
            ``(5) utilize technology, including regional and national 
        electronic networks, to increase their access to technical 
        assistance, professional development services, and 
        dissemination of exemplary practices and materials;
            ``(6) deliver high-quality professional development 
        services to their school-based educators; and
            ``(7) provide organizational development services to 
        facilitate school-based change.
    ``(d) Additional Duties.--In addition, National Diffusion Network 
State Facilitators shall--
            ``(1) disseminate information about school reform and 
        effective and promising practices and help local educational 
        agencies and schools adapt them to their needs;
            ``(2) facilitate communications between educators to assist 
        the sharing of promising practices and to foster school reform 
        and professional development;
            ``(3) coordinate their activities with school support teams 
        and distinguished educators in their State;
            ``(4) coordinate, work cooperatively with, and regularly 
        share information with the comprehensive centers, the Regional 
        Education Laboratories, and other entities engaged in research, 
        development, dissemination, and technical assistance activities 
        which are supported by the Department of Education;
            ``(5) develop and implement an aggressive outreach plan for 
        reaching the local educational agencies and schools identified 
        as priorities in section 2308; and
            ``(6) provide technical, dissemination, and support 
        assistance to States, local educational agencies, and schools 
        using the highest quality and most cost-effective methods 
        available.
    ``(e) National Diffusion Network Effective Practices.--The 
Secretary shall develop a system of validating effective programs and 
promising practices for dissemination through the National Diffusion 
Network. Such programs may include exemplary programs funded through 
any office of the Department of Education, the National Science 
Foundation, or other Federal agencies. Such a system should be 
coordinated, aligned with, and administered by the Office of 
Educational Research and Improvement Office of Reform Assistance and 
Dissemination. The Secretary shall give priority to identifying, 
validating, and disseminating effective schoolwide projects, programs 
addressing the needs of high poverty schools, and programs with the 
capacity to offer high-quality, sustained technical assistance. The 
Office of Educational Research and Improvement Office of Reform 
Assistance and Dissemination shall also administer a grants program to 
such validated Effective Practices for the purpose of dissemination and 
the provision of technical assistance.

``SEC. 2348. PROGRAM PRIORITIES.

    ``Both the comprehensive centers and the National Diffusion Network 
shall give priority service to schoolwide projects and to local 
educational agencies, and Bureau of Indian Affairs schools with the 
highest percentage or numbers of poor children.

``SEC. 2349. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.

    ``The Secretary is also authorized to provide a technology-based 
technical assistance service that will--
            ``(1) support the administration and implementation of 
        programs authorized by this Act by providing information, 
        including legal and regulatory information, and technical 
        guidance and information about best practices; and
            ``(2) be accessible to all States, local educational 
        agencies, schools, and others who are recipients of funds under 
        this Act.

``SEC. 2350. ADMINISTRATION.

    ``The program authorized by this part shall be jointly administered 
by the Assistant Secretary for Elementary and Secondary Education, the 
Director of Bilingual Education and Minority Languages Affairs, and the 
Assistant Secretary for Educational Research and Improvement.

``SEC. 2351. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purposes of carrying out this part, there are authorized 
to be appropriated $70,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the fiscal years 1996, 1997, 1998, and 
1999. Of the funds appropriated under this part, not less than 
$25,000,000 shall be made available to support activities of the 
National Diffusion Network authorized in section 2343(b).

           ``PART E--INNOVATIVE EDUCATION PROGRAM STRATEGIES

``SEC. 2401. FINDINGS AND STATEMENT OF PURPOSE.

    ``(a) Findings.--The Congress finds that chapter 2 of the Education 
Consolidation and Improvement Act of 1981 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 part:
            ``(1) To support local education reform efforts which are 
        consistent with and support statewide reform efforts under 
        Goals 2000: Educate America Act.
            ``(2) To support State and local efforts to accomplish the 
        National Education Goals.
            ``(3) To provide funding to enable State and local 
        educational agencies to implement promising educational reform 
        programs that can be supported by State and local sources of 
        funding after such programs are demonstrated to be effective.
            ``(4) To provide a continuing source of innovation, 
        educational improvement, and support for library services and 
        instructional materials, including media materials.
            ``(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 part 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 part will be mainly that of local educational 
agencies, school superintendents and principals, and classroom teachers 
and supporting personnel, because they 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 districts.

``SEC. 2402. AUTHORIZATION OF APPROPRIATIONS; DURATION OF ASSISTANCE.

    ``(a) Authorization.--To carry out the purposes of this part, there 
are authorized to be appropriated $435,000,000 for fiscal year 1995 and 
such sums in each of the fiscal years 1996 through 1999.
    ``(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 part, make payments to State 
educational agencies for the purpose of this section.

``SEC. 2403. DEFINITION.

    ``For the purposes of this part 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 deprived 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.

                 ``Subpart 1--State and Local Programs

``SEC. 2411. ALLOTMENT TO STATES.

    ``(a) Reservations.--From the sums appropriated to carry out this 
subpart in any fiscal year, the Secretary shall reserve not to exceed 1 
percent for payments to Guam, American Samoa, the Virgin Islands, the 
Northern Mariana Islands, and Palau (until the effective date of the 
Compact of Free Association with the Government of Palau), 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 1 percent of 
such remainder.
    ``(c) Definitions.--For purposes of this subpart--
            ``(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. 2412. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Distribution Rule.--From the sums made available each year to 
carry out this part, the State educational agency shall distribute not 
less than 85 percent to local educational agencies within such State 
according to the relative enrollments in public and private, nonprofit 
schools within the school districts of such agencies, adjusted, in 
accordance with criteria approved by the Secretary, to provide higher 
per pupil allocations to local educational agencies which have the 
greatest numbers or percentages of children whose education imposes a 
higher than average cost per child, such as--
            ``(1) children living in areas with high concentrations of 
        low-income families,
            ``(2) children from low-income families, and
            ``(3) children living in sparsely populated areas.
    ``(b) Calculation of Enrollments.--(1) 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 part, for the fiscal year 
        preceding the fiscal year in which the determination is made. 
        Nothing in this subsection shall diminish the responsibility of 
        local educational agencies to contact, on an annual basis, 
        appropriate officials from private nonprofit schools within the 
        areas served by such agencies in order to determine whether 
        such schools desire that their children participate in programs 
        assisted under this part.
            ``(2)(A) Relative enrollments under subsection (a) shall be 
        adjusted, in accordance with criteria approved by the Secretary 
        under subparagraph (B), to provide higher per pupil allocations 
        only to local educational agencies which serve the greatest 
        numbers or percentages of--
                    ``(i) children living in areas with high 
                concentrations of low-income families,
                    ``(ii) children from low-income families, or
                    ``(iii) children living in sparsely populated 
                areas.
            ``(B) The Secretary shall review criteria submitted by a 
        State educational agency for adjusting allocations under 
        paragraph (1) and shall approve such criteria only if the 
        Secretary determines that such criteria are reasonably 
        calculated to produce an adjusted allocation that reflects the 
        relative needs within the State's local educational agencies 
        based on the factors set forth in subparagraph (A).
    ``(c) Payment of Allocations.--
            ``(1) From the funds paid to it pursuant to section 2402 
        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 2423 the amount of its 
        allocation as determined under subsection (a).
            ``(2)(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.

                      ``Subpart 2--State Programs

``SEC. 2421. STATE USES OF FUNDS.

    ``(a) Authorized Activities.--A State educational agency may use 
funds reserved for State use under this section only for--
            ``(1) State administration of programs under this section 
        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 part; and
            ``(2) 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 part in any fiscal year 
may be used for State administration under subsection (a)(1).

``SEC. 2423. STATE APPLICATIONS.

    ``(a) Application Requirements.--Any State which desires to receive 
a grant 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 part;
            ``(2)(A) provides for an annual submission of data on the 
        use of funds, the types of services furnished, and the students 
        served under this section; and
            ``(B) in fiscal year 1998 provides for an evaluation of the 
        effectiveness of programs assisted under this subpart;
            ``(3) sets forth the allocation of such funds required to 
        implement section 2452;
            ``(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 part, 
        the State educational agency has not exercised and will not 
        exercise any influence in the decision making processes of 
        local educational agencies as to the expenditure made pursuant 
        to an application under section 2433; and
            ``(6) contain assurances that there is compliance with the 
        specific requirements of this part.
    ``(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.--Notwithstanding section 1745 of the Omnibus 
Budget Reconciliation Act of 1981, local educational agencies receiving 
less than an average of $5,000 each under this section need not be 
audited more frequently than once every 5 years.

            ``Subpart 3--Local Targeted Assistance Programs

``SEC. 2431. TARGETED USE OF FUNDS.

    ``(a) General Rule.--Funds allocated for use under this subpart 
shall be used by local educational agencies for targeted assistance 
described in subsection (b).
    ``(b) Targeted Assistance.--The targeted 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) instructional and educational materials, assessments, 
        and library services and materials (including media materials) 
        tied to high academic standards and which are part of an 
        overall education reform program;
            ``(3) promising education reform projects, including 
        effective schools and 21st Century Learning Center school 
        projects in accordance with subpart 4; and
            ``(4) computer hardware and software purchased under this 
        section should be used only for instructional purposes.

``SEC. 2432. ADMINISTRATIVE AUTHORITY.

    ``In order to conduct the activities authorized by this part, each 
State or local educational agency may use funds reserved for this part 
to make grants to and to enter into contracts with local educational 
agencies, institutions of higher education, libraries, museums, and 
other public and private nonprofit agencies, organizations, and 
institutions.

``SEC. 2433. LOCAL APPLICATIONS.

    ``(a) Contents of Application.--A local educational agency or 
consortia of local educational 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 
        targeted assistance programs described in section 2431 of this 
        part and describes the programs, projects and activities 
        designed to carry out such targeted assistance which it intends 
        to support, together with the reasons for selection of such 
        programs, projects and activities; and
            ``(B) sets forth the allocation of such funds required to 
        implement section 2452;
            ``(2) describes how assistance under this section 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 part, including the participation of children enrolled 
        in private, nonprofit schools in accordance with section 2452;
            ``(4) agrees to keep such records, and provide such 
        information to the State educational agency as may reasonably 
        be required for fiscal audit and program evaluation, concession 
        with the responsibilities of the State agency under this part; 
        and
            ``(5) provides in the allocation of funds for the 
        assistance authorized by this part, 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 section (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 part, a local educational agency 
shall have complete discretion in determining how funds under this 
subpart shall be divided among the areas of targeted assistance. In 
exercising such discretion, a local educational agency shall ensure 
that expenditures under this subpart carry out the purposes of this 
subpart and are used to meet the educational needs within the schools 
of such local educational agency.

             ``Subpart 4--General Administrative Provisions

``SEC. 2441. MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY.

    ``(a) Maintenance of Effort.--(1) 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 preceding fiscal year was not less than 90 percent of such combined 
fiscal effort or aggregate expenditures for the second preceding fiscal 
year.
    ``(2) The Secretary shall reduce the amount of the allocation of 
funds under this part in any fiscal year in the exact proportion to 
which the State fails to meet the requirements of paragraph (1) by 
falling below 90 percent of both the fiscal effort per student and 
aggregate expenditures (using the measure most favorable to the State), 
and no such lesser amount shall be used for computing the effort 
required under paragraph (1) for subsequent years.
    ``(3) 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.
    ``(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. 2442. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    ``(a) Participation on Equitable Basis.--(1) 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 
part or which serves the area in which a program or project assisted 
under this part 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 reserved 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 part.
    ``(2) If no program or project is carried out under subsection 
(a)(1) of this section 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 that district are provided with services 
and materials to the extent that would have occurred if the local 
educational agency had received funds under this part.
    ``(3) 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 
part 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 part 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 part 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) The control of funds provided under this part, 
and title to materials, equipment, and property repaired, remodeled, or 
constructed therewith, shall be in a public agency for the uses and 
purposes provided in this part, and a public agency shall administer 
such funds and property.
    ``(2) The provision of services pursuant to this section 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 part shall not be commingled 
with State or local funds.
    ``(d) State Prohibition Waiver.--If by reason of any provision of 
law a State or local educational agency is prohibited from providing 
for the participation in programs of children enrolled in private 
elementary and secondary schools, as required by this section, the 
Secretary shall waive such requirements and shall arrange for the 
provision of services to such children through arrangements which shall 
be subject to the requirements of this section.
    ``(e) Waiver and Provision of Services.--(1) 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) 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 part.
    ``(h) Review.--(1) 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 
at least 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) If a State or local educational agency is dissatisfied with 
the Secretary's final action after a proceeding under paragraph (1) of 
this subsection, it may, within 60 days after notice of such action, 
file with the United States court of appeals for the circuit in which 
such State is located a petition for review of that action. A copy of 
the petition shall be forthwith 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) 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 thereupon 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) Upon the filing of such petition, the court shall have 
jurisdiction to affirm the action of the Secretary or to set it 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 the Education Consolidation and 
Improvement Act of 1981 shall, to the extent consistent with the 
purposes of this chapter, apply to programs under this chapter.

``SEC. 2443. EVALUATIONS AND REPORTING.

    ``(a) Local Educational Agencies.--A local educational agency which 
receives financial assistance under this part shall report annually to 
the State educational agency on the use of funds under section 2431. 
Such reporting shall be carried out in a manner which minimizes the 
amount of paperwork required while providing the State educational 
agency with the necessary information under the preceding sentence. 
Such report shall be made available to the public.
    ``(b) State Educational Agencies.--A State educational agency which 
receives financial assistance under this part shall evaluate the 
effectiveness of State and local programs under this part in accordance 
with section 2423(a)(2)(B). That evaluation shall be submitted for 
review and comment by the State advisory committee and shall be made 
available to the public. The State educational agency shall submit to 
the Secretary a copy of the evaluation and a summary of the reports 
under subsection (a).
    ``(c) Reports.--(1) The Secretary, in consultation with State and 
local educational agency representatives, shall develop a model system 
which State educational agencies may use for data collection and 
reporting under this part.
    ``(2)(A) The Secretary shall submit annually a report to the 
Congress for the use of funds, the types of services furnished, and the 
students served under this part.
    ``(B) The Secretary shall not later than October 1, 1998, submit a 
report to the Congress summarizing evaluations under subsection (b) in 
order to provide a national overview of the uses of funds and 
effectiveness of programs under this part.

``SEC. 2444. FEDERAL ADMINISTRATION.

    ``(a) Technical Assistance.--The Secretary, upon request, shall 
provide technical assistance to State and local educational agencies 
under this part.
    ``(b) Rulemaking.--The Secretary shall issue regulations under this 
part only to the extent that such regulations are necessary to ensure 
that there is compliance with the specific requirements and assurances 
required by this part.
    ``(c) Availability of Appropriations.--Notwithstanding any other 
provision of law, unless expressly in limitation of this subsection, 
funds appropriated in any fiscal year to carry out activities under 
this part shall become available for obligation on July 1 of such 
fiscal year and shall remain available for obligation until the end of 
the subsequent fiscal year.

``SEC. 2445. APPLICATION OF GENERAL EDUCATION PROVISIONS ACT.

    ``(a) General Rule.--Except as otherwise specifically provided by 
this section, the General Education Provisions Act shall apply to the 
programs authorized by this part.
    ``(b) Applicability.--The following provisions of the General 
Education Provisions Act shall be superseded by the specified 
provisions of this part with respect to the programs authorized by this 
part:
            ``(1) Section 410(a)(1) of the General Education Provisions 
        Act is superseded by section 2254(b) of this part.
            ``(2) Section 433(a) of such Act is superseded by section 
        2454(a) of this part.
            ``(3) Section 436 of such Act is superseded by sections 
        2223 and 2233 of this part.
    ``(c) Special Rule.--Sections 440, 441, and 442 of the General 
Education Provisions Act, except to the extent that such sections 
relate to fiscal control and fund accounting procedures, may not apply 
to the programs authorized by this part and shall not be construed to 
authorize the Secretary to require any reports or take any actions not 
specifically authorized by this part.

           ``PART F--21ST CENTURY COMMUNITY LEARNING CENTERS

``SEC. 2451. FINDINGS.

    ``The Congress finds that--
            ``(1) a local public school often serves as a center for 
        the delivery of education and human resources for all members 
        of a community;
            ``(2) public schools, primarily in rural and inner city 
        communities, should collaborate with other public and nonprofit 
        agencies and organizations, local businesses, educational 
        entities (such as vocational and adult education programs, 
        school to work programs, community colleges, and universities), 
        recreational, cultural, and other community and human service 
        entities for the purpose of meeting the needs and expanding the 
        opportunities available to the residents of the communities 
        served by such schools; and
            ``(3) by using school facilities, equipment, and resources, 
        communities can promote a more efficient use of public 
        education facilities, especially in rural and inner city areas 
        where limited financial resources have enhanced the necessity 
        for local public schools to become social service centers.

``SEC. 2452. PROGRAM AUTHORIZATION AND DISTRIBUTION.

    ``(a) Grants by the Secretary.--The Secretary is authorized in 
accordance with the provisions of this subsection to make grants to 
rural and inner city schools or consortia thereof to plan, implement, 
or expand projects that benefit the educational, health, social 
service, cultural, and recreational needs of a rural or inner city 
community. No school or consortia thereof shall receive a grant award 
of less than $50,000 in each fiscal year, and such grant projects shall 
not exceed a 3-year period.
    ``(b) Application.--To be eligible to receive funds under this 
section, a school or consortia thereof shall submit an application to 
the Secretary of Education at such time and in such manner as the 
Secretary may reasonably prescribe, that shall include--
            ``(1) a comprehensive local plan that enables such school 
        to serve as a center for the delivery of education and human 
        resources for members of a community; and
            ``(2) an initial evaluation of needs, available resources, 
        and goals and objectives for the proposed community education 
        program to determine programs that will be developed to address 
        these needs:
                    ``(A) A mechanism 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 of 
                community-based organizations, related public agencies, 
                businesses, or other appropriate organizations.
                    ``(D) A description of how the school will assist 
                as a delivery center for existing and new services, 
                especially interactive telecommunication used for 
                education and professional training.
                    ``(E) The establishment of a facility utilization 
                policy that specifically states rules and regulations 
                for building and equipment use and supervision 
                guidelines;
            ``(3) the high technology, global economy of the 21st 
        century will require lifelong learning to keep America's 
        workforce competitive and successful, local public schools 
        should provide centers for lifelong learning and educational 
        opportunities for individuals of all ages; and
            ``(4) 21st Century Community Learning Centers enable the 
        entire community to develop an education strategy that 
        addresses the educational needs of all members of local 
        communities.
    ``(c) Priority.--The Secretary shall give priority to applications 
that offer a broad selection of services that address the needs of the 
community.

``SEC. 2453. USES OF FUNDS.

    ``(a) Authorized Programs.--Grants awarded under this section may 
be used to plan, implement, or expand community learning centers which 
shall 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 in conjunction 
        with recreation programs.
            ``(6) Nutrition, health, and/or physical therapy.
            ``(7) Expanded library service hours to serve community 
        needs.
            ``(8) Telecommunications and technology education programs 
        for all ages.
            ``(9) Parenting skills education programs.
            ``(10) Support and training for child day care providers.
            ``(11) Employment counseling, training, and placement.
            ``(12) Services for students who withdraw from school 
        before graduating high school, regardless of age.
            ``(13) Services for individuals who are either physically 
        or mentally challenged.

``SEC. 2454. AWARD OF GRANTS.

    ``(a) In General.--In approving grants under this section, 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.
    ``(b) Grant Period.--Grants may be awarded for a period not to 
exceed 3 years.

``SEC. 2455. DEFINITIONS.

    ``(a) The term `Community Learning Center' means the provision of 
educational, recreational, health, and social service programs for 
residents of all ages of a local community in public school buildings, 
primarily in rural and inner city areas, operated by the local 
educational agency in conjunction with local governmental agencies, 
businesses, vocational education programs, community colleges, 
universities, and cultural, recreational, and other community and human 
service entities.
    ``(b) The term `Secretary' means the Secretary of Education.

``SEC. 2456. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $25,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the fiscal 
years 1996-1999.

           ``TITLE III--EXPANDING OPPORTUNITIES FOR LEARNING

            ``PART A--FUND FOR THE IMPROVEMENT OF EDUCATION

``SEC. 3201. FUND FOR THE IMPROVEMENT OF EDUCATION.

    ``(a) Fund Authorized.--From funds appropriated under subsection 
(d), the Secretary is authorized to support nationally significant 
programs and projects to improve the quality of education, assist all 
students to meet challenging standards, and contribute to the 
achievement of the National Education Goals. The Secretary is 
authorized to carry out such programs and projects directly or through 
grants to, or contracts with, State and local educational agencies, 
institutions of higher education, and other public and private 
agencies, organizations, and institutions.
    ``(b) Uses of Funds.--(1) Funds under this section may be used 
for--
            ``(A) activities that will promote systemic educational 
        reform at the State and local levels, such as--
                    ``(i) research and development related to content 
                and performance standards and opportunity-to-learn 
                standards for student learning; and
                    ``(ii) the development and evaluation of model 
                strategies for assessment of student learning, 
                professional development for teachers and 
                administrators, parent and community involvement, and 
                other aspects of systemic reform;
            ``(B) demonstrations at the State and local levels that are 
        designed to yield nationally significant results, including 
        approaches to public school choice in accordance with the 
        requirements of part C and school-based decisionmaking;
            ``(C) joint activities with other agencies to assist the 
        effort to achieve the National Education Goals, including 
        activities related to improving the transition from preschool 
        to school and from school to work, as well as activities 
        related to the integration of education and health and social 
        services;
            ``(D) activities to promote and evaluate counseling and 
        mentoring for students, including intergenerational mentoring;
            ``(E) activities to promote comprehensive health education;
            ``(F) activities to promote environmental education;
            ``(G) activities to promote consumer, economic, and 
        personal finance education;
            ``(H) activities to assist students to demonstrate 
        competence in foreign languages;
            ``(I) studies and evaluation of various educational reform 
        strategies and innovations being pursued by the Federal 
        Government, States, and local educational agencies;
            ``(J) the identification and recognition of exemplary 
        schools and programs, such as Blue Ribbon Schools;
            ``(K) programs designed to promote gender equity in 
        education by evaluating and eliminating gender bias in 
        instruction and educational materials, identifying, and 
        analyzing gender inequities in educational practices, and 
        implementing and evaluating educational policies and practices 
        designed to achieve gender equity;
            ``(L) programs designed to reduce excessive student 
        mobility, retain students who move within a school district at 
        the same school, educate parents about the effect of mobility 
        on a child's education and encourage parents to participate in 
        school activities;
            ``(M) experiential-based learning, such as service-
        learning;
            ``(N) the development and expansion of public-private 
        partnership programs which extend the learning experience, via 
        computers, beyond the classroom environment into student homes; 
        and
            ``(O) other programs and projects that meet the purposes of 
        this section.
    ``(2) (A) Funds may also be used to establish a National Center for 
Second Language Development.
    ``(B) Composition.--The Center may include representation from--
            ``(i) a principle Federal language training institution 
        that has expertise in translation and interpretation with 
        responsibility for foreign language instruction of military, 
        foreign service officers and other Federal personnel; and
            ``(ii) other public, government and private entities with 
        expertise in the education and training of second language 
        curricula, as determined necessary by the Secretary.
    ``(C) Mission.--The Center may--
            ``(i) assess the economic and social benefits of second 
        language capabilities for the population of the United States;
            ``(ii) make recommendations to the Secretary of the most 
        appropriate means of increasing widespread second language 
        capabilities in the United States; and
            ``(iii) effectuate a greater second language capability 
        within the United States through activities that include: 
        developing and implementing model programs for children, 
        college students and adults; conducting research on effective 
        ways to teach second languages; developing teacher training 
        programs; and developing teaching materials.
    ``(3) The Secretary may also use funds under this section to 
complete the project periods for direct grants or contracts awarded 
under the provisions of the Elementary and Secondary Education Act of 
1965, part B of title III of the Augustus F. Hawkins-Robert T. Stafford 
Elementary and Secondary School Improvement Amendments of 1988, or 
title III of the Education for Economic Security Act, as these Acts 
were in effect on the day before enactment of the Improving America's 
Schools Act of 1994.
    ``(c) Awards.--(1) The Secretary may make awards under this section 
on the basis of competitions announced by the Secretary and may also 
support meritorious unsolicited proposals.
    ``(2) The Secretary shall ensure that projects and activities 
supported under this section are designed in such a way that their 
effectiveness may be readily determined.
    ``(3) The Secretary shall use a peer review process in reviewing 
applications for grants under this section and may use funds 
appropriated under subsection (d) for this purpose.
    ``(d) Authorization.--For the purpose of carrying out this section, 
there are authorized to be appropriated $35,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the fiscal years 
1996, 1997, 1998, and 1999.

                 ``PART B--GIFTED AND TALENTED CHILDREN

``SEC. 3301. SHORT TITLE.

    ``This part may be cited as the `Jacob K. Javits Gifted and 
Talented Students Education Act of 1994'.

``SEC. 3302. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds and declares that--
            ``(1) all students can learn to high standards and must 
        develop their talents and realize their potential if the United 
        States is to prosper;
            ``(2) gifted and talented students are a national resource 
        vital to the future of the Nation and its security and well-
        being;
            ``(3) too often schools fail to challenge students to do 
        their best work, and students who are not challenged will not 
        learn to high standards, fully develop their talents, and 
        realize their potential;
            ``(4) unless the special abilities of gifted and talented 
        students are recognized and developed during their elementary 
        and secondary school years, much of their special potential for 
        contributing to the national interest is likely to be lost;
            ``(5) gifted and talented students from economically 
        disadvantaged families and areas, and students of limited 
        English proficiency are at greatest risk of being unrecognized 
        and of not being provided adequate or appropriate educational 
        services;
            ``(6) State and local educational agencies and private 
        nonprofit schools often lack the necessary specialized 
        resources to plan and implement effective
        programs for the early identification of gifted and talented 
        students for the provision of educational services and programs 
        appropriate to their special needs;
            ``(7) the Federal Government can best carry out the limited 
        but essential role of stimulating research and development and 
        personnel training and providing a national focal point of 
        information and technical assistance that is necessary to 
        ensure that the Nation's schools are able to meet the special 
        educational needs of gifted and talented students, and thereby 
        serve a profound national interest; and
            ``(8) the experience and knowledge gained in developing and 
        implementing programs for gifted and talented students can and 
        should be used as a basis to develop a rich and challenging 
        curriculum for all students.
    ``(b) Statement of Purpose.--
            ``(1) It is the purpose of this part to provide financial 
        assistance to State and local educational agencies, 
        institutions of higher education, and other public and private 
        agencies and organizations, to initiate a coordinated program 
        of research, demonstration projects, personnel training, and 
        similar activities designed to build a nationwide capability in 
        elementary and secondary schools to meet the special 
        educational needs of gifted and talented students. In addition, 
        the purpose of this part is to encourage the development of 
        rich and challenging curricula for all students through the 
        appropriate application and adaptation of materials and 
        instructional methods developed under this part.
            ``(2) It is also the purpose of this part to supplement and 
        make more effective the expenditure of State and local funds, 
        for the education of gifted and talented students.

``SEC. 3303. DEFINITIONS.

    ``For purposes of this part, the term `gifted and talented 
students' means children and 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.

``SEC. 3304. AUTHORIZED PROGRAMS.

    ``(a) Establishment of Program.--
            ``(1) From the sums appropriated under section 3308 in any 
        fiscal year the Secretary (after consultation with experts in 
        the field of the education of gifted and talented students) 
        shall make grants to or enter into contracts with State 
        educational agencies, local educational agencies, institutions 
        of higher education, or other public agencies and private 
        agencies and organizations (including Indian tribes and 
        organizations as defined by the Indian Self-Determination and 
        Education Assistance Act and Hawaiian native organizations) to 
        assist such agencies, institutions, and organizations which 
        submit applications in carrying out programs or projects 
        authorized by this Act that are designed to meet the 
        educational needs of gifted and talented students, including 
        the training of personnel in the education of gifted and 
        talented students and in the use, where appropriate, of gifted 
        and talented services, materials, and methods for all students.
            ``(2) Applications for funds must include a section on how 
        the proposed gifted and talented services, materials, and 
        methods could be adapted, if appropriate, for use by all 
        students and a section on how the proposed programs can be 
        evaluated.
    ``(b) Uses of Funds.--Programs and projects assisted under this 
section may include--
            ``(1) professional development (including fellowships) for 
        personnel (including leadership personnel) involved in the 
        education of gifted and talented students;
            ``(2) establishment and operation of model projects and 
        exemplary programs for serving gifted and talented students, 
        including innovative methods for identifying and educating 
        students who may not be served by traditional gifted and 
        talented programs, summer programs, mentoring programs, service 
        learning programs, and cooperative programs involving business, 
        industry, and education;
            ``(3) training of personnel involved in gifted and talented 
        programs with respect to the impact of gender role 
        socialization on the educational needs of gifted and talented 
        children and in gender equitable education methods, techniques, 
        and practices;
            ``(4) strengthening the capability of State educational 
        agencies and institutions of higher education to provide 
        leadership and assistance to local educational agencies and 
        nonprofit private schools in the planning, operation, and 
        improvement of programs for the identification and education of 
        gifted and talented students and the appropriate use of gifted 
        and talented programs and methods to serve all students;
            ``(5) programs of technical assistance and information 
        dissemination which would include how gifted and talented 
        programs and methods, where appropriate, could be adapted for 
        use by all students; and
            ``(6) carrying out--
                    ``(A) research on methods and techniques for 
                identifying and teaching gifted and talented students, 
                and for using gifted and talented programs and methods 
                to serve all students; and
                    ``(B) program evaluations, surveys, and the 
                collection, analysis, and development of information 
                needed to accomplish the purposes of this part.
    ``(c) Establishment of National Center.--
            ``(1) The Secretary (after consultation with experts in the 
        field of the education of gifted and talented students) shall 
        establish a National Center for Research and Development in the 
        Education of Gifted and Talented Children and Youth through 
        grants to or contracts with one or more institutions of higher 
        education or State educational agencies, or a combination or 
        consortium of such institutions and agencies, for the purpose 
        of carrying out activities described in paragraph (5) of 
        subsection (b).
            ``(2) Such National Center shall have a Director. The 
        Secretary may authorize the Director to carry out such 
        functions of the National Center as may be agreed upon through 
        arrangements with other institutions of higher education, State 
        or local educational agencies, or other public or private 
        agencies and organizations.
    ``(d) Limitation.--Not more than 30 percent of the funds available 
in any fiscal year to carry out the programs and projects authorized by 
this section may be used to conduct activities pursuant to subsections 
(b)(5) or (c).
    ``(e) Coordination.--Research activities supported under this 
section--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to ensure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by the Office; and
            ``(2) may include collaborative research activities which 
        are jointly funded and carried out with the Office of Education 
        Research and Improvement.

``SEC. 3305. PROGRAM PRIORITIES.

    ``(a) General Priority.--In the administration of this part the 
Secretary shall give highest priority--
            ``(1) to the identification of and services to gifted and 
        talented students who may not be identified and served through 
        traditional assessment methods (including economically 
        disadvantaged individuals, individuals of limited-English 
        proficiency, and individuals with disabilities; and
            ``(2) to programs and projects designed to develop or 
        improve the capability of schools in an entire State or region 
        of the Nation through cooperative efforts and participation of 
        State and local educational agencies, institutions of higher 
        education, and other public and private agencies and 
        organizations (including business, industry, and labor), to 
        plan, conduct, and improve programs for the identification of 
        and service to gifted and talented students, such as mentoring 
        and apprenticeship programs.
    ``(b) Service Priority.--In approving applications under section 
3304(a) of this part, the Secretary shall assure that in each fiscal 
year at least one-half of the applications approved address the 
priority in section 3305(a)(1).

``SEC. 3306. GENERAL PROVISIONS.

    ``(a) Participation of Private School Children and Teachers.--In 
making grants and entering into contracts under this part, the 
Secretary shall ensure, where appropriate, that provision is made for 
the equitable participation of students and teachers in private 
nonprofit elementary and secondary schools, including the participation 
of teachers and other personnel in professional development programs 
for serving such children.
    ``(b) Review, Dissemination, and Evaluation.--The Secretary shall--
            ``(1) use a peer review process in reviewing applications 
        under this part;
            ``(2) ensure that information on the activities and results 
        of projects funded under this part is disseminated to 
        appropriate State and local agencies and other appropriate 
        organizations, including nonprofit private organizations; and
            ``(3) evaluate the effectiveness of programs under this 
        part, both in terms of the impact on students traditionally 
        served in separate gifted and talented programs and on other 
        students, and submit the results of such evaluation to Congress 
        not later than January 1, 1998.

``SEC. 3307. ADMINISTRATION.

    ``The Secretary shall establish or designate an administrative unit 
within the Department of Education--
            ``(1) to administer the programs authorized by this part;
            ``(2) to coordinate all programs for gifted and talented 
        students administered by the Department;
            ``(3) to serve as a focal point of national leadership and 
        information on the educational needs of gifted and talented 
        students and the availability of educational services and 
        programs designed to meet such needs; and
            ``(4) to assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying research 
        priorities which reflect the needs of gifted and talented 
        students.
The administrative unit established or designated pursuant to this 
section shall be headed by a person of recognized professional 
qualifications and experience in the field of the education of gifted 
and talented students.

``SEC. 3308. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $10,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the fiscal 
years 1996, 1997, 1998, and 1999 to carry out the provisions of this 
part.

                    ``PART C--PUBLIC CHARTER SCHOOLS

``SEC. 3401. PURPOSE.

    ``It is the purpose of this part to increase national understanding 
of the charter schools model by--
            ``(1) providing financial assistance for the design and 
        initial implementation of charter schools; and
            ``(2) evaluating the effects of those schools on improving 
        student achievement, including their effects on students, 
        staff, and parents.

``SEC. 3402. PROGRAM AUTHORIZED.

    ``(a) General.--The Secretary may make grants to eligible 
applicants for the design and initial operation of charter schools.
    ``(b) Project Periods.--Each such grant shall be for a period of 
not more than three years, of which the grantee may use--
            ``(1) no more than 18 months for planning and program 
        design; and
            ``(2) no more than two years for the initial implementation 
        of the charter school.
    ``(c) Limitation.--The Secretary shall not make more than one grant 
to support a particular charter school.

``SEC. 3403. APPLICATIONS.

    ``(a) Applications Required.--Any eligible applicant that desires 
to receive a grant under this part shall submit an application to the 
Secretary at such time and in such manner as the Secretary may require.
    ``(b) Scope of Application.--Each such application may request 
assistance for a single charter school or for a cluster of schools, 
which may include a high school and its feeder elementary and middle 
schools, within a community.
    ``(c) Application Contents.--Each such application shall include, 
for each charter school for which assistance is sought--
            ``(1) a description of the educational program to be 
        implemented by the proposed charter school, including--
                    ``(A) how the program will enable all students to 
                meet challenging State performance standards;
                    ``(B) the grade levels or ages of children to be 
                served; and
                    ``(C) the curriculum and instructional practices to 
                be used;
            ``(2) a description of how the school will be managed;
            ``(3) a description of--
                    ``(A) the objectives of the school; and
                    ``(B) the methods by which the school will 
                determine its progress toward achieving those 
                objectives;
            ``(4) a description of the administrative relationship 
        between the charter school and the local educational agency 
        that will authorize or approve the school's charter and act as 
        the grantee under this part;
            ``(5) a description of how parents and other members of the 
        community will be involved in the design and implementation of 
        the charter school;
            ``(6) a description of how the local educational agency 
        will provide for continued operation of the school once the 
        Federal grant has expired, if such agency determines that the 
        school is successful;
            ``(7) 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;
            ``(8) a description of how the grant funds would be used;
            ``(9) a description of how grant funds would be used in 
        conjunction with other Federal programs administered by the 
        Secretary;
            ``(10) a description of how students in the community will 
        be--
                    ``(A) informed about the school; and
                    ``(B) given an equal opportunity to attend the 
                school;
            ``(11) an assurance that the applicant will annually 
        provide the Secretary such information as the Secretary may 
        require to determine if the charter school is making 
        satisfactory progress toward achieving the objectives described 
        under paragraph (3);
            ``(12) an assurance that the applicant will cooperate with 
        the Secretary in evaluating the program authorized by this 
        part; and
            ``(13) such other information and assurances as the 
        Secretary may require.
    ``(d) State Educational Agency Approval Required.--(1) A local 
educational agency that desires to receive a grant under this part 
shall obtain the State educational agency's approval of its application 
before submitting it to the Secretary.
    ``(2) A State educational agency that approves an application of a 
local educational agency shall provide the local educational agency, 
and such local agency shall include in its application to the 
Secretary, a statement that the State has granted, or will grant, the 
waivers and exemptions from State requirements described in such local 
agency's application.

``SEC. 3404. SELECTION OF GRANTEES; WAIVERS.

    ``(a) Criteria.--The Secretary shall select projects to be funded 
on the basis of the quality of the applications, 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 and, 
        if applicable, the local educational agency to the school;
            ``(3) the extent of community support for the application;
            ``(4) the ambitiousness of the objectives for the school;
            ``(5) the quality of the plan for assessing achievement of 
        those objectives; and
            ``(6) the likelihood that the school will meet those 
        objectives and improve educational results for students.
    ``(b) Peer Review.--The Secretary shall use a peer review process 
to review applications for grants under this section.
    ``(c) Diversity of Projects.--The Secretary may approve projects in 
a manner that ensures, to the extent possible, that they--
            ``(1) are distributed throughout different areas of the 
        Nation, including in urban and rural areas; and
            ``(2) represent a variety of educational approaches.
    ``(d) Waivers.--The Secretary may waive any statutory or regulatory 
requirement that the Secretary is responsible for enforcing, except for 
any such requirement relating to the elements of a charter school 
described in section 3407(1), if--
            ``(1) the waiver is requested in an approved application or 
        by a grantee under this part; and
            ``(2) the Secretary determines that granting such a waiver 
        would promote the purpose of this part.

``SEC. 3405. USES OF FUNDS.

    ``A recipient of a grant under this part may use the grant funds 
only for--
            ``(1) post-award planning and design of the educational 
        program, which may include--
                    ``(A) refinement of the desired educational results 
                and of the methods for measuring progress toward 
                achieving those results; and
                    ``(B) professional development of teachers and 
                other staff who will work in the charter school; and
            ``(2) initial implementation of the charter school, which 
        may include--
                    ``(A) informing the community about the school;
                    ``(B) acquiring necessary equipment;
                    ``(C) acquiring or developing curriculum materials; 
                and
                    ``(D) other operational costs that cannot be met 
                from State or local sources.

``SEC. 3406. NATIONAL ACTIVITIES.

    ``The Secretary may reserve up to 10 percent of the funds 
appropriated for this part for any fiscal year for--
            ``(1) peer review of applications under section 3404(b); 
        and
            ``(2) an evaluation of the impact of charter schools on 
        student achievement, including those assisted under this part.

``SEC. 3407. DEFINITIONS.

    ``As used in this part, the following terms have the following 
meanings:
            ``(1) The term `charter school' means a school that--
                    ``(A) in accordance with an enabling State statute, 
                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;
                    ``(C) operates in pursuit of a specific set of 
                educational objectives determined by the school's 
                developer and agreed to by the local educational agency 
                applying for a grant on behalf of the school;
                    ``(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, 
                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) 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 public 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; and
                    ``(K) operates in accordance with State law.
            ``(2) The term `developer' means an individual or group of 
        individuals (including a public or private nonprofit 
        organization), which may include teachers, administrators and 
        other school staff, parents, or other members of the local 
        community in which a charter school project will be carried 
        out.
            ``(3) The term `eligible applicant' means a local 
        educational agency, in partnership with a developer with an 
        application approved under section 3403(d).

``SEC. 3408. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $15,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the fiscal years 1996, 1997, 1998, and 
1999.

                      ``PART D--ARTS IN EDUCATION

                ``Subpart 1--Support for Arts Education

``SEC. 3501. SUPPORT FOR ARTS EDUCATION.

    ``(a) Findings.--The Congress finds that--
            ``(1) the arts are forms of understanding and ways of 
        knowing that are fundamentally important to education;
            ``(2) the arts are important to excellent education and to 
        effective school reform;
            ``(3) the most significant contribution of the arts to 
        education reform is the transformation of teaching and 
        learning;
            ``(4) this transformation is best realized in the context 
        of comprehensive, systemic education reform;
            ``(5) demonstrated competency in the arts for American 
        students is among the National Education Goals;
            ``(6) the arts can motivate at-risk students to stay in 
        school and become active participants in the educational 
        process; and
            ``(7) arts education should be an integral part of the 
        elementary and secondary school curriculum.
    ``(b) Purpose. The purposes of this part are to--
            ``(1) support systemic education reform by strengthening 
        arts education as an integral part of the elementary and 
        secondary school curriculum;
            ``(2) help ensure that all students have the opportunity to 
        learn to challenging standards in the arts; and
            ``(3) support the national effort to enable all students to 
        demonstrate competence in the arts in accordance with the 
        National Education Goals.
    ``(c) Eligible Recipients.--In order to carry out the purposes of 
this part, the Secretary is authorized to make grants to, or enter into 
contracts or cooperative agreements with--
            ``(1) State educational agencies;
            ``(2) local educational agencies;
            ``(3) institutions of higher education; and
            ``(4) other public and private agencies, institutions, and 
        organizations.
    ``(d) Authorized Activities.--Funds under this part may be used 
for--
            ``(1) research on arts education;
            ``(2) the development of, and dissemination of information 
        about, model arts education programs;
            ``(3) the development of model arts education assessments 
        based on high standards;
            ``(4) the development and implementation of curriculum 
        frameworks for arts education;
            ``(5) the development of model preservice and inservice 
        professional development programs for arts educators and other 
        instructional staff;
            ``(6) supporting collaborative activities with other 
        Federal agencies or institutions involved in arts education, 
        such as the National Endowment for the Arts, the Institute of 
        Museum Services, the John F. Kennedy Center for the Performing 
        Arts, and the National Gallery of Art;
            ``(7) supporting model projects and programs in the 
        performing arts for children and youth through arrangements 
        made with the John F. Kennedy Center for the Performing Arts;
            ``(8) supporting model projects and programs in the arts 
        for individuals with disabilities through arrangements with the 
        organization, Very Special Arts;
            ``(9) supporting model projects and programs to integrate 
        arts education into the regular elementary and secondary school 
        curriculum; and
            ``(10) other activities that further the purposes of this 
        part.
    ``(e) Coordination.--(1) A recipient of funds under this part 
shall, to the extent possible, coordinate its project with appropriate 
activities of public and private cultural agencies, institutions, and 
organizations, including museums, arts education associations, 
libraries, and theaters.
    ``(2) In carrying out this part, the Secretary shall coordinate 
with the National Endowment for the Arts, the Institute of Museum 
Services, the John F. Kennedy Center for the Performing Arts, and the 
National Gallery of Art.
    ``(f) Authorization of Appropriations.--For the purpose of carrying 
out this subpart, there are authorized to be appropriated $11,000,000 
for fiscal year 1995 and such sums as may be necessary for each of the 
fiscal years 1996, 1997, 1998, and 1999.

                      ``Subpart 2--Community Arts

``SEC. 3502. SHORT TITLE.

    ``This subpart may be cited as the ``Community Arts Partnership Act 
of 1994''.
    ``(a) Findings.--Congress finds that--
            ``(1) with local school budgets cut there are in-adequate 
        arts programs available for children in schools, especially at 
        the elementary level;
            ``(2) the arts promote progress in academic subjects as 
        shown by research conducted by the National Endowment for the 
        Arts;
            ``(3) the arts access multiple human intelligences and 
        develop higher-order thinking skills;
            ``(4) the arts generate self-esteem and positive emotional 
        responses to learning; and
            ``(5) children who receive instruction in the arts remain 
        in school longer and are more successful than children who do 
        not receive such instruction.
    ``(b) Purpose.--The purpose of this part is to make demonstration 
grants to eligible entities to improve the educational performance and 
future potential of at-risk children and youth by providing 
comprehensive and coordinated educational and cultural services.
    ``(c) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to eligible entities to pay the Federal share of the 
        costs of the activities described in subsection (f).
            ``(2) Special requirements.--The Secretary shall award 
        grants under this Act only to programs designed to--
                    ``(A) promote educational and cultural services;
                    ``(B) provide multi-year services to at-risk 
                children and youth;
                    ``(C) serve the target population described in 
                subsection (e);
                    ``(D) provide integration of community cultural 
                resources in the regular curriculum;
                    ``(E) focus school and cultural resources in the 
                community on coordinated cultural services to address 
                the needs of at-risk children and youth;
                    ``(F) provide effective cultural linkages from 
                preschool programs, including the Head Start Act and 
                preschool grants under the Individuals with 
                Disabilities Education Act, to elementary schools;
                    ``(G) facilitate school-to-work transition from 
                secondary schools and alternative schools to job 
                training, higher education, and employment;
                    ``(H) increase parental and community involvement 
                in the educational, social, and cultural development of 
                at-risk youth; or
                    ``(I) replicate programs and strategies that 
                provide high quality coordinated educational and 
                cultural services and that are designed to integrate 
                such coordination into the regular curriculum.
            ``(3) Requirement of coordination.--Grants may only be 
        awarded under this part to eligible entities that agree to 
        coordinate activities carried out under other Federal, State, 
        and local grants, received by the members of the partnership 
        for purposes and target populations described in this part, 
        into an integrated service delivery system located at a school, 
        cultural, or other community-based site accessible to and 
        utilized by at-risk youth.
            ``(4) Duration.--Grants made under this part may be 
        renewable for a maximum of 5 years if the Secretary determines 
        that the eligible recipient has made satisfactory progress 
        toward the achievement of the program objectives described in 
        application.
            ``(5) Geographic distribution.--In awarding grants under 
        this part, the Secretary shall ensure--
                    ``(A) an equitable geographic distribution; and
                    ``(B) an equitable distribution to both urban and 
                rural areas with a high proportion of at-risk youth as 
                defined in subsection (e).
    ``(d) Eligibility.--
            ``(1) Services for in-school youth.--For the purpose of 
        providing a grant under this part to serve in-school children 
        and youth, the term `eligible entity' means a partnership 
        between a local education agency that is eligible for funds 
        under title I of this Act, and at least 1 institution of higher 
        education or cultural entity located within or accessible to 
        the geographical boundaries of the local education agency with 
        a history of providing quality services to the community, and 
        which may include--
                    ``(A) nonprofit institutions of higher education; 
                museums; libraries; performing, presenting and 
                exhibiting arts organizations; literary arts 
                organizations; local arts organizations; and zoological 
                and botanical organizations; and
                    ``(B) private for-profit entities with a history of 
                training children and youth in the arts.
            ``(2) Services for out-of-school youth.--For purposes of 
        providing a grant under this part to serve out-of-school youth, 
        the term `eligible entity' means a partnership between at least 
        1 entity of the type described in paragraph (A) or (B) of 
        subsection (1), or a local education agency eligible for funds 
        under title I of this Act and at least 1 cultural entity 
        described in subsection (1).
    ``(e) Target Population.--In order to receive a grant under this 
part, an eligible entity shall serve--
            ``(1) students enrolled in schools in participating 
        schoolwide projects assisted under title I of this Act and the 
        families of such students; or
            ``(2) out-of-school youth at risk of having limited future 
        options as a result of teenage pregnancy and parenting, 
        substance abuse, recent migration, disability, limited English 
        proficiency, family migration, illiteracy, being the child of a 
        teen parent, living in a single parent household, or being a 
        high school dropout; or
            ``(3) any combination of in school and out-of-school at-
        risk youth.
    ``(f) Authorized Activities.--
            ``(1) In general.--Funds made under this part may be used--
                    ``(A) to plan, develop, acquire, expand, and 
                improve school-based or community-based coordinated 
                educational and cultural programs to strengthen the 
                educational performance and future potential of in-
                school and out-of-school at-risk youth through 
                cooperative agreements, contracts for services, or 
                administrative coordination;
                    ``(B) to provide at-risk students with integrated 
                cultural activities designed to develop a love of 
                learning to ensure the smooth transition of preschool 
                children to elementary school;
                    ``(C) to design collaborative cultural activities 
                for students in secondary or alternative schools that 
                ensure the smooth transition to job training, higher 
                education, or full employment;
                    ``(D) to provide child care for children of at-risk 
                students who would not otherwise be able to participate 
                in the program;
                    ``(E) to provide transportation necessary for 
                participation in the program;
                    ``(F) to work with existing school personnel to 
                develop curriculum materials and programs in the arts;
                    ``(G) to work with existing school personnel on 
                staff development activities that encourage the 
                integration of the arts into the curriculum;
                    ``(H) for stipends that allow local artists to work 
                with at-risk children and youth in the schools;
                    ``(I) for cultural programs that encourage the 
                active participation of parents in their children's 
                education;
                    ``(J) for programs that use the art reform current 
                school practices, including lengthening the school day 
                or academic year;
                    ``(K) for appropriate equipment and necessary 
                supplies; and
                    ``(L) for evaluation, administration, and 
                supervision.
            ``(2) Priority.--In providing assistance under this part, 
        the Secretary shall give priority to eligible entities that 
        provide comprehensive services that extend beyond traditional 
        school or service hour, that may include year round programs 
        that provide services in the evenings and on weekends.
            ``(3) Planning grants.--
                    ``(A) Application.--An eligible entity may submit 
                an application to the Secretary for a planning grant 
                for an amount not to exceed $50,000. Such grants shall 
                be for periods of not more than 1 year.
                    ``(B) Limit on planning grants.--Not more than 10 
                percent of the amounts appropriated in each fiscal year 
                under this part shall be used for grants under this 
                subsection, and an eligible entity may receive not more 
                than 1 such planning grant.
    ``(g) General Provisions.--
            ``(1) In general.--Each eligible entity desiring a grant 
        under this part shall submit an application to the Secretary at 
        such time, in such manner, and accompanied by such information 
        as the Secretary may reasonably require.
            ``(2) Contents.--Each application submitted pursuant to 
        subsection (a) shall--
                    ``(A) describe the cultural entity or entities that 
                will participate in the partnership;
                    ``(B) describe the target population to be served;
                    ``(C) describe the services to be provided;
                    ``(D) describe a plan for evaluating the success of 
                the program;
                    ``(E) describe, for a local educational agency 
                participant, how services will be perpetuated beyond 
                the length of the grant;
                    ``(F) describe the manner in which the eligible 
                entity will improve the educational achievement or 
                future potential of at-risk youth through more 
                effective coordination of cultural services in the 
                community;
                    ``(G) describe the overall and operational goals of 
                the program; and
                    ``(H) describe the nature and location of all 
                planned sites where services will be delivered and a 
                description of services which will be provided at each 
                site.
    ``(h) Payments--Federal Share.--
            ``(1) Payments.--The Secretary shall pay to each eligible 
        entity having an application approved under subsection (g) the 
        Federal share of the cost of the activities described in the 
        application.
            ``(2) Amounts of grants.--The amount of a grant made under 
        this part may not be less than $100,000 or exceed $500,000 in 
        the first year of such grant.
            ``(3) Federal share.--The Federal share shall be 80 
        percent.
            ``(4) Non-federal share.--The non-Federal share shall be 
        equal to 20 percent and may be in cash or in kind, fairly 
        evaluated, including facilities or services.
            ``(5) Limitation.--Not more than 25 percent of any grant 
        under this part may be used for noninstructional services such 
        as those described in paragraphs D, E, and L of subsection (f).
            ``(6) Supplement and not supplant.--Grant funds awarded 
        under this part shall be used to supplement not supplant the 
        amount of funds made available from non-Federal sources, for 
        the activities assisted under this part, in amounts that exceed 
        the amounts expended for such activities in the year preceding 
        the year for which the grant is awarded.
            ``(7) Dissemination of models.--The Secretary shall 
        disseminate information concerning successful models under this 
        part through the National Diffusion Network.
     ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subpart, $75,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the fiscal years 
1996, 1997, 1998, and 1999.

            ``PART E--INEXPENSIVE BOOK DISTRIBUTION PROGRAM

``SEC. 3601. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING 
              MOTIVATION.

    ``(a) Authorization.--The Secretary is authorized to enter into a 
contract with Reading Is Fundamental (hereinafter in this section 
referred to as `the contractor') to support and promote programs, which 
include the distribution of inexpensive books to students, that 
motivate children to read.
    ``(b) Requirements of Contract.--Any contract entered into under 
subsection (a) shall--
            ``(1) provide that the contractor will enter into 
        subcontracts with local private nonprofit groups or 
        organizations or with public agencies under which each 
        subcontractor will agree to establish, operate, and provide the 
        non-Federal share of the cost of reading motivation programs 
        that include the distribution of books, by gift, to the extent 
        feasible, or by loan, to children up through high school age, 
        including those in family literacy programs;
            ``(2) provide that funds made available to subcontractors 
        will be used only to pay the Federal share of the cost of such 
        programs;
            ``(3) provide that in selecting subcontractors for initial 
        funding, the contractor will give priority to programs that 
        will serve a substantial number or percentage of children with 
        special needs, such as--
                    ``(A) low-income children, particularly in high-
                poverty areas;
                    ``(B) children at risk of school failure;
                    ``(C) children with disabilities, including 
                children with serious emotional disturbance;
                    ``(D) foster children;
                    ``(E) homeless children;
                    ``(F) migrant children;
                    ``(G) children without access to libraries;
                    ``(H) institutionalized or incarcerated children; 
                and
                    ``(I) children whose parents are institutionalized 
                or incarcerated;
            ``(4) provide that the contractor will provide such 
        technical assistance to subcontractors as may be necessary to 
        carry out the purpose of this section;
            ``(5) provide that the contractor will annually report to 
        the Secretary the number of, and describe, programs funded 
        under paragraph (3); and
            ``(6) include such other terms and conditions as the 
        Secretary determines to be appropriate to ensure the 
        effectiveness of such programs.
    ``(c) Restriction on Payments.--The Secretary shall make no payment 
of the Federal share of the cost of acquiring and distributing books 
under any contract under this section unless the Secretary determines 
that the contractor or subcontractor, as the case may be, has made 
arrangements with book publishers or distributors to obtain books at 
discounts at least as favorable as discounts that are customarily given 
by such publisher or distributor for book purchases made under similar 
circumstances in the absence of Federal assistance.
    ``(d) Definition of `Federal Share'.--For the purpose of this 
section, the term `Federal share' means the portion of the cost to a 
subcontractor of purchasing books to be paid with funds made available 
under this section. The Federal share shall be established by the 
Secretary, and shall not exceed 75 percent, except that the Federal 
share for programs serving children of migrant or seasonal farmworkers 
shall be 100 percent.
    ``(e) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $10,300,000 
for fiscal year 1995 and such sums as may be necessary for each of the 
fiscal years 1996, 1997, 1998, and 1999.

                       ``PART F--CIVIC EDUCATION

``SEC. 3701. INSTRUCTION ON THE HISTORY AND PRINCIPLES OF DEMOCRACY IN 
              THE UNITED STATES.

    ``(a) General Authority.--
            ``(1) Program established.--(A) The Secretary shall carry 
        out a program to enhance the attainment of Goals Three and Six 
        of the National Education Goals by educating students about the 
        history and principles of the Constitution of the United 
        States, including the Bill of Rights, and to foster civic 
        competence and responsibility.
            ``(B) Such program shall be known as `We the People . . . 
        The Citizen and the Constitution'.
            ``(2) Educational activities.--The program required by 
        paragraph (1) shall--
                    ``(A) continue and expand the educational 
                activities of the We the People . . . The Citizen and 
                the Constitution program administered by the Center for 
                Civic Education; and
                    ``(B) enhance student attainment of challenging 
                content standards in civics and government.
            ``(3) Contract or grant authorized.--The Secretary is 
        authorized to enter into a contract or grant with the Center 
        for Civic Education to carry out the program required by 
        paragraph (1).
    ``(b) Program Content.--The education program authorized by this 
section shall provide--
            ``(1) a course of instruction on the basic principles of 
        our constitutional democracy and the history of the 
        Constitution and the Bill of Rights;
            ``(2) school and community simulated congressional hearings 
        following the course of study at the request of participating 
        schools; and
            ``(3) an annual national competition of simulated 
        congressional hearings for secondary students who wish to 
        participate in such program.
    ``(c) Program Participants.--The education program authorized by 
this section shall be made available to public and private elementary 
and secondary schools in the 435 congressional districts, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, 
and the District of Columbia.
    ``(d) Special Rule.--Funds provided under this section may be used 
for the advanced training of teachers in civics and government after 
the provisions of subsection (b) have been implemented.

``SEC. 3702. INSTRUCTION IN CIVICS, GOVERNMENT, AND THE LAW.

    ``(a) Program Established.--The Secretary shall carry out a program 
of grants and contracts to assist State and local educational agencies 
and other public and private nonprofit agencies, organizations and 
institutions to enhance--
            ``(1) attainment by students of challenging content 
        standards in civics, government, and the law; and
            ``(2) attainment by the Nation of Goals Three and Six of 
        the National Education Goals.
    ``(b) Authorized Activities.--Assistance under this section may 
support new and ongoing programs in elementary and secondary schools 
that provide for--
            ``(1) the development and implementation of curricular 
        programs that enhance student understanding of--
                    ``(A) the values and principles which underlie, and 
                the institutions and processes which comprise, our 
                system of government;
                    ``(B) the role of law in our constitutional 
                democracy, including activities to promote--
                            ``(i) legal literacy; and
                            ``(ii) a dedication by students to the use 
                        of non-violent means of conflict resolution 
                        such as arbitration, mediation, negotiation, 
                        trials, and appellate hearings; and
                    ``(C) the rights and responsibilities of 
                citizenship;
            ``(2) professional development for teachers, including pre-
        service and in-service training;
            ``(3) outside-the-classroom learning experiences for 
        students, including community service activities;
            ``(4) the active participation of community leaders, from 
        the public and private sectors, in the schools; and
            ``(5) the provision of technical assistance to State and 
        local educational agencies and other institutions and 
        organizations working to further the progress of the Nation in 
        attaining the Goals Three and Six of the National Education 
        Goals in civics and government.
    ``(c) Applications, Peer Review and Priority.--
            ``(1) Submission of applications.--A State or local 
        educational agency, other public or private nonprofit agency, 
        organization or institution that desires to receive a grant or 
        enter into a contract under this section shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing or accompanied by such information as the Secretary 
        may reasonably require.
            ``(2) Peer review.--(A) The Secretary shall convene a panel 
        of individuals for purpose of reviewing and rating applications 
        submitted under paragraph (1).
            ``(B) Such individuals shall have experience with education 
        programs in civics, government, and the law.
            ``(3) Priority.--In making grants or awarding contracts 
        under this section, the Secretary shall give priority 
        consideration to applications which propose the operation of 
        statewide programs.
    ``(d) Duration of Grants and Exception.--
            ``(1) Duration.--Except as provided in paragraph (2), the 
        Secretary shall make grants and enter into contracts under this 
        section for periods of 2 or 3 years.
            ``(2) Exception.--The Secretary may make a grant or enter 
        into a contract under this section for a period of less than 2 
        years if the Secretary determines that special circumstances 
        exist which warrant a one year grant or contract award.

``SEC. 3703. REPORT; AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Report.--The Secretary shall report, on a biennial basis, to 
the Committee on Education and Labor of the House of Representatives 
and to the Committee on Labor and Human Resources of the Senate related 
to the distribution and use of funds authorized under this part.
    ``(b) Authorization of Appropriations.--
            ``(1) General.--To carry out this part, there are 
        authorized to be appropriated $15,000,000 for fiscal year 1995 
        and such sums as may be necessary for each of the fiscal years 
        1996, 1997, 1998, and 1999.
            ``(2) Allocation.--From the amount appropriated under 
        subsection (a), the Secretary shall allocate--
                    ``(A) 40 percent of such amount to carry out 
                section 3701; and
                    ``(B) 60 percent of such amount to carry out 
                section 3702.

                  ``PART G--NATIVE HAWAIIAN EDUCATION

``SEC. 3801. SHORT TITLE.

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

``SEC. 3802. FINDINGS.

    ``The Congress finds that:
            ``(1) Native Hawaiians comprise 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 prior to the arrival of the first non-
        indigenous people in 1778.
            ``(2) The Native Hawaiian people are entitled 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, 
        languages, and social institutions.
            ``(3) The constitution and statutes of the State of Hawaii:
                    ``(A) acknowledge the distinct land rights of the 
                Native Hawaiian people as beneficiaries of the public 
                lands trust; and
                    ``(B) reaffirm and protect the unique right of the 
                Native Hawaiian people to practice and perpetuate their 
                cultural and religious customs, beliefs, practices, and 
                language.
            ``(4) At the time of the arrival of the first non-
        indigenous people in Hawaii in 1778, the Native Hawaiian people 
        lived in a highly organized, self-sufficient, subsistence 
        social system based on communal land tenure with a 
        sophisticated language, culture, and religion.
            ``(5) A unified monarchial government of the Hawaiian 
        Islands was established in 1810 under Kamehameha I, the first 
        King of Hawaii.
            ``(6) Throughout the 19th century and until 1893, the 
        United States: (a) recognized the independence of the Hawaiian 
        Nation; (b) extended full and complete diplomatic recognition 
        to the Hawaiian government; and (c) entered into treaties and 
        conventions with the Hawaiian monarchs to govern commerce and 
        navigation in 1826, 1842, 1849, 1875 and 1887.
            ``(7) In the year 1893, the United States Minister assigned 
        to the sovereign and independent Kingdom of Hawaii, John L. 
        Stevens, conspired with a small group of non-Hawaiian residents 
        of the Kingdom, including citizens of the United States, to 
        overthrow the indigenous and lawful Government of Hawaii.
            ``(8) In pursuance of that conspiracy, the United States 
        Minister and the naval representative of the United States 
        caused armed naval forces of the United States to invade the 
        sovereign Hawaiian Nation in support of the overthrow of the 
        indigenous and lawful Government of Hawaii and the United 
        States Minister thereupon extended diplomatic recognition of a 
        provisional government formed by the conspirators without the 
        consent of the native people of Hawaii or the lawful Government 
        of Hawaii in violation of treaties between the two nations and 
        of international law.
            ``(9) In a message to Congress on December 18, 1893, then 
        President Grover Cleveland reported fully and accurately on 
        these illegal actions, and acknowledged that by these acts, 
        described by the President as acts of war, the government of a 
        peaceful and friendly people was overthrown, and the President 
        concluded that a `substantial wrong has thus been done which a 
        due regard for our national character as well as the rights of 
        the injured people require that we should endeavor to repair.'
            ``(10) Queen Lili'uokalani, the lawful monarch of Hawaii, 
        and the Hawaiian Patriotic League, representing the aboriginal 
        citizens of Hawaii, promptly petitioned the United States for 
        redress of these wrongs and for restoration of the indigenous 
        government of the Hawaiian nation, but this petition was not 
        acted upon.
            ``(11) In 1898, the United States annexed Hawaii through 
        the Newlands Resolution, without the consent of or compensation 
        to the indigenous people of Hawaii or their sovereign 
        government, who were denied their land, ocean resources, and 
        the mechanism for expression of their inherent sovereignty 
        through self-government and self-determination.
            ``(12) Through the Newlands Resolution and the 1900 Organic 
        Act, the United States Congress received 1.75 million acres of 
        lands formerly owned by the Crown and Government of the 
        Hawaiian Kingdom and exempted the lands from then existing 
        public land laws of the United States by mandating that the 
        revenue and proceeds from these lands be `used solely for the 
        benefit of the inhabitants of the Hawaiian Islands for 
        education and other public purposes,' thereby establishing a 
        special trust relationship between the United States and the 
        indigenous native inhabitants of Hawaii.
            ``(13) Congress enacted the Hawaiian Homes Commission Act 
        of 1920 designating 200,000 acres of the ceded public lands for 
        exclusive homesteading by Native Hawaiians, affirming the trust 
        relationship between the United States and the Native 
        Hawaiians, as expressed by then Secretary of the Interior 
        Franklin K. Lane, who was cited in the Committee Report of the 
        United States House of Representatives Committee on Territories 
        as stating: `One thing that impressed me . . . was the fact 
        that the natives of these islands 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.'
            ``(14) In 1938, the United States Congress again 
        acknowledged the unique status of the Hawaiian people by 
        including in the Act of June 20, 1938 (52 Stat. 781 et seq.), a 
        provision to lease lands within the National Parks extension to 
        Native Hawaiians and to permit fishing in the area `only by 
        native Hawaiian residents of said area or of adjacent villages 
        and by visitors under their guidance.'
            ``(15) Under the Act entitled `An Act to provide for the 
        admission of the State of Hawaii into the Union' Approved March 
        18, 1959 (73 Stat. 4), the United States transferred 
        responsibility for the administration of the Hawaiian Home 
        Lands to the State of Hawaii but reaffirmed the trust 
        relationship which existed between the United States and the 
        Hawaiian people by retaining the exclusive power to enforce the 
        trust, including the power to approve land exchanges and 
        legislative amendments affecting the rights of beneficiaries 
        under such Act.
            ``(16) Under the Act entitled `An Act to provide for the 
        admission of the State of Hawaii into the Union', approved 
        March 18, 1959 (73 Stat. 4), the United States transferred 
        responsibility for administration over portions of the ceded 
        public lands trust not retained by the United States to the 
        State of Hawaii but reaffirmed the trust responsibility which 
        existed between the United States and the Hawaiian people by 
        retaining the legal responsibility to enforce the 
        administration of the public trust responsibility of the State 
        of Hawaii for the betterment of the conditions of Native 
        Hawaiians under section 5(f) of the Act entitled `An Act to 
        provide for the admission of the State of Hawaii into the 
        Union.'.
            ``(17) The authority of the Congress under the United 
        States Constitution to legislate in matters affecting the 
        aboriginal or indigenous peoples of the United States includes 
        the authority to legislate in matters affecting the native 
        peoples of Alaska and Hawaii.
            ``(18) In furtherance to the trust responsibility for the 
        betterment of the conditions of native Hawaiians, the United 
        States has established educational programs to benefit Native 
        Hawaiians and has acknowledged that special educational efforts 
        are required recognizing the unique cultural and historical 
        circumstances of Native Hawaiians.
            ``(19) This historical and legal relationship has been 
        consistently recognized and affirmed by the Congress through 
        the enactment of Federal laws which extend to the Hawaiian 
        people the same rights and privileges accorded to American 
        Indian, Alaska Native, Eskimo, and Aleut communities, including 
        the Native American Programs Act of 1974; the Native American 
        Programs Act of 1992, as amended; the National Historic Act 
        Amendments of 1992; the American Indian Religious Freedom Act; 
        the Native American Graves Protection and Repatriation Act.
            ``(20) The United States has also recognized and reaffirmed 
        the trust relationship to the Hawaiian people through 
        legislation which authorizes the provision of services to 
        Native Hawaiians, specifically, the Older Americans Act of 
        1965, the Developmental Disabilities Assistance and Bill of 
        Rights Act Amendments of 1987, the Veterans' Benefits and 
        Services Act of 1988, the Rehabilitation Act of 1973, the 
        Native Hawaiian Health Care Act of 1988, the Health Professions 
        Reauthorization Act of 1988, the Nursing Shortage Reduction and 
        Education Extension Act of 1988, the Handicapped Programs 
        Technical Amendments Act of 1988, the Indian Health Care 
        Amendments of 1988, and the Disadvantaged Minority Health 
        Improvements Act of 1990.
            ``(21) Despite the success of the programs established 
        under the Native Hawaiian Education Act of 1988, the education 
        needs of Native Hawaiians continue to be severe:
                    ``(A) Native Hawaiian students continue to score 
                below national norms on standardized education 
                achievement tests.
                    ``(B) Both public and private schools continue to 
                show a pattern of low percentages of Native Hawaiian 
                students in the uppermost achievement levels and in 
                gifted and talented programs.
                    ``(C) Native Hawaiian students continue to be 
                overrepresented among those qualifying for special 
                education programs provided to learning disabled, 
                educable mentally retarded, handicapped, and other such 
                students.
                    ``(D) Native Hawaiians continue to be 
                disproportionately represented in many negative social 
                and physical statistics, indicative of special 
                educational needs--
                            ``(i) lower educational attainment among 
                        Native Hawaiians has been found to relate to 
                        lower socioeconomic outcomes;
                            ``(ii) Native Hawaiian students continue to 
                        be disproportionately underrepresented in 
                        Institutions of Higher Education;
                            ``(iii) Native Hawaiians continue to be 
                        underrepresented in traditional white collar 
                        professions, health care professions, and the 
                        newly emerging technology based professions and 
                        are overrepresented in service occupations;
                            ``(iv) Native Hawaiian children continue to 
                        be disproportionately victimized by child abuse 
                        and neglect, a signal of family stress; and
                            ``(v) there are and will continue to be 
                        geographically rural, isolated areas with a 
                        high Native Hawaiian population density.
            ``(22) Special efforts in education recognizing the unique 
        cultural and historical circumstances of Native Hawaiians are 
        required.

``SEC. 3803. PURPOSE.

    ``It is the purpose of this part to--
            ``(1) authorize and develop supplemental educational 
        programs to assist Native Hawaiians in reaching the National 
        Education Goals;
            ``(2) provide direction and guidance to appropriate 
        Federal, State, and local agencies to focus resources, 
        including those made available by the title on the problem of 
        Native Hawaiian Education;
            ``(3) supplement and expand existing programs and 
        authorities in the area of education to further the purposes of 
        the title; and
            ``(4) encourage the maximum participation of Native 
        Hawaiians in planning and management of Native Hawaiian 
        Education Programs.

``SEC. 3804. NATIVE HAWAIIAN EDUCATION COUNCIL.

    ``(a) Establishment.--In order to better effectuate the purposes of 
this part through assistance in the coordination of services and 
programs provided for under this part, the Secretary shall establish a 
Native Hawaiian Education Council.
    ``(b) Composition.--Such Council shall consist of, but not be 
limited to:
            ``(1) representatives of each of the programs which receive 
        Federal funding under this part;
            ``(2) a representative from the Office of the Governor;
            ``(3) a representative from the Office of Hawaiian Affairs;
            ``(4) representatives of other Native Hawaiian Educational 
        organizations and Native Hawaiian organizations which receive 
        Federal or state education funds; and
            ``(5) parent, student, educator and community 
        organizations.
    ``(c) Conditions and Terms.--All members of the Council shall be 
residents of the State of Hawaii, and at least half of the members 
shall be Native Hawaiian. Members of the Council shall be appointed for 
five year terms.
    ``(d) Duties and Responsibilities.--(1) The Council shall provide 
direction and guidance to appropriate Federal, State, and local 
agencies to focus resources, including those made available by this 
title on Native Hawaiian Education.
    ``(2) The Council is authorized to make available to Congress any 
information, advice, and recommendations that the Council is authorized 
to give to the Secretary.
    ``(3) The Secretary shall, whenever practicable, consult with the 
Council before taking any significant action related to the education 
of Native Hawaiians. Any advice or recommendation made by the Council 
to the Secretary shall reflect the independent judgment of the Council 
on the matter concerned.
    ``(e) Administrative Provisions.--The Council shall meet at the 
call of the Chair, or upon the request of the majority of the Council, 
but in any event not less than twice during each calendar year. All 
matters relating to, or proceedings of, the Council need not comply 
with the Federal Advisory Committee Act.
    ``(f) Compensation.--A member of the Native Hawaiian Council shall 
not receive any compensation for service on the Council.
    ``(g) Annual Report.--The Council shall present to the Secretary an 
annual report on its activities.
    ``(h) Report to Congress.--Not later than 4 years after the date of 
the enactment of the Improving America's Schools Act, the Secretary 
shall prepare and submit to the Senate Committee on Indian Affairs and 
the House Committee on Education and Labor, a report which summarizes 
the annual reports of the Native Hawaiian Council, describes the 
allocation and utilization of monies under this part, and contains 
recommendations for changes in Federal, State, and local policy to 
advance the purposes of this part.

``SEC. 3805. NATIVE HAWAIIAN LANGUAGE IMMERSION PROJECT.

    ``(a) Native Hawaiian Language Immersion Authority.--In order to 
continue the state-wide effort at revitalizing the Native Hawaiian 
Language through the Punana Leo Project and the State of Hawaii's 
immersion project, the Secretary shall make direct grants to--
            ``(1) Aha Punana Leo for the continued maintenance of the 
        Punana Leo Project, a family-based Hawaiian Immersion pre-
        school program;
            ``(2) the State of Hawaii for education support services 
        for the State of Hawaii's Hawaiian Immersion Program; and
            ``(3) the State of Hawaii to establish a center for Native 
        Hawaiian curriculum development and teacher training.
    ``(b) Administrative Costs.--No more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated $1,500,000 for fiscal year 1995 and such sums as may be 
necessary for fiscal years 1996 through 1999. Such funds shall remain 
available until expended.

``SEC. 3806. NATIVE HAWAIIAN FAMILY-BASED EDUCATION CENTERS.

    ``(a) General Authority.--The Secretary shall make direct grants to 
Native Hawaiian Organizations (including Native Hawaiian Educational 
Organizations) to develop and operate a minimum of eleven Family-Based 
Education Centers throughout the Hawaiian Islands. Such centers shall 
include--
            ``(1) Parent-Infant programs (prenatal through age 3);
            ``(2) Preschool programs for four and five year-olds;
            ``(3) continued research and development; and
            ``(4) long term followup and assessment program.
    ``(b) Administrative Costs.--No more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--In addition to any other 
amount authorized for the centers described in subsection (a), there is 
authorized to be appropriated $6,000,000 for fiscal year 1995 and such 
sums as may be necessary for fiscal years 1996 through 1999. Such funds 
shall remain available until expended.

``SEC. 3807. NATIVE HAWAIIAN HIGHER EDUCATION DEMONSTRATION PROGRAM.

    ``(a) Higher Education General Authority.--The Secretary shall make 
grants to the Kamehameha Schools/Bernice Pauahi Bishop Estate for a 
demonstration program to provide Higher Education fellowship assistance 
to Native Hawaiian students. The demonstration program under this 
program may include--
            ``(1) full or partial fellowship support for Native 
        Hawaiian students enrolled at an accredited two or four year 
        degree granting institution of higher education with awards to 
        be based on academic potential and financial need;
            ``(2) counseling and support services for such students 
        receiving fellowship assistance pursuant to subsection (a)(1) 
        of this section;
            ``(3) college preparation and guidance counseling at the 
        secondary school level for students who may be eligible for 
        fellowship assistance pursuant to subsection (a)(1) of this 
        section;
            ``(4) appropriate research and evaluation of the activities 
        authorized by this section; and
            ``(5) implementation of faculty development programs for 
        the improvement and matriculation of Native Hawaiian students.
    ``(b) Grants Authorized.--The Secretary shall make grants to 
Kamehameha Schools/Bernice Pauahi Bishop Estate for a demonstration 
project of fellowship assistance for Native Hawaiian students in post-
bachelor degree programs. Such project may include--
            ``(1) full or partial fellowship support for Native 
        Hawaiian students enrolled at an accredited post-bachelor 
        degree granting institution of higher education, with priority 
        given to professions in which Native Hawaiians are under-
        represented and with awards to be based on academic potential 
        and financial need;
            ``(2) counseling and support services for such students 
        receiving fellowship assistance pursuant to subsection (b)(1) 
        of this section; and
            ``(3) appropriate research and evaluation of the activities 
        authorized by this section.
    ``(c) Special Condition Required.--For the purpose of subsection 
(b) fellowship conditions shall be established whereby recipients 
obtain an enforceable contract obligation to provide their professional 
services, either during their fellowship or upon completion of post-
bachelor degree program, to the Native Hawaiian community within the 
State of Hawaii.
    ``(d) Special Rule.--No policy shall be made in implementing this 
Section to prevent a Native Hawaiian student enrolled at an accredited 
two or four year degree granting institution of higher education 
outside of the State of Hawaii from receiving a fellowship pursuant to 
paragraphs (a) and (b) of this section.
    ``(e) Administrative Costs.--No more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(f) Authorization of Appropriations.--
            ``(1) There are authorized to be appropriated $2,000,000 
        for fiscal year 1995 and such sums as may be necessary for 
        fiscal years 1996 through 1999 for the purpose of funding the 
        fellowship assistance demonstration project under subsection 
        (a).
            ``(2) There are authorized to be appropriated $1,500,000 
        for fiscal year 1995 and such sums as may be necessary for 
        fiscal years 1996 through 1999 for the purpose of funding the 
        fellowship assistance demonstration project provided under 
        subsection (b).
            ``(3) Funds appropriated under the authority of this 
        subsection shall remain available until expended.

``SEC. 3808. NATIVE HAWAIIAN GIFTED AND TALENTED DEMONSTRATION PROGRAM.

    ``(a) Gifted and Talented Demonstration Authority.--
            ``(1) The Secretary shall provide a grant to, or enter into 
        a contract with, the University of Hawaii at Hilo for--
                    ``(A) the establishment of a Native Hawaiian Gifted 
                and Talented Center at the University of Hawaii at 
                Hilo, and
                    ``(B) for demonstration projects designed to--
                            (i) address the special needs of Native 
                        Hawaiian elementary and secondary school 
                        students who are gifted and talented students, 
                        and
                            (ii) provide those support services to 
                        their families that are needed to enable such 
                        students to benefit from the project.
Such grant or contract shall be subject to the availability of 
appropriated funds and, contingent on satisfactory performance by the 
grantee, shall be provided for a term of 3 years.
            ``(2) After the term of the grant or contract provided, or 
        entered into, under paragraph (1) has expired, the Secretary 
        shall, for the purposes described in subparagraphs (A) and (B) 
        of paragraph (1), provide a grant to, or enter into a contract 
        with, the public, 4-year, fully accredited institution of 
        higher education located in the State of Hawaii which has made 
        the greatest contribution to Native Hawaiian students. Such 
        grant or contract shall be provided on an annual basis. The 
        grantees shall be authorized to subcontract when appropriate, 
        including with the Children's Television Workshop.
    ``(b) Uses of Funds.--Demonstration projects funded under this 
section may include--
            ``(1) the identification of the special needs of gifted and 
        talented students, particularly at the elementary school level, 
        with attention to--
                    ``(A) the emotional and psychosocial needs of these 
                students, and
                    ``(B) the provision of those support services to 
                their families that are needed to enable these students 
                to benefit from the projects;
            ``(2) the conduct of educational, psychosocial, and 
        developmental activities which hold reasonable promise of 
        resulting in substantial progress toward meeting the 
        educational needs of such gifted and talented children, 
        including, but not limited to, demonstrating and exploring the 
        use of the Native Hawaiian language and exposure to Native 
        Hawaiian cultural traditions;
            ``(3) the use of public television in meeting the special 
        educational needs of such gifted and talented children;
            ``(4) leadership programs designed to replicate programs 
        for such children throughout the State of Hawaii and to other 
        Native American peoples, including the dissemination of 
        information derived from demonstration projects conducted under 
        this section; and
            ``(5) appropriate research, evaluation, and related 
        activities pertaining to--
                    ``(A) the needs of such children, and
                    ``(B) the provision of those support services to 
                their families that are needed to enable such children 
                to benefit from the projects.
    ``(c) Information Provision.--The Secretary shall facilitate the 
establishment of a national network of Native Hawaiian and American 
Indian Gifted and Talented Centers, and ensure that the information 
developed by these centers shall be readily available to the 
educational community at large.
    ``(d) Administrative Costs.--No more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(e) Authorization of Appropriations.--In addition to any other 
amount authorized for projects described in this section there are 
authorized to be appropriated $2,000,000 for fiscal year 1995 and such 
sums as may be necessary for fiscal years 1996 through 1999. Such funds 
shall remain available until expended.

``SEC. 3809. NATIVE HAWAIIAN SPECIAL EDUCATION PROGRAM.

    ``(a) Special Education Authority.--The Secretary shall make grants 
to, and enter into contracts with, Pihana Na Mamo, to operate projects 
to address the special education needs of Native Hawaiian students. 
Such projects assisted under this section may include--
            ``(1) the identification of Native Hawaiian children who 
        are learning disabled, mentally or physically handicapped, 
        educable mentally retarded, or otherwise in need of special 
        educational services;
            ``(2) the identification of special education needs of such 
        children, particularly at the elementary school level, with 
        attention to--
                    ``(A) the emotional and psychosocial needs of these 
                students, and
                    ``(B) the provision of those support services to 
                their families that are needed to enable such children 
                to benefit from the projects.
    ``(b) Administrative Costs.--No more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(c) Matching Funds.--(1) The Secretary may not make a grant or 
provide funds pursuant to a contract under this subsection--
            ``(A) in an amount exceeding 83.3 percent of the costs of 
        providing health services under the grant or contract; and
            ``(B) unless Pihana Na Mamo agrees that the State of 
        Hawaii, the Office of Hawaiian Affairs, or any other non-
        Federal entity will make available, directly or through 
        donations to the Native Hawaiian Special Education Project, 
        non-Federal contributions toward such costs in an amount equal 
        to not less than $1 (in cash or in kind under paragraph (2)) 
        for each $5 of Federal funds provided in such grant or 
        contract.
    ``(2) Non-Federal contributions required in paragraph (1) may be in 
cash or in kind, fairly evaluated, including plant, equipment, or 
services. Amounts provided by the Federal Government or services 
assisted or subsidized to any significant extent by the Federal 
Government may not be included in determining the amount of non-Federal 
contributions.
    ``(d) Authorization of Appropriations.--In addition to any other 
amount authorized for such project, there is authorized to be 
appropriated $2,000,000 for fiscal year 1995 and such sums as may be 
necessary for fiscal years 1996 through 1999. Such funds shall remain 
available until expended.

``SEC. 3810. ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this part, 
nor any contract be entered into under this part, unless an application 
is submitted to the Secretary in such form, in such manner, and 
containing such information as the Secretary may determine necessary to 
carry out the provisions of this title.
    ``(b) Special Rule.--Each application submitted under this title 
shall be accompanied by the comments of each local educational agency 
serving students who will participate in the project for which 
assistance is sought.

``SEC. 3811. DEFINITIONS.

    ``For the purposes of this part--
            ``(1) The term `Native Hawaiian' means any individual who 
        is--
                    ``(A) a citizen of the United States,
                    ``(B) a resident of the State of Hawaii, and
                    ``(C) a descendant of the aboriginal people, who 
                prior to 1778, occupied and exercised sovereignty in 
                the area that now comprises the State of Hawaii, as 
                evidenced by--
                            ``(i) genealogical records,
                            ``(ii) Kupuna (elders) or Kama'aina (long-
                        term community residents) verification, or
                            ``(iii) birth records of the State of 
                        Hawaii.
            ``(2) The term `Secretary' means the Secretary of 
        Education.
            ``(3) 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 
                policy-making positions within the organizations,
                    ``(C) has a demonstrated expertise in the education 
                of Native Hawaiian youth, and
                    ``(D) has demonstrated expertise in research and 
                program development.
            ``(4) 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 
                policy-making positions within the organizations, and
                    ``(C) is recognized by the Governor of Hawaii for 
                the purpose of planning, conducting, or administering 
                programs (or portions of programs) for the benefit of 
                Native Hawaiians.
            ``(5) The term `elementary school' has the same meaning 
        given that term under section 9101 of this Act.
            ``(6) The term `local educational agency' has the same 
        meaning given that term under section 9101 of this Act.
            ``(7) The term `secondary school' has the same meaning 
        given that term under section 9101 of this Act.

             ``PART H--ALLEN J. ELLENDER FELLOWSHIP PROGRAM

``SEC. 3901. FINDINGS.

    ``The Congress makes the following findings:
            ``(1) It is a worthwhile goal to ensure that all students 
        in America are prepared for responsible citizenship and that 
        all students should have the opportunity to be involved in 
        activities that promote and demonstrate good citizenship.
            ``(2) It is a worthwhile goal to ensure that America's 
        educators have access to programs for the continued improvement 
        of their professional skills.
            ``(3) Allen J. Ellender, a Senator from Louisiana and 
        President pro tempore of the United States Senate, had a 
        distinguished career in public service characterized by 
        extraordinary energy and real concern for young people. Senator 
        Ellender provided valuable support and encouragement to the 
        Close Up Foundation, a nonpartisan, nonprofit foundation 
        promoting knowledge and understanding of the Federal Government 
        among young people and educators. Therefore, it is a fitting 
        and appropriate tribute to Senator Ellender to provide 
        fellowships in his name to students of limited economic means, 
        the teachers who work with them and older Americans so that 
        they may participate in the programs supported by the Close Up 
        Foundation.

     ``Subpart 1--Program for Middle and Secondary School Students

``SEC. 3911. ESTABLISHMENT.

    ``(a) General Authority.--The Secretary is authorized to make 
grants in accordance with the provisions of this title to the Close Up 
Foundation of Washington, District of Columbia, a nonpartisan, 
nonprofit foundation, for the purpose of assisting the Close Up 
Foundation in carrying out its programs of increasing understanding of 
the Federal Government among middle and secondary school students.
    ``(b) Use of Funds.--Grants under this title shall be used only for 
financial assistance to economically disadvantaged students who 
participate in the program described in subsection (a) of this section. 
Financial assistance received pursuant to this title by such students 
shall be known as Allen J. Ellender fellowships.

``SEC. 3912. APPLICATIONS.

    ``(a) Application Required.--No grant under this title may be made 
except upon an application at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Each such application shall contain 
provisions to assure--
            ``(1) that fellowship grants are made to economically 
        disadvantaged middle and secondary school students;
            ``(2) that every effort will be made to ensure the 
        participation of students from rural and small town areas, as 
        well as from urban areas, and that in awarding fellowships to 
        economically disadvantaged students, special consideration will 
        be given to the participation of students with special 
        educational needs, including physically challenged students, 
        visually- and hearing-impaired students, ethnic minority 
        students, and gifted and talented students; and
            ``(3) the proper disbursement of the funds of the United 
        States received under this title.

     ``Subpart 2--Program for Middle and Secondary School Teachers

``SEC. 3915. ESTABLISHMENT.

    ``(a) General Authority.--The Secretary is authorized to make 
grants in accordance with the provisions of this title to the Close Up 
Foundation of Washington, District of Columbia, a nonpartisan, 
nonprofit foundation, for the purpose of assisting the Close Up 
Foundation in carrying out its programs of teaching skills enhancement 
for middle and secondary school teachers.
    ``(b) Use of Funds.--Grants under this title shall be used only for 
financial assistance to teachers who participate in the program 
described in subsection (a) of this section. Financial assistance 
received pursuant to this title by such individuals shall be known as 
Allen J. Ellender fellowships.

``SEC. 3916. APPLICATIONS.

    ``(a) Application Required.--No grant under this subpart may be 
made except upon an application at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Each such application shall contain 
provisions to assure--
            ``(1) that fellowship grants are made only to teachers who 
        have worked with at least one student from his or her school 
        who participates in the programs described in section 101(a);
            ``(2) that not more than one teacher in each school 
        participating in the programs provided for in section 101(a) 
        may receive a fellowship in any fiscal year; and
            ``(3) the proper disbursement of the funds of the United 
        States received under this title.

   ``Subpart 3--Programs for Recent Immigrants, Students of Migrant 
                      Parents and Older Americans

``SEC. 3921. ESTABLISHMENT.

    ``(a) General Authority.--(1) The Secretary is authorized to make 
grants in accordance with the provisions of this title to the Close Up 
Foundation of Washington, District of Columbia, a nonpartisan, 
nonprofit foundation, for the purpose of assisting the Close Up 
Foundation in carrying out its programs of increasing understanding of 
the Federal Government among economically disadvantaged older 
Americans, recent immigrants and students of migrant parents.
    ``(2) For the purpose of this subpart, the term `older American' 
means an individual who has attained 55 years of age.
    ``(b) Use of Funds.--Grants under this subpart shall be used only 
for financial assistance to economically disadvantaged older Americans, 
recent immigrants and students of migrant parents who participate in 
the program described in subsection (a) of this section. Financial 
assistance received pursuant to this subpart by such individuals shall 
be known as Allen J. Ellender fellowships.

``SEC. 3922. APPLICATIONS.

    ``(a) Application Required.--No grant under this subpart may be 
made except upon application at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Each such application shall contain 
provisions to assure--
            ``(1) that fellowship grants are made to economically 
        disadvantaged older Americans, recent immigrants and students 
        of migrant parents;
            ``(2) that every effort will be made to ensure the 
        participation of older Americans, recent immigrants and 
        students of migrant parents from rural and small town areas, as 
        well as from urban areas, and that in awarding fellowships, 
        special consideration will be given to the participation of 
        older Americans, recent immigrants and students of migrant 
        parents with special needs, including physically challenged 
        individuals, visually- and hearing-impaired individuals, ethnic 
        minorities, and gifted and talented students;
            ``(3) that activities permitted by section 301(a) are fully 
        described; and
            ``(4) the proper disbursement of the funds of the United 
        States received under this title.

                    ``Subpart 4--General Provisions

``SEC. 3925. ADMINISTRATIVE PROVISIONS.

    ``(a) General Rule.--Payments under this part may be made in 
installments, in advance, or by way of reimbursement, with necessary 
adjustments on account of underpayment or overpayment.
    ``(b) Audit Rule.--The Comptroller General of the United States or 
any of the Comptroller General's duly authorized representatives shall 
have access for the purpose of audit and examination to any books, 
documents, papers, and records that are pertinent to any grant under 
this part.

``SEC. 3926. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) There are authorized to be appropriated to carry out the 
provisions of subparts 1, 2, and 3 of this part $4,400,000 for fiscal 
year 1995 and such sums as may be necessary for each of the fiscal 
years 1996, 1997, 1998, and 1999.
    ``(b) Of the funds appropriated pursuant to subsection (a), not 
more than 30 percent may be used for teachers associated with students 
participating in the programs described in section 3911(a).

          ``PART I--TERRITORIAL EDUCATION IMPROVEMENT PROGRAM

``SEC. 3931. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds that--
            ``(1) the attainment of a high quality education is 
        important to a society and to each individual;
            ``(2) it is the policy of the United States that all 
        citizens have a fair opportunity to receive a high quality 
        education;
            ``(3) such opportunity should extend to United States 
        citizens and nationals residing in the outlying areas;
            ``(4) reports show that the outlying areas have repeatedly 
        placed last in national education tests which measure knowledge 
        in core subject areas;
            ``(5) all students must realize their potential if the 
        United States is to prosper; and
            ``(6) students in the outlying areas require additional 
        assistance if they are to obtain the high standards established 
        for all students in the United States.
    ``(b) Purposes.--The purpose of this part is to authorize an 
education improvement program for the United States Virgin Islands, 
Guam, American Samoa, the Northern Mariana Islands, and Palau which 
will assist in developing programs which will enhance student learning, 
increase the standard of education, and improve the performance levels 
of all students.

``SEC. 3932. GRANT AUTHORIZATION.

    ``The Secretary is authorized to make grants to the Virgin Islands, 
Guam, American Samoa, the Northern Mariana Islands and Palau, until the 
effective date of the Compact of Free Association with the Government 
of Palau, to fund innovative education improvement programs which will 
increase student learning.

``SEC. 3933. RESTRICTIONS.

    ``(a) Construction.--No funds from a grant under section 3922 may 
be used for construction.
    ``(b) Full Use.--If funds authorized under section 3922 are not 
fully committed within the period of the grant, the grant for the next 
period shall be reduced by the amount of funds not fully committed.

``SEC. 3934. AUTHORIZATION.

    ``There are authorized to be appropriated for grants under section 
3922 $5,000,000 for each of the fiscal years 1994 through 1999.

         ``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) National Education Goal Six provides that by the year 
        2000, all schools in America will be free of drugs and violence 
        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 their 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 three million 
        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. Approximately one of every five high school 
        students now carries a firearm, knife, or club on a regular 
        basis.
            ``(4) The tragic consequences of violence and the illegal 
        use of alcohol and drugs by students are felt not only by 
        students and their families, but by their communities and the 
        Nation, which can ill afford to lose their skills, talents, and 
        vitality.
            ``(5) 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.
            ``(6) Every day approximately 3,000 children start smoking 
        for the first time and 30 percent of all high school seniors 
        are smokers. Half of all new smokers begin before the age of 
        14, 90 percent before the age of 21, and the average age of the 
        first use of smokeless tobacco products is under the age of 10. 
        Use of tobacco products has been linked to serious health 
        problems. However, because the nicotine in tobacco is an 
        addictive substance, many tobacco users find it difficult to 
        stop using tobacco once they have started. Drug education and 
        prevention programs that include tobacco have been effective in 
        reducing teenage use of tobacco. Drug prevention programs for 
        youth that address only controlled drugs send an erroneous 
        message that the use of tobacco does not have adverse 
        consequences. To be credible, messages opposing illegal drug 
        use by youth should also address other harmful substances.
            ``(7) 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.
            ``(8) Students must take greater responsibility for their 
        own well-being, health, and safety if schools and communities 
        are to achieve their 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 Goal Six 
of the National Educational Goals by preventing violence in and around 
schools and by strengthening programs that prevent the illegal use of 
alcohol 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 and intermediate 
        educational agencies and consortia 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 local and intermediate 
        educational agencies and consortia for grants to, and contracts 
        with, community-based organizations and other public and 
        private non-profit 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 non-profit 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 for the development 
        and implementation of model programs and strategies to promote 
        the safety of students attending institutions of higher 
        education by preventing violent behavior and the illegal use of 
        alcohol and drugs by such students.

``SEC. 4004. FUNDING.

    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated--
            ``(1) for State grants under part A, $630,000,000 for 
        fiscal year 1995 and such sums as may be necessary for each of 
        fiscal years 1996 through 1999; and
            ``(2) for national programs under part B, $25,000,000 for 
        fiscal year 1995 and such sums as may be necessary for each of 
        fiscal years 1996 through 1999.
    ``(b) Availability.--(1) Appropriations for any fiscal year for 
payments made under this title in accordance with regulations of the 
Secretary may be made available for obligation or expenditure by the 
agency or institution concerned on the basis of an academic or school 
year differing from such fiscal year.
    ``(2) Funds appropriated for any fiscal year under this title shall 
remain available for obligation and expenditure until the end of the 
fiscal year succeeding the fiscal year for which such funds were 
appropriated.

    ``PART A--STATE GRANTS FOR DRUG AND VIOLENCE PREVENTION PROGRAMS

``SEC. 4101. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--From the amount appropriated for each fiscal 
year under section 4004(a)(1), the Secretary--
            ``(1) shall reserve 1 percent of such amount for grants 
        under this part to Guam, American Samoa, the Virgin Islands, 
        the Commonwealth of the Northern Mariana Islands, and Palau 
        (until the effective date of the Compact of Free Association 
        with the Government of Palau), to be allotted in accordance 
        with 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) shall reserve 0.2 percent for programs for Native 
        Hawaiians under section 4202; and
            ``(4) may reserve no more than $1,000,000 for the national 
        impact evaluation required by section 4106(a).
    ``(b) State Allotments.--(1) Except as provided under 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 1124 and 
        1124A of this Act for the preceding year (or, for fiscal year 
        1995 only, sections 1005 and 1006 of this Act as in effect on 
        the day before enactment of the Safe and Drug-Free Schools and 
        Communities Act Amendments of 1994) and the sum of such amounts 
        received by all the States.
    ``(2) 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) The Secretary may reallot any amount of any allotment to a 
State if the Secretary determines that the State will be unable to use 
such amount within two years of such allotment. Such reallotments shall 
be made on the same basis as allotments made under paragraph (1).
    ``(4) For the purpose of this subsection, the term `State' means 
each of the 50 States, the District of Columbia, and the Commonwealth 
of Puerto Rico.

``SEC. 4102. STATE APPLICATIONS.

    ``(a) In General.--In order to receive its allotment under section 
4101 for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
            ``(1)(A)(i) is integrated into the State's plan, either 
        approved or being developed, under title III of the Goals 2000: 
        Educate America Act, and satisfies the requirements of this 
        section that are not already addressed by that plan; and
            ``(ii) is submitted, if necessary, as an amendment to the 
        State's plan under title III of the Goals 2000: Educate America 
        Act; or
            ``(B) if the State does not have an approved plan under 
        title III of the Goals 2000: Educate America Act and is not 
        developing such a plan, is integrated with other State plans 
        under this Act and satisfies the requirements of this section;
            ``(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) has been developed in consultation with 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 child welfare agency, and the 
        heads of the State criminal and juvenile justice planning 
        agencies;
            ``(4) contains a description of the procedures the State 
        educational agency will use to review applications from local 
        educational agencies under section 4104;
            ``(5) contains an assurance that the State will cooperate 
        with, and assist, the Secretary in conducting a national impact 
        evaluation of programs required by section 4106(a); and
            ``(6) 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 4103(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 it 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 4105;
            ``(3) a description of how the State educational agency 
        will use funds it reserves under section 4103(b);
            ``(4) a description of how the State educational agency 
        will coordinate its activities under this part with drug and 
        violence prevention efforts of other State agencies; and
            ``(5) an explanation of the criteria the State educational 
        agency will use to identify which local educational agencies 
        receive supplemental funds under section 4103(d)(2)(A)(i)(II) 
        and how the supplemental funds will be allocated among those 
        local educational agencies.
    ``(c) Governor's Funds.--A State's application under this section 
shall also contain a comprehensive plan for the use of funds under 
section 4103A 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 those 
        goals and objectives;
            ``(2) a description of how the chief executive officer will 
        coordinate his or her 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 
        4103A 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 4103A and a plan for monitoring the 
        performance of, and providing technical assistance to, 
        recipients of such funds; and
            ``(5) 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 part 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 its application and 
comprehensive plan otherwise required by this section. A State may not 
receive a grant under this part for a fiscal year subsequent to fiscal 
year 1995 unless the Secretary has approved its application and 
comprehensive plan.

``SEC. 4103. STATE AND LOCAL EDUCATIONAL AGENCY PROGRAMS.

    ``(a) Use of Funds.--(1) Except as provided in paragraph (2), an 
amount equal to 80 percent of the total amount allocated to a State 
under section 4101 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)(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 the Elementary and Secondary 
Education Act of 1965 (as such section was in effect on the day before 
the date of the enactment of the Improving America's Schools Act of 
1994), then--
            ``(i) an amount equal to 70 percent of the total amount 
        allocated to such State under section 4101 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 30 percent of such total amount 
        shall be used by such independent State agency for drug and 
        violence prevention activities in accordance with section 5122 
        of the Elementary and Secondary Education Act of 1965 (as such 
        section was in effect on the day before the date of the 
        enactment of the Improving America's Schools Act of 1994).
    ``(B) Not more than 2.5 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) A State educational agency shall 
use no more than five percent of the amount reserved under subsection 
(a) for activities such as--
            ``(A) training and technical assistance concerning drug and 
        violence prevention for local and intermediate educational 
        agencies, including teachers, administrators, counselors, 
        coaches and athletic directors, other educational personnel, 
        parents, students, community leaders, health service providers, 
        local law enforcement officials, and judicial officials;
            ``(B) the development, identification, dissemination and 
        evaluation of the most readily available, accurate, and up-to-
        date curriculum materials (including videotapes, software, and 
        other technology-based learning resources), for consideration 
        by local educational agencies;
            ``(C) demonstration projects in drug and violence 
        prevention;
            ``(D) 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 part; and
            ``(E) the evaluation of activities carried out within the 
        State under this part.
    ``(2) 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 no 
more than four 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) A State educational 
agency shall distribute not less than 92 percent of the amount reserved 
under subsection (a) for each fiscal year to local educational agencies 
in accordance with this subsection.
    ``(2)(A)(i) Of the amount distributed under subsection (d)(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 non-profit schools within their boundaries; 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 part.
    ``(ii) To the extent practicable, not less than 25 percent of the 
amount specified in clause (i)(II) for a fiscal year shall be 
distributed to local educational agencies located in rural areas.
    ``(B)(i) A State educational agency shall distribute funds under 
subparagraph (A)(i)(II) to no more than ten percent of its local 
educational agencies, 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 such factors as--
            ``(I) high rates of alcohol or other 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 rates of referrals of youths to drug and alcohol 
        abuse treatment and rehabilitation programs;
            ``(VI) high rates of referrals of youths to juvenile court;
            ``(VII) high rates of expulsions and suspensions of 
        students from schools; and
            ``(VIII) 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 it under subsection 
(d), or if its application under section 4104 is disapproved by the 
State educational agency, the State educational agency shall reallocate 
such amount to one or more of the local education agencies determined 
by the State educational agency under subsection (d)(2)(B) to have the 
greatest need for additional funds.
    ``(f) Return of Funds to State Educational Agency; Reallocation.--
(1) Except as provided in paragraph (2), upon the expiration of the 1-
year period beginning on the date that a local educational agency, 
intermediate educational agency, or consortium under this title 
receives its allocation under this title--
            ``(A) such agency or consortium 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, intermediate 
        educational agencies, or consortia that have plans for using 
        such amount for programs or activities on a timely basis.
    ``(2) In any fiscal year, a local educational agency, intermediate 
educational agency, or consortium 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. 4103A. GOVERNOR'S PROGRAMS.

    ``(a) Use of Funds.--(1) An amount equal to 20 percent of the total 
amount allocated to a State under section 4101 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) 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 drug abuse resistance education programs in 
accordance with subsection (e).
    ``(3) A chief executive officer may use no more than five percent 
of the 20 percent of the total amount described in paragraph (1) for 
the administrative costs in curred in carrying out the duties of such 
officer under this section.
    ``(b) Advisory Panel.--
            ``(1) Establishment.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a chief executive officer shall 
                establish an advisory panel in accordance with this 
                subsection for the purpose of developing a plan for the 
                use of funds reserved under subsection (a)(1).
                    ``(B) Exception.--The chief executive officer of a 
                State shall be exempt from the requirement under 
                subparagraph (A) if such State, on or before January 1, 
                1994, has established an independent agency as 
                described in section 4103(a)(2)(A).
            ``(2) Plan.--The advisory panel established under paragraph 
        (1) shall develop a plan under which--
                    ``(A) existing drug and violence prevention 
                programs, projects, and activities in the State 
                (including activities of the State educational agency 
                and local educational agencies and community-based 
                organizations) that are determined by the panel to be 
                successful are continued, or, where appropriate, 
                coordinated with new programs, projects, and activities 
                established and carried out with funds reserved under 
                subsection (a)(1); and
                    ``(B) technical assistance and training is provided 
                to local educational agencies, consortia of such 
                agencies, and partnerships consisting of such agencies 
                and community-based organizations, for drug and 
                violence prevention, community outreach, and 
                mobilization and coordination of alcohol, tobacco, and 
                other drug prevention programming.
            ``(3) Meetings.--The advisory panel shall meet at least 
        once every 2 years after the establishment of the plan 
        described in paragraph (2) for the purpose of reviewing and 
        evaluating the use of funds under this section.
            ``(4) Membership.--
                    ``(A) In general.--The advisory panel shall consist 
                of not less than 9 members, but not more than 12 
                members, including the chief executive officer of the 
                State (or the designee of such chief executive officer) 
                and at least 1 individual appointed by such chief 
                executive officer from each of the following 
                categories:
                            ``(i) Parents.
                            ``(ii) Students.
                            ``(iii) Chief state school officers (or 
                        their designees).
                            ``(iv) School administrators or teachers.
                            ``(v) Substance abuse prevention workers or 
                        administrators.
                            ``(vi) Community-based providers.
                            ``(vii) Law enforcement officers or 
                        district attorneys.
                            ``(viii) Mayors, city councilpersons, or 
                        county commissioners.
                    ``(B) Political affiliation.--Not more than \1/2\ 
                of the members of the advisory panel may be of the same 
                political party.
                    ``(C) Compensation.--Members of the advisory panel 
                shall serve without pay.
            ``(5) Administrative expenses.--The administrative expenses 
        of the advisory panel shall be paid for from the State 
        administrative funds under subsection (a)(2).
    ``(c) Programs Authorized.--(1) A chief executive officer shall use 
funds reserved 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. Such grants or contracts shall support programs and 
activities described in subsection (d) for children and youth who are 
not normally served by State or local educational agencies, for 
populations that need special services or additional resources (such as 
preschoolers, youth in juvenile detention facilities, runaway or 
homeless children and youth, and dropouts), or both.
    ``(2) 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 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, 
        education, early intervention, counseling, 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, law enforcement, 
        health, mental health, and other appropriate services;
            ``(4) planning and implementing drug and violence 
        prevention activities that coordinate the efforts of State 
        agencies with those of the State educational agency and its 
        local educational agencies;
            ``(5) activities to protect students traveling to and from 
        school;
            ``(6) developing and implementing strategies to prevent 
        illegal gang activity;
            ``(7) coordinating and conducting community-wide violence 
        and safety assessments and surveys; and
            ``(8) evaluating programs and activities under this 
        section.
    ``(e) Drug Abuse Resistance Education Programs.--(1) A chief 
executive officer shall use funds reserved under subsection (a)(2) for 
grants to local educational agencies in consortium with entities which 
have experience in assisting school districts to provide instruction to 
students grades kindergarten through 6 to recognize and resist 
pressures that influence such students to use controlled substances, as 
defined in Schedules I and II of section 202 of the Controlled 
Substances Act the possession or distribution of which is unlawful 
under such Act, or beverage alcohol, such as Project Drug Abuse 
Resistance Education, that meet the requirements of paragraph (2).
    ``(2) A local educational agency in consortium with an entity shall 
not be eligible for a grant under paragraph (1) unless such local 
educational agency in consortium with an entity will use assistance 
provided under such grant to provide or arrange for the provision of 
services that shall include--
            ``(A) drug abuse resistance education instruction for 
        students grades kindergarten through 6 that is designed to 
        teach students to recognize and resist pressures to experiment 
        that influence such children to use controlled substances, as 
        defined under paragraph (1), or beverage alcohol, including 
        instruction in the following areas--
                    ``(i) drug use and misuse;
                    ``(ii) understanding the consequences of drug 
                abuse;
                    ``(iii) resistance techniques;
                    ``(iv) assertive response styles;
                    ``(v) managing stress without taking drugs;
                    ``(vi) decisionmaking and risk taking;
                    ``(vii) media influences on drug use;
                    ``(viii) positive alternatives to drug abuse 
                behavior;
                    ``(ix) interpersonal and communication skills;
                    ``(x) self-esteem building activities; and
                    ``(xi) resistance to peer pressure and gang 
                pressures;
            ``(B) provisions for parental involvement;
            ``(C) classroom instruction by uniformed law enforcement 
        officials;
            ``(D) the use of positive student leaders to influence 
        younger students not to use drugs;
            ``(E) an emphasis on activity-oriented techniques designed 
        to encourage student-generated responses to problem-solving 
        situations; and
            ``(F) the awarding of a certificate of achievement to each 
        student who participates in a drug abuse resistance education 
        program.
    ``(3) Amounts received under paragraph (1) by any local educational 
agency or entity shall be used only to supplement, not to supplant, the 
amount of Federal, State, and local funds expended for the support of 
projects of the type described in paragraph (2).

``SEC. 4104. LOCAL APPLICATIONS.

    ``(a) In General.--(1) In order to be eligible to receive an 
allocation under section 4103(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)(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, 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 its application under this section, the advisory council 
established or designated under paragraph (2)(A) shall, on an on-going 
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 on how best to 
        coordinate its activities under this part with other related 
        programs, projects, and activities, including community service 
        and service learning projects, and the agencies that administer 
        them; and
            ``(iii) review program evaluations and other relevant 
        material and make recommendations to the local educational 
        agency on how to improve its drug and violence prevention 
        programs.
    ``(b) Contents of Applications.--An application under this section 
shall contain--
            ``(1) an assessment 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 that plan is consistent with, and 
                promotes the goals in, the State's application under 
                section 4102 and the local educational agency's plan, 
                either approved or being developed, under title III of 
                the Goals 2000: Educate America Act, or, if the local 
                educational agency does not have such an approved plan 
                and is not developing one, its plan under section 1112 
                of this Act;
                    ``(B) the local educational agency's measurable 
                goals for drug and violence prevention, and a 
                description of how it will assess and publicly report 
                progress toward attaining these goals;
                    ``(C) the local educational agency's comprehensive 
                plan for programs to be carried out under this part;
                    ``(D) how the local educational agency will use its 
                regular allocation under section 4103(d)(2)(A)(i)(I) 
                and its supplemental allocation, if any, under section 
                4103(d)(2)(A)(i)(II);
                    ``(E) how the local educational agency will 
                coordinate its programs and projects with community-
                wide efforts to achieve its goals for drug and violence 
                prevention; and
                    ``(F) how the local education agency will 
                coordinate its 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 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)(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 it 
is consistent with, and supports, the State's application under section 
4102 and the State's plan under the Goals 2000: Educate America Act, 
and, if the State does not have such a plan, its plan under section 
1111 of this Act.
    ``(B) A State educational agency may disapprove a local educational 
agency application under this section in whole or in part and may 
withhold, limit, or place restrictions on the use of funds allotted to 
such a local educational agency in a manner the State educational 
agency determines will best promote the purposes of this part or the 
State's plan under the Goals 2000: Educate America Act, and, if the 
State does not have such a plan, its plan under section 1111 of this 
Act, except that a local educational agency shall be afforded an 
opportunity to appeal any such disapproval.

``SEC. 4105. LOCAL DRUG AND VIOLENCE PREVENTION PROGRAMS.

    ``(a) Program Requirements.--A local educational agency shall use 
funds received under this part 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 assessments, goals, and programs 
        under this part.
    ``(b) Authorized Activities.--A comprehensive drug and violence 
prevention program carried out under this part may include--
            ``(1) age-appropriate, developmentally based drug 
        prevention and education programs for all students, from the 
        preschool level through grade 12, that address the legal, 
        social, personal and health consequences of the use of illegal 
        drugs, promote a sense of individual responsibility, and 
        provide information about effective techniques for resisting 
        peer pressure to use illegal drugs;
            ``(2) programs of drug prevention, comprehensive health 
        education, early intervention, counseling, 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, counseling or rehabilitation referral;
                    ``(C) the implementation of strategies, including 
                strategies to integrate the delivery of services from a 
                variety of providers, to combat illegal alcohol and 
                other drug use, such as--
                            ``(i) family counseling;
                            ``(ii) early intervention activities that 
                        prevent family dysfunction, enhance school 
                        performance, and boost attachment to school and 
                        family; and
                            ``(iii) activities, such as community 
                        service and service-learning projects, that are 
                        designed to increase students' sense of 
                        community;
            ``(3) age-appropriate, developmentally based violence 
        prevention and education programs for all students, from the 
        preschool level through grade 12, that address the legal, 
        health, personal, and social consequences of violent and 
        disruptive behavior, including sexual harassment, and 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 pledges 
                to renounce the use of violence, student non-violence 
                awareness days, 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
                    ``(D) comprehensive, community-wide strategies to 
                prevent or reduce illegal gang activities;
            ``(5) subject to the requirements of the matter following 
        paragraph (8), not more than one half of the cost of--
                    ``(A) minor remodeling to promote security and 
                reduce the risk of violence, such as removing lockers, 
                installing better lights, and upgrading locks; and
                    ``(B) acquiring and installing metal detectors and 
                hiring security personnel;
            ``(6) the promotion of before-and-after school 
        recreational, instructional, cultural, and artistic programs in 
        supervised community settings;
            ``(7) 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
            ``(8) the evaluation of any of the activities authorized 
        under this subsection.
A local educational agency may use no more than 33 percent of the funds 
it receives under this part for any fiscal year for the activities 
described in paragraph (5). Local educational agencies may use funds 
obtained under this part to pay the costs of programs and activities 
complying with the requirements of this section that are carried out by 
student organizations.
    ``(c) 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. 4106. EVALUATION AND REPORTING.

    ``(a) National Impact 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 under this part and submit a report of the findings of such 
evaluation to the President and the Congress.
    ``(b) State Report.--(1) By October 1, 1997, and every third year 
thereafter, the State educational agency shall submit to the Secretary 
a report--
            ``(A) on the implementation and outcomes of State programs 
        under section 4103(b) and local programs under section 4103(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 section 4103(b)(1).
    ``(2) The report required by this subsection shall be--
            ``(A) in the form specified by the Secretary;
            ``(B) based on the State's on-going 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 whatever information, and at whatever intervals, 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.

                      ``PART B--NATIONAL PROGRAMS

``SEC. 4201. FEDERAL ACTIVITIES.

    ``(a) Program Authorized.--From funds appropriated under section 
4004(a)(2), the Secretary of Education, 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, 
preschool through postsecondary. The Secretary shall carry out such 
programs directly, or through grants, contracts, or cooperative 
agreements with public and private 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 that are carried out 
        in cooperation with other Federal agencies, including the 
        Department of Health and Human Services, the Department of 
        Justice, the Department of Housing and Urban Development, and 
        the Department of Labor;
            ``(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 509 of the Public 
        Health Service Act;
            ``(4) the development, dissemination, and implementation of 
        model programs and strategies to promote the safety of students 
        attending institutions of higher education by preventing 
        violent behavior and the illegal use of alcohol and other drugs 
        by such students;
            ``(5) 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 school children;
            ``(6) program evaluations that address issues not addressed 
        under section 4106(a);
            ``(7) direct services to schools and school systems 
        afflicted with especially severe drug and violence problems;
            ``(8) activities in communities designated as empowerment 
        zones or enterprise communities that will connect schools to 
        community-wide efforts to reduce drug and violence problems;
            ``(9) developing and disseminating drug and violence 
        prevention materials, including video-based projects and model 
        curricula;
            ``(10) 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;
            ``(11) the implementation of innovative activities, such as 
        community service projects, designed to rebuild safe and 
        healthy neighborhoods and increase students' sense of 
        individual responsibility;
            ``(12) other activities that meet unmet national needs 
        related to the purposes of this title; and
            ``(13) 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.
    ``(b) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for funds under this section.

``SEC. 4202. PROGRAMS FOR NATIVE HAWAIIANS.

    ``(a) General Authority.--From the funds reserved pursuant to 
section 4101(a)(3), 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 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.

``SEC. 4203. HATE CRIME PREVENTION.

    ``(a) Grant Authorization.--The Secretary of Education may make 
grants to local educational agencies and community-based organizations 
for the purpose of providing assistance to localities most directly 
affected by hate crimes.
    ``(b) Use of Funds.--
            ``(1) Program development.--Grants under this section may 
        be used to improve elementary and secondary educational 
        efforts, including--
                    ``(A) development of education and training 
                programs designed to prevent and to reduce the 
                incidence of crimes and conflicts motivated by hate;
                    ``(B) development of curricula for the purpose of 
                improving conflict or dispute resolution skills of 
                students, teachers, and administrators;
                    ``(C) development and acquisition of equipment and 
                instructional materials to meet the needs of, or 
                otherwise be part of, hate crime or conflict programs; 
                and
                    ``(D) professional training and development for 
                teachers and administrators on the causes, effects, and 
                resolutions of hate crimes or hate-based conflicts.
            ``(2) In general.--In order to be eligible to receive a 
        grant under this section for any fiscal year, a local 
        educational agency or a local educational agency in conjunction 
        with a community-based organization shall submit an application 
        to the Secretary in such form and containing such information 
        as the office may reasonably require.
            ``(3) Requirements.--Each application under subsection (a) 
        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 these 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) Allocation of Funds.--From the funds authorized under this 
part, the Secretary of Education may carry out programs under this 
section.
    ``(d) 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.
    ``(e) Reports.--The Secretary shall submit to the Congress a report 
every 2 years which shall contain a detailed statement regarding grants 
and awards, activities of grant recipients and an evaluation of 
programs established under this section.
    ``(f) Definitions.--For the purposes of this section--
            ``(1) the term `hate crime' means a crime as defined by the 
        Hate Crime Satistics Act of 1990;
            ``(2) 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 and secondary schools in a city, county, township, 
        school district, or other political subdivision of a State, or 
        such combination of school districts or counties as are 
        recognized in a State as an administrative agency for its 
        public elementary and secondary schools and includes any other 
        public institution or agency having administrative control and 
        direction of a public elementary or secondary school; and
            ``(3) 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.

                      ``PART C--GENERAL PROVISIONS

``SEC. 4301. DEFINITIONS.

    ``For the purposes of this title, the following terms have the 
following meanings:
            ``(1) 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, the use of 
                tobacco and the use of controlled, illegal, addictive, 
                or harmful substances, including inhalants and anabolic 
                steroids; and
                    ``(B) with respect to violence, the promotion of 
                school safety, such that students and school personnel 
                are free from violent and disruptive acts, including 
                sexual harassment, 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.
            ``(2) 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.
            ``(3) The term `school-aged population' means the 
        population aged five through 17, inclusive, as determined by 
        the Secretary on the basis of the most recent satisfactory data 
        available from the Department of Commerce.
            ``(4) 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. 4302. MATERIALS.

    ``(a) `Wrong and Harmful' Message.--Drug prevention programs 
supported under this title shall convey a clear and consistent message 
that the illegal use of 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 title, but may 
evaluate the effectiveness of such curricula and other strategies in 
drug and violence prevention.

``SEC. 4303. PROHIBITED USES OF FUNDS.

    ``No funds under this title may be used for--
            ``(1) construction (except for minor remodeling needed to 
        accomplish the purposes of this title);
            ``(2) drug treatment or rehabilitation; and
            ``(3) psychiatric, psychological, or other medical 
        treatment or rehabilitation, other than school-based counseling 
        for students or school personnel who are victims or witnesses 
        of school-related crime.

``SEC. 4304. CERTIFICATION OF DRUG AND ALCOHOL ABUSE PREVENTION 
              PROGRAMS.

    ``(a) In General.--Notwithstanding any other provision of law other 
than section 432 of the General Education Provisions Act and section 
103(b) of the Department of Education Organization Act, no local 
educational agency shall be eligible to receive funds or any other form 
of financial assistance under any Federal program unless it certifies 
to the State educational agency that it has adopted and has implemented 
a program to prevent the use of illicit drugs and alcohol by students 
or employees that, at a minimum, includes--
            ``(1) age-appropriate, developmentally based drug and 
        alcohol education and prevention programs (which address the 
        legal, social, and health consequences of drug and alcohol use 
        and which provide information about effective techniques for 
        resisting peer pressure to use illicit drugs or alcohol) for 
        students in all grades of the schools operated or served by the 
        applicant, from early childhood level through grade 12;
            ``(2) conveying to students that the use of illicit drugs 
        and the unlawful possession and use of alcohol is wrong and 
        harmful;
            ``(3) standards of conduct that are applicable to students 
        and employees in all the applicant's schools and that clearly 
        prohibit, at a minimum, the unlawful possession, use, or 
        distribution of illicit drugs and alcohol by students and 
        employees on school premises or as part of any of its 
        activities;
            ``(4) a clear statement that sanctions (consistent with 
        local, State, and Federal law), up to and including expulsion 
        or termination of employment and referral for prosecution, will 
        be imposed on students and employees who violate the standards 
        of conduct required by paragraph (3) and a description of those 
        sanctions;
            ``(5) information about any available drug and alcohol 
        counseling and rehabilitation and re-entry programs that are 
        available to students and employees;
            ``(6) a requirement that parents, students, and employees 
        be given a copy of the standards of conduct required by 
        paragraph (3) and the statement of sanctions required by 
        paragraph (4);
            ``(7) notifying parents, students, and employees that 
        compliance with the standards of conduct required by paragraph 
        (3) is mandatory; and
            ``(8) a biennial review by the applicant of its program 
        to--
                    ``(A) determine its effectiveness and implement 
                changes to the program if they are needed; and
                    ``(B) ensure that the sanctions required by 
                paragraph (4) are consistently enforced.
    ``(b) Dissemination of Information.--Each local educational agency 
that provides the certification required by subsection (a) shall, upon 
request, make available to the Secretary, the State educational agency, 
and to the public full information about the elements of its program 
required by subsection (a), including the results of its biennial 
review.
    ``(c) Certification to Secretary.--Each State educational agency 
shall certify to the Secretary that it has adopted and has implemented 
a program to prevent the use of illicit drugs and the abuse of alcohol 
by its students and employees that is consistent with the program 
required by subsection (a) of this section. The State educational 
agency shall, upon request, make available to the Secretary and to the 
public full information about the elements of its program.
    ``(d) Regulations.--(1) The Secretary shall publish regulations to 
implement and enforce the provisions of this section, including 
regulations that provide for--
            ``(A) the periodic review by State educational agencies of 
        a representative sample of programs required by subsection (a); 
        and
            ``(B) a range of responses and sanctions for local 
        educational agencies that fail to implement their programs or 
        to consistently enforce their sanctions, including information 
        and technical assistance, the development of a compliance 
        agreement, and the termination of any form of Federal financial 
        assistance.
    ``(2) The sanctions required by subsection (a)(1)(4) may include 
the completion of an appropriate rehabilitation program.
    ``(e) Appeal Regarding Termination of Assistance.--Upon a 
determination by the Secretary to terminate financial assistance to any 
local educational agency under this section, the agency may file an 
appeal with an administrative law judge before the expiration of the 
30-day period beginning on the date such agency is notified of the 
decision to terminate financial assistance under this section. Such 
judge shall hold a hearing with respect to such termination of 
assistance before the expiration of the 45-day period beginning on the 
date that such appeal is filed. Such judge may extend such 45-day 
period upon a motion by the agency concerned. The decision of the judge 
with respect to such termination shall be considered to be a final 
agency action.

                      ``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 its schools;
            ``(2) the use of magnet schools has increased dramatically 
        since enactment of the magnet program, with approximately 1.4 
        million 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 this 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 
                magnet students from other students in the school;
                    ``(B) local educational agencies can maximize their 
                effectiveness in achieving the purposes of this program 
                if they have more flexibility 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) local educational agencies must seek to 
                enable participation in magnet school programs by 
                students who reside in the neighborhoods where the 
                programs are placed; and
                    ``(E) in order to ensure that magnet schools are 
                sustained after Federal funding ends, the Federal 
                Government must assist local educational agencies to 
                improve their capacity to continue to operate magnet 
                schools at a high level of performance;
            ``(5) it is in the best interest of the Federal Government 
        to--
                    ``(A) continue its support of local educational 
                agencies implementing court-ordered desegregation plans 
                and local educational agencies seeking to foster 
                meaningful interaction among students of different 
                racial and ethnic backgrounds beginning at the earliest 
                stage of their education;
                    ``(B) ensure that all students have equitable 
                access to quality education that will prepare them 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 new 
                and innovative programs in 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 
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 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 is authorized, in accordance with this part, to 
make grants to eligible local educational agencies for use in magnet 
schools that are part of an approved desegregation plan and that are 
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 
school or education center that offers a special curriculum capable of 
attracting substantial numbers of students of different racial 
backgrounds.

``SEC. 5105. ELIGIBILITY.

    ``A local educational agency is eligible to receive assistance 
under this part if it--
            ``(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, and 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 it under this part, adopt and implement a plan that has been 
        approved by the Secretary as adequate under title VI of the 
        Civil Rights Act of 1964 for the desegregation of minority-
        group-segregated children or faculty in such schools.

``SEC. 5106. APPLICATIONS AND REQUIREMENTS.

    ``(a) Applications.--An eligible local educational agency 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 require.
    ``(b) Information and Assurances.--An application under this part 
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) the manner in which an applicant will 
                continue the magnet school project after assistance 
                under this part is no longer available, including, if 
                applicable, an explanation of whether successful magnet 
                schools established or supported by the applicant with 
                funds under this part have been 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 the State's and local educational agency's 
                systemic reform plan, if any, under title III of the 
                Goals 2000: Educate America Act; 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 5103;
                    ``(B) employ teachers in the courses of instruction 
                assisted under this part who are certified or licensed 
                by the State to teach 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 places 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) have the greatest need for assistance, based on the 
        expense or difficulty of effectively carrying out an approved 
        desegragation 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) Use of Funds.--Grants made under this part may be used by 
eligible local educational 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 of, or subsidization of the 
        compensation of, elementary and secondary school teachers who 
        are certified or licensed by the State and who are necessary to 
        conduct 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.--With respect to subsections (a) (2) and (3), 
such grants may be used by eligible local educational agencies for such 
activities only if such activities are directly related to improving 
the students' reading skills or their knowledge of mathematics, 
science, history, geography, English, foreign languages, art, or music, 
or to improving vocational skills.

``SEC. 5109. PROHIBITIONS.

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

``SEC. 5110. LIMITATION ON PAYMENTS.

    ``(a) Duration of Awards.--Awards made under this part shall not 
exceed 3 years.
    ``(b) Limitation on Planning Funds.--A local educational agency may 
expend for planning up to 50 percent of the funds received under this 
part for the first year of the project, 15 percent for the second year 
of the project, and up to 10 percent for the third year of the project.
    ``(c) Limitation on Grants.--A local educational agency shall not 
receive more than $4,000,000 under this part in any one grant cycle.
    ``(d) Award Requirement.--To the extent practicable, for any fiscal 
year, the Secretary shall award grants to local educational agencies 
under this part no later than June 1 of the applicable fiscal year.

``SEC. 5111. 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 fiscal years 
1996, 1997, 1998, and 1999.
    ``(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, 
with respect to such excess amount, give priority to grants to local 
educational agencies that did not receive a grant under this part in 
the last fiscal year of the funding cycle prior to the fiscal year for 
which the determination is made.
    ``(c) Evaluations.--The Secretary may reserve not more than 2 
percent of the funds appropriated under subsection (a) for any fiscal 
year to carry out evaluations of projects under this part.

                ``PART B--WOMEN'S EDUCATIONAL EQUITY ACT

``SEC. 5201. FINDINGS AND STATEMENT OF PURPOSE.

    ``(a) Findings.--The Congress finds and declares that--
            ``(1) educational programs in the United States are 
        frequently inequitable as such programs relate to women and 
        girls;
            ``(2) such inequities limit the full participation of all 
        individuals in American society; and
            ``(3) 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.
    ``(b) Purpose.--The purpose of this part is to provide gender 
equity in education in the United States; to provide financial 
assistance to enable educational agencies and institutions to meet the 
requirements of title IX of the Educational Amendments of 1972; and to 
provide equity in education to women and girls who suffer multiple 
forms of discrimination based on sex, race, ethnic origin, limited 
English proficiency, disability, or age.

``SEC. 5202. PROGRAMS AUTHORIZED.

    ``The Secretary is authorized--
            ``(1) to promote, coordinate and evaluate gender equity 
        policies, programs, activities and initiatives in all federal 
        education program 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 provide grants to develop model equity programs;
            ``(6) to provide funds for the implementation of equity 
        programs in schools throughout the Nation;
            ``(7) 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
            ``(8) any other activities consistent with achieving the 
        purposes of this part.

``SEC. 5203. LOCAL IMPLEMENTATION GRANTS.

    ``(a) Authority.--The Secretary is authorized to make grants to, 
and enter into contracts with, public agencies, private nonprofit 
agencies, organizations, and institutions, including students and 
community groups, for activities designed to achieve the purposes of 
this part at all levels of education, including preschool, elementary 
and secondary education, higher education, adult education and 
vocational/technical education; for the establishment and operation, 
for a period not to exceed four years, of local programs to ensure--
            ``(1) educational equity for women and girls;
            ``(2) equal opportunities for both sexes; and
            ``(3) to conduct activities incident to achieving 
        compliance with title IX of the Education Amendments of 1972.
    ``(b) Grant Program.--Authorized activities under subsection (a) 
may include--
            ``(1) introduction into the curriculum and classroom of 
        curricula, textbooks, and other material designed to achieve 
        equity for women and girls;
            ``(2) implementation of preservice and inservice training 
        with special emphasis on programs and activities designed to 
        provide educational equity for women and girls;
            ``(3) evaluation of promising or exemplary model programs 
        to assess their ability to improve local efforts to advance 
        educational equity for women and girls;
            (4) implementation of programs and policies to address 
        sexual harassment and violence against women and girls and to 
        ensure that educational institutions are free from threats to 
        the safety of students and personnel;
            ``(5) implementation of guidance and counseling activities, 
        including career education program, designed to ensure 
        educational equity for women and girls;
            ``(6) implementation of nondiscriminatory tests of aptitude 
        and achievement and of alternative assessments that eliminate 
        biased assessment instruments from use;
            ``(7) implementation of 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 Aid to 
        Families with Dependent Children benefits;
            ``(8) implementation of programs to improve representation 
        of women in educational administration at all levels; and
            ``(9) planning, development and initial implementation of--
                    ``(A) comprehensive plans for implementation of 
                equity programs in state and local educational agencies 
                and institutions of higher education; including 
                community colleges;
                    ``(B) innovative approaches to school-community 
                partnerships for educational equity; and
                    ``(C) innovative approaches to equity programs 
                addressing combined bias, stereotyping, and 
                discrimination on the basis of sex and race, ethnic 
                origin, limited English proficiency, and disability.
    ``(c) Application; Participation.--A grant may be made, and a 
contract may be entered into, under this part only upon application to 
the Secretary, at such time, in such form, and containing or 
accompanied by such information as the Secretary may prescribe. Each 
such application shall--
            ``(1) provide that the program or activity for which 
        assistance is sought will be administered by or under the 
        supervision of the applicant and in cooperation with 
        appropriate educational and community leaders, including 
        parent, teacher and student organizations, educational 
        institutions, business leaders, community-based organizations 
        serving women, and other significant groups and individuals;
            ``(2) describe a program for carrying out the purpose set 
        forth in section 5203(b) which holds promise of making 
        substantial contribution toward attaining such purposes;
            ``(3) describe plans for continuation and 
        institutionalization of the program with local support 
        following completion of the grant period and termination of 
        Federal support under this part; and
            ``(4) establish policies and procedures which ensure 
        adequate documentation and evaluation of the activities 
        intended to be carried out under the application.
    ``(d) Criteria; Priorities; Categories of Competition.--The 
Secretary shall establish criteria, priorities, and categories of 
competition for awards under this part to ensure that available funds 
are used for those purposes that most effectively will achieve the 
purposes of the Act.
            ``(1) The criteria shall address the extent to which--
                    ``(A) the program addresses the needs of women and 
                girls of color and women and girls with disabilities;
                    ``(B) the program meets locally defined and 
                documented educational equity needs and priorities, 
                including title IX compliance;
                    ``(C) the program is a significant component of a 
                comprehensive plan for educational equity and title IX 
                compliance in the particular school district, 
                institution of higher education, vocational-technical 
                institution, or other educational agency or 
                institution; and
                    ``(D) the program implements an institutional 
                change strategy with long-term impact and will continue 
                as a central activity of the applicant agency or 
                institution after the grant is completed.
            ``(2) The Secretary shall establish priorities, one of 
        which shall be a priority for compliance with title IX of the 
        Education Amendments of 1972. Not more than 60 percent of funds 
        available in each fiscal year shall be allocated to programs 
        under the priorities.
            ``(3) To the extent feasible, the Secretary shall establish 
        3 categories of competition, distinguishing among three types 
        of applicants and levels of education that shall include--
                    ``(A) grants to local educational agencies, state 
                education agencies, and other agencies and 
                organizations providing elementary and secondary 
                education;
                    ``(B) grants to institutions of higher education, 
                including community colleges and other agencies and 
                organizations providing postsecondary education, 
                including vocational-technical education, adult 
                education, and other programs; and
                    ``(C) grants to non-profit organizations, including 
                community-based organizations, groups representing 
                students, parents, and women, including women and girls 
                of color and women and girls with disabilities.
    ``(e) Special Rule.--To the extent feasible, the Secretary shall 
ensure that the total of grants awarded each 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, including at least 
        one grant in each of the ten Federal regions; and
            ``(3) urban, rural, and suburban educational institutions.

``SEC. 5204. RESEARCH AND DEVELOPMENT GRANTS.

    ``(a) Authority.--The Secretary is authorized to make grants to, 
and enter into contracts with, public agencies, private nonprofit 
agencies, organizations, and institutions, including students, and 
community groups, for activities designed to achieve the purpose of 
this part at all levels of education, including preschool, elementary 
and secondary education, higher education, adult education and 
vocational-technical education; to develop model policies and programs, 
and to conduct research to address and ensure educational equities for 
women and girls, including but not limited to--
            ``(1) the development and evaluation of gender-equitable 
        curricula, textbooks, software, and other educational material 
        and technology;
            ``(2) the development of model preservice and inservice 
        training programs for educational personnel with special 
        emphasis on programs and activities designed to provide 
        educational equity;
            ``(3) the development of guidance and counseling 
        activities, including career education programs, designed to 
        ensure gender equity;
            ``(4) the development and evaluation of nondiscriminatory 
        assessment systems;
            ``(5) 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;
            ``(6) 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 Aid to Families with 
        Dependent Children;
            ``(7) the development of instruments and strategies for 
        program evaluation and dissemination of promising or exemplary 
        programs designed to improve local efforts to achieve gender 
        equity;
            ``(8) the development of instruments and procedures to 
        assess the presence or absence of gender equity in educational 
        settings; and
            ``(9) the development and evaluation of various strategies 
        to institutionalize gender equity in education.
    ``(b) Application.--A grant may be made, and a contract may be 
entered into, under this part only upon application to the Secretary, 
at such time, in such form, and containing or accompanied by such 
information as the Secretary may prescribe. Each such application 
shall--
            ``(1) provide that the program or activity for which 
        assistance is sought will be administered by or under the 
        supervision of the applicant;
            ``(2) describe a plan for carrying out 1 or more research 
        and development activities authorized in paragraph (a) above, 
        which holds promise of making a substantial contribution toward 
        attaining the purposes of this Act; and
            ``(3) set forth policies and procedures which insure 
        adequate documentation, data collection, and evaluation of the 
        activities intended to be carried out under the application, 
        including an evaluation or estimate of the potential for 
        continued significance following completion of the grant 
        period.
    ``(c) Criteria and Priorities.--(1) The Secretary shall establish 
criteria and priorities to ensure that available funds are used for 
programs that most effectively will achieve the purposes of this part.
    ``(2) The criteria and priorities shall be promulgated in 
accordance with section 431 of the General Education Provisions Act.
    ``(3) In establishing priorities, one shall be programs which 
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.
    ``(d) Special Rule.--To the extent feasible, the Secretary shall 
ensure that the total of grants awarded each year address--
            ``(1) all levels of education, including preschool, 
        elementary and secondary education, higher education, 
        vocational education, and adult education; and
            ``(2) all regions of the United States.
    ``(e) 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 by the Office of Women's 
        Equity and the Office of Educational Research and Improvement.
    ``(f) Limitation.--Nothing in this part shall be construed as 
prohibiting men and boys from participating in any programs or 
activities assisted under this part.

``SEC. 5205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
            ``(1) for the purpose of carrying out the provisions of 
        section 5203, there are authorized to be appropriated 
        $3,000,000 for fiscal year 1995 and such sums as may be 
        necessary for each of the fiscal years 1996, 1997, 1998, and 
        1999; and
            ``(2) for the purpose of carrying out the provisions of 
        section 5204, there are authorized to be appropriated 
        $2,000,000 for fiscal year 1995 and such sums as may be 
        necessary for each of the fiscal years 1996, 1997, 1998, and 
        1999.

                      ``TITLE VI--INDIAN EDUCATION

``SEC. 6001. FINDINGS.

    ``The Congress finds that--
            ``(1) the Federal Government has a special responsibility 
        to ensure that educational programs for all American Indian and 
        Alaska Native children and adults--
                    ``(A) are based on high-quality, internationally 
                competitive content and student performance standards 
                and build on Indian culture and the Indian community;
                    ``(B) assist local educational agencies, Indian 
                tribes, and others in providing Indian students the 
                opportunity to achieve those standards; and
                    ``(C) meet the special educational and culturally 
                related academic needs of American Indian and Alaska 
                Native students;
            ``(2) since enactment of the original Indian Education Act 
        in 1972, Indian parents have become significantly more involved 
        in the planning, development, and implementation of educational 
        programs that affect them and their children, and schools 
        should continue to foster such involvement;
            ``(3) although the numbers of Indian teachers, 
        administrators, and university professors have increased since 
        1972, teacher training programs are not recruiting, training, 
        or retraining sufficient numbers of Indian persons as educators 
        to meet the needs of a growing Indian student population in 
        elementary, secondary, vocational, adult, and higher education;
            ``(4) the dropout rate for Indian students is unacceptably 
        high; for example, nine percent of Indian students who were 
        eighth graders in 1988 had already dropped out of school by 
        1990;
            ``(5) from 1980 to 1990, the percentage of Indian persons 
        living in poverty 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 families; and
            ``(6) research related specifically to the education of 
        Indian children and adults is very limited, and much of it is 
        poor in quality or focused on limited local or regional issues.

``SEC. 6002. PURPOSE.

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

         ``PART A--FORMULA GRANTS TO LOCAL EDUCATIONAL AGENCIES

``SEC. 6101. PURPOSE.

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

``SEC. 6102. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``A local educational agency is eligible for a grant under this 
part for any fiscal year if the number of Indian children who were 
enrolled in the schools of the agency, and to whom the agency provided 
free public education, during the preceding fiscal year--
            ``(1) was at least 20; or
            ``(2) constituted not less than 25 percent of the agency's 
        total enrollment.

``SEC. 6103. AMOUNT OF GRANTS.

    ``(a) Amount of Grants.--(1) The Secretary is authorized to 
allocate to each local educational agency which has an approved 
application under this part an amount equal to the product of--
            ``(A) the number of Indian children described in section 
        6106; and
            ``(B) the greater of--
                    ``(i) the average per-pupil expenditure of the 
                State in which the agency is located; or
                    ``(ii) 80 percent of the average per-pupil 
                expenditure in the United States.
    ``(2) The Secretary shall reduce the amount of each allocation 
determined under paragraph (1) in accordance with subsection (e) of 
this section.
    ``(b) Minimum Grant Amount.--The Secretary shall not make a grant 
to a local educational agency if the amount determined under subsection 
(a) is less than $4,000, except that the Secretary may make a grant to 
a consortium of local educational agencies, one or more of which does 
not qualify for such a minimum award, if--
            ``(1) the total amount so determined for such agencies is 
        not less than $4,000;
            ``(2) such agencies, in the aggregate, meet the eligibility 
        requirement of either section 6102(1) or 6102(2); and
            ``(3) the Secretary determines that such a grant would be 
        effectively used to carry out the purpose of this part.
    ``(c) Definition.--For the purpose of this section, the average 
per-pupil expenditure of a State is determined by dividing--
            ``(1) 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; by
            ``(2) the aggregate number of children who were in average 
        daily attendance for whom such agencies provided free public 
        education during such preceding fiscal year.
    ``(d) Schools Operated or Supported by the Bureau of Indian 
Affairs.--(1) In addition to the grants determined under subsection 
(a), the Secretary shall allocate to the Secretary of the Interior an 
amount equal to the product of--
            ``(A) the total number of Indian children enrolled in 
        schools that are operated by--
                    ``(i) the Bureau of Indian Affairs; or
                    ``(ii) an Indian tribe, or an organization 
                controlled or sanctioned by an Indian tribal 
                government, for the children of that tribe under a 
                contract with, or grant from, the Department of the 
                Interior under the Indian Self-Determination Act (25 
                U.S.C. 450f et seq.) or the Tribally Controlled Schools 
                Act of 1988 (25 U.S.C. 2501 et seq.); and
            ``(B) the greater of--
                    ``(i) the average per-pupil expenditure of the 
                State in which the school is located; or
                    ``(ii) 80 percent of the average per-pupil 
                expenditure in the United States.
    ``(2) The Secretary shall transfer the amount determined under 
paragraph (1), reduced as may be necessary under subsection (e), to the 
Secretary of the Interior in accordance with, and subject to, section 
9205 of this Act.
    ``(e) Ratable Reductions.--If the sums appropriated for any fiscal 
year under section 6602(a) are insufficient to pay in full the amounts 
determined for local educational agencies under subsection (a)(1) and 
for the Secretary of the Interior under subsection (d), each of those 
amounts shall be ratably reduced.

``SEC. 6104. APPLICATIONS.

    ``(a) General.--Any local educational agency that desires to 
receive a grant under this part shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require.
    ``(b) Comprehensive Program Required.--Each such application shall 
include a comprehensive program for meeting the needs of Indian 
children in the local educational agency, including their language and 
cultural needs, that--
            ``(1) provides programs and activities to meet the 
        culturally related academic needs of American Indian and Alaska 
        Native students,
            ``(2)(A) is consistent with, and promotes the goals in, the 
        State and local plans, either approved or being developed, 
        under title III of the Goals 2000: Educate America Act or, if 
        such plans are not approved or being developed, with the State 
        and local plans under sections 1111 and 1112 of this Act; and
            ``(B) includes academic content and student performance 
        goals for such children, and benchmarks for attaining them, 
        that are based on the challenging State standards adopted under 
        title III of the Goals 2000: Educate America Act or under title 
        I of this Act for all children;
            ``(3) explains how Federal, State, and local programs, 
        especially under title I of this Act, will meet the needs of 
        such students;
            ``(4) demonstrates how funds under this part will be used 
        for activities authorized by section 6105;
            ``(5) describes the professional development to 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 the 
                project have been properly trained to carry it out; and
            ``(6) describes how the agency--
                    ``(A) will periodically assess the progress of all 
                Indian children in its schools, including Indian 
                children who do not participate in programs under this 
                part, in meeting the goals described in paragraph (2);
                    ``(B) will provide the results of that assessment 
                to the parent committee described in subsection (c)(6) 
                and to the community served by the agency; and
                    ``(C) is responding to findings of any previous 
                such assessments.
    ``(c) Assurances.--Each such application shall also include 
assurances that--
            ``(1) the local educational agency will use funds received 
        under this part only to supplement the level of funds that, in 
        the absence of such Federal funds, the agency would make 
        available for the education of Indian children, and not to 
        supplant such funds;
            ``(2) the local educational agency will submit such reports 
        to the Secretary, in such form and containing such information, 
        as the Secretary may require to--
                    ``(A) carry out the Secretary's functions under 
                this part; and
                    ``(B) determine the extent to which funds provided 
                under this part have been effective in improving the 
                educational achievement of Indian students in the local 
                educational agency;
            ``(3) the program for which assistance is sought has been 
        based upon a local assessment and prioritization of the special 
        educational and culturally related academic needs of the 
        American Indian and Alaska Native students for which the local 
        educational agency is providing an education;
            ``(4) the program for which assistance is sought will use 
        the best available talents and resources, including persons 
        from the Indian community;
            ``(5) the local educational agency has developed the 
        program in open consultation with parents of Indian children, 
        teachers, and, where appropriate, secondary school Indian 
        students, including holding public hearings at which such 
        persons have had a full opportunity to understand the program 
        and to offer recommendations regarding such program;
            ``(6) the local educational agency has developed the 
        program with the participation and written approval of a 
        committee--
                    ``(A) that is composed of, and selected by, parents 
                of Indian children in the local educational agency's 
                schools, teachers, and, where appropriate, secondary 
                school Indian students and of which at least half the 
                members are such parent;
                    ``(B) that sets forth such policies and procedures, 
                including policies and procedures relating to the 
                hiring of personnel, as will ensure that the program 
                for which assistance is sought will be operated and 
                evaluated in consultation with, and with the 
                involvement of, parents of the children and 
                representatives of the area to be served;
                    ``(C) that, in the case of an application which 
                includes a schoolwide project (as specified in section 
                6105(c) of this part) finds that such project will not 
                diminish the availability of culturally related 
                activities for American Indians and Alaskan Native 
                students; and
                    ``(D) that adopts and abides by reasonable bylaws 
                for the conduct of the activities of the committee.
    ``(d) State Educational Agency Review.--(1) Before submitting its 
application to the Secretary, the local educational agency shall obtain 
comments on the application from the State educational agency.
    ``(2) The local educational agency shall send the State educational 
agency's comments to the Secretary with its application.

``SEC. 6105. AUTHORIZED SERVICES AND ACTIVITIES.

    ``(a) General Requirements.--Each local educational agency that 
receives a grant under this part shall use the grant funds for services 
and activities, consistent with the purpose of this part, that--
            ``(1) are designed to carry out its comprehensive plan for 
        Indian students, described in its application under section 
        6104(b);
            ``(2) are designed with special regard for the language and 
        cultural needs of those students; and
            ``(3) supplement and enrich the regular school program.
    ``(b) Particular Activities.--Such services and activities 
include--
            ``(1) culturally related activities which support the 
        program set out in the application, as required in section 
        6104;
            ``(2) early childhood and family programs that emphasize 
        school readiness;
            ``(3) enrichment programs that focus on problem-solving and 
        cognitive skills development and that directly support the 
        attainment of challenging State content and student performance 
        standards;
            ``(4) integrated educational services in combination with 
        other programs meeting similar needs;
            ``(5) school-to-work transition activities to enable Indian 
        students to participate in programs such as those supported by 
        the School-to-Work Opportunities Act of 1993 and the Carl D. 
        Perkins Vocational and Applied Technology Education Act, 
        including tech-prep, mentoring, and apprenticeship programs;
            ``(6) prevention of, and education about, substance abuse; 
        and
            ``(7) acquisition of equipment, but only if such 
        acquisition is essential to meet the purpose of this part.
    ``(c) Schoolwide Programs.--Notwithstanding any other provision of 
this part, a local educational agency may use funds it receives under 
this part to support a schoolwide program under section 1114 of title I 
of this Act, in accordance with such section, if the Secretary 
determines that the local educational agency has made adequate 
provision for the participation of Indian children in such project and 
the involvement of Indian parents in the formulation of such project.

``SEC. 6106. STUDENT ELIGIBILITY FORMS.

    ``(a) The Secretary shall require that each application for a grant 
under this subpart for each fiscal year be supported by a form, 
maintained in the files of the applicant, for each eligible Indian 
child for whom the local educational agency is providing free public 
education that sets forth information establishing the status of the 
child as an eligible Indian child.
    ``(b) The Secretary shall request on the form required under 
subsection (a) at least the following information:
            ``(1) either--
                    ``(A) the name of the tribe, band, or other 
                organized group of Indians with which the child claims 
                membership, along with the enrollment number 
                establishing membership (if readily available), and the 
                name and address of the organization which has updated 
                and accurate membership data for such tribe, band, or 
                other organized group of Indians, or
                    ``(B) if the child is not a member of a tribe, 
                band, or other organized group of Indians, the name, 
                the enrollment number (if readily available), and the 
                organization (and address thereof) responsible for 
                maintaining updated and accurate membership rolls of 
                any of the child's parents or grandparents, from whom 
                the child claims eligibility;
            ``(2) whether the tribe, band, or other organized group of 
        Indians with which the child, his parents, or grandparents 
        claim membership is federally recognized;
            ``(3) the name and address of the parent or legal guardian;
            ``(4) the signature of the parent or legal guardian 
        verifying the accuracy of the information supplied; and
            ``(5) any other information which the Secretary deems 
        necessary to provide an accurate program profile.
    ``(c) Nothing in the requirements of subsection (b) may be 
construed as affecting the definition set forth in section 6601. In 
order for a child to be counted in computing the local educational 
agency's grant award, the eligibility form for the child must contain 
at a minimum--
            ``(1) the child's name;
            ``(2) the name of the tribe, band, or other organized group 
        of Indians; and
            ``(3) the parent's dated signature.
The failure of an applicant to furnish any other information listed in 
subsection (b) with respect to any child shall have no bearing on the 
determination of whether the child is an eligible Indian child.
    ``(d) The forms and the standards of proof (including the standard 
of good faith compliance) that were in use during the 1985-1986 
academic year to establish a child's eligibility for entitlement under 
the Indian Elementary and Secondary School Assistance Act shall be the 
only forms and standards of proof used to establish such eligibility 
and to meet the requirements of subsection (a).
    ``(e) For purposes of determining whether a child is an eligible 
Indian child, the membership of the child, or any parent or grandparent 
of the child, in a tribe, band, or other organized group of Indians may 
be established by proof other than an enrollment number, even if 
enrollment numbers for members of such tribe, band, or groups are 
available. Nothing in subsection (b) may be construed as requiring the 
furnishing of enrollment numbers.
    ``(f)(1)(A) The Secretary shall conduct a monitoring and evaluation 
review of a sampling of the recipients of grants under this part each 
fiscal year, such sampling to take into account size of the recipient 
and geographic location. The purpose of the sampling shall be to 
provide the Secretary with such information as is necessary to assist 
the Secretary in carrying out his or her responsibility to provide 
technical assistance under this part.
    ``(B) A local educational agency may not be held liable to the 
United States, or be otherwise penalized, by reason of the findings of 
an audit that relate to the date of completion, or the date of 
submission, of any forms used to establish, before April 28, 1988, a 
child's eligibility for entitlement under the Indian Elementary and 
Secondary School Assistance Act.
    ``(2) Any local educational agency that provides false information 
in the application for a grant under this subpart shall be ineligible 
to apply for any other grants under this part and shall be liable to 
the United States for any funds provided under this part that have not 
been expended.
    ``(3) Any student who provides false information on the form 
required under subsection (d)(1) may not be taken into account in 
determining the amount of any grant under this part.
    ``(g) For purposes of distribution of funds under this Act to 
schools funded by the Bureau of Indian Affairs, the Secretary shall use 
the count of the number of students in each such school funded under 
the Indian Student Equalization Formula developed pursuant to section 
1128 of Public Law 95-561, in lieu of the requirements of this section.

``SEC. 6107. PAYMENTS.

    ``(a) General.--The Secretary shall pay each local educational 
agency with an application approved under this part the amount 
determined under section 6103, subject to subsections (b) and (c) of 
this section and shall notify such local educational agency of the 
amount no later than June 1 of the year in which the grant will be 
paid.
    ``(b) Payments Taken Into Account by the State.--The Secretary 
shall not make a grant under this part for any fiscal year to any local 
educational agency in a State that has taken into consideration 
payments under this part (or under subpart 1 of the Indian Education 
Act of 1988) in determining the eligibility of the local educational 
agency for State aid, or the amount of that aid, with respect to the 
free public education of children during that year or the preceding 
fiscal year.
    ``(c) Reduction of Payment for Failure To Maintain Fiscal Effort.--
(1) The Secretary shall not pay any local educational agency the full 
amount determined under section 6103 for any fiscal year unless the 
State educational agency notifies the Secretary, and the Secretary 
determines, that the combined fiscal effort of that local agency and 
the State with respect to the provision of free public education by 
such local agency for the preceding fiscal year, computed on either a 
per-student or aggregate expenditure basis, was not less than 90 
percent of such combined fiscal effort, computed on the same basis, for 
the second preceding fiscal year.
    ``(2) If the Secretary determines for any fiscal year that a local 
educational agency failed to maintain its fiscal effort at the 90 
percent level required by paragraph (1), the Secretary shall--
            ``(A) reduce the amount of the grant that would otherwise 
        be made to the agency under this part in the exact proportion 
        of such agency's failure to maintain its fiscal effort at such 
        level; and
            ``(B) not use the reduced amount of the agency's 
        expenditures for the preceding year to determine compliance 
        with paragraph (1) for any succeeding fiscal year, but shall 
        use the amount of expenditures that would have been required to 
        comply with paragraph (1).
    ``(3)(A) The Secretary may waive the requirement of paragraph (1), 
for not more than one year at a time, if the Secretary determines that 
the failure to comply with such requirement is due to exceptional or 
uncontrollable circumstances, such as a natural disaster or a 
precipitous and unforeseen decline in the agency's financial resources.
    ``(B) The Secretary shall not use the reduced amount of such 
agency's expenditures for the fiscal year preceding the fiscal year for 
which a waiver is granted to determine compliance with paragraph (1) 
for any succeeding fiscal year, but shall use the amount of 
expenditures that would have been required to comply with paragraph (1) 
in the absence of the waiver.
    ``(d) Reallocations.--The Secretary may reallocate, in the manner 
the Secretary determines will best carry out the purpose of this part, 
any amounts that--
            ``(1) based on estimates by local educational agencies or 
        other information, will not be needed by such agencies to carry 
        out their approved projects under this part; or
            ``(2) otherwise become available for reallocation under 
        this part.

    ``PART B--SPECIAL PROGRAMS AND PROJECTS TO IMPROVE EDUCATIONAL 
                   OPPORTUNITIES FOR INDIAN CHILDREN

``SEC. 6201. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR INDIAN 
              CHILDREN.

    ``(a) Purpose Coordination.--(1) It is the purpose of this section 
to support projects that are to develop, text, and demonstrate the 
effectiveness of services and programs to improve educational 
opportunities and achievement of Indian children.
    ``(2) The Secretary shall take such steps as are necessary to 
achieve coordination of projects funded under this part with other 
programs funded under this Act and with other Federal programs operated 
for the benefit of American Indian and Alaska Native children.
    ``(b) Eligible Applicants.--State educational agencies, local 
educational agencies, Indian tribes, Indian organizations, federally 
supported elementary and secondary schools for Indian students, Indian 
institutions, including Indian institutions of higher education, and 
consortia thereof may apply for grants under this section.
    ``(c) Authorized Projects and Activities.--Recipients of grants 
under this section shall use the grant funds to carry out projects and 
activities that meet the purpose of this section, such as--
            ``(1) innovative programs related to the educational needs 
        of educationally deprived children;
            ``(2) educational services 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 curriculum areas of English, mathematics, 
        science, foreign languages, art, history, and geography;
            ``(3) bilingual and bicultural programs and projects;
            ``(4) special health and nutrition services, and other 
        related activities, which meet the special health, social, and 
        psychological problems of Indian children;
            ``(5) special compensatory and other programs and projects 
        designed to assist and encourage Indian children to enter, 
        remain in, or reenter school and to increase the rate of high 
        school graduation;
            ``(6) comprehensive guidance, counseling, and testing 
        services;
            ``(7) early childhood and kindergarten programs, including 
        family based preschool programs that emphasize school readiness 
        and parental skills, and services to Indian children with 
        disabilities;
            ``(8) partnership projects between local educational 
        agencies and institutions of higher education that allow high 
        school students to enroll in courses at the postsecondary level 
        to aid them in the transition from high school to postsecondary 
        education;
            ``(9) partnership projects between schools and local 
        businesses for school-to-work transition programs designed to 
        provide Indian youth with the knowledge and skills they need to 
        make an effective transition from school to a first job in a 
        high-skill, high-wage career;
            ``(10) programs designed to encourage and assist Indian 
        student to work toward, and gain entrance into, institutions of 
        higher education; and
            ``(11) other services which meet the needs of this section.
Preservice or in-service training of professional and paraprofessional 
personnel may be a part of any program authorized under this section.
    ``(d) Grants and Applications.--
            ``(1) Grants.--(A) The Secretary may make grants under this 
        section for up to 5 years. Grants may be made for the planning, 
        development, pilot operation, or demonstration of any activity 
        authorized under this section, with priority given to those 
        applications which present a plan for combining 2 or more of 
        these operations over a multiyear period. The Secretary shall 
        make such multiyear grants subject to the conditions included 
        below and shall provide continuation funding for each fiscal 
        year upon a positive determination that the applicant has made 
        substantial progress in carrying out the operations covered 
        under each grant period, as set forth in the initial grant and 
        any subsequent modifications.'
            ``(B) The Secretary is also authorized to make 
        dissemination grants. Prior to making any such dissemination 
        grant, the Secretary shall make a finding that the material or 
        program to be disseminated has been adequately reviewed and has 
        shown (i) educational merit, and (ii) and ability to be 
        replicated.
            ``(2) Applications.--(A) Any eligible entity that desires 
        to receive a grant under this section shall submit an 
        application to the Secretary at such time and in such manner as 
        the Secretary may require.
            ``(B) Each application 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 project for which assistance is 
                sought;
                    ``(ii) an assurance that the applicant will 
                participate, at the request of the Secretary, in any 
                national evaluation of projects under this section; and
                    ``(iii) such other assurances and information as 
                the Secretary may reasonably require.

``SEC. 6202. PROFESSIONAL DEVELOPMENT.

    ``(a) Purpose.--The purpose of this section is to increase the 
number of qualified Indian persons in professions serving Indian 
people, and to provide training as teachers, administrators, teacher 
aides, social workers, and ancillary educational personnel, and to 
improve the skills of those presently serving in these capacities.
    ``(b) Eligible Applicants.--Eligible applicants under this section 
are--
            ``(1) institutions of higher education, including Indian 
        institutions of higher education;
            ``(2) State and local educational agencies, in consortium 
        with institutions of higher education; and
            ``(3) Indian tribes and organizations, in consortium with 
        institutions of higher education.
    ``(c) Authorized Projects and Activities.--(1) Each recipient of a 
grant under this section shall use the grant funds to provide support 
and training for Indian persons, consistent with the purposes of this 
section. Such activities may include, but are not limited to, a 
continuing program, symposia, workshops, conferences, and direct 
financial support.
    ``(2)(A) For education personnel, such training may be in-service 
or preservice.
    ``(B) For those being trained in other fields, such training shall 
be in programs that result in graduate degrees.
    ``(3) In programs funded under this section, preference shall be 
given to the training of Indians.
    ``(4) In making grants under this section, the Secretary shall 
consider prior performance and may not limit eligibility on the basis 
of the number of previous grants or the length of time for which the 
applicant has received grants.
    ``(d) Project Period.--The project period for each project approved 
under this section shall be up to 5 years.
    ``(e) Service Obligation.--The Secretary shall, by regulation, 
require that individuals who receive training under this section 
perform related work which benefits Indian people or repay all or a 
prorated part of the support received. The Secretary shall establish by 
regulation a mechanism for having the recipient provide information of 
compliance with this requirement beginning within 12 months of the 
completion of training received.

``SEC. 6203. FELLOWSHIPS FOR INDIAN STUDENTS.

    ``(a) In General.--During each fiscal year ending prior to October 
1, 1999, the Secretary is authorized to award fellowships to be used 
for study in graduate and professional programs at institutions of 
higher education. Such fellowships shall be awarded to Indian students 
in order to enable them to pursue a course of study of not more than 4 
academic years leading toward a postbaccalaureate degree in medicine, 
clinical psychology, psychology, law, education, and related fields or 
leading to an undergraduate or graduate degree in engineering, business 
administration, natural resources, and related fields.
    ``(b) Stipends.--The Secretary shall pay to persons awarded 
fellowships under subsection (a) such stipends (including such 
allowances for subsistence of such persons and their dependents) the 
Secretary may determine 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 the holder of 
a fellowship awarded under subsection (a) is pursuing a course of 
study, in lieu of tuition charged such holder, such amounts as the 
Secretary may determine to be necessary to cover the cost of education 
provided the holder of such a fellowship.
    ``(d) Special Rules.--
            ``(1) The Secretary may, if a fellowship awarded under 
        subsection (a) is vacated prior to the end of the period for 
        which it was awarded, award an additional fellowship for the 
        remainder of such period.
            ``(2) By no later than the date that is 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 the amount of such 
        fellowship and of any stipends or other payments that will be 
        made under this section to, or for the benefit of, such 
        individual for such academic term.
            ``(3) 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.--The Secretary shall, by regulation, 
require that individuals who receive financial assistance under this 
section perform related work which benefits Indian people or repay all 
or a prorated part of the support received. The Secretary shall 
establish by regulation a mechanism for having the recipient provide 
information of compliance with this requirement beginning within 12 
months of the completion of training received.

``SEC. 6204. GIFTED AND TALENTED.

    ``(a) Establishment of Centers.--The Secretary shall establish 2 
centers for gifted and talented Indian students at tribally controlled 
community colleges.
    ``(b) Demonstration Projects.--
            ``(1) The Secretary shall award separate grants to, or 
        enter into contracts with--
                    ``(A) 2 tribally controlled community colleges 
                that--
                            ``(i) are eligible for funding under the 
                        Tribally Controlled Community College 
                        Assistance Act of 1978, and
                            ``(ii) are fully accredited, or
                    ``(B) if acceptable applications are not submitted 
                to the Secretary by 2 of such colleges, the American 
                Indian Higher Education Consortium,
        for the establishment of centers under subsection (a) and for 
        demonstration projects designed to address the special needs of 
        Indian students in elementary and secondary schools who are 
        gifted and talented and to provide such support services to 
        their families that are needed to enable the students to 
        benefit from the project.
            ``(2) Any person to whom a grant is made, or with whom a 
        contract is entered into, under paragraph (1) may enter into a 
        contract with any other persons, including the Children's 
        Television Workshop, for the purpose of carrying out the 
        demonstration projects for which such grant was awarded or for 
        which the contract was entered into by the Secretary.
            ``(3) Demonstration projects funded under this section may 
        include--
                    ``(A) the identification of the special needs of 
                gifted and talented students, particularly at the 
                elementary school level, with attention to the 
                emotional and psychosocial needs of these students and 
                to the provision of those support services to their 
                families that are needed to enable these students to 
                benefit from the project;
                    ``(B) the conduct of educational, psychosocial, and 
                developmental activities which hold reasonable promise 
                of resulting in substantial progress toward meeting the 
                educational needs of such gifted and talented children, 
                including, but not limited to, demonstrating and 
                exploring the use of Indian languages and exposure to 
                Indian cultural traditions, and mentoring and 
                apprenticeship programs;
                    ``(C) the provision of technical assistance and the 
                coordination of activities at schools which receive 
                grants under subsection (c) with respect to the 
                activities funded by such grants, the evaluation of 
                programs at such schools funded by 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 the dissemination of information 
                derived from the demonstration projects conducted under 
                this section; and
                    ``(F) appropriate research, evaluation, and related 
                activities pertaining to the needs of such children and 
                to the provision of such support services to their 
                families that are needed to enable such children to 
                benefit from the project.
    ``(c) Additional Grants.--
            ``(1) The Secretary, in consultation with the Secretary of 
        the Interior, shall provide 5 grants to schools that are Bureau 
        funded schools for program research and development regarding, 
        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 interested in teaching 
                careers),
                    ``(C) students with special culturally related 
                academic needs, including social, lingual, and cultural 
                needs, and
                    ``(D) math and science education.
            ``(2) Applications for the grants provided under paragraph 
        (1) shall be submitted to the Secretary in such form and at 
        such time as the Secretary may prescribe. Applications for such 
        grants by Bureau schools, and the administration of any of such 
        grants made to a Bureau school, shall be undertaken jointly by 
        the supervisor of the Bureau school and the local school board.
            ``(3) Grants may be provided under paragraph (1) for one or 
        more activities described in paragraph (1).
            ``(4) In providing grants under paragraph (1), the 
        Secretary shall--
                    ``(A) achieve a mixture of programs described in 
                paragraph (1) which ensures that students at all grade 
                levels and in all geographic areas of the United States 
                are able to participate in some programs funded by 
                grants provided under this subsection, and
                    ``(B) ensure that a definition of the term `gifted 
                and talented student' for purposes of this section and 
                section 1128(c)(3)(A)(i) of the Education Amendments of 
                1978 is developed as soon as possible.
            ``(5) Subject to the availability of appropriated funds, 
        grants provided under paragraph (1) shall be made for a 3-year 
        period and may be renewed by the Secretary for additional 3-
        year periods if performance by the grantee is satisfactory to 
        the Secretary.
            ``(6)(A) The dissemination of any materials developed from 
        activities funded by grants provided under paragraph (1) shall 
        be carried out in cooperation with institutions receiving funds 
        under subsection (b).
            ``(B) The Secretary shall report to the Secretary of the 
        Interior and to the Congress any results from activities 
        described in paragraph (4)(B).
            ``(7)(A) The costs of evaluating any activities funded by 
        grants made under paragraph (1) shall be divided between the 
        school conducting such activities and the demonstration project 
        recipients under subsection (b).
            ``(B) If no funds are provided under subsection (b) for--
                    ``(i) the evaluation of activities funded by grants 
                made under paragraph (1),
                    ``(ii) technical assistance and coordination with 
                respect to such activities, or
                    ``(iii) dissemination of such evaluations,
        the Secretary shall, by grant or through contract, provide for 
        such evaluations, technical assistance, coordination, and 
        dissemination.
    ``(d) Information Network.--The Secretary shall encourage persons 
to whom a grant is made, or with whom a contract is entered into, under 
this section to work cooperatively as a national network so that the 
information developed by such persons is readily available to the 
entire educational community.

   ``PART C--SPECIAL PROGRAMS RELATING TO ADULT EDUCATION FOR INDIANS

``SEC. 6301. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT 
              INDIANS.

    ``(a) In General.--The Secretary shall carry out a program of 
awarding grants to State and local educational agencies and to Indian 
tribes, institutions, and organizations--
            ``(1) to support planning, pilot, and demonstration 
        projects which 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 which are designed to stimulate--
                    ``(A) the provision of basic literacy opportunities 
                to all nonliterate Indian adults, and
                    ``(B) the provision of opportunities to all Indian 
                adults to qualify for a high school equivalency 
                certificate 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 the literacy and high school equivalency goals;
            ``(4) to provide for basic surveys and evaluations to 
        define accurately the extent of the problems of illiteracy and 
        lack of high 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 which may offer educational 
        opportunities to Indian adults.
    ``(b) Educational Services.--The Secretary is authorized to make 
grants to Indian tribes, Indian institutions, and Indian organizations 
to develop and establish educational services and programs specifically 
designed to improve educational opportunities for Indian adults.
    ``(c) Information and Evaluation.--The Secretary is also authorized 
to make grants to, and to 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 thereof; and
            ``(2) the evaluation of federally assisted programs in 
        which Indian adults may participate to determine the 
        effectiveness of such programs in achieving the purposes of 
        such programs with respect to such adults.
    ``(d) Applications.--
            ``(1) Applications for a grant under this section shall be 
        submitted at such time, in such manner, contain such 
        information, and be consistent with such criteria, as may be 
        required under regulations prescribed by the Secretary. Such 
        applications shall--
                    ``(A) set forth a statement describing the 
                activities for which assistance is sought; and
                    ``(B) provide for an evaluation of the 
                effectiveness of the project in achieving its purposes 
                and the purposes of this section.
            ``(2) The Secretary shall not approve an application for a 
        grant under subsection (a) unless the Secretary is satisfied 
        that such application, and any documents submitted with respect 
        thereto, indicate that--
                    ``(A) there has been adequate participation by the 
                individuals to be served and tribal communities in the 
                planning and development of the project, and
                    ``(B) there will be such a participation in the 
                operation and evaluation of the project.
            ``(3) In approving applications under subsection (a), the 
        Secretary shall give priority to applications from Indian 
        educational agencies, organizations, and institutions.

           ``PART D--NATIONAL ACTIVITIES AND GRANTS TO STATES

``SEC. 6401. NATIONAL ACTIVITIES.

    ``(a) Authorized Activities.--From funds appropriated for any 
fiscal year to carry out this section, the Secretary may--
            ``(1) conduct research related to effective approaches to 
        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 consistent with the 
        purpose of this Act.
    ``(b) Eligibility.--The Secretary may carry out any of the 
activities described in subsection (a) directly or through grants to, 
or contracts or cooperative agreements with, Indian tribes, Indian 
organizations, State educational agencies, local educational agencies, 
institutions of higher education, including Indian institutions of 
higher education, and other public and private agencies and 
institutions.
    ``(c) Coordination.--Research activities supported under this 
section--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to assure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by the Office; and
            ``(2) may include collaborative research activities which 
        are jointly funded and carried out by the Office of Indian 
        Education and the Office of Educational Research and 
        Improvement.

``SEC. 6402. STATE EDUCATIONAL AGENCY REVIEW.

    ``(a) Before submitting its application to the Secretary, the local 
educational agency shall submit its application to the State 
educational agency.
    ``(b) The State education agency may send to the Secretary comments 
on each local educational agency application its reviews. The Secretary 
shall take such comments into consideration in reviewing such 
application.

                    ``PART E--FEDERAL ADMINISTRATION

``SEC. 6501. OFFICE OF INDIAN EDUCATION.

    ``(a) Office of Indian Education.--There shall be an Office of 
Indian Education (referred to in this section as `the Office') in the 
Department of Education.
    ``(b) Director.--(1) The Office shall be under the direction of the 
Director, who shall be appointed by the Secretary and who shall report 
directly to the Assistant Secretary for Elementary and Secondary 
Education.
    ``(2) The Director shall--
            ``(A) be responsible for administering this title;
            ``(B) be involved in, and be primarily responsible for, the 
        development of all policies affecting Indian children and 
        adults under programs administered by the Office of Elementary 
        and Secondary Education;
            ``(C) coordinate the development of policy and practice for 
        all programs in the Department relating to Indian persons; and
            ``(D) assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying research 
        priorities related to the education of Indian persons.
    ``(3) The Director of the Office shall be a member of the career 
Senior Executive Service.
    ``(c) Indian Preference in Employment.--(1) The Secretary shall 
give a preference to Indian persons in all personnel actions in the 
Office.
    ``(2) Such preference shall be implemented in the same fashion as 
the preference given to any veteran under section 2609 of the Revised 
Statutes, section 45 of title 25, United States Code.

``SEC. 6502. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

    ``(a) Membership.--There shall be 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 organizations; and
            ``(2) represent different geographic areas of the country.
    ``(b) Duties.--The Council shall--
            ``(1) advise the Secretary on the funding and 
        administration, including the development of regulations and of 
        administrative policies and practices, of any program, 
        including programs under this title, for which the Secretary is 
        responsible and in which Indian children or adults participate 
        or from which they can benefit;
            ``(2) make recommendations to the Secretary for filling the 
        Director's position whenever a vacancy occurs in such position; 
        and
            ``(3) submit to the Congress, by June 30 of each year, a 
        report on its activities, which shall include--
                    ``(A) any recommendations it finds appropriate for 
                the improvement of Federal education programs in which 
                Indian children or adults participate, or from which 
                they can benefit; and
                    ``(B) its recommendations with respect to the 
                funding of any such programs.

``SEC. 6503. PEER REVIEW.

    ``In reviewing applications under parts B, C, and D of this title, 
the Secretary may use a peer review process.

``SEC. 6504. PREFERENCE FOR INDIAN APPLICANTS.

    ``In making grants under parts B and C of this title, the Secretary 
shall give a preference to Indian tribes, Indian organizations, and 
Indian institutions of higher education under any program for which 
they are eligible to apply.

``SEC. 6505. MINIMUM GRANT CRITERIA.

    ``In making grants under parts B and C of this title, the Secretary 
shall approve only projects that are--
            ``(1) of sufficient size, scope, and quality to achieve the 
        purpose of the section under which assistance is sought; and
            ``(2) based on relevant research findings.

        ``PART F--DEFINITIONS; AUTHORIZATIONS OF APPROPRIATIONS

``SEC. 6601. DEFINITIONS.

    ``The following definitions apply to terms as used in this title:
            ``(1) The term `adult' means an individual who is either--
                    ``(A) not less than 16 years old; or
                    ``(B) beyond the age of compulsory school 
                attendance under State law.
            ``(2) The term `adult education' has the meaning given such 
        term in section 312(2) of the Adult Education Act.
            ``(3) The term `free public education' means education that 
        is--
                    ``(A) provided at public expense, under public 
                supervision and direction, and without tuition charge; 
                and
                    ``(B) provided as elementary or secondary education 
                in the applicable State or to preschool children.
            ``(4) 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) tribes and bands terminated since 
                        1940; and
                            ``(ii) tribes and bands recognized by the 
                        State in which they reside;
                    ``(B) a descendant, in the first or second degree, 
                of an individual described in subparagraph (A);
                    ``(C) considered by the Secretary of the Interior 
                to be an Indian for any purpose; or
                    ``(D) an Eskimo, Aleut, or other Alaska Native.

``SEC. 6602. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) Part A.--For the purpose of carrying out part A of this 
title, there are authorized to be appropriated $61,300,000 for fiscal 
year 1995 and such sums as may be necessary for each of the fiscal 
years 1996, 1997, 1998, and 1999.
    ``(b) Parts B Through D.--For the purpose of carrying out parts B, 
C, and D of this title, there are authorized to be appropriated 
$20,925,000 for fiscal year 1995 and such sums as may be necessary for 
each of the fiscal years 1996, 1997, 1998, and 1999.
    ``(c) Part E.--For the purpose of carrying out part E of this 
title, including section 6502, there are authorized to be appropriated 
$3,775,000 for fiscal year 1995 and such sums as may be necessary for 
each of the fiscal years 1996, 1997, 1998, and 1999.

               ``TITLE VII--BILINGUAL EDUCATION PROGRAMS

``SEC. 7001. SHORT TITLE.

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

``SEC. 7002. FINDINGS, POLICY, AND PURPOSE.

    ``(a) Findings.--The Congress finds that--
            ``(1) language-minority Americans constitute a large and 
        growing proportion of the Nation's population;
            ``(2) language-minority Americans speak virtually all world 
        languages plus many that are indigenous to the United States;
            ``(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, like 
        all other children and youth, have diverse educational needs 
        and strengths and therefore require access to all educational 
        programs and services;
            ``(6) the Federal Government has a responsibility for the 
        education of American Indians and a special obligation to 
        Native Alaskans, Native Hawaiians and native residents of the 
        territories and freely associated nations to redress the effect 
        of past Federal policies;
            ``(7) institutions of higher education can assist in 
        preparing teachers, administrators and other school personnel 
        to understand and build upon the educational strengths and 
        needs of language-minority and culturally diverse student 
        enrollments;
            ``(8) it is the purpose of this title to help ensure that 
        limited-English-proficient students master English and develop 
        high levels of academic attainment in content areas;
            ``(9) quality bilingual education programs enable children 
        and youth to learn English and meet high academic standards 
        including proficiency in more than one language;
            ``(10) as the world becomes increasingly interdependent and 
        as international communication becomes a daily occurrence in 
        government, business, commerce, and family life, multilingual 
        skills constitute an important national resource which deserves 
        protection and development;
            ``(11) educational technology has the potential for 
        improving the education of language-minority and limited-
        English-proficient students and their families, and the Federal 
        Government should foster this development;
            ``(12) research, development, implementation and 
        dissemination of effective bilingual education methods, 
        practices, and programs for limited-English- proficient 
        children are essential to systemwide school reform that 
        improves education for all children; and
            ``(13) a recognized means by which a child learns is 
        through the use of the child's native language, cultural 
        heritage, and instructional programs which use and build upon a 
        child's non-English native language and cultural heritage to 
        promote parent and community involvement in education, student 
        self-esteem, proficiency in English, and subject matter 
        achievement.
    ``(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 language minority 
and limited-English-proficient children and youth.
    ``(c) Purpose.--The purpose of this title is to educate language 
minority and 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 performance 
standards in academic areas by developing--
            ``(1) systemic improvement and reform of educational 
        programs serving language-minority and limited-English-
        proficient students through the development and implementation 
        of exemplary bilingual education programs and special 
        alternative instruction programs;
            ``(2) data collection and dissemination, research, 
        materials development, and technical assistance which is 
        focused on school improvement for language-minority and 
        limited-English-proficient students; and
            ``(3) programs which strengthen and improve the 
        professional training of educational personnel who work with 
        limited-English-proficient and language-minority students.

``SEC. 7003. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--For the purpose of carrying out the provisions 
of this title (except part F), 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 fiscal years 1996, 1997, 1998, and 1999.
    ``(b) Distribution.--From the sums appropriated under subsection 
(a) for any fiscal year, the Secretary shall reserve at least 25 
percent for part C of this title.

``SEC. 7004. DEFINITIONS; REGULATIONS.

    ``(a) General Rule.--For purposes of this title--
            ``(1) The term `native language', when used with reference 
        to an individual, means the language normally used by such 
        individuals, or, in the case of a child, the language normally 
        used by the parents of the child.
            ``(2) The term `language-minority' means--
                    ``(A) individuals whose native language is other 
                than English;
                    ``(B) individuals who usually speak a language 
                other than English or come from home environments where 
                a language other than English is usually spoken; or
                    ``(C) American Indians, Alaskan Natives, and Native 
                Hawaiians and native residents of the territories and 
                freely associated nations.
            ``(3) The term `limited-English-proficient' means a 
        language-minority person who has difficulty understanding, 
        speaking, reading, or writing the English language at a level 
        appropriate to his or her age and grade and is, thereby, 
        academically disadvantaged in programs conducted exclusively in 
        English.
            ``(4) The term `bilingual education' refers to educational 
        programs for limited-English-proficient students which make 
        instructional use of both English and a student's native 
        language. Programs of bilingual education must enable 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 national education goals. Bilingual education programs may 
        also develop the native language skills of limited-English-
        proficient students, or ancestral languages of American 
        Indians, Alaskan Natives, Native Hawaiians and native residents 
        of the territories and freely associated nations. English 
        proficient students may participate in bilingual education 
        programs if the programs are designed to enable all enrolled 
        students to become proficient in English and a second language.
            ``(5) The term `special alternative instructional program' 
        refers to educational programs for limited-English-proficient 
        students which utilize specially designed English language 
        curricula and services but do not use the student's native 
        language for instructional purposes. Special alternative 
        instructional programs must enable 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 national education 
        goals. Special alternative instructional programs are suitable 
        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.
            ``(6) The term `family education programs' refers to 
        bilingual education or special alternative instructional 
        programs designed to help limited-English-proficient adults and 
        out-of-school youths achieve proficiency in the English 
        language and to provide instruction on how parents and family 
        members can facilitate the educational achievement of their 
        children. When feasible, instructional programs such as the 
        model developed under the Even Start Literacy Programs that 
        promote adult literacy and train parents to support the 
        educational growth of their children shall be developed. 
        Programs shall give preference to participation by parents and 
        immediate family members of children attending school. Family 
        education programs may also provide instruction to facilitate 
        higher education and employment outcomes.
            ``(7) The term `institution of higher education' has the 
        meaning given such term in section 1201(a) of the Higher 
        Education Act of 1965.
            ``(8) The term `Office' means the Office of Bilingual 
        Education and Minority Languages Affairs.
            ``(9) The term `community college' has the meaning given 
        such term in section 1201(a) of the Higher Education Act of 
        1965 for an institution which provides not less than a 2-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.
            ``(10) The term `paraprofessional' means an individual who 
        is employed in preschool or elementary or secondary school 
        under the supervision of a certified or licensed teacher, 
        including individuals employed in bilingual education, special 
        education and migrant education.
            ``(11) The term `other programs for persons of limited-
        English-proficiency' means any programs administered by the 
        Secretary that serve persons of limited-English-proficiency.
            ``(12) The term `community-based organization' means a 
        private nonprofit organization 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. The term `community-based organization' includes 
        Native Hawaiian organizations (including Native Hawaiian 
        education organizations) as defined in section 4009 of Public 
        Law 100-297).
            ``(13) The term `children and youth' means individuals aged 
        3 through 21.
            ``(14) 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 1 or more schools in 
                any 1 or more States for more than 2 full academic 
                years.
    ``(b) 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.
    ``(c) Parental Notification.--Parents of children and youth 
participating in programs assisted under this title shall be informed 
of--
            ``(1) a student's level of English proficiency, how it 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;
            ``(2) 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 disabled 
        student, how the program meets the objectives of a student's 
        individualized education program;
            ``(3) 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--
                    ``(A) the benefits and nature of the bilingual 
                educational program and of the instructional 
                alternatives; and
                    ``(B) the reasons for the selection of their child 
                as being in need of bilingual education.
            ``(4)(A) Parents shall also be informed that they have the 
        option of declining enrollment of their children and youth in 
        such programs and shall be given an opportunity to do so if 
        they so choose.
            ``(B) Local educational agencies are not relieved of any of 
        their obligations under title VI of the Civil Rights Act of 
        1964 because parents choose not to enroll their children in 
        bilingual education programs.
            ``(5) Parents must receive, in a manner and form 
        understandable to them, including, if necessary and to the 
        extent feasible, in their native language, the information 
        required by this subsection. At a minimum, parents must 
        receive--
                    ``(A) timely information about projects funded 
                under this part; 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.
            ``(6) no action may involve the admission or exclusion of 
        students to or from any federally assisted education program 
        merely on the basis of the surnames or language-minority status 
        of such students.

``SEC. 7005. INDIAN AND ALASKAN NATIVE CHILDREN IN SCHOOLS.

    ``(a) Eligible Entities.--For the purpose of carrying out programs 
under this title for individuals served by elementary, secondary, or 
postsecondary schools operated predominately for Indian or Alaska 
Native children and youth, an Indian tribe, a tribally sanctioned 
educational authority, 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 title, 
subject to the following qualifications:
            ``(1) 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) 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; or
                    ``(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) Bureau of Indian Affairs Schools.--From the sums appropriated 
pursuant to section 7003, the Secretary is authorized to make payments 
to applicants to carry out programs of bilingual education or special 
alternative instruction for Indian children served by elementary and 
secondary schools operated or funded by the Bureau of Indian Affairs.
    ``(c) Annual Report.--(1) The Assistant Secretary of the Interior 
for the Bureau of Indian Affairs in collaboration with the Secretary 
shall submit to the Congress, the President, and the Secretary, by 
September 30 of each year, a report which provides--
            ``(A) an assessment of the educational outcomes and needs 
        of Indian children with respect to the purposes of this title 
        in schools operated or funded by the Department of the 
        Interior, including tribes and local educational agencies 
        receiving assistance under the Johnson-O'Malley Act and the 
        Native American Languages Act; and
            ``(B) an assessment of the extent to which such needs are 
        being met by funds provided to such schools for educational 
        purposes through the Secretary of the Interior.
    ``(2) The results presented in this report shall be included in the 
report under section 7401 of this Act.
    ``(3) The assessments required under this subsection shall be 
waived if such assessments duplicate similar assessment requirements 
under other Federal or tribal laws.

``SEC. 7006. RESIDENTS OF THE TERRITORIES AND FREELY ASSOCIATED 
              NATIONS.

    ``For the purpose of carrying out programs under this title in Guam 
and the freely associated nations, the term `local educational agency' 
shall include public institutions or agencies whose mission is the 
preservation and maintenance of native languages.

    ``PART A--BILINGUAL EDUCATION CAPACITY AND DEMONSTRATION GRANTS

``SEC. 7101. PURPOSE OF GRANTS.

    ``Grants under this part shall be used to develop the capacity of 
local educational agencies, institutions of higher education, and 
community-based organizations which provide educational programs to 
initiate, develop, enhance or improve bilingual education or special 
alternative instruction programs for children and youth of limited-
English-proficiency.

``SEC. 7102. 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, K-12 education, gifted and talented education, and 
vocational and applied technology education.
    ``(b) Program Authorized.--
            ``(1) The Secretary is authorized to make program 
        development and implementation grants of up to $100,000 
        annually for 3 years with 1 additional year upon the 
        Secretary's approval.
            ``(2) Grants approved under this section shall be used to 
        improve the education of limited-English-proficient students 
        and their families by--
                    ``(A) 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
                    ``(B) providing in service 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.
            ``(3) Grants approved 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 
                activities; and
                    ``(B) improving the instructional program for 
                limited-English-proficient students by upgrading 
                curriculum, instructional materials, and assessment 
                procedures and, if appropriate, applying educational 
                technology.
    ``(c) Eligible Entities.--A grant may be made under this section 
only upon application by one or more local educational agencies, 
applying alone or in collaboration with an institution of higher 
education, community-based organization or local or State educational 
agency. A grant may also be made under this section upon application by 
a community-based organization which is agreed to 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) Distribution.--The Secretary shall, to the extent 
practicable, award grants equally among early childhood education, 
elementary education, and secondary education programs.

``SEC. 7103. 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) The Secretary is authorized to make program 
        enhancement project grants of up to $100,000 for 2 years to 
        eligible applicants.
            ``(2) Grants approved under this section shall be used for 
        providing in-service 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.
            ``(3) Grants approved under this section may be used for--
                    ``(A) improving the instructional program for 
                limited-English-proficient students by upgrading 
                curriculum, instructional materials, and assessment 
                procedures and, if appropriate, applying educational 
                technology;
                    ``(B) implementing family education programs and 
                activities; and
                    ``(C) providing intensified instruction.
    ``(c) Eligible Entities.--A grant may be made under this section 
only upon application by one or more local educational agencies, 
applying alone or in collaboration with an institution of higher 
education, community-based organization or local or State educational 
agency. A grant also may be made under this section upon application by 
a community-based organization which is agreed to by the local 
educational agency to enhance early childhood education or family 
education programs or to conduct an instructional project which 
supplements the educational services provided by a local educational 
agency.

``SEC. 7104. WHOLE-SCHOOL PROGRAMS.

    ``(a) Purpose.--The purpose of this section is to provide financial 
assistance to eligible applicants to reform, restructure, and upgrade 
all relevant programs and operations within an individual school to 
fulfill the comprehensive educational needs of all of a school's 
limited-English-proficient students and their families.
    ``(b) Program Authorized.--
            ``(1) The Secretary is authorized to make 5-year grants of 
        up to $100,000 for the first year and up to $250,000 for each 
        of the subsequent 4 years to eligible applicants.
            ``(2) Grants approved under this section shall be used to 
        improve education of limited-English-proficient students and 
        their families by reviewing, restructuring, and upgrading in-
        service training for all school staff and, if appropriate, for 
        community-based organization personnel.
            ``(3) Grants approved under this section may be used to 
        improve the education of limited-English-proficient students 
        and their families by reviewing, restructuring, and upgrading--
                    ``(A) the school's instructional program for 
                limited-English-proficient students including 
                curriculum, instructional materials, and assessment 
                systems, and, if appropriate, the application of 
                educational technology;
                    ``(B) family education programs and activities; and
                    ``(C) intensified instruction.
            ``(4) During the first year of the grant, a priority is 
        established in use of funds for preparatory activities 
        including planning, training, curriculum development, and 
        materials acquisition or development.
    ``(c) Eligible Entities.--A grant may be made under this section 
only upon application by one or more local educational agencies, 
applying alone or in collaboration with an institution of higher 
education, community-based organizations or local or State educational 
agency.

``SEC. 7105. SYSTEM-WIDE IMPROVEMENT GRANTS.

    ``(a) Purpose.--The purpose of this section is to provide financial 
assistance to improve, reform, and upgrade relevant programs and 
operations with an entire local educational agency to fulfill the 
comprehensive educational needs of all the agency's limited-English-
proficient students and, to the extent feasible, their families.
    ``(b) Program Authorized.--
            ``(1) The Secretary is authorized to make 5-year grants of 
        up to $1,000,000 for the first year and up to $5,000,000 for 
        each of the subsequent 4 years to eligible applicants.
            ``(2) Grants approved under this section may be used during 
        the first 12 months exclusively for activities preparatory to 
        the delivery of services.
            ``(3) Grants approved under this section may be used to 
        improve 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) program delivery standards, management 
                information and accountability systems;
                    ``(F) instructional and extracurricular programs 
                and services; and
                    ``(G) application of educational technology.
    ``(c) Eligible Entities.--A grant may be made under this section 
only upon application by one or more local educational agencies, 
applying alone or in collaboration with an institution of higher 
education, community-based organization or local or State educational 
agency.
    ``(d) Priority.--The Secretary shall give priority to applications 
from--
            ``(1) applicants which enroll a large percentage or large 
        number of limited-English-proficient students; and
            ``(2) consortia of eligible applicants to serve limited-
        English-proficient students in rural and linguistically 
        isolated settings.

``SEC. 7106. APPLICATIONS.

    ``(a) Submission.--To receive a grant under this part, applicants 
shall submit an application to the Secretary in such form and 
containing such information as the Secretary may require:
            ``(1) An application for a grant under this part shall be 
        developed in consultation with, and shall provide for the 
        continuing involvement of, an advisory council which shall be 
        composed of representatives responsible for implementing grant 
        activities and of parents and other relatives of the children 
        to be served in such programs; parents shall comprise a 
        majority of all council members.
            ``(2) All applicants for grants under this part, except for 
        those applicants identified in section 7005, shall submit a 
        copy of the application to the relevant State educational 
        agency. The State educational agency may submit to the 
        Secretary written comments on the application with respect to 
        how the applications further State education improvement plans 
        including any developed under Goals 2000: Educate America Act 
        (if such plans exist) or title I of this Act. If the State 
        educational agency of a State submits written comments on any 
        application, it must submit written comment on all applications 
        within that same grant category from within that State. The 
        Secretary shall take comments into consideration when funding 
        applications under this part.
    ``(b) Required Documentation.--Such application shall include 
documentation that the applicant has the qualified personnel required 
to develop, administer, and implement the proposed program.
    ``(c) Contents.--(1) An application for a grant under this part 
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 district to be served and 
        their characteristics, such as language spoken, dropout rates, 
        proficiency in English and the native language, academic 
        standing in relation to their English proficient peers, and, 
        where applicable, the recency of immigration.
            ``(B) A description of the program to be implemented and 
        how its design--
                    ``(i) relates to the linguistic and academic needs 
                of the children and youth of limited-English-
                proficiency to be served;
                    ``(ii) is consistent with, and promotes the goals 
                in, the local educational agency plan under title III 
                of the Goals 2000: Educate America Act, if such plan 
                exists, and the local educational agency's plan under 
                title I of this Act, particularly as those plans relate 
                to the education of children and youth of limited-
                English-proficiency;
                    ``(iii) involves the parents of the children and 
                youth of limited-English-proficiency to be served;
                    ``(iv) ensures accountability in the expected 
                student outcomes; and
                    ``(v) promotes coordination of services for the 
                children and youth of limited-English-proficiency to be 
                served and their families.
            ``(C) A description, if appropriate, of the applicant's 
        collaborative activities with institutions of higher education, 
        community-based organizations, local or State educational 
        agencies, private schools, nonprofit organizations, or 
        businesses in carrying out the proposed program.
            ``(D) An assurance that the applicant will not reduce the 
        level of State and local funds that it expends for bilingual 
        education or special alternative instruction programs if it 
        receives an award under this part.
            ``(E) A budget for grant funds.
    ``(2) An application for a grant under section 7102 or 7104 shall 
also contain a description of the instructional program, student 
services, in-service training, and family education programs to be 
provided under the grant.
    ``(3) An application for a grant under section 7103 shall also 
contain the following:
            ``(A) A description of the existing bilingual education or 
        special alternative instruction program which the project is 
        designed to enhance.
            ``(B) A description of the proposed project activities.
    ``(4) An application for a grant under section 7105 shall also 
contain a description of the activities which would be carried out 
under the grant.
    ``(d) Approval of Applications.--An application for a grant under 
this part may be approved only if the Secretary determines that--
            ``(1) the program will use qualified personnel, including 
        those 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 that 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 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 title 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.
    ``(e) Special Consideration and Priorities.--
            ``(1) Students may participate in any program receiving 
        funds under this part for the duration of the program.
            ``(2) The Secretary shall give priority to applications 
        which provide for the development of bilingual proficiency for 
        all participating students.
            ``(3) Grants for special alternative instructional programs 
        shall not exceed 25 percent of the funds provided for any type 
        of grant under any section or of total funds provided under 
        this part.
            ``(4) Notwithstanding paragraph (3), the Secretary may 
        award grants for special alternative instructional programs if 
        an applicant has demonstrated that they 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 convincing efforts, 
                the applicant has not been able to hire instructional 
                personnel who are able to communicate in the students' 
                native language.
            ``(5) In approving applications under this part, 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 business.
            ``(6) The Secretary shall ensure that projects funded under 
        this part address the full needs of school systems of all sizes 
        and geographical areas, including rural schools.
            ``(7) The Secretary shall give priority to applications 
        providing training for personnel participating in or preparing 
        to participate in the program which will assist them in meeting 
        State and local certification requirements and that, to the 
        extent possible, college or university credit will be awarded 
        for such training.

``SEC. 7107. INTENSIFIED INSTRUCTION.

    ``In carrying out this part, 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. 7108. CAPACITY BUILDING.

    ``Each recipient of a grant under this part shall use its grant in 
ways that will build its 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. 7109. 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 non-profit 
organization, or a consortium of such entities to carry out an approved 
program, including a program to serve out-of-school youth.

``SEC. 7110. GEOGRAPHIC DISTRIBUTION OF FUNDS.

    ``To the extent possible, the Secretary shall award funds under 
this part throughout the Nation in a manner that reflects the 
geographic distribution of children and youth of limited-English-
proficiency.

``SEC. 7111. PROGRAMS IN PUERTO RICO.

    ``Programs authorized under this title in the Commonwealth of 
Puerto Rico may, notwithstanding any other provision of this title, 
include programs of instruction, teacher training, curriculum 
development, evaluation, and testing designed for children and youth of 
limited-Spanish proficiency.

``SEC. 7112. EVALUATIONS.

    ``(a) Evaluation.--Each recipient of funds under this part shall 
provide the Secretary with an evaluation, in the form prescribed by the 
Secretary, of its program every two years.
    ``(b) Use of Evaluation.--Such evaluation shall be used by a 
grantee--
            ``(1) for program improvement;
            ``(2) to further define the local program's goals and 
        objectives; and
            ``(3) to determine program effectiveness.
    ``(c) Evaluation Components.--Evaluations shall include--
            ``(1) student outcome indicators that measure progress 
        toward the performance standards set out in the State's plan, 
        either approved or being developed, under title III of the 
        Goals 2000: Educate America Act, or, if the State does not have 
        an approved plan under title III of the Goals 2000: Educate 
        America Act and is not developing such a plan, with the State 
        plan approved or being developed under section 1111 of this 
        Act, including data comparing children and youth of limited-
        English-proficiency with non-limited-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.

                  ``PART B--RESEARCH AND DISSEMINATION

``SEC. 7201. USE OF FUNDS.

    ``The Secretary is authorized to conduct data collection, 
dissemination, research, and evaluation activities through the Office 
of Bilingual Education and Minority Languages Affairs for the purpose 
of improving bilingual education and special alternative instruction 
programs for children and youth of limited-English-proficiency.

``SEC. 7202. RESEARCH.

    ``(a) Research Activities.--The Secretary shall support through 
competitive grants contracts and cooperative agreements to institutions 
of higher education, nonprofit and for-profit organizations, and local 
and State educational agencies, funds for research with 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.
    ``(b) Authorized Activities.--
            ``(1) The Secretary may conduct research activities that 
        include--
                    ``(A) identifying criteria for the establishment, 
                use and monitoring of local, State, or national 
                education goals, content, performance and delivery 
                standards, and assessments for all students that 
                provide for appropriate, valid, reliable, and fair 
                participation by limited-English-proficient and 
                language-minority students;
                    ``(B) identifying determinants of appropriate high 
                quality secondary school programs for limited-English-
                proficient students, and high quality curriculum-
                related instructional materials;
                    ``(C) identifying determinants of appropriate high 
                quality early childhood development programs for 
                limited-English-proficient children, including 
                families, and appropriate high quality materials;
                    ``(D) studies to identify models of effective 
                program coordination that support students while in 
                transition to English language classrooms that develop 
                and maintain high levels of proficiency in the native 
                languages and English;
                    ``(E) studies of effective curricula and 
                instructional strategies for the development and 
                maintenance of high levels of student proficiency in 
                both their native language and English, including the 
                role of family, community, and career contexts;
                    ``(F) identification of strategies for effective 
                participation by limited-English-proficient parents in 
                their children's education for attainment of 
                educational excellence;
                    ``(G) identifying methods of improving 
                classification, placement, and services to limited-
                English-proficient students including, but not limited 
                to their participation in early childhood development 
                programs, title I, special education, foreign language 
                education, and gifted and talented education;
                    ``(H) identification of methods for effective 
                delivery of bilingual education to rural schools and in 
                the less-commonly-taught languages using educational 
                technology and electronic communications networks;
                    ``(I) identification of trends in demand for 
                language skills and of career opportunities for 
                individuals with high levels of proficiency in English 
                and a second language; and
                    ``(J) establishing through the National Center for 
                Education Statistics and in consultation with the 
                Office of Bilingual Education and Minority Languages 
                Affairs, and 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.
    ``(c) Field-Initiated Research.--The Secretary shall reserve at 
least 5 percent of the funds available under this section for field-
initiated research by current or recent recipients of grants under 
parts A or C of this title. Research must be conducted by current grant 
recipients or by former recipients who have received such grants within 
the previous 5 years. Field-initiated 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 high school completion. Applicants may submit an 
application for field-initiated research at the same time as 
applications are submitted under part A or part C. The Secretary shall 
complete a review of such applications on a timely basis to allow 
research and program grants to proceed in coordination where 
appropriate.
    ``(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) Coordination.--Research activities supported under this 
section--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to ensure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by the Office; and
            ``(2) may include collaborative research activities which 
        are jointly funded and carried out by the Office of Bilingual 
        Education and Minority Language Affairs and the Office of 
        Educational Research and Improvement.
    ``(f) 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. 7203. 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 great promise of assisting children and youth 
of limited-English-proficiency to meet challenging State standards.
    ``(b) Applications.--(1) An entity desiring to receive an award 
under this section shall submit an application to the Secretary in such 
form, at such time, and containing such information and assurances as 
the Secretary may require.
    ``(2) 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 their activities with those carried out by comprehensive 
technical assistance centers under title II of this Act.

``SEC. 7204. 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 its approved plan under title III 
of the Goals 2000: Educate America Act, if such plan exists, or, if 
such plan does not exist, its plan under title I of this Act, 
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 be less than $100,000 nor greater than 5 
percent of the total amount awarded to local educational agencies 
within the State under part A of this title for the previous fiscal 
year.
    ``(c) Use of Funds.--(1) A State educational agency shall use funds 
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 language-minority and 
        limited-English-proficient populations and the educational 
        programs and services available to these populations.
    ``(2) Exception.--States which do not, as of the date of enactment 
of this Act, have in place a system for collecting such data for all 
students in such State, are not required to meet the requirement of 
this section as it pertains to the educational programs and services 
available to limited-English-proficient students. 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 is 
required to comply with this requirement.
    ``(3) The State educational agency may also use funds for the 
training of State educational agency personnel in educational issues 
affecting limited-English-proficient children and youth.
    ``(4) Recipients of awards 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 funds are used in a manner consistent 
with the requirements of this title.
    ``(e) Applications.--A State educational agency desiring to receive 
an award under this section shall submit an application to the 
Secretary in such form, at such time, 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 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 grants under this section shall provide for the annual 
submission of a summary report to the Secretary containing information 
on such matters as the Secretary shall, by regulation, determine 
necessary and proper to achieve the purposes of this title, including 
information on State capacity and progress in meeting the education 
needs of all limited-English-proficient children, plans for additional 
action, the effect of standards and assessments in improving their 
education. Such reports shall be in such form and shall be submitted on 
such date as the Secretary shall specify by regulation.

``SEC. 7205. 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 
        ERIC 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; and
            ``(3) develop a data base management and monitoring system 
        for improving the operation and effectiveness of funded 
        programs.

``SEC. 7206. INSTRUCTIONAL MATERIALS DEVELOPMENT.

    ``The Secretary may provide grants for the development, publication 
and dissemination of high quality instructional materials in Native 
American, Native Hawaiian and other languages 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, its territories, and freely associated nations. 
The Secretary shall also accord priority to applications which provide 
for developing and evaluating materials in collaboration with 
activities under parts A and C of this title and which are consistent 
with national and State content standards.

``SEC. 7207. EVALUATION ASSISTANCE CENTERS AND MULTIFUNCTIONAL RESOURCE 
              CENTERS.

    ``(a) Transition.--The Secretary shall extend grants or contracts 
for Evaluation Assistance Centers and Multifunctional Resource Centers 
that are in effect on the date of enactment of the Improving America's 
School Act through fiscal year 1996.
    ``(b) Continuity of Services.--(1) The Secretary shall ensure that 
the comprehensive regional technical assistance centers authorized 
under title II of this Act provide services which are at least equal in 
volume, scope, and quality to those provided by Evaluation Assistance 
Centers and Multifunctional Resource Centers.
    ``(2) The Secretary shall ensure that the comprehensive regional 
technical assistance centers authorized under title II of this Act, as 
amended by the Improving America's School Act, provide services which 
enable children and youth of limited-English-proficiency to meet 
challenging State and National standards.
    ``(3) The Secretary shall ensure that the comprehensive technical 
assistance centers authorized under title II of this Act are 
established with consideration given to the geographic and linguistic 
distribution of children and youth of limited-English-proficiency.
    ``(c) Gifts, Bequests, and Devises.--The entities may accept (but 
not solicit), use, and dispose of gifts, bequests, or devises of 
services or property, both real and personal for the purpose of aiding 
or facilitating the work of entities under this section. Gifts, 
bequests, or devises of money and proceeds from sales of other property 
received as gifts, bequests or devises shall be deposited in the 
Treasury and shall be available for disbursement upon order of the 
national clearinghouse on bilingual education, the Evaluation and 
Assistance Center or Multifunctional Resource Center, respectively.

             ``PART C--BILINGUAL EDUCATION TEACHER TRAINING

``SEC. 7301. PURPOSE.

    ``The purpose of this part is to assist in preparing educators to 
improve the delivery of educational services to language-minority and 
limited-English-proficient children and youth. This part supports the 
training of all educational personnel to serve more effectively 
limited-English-proficient students. The goal of this part is to 
provide for the training of not less than 50,000 teachers who meet 
professional preparation and certification standards for bilingual 
education teachers by the year 2000.

``SEC. 7302. 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 and language-minority students 
into education personnel preparation programs for teachers, counselors, 
administrators and other education personnel.
    ``(b) Authorization.--The Secretary shall award grants for up to 5 
years 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, 
agencies, or organizations.
    ``(c) Permissible Activities.--Activities conducted under this 
section may include the development of training programs in 
collaboration with training under titles I and II of this Act, the Head 
Start Act, and other relevant programs.
    ``(d) Priority.--The Secretary shall give priority to applications 
from institutions of higher education which currently operate, with 
full-time tenured faculty, programs to prepare educators and 
administrators to work with language-minority and limited-English-
proficient students in bilingual education settings and from 
institutions of higher education which are attempting to start 
bilingual teacher training programs if such institutions demonstrate a 
significant commitment in financial and human resources, including cash 
and in-kind. The Secretary shall give special consideration to 
applications for such programs which provide training of secondary 
school teachers or early childhood development teachers. Such special 
consideration would not disallow the funding of applications for 
exemplary programs for the training of elementary school teachers.

``SEC. 7303. BILINGUAL EDUCATION TEACHERS AND PERSONNEL GRANTS.

    ``(a) Purpose.--The purpose of this section is to provide for 
degree programs to prepare new bilingual education teachers, 
administrators, counselors, and other educational personnel to meet 
high professional standards for bilingual education teachers and to 
increase the availability of educators to provide high quality 
education limited-English-proficient students.
    ``(b) Authorization.--The Secretary shall award grants for up to 5 
years to institutions of higher education in consortia with local or 
State educational agencies.

``SEC. 7304. BILINGUAL EDUCATION CAREER LADDER PROGRAM.

    ``(a) Purpose.--The purpose of this section is to upgrade the 
qualifications and skills of non-certified 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. Grants for programs under this section may also provide for 
collaborative programs operated by institutions of higher education and 
secondary schools which are designed to recruit and train secondary 
school students as bilingual education teachers and other educational 
personnel to serve limited-English-proficient students.
    ``(b) Authorization.--The Secretary shall award grants of up to 5 
years for bilingual education career ladder programs to institutions of 
higher education applying in consortia with local or State educational 
agencies; consortia may include community-based organizations or 
professional education organizations.
    ``(c) Activities.--Grants funded under this section may--
            ``(1) include the development of bilingual education career 
        ladder program curricula appropriate to the needs of the 
        consortium participants;
            ``(2) provide assistance for stipends and costs related to 
        tuition, fees and books for enrolling in courses required to 
        complete degree and certification requirements as bilingual 
        education teachers; and
            ``(3) include programs to introduce secondary school 
        students to careers in bilingual education teaching that are 
        coordinated with other activities under this program.
    ``(d) Special Consideration.--The Secretary shall give special 
consideration to applications under this section which provide for--
            ``(1) participant completion of baccalaureate and masters 
        degree teacher education programs, certification and may 
        include effective employment placement activities;
            ``(2) development of teacher proficiency in English and a 
        second language, including required demonstration of 
        proficiency in the instructional use of English and a second 
        language in classroom contexts;
            ``(3) coordination with Trio, the Teacher Corps, National 
        Community and Service Trust Act, Mini Corps, and other programs 
        for the recruitment and retention of bilingual students in 
        secondary and post-secondary programs to train as bilingual 
        educators; and
            ``(4) the applicant's contribution of additional student 
        financial aid to participating students.

``SEC. 7305. GRADUATE FELLOWSHIPS IN BILINGUAL EDUCATION PROGRAM.

    ``(a) Authorization.--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. For fiscal year 1994 not less than 500 
fellowships leading to a masters or doctorate degree shall be awarded 
under this section, rising each subsequent year of this authorization 
by not less than 50. The Secretary shall include information on the 
operation and the number of fellowships awarded under the fellowship 
program in the report required under section 7401 of this title.
    ``(b) Fellowship Requirements.--(1) 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 those authorized under this title, 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 title; or
            ``(B) repay such assistance.
    ``(2) 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) 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. 7306. APPLICATIONS.

    ``(a) In General.--Each applicant or consortium that desires to 
receive a grant under this part shall submit an application to the 
Secretary and the State educational agency or State board for higher 
education as appropriate, at such time and in such manner as the 
Secretary shall prescribe. The application shall demonstrate 
integration, where appropriate, with the State and local plans, if such 
plans exist, for serving limited-English-proficient students. The State 
and local educational agency, and where applicable the State board for 
higher education, may comment in writing on the application indicating 
how the application furthers State education reform activities, 
including the provision of appropriate high quality education to all 
language minority students. If the State educational agency or State 
Board for Higher Education submits comments on any application, it 
shall submit comments on all. The Secretary shall take any written 
comments that have been made into consideration when considering 
applications under this part.
    ``(b) Eligible Entities.--
            ``(1) A grant may be made under this part upon application 
        of an institution of higher education, applying individually or 
        jointly with one or more local educational agencies, nonprofit 
        organizations, or State educational agencies.
            ``(2) The Secretary shall provide for outreach and 
        technical assistance to institutions of higher education 
        eligible under title III of the Higher Education Act and 
        institutions of higher education that are operated or funded by 
        the Bureau of Indian Affairs to facilitate their participation 
        in activities under this part.
            ``(3) In making grants under this part, the Secretary 
        shall, consistent with subsection (d), ensure adequate 
        representation of Hispanic serving institutions that 
        demonstrate competence and experience in the programs and 
        activities authorized under this title and are otherwise 
        qualified.
    ``(c) Application Requirements for Bilingual Teacher Training 
Programs.--The application shall demonstrate integration, where 
appropriate, with the State plan, if one exists, for serving limited-
English-proficient students.
    ``(d) Preference in Assistance and Purpose of Training.--
            ``(1) In making a grant under this part the Secretary shall 
        give preference to programs which--
                    ``(A) include tenured faculty in bilingual 
                education;
                    ``(B) and for institutions of higher education 
                which are attempting to start bilingual teacher 
                training programs if such institutions demonstrate a 
                significant commitment in financial and human 
                resources, including cash and in-kind; and
                    ``(C) provide additional resources for such 
                training from other sources.
            ``(2) In making grants under sections 7302, 7303 and 7304, 
        the Secretary shall give special consideration to programs that 
        ensure that individuals completing such programs demonstrate 
        proficiency in English and a second language.

``SEC. 7307. PROGRAM REQUIREMENTS.

    ``Activities conducted under this part shall assist educational 
personnel in meeting State and local certification requirements for 
bilingual education and, wherever possible, shall award college or 
university credit.

``SEC. 7308. 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 
part.

``SEC. 7309. PROGRAM EVALUATIONS UNDER PART C.

    ``Each recipient of funds under part C of this title shall provide 
the Secretary with an evaluation of its program every two years. Such 
evaluation shall include data on--
            ``(1) post-program placement of persons trained;
            ``(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.

                        ``PART D--ADMINISTRATION

``SEC. 7401. OFFICE OF BILINGUAL EDUCATION AND MINORITY LANGUAGE 
              AFFAIRS.

    ``(a) Establishment.--There shall be, in the Department of 
Education, an Office of Bilingual Education and Minority Languages 
Affairs through which the Secretary shall carry out functions relating 
to bilingual education.
    ``(b) Director.--(1) The Office shall be headed by a Director of 
Bilingual Education and Minority Languages Affairs, appointed by the 
Secretary, to whom the Secretary shall delegate all delegable functions 
relating to bilingual education. The Director shall also be assigned 
responsibility for recommending improvements and providing technical 
assistance to other Federal programs serving language-minority and 
limited-English-proficient students and their families and for 
assisting the Assistant Secretary of the Office of Educational Research 
and Improvement in identifying research priorities which reflect the 
needs of language-minority and limited-English language proficient 
students.
    ``(2) The Office shall be organized as the Director determines to 
be appropriate in order to carry out such functions and 
responsibilities effectively.
    ``(3) The Secretary shall ensure that limited-English-proficient 
and language-minority students are included in ways that are valid, 
reliable and fair under all standards and assessment development 
conducted or funded by the Department.
    ``(c) Report.--The Director shall prepare and, not later than 
February 1 of every other year, shall submit to Congress, the 
President, the Governors, and the clearinghouse a report on--
            ``(1) the activities carried out under this title and their 
        effectiveness 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 7204;
            ``(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.
    ``(d) Assessment of Gateway Education.--The Secretary shall prepare 
a report on the education of all students who reside near the United 
States border with Canada and Mexico or areas or communities which 
serve as a gateway for immigrants to the United States. Gateway 
communities shall include Hawaii, the Commonwealth of Puerto Rico, as 
well as the territories and freely associated nations. The report shall 
identify trends in student and out-of-school youth immigration trends, 
appropriate procedures for the international transfer of records, the 
language proficiency of students living in border and gateway areas, 
and opportunities for teacher exchange. Such efforts shall be 
coordinated with other ongoing efforts in this area. A preliminary 
report on these issues shall be provided to the Congress not later than 
2 years after the enactment of this Act. The final report including 
policy proposals for improvements in these areas shall be provided to 
Congress and the President not later than October 21, 1997.
    ``(e) 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 of Education and other agencies. The Secretary shall 
consult with the Secretary of Labor, the Secretary of Health and Human 
Services, the Secretary of Agriculture, Attorney General and 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 Office 
and relevant programs operated by the Department, including title I and 
other programs in 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. In no case shall such 
coordination at the local, State or Federal level permit funds under 
this title to be used in programs that do not provide bilingual 
education or special alternative instructional programs for the 
instruction of language-minority or limited-English-proficient 
students.
    ``(f) The Secretary shall, to the extent feasible, ensure that all 
data collected shall include for the collection and reporting of data 
on limited-English-proficient students in all Departmental data keeping 
and with respect to all Federal education programs.
    ``(g) Staffing Requirements.--The Secretary shall ensure that the 
Office of Bilingual Education and Minority Language Affairs is staffed 
with sufficient personnel trained or with experience in bilingual 
education to discharge effectively the provisions of this title.
            ``(1) Notwithstanding section 403 of the Department of 
        Education Organization Act, the Assistant Secretary may appoint 
        not more than 7 additional employees to serve as staff without 
        regard to the provisions of title 5, United States Code, 
        governing appointments in the competitive service.
            ``(2) The employees appointed under paragraph (1) may be 
        paid without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of that title relating to 
        classification and General Schedule pay rates, but shall not be 
        paid a rate that exceeds the minimum rate of basic pay payable 
        for GS-15 of the General Schedule.
    ``(h) Reading Applications.--For the purpose of reading 
applications for competitive grants authorized under this title, the 
Secretary shall use persons who are not employees of the Federal 
Government and who are experienced and involved in bilingual education 
including teachers, researchers, and administrators of educational 
programs similar to those assisted under this title. Readers of 
applications for grants involving conservation of Indian languages and 
other indigenous language which are subject to loss shall include 
individuals with expertise in such programs. The Secretary shall 
solicit nominations for application readers from State directors of 
bilingual education, graduate programs of bilingual education, tribal 
organizations and professional associations and shall have readers 
serve for a period of 3 years.
    ``(i) Publication of Proposals.--The Secretary shall publish and 
disseminate all requests for proposals for programs funded under this 
title.

``SEC. 7402. RELEASE TIME.

    ``Professional development programs funded under this Act shall 
permit use of funds for professional release time to enable 
participation in programs assisted under this part.

``SEC. 7403. EDUCATION TECHNOLOGY.

    ``Funds available under this Act 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. 7404. NOTIFICATION.

    ``The State educational agency, when applicable, the State Board 
for postsecondary education, when applicable, the clearinghouse, the 
applicable Evaluation and Assistance Center and Multifunctional 
Resource Center shall be notified within three working days of the date 
a grant is made to an eligible entity within the State.

``SEC. 7405. 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.

``SEC. 7406. LIMITATION OF AUTHORITY.

    ``The Secretary shall not impose restrictions on the availability 
of funds authorized under this title other than those set out in this 
title or other applicable Federal statutes and regulations.

                          ``PART E--TRANSITION

``SEC. 7501. TRANSITION PROVISIONS.

    ``Any grant or contract awarded under this title prior to the date 
of the enactment of the Improving America's Schools Act of 1994 shall 
be allowed to continue the term of the original award in accordance 
with the conditions of the original award but not for a period in 
excess of 3 years from the date of the grant or contract.

            ``PART F--EMERGENCY IMMIGRANT EDUCATION PROGRAM

``SEC. 7601. 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. 7602. STATE ADMINISTRATIVE COSTS.

    ``For any fiscal year, a State educational agency may reserve up to 
1.5 percent of the amount allocated to it under section 7604 to pay the 
costs of performing its administrative functions under this part.

``SEC. 7603. WITHHOLDING.

    ``Whenever the Secretary, after 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. 7604. 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 7601.
    ``(b) Allocations.--(1) Except as provided in subsections (c) and 
(d) of this section, of the amount appropriated for each fiscal year 
for this part, each State participating in this program shall receive a 
share equal to the proportion of its number of immigrant children and 
youth who are enrolled in elementary and secondary public schools under 
the jurisdiction of each local educational agency described in 
paragraph (2) within that State, and in elementary and secondary 
nonpublic 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 this program.
    ``(2) 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 elementary or 
secondary public schools under the jurisdiction of such agencies, and 
in elementary or secondary nonpublic 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) 
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 estimate are clearly erroneous.
    ``(2) 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 agency 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 of 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) If appropriations under this part 
exceed $50,000,000 for a fiscal year, a State educational agency may 
reserve up to 20 percent of its payment for redistribution through 
competitive grants to local educational agencies within the State in 
the following manner:
            ``(A) At least one-half of such grants shall be made to 
        local educational agencies within the State with the highest 
        numbers and percentages of immigrant children and youth.
            ``(B) Remaining funds may be distributed to local 
        educational agencies within the State with a sudden influx of 
        immigrant children and youth which are otherwise not eligible 
        for assistance under this part.
    ``(2) Local educational agencies with the highest number of 
immigrant children and youth receiving additional funds under this 
subsection may make information available on serving immigrant children 
and youth to areas in the State with sparse numbers of such children.

``SEC. 7605. 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 7601 and 7607, 
        including a description of how local educational agencies 
        receiving funds under this part will use such funds to meet 
        such purposes, and how the program designs are consistent with 
        other education improvement plans, including any developed 
        under Goals 2000: Educate America Act, if such plan exists, or 
        title I;
            ``(3) provide an assurance that local educational agencies 
        receiving funds under this part will coordinate the use of such 
        funds with programs funded under other parts of this title or 
        title I of this Act;
            ``(4) provide assurances that such payments, with the 
        exception of payments reserved under section 7604(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 7604(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 functions under this part;
            ``(7) provide assurances--
                    ``(A) that to the extent consistent with the number 
                of immigrant children and youth enrolled in the 
                elementary or secondary nonpublic 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 these 
                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 and title 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 elementary or secondary nonpublic 
                school and of any religious organization; and such 
                employment or contract shall be under the control and 
                supervision of such public agency, and the funds 
                provided under this paragraph shall not be commingled 
                with State or local funds;
            ``(8) provide that funds reserved under subsection (e) of 
        section 7604 be awarded on the basis of merit and need 
        consistent 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 1121(b).
    ``(b) Application Review.--The Secretary shall review all 
applications submitted pursuant to this section by State educational 
agencies.
            ``(1) The Secretary shall approve any application submitted 
        by a State educational agency that meets the requirements of 
        this section.
            ``(2) 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 reasonable notice, provision of 
        technical assistance, and an opportunity for a hearing to the 
        State.

``SEC. 7606. PAYMENTS.

    ``(a) Amount.--The Secretary shall pay by not later than June 1 of 
each year to each State educational agency that has its application 
approved under section 7605 the amount of the State's allocation as 
determined under section 7604.
    ``(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 7605(a)(6), 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 to such children through arrangements which shall 
be subject to the requirements of this part. Such waivers shall be 
subject to consultation, withholding, notice, and judicial review 
requirements in accordance with the provisions of title I.

``SEC. 7607. 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; and
            ``(5) 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 non-
profit organizations to carry out the approved program.
    ``(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 non-profit organization, or a consortium of such entities 
to carry out an approved program, including a program to serve out-of-
school youth.

``SEC. 7608. 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 appropriate committees of the Congress 
concerning programs under this part.

``SEC. 7609. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out the provisions of this part, 
there are authorized to be appropriated $75,000,000 in fiscal year 
1995, and such sums as may be necessary for each of the fiscal years 
1996, 1997, 1998, and 1999.

                        ``TITLE VIII--IMPACT AID

``SEC. 8001. FINDINGS.

    ``The Congress finds that--
            ``(1) certain activities of the Federal Government place a 
        financial burden on the local educational agencies serving 
        areas where such activities are carried out; and
            ``(2) it is the shared responsibility of the Federal 
        Government, the States, and local educational agencies to 
        provide for the education of children connected to those 
        activities.

``SEC. 8002. PURPOSE.

    ``In order to fulfill the Federal responsibility to assist with the 
provision of educational services to federally connected children, and 
to help them meet challenging State standards, it is the purpose of 
this title to provide financial assistance to local educational 
agencies that--
            ``(1) experience a substantial and continuing financial 
        burden due to the acquisition of real property by the United 
        States;
            ``(2) educate children who reside on Federal property and 
        whose parents are employed on Federal property;
            ``(3) educate children of parents who are in the military 
        services and children who live in low-rent housing;
            ``(4) experience sudden and substantial increases in 
        enrollments because of military realignments; or
            ``(5) need special assistance with capital expenditures for 
        construction activities because of the enrollments of 
        substantial numbers of children who reside on Indian lands or 
        who are defined in sections 2 and 3 of the Act of September 23, 
        1950 (Public Law 815, 81st Congress; 20 U.S.C. 631 et seq.).

``SEC. 8003. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.

    ``(a) In General.--Where the Secretary, after consultation with any 
local educational agency and with the appropriate State educational 
agency, determines for a fiscal year ending prior to October 1, 1999--
            ``(1) that the United States owns Federal property in the 
        local educational agency, and that such property--
                    ``(A) has been acquired by the United States since 
                1938;
                    ``(B) was not acquired by exchange for other 
                Federal property in the local educational agency which 
                the United States owned before 1939; and
                    ``(C) had an assessed value (determined as of the 
                time or times when so acquired) aggregating 10 percent 
                or more of the assessed value of all real property in 
                the local educational agency (similarly determined as 
                of the time or times when such Federal property was so 
                acquired); and
            ``(2) that such agency is not being substantially 
        compensated for the loss in revenue resulting from such 
        ownership by increases in revenue accruing to the agency from 
        the conduct of Federal activities with respect to such Federal 
        property,
then such agency shall be paid the amount described in subsection (b).
    ``(b) Amount.--
            ``(1) In general.--(A) The amount that a local educational 
        agency shall be paid under subsection (a) for a fiscal year 
        shall be calculated in accordance with paragraph (2), except 
        that such amount shall be reduced by the Secretary by an amount 
        equal to the amount of revenue, if any, that such agency 
        received from activities conducted on such property during the 
        previous fiscal year.
            ``(B) If funds appropriated under section 8013(a) are 
        insufficient to pay the amount determined under subparagraph 
        (A), the Secretary shall ratably reduce the payment to each 
        eligible local educational agency.
            ``(C) Notwithstanding any other provision of this 
        subsection, a local educational agency may not be paid an 
        amount under this section which exceeds the difference of--
                    ``(i) the maximum amount that such agency is 
                eligible to receive for such fiscal year under section 
                8004(b)(1)(C); and
                    ``(ii) the amount that such agency receives in such 
                fiscal year under section 8004(b)(2).
            ``(2) Application of current levied real property tax 
        rate.--In calculating the amount that a local educational 
        agency shall be paid for a fiscal year, the Secretary shall 
        apply the current levied real property tax rate for current 
        expenditures levied by fiscally independent local educational 
        agencies or imputed, for fiscally dependent local educational 
        agencies, to the current annually determined aggregate assessed 
        value of such acquired Federal property.
            ``(3) Determination of aggregate assessed value.--Such 
        aggregate assessed value of such acquired Federal property 
        shall be determined (on the basis of the highest and best use 
        of property adjacent to such acquired Federal property as of 
        the time such value is determined), and provided to the 
        Secretary, by the local official responsible for assessing the 
        value of real property located in the jurisdiction of such 
        local educational agency for the purpose of levying a property 
        tax.
    ``(c) Applicability to Tennessee Valley Authority Act.--For the 
purposes of this section, any real property with respect to which 
payments are being made under section 13 of the Tennessee Valley 
Authority Act of 1933 shall not be regarded as Federal property.
    ``(d) Ownership by United States.--The United States shall be 
deemed to own Federal property for the purposes of this Act, where--
            ``(1) prior to the transfer of Federal property, the United 
        States owned Federal property meeting the requirements of 
        subparagraphs (A), (B), and (C) of subsection (a)(1); and
            ``(2) the United States transfers a portion of the property 
        referred to in paragraph (1) to another nontaxable entity, and 
        the United States--
                    ``(A) restricts some or any construction on such 
                property;
                    ``(B) requires that the property be used in 
                perpetuity for the public purposes for which it was 
                conveyed;
                    ``(C) requires the grantee of the property to 
                report to the Federal government (or its agent) 
                containing information on the use of the property;
                    ``(D) except with the approval of the Federal 
                government (or its agent), prohibits the sale, lease, 
                assignment, or other disposal of the property unless 
                such sale, lease, assignment, or other disposal is to 
                another eligible government agency; and
                    ``(E) reserves to the Federal government a right of 
                reversion at any time the Federal government (or its 
                agent) deems it necessary for the national defense.
    ``(e) School District Containing Forest Service Land and Serving 
Certain Counties.--Beginning with fiscal year 1995, a school district 
shall be deemed to meet the requirements of subsection (a)(1)(C) if 
such school district meets the following requirements:
            ``(1) The school district contains between 50,000 and 
        55,000 acres of land that has been acquired by the Forest 
        Service of the Department of Agriculture between 1915 and 1990, 
        as demonstrated by written evidence from the Forest Service 
        satisfactory to the Secretary.
            ``(2) The school district serves a county chartered by 
        State law in 1875.

``SEC. 8004. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    ``(a) Computation of Payment.--
            ``(1) In general.--For the purpose of computing the amount 
        that a local educational agency is eligible to receive under 
        subsection (b), (d), or (f) for any fiscal year, the Secretary 
        shall determine the number of children who were in average 
        daily attendance in the schools of such agency, and for whom 
        such agency provided free public education, during the 
        preceding school year and who, while in attendance at such 
        schools--
                    ``(A) resided on Federal property with a parent 
                employed on Federal property situated in whole or in 
                part within the boundaries of the school district of 
                such agency;
                    ``(B) resided on Federal property and had a parent 
                on active duty in the uniformed services (as defined in 
                section 101 of title 37, United States Code);
                    ``(C) resided on Indian lands;
                    ``(D) had a parent on active duty in the uniformed 
                services (as defined by section 101 of title 37, United 
                States Code) but did not reside on Federal property; or
                    ``(E) resided in low-rent housing.
            ``(2) Determination of weighted student units.--For 
        purposes of computing the basic support payment under 
        subsection (b), the Secretary shall calculate the total number 
        of weighted student units for a local educational agency by 
        adding together the results obtained by the following 
        computations:
                    ``(A) Multiply the number of children described in 
                subparagraphs (A) and (B) of paragraph (1) by a factor 
                of 1.0.
                    ``(B) Multiply the number of children described in 
                paragraph (1)(C) by a factor of 1.25.
                    ``(C) Multiply the number of children described in 
                subparagraphs (A) and (B) of paragraph (1) by a factor 
                of .35 if the local educational agency has--
                            ``(i) a number of such children described 
                        in such subparagraphs which exceeds 6,500; and
                            ``(ii) an average daily attendance for all 
                        children which exceeds 100,000.
                    ``(D) Multiply the number of children described in 
                subparagraphs (D) and (E) of paragraph (1) by a factor 
                of .20.
    ``(b) Basic Support Payments and Payments With Respect to Fiscal 
Years in Which Insufficient Funds Are Appropriated.--
            ``(1) Basic support payments.--
                    ``(A) In general.--From the amount appropriated 
                under section 8013(b) for a fiscal year, the Secretary 
                is authorized to make basic support payments to 
                eligible local educational agencies with children 
                described under subsection (a).
                    ``(B) Eligibility.--A local educational agency 
                shall be entitled to receive a basic support payment 
                under subparagraph (A) for a fiscal year with respect 
                to a number of children determined under subsection (a) 
                only if the number of children so determined with 
                respect to such agency amounts to the lesser of--
                            ``(i) at least 400 such children, or
                            ``(ii) a number of such children which 
                        equals at least 3 percent of the total number 
                        of children who were in average daily 
                        attendance, during such year, at the schools of 
                        such agency and for whom such agency provided 
                        free public education.
                    ``(C) Maximum amount.--The maximum amount that a 
                local educational agency is eligible to receive under 
                this subsection for any fiscal year is the sum of the 
                total weighted student units, as computed under 
                subsection (a)(2), multiplied by--
                            ``(i) the greater of--
                                    ``(I) one-half of the average per 
                                pupil expenditure of the State in which 
                                the local educational agency is located 
                                for the 3rd preceding fiscal year, or
                                    ``(II) one-half of the average per 
                                pupil expenditure of all of the States 
                                for the 3rd preceding fiscal year;
                            ``(ii) the comparable local contribution 
                        rate certified by the State, as determined 
                        under regulations prescribed to carry out the 
                        Act of September 30, 1950 (Public Law 874, 81st 
                        Congress), as in effect on January 1, 1994; or
                            ``(iii) the average per pupil expenditure 
                        of the State in which the local educational 
                        agency is located, multiplied by the local 
                        contribution percentage.
            ``(2) Payments with respect to fiscal years in which 
        insufficient funds are appropriated.--
                    ``(A) In general.--For any fiscal year in which the 
                sums appropriated under section 8013(b) are 
                insufficient to pay to each local educational agency 
                the full amount computed under paragraph (1), the 
                Secretary shall make payments based upon the provisions 
                of this paragraph.
                    ``(B) Learning opportunity threshold payments.--(i) 
                For fiscal years described in subparagraph (A), the 
                Secretary shall compute a learning opportunity 
                threshold payment (hereinafter `threshold payment') by 
                multiplying the amount obtained under paragraph (1)(C) 
                by the total percentage obtained by adding--
                            ``(I) the percentage of federally connected 
                        children for each local educational agency 
                        determined by calculating the fraction, the 
                        numerator of which is the total number of 
                        children described under subsection (a)(1) and 
                        the denominator of which is the total number of 
                        children in average daily attendance at the 
                        schools served by such agency; and
                            ``(II) the percentage that funds under this 
                        paragraph represent of the total budget of the 
                        local educational agency, determined by 
                        calculating the fraction, the numerator of 
                        which is the total amount of funds calculated 
                        for each educational agency under this 
                        paragraph (not including amounts received under 
                        subsection (f)), and the denominator of which 
                        is the total current expenditures for such 
                        agency.
                    ``(ii) Such total percentage used to calculate 
                threshold payments under paragraph (1) shall not exceed 
                100.
                    ``(C) Ratable distribution.--For fiscal years 
                described in subparagraph (A), the Secretary shall make 
                payments as a ratable distribution based upon the 
                computation made under subparagraph (B).
    ``(c) Prior Year Data.--All calculations under this section shall 
be based upon data for each local educational agency from the fiscal 
year preceding the fiscal year for which the agency is making 
application for payment.
    ``(d) Use of Funds for Children With Disabilities.--
            ``(1) In general.--From the amount appropriated under 
        section 8013(c) for a fiscal year, the Secretary shall pay to 
        each eligible local educational agency, on a pro rata basis, 
        the amounts determined by--
                    ``(A) multiplying the number of children described 
                in subparagraphs (B) and (C) of subsection (a)(1) who 
                are eligible to receive services under the Individuals 
                with Disabilities Education Act (20 U.S.C. 1400 et 
                seq.) by a factor of 1.0; and
                    ``(B) multiplying the number of children described 
                in subparagraph (D) of subsection (a)(1) who are 
                eligible to receive services under such Act by a factor 
                of .5.
            ``(2) Use of funds.--A local educational agency that 
        receives funds under paragraph (1) shall use such funds to 
        provide a free appropriate public education to children 
        described in paragraph (1) in accordance with the Individuals 
        with Disabilities Education Act.
    ``(e) Hold-Harmless Amounts.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, the total amount that the Secretary shall pay to 
        a local educational agency under subsections (b) and (f)--
                    ``(A) for fiscal year 1995, shall not be less than 
                80 percent of the payment such agency received for 
                fiscal year 1994 under section 3(a) of the Act of 
                September 30, 1950 (Public Law 81-874, 81st Congress), 
                as in effect for fiscal year 1994;
                    ``(B) for fiscal year 1996, shall not be less than 
                60 percent of such payment received for fiscal year 
                1994; and
                    ``(C) for fiscal year 1997, shall not be less than 
                40 percent of such payment received for fiscal year 
                1994.
            ``(2) Reduction in payments.--In order to make payments to 
        local educational agencies in accordance with paragraph (1), 
        the Secretary shall reduce payments to other local educational 
        agencies determined under subsection (b).
    ``(f) Additional Assistance for Heavily Impacted Local Educational 
Agencies.--
            ``(1) In general.--From amounts appropriated under section 
        8013(d) for a fiscal year, the Secretary shall provide 
        additional assistance to meet special circumstances relating to 
        the provision of education in local educational agencies 
        eligible to receive assistance under this section.
            ``(2) Eligibility.--A local educational agency shall be 
        eligible to receive additional assistance under this subsection 
        only if such agency--
                    ``(A)(i) has an enrollment of federally connected 
                children described in subsection (a)(1) which 
                constitutes at least 40 percent of the total student 
                enrollment of such agency; and
                    ``(ii) has a tax rate for general fund purposes 
                which is at least 95 percent of the average tax rate 
                for general fund purposes of comparable local 
                educational agencies in the State;
                    ``(B)(i) has an enrollment of federally connected 
                children described in subsection (a)(1) which 
                constitutes at least 35 percent of the total student 
                enrollment of such agency; and
                    ``(ii) has a tax rate for general fund purposes 
                which is at least 125 percent of the average tax rate 
                for general fund purposes of comparable local 
                educational agencies in the State; or
                    ``(C) is a local education agency whose boundaries 
                are the same as a Federal military installation or 
                includes Federal property under exclusive Federal 
                jurisdiction.
            ``(3) Maximum payments.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall determine the maximum amount that a 
                local educational agency may receive under this 
                subsection in accordance with the following 
                computations:
                            ``(i) The Secretary shall first determine 
                        the greater of--
                                    ``(I) the average per pupil 
                                expenditure of the State in which the 
                                local educational agency is located or 
                                the average per pupil expenditure of 
                                all the States;
                                    ``(II) the average per pupil 
                                expenditure of generally comparable 
                                school districts located in the State 
                                of the local educational agency, as 
                                defined by the Secretary in 
                                regulations; or
                                    ``(III) the average per pupil 
                                expenditure of three generally 
                                comparable school districts located in 
                                the State of the local educational 
                                agency, as defined by the Secretary in 
                                regulations.
                            ``(ii) The Secretary shall next subtract 
                        from the amount determined under clause (i) the 
                        average amount of State aid per pupil received 
                        by the local educational agency.
                            ``(iii) The Secretary shall next multiply 
                        the amount determined under clause (ii) by the 
                        sum of the total weighted units of the local 
                        educational agency, as computed under 
                        subsection (a)(2).
                            ``(iv) If the tax rate of the local 
                        educational agency is greater than 94 percent, 
                        but less than 100 percent, of the tax rate of 
                        comparable school districts, the Secretary 
                        shall next multiply the amount determined under 
                        clause (iii) by the percentage that the tax 
                        rate of the local educational agency is of--
                                    ``(I) the average tax rate of its 
                                generally comparable school districts; 
                                or
                                    ``(II) the average tax rate of all 
                                the school districts in the State in 
                                which the local educational agency is 
                                located.
                            ``(v) The Secretary shall next subtract the 
                        total amount of payments received by a local 
                        educational agency under subsections (b) and 
                        (d) for a fiscal year from the amount 
                        determined under clause (iii) or clause (iv), 
                        as the case may be.
                    ``(B) Special rule.--With respect to payments to 
                local educational agencies described in subparagraphs 
                (B) and (C) of paragraph (2), the maximum amount of 
                such payments shall be equal to the product of the 
                average per pupil expenditure of all the States 
                multiplied by .7, except that such amount may not 
                exceed 125 percent of the average per pupil expenditure 
                of all local educational agencies in the State.
            ``(4) Current year data.--The Secretary shall, for purposes 
        of providing assistance under this subsection, use--
                    ``(A) data from the fiscal year in which the local 
                educational agency is applying for assistance under 
                this subsection; or
                    ``(B) the most recent data available which is 
                adjusted to such fiscal year.
            ``(5) Reduction in payments.--If funds appropriated to 
        carry out this subsection are insufficient to pay in full the 
        amounts determined under paragraph (3), the Secretary shall 
        ratably reduce the payment to each eligible local educational 
        agency.

``SEC. 8005. POLICIES AND PROCEDURES RELATING TO CHILDREN RESIDING ON 
              INDIAN LANDS.

    ``(a) In General.--A local educational agency that claims children 
residing on Indian lands for the purpose of receiving funds under 
section 8004 shall establish policies and procedures to ensure that--
            ``(1) such children participate in programs and activities 
        supported by such funds on an equal basis with all other 
        children;
            ``(2) parents of such children and Indian tribes are 
        afforded an opportunity to present their views on such programs 
        and activities, including an opportunity to make 
        recommendations on the needs of those children and how they may 
        help those children realize the benefits of those programs and 
        activities;
            ``(3) parents and Indian tribes are consulted and involved 
        in planning and developing such programs and activities;
            ``(4) relevant applications, evaluations, and program plans 
        are disseminated to the parents and Indian tribes; and
            ``(5) parents and Indian tribes are afforded an opportunity 
        to present their views on the agency's general educational 
        program to such agency.
    ``(b) Records.--A local educational agency that claims children 
residing on Indian lands for the purpose of receiving funds under 
section 8004 shall maintain records demonstrating its compliance with 
requirements contained in subsection (a).
    ``(c) Waiver.--A local educational agency that claims children 
residing on Indian lands for the purpose of receiving funds under 
section 8004 is excused from the requirements contained in subsections 
(a) and (b) for any year with respect to any Indian tribe from which it 
has received a written statement that the agency need not comply with 
those subsections because the tribe is satisfied with the provision of 
educational services by such agency to such children.
    ``(d) Technical Assistance and Enforcement.--The Secretary shall--
            ``(1) provide technical assistance to local educational 
        agencies, parents, and Indian tribes to enable them to carry 
        out this section; and
            ``(2) enforce this section through such actions, which may 
        include the withholding of funds, as the Secretary determines 
        to be appropriate, after affording the affected local 
        educational agency, parents, and Indian tribe an opportunity to 
        present their views.

``SEC. 8006. APPLICATION FOR PAYMENTS UNDER SECTIONS 8003 AND 8004.

    ``(a) In General.--A local educational agency desiring to receive a 
payment under section 8003 or 8004 shall--
            ``(1) submit an application for such payment to the 
        Secretary; and
            ``(2) provide a copy of such application to the State 
        educational agency.
    ``(b) Contents.--Each such application shall be submitted in such 
form and manner, and shall contain such information, as the Secretary 
may require, including--
            ``(1) information to determine the eligibility of the local 
        educational agency for a payment and the amount of such 
        payment; and
            ``(2) where applicable, an assurance that such agency is in 
        compliance with section 8005 (relating to children residing on 
        Indian lands).
    ``(c) Deadline for Submission.--The Secretary shall establish 
deadlines for the submission of applications under this section.
    ``(d) Approval.--
            ``(1) In general.--The Secretary shall approve an 
        application submitted under this section that--
                    ``(A) is filed by the deadline established under 
                subsection (c); and
                    ``(B) otherwise meets the requirements of this 
                title.
            ``(2) Reduction in payment.--The Secretary shall approve an 
        application filed up to 60 days after a deadline established 
        under subsection (c) that otherwise meets the requirements of 
        this title, except that, notwithstanding section 8004(e), the 
        Secretary shall reduce the payment based on such late 
        application by 10 percent of the amount that would otherwise be 
        paid.
            ``(3) Late applications.--The Secretary shall not accept or 
        approve any application that is filed more than 60 days after a 
        deadline established under subsection (c).

``SEC. 8007. PAYMENTS FOR SUDDEN AND SUBSTANTIAL INCREASES IN 
              ATTENDANCE OF MILITARY DEPENDENTS.

    ``(a) Eligibility.--A local educational agency is eligible for a 
payment under this section if--
            ``(1) the number of children in average daily attendance 
        during the current school year is at least ten percent or 100 
        more than the number of children in average daily attendance in 
        the preceding school year; and
            ``(2) the number of children in average daily attendance 
        with a parent on active duty (as defined in section 101(18) of 
        title 37, United States Code) in the Armed Forces who are in 
        attendance at such agency because of the assignment of their 
        parent to a new duty station between July 1 and September 30, 
        inclusive, of the current year, as certified by an appropriate 
        local official of the Department of Defense, is at least ten 
        percent or 100 more than the number of children in average 
        daily attendance in the preceding school year.
    ``(b) Application.--A local educational agency that wishes to 
receive a payment under this section shall file an application with the 
Secretary by October 15 of the current school year, in such manner and 
containing such information as the Secretary may prescribe, including 
information demonstrating that it is eligible for such a payment.
    ``(c) Children To Be Counted.--For each eligible local educational 
agency that applies for a payment under this section, the Secretary 
shall determine the lesser of--
            ``(1) the increase in the number of children in average 
        daily attendance from the preceding year; and
            ``(2) the number of children described in subsection 
        (a)(2).
    ``(d) Payments.--From the amount appropriated for a fiscal year 
under section 8013(c), the Secretary shall pay each local educational 
agency with an approved application an amount, not to exceed $200 per 
eligible child, equal to--
            ``(1) the amount available to carry out this section, 
        including any funds carried over from prior years, divided by 
        the number of children determined under subsection (c) for all 
        such local educational agencies; multiplied by
            ``(2) the number of such children determined for that local 
        educational agency.
    ``(e) Notification Process.--
            ``(1) Establishment.--The Secretary shall endeavor to 
        establish, with the Secretary of Defense, a notification 
        process relating to the closure of Department of Defense 
        facilities, or the adjustment of personnel levels assigned to 
        such facilities, which may substantially affect the student 
        enrollment levels of local educational agencies which receive 
        or may receive payments under this title.
            ``(2) Information.--Such process shall provide timely 
        information regarding such closures and such adjustments--
                    ``(A) by the Secretary of Defense to the Secretary; 
                and
                    ``(B) by the Secretary to the affected local 
                educational agencies.

``SEC. 8008. FACILITIES.

    ``(a) Current Facilities.--From the amount appropriated for any 
fiscal year under section 8013(e), the Secretary may continue to 
provide assistance for school facilities that were supported by the 
Secretary under section 10 of the Act of September 23, 1950 (Public Law 
815, 81st Congress; 20 U.S.C. 640) as in effect prior to the date of 
the enactment of the Improving America's Schools Act of 1994.
    ``(b) Transfer of Facilities.--
            ``(1) In general.--The Secretary shall, as soon as 
        practicable, transfer to the appropriate local educational 
        agency or another appropriate entity all the right, title, and 
        interest of the United States in and to each facility provided 
        under section 10 of the Act of September 23, 1950 (Public Law 
        815, 81st Congress; 20 U.S.C. 640), or under section 204 or 310 
        of the Act of September 30, 1950 (Public Law 874, 81st 
        Congress), as in effect on January 1, 1958.
            ``(2) Other requirements.--Any such transfer shall be 
        without charge to such agency or entity, and prior to such 
        transfer, the transfer must be consented to by the local 
        education agency or other appropriate entity, and may be made 
        on such terms and conditions as the Secretary deems appropriate 
        to carry out the purposes of this Act.

``SEC. 8009. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.

    ``(a) General Prohibition.--Except as provided in subsection (b), a 
State may not--
            ``(1) consider payments under this title or under the Act 
        of September 30, 1950 (Public Law 874, 81st Congress) in 
        determining for any fiscal year--
                    ``(A) the eligibility of a local educational agency 
                for State aid for free public education; or
                    ``(B) the amount of such aid; or
            ``(2) make such aid available to local educational agencies 
        in a manner that results in less State aid to any local 
        educational agency that is eligible for such payment than it 
        would receive if it were not so eligible.
    ``(b) State Equalization Plans.--
            ``(1) In general.--A State may reduce State aid to a local 
        educational agency that receives a payment under sections 8003 
        and 8004(b) (except the amount calculated in excess of 1.0 
        under subparagraph (B) of subsection (a)(2)) or under the Act 
        of September 30, 1950 (Public Law 874, 81st Congress) as such 
        Act existed prior to the enactment of the Improving America's 
        Schools Act of 1994 (other than an increase in payments 
        described in paragraphs (2)(B), (2)(C), (2)(D), or (3)(B)(ii) 
        of section 3(d) of such Act of September 30, 1950) for any 
        fiscal year if the Secretary determines, and certifies under 
        subsection (c)(3)(A), that such State has in effect a program 
        of State aid that equalizes expenditures for free public 
        education among local educational agencies in such State.
            ``(2) Computation.--
                    ``(A) In general.--(i) For purposes of paragraph 
                (1), a program of State aid equalizes expenditures 
                among local educational agencies if, in the second 
                preceding fiscal year, the amount of per-pupil 
                expenditures made by, or per-pupil revenues available 
                to, the local educational agency in the State with the 
                highest such per-pupil expenditures or revenues did not 
                exceed the amount of such per-pupil expenditures made 
                by, or per-pupil revenues available to, the local 
                educational agency in the State with the lowest such 
                expenditures or revenues by more than 10 percent.
                    ``(ii) If a program of State aid uses a `weighted-
                pupil', `classroom', `instructional unit', or other 
                designated unit of need in determining allocations of 
                State aid in order to take account of special cost 
                differentials, the computation of per-pupil revenue or 
                current expenditures may be made on the basis of any 
                such unit of need.
                    ``(B) Other factors.--In making a determination 
                under this subsection, the Secretary shall--
                            ``(i) disregard local educational agencies 
                        with per-pupil expenditures or revenues above 
                        the 95th percentile or below the 5th percentile 
                        of such expenditures or revenues in the State; 
                        and
                            ``(ii) take into account the extent to 
                        which a program of State aid reflects the 
                        additional cost of providing free public 
                        education in particular types of local 
                        educational agencies, such as those that are 
                        geographically isolated, or to particular types 
                        of students, such as children with 
                        disabilities.
            ``(3) Exception.--Notwithstanding paragraph (2), if the 
        Secretary determines that the State has substantially revised 
        its program of State aid, the Secretary may certify such 
        program for any fiscal year only if--
                    ``(A) the Secretary determines, on the basis of 
                projected data, that the State's program will meet the 
                10 percent disparity standard described in paragraph 
                (2) in that fiscal year; and
                    ``(B) the State provides an assurance to the 
                Secretary that, if final data do not demonstrate that 
                the State's program met such standard for that year (or 
                that it met such standard with a greater percentage of 
                disparity than anticipated), the State will pay to each 
                affected local educational agency the amount by which 
                it reduced State aid to the local educational agency on 
                the basis of such certification, or a proportionate 
                share thereof, as the case may be.
    ``(c) Procedures For Review of State Equalization Plans.--
            ``(1) Written notice.--
                    ``(A) In general.--Any State that wishes to 
                consider payments described in subsection (b)(1) in 
                providing State aid to local educational agencies shall 
                submit to the Secretary, not later than 120 days before 
                the beginning of the State's fiscal year, a written 
                notice of its intention to do so.
                    ``(B) Contents.--Such notice shall be in the form 
                and contain the information the Secretary requires, 
                including evidence that the State has notified each 
                local educational agency in the State of its intention 
                to consider such payments in providing State aid.
            ``(2) Opportunity to present views.--Before making a 
        determination under subsection (b), the Secretary shall afford 
        the State, and local educational agencies in the State, an 
        opportunity to present their views.
            ``(3) Qualification procedures.--If the Secretary 
        determines that a program of State aid qualifies under 
        subsection (b), the Secretary shall--
                    ``(A) certify the program and so notify the State; 
                and
                    ``(B) afford an opportunity for a hearing, in 
                accordance with section 8011(a), to any local 
                educational agency adversely affected by such 
                certification.
            ``(4) Non-qualification procedures.--If the Secretary 
        determines that a program of State aid does not qualify under 
        subsection (b), the Secretary shall--
                    ``(A) so notify the State; and
                    ``(B) afford an opportunity for a hearing, in 
                accordance with section 8011(a), to the State, and to 
                any local educational agency adversely affected by such 
                determination.
    ``(d) Reductions of State Aid.--
            ``(1) In general.--A State whose program of State aid has 
        been certified by the Secretary under subsection (c)(3) may 
        reduce the amount of such aid provided to a local educational 
        agency that receives a payment under section 8003 and section 
        8004(b) by any amount up to--
                    ``(A) the amount of such payment (excluding amounts 
                provided under subsections (d) and (f) of section 8004 
                and the amount calculated in excess of 1.0 under 
                section 8004(a)(2)); multiplied by
                    ``(B) 100 percent minus the percentage of disparity 
                determined under subsection (b).
            ``(2) Prohibition.--A State may not make a reduction 
        described in paragraph (1) before its program of State aid has 
        been certified by the Secretary under subsection (c)(3).
    ``(e) Remedies for State Violations.--
            ``(1) In general.--The Secretary or any aggrieved local 
        educational agency may, without exhausting administrative 
        remedies, bring an action in a United States district court 
        against any State that violates subsection (a) or subsection 
        (d)(2) or fails to carry out an assurance provided under 
        subsection (b)(3)(B).
            ``(2) Immunity.--A State shall not be immune under the 
        eleventh amendment to the Constitution of the United States 
        from an action described in paragraph (1).
            ``(3) Relief.--The court shall grant such relief as it 
        determines is appropriate, which may include attorney's fees to 
        a prevailing local educational agency.

``SEC. 8010. FEDERAL ADMINISTRATION.

    ``(a) Payments in Whole Dollar Amounts--The Secretary shall round 
any payments under this title to the nearest whole dollar amount.
    ``(b) Other Agencies.--Each Federal agency administering Federal 
property on which children reside, and each agency principally 
responsible for an activity that may occasion assistance under this 
title, shall, to the maximum extent practicable, comply with requests 
of the Secretary for information the Secretary may require to carry out 
this title.

``SEC. 8011. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

    ``(a) Administrative Hearings.--A local educational agency and a 
State that is adversely affected by any action of the Secretary under 
this title shall be entitled to a hearing on such action in the same 
manner as if such agency were a person under chapter 5 of title 5, 
United States Code.
    ``(b) Judicial Review of Secretarial Action.--
            ``(1) In general.--A local educational agency or a State 
        aggrieved by the Secretary's final decision following an agency 
        proceeding under subsection (a) may, within 60 days after 
        receiving notice of such decision, file with the United States 
        court of appeals for the circuit in which such agency or State 
        is located a petition for review of that action. The clerk of 
        the court shall promptly transmit a copy of the petition to the 
        Secretary. The Secretary shall then file in the court the 
        record of the proceedings on which the Secretary's action was 
        based, as provided in section 2112 of title 28, United States 
        Code.
            ``(2) Findings of fact.--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. The Secretary 
        may thereupon 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.
            ``(3) Review.--The court shall have exclusive jurisdiction 
        to affirm the action of the Secretary or to set it 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.

``SEC. 8012. DEFINITIONS.

    ``For purposes of this title, the following definitions apply:
            ``(1) Armed forces.--The term `Armed Forces' means the 
        Army, Navy, Air Force, and Marine Corps.
            ``(2) Average per-pupil expenditure.--The term `average 
        per-pupil expenditure' means--
                    ``(A) the aggregate current expenditures of all 
                local educational agencies in the State; divided by
                    ``(B) the total number of children in average daily 
                attendance for whom such agencies provided free public 
                education.
            ``(3) Construction.--The term `construction' means--
                    ``(A) the preparation of drawings and 
                specifications for school facilities;
                    ``(B) erecting, building, acquiring, altering, 
                remodeling, repairing, or extending school facilities;
                    ``(C) inspecting and supervising the construction 
                of school facilities; and
                    ``(D) debt service for such activities.
            ``(4) Federal property.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) through (F), the term `Federal 
                property' means real property that is not subject to 
                taxation by any State or any political subdivision of a 
                State due to Federal agreement, law, or policy, and 
                that is--
                            ``(i) owned by the United States or leased 
                        by the United States from another entity;
                            ``(ii)(I) held in trust by the United 
                        States for individual Indians or Indian tribes;
                            ``(II) held by individual Indians or Indian 
                        tribes subject to restrictions on alienation 
                        imposed by the United States;
                            ``(III) conveyed at any time under the 
                        Alaska Native Claims Settlement Act (Public Law 
                        92-203, 43 U.S.C. 1601 et seq.) to a Native 
                        individual, Native group, or Village or 
                        Regional corporation;
                            ``(IV) public land owned by the United 
                        States that is designated for the sole use and 
                        benefit of individual Indians or Indian tribes; 
                        or
                            ``(V) used for low-rent housing, as 
                        otherwise described in this paragraph, that is 
                        located on land described in subclause (I), 
                        (II), (III), or (IV) of this clause or on land 
                        that met one of those descriptions immediately 
                        before its use for such housing;
                            ``(iii)(I) part of a low-rent housing 
                        project assisted under the United States 
                        Housing Act of 1937; or
                            ``(II) used to provide housing for homeless 
                        children at closed military installations 
                        pursuant to section 501 of the Stewart B. 
                        McKinney Homeless Assistance Act (42 U.S.C. 
                        11411); or
                            ``(iv) owned by a foreign government or by 
                        an international organization.
                    ``(B) Schools providing flight training to members 
                of air force.--The term `Federal property' includes, so 
                long as not subject to taxation by any State or any 
                political subdivision of a State, and whether or not 
                that tax exemption is due to Federal agreement, law, or 
                policy, any school providing flight training to members 
                of the Air Force under contract with the Air Force at 
                an airport owned by a State or political subdivision of 
                a State.
                    ``(C) Non-federal easements, leases, licenses, 
                permits, improvements, and certain other real 
                property.--The term `Federal property' includes, 
                whether or not subject to taxation by a State or a 
                political subdivision of a State--
                            ``(i) any non-Federal easement, lease, 
                        license, permit, or other such interest in 
                        Federal property as otherwise described in this 
                        paragraph, but not including any non-Federal 
                        fee-simple interest;
                            ``(ii) any improvement on Federal property 
                        as otherwise described in this paragraph; and
                            ``(iii) real property that, immediately 
                        before its sale or transfer to a non-Federal 
                        party, was owned by the United States and 
                        otherwise qualified as Federal property 
                        described in this paragraph, but only for one 
                        year beyond the end of the fiscal year of such 
                        sale or transfer.
                    ``(D) Certain postal service property and pipelines 
                and utility lines.--Notwithstanding any other provision 
                of this paragraph, the term `Federal property' does not 
                include--
                            ``(i) any real property under the 
                        jurisdiction of the United States Postal 
                        Service that is used primarily for the 
                        provision of postal services; or
                            ``(ii) pipelines and utility lines.
                    ``(E) Property with respect to which state or local 
                tax revenues may not be expended, allocated, or 
                available for free public education.--Notwithstanding 
                any other provision of this paragraph, `Federal 
                property' does not include any property on which 
                children reside that is otherwise described in this 
                paragraph if--
                            ``(i) no tax revenues of the State or of 
                        any political subdivision of the State may be 
                        expended for the free public education of 
                        children who reside on that Federal property; 
                        or
                            ``(ii) no tax revenues of the State are 
                        allocated or available for the free public 
                        education of such children.
                    ``(F) Certain property located in state of oklahoma 
                owned by indian housing authority for low-income 
                housing.--The term `Federal property' includes any real 
                property located in the State of Oklahoma that--
                            ``(i) is owned by an Indian housing 
                        authority and used for low-income housing 
                        (including housing assisted under the mutual 
                        help ownership opportunity program under 
                        section 202 of the United States Housing Act of 
                        1937); and
                            ``(ii) at any time--
                                    ``(I) was designated by treaty as 
                                tribal land; or
                                    ``(II) satisfied the definition of 
                                Federal property under section 
                                403(1)(A) of the Act of September 30, 
                                1950 (Public Law 874, 81st Congress).
            ``(5) Free public education.--The term `free public 
        education' means education that is provided--
                    ``(A) at public expense, under public supervision 
                and direction, and without tuition charge; and
                    ``(B) as elementary or secondary education, as 
                determined under State law, except that, 
                notwithstanding State law, such term--
                            ``(i) includes preschool education; and
                            ``(ii) does not include any education 
                        provided beyond grade 12.
            ``(6) Indian lands.--The term `Indian lands' means any 
        Federal property described in paragraph (4)(A)(ii) or (4)(F).
            ``(7) Local contribution percentage.--
                    ``(A) In general.--The term `local contribution 
                percentage' means the percentage of current 
                expenditures in the State derived from local and 
                intermediate sources, as reported to and verified by 
                the National Center for Education Statistics.
                    ``(B) Hawaii and district of columbia.--
                Notwithstanding subparagraph (A), the local 
                contribution percentage for Hawaii and for the District 
                of Columbia shall be the local contribution percentage 
                computed for the Nation as a whole.
            ``(8) Local educational agency.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `local educational agency'--
                            ``(i) means a board of education or other 
                        legally constituted local school authority 
                        having administrative control and direction of 
                        free public education in a county, township, 
                        independent school district, or other school 
                        district; and
                            ``(ii) includes any State agency that 
                        directly operates and maintains facilities for 
                        providing free public education.
                    ``(B) Exception.--The term `local educational 
                agency' does not include any agency or school authority 
                that the Secretary determines on a case-by-case basis--
                            ``(i) was constituted or reconstituted 
                        primarily for the purpose of receiving 
                        assistance under this title or the Act of 
                        September 30, 1950 (Public Law 874, 81st 
                        Congress) or increasing the amount of such 
                        assistance; or
                            ``(ii) is not constituted or reconstituted 
                        for legitimate educational purposes.
            ``(9) Low-rent housing.--The term `low-rent housing' means 
        housing located on property that is described paragraph 
        (4)(A)(iii).
            ``(10) Revenue derived from local sources.--The term 
        `revenue derived from local sources' means--
                    ``(A) revenue produced within the boundaries of a 
                local educational agency and available to such agency 
                for its use; or
                    ``(B) funds collected by another governmental unit, 
                but distributed back to a local educational agency in 
                the same proportion as it was collected as a local 
                revenue source.
            ``(11) School facilities.--The term `school facilities' 
        includes--
                    ``(A) classrooms and related facilities; and
                    ``(B) equipment, machinery, and utilities necessary 
                or appropriate for school purposes.

``SEC. 8013. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Payments for Federal Acquisition of Real Property.--For the 
purpose of making payments under section 8003, there are authorized to 
be appropriated $16,750,000 for fiscal year 1995 and such sums as may 
be necessary for each of the fiscal years 1996, 1997, 1998, and 1999.
    ``(b) Basic Payments.--For the purpose of making payments under 
section 8004(a), there are authorized to be appropriated $775,500,000 
for fiscal year 1995 and such sums as may be necessary for each of the 
fiscal years 1996, 1997, 1998, and 1999.
    ``(c) Payments for Children With Disabilities.--For the purpose of 
making payments under section 8004(d), there are authorized to be 
appropriated $45,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the fiscal years 1996, 1997, 1998, and 1999.
    ``(d) Payments for Heavily Impacted Local Educational Agencies.--
            ``(1) In general.--For the purpose of making payments under 
        section 8004(f), there are authorized to be appropriated 
        $42,000,000 for fiscal year 1995 and such sums as may be 
        necessary for each of the fiscal years 1996, 1997, 1998, and 
        1999.
            ``(2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations under paragraph (1) are 
        authorized to remain available until expended.
    ``(e) Payments for Increases in Military Children.--For the purpose 
of making payments under section 8007, there are authorized to be 
appropriated $2,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the fiscal years 1996, 1997, 1998, and 1999.
    ``(f) Facilities Maintenance.--For the purpose of making payments 
under section 8008, there are authorized to be appropriated $2,000,000 
for fiscal year 1995 and such sums as may be necessary for each of the 
fiscal years 1996, 1997, 1998, and 1999.

                     ``TITLE IX--GENERAL PROVISIONS

                         ``PART A--DEFINITIONS

``SEC. 9101. DEFINITIONS.

    ``Except as otherwise provided, for the purposes of this Act, the 
following terms have the following meanings:
            ``(1)(A) Except as provided otherwise by State law or this 
        paragraph, the term `average daily attendance' means--
                    ``(i) the aggregate number of days of attendance of 
                all students during a school year; divided by
                    ``(ii) the number of days school is in session 
                during such school year.
            ``(B) The Secretary shall permit the conversion of average 
        daily membership (or other similar data) to average daily 
        attendance for local educational agencies in States that 
        provide State aid to local educational agencies on the basis of 
        average daily membership or such other data.
            ``(C) If the local educational agency in which a child 
        resides makes a tuition or other payment for the free public 
        education of the child in a school located in another school 
        district, the Secretary shall, for purposes of this Act--
                    ``(i) consider the child to be in attendance at a 
                school of the agency making such payment; and
                    ``(ii) not consider the child to be in attendance 
                at a school of the agency receiving such payment.
            ``(D) If a local educational agency makes a tuition payment 
        to a private school or to a public school of another local 
        educational agency for a child with disabilities, as defined in 
        section 602(a)(1) of the Individuals with Disabilities 
        Education Act, the Secretary shall, for the purposes of this 
        Act, consider such child to be in attendance at a school of the 
        agency making such payment.
            ``(2) 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 preceding fiscal year (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 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) The term `child' means any person within the age 
        limits for which the applicable State provides free public 
        education.
            ``(4) The term `community-based organization' means a 
        private nonprofit organization 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) The term `consolidated State application' means an 
        application submitted by a State educational agency pursuant to 
        section 9302 of this Act.
            ``(6) The term `county' means one of those divisions of a 
        State used by the Secretary of Commerce in compiling and 
        reporting data regarding counties.
            ``(7) The term `covered program' means each of the programs 
        authorized by--
                    ``(A) part A of title I of this Act;
                    ``(B) part C of title I of this Act;
                    ``(C) part A of title II of this Act; and
                    ``(D) part A of title IV of this Act except section 
                4104.
            ``(8) The term `current expenditures' means expenditures 
        for free public education--
                    ``(A) including expenditures for administration, 
                instruction, attendance and health services, pupil 
                transportation services, operation and maintenance of 
                plant, fixed charges, and net expenditures to cover 
                deficits for food services and student body activities; 
                but
                    ``(B) not including expenditures for community 
                services, capital outlay, and debt service, or any 
                expenditures made from funds received under title I and 
                part A of title II of this Act.
            ``(9) The term `Department' means the Department of 
        Education.
            ``(10) The term `educational service agency' means regional 
        public multiservice agencies authorized by State statute to 
        develop, manage, and provide services and programs to local 
        educational agencies.
            ``(11) The term `elementary school' means a nonprofit 
        institutional day or residential school that provides 
        elementary education, as determined under State law.
            ``(12) The term `free public education' means education 
        that is provided--
                    ``(A) at public expense, under public supervision 
                and direction, and without tuition charge; and
                    ``(B) as elementary or secondary school education 
                as determined under applicable State law, except that 
                such term does not include any education provided 
                beyond grade 12.
            ``(13) The term `institution of higher education' has the 
        meaning given that term in section 1201(a) of the Higher 
        Education Act of 1965.
            ``(14)(A) The term `local educational agency' means a 
        public board of education or other public authority legally 
        constituted within a State for either administrative control or 
        direction of, or to perform a service function for, public 
        elementary or secondary schools in a city, county, township, 
        school district, or other political subdivision of a State, or 
        for such combination of school districts or counties as are 
        recognized in a State as an administrative agency for its 
        public elementary or secondary schools.
            ``(B) The term includes any other public institution or 
        agency having administrative control and direction of a public 
        elementary or secondary school.
            ``(15) The term `mentoring' means a program in which an 
        adult works with a child or youth on a 1-to-1 basis, 
        establishing a supportive relationship, providing academic 
        assistance, and exposing the child or youth to new experiences 
        that enhance the child or youth's ability to excel in school 
        and become a responsible citizen.
            ``(16) The term `other staff' means pupil services 
        personnel, librarians, career guidance and counseling 
        personnel, education aides, and other instructional and 
        administrative personnel.
            ``(17) The term `outlying area' means the Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, and Palau (until the effective date of the Compact of 
        Free Association with the Government of Palau).
            ``(18) The term `parent' includes a legal guardian or other 
        person standing in loco parentis.
            ``(19) The terms `pupil-services personnel' and `pupil 
        services' mean, respectively--
                    ``(A) school counselors, school social workers, 
                school psychologists, and other qualified professional 
                personnel involved in providing assessment, diagnosis, 
                counseling, educational, therapeutic, and other 
                necessary services as part of a comprehensive program 
                to meet student needs; and
                    ``(B) the services provided by such individuals.
            ``(20) The term `secondary school' means a nonprofit 
        institutional day or residential school that provides secondary 
        education, as determined under State law, except that it does 
        not include any education beyond grade 12.
            ``(21) The term `Secretary' means the Secretary of 
        Education.
            ``(22) The term `State' means each of the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, and each 
        of the outlying areas.
            ``(23) The term `State educational agency' means the agency 
        primarily responsible for the State supervision of public 
        elementary and secondary schools.

``SEC. 9102. APPLICABILITY OF THIS TITLE.

    ``Parts B through F of this title do not apply to title VIII of 
this Act.

``SEC. 9103. REFERENCES IN OTHER ACTS.

    ``References to section 1471 of this Act, as it existed prior to 
the enactment of the Improving America's Schools Act of 1994, shall be 
deemed to refer to this section.

``SEC. 9104. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED 
              SCHOOLS.

    ``For purposes of any competitive program under this Act, a 
consortia of schools operated by the Bureau of Indian Affairs, a school 
operated under a contract or grant with the Bureau of Indian Affairs in 
consortia with another contract or grant school or tribal or community 
organization, or a Bureau of Indian Affairs school in consortia with an 
institution of higher education, a contract or grant school and tribal 
or community organization shall be given the same consideration as a 
local educational agency. Such consortia shall apply through the Bureau 
of Indian Affairs which shall apply to the Department of Education on 
their behalf.

   ``PART B--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER FUNDS

``SEC. 9201. CONSOLIDATION OF STATE ADMINISTRATIVE FUNDS FOR ELEMENTARY 
              AND SECONDARY EDUCATION PROGRAMS.

    ``(a) Consolidation of Administrative Funds.--(1) A State 
educational agency may consolidate the amounts specifically made 
available to it 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) This section applies to title I of this Act and the covered 
programs specified in sections 9101(7)(C) and (D).
    ``(b) Use of Funds.--(1) 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) 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 such programs, such as--
            ``(A) the coordination of programs specified in subsection 
        (a)(2) with other Federal and non-Federal programs;
            ``(B) the establishment and operation of peer- review 
        mechanisms under this Act;
            ``(C) the administration of this title;
            ``(D) the dissemination of information regarding model 
        programs and practices; and
            ``(E) technical assistance under programs specified in 
        subsection (a)(2).
    ``(c) Records.--A State educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual program, to account for costs relating 
to the administration of programs included in the consolidation under 
subsection (a).
    ``(d) Review.--To determine the effectiveness of State 
administration under this section, the Secretary may periodically 
review the performance of State educational agencies in using 
consolidated administrative funds under this section and take such 
steps as the Secretary finds appropriate to ensure the effectiveness of 
such administration.
    ``(e) Unused Administrative Funds.--If a State educational agency 
does not use all of the funds available to it under this section for 
administration, it may use such funds during the applicable period of 
availability as funds available under one or more programs included in 
the consolidation under subsection (a).

``SEC. 9202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

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

``SEC. 9203. 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 that local educational agency under those 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 these 
consolidated funds for the administration of covered programs and for 
the purposes described in section 9201(b)(2).
    ``(e) Records.--A local educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual covered program, to account for costs 
relating to the administration of covered programs included in the 
consolidation.

``SEC. 9204. ADMINISTRATIVE FUNDS STUDY.

    ``(a) Study.--(1) The Secretary shall conduct a study of the use of 
funds under this Act for the administration, by State and local 
educational agencies, of covered programs, including the percentage of 
grant funds used for such purpose in covered programs.
    ``(2) Based on the results of such study, the Secretary shall 
develop a definition of what types of activities constitute the 
administration of programs under this Act by State and local 
educational agencies.
    ``(3) Based on the results of such study, the Secretary may publish 
regulations or guidelines regarding the use of funds for administration 
under those 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) Report.--The Secretary shall submit to the President and the 
appropriate committees of the Congress a report regarding the study 
conducted under this section within 30 days of its completion.

``SEC. 9205. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE INTERIOR 
              FUNDS.

    ``(a) General Authority.--(1) 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 VI 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)(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 funds under terms that the Secretary determines best meet the 
purposes of those programs.
    ``(B) The agreement shall--
            ``(i) set forth the plans of the Secretary of the Interior 
        for the use of the amount transferred, the steps to be taken to 
        achieve the National Education Goals, and performance measures 
        to assess program effectiveness, including measurable goals and 
        objectives; and
            ``(ii) be developed in consultation with Indian tribes.
    ``(b) Administration.--The Department of the Interior may use up to 
1.5 percent of the funds consolidated under this section for its costs 
related to the administration of the funds transferred under this 
section.

``SEC. 9206. AVAILABILITY OF UNNEEDED PROGRAM FUNDS.

    ``(a) Unneeded Program Funds.--With the approval of its State 
educational agency, a local educational agency that determines for any 
fiscal year that funds under a covered program other than part A of 
title I of this Act are not needed for the purpose of that covered 
program may use such funds, not to exceed five percent of the total 
amount of its funds under that covered program, for the purpose of 
another covered program.
    ``(b) Coordination of Services.--A local educational agency, 
individual school, or consortium of schools may use a total of up to 5 
percent of the funds it receives under this Act for the establishment 
and implementation of a coordinated services project consistent with 
the requirements of title X of this Act.''.

   ``PART C--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND LOCAL 
                              APPLICATIONS

``SEC. 9301. 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. 9302. OPTIONAL CONSOLIDATED STATE APPLICATION.

    ``(a) General Authority.--(1) In order to simplify application 
requirements and reduce burden for State educational agencies under 
this Act, the Secretary shall, in accordance with subsection (b), 
establish procedures and criteria under which a State educational 
agency may submit a consolidated State application meeting the 
requirements of this section for each of the covered programs in which 
the State participates.
    ``(2) A State educational agency may also include in its 
consolidated application--
            ``(A) the Even Start program under part B of title I of 
        this Act;
            ``(B) the education of neglected and delinquent youth 
        program under part D of title I of this Act;
            ``(C) part A of title II of the Carl D. Perkins Vocational 
        and Applied Technology Education Act;
            ``(D) Goals 2000: Educate America Act;
            ``(E) School-to-Work Opportunities Act; and
            ``(F) such other programs as the Secretary may designate.
    ``(3) A State educational agency that submits 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 its 
consolidated application under this section applies.
    ``(b) Collaboration.--(1) 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) Through the collaboration process described in subsection 
(b), the Secretary shall establish, for each program under the Act to 
which this section applies, the descriptions, information, assurances, 
and other material required to be included in a consolidated State 
application.
    ``(3) The Secretary shall require only descriptions, information, 
assurances, and other materials that are absolutely necessary for the 
consideration of the State application.

``SEC. 9303. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
              ASSURANCES.

    ``(a) Assurances.--A State educational agency that submits a State 
plan or application under this Act, whether separately or under section 
9302, shall have on file with the Secretary 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, in a nonprofit private agency, 
        institution, or organization, or in an Indian tribe if the 
        statute 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 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 application was submitted to the 
        Secretary, the State has afforded a reasonable opportunity for 
        public comment on the application and has considered such 
        comment.
    ``(b) GEPA Provision.--Section 440 of the General Education 
Provisions Act does not apply to programs under this Act.

``SEC. 9304. CONSOLIDATED LOCAL APPLICATIONS.

    ``(a) General Authority.--A local educational agency receiving 
funds under more than one covered program may submit applications to 
the State educational agency under such programs on a consolidated 
basis.
    ``(b) Required Consolidated Applications.--A State educational 
agency that has submitted and had approved a consolidated State 
application under section 9302 may require local educational agencies 
in the State receiving funds under more than one program included in 
the consolidated State application to submit consolidated local 
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 applications under this section.
    ``(d) The State educational agency shall require only descriptions, 
information, assurances, and other material that are absolutely 
necessary for the consideration of the application of the local 
educational agency.

``SEC. 9305. OTHER GENERAL ASSURANCES.

    ``(a) Assurances.--Any applicant other than a State educational 
agency that submits an application under this Act, whether separately 
or pursuant to section 9304, shall have on file with the State 
educational agency a single set of assurances, applicable to each 
program for which an 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 statute 
        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 or 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 D--WAIVERS

``SEC. 9401. WAIVERS OF STATUTORY AND REGULATORY REQUIREMENTS.

    ``(a) General.--Except as provided in subsection (c), the Secretary 
may waive any requirement of this Act or any regulation under this Act 
for a State educational agency, local educational agency, Indian tribe, 
or school, or that--
            ``(1) receives funds under a program authorized by this 
        Act; and
            ``(2) requests a waiver as prescribed in subsection (b).
    ``(b) Request for Waiver.--(1) A State educational agency, local 
educational agency, or Indian tribe which desires a waiver shall submit 
a 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 to 
                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 or 
        Indian tribes and schools to achieve the objectives described 
        in this paragraph;
            ``(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) Such requests under this section--
            ``(A) may provide for waivers of requirements applicable to 
        State educational agencies, local educational agencies, Indian 
        tribes, and schools.
            ``(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.
    ``(c) Notice Requirement.--(1) Prior to requesting a waiver under 
subsection (b), a State educational agency, local educational agency, 
or Indian tribe shall provide notice and information to the public 
regarding the waiver or waivers to be requested.
    ``(2) Such notice and information shall be provided in the manner 
that such agencies or tribes customarily provide similar notices and 
information to the public.
    ``(d) Restrictions.--Nothing in this section shall be construed to 
authorize any changes in--
            ``(1) requirements relating to--
                    ``(A) the allocation of funds;
                    ``(B) maintenance of effort;
                    ``(C) comparability of services;
                    ``(D) use of Federal funds to supplement, not 
                supplant non-Federal funds;
                    ``(E) equitable participation of private school 
                students and teachers; and
                    ``(F) parental participation and involvement;
            ``(2) the elements of a charter school described in section 
        3407(1); or
            ``(3) the prohibitions regarding--
            ``(A) State aid in section 9502; or
            ``(B) use of funds for religious worship or instruction in 
        section 9507.
    ``(e) Duration and Extension of Waiver.--(1) The duration of a 
waiver approved by the Secretary may be for a period not to exceed 3 
years.
    ``(2) The Secretary may extend such period if the Secretary 
determines that the use of such waiver has increased the quality of 
instruction or the academic performance of students.
    ``(f) Termination of Waivers.--The Secretary shall terminate a 
waiver under this section if--
            ``(1) the Secretary determines that the use of a waiver has 
        not increased the quality of instruction or improved the 
        academic performance of students; or
            ``(2) such waiver is no longer needed by the recipient to 
        achieve the objectives of such waiver.
    ``(g) Reports.--
            ``(1) A local educational agency that receives a waiver 
        under this section shall annually 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) A State educational agency that receives reports 
        required by paragraph (1) shall annually submit a report to the 
        Secretary that summarizes such reports.
            ``(3) 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) The Secretary annually shall submit to the Committee 
        on Education and Labor of the House of Representatives and the 
        Committee on Labor and Human Resources of the Senate a report--
                    ``(A) summarizing the uses of waivers by State 
                educational agencies, local educational agencies, 
                Indian tribes, and schools; and
                    ``(B) describing whether such waivers--
                            ``(i) increased the quality of instruction 
                        to students; or
                            ``(ii) improved the academic performance of 
                        students.

                      ``PART E--UNIFORM PROVISIONS

``SEC. 9501. MAINTENANCE OF EFFORT.

    ``(a) General.--A local educational agency may receive funds under 
a covered program for any fiscal year only if the State educational 
agency finds that either the combined fiscal effort per student or the 
aggregate expenditures of that agency and the State with respect to the 
provision of free public education by that agency for the preceding 
fiscal year was not less than 90 percent of such combined fiscal effort 
or aggregate expenditures for the second preceding fiscal year.
    ``(b) Reduction in Case of Failure To Meet.--(1) The State 
educational agency shall reduce the amount of the allocation of funds 
under a covered program in any fiscal year in the exact proportion to 
which a local educational agency fails to meet the requirement of 
subsection (a) by falling below 90 percent of both the combined fiscal 
effort per student and aggregate expenditures (using the measure most 
favorable to such local agency).
    ``(2) No such lesser amount shall be used for computing the effort 
required under subsection (a) for subsequent years.
    ``(c) Waiver.--The Secretary may waive the requirements of this 
section if the Secretary determines that such a waiver would be 
equitable due to--
            ``(1) exceptional or uncontrollable circumstances such as a 
        natural disaster; or
            ``(2) a precipitous decline in the financial resources of 
        the local educational agency.

``SEC. 9502. PROHIBITION REGARDING STATE AID.

    ``No State may take into consideration payments under this Act 
(other than under title VIII) in determining the eligibility of any 
local educational agency in that State for State aid, or the amount of 
State aid, with respect to free public education of children.

``SEC. 9503. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND TEACHERS.

    ``(a) General Requirement.--(1) Except as otherwise provided in 
this Act, to the extent consistent with the number of eligible children 
in a State educational agency, local educational agency, or 
intermediate educational agency or consortium receiving financial 
assistance under a program specified in subsection (b), who are 
enrolled in private elementary and secondary schools in such agency or 
consortium, such agency or consortium shall, after timely and 
meaningful consultation with appropriate private school officials, 
provide such children and their teachers or other educational 
personnel, on an equitable basis, special educational services or other 
benefits under such program.
    ``(2) Educational services or other benefits, including materials 
and equipment, provided under this section, must be secular, neutral, 
and nonideological.
    ``(3) Educational services and other benefits provided under this 
section for such private school children, teachers, and other 
educational personnel shall be equitable in comparison to services and 
other benefits for public school children, teachers, and other 
educational personnel participating in such program.
    ``(4) Expenditures for educational services and other benefits 
provided under this section to eligible private school children, their 
teachers, and other educational personnel serving them shall be equal, 
taking into account the number and educational needs of the children to 
be served, to the expenditures for participating public school 
children.
    ``(5) Such agency or consortium may provide such services directly 
or through contracts with public and private agencies, organizations, 
and institutions.
    ``(b) Applicability.--(1) This section applies to--
            ``(A) each covered program;
            ``(B) subpart 1 of part B and part C of title II; and
            ``(C) programs under title VII of this Act.
    ``(2) For the purposes of this section, the term `eligible 
children' mean children eligible for services under a program described 
in paragraph (1).
    ``(c) Public Control of Funds.--(1) The control of funds used to 
provide services under this section, and title to materials, equipment, 
and property purchased with these funds, shall be in a public agency 
for the uses and purposes provided in this Act, and a public agency 
shall administer such funds and property.
    ``(2)(A) The provision of services under this section shall be 
provided--
            ``(i) by employees of a public agency; or
            ``(ii) through contract by such public agency with an 
        individual, association, agency, or organization.
    ``(B) In the provision of such services, such employee, person, 
association, agency, or organization shall be independent of such 
private school and of any religious organization, and such employment 
or contract shall be under the control and supervision of such public 
agency.
    ``(C) Funds used to provide services under this section shall not 
be commingled with non-Federal funds.

``SEC. 9504. STANDARDS FOR BY-PASS.

    ``If, by reason of any provision of law, a State, local, or 
intermediate educational agency or consortium is prohibited from 
providing for the participation in programs of children enrolled in, or 
teachers or other educational personnel from, private elementary and 
secondary schools, on an equitable basis, or if the Secretary 
determines that such agency or consortium has substantially failed or 
is unwilling to provide for such participation, as required by section 
9503, the Secretary shall--
            ``(1) waive the requirements of that section for such 
        agency or consortium; and
            ``(2) arrange for the provision of equitable services to 
        such children, teachers, or other educational personnel through 
        arrangements that shall be subject to the requirements of this 
        section and of sections 9503, 9505, and 9506.

``SEC. 9505. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE SCHOOL 
              CHILDREN.

    ``(a) Procedures for Complaints.--The Secretary shall develop and 
implement written procedures for receiving, investigating, and 
resolving complaints from parents, teachers, or other individuals and 
organizations concerning violations by an agency or consortium of 
section 9503 of this Act. Such individual or organization shall submit 
such complaint to the State educational agency for a written resolution 
by such agency within a reasonable period of time.
    ``(b) Appeals to the Secretary.--Such resolution may be appealed by 
an interested party to the Secretary within 30 days after the State 
educational agency resolves the complaint or fails to resolve the 
complaint within a reasonable period of time. Such appeal shall be 
accompanied by a copy of the State educational agency's resolution, and 
a complete statement of the reasons supporting the appeal. The 
Secretary shall investigate and resolve each such appeal within 120 
days after receipt of the appeal.

``SEC. 9506. BY-PASS DETERMINATION PROCESS.

    ``(a) Review.--(1)(A) The Secretary shall not take any final action 
under section 9504 until the agency or consortium affected by such 
action has had an opportunity, for at least 45 days after receiving 
written notice thereof, to submit written objections and to appear 
before the Secretary to show cause why that action should not be taken.
    ``(B) Pending final resolution of any investigation or complaint 
that could result in a determination under this section, the Secretary 
may withhold from the allocation of the affected State or local 
educational agency the amount estimated by the Secretary to be 
necessary to pay the cost of those services.
    ``(2)(A) If such affected agency or consortium is dissatisfied with 
the Secretary's final action after a proceeding under paragraph (1), it 
may, within 60 days after notice of such action, file with the United 
States court of appeals for the circuit in which such State is located 
a petition for review of that action.
    ``(B) A copy of the petition shall be forthwith transmitted by the 
clerk of the court to the Secretary.
    ``(C) The Secretary 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)(A) The findings of fact by the Secretary, if supported by 
substantial evidence, shall be conclusive, but the court, for good 
cause shown, may remand the case to the Secretary to take further 
evidence and the Secretary may thereupon make new or modified findings 
of fact and may modify the Secretary's previous action, and shall file 
in the court the record of the further proceedings.
    ``(B) Such new or modified findings of fact shall likewise be 
conclusive if supported by substantial evidence.
    ``(4)(A) Upon the filing of such petition, the court shall have 
jurisdiction to affirm the action of the Secretary or to set it aside, 
in whole or in part.
    ``(B) The judgment of the court shall be subject to review by the 
Supreme Court of the United States upon certiorari or certification as 
provided in section 1254 of title 28, United States Code.
    ``(b) Determination.--Any determination by the Secretary under this 
section shall continue in effect until the Secretary determines, in 
consultation with such agency or consortium and representatives of the 
affected private school children, teachers, or other educational 
personnel that there will no longer be any failure or inability on the 
part of such agency or consortium to meet the applicable requirements 
of section 9503 or any other provision of this Act.
    ``(c) Payment From State Allotment.--When the Secretary arranges 
for services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of such services, including the administrative costs of 
arranging for those services, from the appropriate allocation or 
allocations under this Act.
    ``(d) Prior Determination.--Any by-pass determination by the 
Secretary under this Act as in effect on the day before enactment of 
the Improving America's Schools Act of 1994 shall remain in effect to 
the extent the Secretary determines that it is consistent with the 
purpose of this section.

``SEC. 9507. PROHIBITION AGAINST FUNDS FOR RELIGIOUS WORSHIP OR 
              INSTRUCTION.

    ``Nothing contained in this Act shall be construed to authorize the 
making of any payment under this Act for religious worship or 
instruction.

``SEC. 9508. APPLICABILITY TO HOME SCHOOLS.

    ``Nothing in this Act shall be construed to affect home schools.

``SEC. 9509. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC 
              SCHOOLS.

    ``Nothing in this Act shall be construed to permit, allow, 
encourage, or authorize any Federal control over any aspect of any 
private, religious, or home school, whether or not a home school is 
treated as a private school or home school under state law. This 
section shall not be construed to bar private, religious, or home 
schools from participation in programs or services under the Act.

``SEC. 9510. COMPLIANCE WITH BUY AMERICAN ACT.

    ``No funds appropriated pursuant to this Act may be expended by an 
entity unless the entity agrees that in expending the assistance the 
entity will comply with sections 2 through 4 of the Act of March 3, 
1933 (41 U.S.C. 10a-10c, popularly known as the `Buy American Act').

``SEC. 9511. SENSE OF CONGRESS; REQUIREMENT REGARDING NOTICE.

    ``(a) Purchase of American-Made Equipment and Products.--In the 
case of any equipment of products that may be authorized to be 
purchased with financial assistance provided under this Act, it is the 
sense of the Congress that entities receiving such assistance should, 
in expending the assistance, purchase only American-made equipment and 
products.
    ``(b) Notice to Recipients of Assistance.--In providing financial 
assistance under this Act, the head of each Federal agency shall 
provide to each recipient of the assistance a notice describing the 
statement made in subsection (a) by the Congress.

``SEC. 9512. PROHIBITION OF CONTRACTS.

    ``If it has been finally determined by a court or Federal agency 
that any person intentionally affixed a label bearing a `Made in 
America' inscription, or any inscription with the same meaning, to any 
product sold in or shipped to the United States that is not made in the 
United States, such person shall be ineligible to receive any contract 
or subcontract made with funds provided pursuant to this Act, pursuant 
to the debarment, suspension, and ineligibility procedures described in 
section 9.400 through 9.409 of title 48, Code of Federal Regulations.

``SEC. 9513. PROHIBITION AGAINST FUNDS FOR PROTECTED PRAYER.

    ``Notwithstanding any provision of law, no funds made available 
through the Department of Education under this Act, or any other Act, 
shall be available to any State or local educational agency which has a 
policy of denying or which effectively prevents participation in, 
constitutionally protected prayer in public schools by individuals on a 
voluntary basis. Neither the United States nor any State nor any local 
educational agency shall require any person to participate in prayer or 
influence the form or content of any constitutionally protected prayer 
in such public schools.

``SEC. 9514. SEX EDUCATION.

    ``(a) Sex Education Instruction.--All public elementary and 
secondary schools receiving assistance under this Act which use such 
funds to teach sex education or discuss sexual intercourse, sexually 
transmitted diseases (STDs), including acquired immune deficiency 
syndrome (AIDS), shall continuously stress throughout the sex education 
program and sexual intercourse discussion that abstinence from sexual 
intercourse is the only protection that is 100 percent effective 
against unwanted teenage pregnancy, STDs, and AIDS when transmitted 
sexually. All material and instruction which use such funds to teach 
sex education and discuss sexual intercourse shall be age appropriate.
    ``(b) Criteria.--All sex education courses that discuss sexual 
intercourse may use the following criteria:
            ``(1) Course material and instruction shall be age 
        appropriate.
            ``(2) Course material and instruction shall stress that 
        abstinence is the only contraceptive method which is 100 
        percent effective, and that all other methods of contraception 
        carry a risk of failure in preventing unwanted teenage 
        pregnancy. Statistics based on the latest medical information 
        shall be provided to pupils citing the laboratory and real-life 
        failure and success rates of condoms and other contraceptives 
        in preventing pregnancy.
            ``(3) Course material and instruction shall stress that 
        STDs are serious possible hazards of sexual intercourse. Pupils 
        shall be provided with statistics based on the latest medical 
        information citing the laboratory and real-life failure and 
        success rates of condoms in preventing AIDS and other STDs 
        among elementary and secondary pupils.
            ``(4) Course material and instruction shall include a 
        discussion of the possible emotional and psychological 
        consequences of preadolescent and adolescent sexual intercourse 
        outside of marriage and the consequences of unwanted adolescent 
        pregnancy.
            ``(5) Course material and instruction shall stress that 
        pupils should abstain from sexual intercourse until they are 
        ready for marriage.
            ``(6) Course material and instruction shall teach honor and 
        respect for monogamous heterosexual marriage.
            ``(7) Course material and instruction shall advise pupils 
        of the laws pertaining to their financial responsibility to 
        children born in and out of wedlock.
            ``(8) Course material and instruction shall advise pupils 
        that it is unlawful for males of any age to have sexual 
        relations with females under a certain age to whom they are not 
        married.
            ``(9) Course material and instruction shall emphasize that 
        the pupil has the power to control personal behavior. Pupils 
        shall be encouraged to base their actions on reasoning, self-
        discipline, sense of responsibility, self-control, and ethical 
        considerations, such as respect for one's self and others.
            ``(10) Course material and instruction shall teach pupils 
        to refrain from making unwanted physical and verbal sexual 
        advances and how to say `no' to unwanted sexual advances. 
        Pupils shall be taught that it is wrong to take advantage of, 
        or to exploit, another person. The material and instruction 
        shall also encourage youth to resist negative peer pressure.
    ``(c) No Federal Control of Curriculum.--Nothing in this section 
shall be construed--
            ``(1) to authorize an officer or employee of the Federal 
        Government to mandate, direct, or control a State, local 
        educational agency, or schools' instructional content 
        curriculum, or related activities;
            ``(2) to limit the application of the General Education 
        Provisions Act;
            ``(3) to require the distribution of scientifically or 
        medically false or inaccurate materials or to prohibit the 
        distribution of scientifically or medically true or accurate 
        materials; or
            ``(4) to create any legally enforceable right.
    ``(d) Rule of Construction.--In carrying out the provisions of this 
section, the Secretary shall not--
            ``(1) review any curricula or instructional materials;
            ``(2) promulgate regulations; or
            ``(3) take any administrative or legal action against a 
        State or local educational agency or school.

``SEC. 9515. PROHIBITION AGAINST FUNDS FOR HOMOSEXUAL SUPPORT.

    ``(a) Prohibition.--No local educational agency shall use funds 
made available under this Act to implement or carry out a program or 
activity that has either the purpose or effect of encouraging or 
supporting homosexuality as a positive lifestyle alternative. No local 
educational agency shall use funds under this Act to distribute or to 
aid in the distribution by any organization of obscene material to 
minors on school grounds.
    ``(b) Definition.--A program or activity, for purposes of this 
section, includes the distribution of instructional materials, 
instruction, counseling, or other services on school grounds, or 
referral of a pupil to an organization that affirms a homosexual 
lifestyle.
    ``(c) No Federal Control of Curriculum.--Nothing in this section 
shall be construed--
            ``(1) to authorize an officer or employee of the Federal 
        Government to mandate, direct, or control a State, local 
        educational agency, or schools' instructional content, 
        curriculum, and related activities;
            ``(2) to limit the application of the General Education 
        Provisions Act;
            ``(3) to require the distribution of scientifically or 
        medically false or inaccurate materials or to prohibit the 
        distribution of scientifically or medically true or accurate 
        materials; or
            ``(4) to create any legally enforceable right.
    ``(d) Rule of Construction.--In carrying out the provisions of this 
section, the Secretary shall not--
            ``(1) review any curricula or instructional materials;
            ``(2) promulgate regulations; or
            ``(3) take any administrative or legal action against a 
        State or local educational agency or school.

``SEC. 9516. NONSMOKING POLICY.

    ``(a) General Rule.--Each person who receives Federal funds under 
this Act and provides services to elementary or secondary school 
students pursuant to this Act shall, in providing such services, 
establish and make a good-faith effort to enforce a nonsmoking policy 
that, except as provided in subsection (b)--
            ``(1) prohibits smoking in each indoor portion of a 
        facility used in connection with the provision of such 
        services; and
            ``(2) where appropriate, requires that signs be posted to 
        communicate the nonsmoking policy.
    ``(b) Permissible Features.--(1) The nonsmoking policy described in 
subsection (a) may permit smoking in specially designated areas of a 
facility if--
            ``(A) services are not normally provided directly to 
        children in the designated areas; and
            ``(B) the designated areas are ventilated separately from 
        areas of the facility in which such services are normally 
        provided directly to children to ensure that air from the 
        designated areas is directly exhausted to the outside and does 
        not recirculate or drift to other areas within the facility.
    ``(2) Nothing in this subsection shall be construed to require the 
establishment of a designated smoking area.
    ``(c) Civil Penalties.--
            ``(1) Any person subject to the requirements of this 
        section who fails to comply with such requirements shall be 
        liable to the United States for a civil penalty in an amount 
        not to exceed $1,000 for each violation, but in no case shall 
        the amount be in excess of the amount of the Federal funds 
        received by the person for the provision of elementary and 
        secondary educational services for the fiscal year in which the 
        violation occurred. Each day a violation continues shall 
        constitute a separate violation.
            ``(2) A civil penalty for a violation of this section shall 
        be assessed by the Secretary to the person by an order made on 
        the record after opportunity for a hearing in accordance with 
        section 554 of title 5, United States Code. Before issuing the 
        order, the Secretary shall--
                    ``(A) give written notice to the person to be 
                assessed a civil penalty under the order of the 
                proposal to issue the order; and
                    ``(B) provide the person an opportunity to request, 
                not later than 15 days after the date of receipt of the 
                notice, a hearing on the order.
            ``(3) In determining the amount of a civil penalty under 
        this subsection, the Secretary shall take into account the 
        nature, circumstances, extent, and gravity of the violation, 
        the ability of the violator to pay, any prior history of the 
        same kind of violation, the degree of culpability of the 
        violator, a demonstration by the violator of willingness to 
        comply with the requirements of this section, and such other 
        matters as justice may require.
            ``(4) The Secretary may compromise, modify, or remit, with 
        or without conditions, any civil penalty that may be imposed 
        under this subsection. The amount of the penalty as finally 
        determined or agreed upon in compromise may be deducted from 
        any sums that the United States owes to the person against whom 
        the penalty is assessed.
            ``(5) A person who has requested a hearing concerning the 
        assessment of a penalty pursuant to paragraph (2) and is 
        aggrieved by an order assessing a civil penalty 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. The petition may only be filed during the 30-day 
        period beginning on the date of issuance of the order making 
        the assessment.
            ``(6) If a person fails to pay an assessment of a civil 
        penalty--
                    ``(A) after the order making the assessment has 
                become a final order and without filing a petition for 
                judicial review in accordance with paragraph (5); or
                    ``(B) after a court has entered a final judgment in 
                favor of the Secretary,
        the Attorney General shall recover the amount assessed (plus 
        interest at currently prevailing rates from the last day of the 
        30-day period referred to in paragraph (5) or the date of the 
        final judgment, as the case may be) in an action brought in an 
        appropriate district court of the United States. In the action, 
        the validity, amount, and appropriateness of the penalty shall 
        not be subject to review.
    ``(d) Effective Date.--
            ``(1) In general.-- This section shall take effect on the 
        date which is 180 days after the date of enactment of the 
        Improving America's Schools Act of 1994, except as provided in 
        paragraph (2).
            ``(2) Collective bargaining agreements.--
                    ``(A) In the case of a person described in 
                subsection (a) who employs individuals who are members 
                of a labor organization and provide elementary or 
                secondary educational services pursuant to a collective 
                bargaining agreement that--
                            ``(i) took effect before the date of 
                        enactment of the Improving America's Schools 
                        Act of 1994, and
                            ``(ii) includes provisions relating to 
                        smoking privileges that are in violation of 
                        this section;
                this section shall take effect on the date that is 180 
                days after the date of enactment of the Improving 
                America's Schools Act of 1994 or the date specified in 
                subparagraph (B), whichever is later.
                    ``(B) The date specified in this subparagraph is 
                the earlier of--
                            ``(i) the first expiration date (after the 
                        date of enactment of the Improving America's 
                        Schools Act of 1994) of the collective 
                        bargaining agreement containing the provisions 
                        relating to smoking privileges, or
                            ``(ii) the date that is 1 year after the 
                        date of enactment of the Improving America's 
                        Schools Act of 1994.
    ``(e) Preemption.--Nothing in this section shall preempt or 
otherwise affect any provision of law of a State or political 
subdivision of a State that is as restrictive or more restrictive than 
a provision of this section.

                        ``PART F--GUN POSSESSION

``SEC. 9601. POLICY FOR GUN POSSESSION.

    ``(a) In General.--Each local educational agency which receives 
assistance under this Act shall have a policy that addresses student 
possession and use of a gun on school property.
    ``(b) Policy Content.--The content of such policy may include--
            ``(1) punishment requirements for possession and use of a 
        gun on school property, including expulsion and suspension;
            ``(2) alternative placement for an individual who violates 
        the policy;
            ``(3) educational services for a student expelled from 
        school for violation of the policy; and
            ``(4) opportunities for a hearing to address expulsion or 
        suspension decisions for violation of the policy.

``SEC. 9602. ETHICAL PRINCIPLES.

    ``It is the sense of Congress that States, local educational 
agencies, and schools should encourage and support parents and families 
in teaching children certain ethical principles. Such principles may 
include trustworthiness, respect, responsibility, fairness, caring and 
citizenship.

                      ``PART G-CUSTODIAL SERVICES.

``SEC. 9701. COMPENSATION OF CUSTODIANS.

    ``Notwithstanding any other provisions of law, a local educational 
agency which contains five counties in their entirety and has a student 
population which exceeds 900,000 may not use any assistance under this 
Act to provide compensation or other financial benefits to personnel 
who provide janitorial or custodial services to and within schools.

``PART H--SENSE OF THE CONGRESS TO INCREASE THE TOTAL SHARE OF FEDERAL 
                         SPENDING ON EDUCATION

    ``(a) The Congress finds that--
            ``(1) in order to increase our Nation's standard of living 
        and to increase the number of good jobs, the United States must 
        increase its productivity and ability to compete in the 
        international marketplace by improving the educational level of 
        our workforce;
            ``(2) although efforts are being made to establish higher 
        educational standards and goals, there is a substantial 
        shortage of resources to meet such standards and goals;
            ``(3) States and local communities are finding it 
        increasingly difficult to meet even higher educational 
        standards and goals, and States will not be able to fund needed 
        changes without Federal help to reach such standards and goals;
            ``(4) the Federal Government has established many 
        educational programs but failed to provide adequate funding for 
        such programs, for example one such program provides education 
        to our Nation's disabled students and was established with a 
        promise of 40 percent Federal funding but currently receives 
        only 8 percent Federal funding;
            ``(5) the annual shortfall in Federal education programs is 
        approximately half of the promised funding;
            ``(6) many needed educational improvements will not need 
        Federal funds, however, other suggested changes such as 
        lengthened school years, better pay, after-school activities, 
        mentoring for students at risk, programs for gifted students, 
        and replacing substandard buildings will require substantial 
        Federal assistance; and
            ``(7) the Federal contribution to education is less than 2 
        percent of the total Federal budget, and in order to make 
        education a national priority, the total percentage of Federal 
        educational funding should be increased by 1 percent each year 
        over the next 8 years to reach 10 percent of the total Federal 
        budget.
    ``(b) It is the sense of the Congress that the total share of the 
Federal spending on education should increase by at least 1 percent 
each year until such share reaches 10 percent of the total Federal 
budget.

                ``TITLE X--COORDINATED SERVICES PROJECTS

``SEC. 10001. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress makes the following findings:
            ``(1) Growing numbers of children are negatively affected 
        by influences outside of the classroom which increase their 
        risk of academic failure.
            ``(2) Factors such as poor nutrition, unsafe living 
        conditions, physical and sexual abuse, family and gang 
        violence, inadequate health care, unemployment, lack of child 
        care and substance abuse adversely affect family relationships 
        and the ability of a child to learn.
            ``(3) Parents and other caregivers in today's high pressure 
        society often face demands which place restraints on their time 
        and affect their ability to adequately provide for the needs of 
        their families.
            ``(4) Access to health and social service programs can 
        address the basic physical and emotional needs of children so 
        that they can fully participate in the learning experiences 
        offered them in school.
            ``(5) Services for at-risk students need to be more 
        convenient, less fragmented, regulated and duplicative in order 
        to meet the needs of children and their families.
            ``(6) School personnel, parents, and support service 
        providers often lack knowledge of, and access to, available 
        services for at-risk students and their families in the 
        community, and have few resources to coordinate services and 
        make them accessible.
            ``(7) Service providers, such as teachers, social workers, 
        health care and child care providers, juvenile justice workers 
        and others, are often trained in separate disciplines that 
        provide little support for the coordination of services.
            ``(8) Coordination of services is more cost effective 
        because it substitutes prevention for expensive crisis 
        intervention.
            ``(9) Coordinating health and social services with 
        education can help the Nation meet the National Education Goals 
        by ensuring better outcomes for children.
    ``(b) Purpose of Coordinating Services.--The purpose of this 
section is to provide elementary and secondary school students and 
their families better access to the social, health and education 
services necessary for students to succeed in school and for their 
families to take an active role in ensuring that children receive the 
best possible education.

``SEC. 10002. DEFINITIONS.

    ``(a) The term `coordinated services project' refers to a 
comprehensive approach to meeting the educational, health, social 
service, and other needs of children and their families, including 
foster children and their foster families, through a communitywide 
partnership that links public and private agencies providing such 
services or access to such services through a coordination site at or 
near a school.
    ``(b) An `eligible entity' is a local educational agency, 
individual school, or consortium of schools.

``SEC. 10003. PROJECT DEVELOPMENT AND IMPLEMENTATION.

    ``(a) Project Plans.--Eligible entities exercising their authority 
under section 9206(b) shall submit to the Secretary an application for 
the development of a plan or a plan for the implementation of a 
coordinated services project.
    ``(b) Project Development.--The application for the development of 
the coordinated services project, which can last for up to one year, 
shall--
            ``(1) demonstrate that an assessment will be performed of 
        the economic, social, and health barriers to educational 
        achievement experienced by children and families, including 
        foster children and their foster families, in the community, 
        and the local, State, federal, and privately funded services 
        available to meet such needs;
            ``(2) identify the measures that will be taken to establish 
        a communitywide partnership that links public and private 
        agencies providing services to children and families; and
            ``(3) identify any other measures that will be taken to 
        develop a comprehensive plan for the implementation of a 
        coordinated services project or projects.
    ``(c) Project Implementation.--Eligible entities shall submit to 
the Secretary a plan for the implementation or expansion of a 
coordinated services project. Such plan shall include--
            ``(1) the results of a children and families needs 
        assessment, which will include an assessment of the needs of 
        foster children;
            ``(2) the membership of the coordinated services project 
        partnership;
            ``(3) a description of the proposed coordinated services 
        project, its objectives, where it will be located, and the 
        staff that will be used to carry out the purposes of the 
        project;
            ``(4) a description of how the success of the coordinated 
        services project will be evaluated;
            ``(5) a description of the training to be provided to 
        teachers and appropriate personnel;
            ``(6) information regarding whether or not a sliding scale 
        fee for services will be employed, and if not, an explanation 
        of why such scale is not feasible; and
            ``(7) when applicable, strategies to ensure that the health 
        and welfare needs from migratory families are addressed.

``SEC. 10004. USES OF FUNDS.

    ``(a) Funds utilized under the authority of section 9206(b) may be 
used for activities under this title which include--
            ``(1) hiring a services coordinator;
            ``(2) making minor renovations to existing buildings;
            ``(3) purchasing basic operating equipment;
            ``(4) improving communications and information-sharing 
        between members of the coordinated services project 
        partnership;
            ``(5) providing training to teachers and appropriate 
        personnel concerning their role in a coordinated services 
        project; and
            ``(6) conducting the needs assessment required in section 
        10003(b)(1);
but shall not include the direct provision of any health or health-
related services.
    ``(b) Projects operating under the authority of this title shall 
comply with the requirements of section 1121(b).

``SEC. 10005. CONTINUING AUTHORITY.

    ``The Secretary shall not approve the plan of any project which 
fails to demonstrate that it is achieving effective coordination after 
2 years of implementation.

``SEC. 10006. FEDERAL AGENCY COORDINATION.

    ``(a) Agency Coordination.--The Secretaries of Education, Health 
and Human Services, Labor, Housing and Urban Development, Treasury, and 
Agriculture, and the Attorney General shall review the programs 
administered by their agencies to identify barriers to service 
coordination.
    ``(b) Report to Congress.--Such Secretaries and the Attorney 
General shall submit jointly a report to the Congress not later than 2 
years after the date of the enactment of the Improving America's 
Schools Act, based on the review required under paragraph (a) 
recommending legislative and regulatory action to address such 
barriers, and during this time, shall use waiver authorities authorized 
under this and other Acts.

             ``TITLE XI--SCHOOL FACILITIES IMPROVEMENT ACT

``SEC. 11001. FINDINGS.

    ``The Congress finds the following:
            ``(1) According to a 1991 survey conducted by the American 
        Association of School Administrators, 74 percent of all public 
        school buildings in the United States need to be replaced.
            ``(2) Almost one-third of such buildings were built prior 
        to World War II.
            ``(3) It is estimated that 1 of every 4 public school 
        buildings in the United States is in inadequate condition, and 
        of such buildings, 61 percent need maintenance or major 
        repairs, 43 percent are obsolete, 42 percent contain 
        environmental hazards, 25 percent are overcrowded, and 13 
        percent are structurally unsound.
            ``(4) Large numbers of local educational agencies have 
        difficulties securing financing for school facility 
        improvement.

``SEC. 11002. PURPOSE.

    ``The purpose of this Act is the leverage limited Federal funds to 
enable local educational agencies to finance the costs associated with 
the improvement of school facilities within their jurisdiction.

``SEC. 11003. FEDERAL ASSISTANCE IN THE FORM OF LOANS.

    ``(a) Authority and Conditions for Loans.--To assist local 
educational agencies in the construction, reconstruction, or renovation 
of schools, the Secretary may make loans of funds to such agencies for 
the construction, reconstruction, or renovation of such schools. Such 
assistance shall only be provided--
            ``(1) to local educational agencies eligible for grants 
        under section 1124A of part A of title I, schools located on 
        Indian reservations, or local educational agencies eligible for 
        payments under section 8004; and
            ``(2) if the Secretary finds that such constructions will 
        be undertaken in an economical manner, and that any such 
        construction, reconstruction or renovation is not or will not 
        be of elaborate or extravagant design or materials.
    ``(b) Priorities.--In approving loans under this title, the 
Secretary shall consider--
            ``(1) the difficulty of the applicant in securing 
        affordable financing from other sources;
            ``(2) the threat the condition of the physical plant poses 
        to the safety and well-being of students;
            ``(3) the demonstrated need for the construction, 
        reconstruction, or renovation as based on the condition of the 
        facility; and
            ``(4) the age of the facility to be renovated or replaced.
    ``(c) Amount and Conditions of Loans.--A loan to a local 
educational agency--
            ``(1) may be in an amount not exceeding the total 
        development cost of the facility, as determined by the 
        Secretary;
            ``(2) shall be secured in such manner and be repaid within 
        such period, not exceeding 50 years, as may be determined by 
        the Secretary; and
            ``(3) shall bear interest at a rate determined by the 
        Secretary which shall be the rate of interest paid by the 
        Secretary on funds obtained from the Secretary of the Treasury 
        minus 1 and one quarter per cent each year.

``SEC. 11004. GENERAL PROVISIONS.

    ``(a) Budget and Accounting.--In the performance of, and with 
respect to, the functions, powers, and duties under this part, the 
Secretary, notwithstanding the provisions of any other law, shall--
            ``(1) prepare annually and submit a budget program as 
        provided for wholly owned Government corporations by chapter 91 
        of title 31, United States Code; and
            ``(2) maintain a set of accounts which shall be audited by 
        the Comptroller General in accordance with the provisions of 
        chapter 35 of title 31, United States Code, but such financial 
        transactions of the Secretary, as the making of loans and 
        vouchers approved by the Secretary, in connection with such 
        financial transactions shall be final and conclusive upon all 
        officers of the Government.
    ``(b) Use of Funds.--Funds made available to the Secretary pursuant 
to the provisions of this part shall be deposited in a checking account 
or accounts with the Treasurer of the United States. Receipts and 
assets obtained or held by the Secretary in connection with the 
performance of functions under this part, and all funds available for 
carrying out the functions of the Secretary under this part (including 
appropriations therefor, which are hereby authorized), shall be 
available, in such amounts as may from year to year be authorized by 
the Congress, for the administrative expenses of the Secretary in 
connection with the performance of such functions.
    ``(c) Legal Powers.--In the performance of, and with respect to, 
the functions, powers, and duties under this part, the Secretary, 
notwithstanding the provisions of any other law, may--
            ``(1) prescribe such rules and regulations as may be 
        necessary to carry out the purposes of this part;
            ``(2) sue and be sued;
            ``(3) foreclose on any property or commence any action to 
        protect or enforce any right conferred upon the Secretary by 
        any law, contract, or other agreement, and bid for and purchase 
        at any foreclosure or any other sale any property in connection 
        with which the Secretary has made a loan pursuant to this part;
            ``(4) in the event of any such acquisition, notwithstanding 
        any other provision of law relating to the acquisition, 
        handling, or disposal of real property by the United States, 
        complete, administer, remodel and convert, dispose of, lease, 
        and otherwise deal with, such property, but any such 
        acquisition of real property shall not deprive any State or 
        political subdivision thereof of its civil or criminal 
        jurisdiction in and over such property or impair the civil 
        rights under the State or local laws of the inhabitants on such 
        property;
            ``(5) sell or exchange at public or private sale, or lease, 
        real or personal property, and sell or exchange any securities 
        or obligations, upon such terms as the Secretary may fix;
            ``(6) obtain insurance against loss in connection with 
        property and other assets held; and
            ``(7) include in any contract or instrument made pursuant 
        to this part such other covenants, conditions, or provisions as 
        may be necessary to assure that the purposes of this part will 
        be achieved.
    ``(d) Contracts for Supplies or Services.--Section 3709 of the 
Revised Statutes shall not apply to any contract for services or 
supplies on account of any property acquired pursuant to this part if 
the amount of such contract does not exceed $1,000.
    ``(e) Applicability of Government Corporation Control Act.--The 
provisions of section 9107(a) of title 31, United States Code, which 
are applicable to corporations or agencies subject to chapter 91 of 
such title, shall also be applicable to the activities of the Secretary 
under this part.
    ``(f) Wage Rates.--The Secretary shall take such action as may be 
necessary to ensure that all laborers and mechanics employed by 
contractors or subcontractors on any project assisted under this part--
            ``(1) shall be paid wages at rates not less than those 
        prevailing on the same type of work on similar construction in 
        the immediate locality as determined by the Secretary of Labor 
        in accordance with the Act of March 3, 1931 (Davis-Bacon Act), 
        as amended; and
            ``(2) shall be employed not more than 40 hours in any one 
        week unless the employee receives wages for the employee's 
        employment in excess of the hours specified above at a rate not 
        less than one and one-half times the regular rate at which the 
        employee is employed,
but the Secretary may waive the application of this subsection in cases 
or classes of cases where laborers or mechanics, not otherwise employed 
at any time in the construction of such project, voluntarily donate 
their services without full compensation for the purpose of lowering 
the costs of construction and the Secretary determines that any amounts 
saved thereby are fully credited to the educational institution 
undertaking the construction.
    ``(g) Limitations.--(1) No loan shall be made under this part to 
any local educational agency until 5 years after the date on which a 
previous loan to that agency was made under this part, unless the loan 
is intended to be used to construct or reconstruct a facility damaged 
as a result of a national disaster, as declared by the President.
    ``(2) Not more than 12.5 percent of the amount of the funds 
provided for in this part in the form of loans annually shall be made 
available to educational institutions within any one State.

``SEC. 11005. DEFINITIONS.

    ``The term `school' is defined as structures suitable for use as 
classrooms, laboratories, libraries, and related facilities, the 
primary purpose of which is the instruction of elementary and secondary 
school students.

``SEC. 11006. AUTHORIZATION.

    ``There are authorized to be appropriated to carry out this title, 
$200,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.

           ``TITLE XII--URBAN AND RURAL EDUCATION ASSISTANCE

             ``PART A--URBAN EDUCATION DEMONSTRATION GRANTS

``SEC. 12000. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Demonstration Grants.--(1) There is authorized to be 
appropriated $200,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the fiscal years 1996 through 1999 to carry out 
the provisions of sections 12003 and 12103.
    ``(2) 50 percent of the amount appropriated under paragraph (1) 
shall be reserved and made available only for the purposes of section 
12103. If the amount reserved for any fiscal year for section 12103 is 
less than $50,000,000, the Secretary shall grant awards on a 
competitive basis to local educational agencies serving rural areas, 
making such that there is an equitable geographic distribution of such 
awards. If the amount reserved for any fiscal year for section 12103 
exceeds $50,000,000, the Secretary shall grant awards in such a manner 
that a local educational agency serving rural areas in each State 
receives such an award.
    ``(3) 50 percent of the amount appropriated under paragraph (1) 
shall be reserved and made available only for the purposes of section 
12003.
    ``(b) Higher Education and Research Grants.--(1) There are 
authorized to be appropriated $50,000,000 for fiscal year 1995, and 
such sums as may be necessary for each of the fiscal years 1996 through 
1999 to carry out the provisions of sections 12004 and 12104.
    ``(2) 50 percent of the amount appropriated under paragraph (1) 
shall be reserved and made available only for the purposes of section 
12004.
    ``(3) 50 percent of the amount appropriated under paragraph (1) 
shall be reserved and made available only for the purposes of section 
12104.
    ``(c) Commissions.--There are authorized to be appropriated for 
fiscal years 1995, 1996, and 1997 such sums as may be necessary to 
carry out the provisions of sections 12006 and 12105. Amounts 
appropriated pursuant to this authority shall remain available until 
expended.
    ``(d) Evaluation.--There are authorized to be appropriated for each 
of the fiscal years 1995 through 1999 such sums as may be necessary to 
carry out the provisions of section 12005.

``SEC. 12001. FINDINGS.

    ``The Congress finds that--
            ``(1) the ability of the Nation's major urban school 
        systems to meet the Nation's educational goals will determine 
        the country's economic competitiveness and academic standing in 
        the world community;
            ``(2) the quality of public education in the Nation's major 
        urban areas has a direct effect on the economic development of 
        the Nation's inner cities;
            ``(3) the success of urban schools in boosting the 
        achievement of its minority youth attending such schools will 
        determine the ability of the Nation to close the gap between 
        the `haves and have-nots' in society;
            ``(4) the cost to America's businesses to provide remedial 
        education to high school graduates is approximately 
        $21,000,000,000 per year;
            ``(5) approximately \1/3\ of the Nation's work force will 
        be minority by the year 2000;
            ``(6) urban schools enroll a disproportionately large share 
        of the Nation's poor and `at-risk' youth;
            ``(7) urban schools enroll approximately \1/3\ of Nation's 
        poor, 40 percent of the Nation's African American children, and 
        30 percent of the Nation's Hispanic youth;
            ``(8) nearly 20 percent of the Nation's limited English 
        proficient children and 15 percent of the Nation's disabled 
        youth are enrolled in urban schools;
            ``(9) the academic performance of students in the average 
        inner-city public school system is below that of students in 
        most other kinds of school systems;
            ``(10) urban schools systems have higher dropout rates, 
        more problems with health care and less parental participation 
        than other kinds of school systems;
            ``(11) urban preschoolers have one-half the access to early 
        childhood development programs as do other children;
            ``(12) shortages of teachers in urban school systems are 
        2.5 times greater than such shortages in other kinds of school 
        systems;
            ``(13) declining numbers of urban minority high school 
        graduates are pursuing postsecondary educational opportunities;
            ``(14) urban schools systems have greater problems with 
        teen pregnancy, discipline, drug abuse and gangs than do other 
        kinds of school systems;
            ``(15) 75 percent of urban school buildings are over 25 
        years old, 33 percent of such buildings are over 50 years old, 
        and such buildings are often in serious disrepair and create 
        poor and demoralizing working and learning conditions;
            ``(16) solving the challenges facing our Nation's urban 
        schools will require the concerted and collaborative efforts of 
        all levels of government and all sectors of the community;
            ``(17) State and Federal funding or urban schools has not 
        adequately reflected need; and
            ``(18) Federal funding that is well targeted, flexible and 
        accountable would contribute significantly to addressing the 
        comprehensive needs of inner-city schools.

``SEC. 12002. STATEMENT OF PURPOSE.

    ``It is the purpose of this Act to provide financial assistance 
to--
            ``(1) assist urban schools in meeting national education 
        goals;
            ``(2) improve the educational and social well being of 
        urban public school children;
            ``(3) close the achievement gap between urban and nonurban 
        school children, while improving the achievement level of all 
        children nationally;
            ``(4) renovate and repair urban school buildings and 
        facilities;
            ``(5) conduct coordinated research on urban education 
        problems, solutions and promising practices;
            ``(6) improve the Nation's global economic and educational 
        competitiveness by improving the country's urban schools;
            ``(7) encourage community, parental and business 
        collaboration in the improvement or urban schools; and
            ``(8) review regulations whose simplification might improve 
        the achievement of urban school children.

``SEC. 12003. URBAN EDUCATION DEMONSTRATION GRANTS.

    ``(a) Authority.--The Secretary is authorized to make grants to 
eligible local educational agencies serving an urban area or State 
educational agencies in the case where the State educational agency is 
the local educational agency for activities designed to assist in local 
school improvement efforts and school reform, and to assist the schools 
of such agencies in meeting the National Education Goals.
    ``(b) Authorized Activities.--Funds under this section may be used 
to--
            ``(1) increase academic achievement of urban school 
        children;
            ``(2) ensure the readiness of urban children for school;
            ``(3) increase the graduation rates of urban students;
            ``(4) prepare urban school graduates to enter higher 
        education, pursue careers, and exercise their responsibilities 
        as citizens;
            ``(5) recruit and retain qualified teachers, particularly 
        minority teachers and teachers specializing in areas of 
        critical shortage;
            ``(6) provide for ongoing staff development to increase the 
        professional capacities of the teaching staff and the skills of 
        teacher aides and paraprofessionals;
            ``(7) decrease the use of drugs and alcohol among urban 
        students and to ensure the physical and emotional well-being of 
        such students in a bias-free school environment;
            ``(8) coordinate and collaborate with parents, the 
        community, the private sector, and with other service providers 
        and programs;
            ``(9) acquire and improve access to educational technology; 
        and
            ``(10) assist the schools most in need of services by 
        replicating successful efforts of other urban local educational 
        agencies and expanding successful programs within the eligible 
        agency.
    ``(c) General Provisions.--An eligible local educational agency 
desiring to receive a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require, consistent with this section.
    ``(d) Definitions.--Except as otherwise provided, for the purposes 
of this part--
            ``(1) Central city.--The term `central city' has the same 
        meaning as that used by the United States Census Bureau.
            ``(2) Eligible local educational agency.--The term 
        `eligible local educational agency' means a local educational 
        agency which--
                    ``(A) serves the largest central city in a State;
                    ``(B) enrolls more than 30,000 students and serves 
                a central city with a population of at least 200,000 in 
                a metropolitan statistical area; or
                    ``(C) enrolls between 25,000 and 30,000 students 
                and serves a central city with a population of at least 
                140,000 in a metropolitan statistical area.
            ``(3) Metropolitan statistical area.--The term 
        `metropolitan statistical area' has the same meaning as that 
        used by the United States Census Bureau.

``SEC. 12004. RESEARCH AND EVALUATION GRANTS.

    ``The Secretary is authorized to make grants and enter into 
contracts with eligible local educational agencies, and institutions of 
higher education jointly with eligible local educational agencies to 
conduct research and evaluate programs for improving and reforming the 
Nation's urban schools.

``SEC. 12005. USE OF FUNDS.

    ``Funds allotted to eligible local educational agencies and 
institutions of higher education under section 12004 may be used for--
            ``(1) collaborative and coordinated research and evaluation 
        of educational techniques or approaches used in multiple 
        eligible local educational agencies;
            ``(2) evaluation of projects assisted under title I;
            ``(3) collection and dissemination of information on 
        successful projects and approaches assisted under title I;
            ``(4) design and implementation of extension service 
        programs to allow an eligible local educational agency to 
        provide technical assistance to individual schools and teachers 
        involved in projects assisted under title I;
            ``(5) provision of data and information management services 
        to individual schools assisted under title I;
            ``(6) provision of staff training in schools assisted under 
        title I;
            ``(7) evaluation of progress made by eligible local 
        educational agencies assisted under this Act in meeting 
        national education goals;
            ``(8) provision of staff training in test interpretation 
        and use for diagnostic purposes;
            ``(9) provision of information to parents on test results 
        and test interpretation;
            ``(10) provision of technology and training in its research 
        and evaluation uses;
            ``(11) development of assessment tools of students in 
        individualized instruction;
            ``(12) research on school policies and practices which may 
        be barriers to the success of students in school; and
            ``(13) development and testing of new multiple, alternative 
        assessments of student progress toward the national education 
        goals which are race and gender bias-free and sensitive to 
        limited-English proficient and disabled students.

``SEC. 12006. AUGUSTUS F. HAWKINS NATIONAL COMMISSION ON URBAN 
              EDUCATION.

    ``(a) Establishment.--There is established a National Commission on 
Urban Education (in this Act referred to as the `Commission').
    ``(b) Membership.--
            ``(1) In general.--The Commission shall be composed of 12 
        members as follows:
                    ``(A) 4 of the Members shall be appointed by the 
                President.
                    ``(B) 4 of the Members shall be appointed by the 
                Speaker of the House, including 2 Members of the House, 
                of which 1 shall be from each political party.
                    ``(C) 4 of the members shall be appointed by the 
                President pro tempore of the Senate, including 2 
                Members of the Senate, of which 1 shall be from each 
                political party.
            ``(2) Chairperson.--The Chairperson of the Commission shall 
        be elected by the members of the Commission and shall continue 
        to serve for the duration of the Commission.
            ``(3) Vacancies.--Any vacancy in the Commission shall be 
        filled in the same manner as the original appointment.
    ``(c) Duties.--The Commission shall study the following issues:
            ``(1) Demographic changes.--Demographic changes in student 
        enrollment and classroom teachers in the 10-year period prior 
        to the date of enactment of this Act.
            ``(2) Special needs.--Numbers and types of special needs of 
        students in urban schools.
            ``(3) Unserved or underserved students.--Number of unserved 
        or underserved students in urban schools eligible for 
        assistance under the Head Start Act, chapter 1 of title 1 of 
        the Elementary and Secondary Education Act of 1965, School 
        Dropout Demonstration Assistance Act of 1988, Drug Free Schools 
        and Communities Act of 1986. Carl D. Perkins Vocational and 
        Applied Technology Education Act, Education of the Handicapped 
        Act and other Federal programs.
            ``(4) Student performance.--Program and management efforts 
        in urban schools designed to enhance student performance, and 
        reasons for the effectiveness of such efforts.
            ``(5) Financial support.--Financial support and funding 
        needs of urban schools from local, State, and Federal sources.
            ``(6) Collaborate efforts.--Collaborative efforts and 
        programs between urban schools, the private sector, and 
        community groups.
            ``(7) Supply needs.--Supply needs for teachers in urban 
        schools in the 10-year period beginning on the date of 
        enactment of this Act.
    ``(d) Reports.--
            ``(1) In general.--The Commission shall submit a report 
        that includes recommendations to the President and to the 
        appropriate committees of the Congress on the findings of the 
        study required by this section. The report shall be submitted 
        as soon as practicable.
            ``(2) Proposal for changes in federal legislation.--The 
        report submitted under this section shall include proposals for 
        changes in Federal legislation.
    ``(e) Staff.--Such personnel as the Commission deems necessary may 
be appointed by the Commission without regard to the provisions of 
title 5, United States Code, governing appointments in the competitive 
service, and may be paid without regard to the provisions of chapter 51 
and subtitle III of chapter 53 of such title relating to classification 
and General Schedule pay rates, but no individual so appointed shall be 
paid in excess of the rate of basic pay for level III of the Executive 
Schedule.
    ``(f) Compensation.--
            ``(1) In general.--Members of the Commission who are 
        officers or full-time employees of the United States shall 
        receive no additional pay, allowances, or benefits by reason of 
        their service on the Commission.
            ``(2) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, as 
        authorized by section 5702 and 5703 of title 5, United States 
        Code.
            ``(3) Special rule.--Members of the Commission who are not 
        officers or full-time employees of the United States may 
        receive a per diem and travel allowance as is provided by the 
        United States Code for persons in the Government service 
        employed intermittently.
    ``(g) Administration.--
            ``(1) In general.--The Commission or, on the authorization 
        of the Commission, any committee thereof, may, for the purpose 
        of carrying out the provisions of this section, hold such 
        hearings and site and act at such times and such places within 
        the United States as the Commission or such committee considers 
        advisable.
            ``(2) Consultation.--In carrying out its duties under this 
        section, the Commission shall consult with other Federal 
        agencies, representatives of State and local governments, and 
        private organizations to the extent feasible.
            ``(3) Information.--The Commission may secure directly from 
        any department or agency of the United States information 
        necessary to enable it to carry out this section. Upon request 
        of the Chairperson of the Commission, the head of such 
        department or agency shall furnish that information to the 
        Commission.
            ``(4) Contracts.--The Commission is authorized to enter 
        into contracts to secure the necessary data and information to 
        conduct its work and to obtain the services of experts and 
        consultants.
            ``(5) Cooperation.--The heads of all Federal agencies are, 
        to the extent practicable, directed to cooperate with the 
        Commission in carrying out this section.
            ``(6) Special rule.--The Commission is authorized to 
        utilize, with the consent of such agencies, the services, 
        personnel, information, and facilities of other Federal, State, 
        local, and private agencies with or without reimbursement.
    ``(h) Termination.--The Commission shall terminate 3 years after 
the date of its first meeting.

``SEC. 12007. EVALUATION.

    ``The Secretary is authorized directly, or through grants or 
contracts to evaluate the programs and activities funded under this 
title, broadly disseminate such information to other school districts, 
and to report the results of such evaluation to the Education and Labor 
Committee of the House of Representatives and the Labor and Human 
Resources Committee of the Senate.

             ``PART B--RURAL EDUCATION DEMONSTRATION GRANTS

``SEC. 12101. FINDINGS.

    ``The Congress finds that--
            ``(1) rural schools are essential to national efforts to 
        meet the National Education Goals;
            ``(2) approximately 60 percent of the Nation's public 
        school districts are rural, with populations of less than 
        2,500;
            ``(3) about 1 out of every 4 of America's rural school 
        children are living below the poverty level;
            ``(4) the quality of public education in rural areas has a 
        direct effect on the economic development of our country's 
        rural communities;
            ``(5) the academic performance of students in the average 
        rural school system is below that of students in most other 
        suburban school systems;
            ``(6) the average age of rural public school buildings is 
        more than 45 years old, creating poor and demoralizing working 
        and learning conditions;
            ``(7) shortages of teachers for rural school systems is 
        greater than in other kinds of school systems;
            ``(8) solving the challenges facing the Nation's rural 
        schools will require the concerted and collaborative efforts of 
        all levels of government and all sectors of the education 
        community; and
            ``(9) additional Federal funding would contribute 
        significantly to addressing the comprehensive needs of rural 
        schools.

``SEC. 12102. STATEMENT OF PURPOSE.

    ``It is the purpose of this part to provide financial assistance to 
rural schools to encourage innovative school reform programs, the 
enhanced use of telecommunications technology for learning, and 
inservice training and teacher recruitment initiatives in cooperation 
with institutions of higher education designed to augment local school 
improvement activities.

``SEC. 12103. RURAL SCHOOL GRANTS.

    ``(a) Authority.--The Secretary is authorized to make grants to 
local education agencies serving rural areas or State educational 
agencies in the case where the State educational agency is the local 
educational agency for activities designed to assist in local school 
improvement efforts.
    ``(b) Authorized Activities.--Funds under this title may be used 
to--
            ``(1) assist rural schools in meeting National Education 
        goals and undertaking local school improvement initiatives;
            ``(2) develop pilot projects that experiment with 
        innovative ways to teach rural public school children more 
        effectively;
            ``(3) encourage rural school consortia for the purpose of 
        increasing efficiency and course offerings;
            ``(4) provide meaningful inservice training opportunities 
        for rural public school teachers; and
            ``(5) assist rural schools in acquiring and improving 
        access to educational technology, including distance learning 
        technologies.
    ``(c) General Provisions.--Each eligible entity desiring a grant 
under this title shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require. Awards made by the Secretary shall be 
of sufficient size and scope to achieve significant rural school 
improvement.

``SEC. 12104. HIGHER EDUCATION GRANTS.

    ``(a) Grants.--The Secretary is authorized to make grants to 
institutions of higher education, consortia of such institutions, or 
partnerships between institutions of higher education and local 
education agencies to assist rural schools and local education agencies 
serving rural areas in undertaking local school improvement activities.
    ``(b) Authorized Activities.--Funds under this section may be used 
to--
            ``(1) assist rural schools in meeting National Education 
        Goals;
            ``(2) assist in the recruitment and training of teachers in 
        rural schools;
            ``(3) assist rural schools in the development of 
        appropriate innovative school improvement initiatives;
            ``(4) provide inservice training opportunities for teachers 
        in rural schools; and
            ``(5) provide technical assistance in the use and 
        installation of innovative telecommunications technology.
    ``(c) General Provisions.--Each eligible entity desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require.

``SEC. 12105. NATIONAL COMMISSION ON RURAL EDUCATION.

    ``(a) Establishment.--There is established a National Commission on 
Rural Education.
    ``(b) Membership.--The Commission shall be composed of 12 members, 
4 of whom shall be appointed by the President of the United States, 4 
of whom shall be appointed by the Speaker of the House upon the 
recommendation of the majority leader and the minority leader, and 4 of 
whom shall be appointed by the President pro tempore of the Senate upon 
the recommendation of the majority leader and the minority leader. A 
majority of the members of the Commission shall be individuals involved 
in rural education, with at least 2 individuals involved in rural 
postsecondary education. The Chair of the Commission shall be elected 
by the President from among his 4 appointees and shall continue to 
serve during the duration of the Commission. Vacancies in the 
Commission shall be filled in the same manner as the original 
appointment.
    ``(c) Studies.--The Commission shall conduct a full and complete 
study on the State of rural education in America. Included in this 
analysis should be the impact of demographic changes in rural schools, 
the special needs of these schools, the current and future teacher 
needs of these schools, the effectiveness of existing Federal education 
programs in meeting the needs of these schools, the adequacy of 
financial support for these schools, and any other issues that the 
Commission deems to be important and essential for a complete and 
exhaustive examination of the state and condition of rural schools in 
America.
    ``(d) Staff.--The Commission may appoint such staff as may be 
necessary by the Chair without regard to the provisions of title 5, 
United States Code, governing appointments in the competitive service, 
and may pay such staff without regard to the provisions of chapter 51 
of subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates, but no individual so 
appointed shall be paid in excess of the rate authorized for GS-18 of 
the General Schedule.
    ``(e) Compensation and Expenses.--(1) Members of the Commission who 
are officers or full-time employees of the United States shall serve 
without compensation in addition to that received for their services as 
officers and employees of the United States. Such members may be 
allowed travel expenses and per diem in lieu of subsistence, as 
authorized by section 5703 of title 5, United States Code.
    ``(2) Members of the Commission who are not officers or full-time 
employees of the United States may each receive per diem and travel 
allowance as is provided by the United States Code for persons in the 
Government service employed intermittently.
    ``(f) Administration.--(1) The Commission may organize itself in 
whatever manner is most appropriate for the conduct of its activities. 
It may hold such hearings and act at such time and such places within 
the United States as it may consider advisable. In carrying out its 
duties, the Commission may consult with other Federal agencies, 
representatives of State and local governments, and private 
organizations to the extent feasible.
    ``(2) The Commission is authorized to secure directly from any 
executive department, bureau, agency, board, commission, office, 
independent establishment, or instrumentality, information, 
suggestions, estimates, and statistics for the purpose of this section, 
and each such department, bureau, agency, board, commission, office, 
independent establishment, or instrumentality is authorized and 
directed, to the extent permitted by law, to furnish such information, 
suggestions, estimates, and statistics directly to the Commission, upon 
request by the Chair.
    ``(3) The Commission may enter into contracts for the acquisition 
of information, suggestions, estimates, and statistics for the purpose 
of this section. The Commission is authorized to obtain the services of 
experts and consultants without regard to section 3109 of title 5, 
United States Code, and to set pay in accordance with such section.
    ``(4) The head of such Federal agency shall, to the extent not 
prohibited by law, cooperate with the Commission in carrying out this 
section. The Commission is authorized to utilize, with their consent, 
the services, personnel, information, and facilities of other Federal, 
State, local, and private agencies with or without reimbursement.
    ``(g) Final Report.--The Commission shall report to Congress its 
findings not later than 3 years after the date of enactment of this 
Act. Such report may include legislative recommendations. The 
Commission may make whatever interim reports to Congress that it deems 
necessary.''.

      TITLE II--AMENDMENTS TO THE GENERAL EDUCATION PROVISIONS ACT

     PART A--APPLICABILITY OF THE GENERAL EDUCATION PROVISIONS ACT

SEC. 211. TITLE; APPLICABILITY; DEFINITIONS.

    Section 400 of the General Education Provisions Act (20 U.S.C. 1221 
et seq.; referred to in this title as ``the Act'') is amended to read 
as follows:

                  ``title; applicability; definitions

    ``Sec. 400. (a) This title may be cited as the `General Education 
Provisions Act'.
    ``(b)(1) Except as otherwise provided, this title applies to each 
applicable program of the Department of Education.
    ``(2) Except as otherwise provided, this title does not apply to 
any contract made by the Department of Education.
    ``(c) As used in this title, the following terms have the following 
meanings:
            ``(1) The term `applicable program' means any program for 
        which the Secretary or the Department has administrative 
        responsibility as provided by law or by delegation of authority 
        pursuant to law. The term includes each program for which the 
        Secretary or the Department has administrative responsibility 
        under the Department of Education Organization Act or under 
        statutes effective after the effective date of that Act.
            ``(2) The term `applicable statute' means--
                    ``(A) the Act or the title, part, section, or any 
                other subdivision of an Act, as the case may be, that 
                authorizes the appropriation for an applicable program;
                    ``(B) this title; and
                    ``(C) any other statute that by its terms expressly 
                controls the administration of an applicable program.
            ``(3) The term `Department' means the Department of 
        Education.
            ``(4) The term `Secretary' means the Secretary of 
        Education.
    ``(d) Nothing in this title shall be construed to affect the 
applicability of title VI of the Civil Rights Act of 1964, title IX of 
the Education Amendments of 1972, title V of the Rehabilitation Act of 
1973, the Age Discrimination Act, or other statutes prohibiting 
discrimination, to any applicable program.''.

SEC. 212. REPEAL AND REDESIGNATION.

    (a) The following provisions of the Act are repealed--
            (1) sections 400A, 401, 402, 405, 406, 406A, 406B, 406C, 
        407, 413, 416, 419, 421, 423, 424, 426A, and 429; and
            (2) part D.
    (b) Sections 403, 408, 409, 411, 412, 414, 415, 417, 420, 421A, 
422, 425, 426, 427, 428, 430, 431, 432, 433, 434, 435, 436, 437, 438, 
439, and 440 are redesignated as 401, 410, 411, 420, 421, 422, 423, 
425, 426, 430, 431, 432, 433, 434, 435, 436, 437, 438, 439, 440, 441, 
442, 443, 444, 445, and 446 respectively.
    (c) Part E is redesignated as part D.

                  PART B--THE DEPARTMENT OF EDUCATION

SEC. 221. NEW HEADING FOR PART A.

    The heading for part A of the Act is amended to read as follows:

         ``Part A--Functions of the Department of Education''.

SEC. 222. OFFICE OF NON-PUBLIC EDUCATION.

    Section 401 of the Act (as redesignated) is amended by--
            (1) striking the heading of such section and inserting the 
        following new heading:

                  ``office of non-public education'';

            (2) striking subsections (a), (b), and (c); and
            (3) striking ``(d)(1) There'' and inserting ``Sec. 401. (1) 
        There''.

SEC. 223. GENERAL AUTHORITY OF THE SECRETARY.

    Section 410 of the Act (as redesignated) is amended to read as 
follows:

                  ``general authority of the secretary

    ``Sec. 410. The Secretary, in order to carry out functions 
otherwise vested by law or by delegation of authority pursuant to law, 
and subject to limitations as may be otherwise imposed by law, is 
authorized to make, promulgate, issue, rescind, and amend rules and 
regulations governing the manner of operation of, and governing the 
applicable programs administered by, the Department.''.

                 PART C--APPROPRIATIONS AND EVALUATIONS

SEC. 230. FORWARD FUNDING.

    Section 420 of the Act (as redesignated) is amended to read as 
follows:

                           ``forward funding

    ``Sec. 420. (a) To the end of affording the responsible State, 
local, and Federal officers adequate notice of available Federal 
financial assistance for carrying out ongoing education activities and 
projects, appropriations for grants, contracts, or other payments under 
any applicable program are authorized to be included in the 
appropriations Act for the fiscal year preceding the fiscal year during 
which such activities and projects shall be carried out.
    ``(b) In order to effect a transition to the timing of 
appropriation action authorized by subsection (a), the application of 
this section may result in the enactment, in a fiscal year, of separate 
appropriations for an applicable program (whether in the same 
appropriations Act or otherwise) for 2 consecutive fiscal years.''.

SEC. 231. AVAILABILITY OF APPROPRIATIONS.

    (a) The heading for section 421 of the Act (as redesignated) is 
amended to read as follows: ``availability of appropriations on 
academic or school-year basis; additional period for expenditure of 
funds''.
    (b) Section 421 of the Act (as redesignated) is further amended--
            (1) in subsection (b) by striking ``(b) Notwithstanding'' 
        and inserting ``(b)(1) Notwithstanding''; and
            (2) in subsection (c) by striking ``section 3679(d)(2) of 
        the Revised Statutes'' and inserting ``section 1341(a) of title 
        31 of the United States Code''.

SEC. 232. CONTINGENT EXTENSION OF PROGRAMS.

    Section 422 of the Act (as redesignated) is amended to read as 
follows:

                   ``contingent extension of programs

    ``Sec. 422. (a) The authorization of appropriations for, or 
duration of, an applicable program shall be automatically extended for 
one additional fiscal year unless Congress, in the regular session that 
ends prior to the beginning of the terminal fiscal year of such 
authorization or duration, has passed legislation that becomes law and 
extends or repeals the authorization or duration of such program.
    ``(b) The amount authorized to be appropriated for the period of 
automatic extension of an applicable program under subsection (a) shall 
be the amount that was authorized to be appropriated for that program 
during its terminal fiscal year.
    ``(c) During the period of automatic extension of an applicable 
program under subsection (a), the Secretary shall administer such 
program, including the performance of all required acts and 
determinations, in the same manner required in the termination fiscal 
year by the applicable statute.
    ``(d) This section shall not apply to the authorization of 
appropriations for a commission, council or committee which is required 
by an applicable statute to terminate on a date certain.''.

SEC. 233. STATE REPORTS.

    Subpart 2 of part B of the Act is amended by inserting the 
following new section 424 at the beginning of such subpart.

           ``responsibility of states to furnish information

    ``Sec. 424. (a) Each State educational agency shall submit to the 
Secretary a report on or before March 15 of every second year. Each 
such report shall include--
            ``(1) information with respect to the uses of Federal funds 
        in such State in the 2 preceding fiscal years under any 
        applicable program under the jurisdiction of the State 
        educational agency; and
            ``(2) information with respect to the uses of Federal funds 
        in such State in the 2 preceding fiscal years under any Federal 
        program administered by the State that provided grants or 
        contracts to a local educational agency in the State.
    ``(b) Each report submitted as required by subsection (a) shall--
            ``(1) list, with respect to each program for which 
        information is provided, all grants made to and contracts 
        entered into with local educational agencies and other public 
        and private agencies and institutions within the State during 
        each fiscal year concerned;
            ``(2) analyze the information included in the report by 
        local educational agency and by program;
            ``(3) include the total amount of funds available to the 
        State under each such program for each fiscal year concerned; 
        and
            ``(4) be made readily available by the State to local 
        educational agencies and institutions within the State and to 
        the public.
    ``(c) If the Secretary does not receive a report by the date 
required under subsection (a), or receives an incomplete report, the 
Secretary, not later than 30 days after such report is required to be 
submitted, shall take all reasonable measures to obtain the delinquent 
or incomplete information from the State educational agency.
    ``(d) When the Secretary receives a report required under 
subsection (a), the Secretary shall provide such information to the 
National Center for Education Statistics, and shall make such 
information available, at a reasonable cost, to any individual who 
requests it.
    ``(e) The Secretary shall consult with the Speaker and Minority 
Leader of the House of Representatives and the Majority and Minority 
Leaders of the Senate regarding the costs and feasibility of making the 
information described in subsection (a) available as part of a 
telecommunications network that is readily accessible to every member 
of Congress and other interested parties.
    ``(f) On or before August 15th of each year in which reports are 
submitted under subsection (a), the Secretary shall 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. Such 
report shall include--
            ``(1) an analysis of the content and data quality of such 
        reports;
            ``(2) a compilation of statistical data derived from such 
        reports; and
            ``(3) information obtained by the Secretary with respect 
        to--
                    ``(A) direct grants made to local educational 
                agencies by the Federal Government; and
                    ``(B) contracts entered into between such agencies 
                and the Federal Government.''.

SEC. 234. BIENNIAL EVALUATION REPORT.

    Section 425 of the Act (as redesignated) is amended to read as 
follows:

                      ``biennial evaluation report

    ``Sec. 425. Not later than March 31 of each second year beginning 
with 1995, the Secretary shall transmit to the Committee on Education 
and Labor of the House of Representatives and the Committee on Labor 
and Human Resources of the Senate an evaluation report on the 
effectiveness of applicable programs during the two preceding fiscal 
years in achieving their legislated purposes. Such report shall--
            ``(1) contain program profiles that include legislative 
        citations, multi-year funding histories, and legislated 
        purposes;
            ``(2) contain recent evaluation information on the progress 
        being made toward the achievement of program objectives, 
        including listings of program performance indicators, data from 
        performance measurement based on the indicators, evaluation 
        information on the costs and benefits of the applicable 
        programs being evaluated.
            ``(3) contain selected significant program activities, such 
        as initiatives for program improvement, regulations, and 
        program monitoring and evaluation;
            ``(4) list the principal analyses and studies supporting 
        the major conclusions in such report; and
            ``(5) be prepared in concise summary form with necessary 
        detailed data and appendices, including available data to 
        indicate the effectiveness of the programs and projects by the 
        race, sex, disability and age of their beneficiaries.''.

SEC. 235. TECHNICAL AMENDMENT.

    (a) Section 423 of the Act (as redesignated) is amended by striking 
``Commissioner'' and inserting ``Secretary''.
    (b) Section 426 of the Act (as redesignated) is amended by--
            (1) striking ``title I of'' and all that follows through 
        ``Congress)'' and inserting ``title VIII of the Elementary and 
        Secondary Education Act of 1965''; and
            (2) striking ``subparagraph (C) of section 3(d)(2) or 
        section 403(1)(C)'' and inserting in lieu thereof ``sections 
        8003(c) or residing on property described in section 
        8012(4)(B)(ii)''.

SEC. 236. COORDINATION.

    The National Assessment Governing Board, the Advisory Council on 
Statistics, the National Education Goals Panel, the National Education 
Statistics and Improvement Council, and any other Board established to 
analyze, address, or approve standards and assessments shall coordinate 
and interact with one another in order to ensure that each entity does 
not duplicate activities to assist States in their efforts to reform 
their educational systems.

              PART D--ADMINISTRATION OF EDUCATION PROGRAMS

SEC. 241. JOINT FUNDING OF PROGRAMS.

    Section 430 of the Act (as redesignated) is amended to read as 
follows:

                      ``joint funding of programs

    ``Sec. 430. (a)(1) The Secretary is authorized to enter into 
arrangements with other Federal agencies to jointly carry out projects 
of common interest, to transfer to such agencies funds appropriated 
under any applicable program, and to receive and use funds from such 
agencies, for projects of common interest.
    ``(2) Funds so transferred or received shall be used only in 
accordance with the statutes authorizing the appropriation of such 
funds, and shall be made available by contract or grant only to 
recipients eligible to receive such funds under such statutes.
    ``(3) If the Secretary enters into an agreement under this 
subsection for the administration of a project, the agency 
administering the project shall use its procedures to award contracts 
or grants and to administer such awards, unless the parties to the 
agreement specify the use of procedures of another agency that is a 
party to the agreement.
    ``(4) If the Secretary has entered into an agreement authorized 
under subsection (a) of this section and the Secretary and the heads of 
the other agencies participating in the agreement determine that joint 
funding is necessary to address a special need consistent with the 
purposes and authorized activities of each program that provides 
funding, the Secretary and the heads of the other participating 
agencies may develop a single set of criteria for jointly funded 
projects and require each applicant for those projects to submit a 
single application for review by the participating agencies.
    ``(b) The Secretary may develop the criteria for, and require the 
submission of, joint applications under two or more applicable programs 
under which awards are made on a competitive basis, and may jointly 
review and approve such applications separately from other applications 
under such programs, when the Secretary determines that such joint 
awards are necessary to address a special need consistent with the 
purposes and authorized activities of each such program. An applicant 
for such a joint award must meet the eligibility requirements of each 
such program.
    ``(c) The Secretary may not construe the provisions of this section 
to take precedence over a limitation on joint funding contained in an 
applicable statute.
    ``(d)(1) The Secretary shall provide notice to the Committee on 
Education and Labor of the House of Representatives and to the 
Committee on Labor and Human Resources of the Senate of each joint 
funding agreement made with other Federal agencies not later than 60 
days following the making of such agreements.
    ``(2) Such notice shall include--
            ``(A) a description of the purpose and objectives of the 
        joint funding arrangement;
            ``(B) the amounts and sources, by program, of the funds 
        dedicated to such arrangement; and
            ``(C) the criteria developed to govern the award of 
        contracts and grants.''.

SEC. 242. COLLECTION AND DISSEMINATION OF INFORMATION.

    Section 431 of the Act (as redesignated) is amended by--
            (1) striking ``(a) The Commissioner'' and inserting ``The 
        Secretary'';
            (2) inserting ``and'' at the end of paragraph (2);
            (3) striking ``; and'' at the end of paragraph (3) and 
        inserting ``.''; and
            (4) striking paragraph (4) and subsections (b) and (c).

SEC. 243. REVIEW OF APPLICATIONS.

    (a) Section 432 of the Act (as redesignated) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Commissioner'' and inserting 
                ``Secretary'';
                    (B) by striking ``and in the case of the program 
                provided for in title I of the Elementary and Secondary 
                Education Act of 1965,'';
                    (C) in the third sentence thereof, by inserting a 
                comma after ``the hearing''; and
                    (D) in the fourth sentence thereof--
                            (i) by striking the comma after 
                        ``guidelines''; and
                            (ii) by inserting a comma after 
                        ``program'';
            (2) in subsection (b), by striking ``Commissioner'' each 
        place it appears and inserting ``Secretary''; and
            (3) in subsection (d), by striking ``Commissioner'' each 
        time it appears and inserting ``Secretary'' and by inserting 
        before the period ``or issue such other orders as the Secretary 
        may deem appropriate to achieve such compliance''.
    (b) All statistics and other data collection and analysis reported 
under this section shall, whenever feasible, be collected cross-
tabulated, analyzed, and reported by sex within race or ethnicity and 
socioeconomic status. In the event that the Secretary determines that 
such statistics or data collection and analysis reveals no significant 
differences among such categories, the Secretary shall include in the 
relevant report incorporating such statistics or data an explanation of 
such determination.

SEC. 244. TECHNICAL AMENDMENT.

    Section 434 of the Act (as redesignated) is amended in the first 
sentence by striking ``the Commissioner'' and ``he'' and inserting 
``the Secretary'' in lieu of each.

SEC. 245. USE OF FUNDS WITHHELD.

    Section 435 of the Act (as redesignated) is amended to read as 
follows:

                        ``use of funds withheld

    ``Sec. 435. (a) At any time that the Secretary makes an allotment 
or reallotment to any State under any applicable program, the Secretary 
shall reduce such allotment or reallotment by such amount as the 
Secretary determines such allotment or reallotment would have been 
reduced, had the data on which the allotment or reallotment is based 
excluded all data relating to local educational agencies of the State 
that, on the date of the Secretary's action, are ineligible to receive 
the Federal financial assistance involved because of failure to comply 
with 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, or the Age Discrimination Act of 1975.
    ``(b) The Secretary may use any funds withheld under subsection 
(a)--
            ``(1) to increase the allotments of other local educational 
        agencies within the State, or the allotments of all States, in 
        accordance with the statutes governing the program; or
            ``(2) for grants to local educational agencies of that 
        State in accordance with section 405 of the Civil Rights Act of 
        1964, or for any other program administered by the Department 
        that is designed to enhance equity in education or redress 
        discrimination on the basis of race, color, national origin, 
        sex, age, or disability.''.

SEC. 246. APPLICATIONS.

    Section 436 of the Act (as redesignated) is amended by striking 
``for three fiscal years'' and inserting ``for more than one fiscal 
year''.

SEC. 247. REGULATIONS.

    Section 437 of the Act (as redesignated) is amended--
            (1) in the heading by striking ``: requirements and 
        enforcement'';
            (2) in subsection (a) by--
                    (A) striking, in paragraph (1), ``Commissioner'' 
                and inserting ``Secretary''; and
                    (B) striking, in paragraph (2), ``Department of 
                Health, Education, and Welfare or the Office of 
                Education, or by an official of such agencies'' and 
                inserting ``Secretary'';
            (3) in subsection (b) by--
                    (A) striking ``Commissioner'' each place it appears 
                and inserting ``Secretary''; and
                    (B) striking the last sentence of paragraph (2)(B);
            (4) in subsection (d) by--
                    (A) striking, in paragraph (1)--
                            (i) in the second sentence, ``transmission 
                        unless the Congress shall, by concurrent 
                        resolution, find that the final regulation is 
                        inconsistent with the Act from which it derives 
                        its authority, and disapprove such final 
                        regulation, in whole or in part'' and insert 
                        ``transmission'';
                            (ii) the last sentence; and
                            (iii) ``(1)''; and
                    (B) striking paragraph (2);
            (5) by striking subsections (e) and (f); and
            (6) in subsection (g), by striking ``Commissioner'' each 
        place it appears and inserting ``Secretary''.

SEC. 248. RECORDS; REDUCTION IN RETENTION REQUIREMENTS.

    Section 443 of the Act (as redesignated) is amended--
            (1) in subsection (a)--
                    (A) by striking out ``grant, subgrant, contract, 
                subcontract, loan, or other arrangement (other than 
                procurement contracts awarded by an administrative head 
                of an educational agency)'' and inserting in lieu 
                thereof ``grant, subgrant, cooperative agreement, loan 
                or other agreement'';
                    (B) by inserting ``financial or programmatic'' 
                immediately before ``audit.''; and
                    (C) by striking ``five'' in the last sentence and 
                inserting ``three''; and
            (2) in subsection (b), by striking out ``to any records of 
        a recipient which may be related, or pertinent to, the grants, 
        subgrants, contracts, subcontracts, loans, or other 
        arrangements'' and inserting in lieu thereof ``to any records 
        currently maintained by a recipient that may be related, or 
        pertinent to, grants, subgrants, cooperative agreements, loans, 
        or other arrangements''.

SEC. 249. RELEASE OF RECORDS.

    Section 444(b)(1)(E) of the Act (as redesignated) is amended to 
read as follows:
            ``(E) State and local officials or authorities to whom such 
        information is specifically allowed to be reported or disclosed 
        pursuant to State statute adopted--
                    ``(i) before November 19, 1974, if the allowed 
                reporting or disclosure concerns the juvenile justice 
                system and its ability to effectively serve the student 
                whose records are released, or
                    ``(ii) after November 19, 1974, if--
                            ``(I) the allowed reporting or disclosure 
                        concerns the juvenile justice system and its 
                        ability to effectively serve the student whose 
                        records are released, and
                            ``(II) the officials and authorities to 
                        whom such information is disclosed certify in 
                        writing to the educational agency or 
                        institution that the information will not be 
                        disclosed to any other party except as provided 
                        under State law without the prior written 
                        consent of the parent.''.

SEC. 250. PROTECTION OF PUPIL RIGHTS.

    Section 445 of the Act (as redesignated) is amended to read as 
follows:

                      ``protection of pupil rights

    ``Sec. 445. (a) All instructional materials, including teacher's 
manuals, films, tapes, or other supplementary material which will be 
used in connection with any survey, analysis, or evaluation as part of 
any applicable program shall be available for inspection by the parents 
or guardians of the children.
    ``(b) No student shall be required, as part of any applicable 
program, to submit to a survey, analysis, or evaluation that reveals 
information concerning--
            ``(1) political affiliations;
            ``(2) mental and psychological problems potentially 
        embarrassing to the student or his family;
            ``(3) sex behavior and attitudes;
            ``(4) illegal, antisocial, self-incriminating, and 
        demeaning behavior;
            ``(5) critical appraisals of other individuals with whom 
        respondents have close family relationships;
            ``(6) legally recognized privileged or analogous 
        relationships, such as those of lawyers, physicians, and 
        ministers; or
            ``(7) income (other than that required by law to determine 
        eligibility for participation in a program or for receiving 
        financial assistance under such program),
without the prior consent of the student (if the student is an adult or 
emancipated minor), or in the case of an unemancipated minor, without 
the prior written consent of the parent.
    ``(c) Educational agencies and institutions shall give parents and 
students effective notice of their rights under this section.
    ``(d) The Secretary shall take such action as the Secretary 
determines appropriate to enforce this section, except that action to 
terminate assistance provided under an applicable program shall be 
taken only if the Secretary determines that--
            ``(1) there has been a failure to comply with such section; 
        and
            ``(2) compliance with such section cannot be secured by 
        voluntary means.
    ``(e) The Secretary shall establish or designate an office and 
review board within the Department of Education to investigate, 
process, review, and adjudicate violations of the rights established 
under this section.''.

SEC. 251. ENFORCEMENT.

    (a) Section 452 of the Act is amended--
            (1) in the first sentence of paragraph (2) of subsection 
        (a), by striking ``stating'' and all that follows through the 
        end of such sentence and inserting ``establishing a prima facia 
        case for the recovery of funds, including an analysis 
        reflecting the value of the program services actually obtained 
        in a determination of harm to the federal interest.'';
            (2) in the first sentence of paragraph (1) of subsection 
        (b), by striking ``30'' and inserting ``60''; and
            (3) in subsection (d) by--
                    (A) striking ``(d) Upon'' and inserting ``(d)(1) 
                Upon''; and
                    (B) adding a new paragraph (2) as follows:
     ``(2) During the conduct of such review, there shall not be any ex 
parte contact between the Secretary and individuals representing the 
Department or the recipient.''.
    (b) Section 459 of the Act is amended--
            (1) in paragraph (1) of subsection (a) by striking ``, and 
        that the recipient is in all other respects in compliance with 
        the requirements of that program''; and
            (2) subsection (c) is amended to read as follows:
    ``(c) Notwithstanding any other provisions of law, the funds made 
available under this section shall remain available for expenditure for 
a period of time deemed reasonable by the Secretary, but in no case to 
exceed more than 3 fiscal years following the later of--
            ``(1) the fiscal year in which final agency action under 
        section 452(e) is taken; or
            ``(2) if such recipient files a petition for judicial 
        review, the fiscal year in which final judical action under 
        section 458 is taken.''.

SEC. 252. TECHNICAL AMENDMENTS.

    (a) The heading for Part C of the Act is amended by striking 
``Commissioner of Education'' and inserting ``Secretary''.
    (b) Section 434 of the Act (as redesignated) is amended in the 
second sentence thereof, by inserting ``is made'' after ``such 
determination''.
    (c) Section 436 of the Act (as redesignated) is amended by striking 
``Commissioner'' each place it appears and inserting ``Secretary''.
    (d)(1) The heading of section 440 of the Act (as redesignated) is 
amended by striking ``educational''.
    (2) Section 440 of the Act (as redesignated) is amended--
            (A) by striking ``Commissioner'' each place it appears and 
        inserting ``Secretary''; and
            (B) by inserting ``(c)'' before the last sentence and by 
        deleting ``paragraph (3)'' in such sentence and inserting 
        ``subsection (b)(3)''.
    (e) Section 441 of the Act (as redesignated) is amended--
            (1) by striking ``Commissioner'' each place it appears and 
        inserting ``Secretary''; and
            (2) in subsection (a)--
                    (A) by striking the comma after ``submits a plan''; 
                and
                    (B) by striking ``(subject, in the case of programs 
                under chapter 1 and chapter 2 of title I of the 
                Elementary and Secondary Education Act of 1965, to the 
                provisions of title V of such Act)''.
    (f) Section 442 of the Act (as redesignated) is amended--
            (1) in subsection (a), by striking ``that local education 
        agency'' and inserting ``that local educational agency''; and
            (2) in subsection (b)--
                    (A) in paragraph (2), by inserting a comma after 
                ``program'';
                    (B) in paragraph (4), by striking ``Commissioner'' 
                each place it appears and inserting ``Secretary''; and
                    (C) in paragraph (7), by striking ``handicapped 
                individuals'' and inserting ``individuals with 
                disabilities''.
    (g) Section 444 of the Act (as redesignated) is amended--
            (1) in subsection (a)(4)(B)(ii), by striking the period at 
        the end thereof and inserting a semicolon;
            (2) in subsection (b)--
                    (A) in paragraph (1)(C), by striking ``(iii) an 
                administrative head of an education agency (as defined 
                in section 408(c)), or (iv)'' and inserting ``or 
                (iii)'';
                    (B) in paragraph (1)(H), by striking ``1954'' and 
                inserting ``1986''; and
                    (C) in paragraph (3)--
                            (i) by striking ``(C) an administrative 
                        head of an education agency or (D)'' and 
                        inserting ``or (C)''; and
                            (ii) by striking ``education program'' and 
                        inserting ``education programs'';
            (3) in subsection (d), by inserting a comma after 
        ``education'';
            (4) in subsection (f)--
                    (A) by striking ``The Secretary, or an 
                administrative head of an education agency,'' and 
                inserting ``The Secretary'';
                    (B) by striking ``provisions of'' after 
                ``enforce'';
                    (C) by striking ``according to the provisions of'' 
                and inserting ``in accordance with''; and
                    (D) by striking ``the provisions of'' after 
                ``with''; and
            (5) in subsection (g)--
                    (A) by striking ``Health, Education, and Welfare'' 
                and inserting ``Education''; and
                    (B) by striking ``the provisions of''.

SEC. 253. EQUITY FOR STUDENTS, TEACHERS, AND OTHER PROGRAM 
              BENEFICIARIES.

    The Act is further amended by inserting after section 426 (as 
redesignated) a new section 427 to read as follows:

    ``equity for students, teachers, and other program beneficiaries

    ``Sec. 427. (a) The purpose of this section is to assist the 
Department in implementing its mission to ensure equal access to 
education and to promote educational excellence throughout the Nation, 
by ensuring equal opportunities to participate for all eligible 
students, teachers, and other program beneficiaries in any project or 
activity carried out under an applicable program and promoting their 
ability to meet high standards.
    ``(b) The Secretary shall require each applicant for assistance 
under an applicable program (other than an individual) to develop and 
describe in its application the steps it proposes to take to ensure 
equitable access to, and equitable participation in, the project or 
activity to be conducted with such assistance, by addressing the 
special needs of students, teachers, and other program beneficiaries in 
order to overcome barriers to equitable participation, including 
barriers based on gender, race, color, national origin, disability, and 
age.
    ``(c) The Secretary may establish criteria and provide technical 
assistance for meeting the requirements of this section.
    ``(d) Nothing in this section is intended to alter in any way the 
rights or responsibilities established under the statutes cited in 
section 400(d) of this Act.''.

SEC. 254. DISCLOSURE REQUIREMENTS.

    Each educational organization, prior to accepting funds for the 
cost of a minor's participation in an educational program operated by 
such organization, shall disclose the following information in written 
form to the minor or the minor's parent:
            (1) Method of solicitation and selection.--The method of 
        solicitation and selection of participants in the educational 
        program, including--
                    (A) the origin of any mailing list used for such 
                solicitation and selection;
                    (B) any recruitment through teacher or school 
                personnel, including any enticements offered to such 
                teacher or personnel for the recommendation of a minor 
                for participation in the educational program;
                    (C) any open enrollment activity, including the 
                method of outreach; and
                    (D) any cooperation with, or sponsorship by, a 
                membership organization, including a description of the 
                cooperation or sponsorship and the name of each such 
                organization.
            (2) Cost and fees.--Information regarding the cost of the 
        educational program and information regarding the distribution 
        of any enrollment fee, including--
                    (A) the amount paid for, and the percentage of the 
                total educational program cost of, each feature of the 
                educational program, including--
                            (i) food;
                            (ii) lodging;
                            (iii) transportation;
                            (iv) program staffing;
                            (v) textbooks, syllabi, or other scholastic 
                        educational program materials;
                            (vi) speaker fees; and
                            (vii) administrative expenses, including 
                        expenses related to--
                                    (I) the preparation of non-
                                scholastic educational program 
                                materials;
                                    (II) the provision of financial 
                                assistance;
                                    (III) mailing list rental or other 
                                recruitment activity; and
                                    (IV) administrative salaries and 
                                consulting fees;
                    (B) the identity of the organization or business 
                providing each of the features described in clauses (i) 
                through (vii) of subparagraph (A); and
                    (C) the nature of any relationship of any board 
                member, officer, or employee of the educational 
                organization to any organization or business described 
                in subparagraph (B), including the salary or other 
                compensation paid by such organization or business to 
                such board member, officer, or employee.
            (3) Nondiscriminatory enrollment and service policy.--
                    (A) In general.--Each educational organization 
                shall include a verifiable statement on all enrollment 
                or recruitment material that the educational 
                organization does not--
                            (i) fail or refuse to hire, or discharge, 
                        any individual, or otherwise discriminate 
                        against any individual with respect to 
                        compensation, terms, conditions, or privileges 
                        of employment; or
                            (ii) exclude any student from participation 
                        in an educational program, discriminate against 
                        any student in providing the benefits 
                        associated with such program (including any 
                        scholarship or financial assistance, and use of 
                        any facility), or subject the student to 
                        discrimination under such program, on the basis 
                        of race, disability, or residence in a low-
                        income area.
                    (B) Construction.--Nothing in this section shall be 
                construed to entitle a student to--
                            (i) participation in an educational program 
                        or any benefit associated with such program; or
                            (ii) a waiver of any fee charged for such 
                        participation or benefit.
            (4) Enforcement.--
                    (A) In general.--The Secretary of Education shall 
                monitor compliance with the provisions of this section.
                    (B) Civil penalty.--If an educational organization 
                knowingly violates any provision of this Act, the 
                Secretary of Education, after notice and opportunity 
                for hearing, may impose on such organization a civil 
                fine of not more than $1,000 for each such violation.
            (5)(A) Educational organization, as defined by this 
        section, means an organization or group which--
                    (i) provides special honors programs, seminars, 
                citizenship experiences, government study programs, 
                educational vacations, student exchange programs, or 
                other educational experiences or honors generally 
                directed toward minors or high school students and 
                charges a tuition or enrollment fee;
                    (ii) offers its program away from a student's 
                regular place of school attendance, includes not less 
                than 1 supervised night away from home, and is intended 
                to enhance a student's regular course of study; and
                    (iii) advertises and recruits students through 
                commercial media, direct mailings, school recruitment 
                programs, or school administrators or teachers.
            (B) The definition in subparagraph (A) shall not include--
                    (i) a local educational agency, State educational 
                agency, a State department of education, or an 
                elementary or secondary school as defined by this Act;
                    (ii) an institution of higher education as defined 
                by the Higher Education Act of 1965; or
                    (iii) a local organization sponsored by an 
                elementary or secondary school, a recreational or 
                entertainment organization, a local sports activity 
                group, or a social club.

                PART E--RELATED AMENDMENTS TO OTHER ACTS

SEC. 261. DEPARTMENT OF EDUCATION ORGANIZATION ACT

    The Department of Education Organization Act is amended--
            (1) by repealing sections 414 and 427;
            (2) by redesignating sections 209, 210, 211, 212, 214, 215, 
        303, 304, 305, 306, 307, 415, 416, 417, 418, 419, 420, 421, 
        422, 423, 424, 425, 426, and 428 as sections 208, 209, 210, 
        211, 212, 213, 302, 303, 304, 305, 306, 414, 415, 416, 417, 
        418, 419, 420, 421, 422, 423, 424, 425, and 426;
            (3) the table of contents is amended to read as follows:

                          ``TABLE OF CONTENTS

``Sec. 1. Short title; table of contents.
                     ``TITLE I--GENERAL PROVISIONS

``Sec. 101. Findings.
``Sec. 102. Purposes.
``Sec. 103. Federal-State Relationships.
``Sec. 104. Definitions.
              ``TITLE II--ESTABLISHMENT OF THE DEPARTMENT

``Sec. 201. Establishment.
``Sec. 202. Principal officers.
``Sec. 203. Office for Civil Rights.
``Sec. 204. Office of Elementary and Secondary Education.
``Sec. 205. Office of Postsecondary Education.
``Sec. 206. Office of Vocational and Adult Education.
``Sec. 207. Office of Special Education and Rehabilitative Services.
``Sec. 208. Office of Educational Research and Improvement.
``Sec. 209. Office of Bilingual Education and Minority Languages 
                            Affairs.
``Sec. 210. Office of General Counsel.
``Sec. 211. Office of Inspector General.
``Sec. 212. Office of Correctional Education.
``Sec. 213. Federal Interagency Committee on Education.
            ``TITLE III--TRANSFERS OF AGENCIES AND FUNCTIONS

``Sec. 301. Transfers from the Department of Health, Education, and 
                            Welfare.
``Sec. 302. Transfers from the Department of Labor.
``Sec. 303. Transfers of programs from the National Science Foundation.
``Sec. 304. Transfers from the Department of Justice.
``Sec. 305. Transfers from the Department of Housing and Urban 
                            Development.
``Sec. 306. Effect of transfers.
                 ``TITLE IV--ADMINISTRATIVE PROVISIONS

                     ``Part A--Personnel Provisions

``Sec. 401. Officers and employees.
``Sec. 402. Experts and consultants.
``Sec. 403. Personnel reduction and annual limitations.
              ``Part B--General Administrative Provisions

``Sec. 411. General authority.
``Sec. 412. Delegation.
``Sec. 413. Reorganization.
``Sec. 414. Contracts.
``Sec. 415. Regional and field offices.
``Sec. 416. Acquisition and maintenance of property.
``Sec. 417. Facilities at remote locations.
``Sec. 418. Use of facilities.
``Sec. 419. Copyrights and patents.
``Sec. 420. Gifts and bequests.
``Sec. 421. Technical advice.
``Sec. 422. Working capital fund.
``Sec. 423. Funds transfer.
``Sec. 424. Seal of department.
``Sec. 425. Annual report.
``Sec. 426. Authorization of appropriations.
      ``TITLE V--TRANSITIONAL, SAVINGS, AND CONFORMING PROVISIONS

``Sec. 501. Transfer and allocation of appropriations and personnel.
``Sec. 502. Effect on personnel.
``Sec. 503. Agency terminations.
``Sec. 504. Incidental transfers.
``Sec. 505. Savings provisions.
``Sec. 506. Separability.
``Sec. 507. Reference.
``Sec. 508. Amendments.
``Sec. 509. Redesignation.
``Sec. 510. Coordination of programs affecting handicapped individuals.
``Sec. 511. Transition.
          ``TITLE VI--EFFECTIVE DATE AND INTERIM APPOINTMENTS

``Sec. 601. Effective date.
``Sec. 602. Interim appointments.'';
        and
            (4) in section 202(b), by inserting after paragraph (2) the 
        following:
    ``(3) There shall be in the Department, a Special Assistant for 
Gender Equity who shall be appointed by the Secretary. The Special 
Assistant shall promote, coordinate, and evaluate gender equity 
programs, including the dissemination of information, technical 
assistance, and coordination of research activities. The Special 
Assistant shall advise the Secretary and Deputy Secretary on all 
matters relating to gender equity.''.

                  TITLE III--AMENDMENTS TO OTHER ACTS

 PART A--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

SEC. 311. ALLOCATIONS UNDER SECTION 611 OF THE IDEA.

     (a) Grant Amounts.--Section 611(a) of the Individuals with 
Disabilities Education Act (referred to in this title as the ``IDEA'') 
is amended--
            (1) by amending paragraph (1) to read as follows:
    ``(1) Except as provided in paragraph (5), the maximum amount of 
the grant for which a State is eligible under this section for any 
fiscal year is--
            ``(A) the sum of--
                    ``(i) the number of children with disabilities in 
                the State, aged six through 21, who are receiving 
                special education and related services, as determined 
                under paragraph (3); and
                    ``(ii) the number of such children in the State, 
                aged three through five, if the State is eligible for a 
                grant under section 619; multiplied by
            ``(B) 40 percent of the average per-pupil expenditure in 
        public elementary and secondary schools in the United 
        States.'';
            (2) by amending paragraph (2) to read as follows:
    ``(2) For the purpose of this section, the term `State' means each 
of the 50 States, the District of Columbia, and the Commonwealth of 
Puerto Rico.''; and
            (3) in paragraph (5)(A)--
                    (A) in clause (i)--
                            (i) by striking ``and the State'' and 
                        inserting ``or the combined percentage of such 
                        children counted by the Secretary for the 
                        purpose of making fiscal year 199-- allocations 
                        under this section and under subpart 2 of part 
                        D of chapter 1 of title I of the Elementary and 
                        Secondary Education Act of 1965, as in effect 
                        the day before the date of the enactment of the 
                        Improving America's Schools Act of 1994, 
                        whichever is greater, if the State''; and
                            (ii) by inserting ``and'' at the end 
                        thereof;
                    (B) in clause (ii)--
                            (i) by striking ``and the State'' and 
                        inserting ``or the combined percentage of such 
                        children counted by the Secretary for the 
                        purpose of making fiscal year 1994 allocations 
                        under this section and under subpart 2 of part 
                        D of chapter 1 of title I of the Elementary and 
                        Secondary Education Act of 1965, as in effect 
                        the day before the date of the enactment of the 
                        Improving America's Schools Act of 1994, 
                        whichever is greater, if the State''; and
                            (ii) by striking out the semicolon and 
                        ``and'' at the end thereof and inserting in 
                        lieu thereof a period; and
                    (C) by striking out clause (iii).
    (b) Amount Received.--Section 611(b) of the IDEA is amended to read 
as follows:
    ``(b)(1) Notwithstanding subsections (a) and (g) of this section, 
no State shall receive an amount under this section for any of the 
fiscal years 1995 through 1999 that is less than the combined amount it 
received for fiscal year 1994 under--
            ``(A) this section; and
            ``(B) subpart 2 of part D of chapter 1 of title I of the 
        Elementary and Secondary Education Act of 1965 as in effect the 
        day before the date of the enactment of the Improving America's 
        Schools Act of 1994, for children with disabilities aged three 
        through 21.
    ``(2) If, for fiscal year 1998 or 1999, the number of children 
determined under subsection (a)(3) for any State is less than the total 
number of children with disabilities, aged three through 21, counted 
for such State's fiscal year 1994 grants under this section and under 
subpart 2 of part D of chapter 1 of title I of the Elementary and 
Secondary Education Act of 1965, as in effect the day before the date 
of the enactment of the Improving America's Schools Act of 1994, the 
amount determined under paragraph (1) for such State shall be reduced 
by the same percentage by which the number of such children so 
declined.
    ``(3) In any fiscal year in which the amount appropriated for 
grants under this section is less, in real dollar terms, than the 
amount appropriated in the immediate preceding fiscal year, the amount 
for each State under this subsection will be reduced 
proportionately.''.
    (c) Uses of Funds.--Section 611(c) of the IDEA is amended--
            (1) by amending paragraph (1) to read as follows:
    ``(1) Of the funds received under subsection (a) by any State for 
any fiscal year--
            ``(A) the State may use up to 25 percent in accordance with 
        paragraph (2); and
            ``(B) except as provided in paragraph (4), the State shall 
        distribute at least 75 percent to local educational agencies 
        and intermediate educational units, in accordance with 
        subsection (d), for use in accordance with priorities 
        established under section 612(3).'';
            (2) in paragraph (2), by amending subparagraph (A) to read 
        as follows:
    ``(A) From the funds that any State may use under paragraph (1)(A) 
for any fiscal year, the State--
            ``(i) may use 5 percent of the funds received under this 
        section or $450,000, whichever is greater, for administrative 
        costs related to carrying out sections 612 and 613; and
            ``(ii) shall use the remainder--
                    ``(I) to provide support services and direct 
                services, subject to subparagraph (B), in accordance 
                with priorities established under section 612(3); and
                    ``(II) for the administrative costs of monitoring 
                and complaint investigation, but only to the extent 
                that such costs exceed the costs of administration 
                incurred during fiscal year 1985.''.
    (d) State Funds.--Section 611(d) of the IDEA is amended to read as 
follows:
    ``(d)(1) From the total amount of funds available for any fiscal 
year under subsection (c)(1)(B), the State shall provide to each local 
educational agency or intermediate educational unit an amount that 
bears the same ratio to such total amount as the number of children, 
aged 3 through 21, determined under subsection (a)(3) for such agency 
or unit bears to the total number of such children determined for all 
such agencies and units that apply for such funds.
    ``(2)(A) To the extent necessary, the State--
            ``(i) shall use funds available under subsection 
        (c)(2)(A)(ii) to ensure that each State-owned or State-operated 
        school or program or State-supported school or program that 
        received fiscal year 1994 funds under subpart 2 of part D of 
        chapter 1 of title I of the Elementary and Secondary Education 
        Act of 1965 receives, from the combination of such funds and 
        funds provided under paragraph (1), an amount equal to--
                    ``(I) the number of children, aged 6 through 21, 
                determined under subsection (a)(3) for such agency; 
                multiplied by
                    ``(II) the per-child amount provided under such 
                subpart for fiscal year 1994; and
            ``(ii) may use such funds to ensure that each local 
        educational agency that received fiscal year 1994 funds under 
        such subpart for children who had transferred from a State-
        owned, State-operated, or State-supported school or program 
        assisted under such subpart receives, from the combination of 
        such funds and funds provided under paragraph (1), an amount 
        for each such child, aged 3 through 21, determined under 
        subsection (a)(3) for such agency, equal to the per-child 
        amount the agency received under such subpart for fiscal year 
        1994.
    ``(B) For the purpose of subparagraph (A), the number of children 
determined under subsection (a)(3) for any State agency or local 
educational agency shall not exceed the number of children aged 3 
through 21 for whom such agency received funds under such subpart for 
such fiscal year.
    ``(3) In any fiscal year in which the amount appropriated for 
grants under this section is less, in real dollar terms, than the 
amount appropriated in the preceding fiscal year, the amount for each 
State under this subsection will be reduced proportionately.''.
    (e) Jurisdiction.--Section 611(e)(1) of the IDEA is amended to read 
as follows:
    ``(1) The jurisdictions to which this subsection applies are Guam, 
American Samoa, the Virgin Islands, the Commonwealth of the Northern 
Mariana Islands, and Palau (until the effective date of the Compact of 
Free Association with the Government of Palau).''.
    (f) Possible Ratable Reduction.--Section 611(g) of the IDEA is 
amended to read as follows:
    ``(g)(1)(A) If the sums appropriated under subsection (h) for any 
fiscal year are not sufficient to pay in full the total of the amounts 
that all States are eligible to receive under subsection (a), each such 
amount shall be ratably reduced.
    ``(B) If additional funds become available for making such payments 
for any fiscal year, such reduced amounts shall be increased on the 
same basis as they were reduced.
    ``(C) Any State that receives any such additional funds shall 
distribute them in accordance with this section, except that any State 
that has used funds available under subsection (c)(2)(A)(ii) for the 
purposes described in subsection (d)(2) may--
            ``(i) deduct, from the amount that it would otherwise be 
        required to make available to local educational agencies and 
        intermediate educational units, the same amount of such 
        additional funds as it so used; and
            ``(ii) use such funds in accordance with subsection 
        (c)(2)(A)(ii).
    ``(2)(A) In any fiscal year for which payments have been reduced 
and additional funds have not been made available under paragraph (1) 
to pay in full the amounts for which all States are eligible under this 
section, each State educational agency shall fix dates by which each 
local educational agency or intermediate educational unit shall report 
to the State agency the amount of funds available to it under this 
section that it estimates it will expend.
    ``(B) The State educational agency shall, in accordance with this 
section, reallocate any funds that it determines will not be used 
during the period of availability by such local educational agencies 
and intermediate educational units, and by any such agency or unit to 
which such funds would be available if it applied for them under this 
part, to such local educational agencies and intermediate educational 
units that the State educational agency determines will need, and be 
able to use, additional funds to carry out approved programs.''.

SEC. 312. TREATMENT OF CHAPTER 1 STATE AGENCIES.

    Part B of the IDEA is further amended by inserting after section 
614 the following new section:

                ``treatment of chapter 1 state agencies

    ``Sec. 614A. (a) For the purpose of making payments under sections 
611 and 619 of this Act, any State agency that received funds for 
fiscal year 1994 under subpart 2 of part D of chapter 1 of title I of 
the Elementary and Secondary Education Act of 1965 shall be treated as 
if it were a local educational agency.
    ``(b) The State educational agency shall ensure that each State 
agency that owns or operates or supports a program or school for 
children with disabilities with funds under this part--
            ``(1) provides each child with a disability in such school 
        or program a free appropriate public education in accordance 
        with this part, including the due process protections of 
        section 615, as if it were a local educational agency; and
            ``(2) has on file with the State educational agency an 
        application that meets the requirements of section 614 that the 
        Secretary finds appropriate.
    ``(c) Section 611(c)(4) shall not apply with respect to a State 
agency that is eligible for a payment under this part by virtue of this 
section.''.

SEC. 313. INFANTS AND TODDLERS WITH DISABILITIES.

    (a) Allotments.--Section 684(c) of the IDEA is amended--
            (1) by redesignating paragraph (2) as paragraph (5); and
            (2) by striking paragraph (1) and inserting paragraphs (1) 
        through (4) to read as follows:
    ``(1) Except as provided in paragraphs (3) and (4), from the funds 
remaining for each fiscal year after the reservation and payments under 
subsections (a) and (b), the Secretary shall first allot to each State 
an amount that bears the same ratio to the amount of such remainder as 
the number of infants and toddlers in the State bears to the number of 
infants and toddlers in all States.
    ``(2) For fiscal year 1995 only, the Secretary shall allot 
$34,000,000 of the remaining funds described in paragraph (1) among the 
States in proportion to the relative numbers of infants and toddlers 
who--
            ``(A) are counted on December 1, 1994; and
            ``(B) would have been eligible to be counted under section 
        1221(c)(1) of the Elementary and Secondary Education Act of 
        1965 as in effect before the enactment of the Improving 
        America's Schools Act of 1994.
    ``(3) Except as provided in paragraph (4), no State shall receive 
an amount under this section for any fiscal year that is less than the 
greater of--
            ``(A) one-half of one percent of the remaining amount 
        described in paragraph (1), not including any amounts allotted 
        under paragraph (2); or
            ``(B) $500,000.
    ``(4)(A) No State shall receive an amount under this section for 
any of the fiscal years 1995 through 1999 that is less than the 
combined amount it received for fiscal year 1994 under--
            ``(i) this part; and
            ``(ii) subpart 2 of part D of chapter 1 of title I of the 
        Elementary and Secondary Education Act of 1965 for children 
        with disabilities from birth through age two.
    ``(B) If, for fiscal year 1998 or 1999, the number of infants and 
toddlers in any State, as determined under paragraph (1), is less than 
the number of infants and toddlers so determined for fiscal year 1994, 
the amount determined under subparagraph (A) for that State shall be 
reduced by the same percentage by which the number of those infants and 
toddlers so declined.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect beginning in fiscal year 1995.

           PART B--EDUCATION FOR HOMELESS CHILDREN AND YOUTH

SEC. 320. AMENDMENTS TO TABLE OF CONTENTS.

    Section 101 of the Stewart B. McKinney Homeless Assistance Act is 
amended by striking subtitles A and B of title VII and inserting the 
following:

             ``Subtitle A--Adult Education for the Homeless

``Sec. 701. State literacy initiatives.
        ``Subtitle B--Education for Homeless Children and Youth

``Sec. 721. Statement of policy.
``Sec. 722. Grants for state and local activities for the education of 
                            homeless children and youth.
``Sec. 723. Local educational agency grants for the education of 
                            homeless children and youth.
``Sec. 724. Secretarial responsibilities.
``Sec. 725. Definitions.
``Sec. 726. Authorization of appropriations.''.

SEC. 321. STATEMENT OF POLICY.

    Subtitle A of title VII of the Stewart B. McKinney Homeless 
Assistance Act is amended to read as follows:

             ``Subtitle A--Adult Education for the Homeless

``SEC. 701. STATE LITERACY INITIATIVES.

    ``(a) General Authority.--(1) The Secretary of Education is 
authorized to make grants to State educational agencies to enable each 
such agency to implement, either directly or through contracts and 
grants, a program of literacy training and academic remediation for 
adult homeless individuals within the State, which program shall--
            ``(A) include outreach activities; and
            ``(B) be coordinated with other agencies or organizations, 
        such as community-based organizations, nonprofit literacy-
        action organizations, and funding recipients under the Adult 
        Education Act, title II of the Job Training Partnership Act, 
        the Youth Fair Chance program under title IV of the Job 
        Training Partnership Act, the Volunteers in Service to America 
        program under the Domestic Volunteers Service Act, part C of 
        this title, or the Job Opportunity and Basic Skills program 
        under the Social Security Act.
    ``(2) The Secretary of Education shall, in awarding grants under 
this section, give special consideration to the estimates submitted in 
the application submitted under subsection (b) and make such awards in 
whatever amounts he or she determines would best serve the purposes of 
this section.
    ``(b) Application.--Each State educational agency desiring to 
receive a grant under this section shall submit to the Secretary of 
Education an application at such time, in such manner, and containing 
such information as the Secretary may reasonably require. Each such 
application shall include an estimate of the number of homeless 
individuals in the State and the number of such individuals expected to 
be served.
    ``(c) Authorization of Appropriations.--For the purpose of carrying 
out the adult literacy and academic remediation programs authorized by 
this section, there are authorized to be appropriated such sums as may 
be necessary for each of the fiscal years 1995 through 1999.
    ``(d) Definition.--As used in this section, the term `State' means 
each of the 50 States, the District of Columbia, the Commonwealth of 
Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and Palau (until the effective date of 
the Compact of Free Association with the Government of Palau).''.

SEC. 322. EDUCATION FOR HOMELESS CHILDREN AND YOUTH.

    Subtitle B of title VII of the Stewart B. McKinney Homeless 
Assistance Act is amended to read as follows:

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

``SEC. 721. STATEMENT OF POLICY.

    ``It is the policy of the Congress that--
            ``(1) each State educational agency shall ensure that each 
        child of a homeless individual and each homeless youth has 
        equal access to the same free, appropriate public education, 
        including a public preschool education, as provided to other 
        children and youth;
            ``(2) in any State that has a compulsory residency 
        requirement as a component of its compulsory school attendance 
        laws or other laws, regulations, practices, or policies that 
        may act as a barrier to the enrollment, attendance, or success 
        in school of homeless children and youth, the State will review 
        and undertake steps to revise such laws, regulations, 
        practices, or policies to ensure that homeless children and 
        youth are afforded the same free, appropriate public education 
        as provided to other children and youth;
            ``(3) homelessness alone should not be sufficient reason to 
        separate students from the mainstream school environment; and
            ``(4) homeless children and youth should have access to the 
        education and other services that they need to ensure that they 
        have an opportunity to meet the same challenging State 
        performance standards to which all students are held.

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

    ``(a) General Authority.--The Secretary is, in accordance with the 
provisions of this section, authorized to make grants to States to 
carry out the activities described in subsections (d), (e), (f), and 
(g).
    ``(b) Application.--No State may receive a grant under this section 
unless the State educational agency submits an application to the 
Secretary at such time, in such manner, and containing or accompanied 
by such information as the Secretary may reasonably require.
    ``(c) Allocation and Reservations.--(1) Subject to paragraph (2) 
and section 724(c), from the amounts appropriated for each fiscal year 
pursuant to section 726, the Secretary is authorized to allot to each 
State an amount that bears the same ratio to the amount appropriated in 
each such year as the amount allocated under section 1123 of the 
Elementary and Secondary Education Act of 1965 to the State in that 
year bears to the total amount allocated to all States, except that no 
State shall receive less than $100,000.
    ``(2)(A) The Secretary is authorized to reserve 0.1 percent of the 
amount appropriated for each fiscal year pursuant to section 726 to be 
allocated by the Secretary among the Virgin Islands, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, and Palau 
(until the effective date of the Compact of Free Association with the 
Government of Palau), according to their respective need, as determined 
by the Secretary.
    ``(B)(i) The Secretary is authorized to transfer one percent of the 
amount appropriated for each fiscal year under section 726 to the 
Department of the Interior for programs for Indian students served by 
schools funded by the Secretary of the Interior, as determined under 
the Indian Self-Determination and Education Assistance Act, that are 
consistent with the purposes of this Act.
    ``(ii) The Secretary and the Secretary of the Interior shall enter 
into an agreement, consistent with the requirements of this part, for 
the distribution and use of these funds under terms that the Secretary 
determines best meet the purposes of the covered programs. Such 
agreement shall set forth the plans of the Secretary of the Interior 
for the use of the amounts transferred, including appropriate goals, 
objectives, and milestones.
    ``(3) As used in this subsection, the term `State' shall not 
include the Virgin Islands, Guam, American Samoa, the Commonwealth of 
the Northern Mariana Islands, or Palau.
    ``(d) Activities.--Grants under this section shall be used--
            ``(1) to carry out the policies set forth in section 721 in 
        the State;
            ``(2) to provide activities for, and services to, homeless 
        children, including preschool-aged children, and homeless youth 
        that enable such children and youth to enroll in, attend, and 
        succeed in school, or, if appropriate, in preschool programs;
            ``(3) to establish or designate an Office of Coordinator of 
        Education of Homeless Children and Youth in the State 
        educational agency in accordance with subsection (f);
            ``(4) to prepare and carry out the State plan described in 
        subsection (g); and
            ``(5) to develop and implement professional development 
        programs for school personnel to heighten their awareness of, 
        and capacity to respond to, specific problems in the education 
        of homeless children and youth.
    ``(e) State and Local Grants.--(1)(A) Subject to subparagraph (B), 
if the amount allotted to the State educational agency for any fiscal 
year under this subtitle exceeds the amount such agency received for 
fiscal year 1990 under this subtitle, such agency shall provide grants 
to local educational agencies for purposes of section 723.
    ``(B) The State educational agency may reserve not more than the 
greater of five percent of the amount it receives under this subtitle 
for any fiscal year, or the amount such agency received under this 
subtitle for fiscal year 1990, to conduct activities under subsection 
(f) directly or through grants or contracts.
    ``(2) If the amount allotted to a State educational agency for any 
fiscal year under this subtitle is less than the amount such agency 
received for fiscal year 1990 under this subtitle, such agency, at its 
discretion, may provide such grants or may conduct activities under 
subsection (f) directly or through grants or contracts.
    ``(f) Functions of the Office of Coordinator.--The Coordinator of 
Education of Homeless Children and Youth established in each State 
shall--
            ``(1) estimate the number of homeless children and youth in 
        the State and the number of such children and youth served with 
        assistance provided under the grants 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 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 and their 
        families, including children who are preschool age; and
            ``(6) develop relationships and coordinate with other 
        relevant education, child development, or preschool programs 
        and providers of services to homeless children, homeless 
        families, and runaway and homeless youth (including domestic 
        violence agencies, shelter operators, transitional housing 
        facilities, runaway and homeless youth centers, and 
        transitional living programs for homeless youth), to improve 
        the provision of comprehensive services to homeless children 
        and youth and their families.
    ``(g) State Plan.--(1) Each State shall submit to the Secretary a 
plan to provide for the education of homeless children and youth within 
the State, which plan shall describe how such children and youth are or 
will be given the opportunity to meet the same challenging State 
performance standards all students are expected to meet, shall describe 
the procedures the State educational agency will use to identify such 
children and youth in the State and to assess their special needs, and 
shall--
            ``(A) describe procedures for the prompt resolution of 
        disputes regarding the educational placement of homeless 
        children and youth;
            ``(B) describe programs for school personnel (including 
        principals, attendance officers, teachers and enrollment 
        personnel), to heighten the awareness of such personnel of the 
        specific needs of runaway and homeless youth;
            ``(C) describe procedures that ensure that homeless 
        children and youth who meet the relevant eligibility criteria 
        are able to participate in Federal, State, or local food 
        programs;
            ``(D) describe procedures that ensure that--
                    ``(i) homeless children have equal access to the 
                same public preschool programs, administered by the 
                State agency, as provided to other children; and
                    ``(ii) homeless children and youth who meet the 
                relevant eligibility criteria are able to participate 
                in Federal, State, or local before- and after-school 
                care programs;
            ``(E) address problems set forth in the report provided to 
        the Secretary under subsection (f)(4);
            ``(F) address other problems with respect to the education 
        of homeless children and youth, including problems caused by--
                    ``(i) transportation issues; and
                    ``(ii) enrollment delays that are caused by--
                            ``(I) immunization requirements;
                            ``(II) residency requirements;
                            ``(III) lack of birth certificates, school 
                        records, or other documentation; or
                            ``(IV) guardianship issues;
            ``(G) demonstrate that the State and local educational 
        agencies in the State have developed, and will review and 
        revise, policies to remove barriers to the enrollment and 
        retention of homeless children and youth in schools in the 
        State; and
            ``(H) contain an assurance that the State educational 
        agency and local educational agencies in the State will adopt 
        policies and practices to ensure that homeless children and 
        youth are not isolated or stigmatized.
    ``(2) Each plan adopted under this subsection shall also show how 
the State will ensure that local educational agencies in the State will 
comply with the requirements of paragraphs (3) through (9).
    ``(3)(A) The local educational agency that serves each homeless 
child and youth 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 public school that 
        nonhomeless students who live in the attendance area in which 
        the child or youth is actually living are eligible to attend.
    ``(B) In determining the best interests of the child or youth under 
subparagraph (A), the local educational agency shall comply with the 
request made by a parent or guardian regarding school selection unless 
there is a compelling reason for not complying with this request.
    ``(C) For purposes of this paragraph, the term `school of origin' 
means the school that the child or youth attended when permanently 
housed, or the school in which the child or youth was last enrolled.
    ``(D) The choice regarding placement shall be made regardless of 
whether the child or youth lives with the homeless parents or has been 
temporarily placed elsewhere by the parents.
    ``(4) Each homeless child or youth shall be provided services 
comparable to services offered to other students in the school selected 
according to the provisions of paragraph (3), including--
            ``(A) transportation services;
            ``(B) educational services for which the child or youth 
        meets the eligibility criteria, such as services provided under 
        title I of the Elementary and Secondary Education Act of 1965 
        or similar State or local programs, educational programs for 
        children with disabilities, and educational programs for 
        students with limited-English proficiency;
            ``(C) programs in vocational education;
            ``(D) programs for gifted and talented students; and
            ``(E) school meals programs.
    ``(5) Any record ordinarily kept by the school, including 
immunization records, academic records, birth certificates, 
guardianship records, and evaluations for special services or programs, 
of each homeless child or youth shall be maintained--
            ``(A) so that the records are available, in a timely 
        fashion, when a child or youth enters a new school district; 
        and
            ``(B) in a manner consistent with section 438 of the 
        General Education Provisions Act.
    ``(6) Each local educational agency serving homeless children and 
youth that receives assistance under this subtitle shall coordinate 
with local social services agencies and other agencies or programs 
providing services to such children or youth and their families, 
including services and programs funded under the Runaway and Homeless 
Youth Act.
    ``(7)(A) Each local educational agency in a State that receives a 
grant under this subtitle shall designate a homelessness liaison to 
ensure that--
            ``(i) homeless children and youth enroll and succeed in the 
        schools of such agency; and
            ``(ii) homeless families, children, and youth receive 
        educational services for which they are eligible, including 
        preschool programs administered by the local educational 
        agency, and referrals to health care services, dental services, 
        mental health services, and other appropriate services.
    ``(B) State coordinators and local educational agencies shall 
inform school personnel, service providers, and advocates working with 
homeless families of the duties of the liaisons.
    ``(8) Each State and local educational agency shall review and 
revise any policies that may act as barriers to the enrollment of 
homeless children and youth in schools selected in accordance with 
paragraph (3). In reviewing and revising such policies, consideration 
shall be given to issues concerning transportation, immunization, 
residency, birth certificates, school records, and other documentation, 
and guardianship. Special attention shall be given to ensuring the 
enrollment and attendance of homeless children and youth who are not 
currently attending school.
    ``(9) A State and local eductional agency shall coordinate with 
State and local housing agencies responsible for developing the 
comprehensive housing affordability strategy. Consideration shall be 
given to State and local housing and shelter policies described in the 
Comprehensive Housing Affordability Strategy to minimize educational 
disruption for children who become homeless.

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

    ``(a) General Authority.--(1) The State educational agency shall, 
in accordance with section 722(e) and with amounts made available to 
such agency under section 726, make grants to local educational 
agencies for the purpose of facilitating the enrollment, attendance, 
and success in school of homeless children and youth.
    ``(2) Unless otherwise specified, services under paragraph (1) may 
be provided through programs on school grounds or at other facilities. 
Where 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, on an incidental basis. To 
the maximum extent practicable, services shall be provided through 
existing programs and mechanisms that integrate homeless individuals 
with nonhomeless individuals.
    ``(3) Services provided under this section are not intended to 
replace the regular academic program and shall be designed to expand 
upon or improve services provided as part of the school's regular 
academic program.
    ``(b) Application.--A local educational agency that desires to 
receive a grant under this section shall submit an application to the 
State educational agency at such time, in such manner, and containing 
or accompanied by such information as the State educational agency may 
reasonably require according to guidelines issued by the Secretary. 
Each such application shall include--
            ``(1) a description of the services and programs for which 
        assistance is sought and the problems to be addressed through 
        the provision of such services and programs;
            ``(2) an assurance that the local educational agency's 
        combined fiscal effort per student or the aggregate 
        expenditures of that agency and the State with respect to the 
        provision of free public education by such agency for the 
        preceding fiscal year was not less than 90 percent of such 
        combined fiscal effort or aggregate expenditures for the second 
        preceding fiscal year;
            ``(3) an assurance that the applicant complies with, or 
        will use requested funds to come into compliance with, 
        paragraphs (3) through (9) of section 722(g); and
            ``(4) a description of policies and procedures that the 
        agency will implement to ensure that activities carried out by 
        the agency will not isolate or stigmatize homeless children and 
        youth.
    ``(c) Awards.--(1) The State educational agency shall, in 
accordance with section 722(g) and with amounts made available to such 
agency under section 726, award grants under this section to local 
educational agencies submitting an application under subsection (b) on 
the basis of the need of such agencies.
    ``(2) In determining need under paragraph (1), the State 
educational agency may consider the number of homeless children and 
youth enrolled in preschool, elementary, and secondary schools within 
the area served by the agency, and shall consider the needs of such 
children and youth and the ability of the agency to meet such needs. 
Such agency may also consider--
            ``(A) the extent to which the proposed use of funds would 
        facilitate the enrollment, retention, and educational success 
        of homeless children and youth;
            ``(B) the extent to which the application reflects 
        coordination with other local and State agencies that serve 
        homeless children and youth, as well as the State plan required 
        by section 722(g);
            ``(C) the extent to which the applicant exhibits in the 
        application and in current practice a commitment to education 
        for all homeless children and youth; and
            ``(D) such other criteria as the agency determines 
        appropriate.
    ``(3) Grants awarded under this section shall be for terms not to 
exceed three years.
    ``(d) Authorized Activities.--(1) A local educational agency may 
use funds awarded under this section for activities to carry out the 
purpose of this subtitle, including--
            ``(A) the provision of tutoring and accelerated instruction 
        and enriched educational services that are linked to the 
        achievement of the same challenging standards the State 
        establishes for other children or youth;
            ``(B) the provision of expedited evaluations of the 
        strengths and needs of homeless children and youth, including 
        needs and eligibility for programs and services (such as 
        educational programs for gifted and talented students, children 
        with disabilities, and students with limited-English 
        proficiency, services provided under title I of the Elementary 
        and Secondary Education Act of 1965 or similar State or local 
        programs, programs in vocational education, and school meals 
        programs);
            ``(C) professional development and other activities for 
        educators and other school personnel that is designed to 
        heighten the understanding and sensitivity of such personnel to 
        the needs of homeless children and youth, the rights of such 
        children and youth under this Act, and the specific educational 
        needs of runaway and homeless youth;
            ``(D) the provision of referral services to homeless 
        children and youth for medical, dental, mental, and other 
        health services;
            ``(E) the provision of assistance to defray the excess cost 
        of transportation for students pursuant to sections 722(g)(4) 
        or 722(g)(9), not otherwise provided through Federal, State, or 
        local funding, where necessary to enable students to attend the 
        school selected under section 722(g)(3);
            ``(F) the provision of developmentally appropriate early 
        childhood education programs, not otherwise provided through 
        Federal, State, or local funding, for preschool-aged children;
            ``(G) the provision of before- and after-school, mentoring, 
        and summer programs for homeless children and youth in which a 
        teacher or other qualified individual provides tutoring, 
        homework assistance, and supervision of educational activities;
            ``(H) where necessary, the payment of fees and other costs 
        associated with tracking, obtaining, and transferring records 
        necessary to enroll homeless children and youth in school, 
        including birth certificates, immunization records, academic 
        records, guardianship records, and evaluations for special 
        programs or services;
            ``(I) the provision of education and training to the 
        parents of homeless children and youth about the rights of, and 
        resources available to, such children and youth;
            ``(J) the development of coordination between schools and 
        agencies providing services to homeless children and youth, 
        including programs funded under the Runaway and Homeless Youth 
        Act;
            ``(K) the provision of counseling (including violence 
        prevention counseling), social work, and psychological 
        services, and referrals for such services;
            ``(L) activities to address the particular needs of 
        homeless children and youth that may arise from domestic 
        violence;
            ``(M) the adaptation of space and purchase of supplies for 
        nonschool facilities made available under subsection (a)(2) to 
        provide services under this subsection;
            ``(N) the provision of school supplies; and
            ``(O) the provision of other extraordinary or emergency 
        assistance needed to enable homeless children and youth to 
        attend school.

``SEC. 724. SECRETARIAL RESPONSIBILITIES.

    ``(a) Review of Plans.--In reviewing the State plans submitted by 
the State educational agencies under section 722(g), the Secretary 
shall use a peer review process and shall evaluate whether State laws, 
policies, and practices described in such plans adequately address the 
problems of homeless children and youth relating to access to education 
and placement as described in such plans.
    ``(b) Technical Assistance.--The Secretary shall provide support 
and technical assistance to the State educational agencies to assist 
such agencies to carry out their responsibilities under this subtitle.
    ``(c) Evaluation and Dissemination.--The Secretary shall conduct 
evaluation and dissemination activities of programs designed to meet 
the educational needs of homeless elementary and secondary school 
students, and may use funds appropriated under section 726 to conduct 
such activities.
    ``(d) Submission and Distribution.--The Secretary shall require 
applications for grants under this subtitle to be submitted to the 
Secretary not later than the expiration of the 60-day period beginning 
on the date that funds are available for purposes of making such grants 
and shall make such grants not later than the expiration of the 120-day 
period beginning on such date.
    ``(e) Determination by Secretary.--The Secretary, based on the 
information received from the States and information gathered by the 
Secretary under subsection (d), shall determine the extent to which 
State educational agencies are ensuring that each homeless child and 
homeless youth has access to a free appropriate public education as 
described in section 721(1).
    ``(f) Reports.--The Secretary shall prepare and submit a report to 
the Committee on Education and Labor of the House of Representatives 
and the Committee on Labor and Human Resources of the Senate on the 
programs and activities authorized by this subtitle by December 31, 
1997, and every third year thereafter.

``SEC. 725. DEFINITIONS.

    ``For the purpose of this subtitle, unless otherwise stated--
            ``(1) the term `Secretary' means the Secretary of 
        Education; and
            ``(2) the term `State' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subtitle, there are 
authorized to be appropriate $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.''.

                      PART C--IMPACT AID STATUTES

SEC. 331. AMENDMENTS TO PUBLIC LAW 815.

    (a) Section 1.--Section 1 of the Act of September 23, 1950 (Public 
Law 815, 81st Congress; 20 U.S.C. 631) is amended--
            (1) by striking the 2nd sentence of subsection (a); and
            (2) by amending subsection (b) to read as follows:
    ``(b) There are authorized to be appropriated to carry out this Act 
$12,500,000 for fiscal year 1995 and such sums as may be necessary for 
each of the fiscal years 1996, 1997, 1998, and 1999.''.
    (b) Section 2.--Section 2 of such Act is amended to read as 
follows:

``SEC. 2. PORTION OF APPROPRIATIONS AVAILABLE FOR PAYMENTS.

    ``For each fiscal year the Secretary shall distribute the funds 
appropriated in accordance with section 1 which shall be available for 
carrying out the provisions of sections 5, 9, 10, and 14. The funds 
provided under section 1 for the schools serving military dependents 
and Indian lands shall be divided equally between section 5 and section 
14 of this Act. Funds provided under section 5 of this Act shall be 
divided equally between the priority categories of section 1(a)(1) and 
1(a)(2) of this Act.''.
    (c) Section 3.--Section 3 of such Act (20 U.S.C. 633) is amended to 
read as follows:

``SEC. 3. ESTABLISHMENT OF PRIORITIES.

    ``Applications for construction or modification projects provided 
for under this Act must be filed by June 30 of the fiscal year prior to 
the year in which funds are first requested. The Secretary shall use 
the following order of priority in approving applications under section 
5 and funded in accordance with section 1(a)(1) and section 1(a)(2) of 
this Act. The priority of payment of application under section 1(a)(1) 
shall be based on the highest percentage of number of children in need 
of minimum school facilities. The priority of payment of applications 
under section 1(a)(2) shall be based on the highest percentage of 
federally connected students eligible for payment. The Secretary shall 
use the priorities stated in this section in approving applications in 
the event the funds appropriated under section 1 of this title and 
remaining available on any such date for payment to local educational 
agencies are less than the Federal share of the cost of the projects 
with respect to which applications have been filed prior to such date 
(and for which funds under section 1 have not already been obligated). 
Only applications meeting the conditions for approval under this Act 
(other than section 6(b)(2)(C)) shall be considered applications for 
purposes of the preceding sentence. Such order of priority shall 
provide that applications payments based upon increases in the number 
of children residing on, or residing with a parent employed on property 
which is party of a low-rent housing project assisted under the United 
States Housing Act of 1937 shall not be approved for any fiscal year 
until all other applications under paragraph (2) of subsection (a) of 
section 5 have been approved for the fiscal year.''.
    (d) Section 5.--Section 5 of such Act (20 U.S.C. 635) is amended to 
read as follows:

``SEC. 5. LIMITATION ON TOTAL PAYMENTS TO ANY LOCAL EDUCATIONAL AGENCY.

    ``(a) Subject to the limitations in subsection (c) the total of the 
payments to a local educational agency under this Act may not exceed 
the sum of--
            ``(1) the estimated increase, since the base year, in the 
        number of children determined with respect to such agency who 
        live on Federal property and have a parent who works on Federal 
        property multiplied by 100 percent of the average per pupil 
        cost of constructing minimum school facilities in the State in 
        which the school district of such agency is situated;
            ``(2) the estimated increase, since the base year, in the 
        number of children determined with respect to such agency who 
        have a parent who lives on or works on Federal property 
        multiplied by 50 percent of such cost; and
            ``(3) In computing for any local educational agency the 
        number of children in an increase under paragraph (1) or (2), 
        the estimated number of children described in such paragraph 
        who will be in the membership of the schools of such agency at 
        the close of the increase period shall be compared with the 
        estimated number of such children in average daily membership 
        of the schools of such agency during the base year. However, 
        the base year average daily membership shall be adjusted to 
        exclude the number of children that formed the basis for 
        previous payments on applications approved 30 or more years 
        prior to the close of the increased period for the current 
        application.
    ``(b) If two of the paragraphs of subsection (a) apply to a child, 
the local educational agency shall elect which of such paragraphs shall 
apply to such child, except that, notwithstanding the election of a 
local educational agency to have paragraph (2) apply to a child instead 
of paragraph (1), the determination of the maximum amount for such 
agency under subsection (a) shall be made without regard to such 
election.
    ``(c) A local educational agency shall not be eligible to have any 
amount included in its maximum by reason of paragraphs (1), (2), and 
(3) of subsection (a) unless the increase in children referred to in 
such paragraph is at least 20, and in the case of paragraphs (1), (2), 
and (3) of subsection (a), is--
            ``(1) equal to at least 6 percent of the number of 
        federally connected children who were in the average daily 
        membership of the schools of such agency during the base year, 
        or
            ``(2) at least 750,
whichever is the lesser.
    ``(d) Notwithstanding the provisions of subsection (c) of this 
section, whenever and to the extent that, in his judgment, exceptional 
circumstances exist which make such action necessary to avoid inequity 
and avoid defeating the purposes of the Act, the Secretary may waive or 
reduce the minimum number requirement or any percentage requirement or 
requirements in subsection (c).
    ``(e) In determining under this section the total of the payments 
which may be made to a local educational agency on the basis of any 
application, the total number of children counted for purposes of 
paragraph (1) or (2), as the case may be, of subsection (a) may not 
exceed--
            ``(1) the number of children whose membership at the close 
        of the increase period for the application is compared with 
        average daily membership in the base period for purposes of 
        that paragraph, provided that the base year average daily 
        membership does not include any children which formed the basis 
        of payment in the applications approved 30 or more years ago, 
        minus
            ``(2) the number of such children whose membership at the 
        close of the increase period was compared with membership in 
        the base year for purposes of such paragraph under the last 
        previous application, provided the application was funded 
        within the last 4 years, if any, of the agency on the basis of 
        which any payments have been or may be made to that agency.''.
    (e) Section 6.--Section 6 of such Act (20 U.S.C. 636) is amended by 
adding at the end the following new subsection:
    ``(d) If the application has not been funded within the 3-year 
period, the local educational agency must recertify their need to have 
the application remain active.''.

SEC. 332. REPEAL OF PUBLIC LAW 874.

    The Act of September 30, 1950 (Public Law 874, 81st Congress; 20 
U.S.C. 236 et seq.) is hereby repealed.

               PART D--AMENDMENTS TO ADULT EDUCATION ACT

SEC. 335. AMENDMENTS TO ADULT EDUCATION ACT.

    (a) Section 342(c)(11) of the Adult Education Act is amended by 
inserting ``Even Start,'' after ``1963,''.
    (b) Section 384(n) is amended by striking ``and 1995'' and 
inserting ``1995, and 1996''.

          PART E--AMENDMENTS TO EDUCATION COUNCIL ACT OF 1991

SEC. 341. FINDINGS.

    Section 201 of the Education Council Act of 1991 (hereafter in this 
Act referred to as the ``Act'') is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) the writing problem has been magnified by the rapidly 
        changing student populations in the Nation's schools and the 
        growing number of students who are at risk because of limited-
        English proficiency;'';
            (2) in paragraph (6)--
                    (A) by inserting ``writing and reading are both 
                fundamental to learning, yet writing has been 
                historically neglected in the schools and colleges, 
                and'' before ``most''; and
                    (B) by striking the comma before ``have'';
            (3) by amending paragraph (10) to read as follows:
            ``(10) the National Writing Project has become a model for 
        programs to improve teaching in such other fields as 
        mathematics, science, history, literature, performing arts, and 
        foreign languages;'';
            (4) by amending paragraph (15) to read as follows:
            ``(15) each year over 100,000 teachers voluntarily seek 
        training in National Writing Project intensive summer 
        institutes and workshops and school-year in-service programs 
        through one of the 154 regional sites located in 45 States, the 
        Commonwealth of Puerto Rico, and in 4 sites that serve United 
        States teachers teaching in United States dependent and 
        independent schools;'';
            (5) by striking paragraph (17);
            (6) by redesignating paragraph (18) as paragraph (17);
            (7) in paragraph (17) (as redesignated in paragraph (6)), 
        by striking the period at the end thereof and inserting a 
        semicolon; and
            (8) by adding at the end the following new paragraphs:
            ``(18) independent evaluation studies have found the 
        National Writing Project to be highly cost effective compared 
        to other professional development programs for teachers; and
            ``(19) during 1991, the first year of Federal support for 
        the National Writing Project, the National Writing Project 
        matched the $1,951,975 in Federal support with $9,485,504 in 
        matching funds from State, local, and other sources.''.

SEC. 342. NATIONAL WRITING PROJECT.

    Section 202 of the Act is amended--
            (1) in subsection (d)--
                    (A) in paragraph (3)--
                            (i) by striking the subparagraph 
                        designation ``(A)''; and
                            (ii) by striking subparagraph (B); and
                    (B) by striking paragraph (4);
            (2) in subsection (e)--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (1), by striking ``to enable'' and inserting 
                ``to pay the Federal share of the cost of enabling''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
            ``(4) Federal share.--For the purpose of this subsection 
        the term `Federal share' means, with respect to the costs of 
        activities assisted under this subsection, 50 percent of such 
        costs to the elementary or secondary school teacher.'';
            (3) by amending subsection (g) to read as follows:
    ``(g) Evaluation.--
            ``(1) In general.--The Secretary shall conduct an 
        independent evaluation of the teacher training programs 
        assisted under this section. Such evaluation shall specify the 
        amount of funds expended by the National Writing Project and 
        each contractor receiving assistance under this section. The 
        results of such evaluation shall be made available to the 
        appropriate committees of the Congress.
            ``(2) Funding limitation.--The Secretary shall reserve not 
        more than $150,000 from the total amount appropriated pursuant 
        to the authority of subsection (i) for fiscal year 1994 and the 
        4 succeeding fiscal years to conduct the evaluation described 
        in paragraph (1).'';
            (4) by amending subsection (h) to read as follows:
    ``(h) Research and Development Activities.--
            ``(1) Grants authorized.--From amounts appropriated 
        pursuant to the authority of subsection (i)(2), the National 
        Writing Project shall make grants to individuals and 
        institutions of higher education that either have participated 
        in a National Writing Project institute or are institutions 
        designated as National Writing Project sites, to enable such 
        individuals and institutions to conduct research activities 
        involving the teaching of writing.
            ``(2) Application review.--The National Writing Project 
        shall establish and operate a National Review Board that shall 
        consist of--
                    ``(A) leaders in the field of research in writing; 
                and
                    ``(B) such other individuals as the National 
                Writing Project deems necessary.
            ``(3) Duties.--The National Review Board shall--
                    ``(A) review all applications for assistance under 
                this subsection; and
                    ``(B) recommended applications for assistance under 
                this subsection for funding by the National Writing 
                Project.
            ``(4) Junior researcher priority and funding rule.--(A) In 
        awarding grants pursuant to paragraph (1), the National Writing 
        Project shall give priority to awarding such grants to junior 
        researchers.
            ``(B) The National Writing Project shall award not less 
        than 25 percent of the funds received pursuant to subsection 
        (i)(2) to junior researchers.
            ``(5) Availability of findings.--The National Writing 
        Project shall make available to the Secretary and to the 
        network of National Writing Project sites the findings of the 
        research conducted pursuant to the authority of paragraph 
        (1).''; and
            (5) in subsection (i)--
                    (A) in paragraph (1)--
                            (i) by striking ``1991'' and inserting 
                        ``1994''; and
                            (ii) by striking ``fiscal years 1992 and 
                        1993'' and inserting ``each of the 4 succeeding 
                        fiscal years''; and
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Research and development.--In each fiscal year in 
        which the amount appropriated pursuant to the authority of 
        paragraph (1) equals or exceeds $10,000,000, there are 
        authorized to be appropriated $500,000 to carry out the 
        provisions of subsection (h).''.

     PART F--AMENDMENTS TO STATUTES PERTAINING TO INDIAN EDUCATION

SEC. 351. BUREAU OF INDIAN AFFAIRS.

    Part B of title XI of Public Law 95-561 (25 U.S.C. 2001 et seq.) is 
amended to read as follows:

              ``PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

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

    ``(a) The purpose of the standards developed under this section 
shall be to afford Indian students being served by a Bureau funded 
school with the same opportunities as all other students to achieve the 
high goals embodied in the Goals 2000: Educate America Act. Consistent 
with the provisions of this section and section 1131 of this part, the 
Secretary shall take such actions as are necessary to coordinate 
standards developed and implemented under this section with those in 
the State plans developed and implemented pursuant to the Goals 2000: 
Educate America Act for the States in which each Bureau funded school 
operates. In developing and reviewing these standards and such 
coordination, the Secretary shall utilize the findings and 
recommendations of the panel established by the Goals 2000: Educate 
America Act.
    ``(b) The Secretary, in consultation with the Secretary of 
Education, and in consultation with Indian organizations and tribes, 
shall carry out or cause to be carried out by contract with an Indian 
organization such studies and surveys, making the fullest use possible 
of other existing studies, surveys, and plans, as are necessary to 
establish and revise standards for the basic education of Indian 
children attending Bureau funded schools. Such studies and surveys 
shall take into account factors such as academic needs, local cultural 
differences, type and level of language skills, geographic isolation, 
and appropriate teacher-student ratios for such children, and shall be 
directed toward the attainment of equal eductional opportunity for such 
children.
    ``(c)(1) Within 18 months of the date of enactment of this Act, the 
Secretary shall revise the minimum academic standards published in the 
Federal Register of November 1983 for the basic education of Indian 
children which are consistent with subsections (a) and (b) of this 
section and section 1131, and shall distribute such revised standards 
in the Federal Register for the purpose of receiving comments from the 
tribes and other interested parties. Within 21 months of the date of 
enactment of the Elementary and Secondary Education Act Amendments of 
1993, the Secretary shall establish final standards, distribute such 
standards to all the tribes and publish such standards in the Federal 
Register. The Secretary shall revise such standards periodically as 
necessary. Prior to any revision of such standards, the Secretary shall 
distribute such proposed revision to all the tribes, and publish such 
proposed revision in the Federal Register, for the purpose of receiving 
comments from the tribes and other interested parties.
    ``(2) Such standards shall apply to Bureau schools, and subject to 
subsection (f), to contract and grant schools, and may also serve as a 
model for educational programs for Indian children in public schools. 
In establishing and revising such standards, the Secretary shall take 
into account the special needs of Indian students and the support and 
reinforcement of the specific cultural heritage of each tribe. Such 
standards shall include a requirement, developed in coordination with 
Indian tribes, the affected local school boards, the Indian Health 
Service of the Department of Health and Human Services, the State 
health departments, and the Centers for Disease Control and Prevention, 
on immunization for childhood diseases, including provisions for in-
school immunization, where necessary.
    ``(d) The Secretary shall provide alternative or modified standards 
in lieu of the standards established under subsection (c), where 
necessary, so that the programs of each school shall be in compliance 
with the minimum standards required for accreditation of schools in the 
State where the school is located.
    ``(e) A tribal governing body, or the local school board so 
designated by the tribal governing body, shall have the local authority 
to waive, in part or in whole, the standards established under 
subsections (c) and (d), where such standards are deemed by such body 
to be inappropriate or ill-conceived. The tribal governing body or 
designated school board shall, within 60 days thereafter, submit to the 
Secretary a proposal for alternative standards that takes into account 
the specific needs of the tribe's children. Such revised standards 
shall be established by the Secretary unless specifically rejected by 
the Secretary for good cause and in writing to the affected tribes or 
local school board, which rejection shall be final and unreviewable.
    ``(f)(1) The Secretary, through contracting and grant-making 
procedures, shall assist school boards of contract and grant schools in 
the implementation of the standards established under subsection (c) 
and (d), if the school boards request that such standards, in part or 
in whole, be implemented. At the request of a contract or grant school 
board, the Secretary shall provide alternative or modified standards 
for the standards established under subsections (c) and (d) to take 
into account the needs of the Indian children and the contract or grant 
school.
    ``(2) Within 1 year of the date of the enactment of the Indian 
Education Technical Amendments Act of 1985, the Bureau shall, either 
directly or through contract with an Indian organization, establish a 
consistent system of reporting standards for fiscal control and fund 
accounting for all contract schools. Such standards shall yield data 
results comparable to those used by Bureau schools.
    ``(g) Subject to subsections (e) and (f), the Secretary shall begin 
to implement the standards established under this section immediately 
upon the date of their establishment. No later than January 1, 1995, 
and at each time thereafter that the annual budget request for Bureau 
educational services is presented, the Secretary shall submit to the 
appropriate committees of Congress a detailed plan to bring all Bureau 
and contract and grant schools up to the level required by the 
applicable standards established under this section. Such plan shall 
include, but not be limited to, detailed information on the status of 
each school's educational program in relation to the applicable 
standards established under this section, specific cost estimates for 
meeting such standards at each school, and specific time lines for 
bringing each school up to the level required by such standards.
    ``(h)(1) Except as specifically required by statute, no school or 
peripheral dormitory operated by the Bureau of Indian Affairs on or 
after January 1, 1992, may be closed or consolidated or have its 
program substantially curtailed unless done according to the 
requirements of this subsection, except that, in those cases where the 
tribal governing body, or the local school board concerned (if so 
designated by the tribal governing body), requests closure or 
consolidation, the requirements of this subsection shall not apply. The 
requirements of this subsection shall not apply when a temporary 
closure, consolidation, or substantial curtailment is required by plant 
conditions which constitute an immediate hazard to health and safety.
    ``(2) The Secretary shall, by regulation, promulgate standards and 
procedures for the closing, consolidation, or substantial curtailment 
of Bureau schools in accordance with the requirements of this 
subsection.
    ``(3) Whenever closure, transfer to any other authority, 
consolidation, or substantial curtailment of a school is under active 
consideration or review by any division of the Bureau or the Department 
of the Interior, the affected tribe, tribal governing body, and 
designated local school board, will be notified as soon as such 
consideration or review begins, kept fully and currently informed, and 
afforded an opportunity to comment with respect to such consideration 
or review. When a formal decision is made to close, transfer to any 
other authority, consolidate, or substantially curtail a school, the 
affected tribe, tribal governing body, and designated local school 
board shall be notified at least 6 months prior to the end of the 
school year preceding the proposed effective date. Copies of any such 
notices and information shall be transmitted promptly to the Congress 
and published in the Federal Register.
    ``(4) The Secretary shall make a report to Congress, the affected 
tribe, and the designated local school board describing the process of 
the active consideration or review referred to in paragraph (3). At a 
minimum, the report shall include a study of the impact of such action 
on the student population, with every effort to identify those students 
with particular educational and social needs, and to ensure that 
alternative services are available to such students. Such report shall 
include the description of the consultation conducted between the 
potential service provider, current service provider, parents, tribal 
representative and the tribe or tribes involved, and the Director of 
the Office of Indian Education Programs within the Bureau regarding 
such students. No irreversible action may be taken in furtherance of 
any such proposed school closure, transfer to any other authority, 
consolidation, or substantial curtailment (including any action which 
would prejudice the personnel or programs of such school) until the end 
of the first full academic year after such report is made.
    ``(5) The Secretary may terminate, contract, transfer to any other 
authority, or consolidate or substantially curtail the operation or 
facilities of--
            ``(A) any Bureau funded school that is operated on or after 
        April 1, 1987,
            ``(B) any program of such a school that is operated on or 
        after April 1, 1987, or
            ``(C) any school board of a school operated under a grant 
        under the Tribally Controlled Schools Act of 1988 (Public Law 
        100-297),
only if the tribal governing body approves such action.
    ``(i) There are hereby authorized to be appropriated such sums as 
may be necessary, for academic program costs, in order to bring all 
Bureau and contract schools up to the level required by the applicable 
standards established under this section.
    ``(j)(1) All schools funded by the Bureau of Indian Affairs shall 
include within their curriculum a program of instruction relating to 
alcohol and substance abuse prevention and treatment. The Assistant 
Secretary shall provide the technical assistance necessary to develop 
and implement such a program for students in kindergarten and grades 1 
through 12, at the request of--
            ``(A) any Bureau of Indian Affairs school (subject to the 
        approval of the school board of such school);
            ``(B) any school board of a school operating under a 
        contract entered into under the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450 et seq.); or
            ``(C) any school board of a school operating under a grant 
        under the Tribally Controlled Schools Act of 1988 (Public Law 
        100-297).
    ``(2) In schools operated directly by the Bureau of Indian Affairs, 
the Secretary shall provide for--
            ``(A) accurate reporting of all incidents relating to 
        alcohol and substance abuse; and
            ``(B) individual student crisis intervention.
    ``(3) The programs requested under paragraph (1) shall be developed 
in consultation with the Indian tribe that is to be served by such 
program and health personnel in the local community of such tribe.
    ``(4) Schools requesting program assistance under this subsection 
are encouraged to involve family units and, where appropriate, tribal 
elders and Native healers in such instructions.
    ``(k) For purposes of this section, the term `tribal governing 
body' means, with respect to any school, the tribal governing body, or 
tribal governing bodies, that represent at least 90 percent of the 
students served by such school.
    ``(l)(1)(A) The Secretary shall only consider the factors described 
in subparagraphs (B) and (C) in reviewing--
            ``(i) applications from any tribe for the awarding of a 
        contract or grant for a school that is not a Bureau funded 
        school, and
            ``(ii) applications from any tribe or school board of any 
        Bureau funded school for--
                    ``(I) a school which is not a Bureau funded school; 
                or
                    ``(II) the expansion of a Bureau funded school 
                which would increase the amount of funds received by 
                the Indian tribe or school board under section 1127.
The Secretary shall give consideration to all of such factors, but none 
of such applications may be denied based primarily upon the geographic 
proximity of public education.
    ``(B) The Secretary shall consider the following factors relating 
to the program that is the subject of an application described in 
subparagraph (A):
            ``(i) The adequacy of facilities or the potential to obtain 
        or provide adequate facilities.
            ``(ii) Geographic and demographic factors in the affected 
        areas.
            ``(iii) Adequacy of the applicant's program plans or, in 
        the case of a Bureau funded school, of projected needs analysis 
        done either by a tribe or by Bureau personnel.
            ``(iv) Geographic proximity of comparable public education.
            ``(v) The stated needs of all affected parties, including 
        (but not limited to) students, families, tribal governments at 
        both the central and local levels, and school organizations.
    ``(C) The Secretary shall consider with respect to applications 
described in subparagraph (A) the following factors relating to all the 
educational services available at the time the application is 
considered:
            ``(i) Geographic and demographic factors in the affected 
        areas.
            ``(ii) Adequacy and comparability of programs already 
        available.
            ``(iii) Consistency of available programs with tribal 
        educational codes or tribal legislation on education.
            ``(iv) The history and success of these services for the 
        proposed population to be served, as determined from all 
        factors and not just standardized examination performance.
    ``(2)(A) The Secretary shall make a determination of whether to 
approve any application described in paragraph (1)(A) by no later than 
the date that is 180 days after the day on which such application is 
submitted to the Secretary.
    ``(B) If the Secretary fails to make the determination described in 
subparagraph (A) with respect to an application by the date described 
in subparagraph (A), the application shall be treated as having been 
approved by the Secretary.
    ``(3)(A) Any application described in paragraph (1)(A) may be 
submitted to the Secretary only if--
            ``(i) the application has been approved by the tribal 
        governing body of the students served by (or to be served by) 
        the school or program that is the subject of the application, 
        and
            ``(ii) written evidence of such approval is submitted with 
        the application.
    ``(B) Each application described in paragraph (1)(A)--
            ``(i) shall provide information concerning each of the 
        factors described in paragraph (1)(B), and
            ``(ii) may provide information concerning the factors 
        described in paragraph (1)(C).
    ``(4) Whenever the Secretary makes a determination to deny approval 
of any application described in paragraph (1)(A), the Secretary shall--
            ``(A) state the objections in writing to the applicant by 
        no later than the date that is 180 days after the day on which 
        the application is submitted to the Secretary,
            ``(B) provide assistance to the applicant to overcome 
        stated objections, and
            ``(C) provide the applicant a hearing, under the same rules 
        and regulations pertaining to the Indian Self-Determination and 
        Education Assistance Act, and an opportunity to appeal the 
        objections raised by the Secretary.
    ``(5)(A) Except as otherwise provided in this paragraph, the action 
which is the subject of any application described in paragraph (1)(A) 
that is approved by the Secretary shall become effective with the 
commencement of the academic year succeeding the fiscal year in which 
the application is approved, or at an earlier date determined by the 
Secretary.
    ``(B) If an application is treated as having been approved by the 
Secretary by reason of paragraph (2)(B), the action that is the subject 
of the application shall become effective on the date that is 18 months 
after the date on which the application is submitted to the Secretary, 
or at an earlier date determined by the Secretary.

``SEC. 1122. NATIONAL CRITERIA FOR DORMITORY SITUATIONS.

    ``(a) The Secretary, in consultation with the Secretary of the 
Department of Education, and in consultation with Indian organizations 
and tribes, shall conduct or cause to be conducted by contract with an 
Indian organization, a study of the costs applicable to boarding 
arrangements for Indian students provided in Bureau and contract and 
grant schools, for the purpose of establishing national criteria for 
such dormitory situations. Such criteria shall include adult-child 
ratios, needs for counselors (including special needs related to off-
reservation boarding arrangements), space, and privacy.
    ``(b) No later than January 1, 1996, the Secretary shall propose 
such criteria, and shall distribute such proposed criteria to the 
tribes and publish such proposed criteria in the Federal Register for 
the purpose of receiving comments from the tribes and other interested 
parties. Within eighteen months of the date of the enactment of this 
Act, the Secretary shall establish final criteria, distribute such 
criteria to all the tribes, and publish such criteria in the Federal 
Register. The Secretary shall revise such criteria periodically as 
necessary. Any revisions to the standards established under this 
section shall be developed subject to requirements established under 
section 1131.
    ``(c) The Secretary shall begin to implement the criteria 
established under this section immediately upon the date of their 
establishment. No later than January 1, 1981, and at each time 
thereafter that the annual budget request for Bureau educational 
services is presented, the Secretary shall submit to the appropriate 
committees of Congress a detailed plan to bring all Bureau and contract 
boarding schools up to the criteria established under this section. 
Such plan shall include, but not be limited to, predictions for the 
relative need for each boarding school in the future, detailed 
information on the status of each school in relation to the criteria 
established under this section, specific cost estimates for meeting 
such criteria at each school, and specific time lines for bringing each 
school up to the level required by such criteria.
    ``(d)(1) The criteria established under this section may be waived 
in the same manner as the standards provided under section 1121(c) may 
be waived under section 1121(e).
    ``(2) No school in operation on or before January 1, 1987 
(regardless of compliance or noncompliance with the criteria 
established under this section) may be closed, transferred to another 
authority, consolidated or have its program substantially curtailed for 
failure to meet the criteria.
    ``(3) By no later than May 1, 1996, the Secretary shall submit to 
the Congress a report detailing the costs associated with, and the 
actions necessary for, complete compliance with the criteria 
established under this section.
    ``(e) There are hereby authorized to be appropriated such sums as 
may be necessary in order to bring each school up to the level required 
by the criteria established under this section.

``SEC. 1123. REGULATIONS.

    ``(a) The provisions of part 32 of title 25 of the Code of Federal 
Regulations, as in effect on January 1, 1987, are hereby incorporated 
into this Act and shall be treated as though such provisions are set 
forth in this subsection. Accordingly, such provisions may be altered 
only by means of an amendment to this subsection that is contained in 
an Act or joint resolution which is enacted into law. To the extent 
that such provisions of part 32 do not conform with this Act or any 
statutory provision of law enacted before the date of enactment of this 
Act, the provisions of this Act and the provisions of such other 
statutory law shall govern.
    ``(b) The provisions of parts 31, 33, 36, 39, 42, and 43 of title 
25 of the Code of Federal Regulations, as in effect on January 1, 1987, 
shall be applied by the Federal Government and shall not, before July 
1, 1989, be amended, revoked, or altered in any manner. No officer or 
employee of the Executive Branch shall have the authority to issue any 
other regulations, prior to July 1, 1989, that supersede, supplement, 
or otherwise affect the provisions of such parts. To the extent that 
the provisions of such parts do not conform with this Act or any 
statutory provision of law enacted before the date of enactment of this 
Act, the provisions of this Act and the provisions of such other 
statutory law shall govern.
    ``(c) After June 30, 1989, no regulation prescribed for the 
application of any program provided under this title shall become 
effective unless--
            ``(1) the regulation has been published as a proposed 
        regulation in the Federal Register,
            ``(2) an opportunity of no less than 90 days has been 
        afforded the public to comment on the published proposed 
        regulation, and
            ``(3) the regulation has, after such period for public 
        comment, been published in the Federal Register as a final 
        regulation.
    ``(d) For purposes of this section, the term `regulation' means any 
rules, regulations, guidelines, interpretations, orders, or 
requirements of general applicability prescribed by any officer or 
employee of the Executive Branch.

``SEC. 1124. SCHOOL BOUNDARIES.

    ``(a) The Secretary shall, in accordance with this section, 
establish separate geographical attendance areas for each Bureau 
school.
    ``(b)(1) Except as provided in paragraph (2), on or after July 1, 
1985, no attendance area shall be changed or established with respect 
to any such school unless the tribal governing body or the local school 
board concerned (if so designated by the tribal governing body) has 
been (i) afforded at least six months notice of the intention of the 
Bureau to change or establish such attendance area, and (ii) given the 
opportunity to propose alternative boundaries. Any tribe may petition 
the Secretary for revision of existing attendance area boundaries. The 
Secretary shall accept such proposed alternative or revised boundaries 
unless the Secretary finds, after consultation with the affected tribe 
or tribes, that such revised boundaries do not reflect the needs of the 
Indian students to be served or do not provide adequate stability to 
all of the affected programs.
    ``(2) In any case where there is more than 1 Bureau funded school 
located on an Indian reservation, at the direction of the tribal 
governing body, the relevant school boards of the Bureau funded schools 
on the reservation may, by mutual consent, establish the relevant 
attendance areas for such schools, subject to the approval of the 
tribal governing body. Any such boundaries so established shall be 
accepted by the Secretary.
    ``(c) In any case where there is only 1 Bureau operated program 
located on an Indian reservation, the attendance area for the program 
shall be the boundaries of the reservation served, and those students 
residing near the reservation shall also receive services from such 
program.
    ``(d) The Bureau of Indian Affairs shall include in the final rules 
the requirement that each appropriate education line officer coordinate 
and consult with the affected tribes and relevant school boards in the 
establishment of such geographic boundaries.

``SEC. 1125. FACILITIES CONSTRUCTION.

    ``(a) The Secretary shall immediately begin to bring all schools, 
dormitories, and other facilities operated by the Bureau or under 
contract or grant with the Bureau in connection with the education of 
Indian children into compliance with all applicable Federal, tribal, or 
State health and safety standards, whichever provide greater protection 
(except that the tribal standards to be applied shall be no greater 
than any otherwise applicable Federal or State standards), and with 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and with 
the Americans with Disabilities Act of 1990, except that nothing in 
this section shall require termination of the operations of any 
facility which does not comply with such provisions and which is in use 
on the date of enactment of this Act.
    ``(b) By January 1, 1996, and at each time thereafter that the 
annual budget request for Bureau educational services is presented, the 
Secretary shall submit to the appropriate committees of Congress a 
detailed plan to bring such facilities into compliance with such 
standards. Such plan shall include, but not be limited to, detailed 
information on the status of each facility's compliance with such 
standards, specific cost estimates for meeting such standards at each 
school, and specific time lines for bringing each school into 
compliance with such standards.
    ``(c) Within six months of the date of enactment of this Act, the 
Secretary shall submit to the appropriate committees of Congress, and 
publish in the Federal Register, the system used to establish 
priorities for school construction projects. At the time any budget 
request for school construction is presented, the Secretary shall 
publish in the Federal Register and submit with the budget request the 
current list of all school construction priorities.
    ``(d)(1) A Bureau school may be closed or consolidated, and the 
programs of a Bureau school may be substantially curtailed, by reason 
of plant conditions that constitute an immediate hazard to health and 
safety only if a health and safety officer of the Bureau determines 
that such conditions exist at the Bureau school.
    ``(2)(A) In making determinations described in paragraph (1) before 
July 1, 1989, health and safety officers of the Bureau shall use the 
health and safety guidelines of the Bureau that were in effect on 
January 1, 1988.
    ``(B)(i) If--
            ``(I) the Secretary fails to publish in the Federal 
        Register in final form before July 1, 1989, and
            ``(II) action described in paragraph (1) is taken after 
        June 30, 1989, and before the date on which such regulations 
        are published in final form in the Federal Register by reason 
        of the condition of any plant,
an inspection of the condition of such plant shall be conducted by an 
appropriate tribal, county, municipal, or State health and safety 
officer to determine whether conditions at such plant constitute an 
immediate hazard to health and safety. Such inspection shall be 
completed by no later than the date that is 30 days after the date on 
which the action described in paragraph (1) is taken.
    ``(ii) The inspection required under clause (i) shall be conducted 
by a health and safety officer designated jointly by the Secretary and 
the tribes affected by the action described in paragraph (1). If the 
Secretary and such tribes are unable to agree on the designation of the 
health and safety officer, the Secretary shall designate the health and 
safety officer and shall provide notice of such designation to each of 
such tribes before the inspection is conducted by such officer.
    ``(iii) If the health and safety officer conducting an inspection 
of a plant required under clause (i) determines that conditions at the 
plant do not constitute an immediate hazard to health and safety, any 
consolidation or curtailment that was made by reason of conditions at 
the plant shall immediately cease and any school closed by reason of 
conditions at the plant shall be reopened immediately.
    ``(3) If--
            ``(A) a Bureau school is temporarily closed or 
        consolidated, or the programs of a Bureau school are 
        substantially curtailed, by reason of plant conditions that 
        constitute an immediate hazard to health and safety, and
            ``(B) the Secretary estimates that the closure, 
        consolidation, or curtailment will be more than 1 year in 
        duration,
the Secretary shall submit to the Congress, by no later than the date 
that is 6 months after the date on which the closure, consolidation, or 
curtailment is initiated, a report which sets forth the reasons for 
such temporary actions and the actions the Secretary is taking to 
eliminate the conditions that constitute the hazard.
    ``(e) There are hereby authorized to be appropriated such sums as 
may be necessary to carry out subsection (a).

``SEC. 1126. BUREAU OF INDIAN AFFAIRS EDUCATION FUNCTIONS.

    ``(a) The Secretary shall vest in the Assistant Secretary for 
Indian Affairs all functions with respect to formulation and 
establishment of policy and procedure, and supervision of programs and 
expenditures of Federal funds for the purpose of Indian education 
administered by the Bureau. The Assistant Secretary shall carry out 
such functions through the Director of the Office of Indian Education.
    ``(b) The Director of the Office shall direct and supervise the 
operations of all personnel directly and substantially involved with 
provision of education services by the Bureau, including (but not 
limited to) school or institution custodial or maintenance personnel. 
The Assistant Secretary for Indian Affairs shall provide for the 
adequate coordination between the affected Bureau Offices and the 
Office to facilitate the consideration of all contract functions 
relating to education. Except as required by section 1129(d), nothing 
in this Act shall be construed to require the provision of separate 
support services for Indian education.
    ``(c) Education personnel who are under the direction and 
supervision of the Director of the Office in accordance with the first 
sentence of subsection (b) shall--
            ``(1) monitor and evaluate Bureau education programs,
            ``(2) provide all services and support functions for 
        education programs with respect to personnel matters involving 
        staffing actions and functions, and
            ``(3) provide technical and coordinating assistance in 
        areas such as procurement, contracting, budgeting, personnel, 
        and curriculum.
    ``(d)(1) The Assistant Secretary shall submit in the annual Budget 
a plan--
            ``(A) for school facilities to be constructed under the 
        system required by section 1125(c);
            ``(B) for establishing priorities among projects and for 
        the improvement and repair of education facilities, which 
        together shall form the basis for the distribution of 
        appropriated funds; and
            ``(C) including a 5-year plan for capital improvements.
    ``(2) The Assistant Secretary shall establish a program, including 
the distribution of appropriated funds, for the operation and 
maintenance of education facilities. Such program shall include, but 
not be limited to--
            ``(A) a method of computing the amount necessary for each 
        education facility;
            ``(B) similar treatment of all Bureau funded schools;
            ``(C) a notice of an allocation of appropriated funds from 
        the Director of the Office directly to the appropriate 
        education line officers; and
            ``(D) a system for the conduct of routine preventive 
        maintenance.
The appropriate education line officers shall make arrangements for the 
maintenance of education facilities with the local supervisors of the 
Bureau maintenance personnel who are under the authority of the agency 
superintendent or area directors, respectively. The local supervisors 
of Bureau maintenance personnel shall take appropriate action to 
implement the decisions made in this regard by the appropriate 
education line officers, except that no funds from this program may be 
authorized for expenditure unless such appropriate education line 
officer is assured that the necessary maintenance has been, or will be, 
provided in a reasonable manner. Subject to the requirements of 
subsection (b) of this section, nothing in this Act shall be construed 
to require the provision of separate operations and maintenance 
personnel for the Office.
    ``(3) The requirements of this subsection shall be implemented no 
later than July 1, 1995.
    ``(e) Any other provision of law notwithstanding, the Director 
shall promulgate guidelines for the establishment of mechanisms for the 
acceptance of gifts and bequests for the use of, and benefit of, 
particular schools or designated Bureau operated education programs, 
including, where appropriate, the establishment and administration of 
trust funds. When a Bureau operated program is the beneficiary of such 
a gift or bequest, the Director shall make provisions for monitoring 
its use, and shall report to the appropriate committees of Congress the 
amount and terms of such gift and bequest, the use to which it is put, 
and any positive results achieved by such action.
    ``(f) For the purpose of this section the term `functions' includes 
powers and duties.

``SEC. 1127. ALLOTMENT FORMULA.

    ``(a) The Secretary shall establish, by regulation adopted in 
accordance with section 1139, a formula for determining the minimum 
annual amount of funds necessary to sustain each Bureau funded school. 
In establishing such formula, the Secretary shall consider--
            ``(1) the number of eligible Indian students served and 
        size of the school;
            ``(2) special cost factors, such as--
                    ``(A) isolation of the school;
                    ``(B) need for special staffing, transportation, or 
                educational programs;
                    ``(C) food and housing costs;
                    ``(D) maintenance and repair costs associated with 
                the physical condition of the educational facilities;
                    ``(E) special transportation and other costs of 
                isolated and small schools;
                    ``(F) the costs of boarding arrangements, where 
                determined necessary by a tribal governing body or 
                designated local school board;
                    ``(G) costs associated with greater lengths of 
                service by educational personnel; and
                    ``(H) special programs for gifted and talented 
                students;
            ``(3) the cost of providing academic services which are at 
        least equivalent to those provided by public schools in the 
        State in which the school is located; and
            ``(4) such other relevant factors as the Secretary 
        determines are appropriate.
Upon the establishment of the standards required by sections 1121 and 
1122 of this Act, the Secretary shall revise the formula established 
under this subsection to reflect the cost and funding standards so 
established. Prior to January 1, 1995, the Secretary shall review the 
formula established under this section and shall take such steps as may 
be necessary to increase the availability of counseling services for 
students in off-reservation boarding schools and other Bureau operated 
residential facilities. Concurrent with such action, the Secretary 
shall review the standards established under section 1121 of this title 
to be certain that adequate provision is made for parental notification 
regarding, and consent for, such counseling services.
    ``(b) Notwithstanding any other provisions of law, Federal funds 
appropriated for the general local operation of Bureau funded schools, 
shall be allotted pro rata in accordance with the formula established 
under subsection (a).
    ``(c)(1) For fiscal year 1990, and for each subsequent fiscal year, 
the Secretary shall adjust the formula established under subsection (a) 
to--
            ``(A) use a weighted unit of 1.2 for each eligible Indian 
        student enrolled in the seventh and eighth grades of the school 
        in considering the number of eligible Indian students served by 
        the school;
            ``(B) consider a school with an enrollment of less than 50 
        eligible Indian students as having an average daily attendance 
        of 50 eligible Indian students for purposes of implementing the 
        adjustment factor for small schools; and
            ``(C) take into account the provision of residential 
        services on a less than 9-month basis at a school when the 
        school board and supervisor of the school determine that a less 
        than 9-month basis will be implemented for the school year 
        involved.
    ``(2)(A) The Secretary shall reserve for national school board 
training 0.2 percent of the funds appropriated for each fiscal year for 
distribution under this section. Such training shall be conducted 
through the same organizations through which, and in the same manner in 
which, the training was conducted in fiscal year 1992. If the contract 
for such training is not awarded before May 1 of each fiscal year, the 
contract under which such training was provided for the fiscal year 
preceding such fiscal year shall be renewed by the Secretary for such 
fiscal year. The agenda for the training sessions shall be established 
by the school boards through their regional or national organizations.
    ``(B) For each year in which the Secretary uses a weighted unit 
formula established under subsection (a) to fund Bureau schools, a 
Bureau school which generates less than 168 weighted units shall 
receive an additional 2 weighted units to defray school board 
activities.
    ``(C) From the funds allotted in accordance with the formula 
established under subsection (a) for each Bureau school, the local 
school board of such school may reserve an amount which does not exceed 
the greater of--
            ``(i) $5,000, or
            ``(ii) the lesser of--
                    ``(I) $15,000, or
                    ``(II) 1 percent of such allotted funds,
for school board activities for such school, including but not limited 
to, and notwithstanding any other provision of law, meeting expenses 
and the cost of membership in, and support of, organizations engaged in 
activities on behalf of Indian education.
    ``(3)(A) The Secretary shall adjust the formula established under 
subsection (a) to use a weighted unit of 2.0 for each eligible Indian 
student that--
            ``(i) is gifted and talented (as determined pursuant to 
        section 6204 of the Indian Education Act of 1988), and
            ``(ii) is enrolled in the school on a full-time basis,
in considering the number of eligible Indian students served by the 
school.
    ``(B) The adjustment required under subparagraph (A) shall be used 
for the later of the following fiscal years and for each fiscal year 
succeeding such later fiscal year--
            ``(i) the second fiscal year succeeding the fiscal year in 
        which the Secretary of Education makes the report required 
        under section 6204(c)(6)(B) of the Indian Education Act of 
        1988, or
            ``(ii) the first fiscal year for which an increase in the 
        amount of funds appropriated for allotment under this section 
        is designated by the law that appropriates such funds as the 
        amount necessary to implement such adjustment without reducing 
        allotments made under this section to any school.
    ``(d) The Secretary shall reserve from the funds available for 
distribution for each fiscal year under this section an amount which, 
in the aggregate, shall equal 1 percent of the funds available for such 
purpose for that fiscal year. Such funds shall be used, at the 
discretion of the Director of the Office, to meet emergencies and 
unforeseen contingencies affecting the education programs funded under 
this section. Funds reserved under this subsection may only be expended 
for education services or programs at a schoolsite (as defined in 
section 5204(c)(2) of the Tribally Controlled Schools Act of 1988). 
Funds reserved under this subsection shall remain available without 
fiscal year limitation until expended. However, the aggregate amount 
available from all fiscal years may not exceed 1 percent of the current 
year funds. Whenever the Secretary makes funds available under this 
subsection, the Secretary shall report such action to the appropriate 
committees of Congress within the annual budget submission.
    ``(e) Supplemental appropriations enacted to meet increased pay 
costs attributable to school level personnel shall be distributed under 
this section.
    ``(f) In this section `eligible Indian student' means a student 
who--
            ``(1) is a member of or is at least a \1/4\ degree Indian 
        blood descendant of a member of an Indian tribe which is 
        eligible for the special programs and services provided by the 
        United States through the Bureau of Indian Affairs to Indians 
        because of their status as Indians, and
            ``(2) resides on or near an Indian reservation or meets the 
        criteria for attendance at a Bureau off-reservation boarding 
        school.
    ``(g)(1) An eligible Indian student may not be charged tuition for 
attendance at a Bureau or contract school. A student attending a Bureau 
school under clause (2)(C) of this subsection may not be charged 
tuition.
    ``(2) The Secretary may permit the attendance at a Bureau school of 
a student who is not an eligible Indian student if--
            ``(A) the Secretary determines that the student's 
        attendance will not adversely affect the school's program for 
        eligible Indian students because of cost, overcrowding, or 
        violation of standards,
            ``(B) the school board consents, and
            ``(C) the student is a dependent of a Bureau, Indian Health 
        Service, or tribal government employee who lives on or near the 
        school site, or
            ``(D) a tuition is paid for the student that is not more 
        than that charged by the nearest public school district for 
        out-of-district students. The tuition collected is in addition 
        to the school's allocation under this section.
    ``(3) The school board of a contract school or grant school may 
permit students who are not eligible Indian students under this 
subsection to attend its contract school or grant school and any 
tuition collected for those students is in addition to funding under 
this section.
    ``(h)(1) The Secretary shall conduct, through contact or 
cooperative agreement with an entity having proven expertise in the 
field of school finance, and after consultation with tribes and 
national Indian organizations, a study to determine the feasibility and 
desirability of changing the method of financing for Bureau funded 
schools from the weighted student unit formula method in effect on the 
date of enactment of this Act to a school based budget system of 
financing. The Assistant Secretary shall take such steps as are 
necessary to immediately implement this provision.
    ``(2) For the purposes of this study, the term `school-based budget 
system' means a system based upon an initial determination, at each 
school site, of the number of students who shall be served at the site, 
the needs of those students, the standards which will best meet those 
needs (including any standards or conditions reflecting local community 
input and the program developed under this part), the personnel profile 
necessary to establish such program and the cost (determined on an 
actual basis) of funding such a program. Such a system would include 
procedures to aggregate the determinations for each school site to 
determine the amount needed to fund all Bureau-funded schools, to 
prepare a budget submission based upon such aggregate and would provide 
for a mechanism for distributing such sums as may be appropriated based 
upon the determination at each school site.
    ``(3) No later than January 20, 1996, the Secretary shall transmit 
to the Committees on Education and Labor and Appropriations of the 
House of Representatives and the Committees on Indian Affairs and 
Appropriations of the Senate of the United States the study required 
under this subsection, along with any views or comments of the 
Secretary on such study.
    ``(i) Any other provision of law notwithstanding, at the election 
of the school board made at any time during the fiscal year, a portion 
equal to no more than 15 percent of the funds allocated with respect to 
a school under this section for any fiscal year shall remain available 
to the school for expenditure without fiscal year limitation. The 
Assistant Secretary shall take steps as may be necessary to implement 
this provision immediately.
    ``(j) Tuition for the out-of-State students boarding at the 
Richfield Dormitory in Richfield, Utah, who attend Sevier County high 
schools in Richfield, Utah, may be paid from the Indian School 
Equalization Program funds at a rate not to exceed the amount per 
Weighted Student Unit for that year for instruction. No additional 
administrative cost funds will be added to the grant.

``SEC. 1128. ADMINISTRATIVE COST GRANTS.

    ``(a)(1) The Secretary shall, subject to the availability of 
appropriated funds, provide grants to each tribe or tribal organization 
operating a contract or grant school in the amount determined under 
this section with respect to the tribe or tribal organization for the 
purpose of paying the administrative and indirect costs incurred in 
operating contract schools in order to--
            ``(A) enable tribes and tribal organizations operating such 
        schools, without reducing direct program services to the 
        beneficiaries of the program, to provide all related 
        administrative overhead services and operations necessary to 
        meet the requirements of law and prudent management practice, 
        and
            ``(B) carry out other necessary support functions which 
        would otherwise be provided by the Secretary or other Federal 
        officers or employees, from resources other than direct program 
        funds, in support of comparable Bureau operated programs.
    ``(2) Amounts appropriated to fund the grants provided under this 
section shall be in addition to, and shall not reduce, the amounts 
appropriated for the program being administered by the contract 
schools.
    ``(b)(1) The amount of the grant provided to each tribe or tribal 
organization under this section for each fiscal year shall be 
determined by applying the administrative cost percentage rate of the 
tribe or tribal organization to the aggregate of the Bureau elementary 
and secondary functions operated by the tribe or tribal organization 
for which funds are received from or through the Bureau. The 
administrative cost percentage rate determined under subsection (c) 
does not apply to other programs operated by the tribe or tribal 
organization.
    ``(2) The Secretary shall--
            ``(A) reduce the amount of the grant determined under 
        paragraph (1) to the extent that payments for administrative 
        costs are actually received by an Indian tribe or tribal 
        organization under any Federal education program included in 
        the direct cost base of the tribe or tribal organization, and
            ``(B) take such actions as may be necessary to be 
        reimbursed by any other department or agency of the Federal 
        Government for the portion of grants made under this section 
        for the costs of administering any program for Indians that is 
        funded by appropriations made to such other department or 
        agency.
    ``(c) For purposes of this section, the administrative cost 
percentage rate for a contract or grant school for a fiscal year is 
equal to the percentage determined by dividing--
            ``(1) the sum of--
                    ``(A) the amount equal to--
                            ``(i) the direct cost base of the tribe or 
                        tribal organization for the fiscal year, 
                        multiplied by
                            ``(ii) the minimum base rate, plus
                    ``(B) the amount equal to--
                            ``(i) the standard direct cost base, 
                        multiplied by
                            ``(ii) the maximum base rate, by
            ``(2) the sum of--
                    ``(A) the direct cost base of the tribe or tribal 
                organization for the fiscal year, plus
                    ``(B) the standard direct cost base.
The administrative cost percentage rate shall be determined to the \1/
100\ of a decimal point.
    ``(d)(1)(A) Funds received by a tribe or contract or grant school 
as grants under this section for tribal elementary or secondary 
educational programs may be combined by the tribe or contract school 
into a single administrative cost account without the necessity of 
maintaining separate funding source accounting.
    ``(B) Indirect cost funds for programs at the school which share 
common administrative services with tribal elementary or secondary 
educational programs may be included in the administrative cost account 
described in subparagraph (A).
    ``(2) Funds received as grants under this section with respect to 
tribal elementary or secondary education programs shall remain 
available to the contract or grant school without fiscal year 
limitation and without diminishing the amount of any grants otherwise 
payable to the school under this section for any fiscal year beginning 
after the fiscal year for which the grant is provided.
    ``(3) Funds received as grants under this section for Bureau funded 
programs operated by a tribe or tribal organization under a contract or 
agreement shall not be taken into consideration for purposes of 
indirect cost underrecovery and overrecovery determinations by any 
Federal agency for any other funds, from whatever source derived.
    ``(4) In applying this section and section 106 of the Indian Self-
Determination and Education Assistance Act with respect to an Indian 
tribe or tribal organization that--
            ``(A) receives funds under this section for administrative 
        costs incurred in operating a contract school or a school 
        operated under the Tribally Controlled Schools Act of 1988, and
            ``(B) operates 1 or more other programs under a contract or 
        grant provided under the Indian Self-Determination and 
        Education Assistance Act,
the Secretary shall ensure that the Indian tribe or tribal organization 
is provided with the full amount of the administrative costs, and of 
the indirect costs, that are associated with operating the contract 
school, a school operated under the Tribally Controlled Schools Act of 
1988, and all of such other programs, except that funds appropriated 
for implementation of this section shall be used only to supply the 
amount of the grant required to be provided by this section.
    ``(e) For purposes of this section--
            ``(1)(A) The term `administrative cost' means the costs of 
        necessary administrative functions which--
                    ``(i) the tribe or tribal organization incurs as a 
                result of operating a tribal elementary or secondary 
                educational program,
                    ``(ii) are not customarily paid by comparable 
                Bureau operated programs out of direct program funds, 
                and
                    ``(iii) are either--
                            ``(I) normally provided for comparable 
                        Bureau programs by Federal officials using 
                        resources other than Bureau direct program 
                        funds, or
                            ``(II) are otherwise required of tribal 
                        self-determination program operators by law or 
                        prudent management practice.
            ``(B) The term `administrative cost' may include, but is 
        not necessarily limited to--
                    ``(i) contract (or other agreement) administration;
                    ``(ii) executive, policy, and corporate leadership 
                and decisionmaking;
                    ``(iii) program planning, development, and 
                management;
                    ``(iv) fiscal, personnel, property, and procurement 
                management;
                    ``(v) related office services and record keeping; 
                and
                    ``(vi) costs of necessary insurance, auditing, 
                legal, safety and security services.
            ``(2) The term `Bureau elementary and secondary functions' 
        means--
                    ``(A) all functions funded at Bureau schools by the 
                Office of Indian Education Programs of the Bureau;
                    ``(B) all programs--
                            ``(i) funds for which are appropriated to 
                        other agencies of the Federal Government, and
                            ``(ii) which are administered for the 
                        benefit of Indians through Bureau schools; and
                    ``(C) all operation, maintenance, and repair funds 
                for facilities and government quarters used in the 
                operation or support of elementary and secondary 
                education functions for the benefit of Indians, from 
                whatever source derived.
            ``(3) The term `tribal elementary or secondary educational 
        programs' means all Bureau elementary and secondary functions, 
        together with any other Bureau programs or portions of programs 
        (excluding funds for social services that are appropriated to 
        agencies other than the Bureau and are expended through the 
        Bureau, funds for major subcontracts, construction, and other 
        major capital expenditures, and unexpended funds carried over 
        from prior years) which share common administrative cost 
        functions, that are operated directly by a tribe or tribal 
        organization under a contract or agreement with the Bureau.
            ``(4)(A) Except as otherwise provided in this paragraph, 
        the direct cost base of a tribe or tribal organization for the 
        fiscal year is the aggregate direct cost program funding for 
        all tribal elementary or secondary educational programs 
        operated by the tribe or tribal organization during--
                    ``(i) the second fiscal year preceding such fiscal 
                year, or
                    ``(ii) if such programs have not been operated by 
                the tribe or tribal organization during the 2 preceding 
                fiscal years, the first fiscal year preceding such 
                fiscal year.
            ``(B) In the case of Bureau elementary or secondary 
        education functions which have not previously been operated by 
        a tribe or tribal organization under contract or agreement with 
        the Bureau, the direct cost base for the initial year shall be 
        the projected aggregate direct cost program funding for all 
        Bureau elementary and secondary functions to be operated by the 
        tribe or tribal organization during that fiscal year.
            ``(5) The term `maximum base rate' means 50 percent.
            ``(6) The term `minimum base rate' means 11 percent.
            ``(7) The term `standard direct cost base' means $600,000.
    ``(f)(1) Upon the enactment of the Indian Education Amendments of 
1988, the Secretary shall--
            ``(A) conduct such studies as may be needed to establish an 
        empirical basis for determining relevant factors substantially 
        affecting the required administrative costs of tribal 
        elementary and secondary educational programs, using the 
        formula set forth in subsection (c), and
            ``(B) a study to determine--
                    ``(i) a maximum base rate which ensures that the 
                amount of the grants provided under this section will 
                provide adequate (but not excessive) funding of the 
                administrative costs of the smallest tribal elementary 
                or secondary educational programs,
                    ``(ii) a minimum base rate which ensures that the 
                amount of the grants provided under this section will 
                provide adequate (but not excessive) funding of the 
                administrative costs of the largest tribal elementary 
                or secondary educational programs, and
                    ``(iii) a standard direct cost base which is the 
                aggregate direct cost funding level for which the 
                percentage determined under subsection (c) will--
                            ``(I) be equal to the median between the 
                        maximum base rate and the minimum base rate, 
                        and
                            ``(II) ensure that the amount of the grants 
                        provided under this section will provide 
                        adequate (but not excessive) funding of the 
                        administrative costs of tribal elementary or 
                        secondary educational programs closest to the 
                        size of the program.
    ``(2) The studies required under paragraph (1) shall--
            ``(A) be conducted in full consultation (in accordance with 
        section 1130) with--
                    ``(i) the tribes and tribal organizations that are 
                affected by the application of the formula set forth in 
                subsection (c), and
                    ``(ii) all national and regional Indian 
                organizations of which such tribes and tribal 
                organizations are typically members;
            ``(B) be conducted on-site at a representative statistical 
        sample of the tribal elementary or secondary educational 
        programs under a contract entered into with a nationally 
        reputable public accounting and business consulting firm;
            ``(C) take into account the availability of skilled labor, 
        commodities, business and automatic data processing services, 
        related Indian preference and Indian control of education 
        requirements, and any other market factors found substantially 
        to affect the administrative costs and efficiency of each such 
        tribal elementary or secondary educational program studied in 
        order to assure that all required administrative activities can 
        reasonably be delivered in a cost effective manner for each 
        such program, given an administrative cost allowance generated 
        by the values, percentages, or other factors found in the 
        studies to be relevant in such formula;
            ``(D) identify, and quantify in terms of percentages of 
        direct program costs, any general factors arising from 
        geographic isolation, or numbers of programs administered, 
        independent of program size factors used to compute a base 
        administrative cost percentage in such formula; and
            ``(E) identify any other incremental cost factors 
        substantially affecting the costs of required administrative 
        cost functions at any of the tribal elementary or secondary 
        educational programs studied and determine whether the factors 
        are of general applicability to other such programs, and (if 
        so) how they may effectively be incorporated into such formula.
    ``(3) In carrying out the studies required under this subsection, 
the Secretary shall obtain the input of, and afford an opportunity to 
participate to, the Inspector General of the Department of the 
Interior.
    ``(4) Determinations described in paragraph (2)(C) shall be based 
on what is pragmatically possible to do at each location studied, given 
prudent management practice, irrespective of whether required 
administrative services were actually or fully delivered at these 
sites, or other services were delivered instead, during the period of 
the study.
    ``(5) Upon completion of the studies conducted under paragraph (1), 
but in no case later than October 1, 1989, the Secretary shall submit 
to the Congress a report on the findings of the studies, together with 
determinations based upon such findings that would affect the 
definitions of terms used in the formula that is set forth in 
subsection (c).
    ``(6) The Secretary shall include in the Bureau's justification for 
each appropriations request for each fiscal year beginning after fiscal 
year 1989, a projection of the overall costs associated with the 
formula set forth in subsection (c) for all tribal elementary or 
secondary educational programs which the Secretary expects to be funded 
in the fiscal year for which the appropriations are sought.
    ``(7) For purposes of this subsection, the size of tribal 
elementary or secondary educational programs is determined by the 
aggregate direct cost program funding level for all Bureau funded 
programs which share common administrative cost functions.
    ``(g)(1) There are authorized to be appropriated for each fiscal 
year such sums as may be necessary to carry out the provisions of this 
section.
    ``(2) If the total amount of funds necessary to provide grants to 
tribes and tribal organizations in the amounts determined under 
subsection (b) for a fiscal year exceeds the amount of funds 
appropriated to carry out this section for such fiscal year, the 
Secretary shall reduce the amount of each grant determined under 
subsection (b) for such fiscal year by an amount that bears the same 
relationship to such excess as the amount of such grant determined 
under subsection (b) bears to the total of all grants determined under 
subsection (b) for all tribes and tribal organizations for such fiscal 
year.
    ``(h)(1) Notwithstanding any other provision of this section, the 
amount of the grants provided under this section for fiscal year 1989 
shall--
            ``(A) in lieu of being determined under subsection (b), be 
        determined for each tribal elementary or secondary educational 
        program on the same basis that indirect costs were determined 
        for such programs for fiscal year 1988, and
            ``(B) be subject to the provisions of subsection (d).
    ``(2) Notwithstanding any other provision of this section, the 
amount of the grant provided under this section for fiscal year 1990 
with respect to each tribal elementary and secondary educational 
program that was operated by a tribe or tribal organization in fiscal 
year 1989 shall be equal to--
            ``(A) if the amount of the grant determined under 
        subsection (b) for fiscal year 1990 with respect to such 
        program exceeds the amount received by the tribe or tribal 
        organization with respect to such program for administrative 
        costs for fiscal year 1988 (or fiscal year 1989 if such program 
        was not operated by the tribe or tribal organization during 
        fiscal year 1988), the sum of--
                    ``(i) such amount received, plus
                    ``(ii) \1/3\ of the excess of--
                            ``(I) such amount determined under 
                        subsection (b), over
                            ``(II) such amount received, or
            ``(B) if such amount received exceeds such amount 
        determined under subsection (b), the excess of--
                    ``(i) such amount received, over
                    ``(ii) an amount equal to \1/3\ of the excess of--
                            ``(I) such amount received, over
                            ``(II) such amount determined under 
                        subsection (b).
    ``(3) Notwithstanding any other provision of this section, the 
amount of the grants provided under this section for fiscal year 1991 
with respect to each tribal elementary and secondary educational 
program that was operated by a tribe or tribal organization in fiscal 
year 1989 shall be equal to--
            ``(A) if the amount of the grant determined under 
        subsection (b) for fiscal year 1991 with respect to such 
        program exceeds the amount received by the tribe or tribal 
        organization with respect to such program for administrative 
        costs for fiscal year 1990, the sum of--
                    ``(i) such amount received, plus
                    ``(ii) \1/2\ of the excess of--
                            ``(I) such amount determined under 
                        subsection (b), over
                            ``(II) such amount received, or
            ``(B) if such amount received exceeds such amount 
        determined under subsection (b), the excess of--
                    ``(i) such amount received, over
                    ``(ii) an amount equal to \1/2\ of the excess of--
                            ``(I) such amount received over,
                            ``(II) such amount determined under 
                        subsection (b).
    ``(i) The provisions of this section shall also apply to those 
schools operating under the Tribally Controlled Schools Act of 1988.

``SEC. 1129. BUDGET PREPARATION AND SUBMISSION.

    ``(a) For each fiscal year beginning after October 1, 1994, and 
ending before October 1, 1998, the Secretary shall enter into an 
interagency agreement with the Secretary of Education for the purpose 
of carrying out this section. The Secretary shall take such actions as 
are necessary to transfer information requested by the Secretary of 
Education or the entity designated under subsection (b) of this section 
needed to carry out this section in a timely and accurate fashion.
    ``(b) The Secretary of Education, through the National Center for 
Education Statistics, shall prepare and submit to Congress the study 
set forth in subsection (c) of this section no later than January 20, 
1995, and January 20 of each of the next 3 succeeding years. The 
Secretary of Education shall transmit the report directly and without 
substantive amendment to the Secretary of the Interior, the Assistant 
Secretary for Indian Affairs of the Department of the Interior, and the 
Committees on Education and Labor and Appropriations of the House of 
Representatives and the Committees on Indian Affairs and Appropriations 
of the Senate of the United States.
    ``(c)(1) The National Center for Educational Statistics 
(hereinafter referred to as the `Center') shall prepare for each of the 
fiscal years covered under subsection (a) of this section a report on 
the amount needed to achieve academic and residential programs set 
forth in this part for Bureau-funded schools funded under section 1127. 
Such study shall be based on (A) the standards developed and 
implemented for Bureau-funded schools under section 1121 and 1122 of 
this part or such other standards as may apply to Bureau-funded 
contract schools or schools funded under the Tribally Controlled 
Schools Act of 1988, (B) the student count and characteristics of such 
schools, as determined pursuant to the formula developed and 
implemented pursuant to section 1127 of this part for the preceding 
academic year, adjusted for any changes in student demographics which 
the Center may project, (C) the employee statistics with respect to 
such schools for the preceding fiscal year, and (D) such other factors 
as the Center may set forth, including but not limited to age or 
physical condition of the schools and changes in isolation.
    ``(2) Each study shall include a total projected cost for attaining 
the standards set forth under paragraph (1), and shall presume 
compliance with those standards. Such study shall also include a 
projection of the cost for meeting such standards for each Bureau-
funded school. Such study shall also include a report on any shortfall 
in the amount needed to fund Bureau-funded schools, as determined by 
the study conducted pursuant to this section and the appropriations 
amount requested and enacted for the period covered by the study.
    ``(d)(1) Within 24 months of the date of enactment of this Act, the 
Secretary shall establish within the Office of Indian Education 
Programs a Division of Budget Analysis (hereinafter referred to as the 
`Division'). Such Division shall be under the direct supervision and 
control of the Director of the Office.
    ``(2) The Division shall have the capacity to conduct such studies, 
surveys, or other activities as are necessary to gather demographic 
information on Bureau-funded schools (current and future) and project 
the amount necessary to provide Indian students in such schools the 
educational program set forth in this part.
    ``(3) The Division shall prepare projections on such amounts, along 
with such other information as the Director of the Office shall 
require, for each fiscal year beginning after October 1, 1996. The 
Director of the Office and the Assistant Secretary for Indian Affairs 
shall use such reports when preparing their annual budget submissions.

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

    ``(a)(1) Within six months after the date of enactment of this Act, 
the Secretary shall establish, by regulation adopted in accordance with 
section 1139, a system for the direct funding and support of all 
Bureau-funded schools. Such system shall allot funds, in accordance 
with section 1127. Amounts appropriated for distribution under this 
section may be made available under paragraph (2) or under paragraph 
(3), as provided in the appropriation Act.
    ``(2)(A) For the purpose of affording adequate notice of funding 
available pursuant to the allotments made by section 1127, amounts 
appropriated in an appropriation Act for any fiscal year shall become 
available for obligation by the affected schools on July 1 of the 
fiscal year in which they are appropriated without further action by 
the Secretary, and shall remain available for obligation through the 
succeeding fiscal year.
    ``(B) The Secretary shall, on the basis of the amount appropriated 
in accordance with this paragraph--
            ``(i) publish, on July 1 preceding the fiscal year for 
        which the funds are appropriated, allotments to each affected 
        school made under section 1127 of 85 percent of such 
        appropriation; and
            ``(ii) publish, no later than September 30 of such 
        preceding fiscal year, the allotments to be made under section 
        1127 of the remaining 15 percent of such appropriation, 
        adjusted to reflect actual student attendance.
    ``(3) Notwithstanding any law or regulation, the supervisor of a 
Bureau school may expend an aggregate of no more than $35,000 of the 
amount allotted the school under section 1127 to acquire supplies and 
equipment for the school without competitive bidding if--
            ``(A) the cost for any single item purchased does not 
        exceed $10,000;
            ``(B) the school board approves the procurement;
            ``(C) the supervisor certifies that the cost is fair and 
        reasonable;
            ``(D) the documents relating to the procurement executed by 
        the supervisor or other school staff cite this paragraph as 
        authority for the procurement; and
            ``(E) the transaction is documented in a journal maintained 
        at the school clearly identifying when the transaction 
        occurred, what was acquired and from whom, the prices paid, the 
        quantities acquired, and any other information the supervisor 
        or school board considers relevant.
The Director shall be responsible for determining the application of 
this paragraph, including the authorization of specific individuals to 
carry out this authority, and shall be responsible for the provision of 
guidelines on the use of this authority and adequate training on such 
guidelines.
    ``(4) If a sequestration order issued under the Balanced Budget and 
Emergency Deficit Control Act of 1985 reduces the amount of funds 
available for allotment under section 1127 for any fiscal year by more 
than 7 percent of the amount of funds available for allotment under 
such section during the preceding fiscal year--
            ``(A) the Secretary may, notwithstanding any other 
        provision of law, use--
                    ``(i) funds appropriated for the operation of any 
                Bureau school that is closed or consolidated, and
                    ``(ii) funds appropriated for any program that has 
                been curtailed at any Bureau school,
        to fund allotments made under section 1127, and
            ``(B) the Secretary may waive the application of the 
        provisions of section 1121(h) with respect to the closure or 
        consolidation of a school, or the curtailment of a program at a 
        school, during such fiscal year if the funds described in 
        clauses (i) and (ii) of subparagraph (A) with respect to such 
        school are used to fund allotments made under section 1127 for 
        such fiscal year.
    ``(b) In the case of all Bureau schools, allotted funds shall be 
expended on the basis of local financial plans which shall be prepared 
by the local school supervisor in active consultation with the local 
school board for each school, and the local school board for each 
school shall have the authority to ratify, reject, or amend such 
financial plan, and expenditures thereunder, and, on its own 
determination or in response to the supervisor of the school, to revise 
such financial plan to meet needs not foreseen at the time of 
preparation of the financial plan. The supervisor shall provide the 
appropriate union representative of the education employees with copies 
of proposed draft financial plans and all amendments or modifications 
thereto, at the same time they are submitted to the local school board. 
The supervisor of the school may appeal any such action of the local 
school board to the appropriate education officer of the Bureau agency 
by filing a written statement describing the action and the reasons the 
supervisor believes such action should be overturned. A copy of such 
statement shall be submitted to the local school board and such board 
shall be afforded an opportunity to respond, in writing, to such 
appeal. After reviewing such written appeal and response, the 
appropriate education officer may, for good cause, overturn the action 
of the local school board. The appropriate education officer shall 
transmit the determination of such appeal in the form of a written 
opinion to such board and to such supervisor identifying the reasons 
for overturning such action.
    ``(c) Funds for self-determination grants under section 103(a)(2) 
of the Indian Self-Determination and Education Assistance Act shall not 
be used for providing technical assistance and training in the field of 
education by the Bureau unless such services are provided in accordance 
with a plan, agreed to by the tribe or tribes affected and the Bureau, 
under which control of education programs is intended to be transferred 
to such tribe or tribes within a specific period of time negotiated 
under such agreement. The Secretary may approve applications for 
funding tribal divisions of education and the development of tribal 
codes of education from funds appropriated pursuant to section 104(a) 
of such Act.
    ``(d) In the exercise of its authority under this section, a local 
school board may request technical assistance and training from the 
Secretary, and he shall, to the greatest extent possible, provide such 
services, and make appropriate provisions in the budget of the Office 
for such services.
    ``(e)(1) A financial plan under subsection (b) for a school may 
include, at the discretion of the local administrator and the school 
board of such school, a provision for a summer program of academic and 
support services for students of the school. Any such program may 
include activities related to the prevention of alcohol and substance 
abuse. The Assistant Secretary of Indian Affairs shall provide for the 
utilization of any such school facility during any summer in which such 
utilization is requested.
    ``(2) Notwithstanding any other provision of law, funds authorized 
under the Act of April 16, 1934 (25 U.S.C. 452 et seq.) and the Indian 
Education Act may be used to augment the services provided in each 
summer program at the option, and under the control, of the tribe or 
Indian controlled school receiving such funds.
    ``(3) The Assistant Secretary of Indian Affairs, acting through the 
Director of the Office of Indian Education Programs, shall provide 
technical assistance and coordination for any program described in 
paragraph (1) and shall, to the extent possible, encourage the 
coordination of such programs with any other summer programs that might 
benefit Indian youth, regardless of the funding source or 
administrative entity of any such program.
    ``(f)(1) From funds allotted to a Bureau school under section 1127, 
the Secretary shall, if specifically requested by the tribal governing 
body (within the meaning of section 1121(k)), implement any cooperative 
agreement entered into between the tribe, the Bureau school board, and 
the local public school district which meets the requirements of 
paragraph (2) and involves the school. The tribe, the Bureau school 
board, and the local public school district shall determine the terms 
of the agreement. Such agreement may encompass coordination of all or 
any part of the following:
            ``(A) Academic program and curriculum, unless the Bureau 
        school is currently accredited by a State or regional 
        accrediting entity and would not continue to be so accredited.
            ``(B) Support services, including procurement and 
        facilities maintenance.
            ``(C) Transportation.
    ``(2) Each agreement entered into pursuant to the authority 
provided in paragraph (1) shall confer a benefit upon the Bureau school 
commensurate with the burden assumed, though this requirement shall not 
be construed so as to require equal expenditures or an exchange of 
similar services.
    ``(g) Any other provision of law notwithstanding, where there is 
agreement on such action between the superintendent and school board of 
a B.I.A. funded school, the product or result of a project conducted in 
whole or in major part by a student may be given to that student upon 
the completion of said project.
    ``(h) Notwithstanding any other provision of law, funds received by 
Bureau funded schools under this title shall not be considered Federal 
funds for purposes of meeting a match requirement in any Federal 
program.

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

    ``(a) It shall be the policy of the Secretary and the Bureau, in 
carrying out the functions of the Bureau, to facilitate Indian control 
of Indian affairs in all matters relating to education.
    ``(b)(1) All actions under this Act shall be done with active 
consultation with tribes.
    ``(2) The consultation required under paragraph (1) means a process 
involving the open discussion and joint deliberation of all options 
with respect to potential issues or changes between the Bureau and all 
interested parties. During such discussions and joint deliberations, 
interested parties (including, but not limited to, tribes and school 
officials) shall be given an opportunity to present issues including 
proposals regarding changes in current practices or programs which will 
be considered for future action by the Bureau. All interested parties 
shall be given an opportunity to participate and discuss the options 
presented or to present other alternatives, with the views and concerns 
of the interested parties given effect unless the Secretary determines, 
from information educed or presented by the interested parties during 1 
or more of the discussions and deliberations, that there is a 
substantial reason for another course of action. The Secretary shall 
submit to any Member of Congress, within 18 days of the receipt of a 
written request by such Member, a written explanation of any decision 
made by the Secretary which is not consistent with the views of the 
interested parties.

``SEC. 1132. EDUCATION PERSONNEL.

    ``(a)(1) Chapter 51, subchapter III of chapter 53, and chapter 63 
of title 5, United States Code, relating to leave, pay, and 
classification, and the sections relating to the appointment, promotion 
and removal of civil service employees, shall not apply to educators or 
to education positions (as defined in subsection (n)).
    ``(2) Paragraph (1) shall take effect 1 year after the date of 
enactment of this Act.
    ``(b) Not later than the effective date of subsection (a)(2), the 
Secretary shall prescribe regulations to carry out this section. Such 
regulations shall govern--
            ``(1) the establishment of education positions,
            ``(2) the establishment of qualifications for educators,
            ``(3) the fixing of basic compensation for educators and 
        education positions,
            ``(4) the appointment of educators,
            ``(5) the discharge of educators,
            ``(6) the entitlement of educators to compensation,
            ``(7) the payment of compensation to educators,
            ``(8) the conditions of employment of educators,
            ``(9) the length of the school year applicable to education 
        positions described in subsection (n)(1)(A),
            ``(10) the leave system for educators, and
            ``(11) such other matters as may be appropriate.
    ``(c)(1) In prescribing regulations to govern the qualifications of 
educators, the Secretary shall require--
            ``(A)(i) that lists of qualified and interviewed applicants 
        for education positions be maintained in each agency and area 
        office of the Bureau from among individuals who have applied at 
        the agency or area level for an education position or who have 
        applied at the national level and have indicated in such 
        application an interest in working in certain areas or 
        agencies; and
            ``(ii) that a list of qualified and interviewed applicants 
        for education positions be maintained in the Office from among 
        individuals who have applied at the national level for an 
        education position and who have expressed interest in working 
        in an education position anywhere in the United States;
            ``(B) that a local school board shall have the authority to 
        waive on a case-by-case basis, any formal education or degree 
        qualifications established by regulation pursuant to subsection 
        (b)(2), in order for a tribal member to be hired in an 
        education position to teach courses on tribal culture and 
        language and that subject to subsection (d)(2)(A), a 
        determination by a school board that such a person be hired 
        shall be followed by the supervisor; and
            ``(C) that it shall not be a prerequisite to the employment 
        of an individual in an education position at the local level 
        that such individual's name appear on the national list 
        maintained pursuant to subsection (c)(1)(A)(ii) or that such 
        individual has applied at the national level for an education 
        position.
    ``(2) The Secretary may authorize the temporary employment in an 
education position of an individual who has not met the certification 
standards established pursuant to regulations, if the Secretary 
determines that failure to do so would result in that position 
remaining vacant.
    ``(d)(1) In prescribing regulations to govern the appointment of 
educators, the Secretary shall require--
            ``(A)(i) that educators employed in a school (other than 
        the supervisor of the school) shall be hired by the supervisor 
        of the school unless there are no qualified applicants 
        available, in which case the vacant position shall be filed at 
        the national level from the list maintained pursuant to 
        subsection (c)(1)(A)(ii);
            ``(ii) each school supervisor shall be hired by the 
        superintendent for education of the agency office of the Bureau 
        in which the school is located, and
            ``(iii) educators employed in an agency office of the 
        Bureau shall be hired by the superintendent for education of 
        the agency office;
            ``(B) that before an individual is employed in an education 
        position in a school by the supervisor of a school (or, with 
        respect to the position of supervisor, by the appropriate 
        agency superintendent for education), the local school board 
        for the school shall be consulted, and that subject to 
        subsection (d)(2), a determination by the school board that 
        such individual should or should not be so employed shall be 
        followed by the supervisor (or with respect to the position of 
        supervisor, by the agency superintendent for education); and
            ``(C) that before an individual may be employed in an 
        education position at the agency level, the appropriate agency 
        school board shall be consulted, and that, subject to 
        subsection (d)(3), a determination by such school board that 
        such individual should or should not be employed shall be 
        followed by the agency superintendent for education.
    ``(2)(A) The supervisor of a school may appeal to the appropriate 
agency superintendent for education any determination by the local 
school board for the school that an individual be employed, or not be 
employed, in an education position in the school (other than that of 
supervisor) by filing a written statement describing the determination 
and the reasons the supervisor believes such determination should be 
overturned. A copy of such statement shall be submitted to the local 
school board and such board shall be afforded an opportunity to 
respond, in writing, to such appeal. After reviewing such written 
appeal and response, the superintendent may, for good cause, overturn 
the determination of the local school board. The superintendent shall 
transmit the determination of such appeal in the form of a written 
opinion to such board and to such supervisor identifying the reasons 
for overturning such determination.
    ``(B) The superintendent for education of an agency office of the 
Bureau may appeal to the Director of the Office any determination by 
the local school board for the school that an individual be employed, 
or not be employed, as the supervisor of a school by filing a written 
statement describing the determination and the reasons the supervisor 
believes such determination should be overturned. A copy of such 
statement shall be submitted to the local school board and such board 
shall be afforded an opportunity to respond, in writing, to such 
appeal. After reviewing such written appeal and response, the Director 
may, for good cause, overturn the determination of the local school 
board. The Director shall transmit the determination of such appeal in 
the form of a written opinion to such board and to such superintendent 
identifying the reasons for overturning such determination.
    ``(3) The superintendent for education of an agency office of the 
Bureau may appeal to the Director of the Office any determination by 
the agency school board that an individual be employed, or not be 
employed, in an education position in such agency office by filing a 
written statement describing the determination and the reasons the 
supervisor believes such determination should be overturned. A copy of 
such statement shall be submitted to the agency school board and such 
board shall be afforded an opportunity to respond, in writing, to such 
appeal. After reviewing such written appeal and response, the Director 
may, for good cause, overturn the determination of the agency school 
board. The Director shall transmit the determination of such appeal in 
the form of a written opinion to such board and to such superintendent 
identifying the reasons for overturning such determination.
    ``(4) Any individual who applies at the local level for an 
education position shall state on such individual's application whether 
or not such individual has applied at the national level for an 
education position in the Bureau. If such individual is employed at the 
local level, such individual's name shall immediately be forwarded to 
the Secretary, who shall, as soon as possible but in no event in more 
than thirty days, ascertain the accuracy of the statement made by such 
individual pursuant to the first sentence of this subparagraph. If the 
individual's statement is found to have been false, such individual, at 
the Secretary's discretion, may be disciplined or discharged. If the 
individual had applied at the national level for an education position 
in the Bureau, if the appointment of such individual at the local level 
shall be conditional for a period of ninety days, during which period 
the Secretary may appoint a more qualified individual (as determined by 
the Secretary) from the list maintained at the national level pursuant 
to subsection (c)(1)(A)(ii) to the position to which such individual 
was appointed.
    ``(5) Except as expressly provided, nothing in this section shall 
be construed as conferring upon local school boards, authority over, or 
control of, educators.
    ``(e)(1) In prescribing regulations to govern the discharge and 
conditions of employment of educators, the Secretary shall require--
            ``(A) that procedures be established for the rapid and 
        equitable resolution of grievances of educators;
            ``(B) that no educator may be discharged without notice of 
        the reasons therefore and opportunity for a hearing under 
        procedures that comport with the requirements of due process; 
        and
            ``(C) educators employed in Bureau schools shall be 
        notified sixty days prior to the end of the school year whether 
        their employment contract will be renewed for the coming year.
    ``(2) The supervisor of a Bureau school may discharge (subject to 
procedures established under paragraph (1)(B) for cause (as determined 
under regulations prescribed by the Secretary) any educator employed in 
such school. Upon giving notice of proposed discharge to an educator, 
the supervisor involved shall immediately notify the local school board 
for the school of such action. A determination by the local school 
board that such educator shall not be discharged shall be followed by 
the supervisor. The supervisor shall have the right to appeal such 
action to the superintendent for education of the appropriate agency 
office of the Bureau. Upon such an appeal, the agency superintendent 
for education may, for good cause and in writing to the local school 
board, overturn the determination of the local school board with 
respect to the employment of such individual.
    ``(3) Each local school board for a Bureau school shall have the 
right (A) to recommend to the supervisor of such school that an 
educator employed in the school be discharged, and (B) to recommend to 
the superintendent of education of the appropriate agency office of the 
Bureau and to the Director of the Office, that the supervisor of the 
school be discharged.
    ``(f)(1) Notwithstanding any provision of the Indian preference 
laws, such laws shall not apply in the case of any personnel action 
within the purview of this section respecting an applicant or employee 
not entitled to Indian preference if each tribal organization concerned 
grants, in writing, a waiver of the application of such laws with 
respect to such personnel action, where such a waiver is in writing 
deemed to be a necessity by the tribal organization, except that this 
shall in no way relieve the Bureau of its responsibility to issue 
timely and adequate announcements and advertisements concerning any 
such personnel action if it is intended to fill a vacancy (no matter 
how such vacancy is created).
    ``(2) For purposes of this subsection, the term `tribal 
organization' means--
            ``(A) the recognized governing body of any Indian tribe, 
        band, nation, pueblo, or other organized community, including a 
        Native village (as defined in section 3(c) of the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1602(c); 85 Stat. 688)); or
            ``(B) in connection with any personnel action referred to 
        in this subsection, any local school board as defined in 
        section 1139, and which has been delegated by such governing 
        body the authority to grant a waiver under such subsection with 
        respect to such personnel action.
    ``(3) The term `Indian preference laws' means section 12 of the Act 
of June 18, 1934 (25 U.S.C. 472; 48 Stat. 986) or any other provision 
of law granting a preference to Indians in promotions and other 
personnel actions, except that such term shall not be considered to 
include section 7(b) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450e(b); 88 Stat. 2295).
    ``(g) Subject to the authority of the Civil Service Commission to 
determine finally the applicability of chapter 51 of title 5, United 
States Code, to specific positions and employees in the executive 
branch, the Secretary shall determine in accordance with subsection 
(a)(1) the applicability or inapplicability of such chapter to 
positions and employees in the Bureau.
    ``(h)(1)(A) Except as otherwise provided in this section, the 
Secretary shall fix the basic compensation or annual salary rate for 
educators and education positions at rates comparable to the rates in 
effect under the General Schedule for individuals with comparable 
qualifications, and holding comparable positions, to whom chapter 51 is 
applicable or on the basis of the Federal Wage System schedule in 
effect for the locality.
    ``(B) By no later than October 28, 1988, the Secretary shall 
establish, for contracts for the 1991-1992 academic year, and 
thereafter, the rates of basic compensation, or annual salary rates, 
for the positions of teachers and counselors (including dormitory 
counselors and home-living counselors) at the rates of basic 
compensation applicable (on the date of enactment of such Amendments 
and thereafter) to comparable positions in overseas schools under the 
Defense Department Overseas Teachers Pay and Personnel Practices Act, 
unless the Secretary establishes such rates within such 6-month period 
through collective bargaining with the appropriate union representative 
of the education employees that is recognized by the Bureau.
    ``(C) By no later than October 28, 1988, the Secretary shall 
establish the rates of basic compensation or annual salary rates for 
the positions of teachers and counselors (including dormitory and home-
living counselors)--
            ``(i) for contracts for the 1989-1990 academic year, at 
        rates which reflect \1/3\ of the changes in the rates 
        applicable to such positions on April 28, 1988, that must be 
        made to conform the rates to the rates established under 
        subparagraph (B) for such positions for contracts for the 1991-
        1992 academic year, and
            ``(ii) for contracts for the 1990-1991 academic year, at 
        rates which reflect \2/3\ of such changes.
    ``(D) The establishment of rates of basic compensation and annual 
salary rates by the Secretary under subparagraphs (B) and (C) shall not 
preclude the use of regulations and procedures used by the Bureau 
before the enactment of the Indian Education Amendments of 1988 in 
making determinations regarding promotions and advancements through 
levels of pay that are based on the merit, education, experience, or 
tenure of the educator.
    ``(E)(i) Except as provided in clause (ii), the establishment of 
rates of basic compensation and annual salary rates by the Secretary 
under subparagraphs (B) and (C) shall not affect the continued 
employment or compensation of an educator who was employed in an 
education position on October 31, 1979, and who did not make the 
election under paragraph (2) of subsection (o).
    ``(ii) Any individual described in clause (i) may, during the 5-
year period beginning on the date on which the Secretary establishes 
rates of basic compensation and annual salary rates under subparagraph 
(B), make an irrevocable election to have the basic compensation rate 
or annual salary rate of such individual determined in accordance with 
this paragraph.
    ``(iii) If an individual makes the election described in clause 
(ii), such election shall not affect the application to the individual 
of the same retirement system and leave system that applies to the 
individual during the fiscal year preceding the fiscal year in which 
such election is made, except that the individual must use leave 
accrued during a contract period by the end of that contract period.
    ``(F) The President shall include with the budget submitted under 
section 1105 of title 31, United States Code, for each of the fiscal 
years 1990, 1991, and 1992 a written statement by the Secretary which 
specifies--
            ``(i) the amount of funds the Secretary needs to pay basic 
        compensation and the annual salaries of educators for such 
        fiscal year, and
            ``(ii) the amount of funds the Secretary estimates would be 
        needed to pay basic compensation and the annual salaries of 
        educators for such fiscal year if the amendments made to this 
        paragraph by the Indian Education Amendments of 1988 had not 
        been enacted.
    ``(2) Each educator employed in an education position in Alaska 
shall be paid a cost-of-living allowance equal to 25 per centum of the 
rate of basic compensation to which such educator is entitled.
    ``(3)(A) The Secretary may pay a postdifferential not to exceed 25 
per centum of the rate of basic compensation, on the basis of 
conditions of environment or work which warrant additional pay as a 
recruitment and retention incentive.
    ``(B)(i) Upon the request of the supervisor and the local school 
board of a Bureau school, the Secretary shall grant the supervisor of 
the school authorization to provide 1 or more post differentials under 
subparagraph (A) unless the Secretary determines for clear and 
convincing reasons (and advises the board in writing of those reasons) 
that certain of the requested post differentials should be disapproved 
or decreased because there is no disparity of compensation for the 
involved employees or positions in the Bureau school, as compared with 
the nearest public school, that is either--
            ``(I) at least 5 percent, or
            ``(II) less than 5 percent and affects the recruitment or 
        retention of employees at the school.
The request under this subparagraph shall be deemed granted as 
requested at the end of the 60th day after the request is received in 
the Central Office of the Bureau unless before that time it is 
approved, approved with modification, or disapproved by the Secretary.
    ``(ii) The Secretary or the supervisor of a Bureau school may 
discontinue or decrease a post differential authorized by reason of 
this subparagraph at the beginning of a school year after either--
            ``(I) the local school board requests that it be 
        discontinued or decreased, or
            ``(II) the Secretary or the supervisor determines for clear 
        and convincing reasons (and advises the board in writing of 
        those reasons) that there is no disparity of compensation that 
        would affect the recruitment or retention of employees at the 
        school after the differential is discontinued or decreased.
    ``(iii) On or before February 1 of each year, the Secretary shall 
submit to Congress a report describing the requests and grants of 
authority under this subparagraph during the previous fiscal year and 
listing the positions contracted under those grants of authority.
    ``(i) Any individual--
            ``(1) who on the date of enactment of this Act is holding a 
        position which is determined under subsection (f) to be an 
        education position and who elects under subsection (o)(2) to be 
        covered under the provisions of this section, or
            ``(2) who is an employee of the Federal Government or the 
        municipal government of the District of Columbia and is 
        transferred, promoted, or reappointed, without break in 
        service, from a position under a different leave system to an 
        education position,
shall be credited for the purpose of the leave system provided under 
regulations prescribed pursuant to subsection (b)(10), with the annual 
and sick leave to his credit immediately before the effective date of 
such election, transfer, promotion, or reappointment.
    ``(j) Upon termination of employment with the Bureau, any annual 
leave remaining to the credit of an individual within the purview of 
this section shall be liquidated in accordance with sections 5551(a) 
and 6306 of title 5, United States Code, except that leave earned or 
accrued under regulations prescribed pursuant to subsection (b)(10) 
shall not be so liquidated.
    ``(k) In the case of any educator who is transferred, promoted, or 
reappointed, without break in service, to a position in the Federal 
Government under a different leave system, any remaining leave to the 
credit of such person earned or credited under the regulations 
prescribed pursuant to subsection (b)(10) shall be transferred to his 
credit in the employing agency on an adjusted basis in accordance with 
regulations which shall be prescribed by the Civil Service Commission.
    ``(l) An educator who voluntarily terminates employment with the 
Bureau before the expiration of the existing employment contract 
between such educator and the Bureau shall not be eligible to be 
employed in another education position in the Bureau during the 
remainder of the term of such contract.
    ``(m) In the case of any educator employed in an education position 
described in subsection (n)(1)(A) who--
            ``(1) is employed at the close of a school year,
            ``(2) agrees in writing to serve in such a position for the 
        next school year, and
            ``(3) is employed in another position during the recess 
        period immediately preceding such next school year, or during 
        such recess period receives additional compensation referred to 
        in subsection (g)(2) or (g)(3), section 5533 of title 5, United 
        States Code, relating to dual compensation, shall not apply to 
        such educator by reason of any such employment during a recess 
        period for any such receipt of additional compensation.
    ``(n) For the purpose of this section--
            ``(1) The term `education position' means a position in the 
        Bureau the duties and responsibilities of which--
                    ``(A) are performed on a school-year basis 
                principally in a Bureau school and involve--
                            ``(i) classroom or other instruction or the 
                        supervision or direction of classroom or other 
                        instruction;
                            ``(ii) any activity (other than teaching) 
                        which requires academic credits in educational 
                        theory and practice equal to the academic 
                        credits in educational theory and practice 
                        required for a bachelor's degree in education 
                        from an accredited institution of higher 
                        education;
                            ``(iii) any activity in or related to the 
                        field of education notwithstanding that 
                        academic credits in educational theory and 
                        practice are not a formal requirement for the 
                        conduct of such activity; or
                            ``(iv) support services at, or associated 
                        with, the site of the school; or
                    ``(B) are performed at the agency level of the 
                Bureau and involve the implementation of education-
                related programs other than the position for agency 
                superintendent for education.
            ``(2) The term `educator' means an individual whose 
        services are required, or who is employed, in an education 
        position.
    ``(o)(1) Subsections (a) through (n) of this section apply to an 
educator hired after November 1, 1979 (and to an educator who elected 
application under paragraph (2)) and to the position in which such 
individual is employed. Subject to paragraph (2), the enactment of this 
Act shall not affect the continued employment of an individual employed 
on October 31, 1979 in an education position, or such individual's 
right to receive the compensation attached to such position.
    ``(2) Any individual employed in an education position on October 
31, 1979, may, not later than November 1, 1983, make an irrevocable 
election to be covered under the provisions of subsection (a) through 
(n) of this section.
    ``(p)(1) An educator who was employed in an education position on 
October 31, 1979, who was eligible to make an election under paragraph 
(2) of subsection (o) at that time, and who did not make the election 
under paragraph (2) of subsection (o), may not be placed on furlough 
(within the meaning of section 7511(a)(5) of title 5, United States 
Code) without the consent of such educator for an aggregate of more 
than 4 weeks within the same calendar year, unless--
            ``(A) the supervisor, with the approval of the local school 
        board (or of the agency superintendent for education upon 
        appeal under paragraph (2)), of the Bureau school at which such 
        educator provides services determines that a longer period of 
        furlough is necessary due to an insufficient amount of funds 
        available for personnel compensation at such school, as 
        determined under the financial plan process as determined under 
        section 1129(b) of this Act, and
            ``(B) all educators (other than principals and clerical 
        employees) providing services at such Bureau school are placed 
        on furloughs of equal length, except that the supervisor, with 
        the approval of the local school board (or of the agency 
        superintendent for education upon appeal under paragraph (2)), 
        may continue 1 or more educators in pay status if (i) they are 
        needed to operate summer programs, attend summer training 
        sessions, or participate in special activities including (but 
        not limited to) curriculum development committees, and (ii) 
        they are selected based upon their qualifications, after public 
        notice of the minimum qualifications reasonably necessary and 
        without discrimination as to supervisory, nonsupervisory, or 
        other status of the educators who apply.
    ``(2) The supervisor of a Bureau school may appeal to the 
appropriate agency superintendent for education any refusal by the 
local school board to approve any determination of the supervisor that 
is described in paragraph (1)(A) by filing a written statement 
describing the determination and the reasons the supervisor believes 
such determination should be approved. A copy of such statement shall 
be submitted to the local school board and such board shall be afforded 
an opportunity to respond, in writing, to such appeal. After reviewing 
such written appeal and response, the superintendent may, for good 
cause, approve the determination of the supervisor. The superintendent 
shall transmit the determination of such appeal in the form of a 
written opinion to such local school board and to the supervisor 
identifying the reasons for approving such determination.

``SEC. 1133. MANAGEMENT INFORMATION SYSTEM.

    ``The Secretary shall establish within the Office, within 1 year 
after the date of the enactment of the Indian Education Amendments of 
1984, a computerized management information system, which shall provide 
information to the Office. Such information shall include but shall not 
be limited to--
            ``(1) student enrollment;
            ``(2) curriculum;
            ``(3) staff;
            ``(4) facilities;
            ``(5) community demographics;
            ``(6) student assessment information; and
            ``(7) information on the administrative and program costs 
        attributable to each Bureau program, divided into discreet 
        elements.

``SEC. 1134. BUREAU EDUCATION POLICIES.

    ``Within 180 days of the date of enactment of this Act, the 
Secretary shall develop, publish in the Federal Register, and submit to 
all agency and area offices of the Bureau, all tribal governments, and 
the appropriate committees of the Congress, a draft set of education 
policies, procedures, and practices for education-related action of the 
Bureau. The Secretary shall, within 1 year of the date of enactment of 
this Act, provide that such uniform policies, procedures, and practices 
shall be finalized and promulgated. Thereafter, such policies, 
procedures, and practices and their periodic revisions, shall serve as 
the foundation for future Bureau actions in education.

``SEC. 1135. UNIFORM EDUCATION PROCEDURES AND PRACTICES.

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

``SEC. 1136. RECRUITMENT OF INDIAN EDUCATORS.

    ``The Secretary shall institute a policy for the recruitment of 
qualified Indian educators and a detailed plan to promote employees 
from within the Bureau. Such plan shall include opportunities for 
acquiring work experience prior to actual work assignment.

``SEC. 1137. ANNUAL REPORT.

    ``(a) The Secretary shall submit to each appropriate committee of 
the Congress a detailed annual report on the state of education within 
the Bureau and any problems encountered in the field of education 
during the year. Such report shall contain suggestions for improving 
the Bureau educational system and increasing local Indian control of 
such system. Such report shall also include the current status of 
tribally controlled community colleges. The annual budget submission 
for the Bureau's education programs shall, among other things, include 
(1) information on the funds provided previously private schools under 
section 208 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 458d; 88 Stat. 2216) and recommendations with respect to 
the future use of such funds; (2) the needs and costs of operation and 
maintenance of tribally controlled community colleges eligible for 
assistance under the Tribally Controlled Community College Assistance 
Act of 1978 (92 Stat. 1325; 25 U.S.C. 1801 et seq.) and recommendations 
with respect to meeting such needs and costs; and (3) the plans 
required by section 1121(f), and 1122(c); and 1125(b) of this Act (25 
U.S.C. 2001(f), 2002(c), and 2005(b)).
    ``(b) The Inspector General of the Department of the Interior shall 
establish a system to ensure that financial and compliance audits are 
conducted of each Bureau school at least once in every three years. 
Audits of Bureau schools shall be based upon the extent to which such 
school has complied with its local financial plan under section 1129.

``SEC. 1138. RIGHTS OF INDIAN STUDENTS.

    ``Within six months of the date of enactment of this Act, the 
Secretary shall prescribe such rules and regulations as are necessary 
to insure the constitutional and civil rights of Indian students 
attending Bureau schools, including, but not limited to, their right to 
privacy under the laws of the United States, their right to freedom of 
religion and expression and their right to due process in connection 
with disciplinary actions, suspensions, and expulsions.

``SEC. 1139. REGULATIONS.

    ``Regulations required to be adopted under sections 1126 through 
1138 and any revisions of the standards developed under section 1121 or 
1122 of this Act shall be deemed rules of general applicability 
prescribed for the administration of an applicable program for the 
purposes of section 431 of the General Education Provisions Act and 
shall be promulgated, submitted for congressional review, and take 
effect in accordance with the provisions of such section. Such 
regulations shall contain, immediately following each substantive 
provision of such regulations, citations to the particular section or 
sections of statutory law or other legal authority upon which such 
provision is based.

``SEC. 1140. DEFINITIONS.

    ``For the purpose of this part--
            ``(1) the term `agency school board' means a body, the 
        members of which are appointed by the school boards of the 
        schools located within such agency, and the number of such 
        members shall be determined by the Secretary in consultation 
        with the affected tribes, except that, in agencies serving a 
        single school, the school board of such school shall fulfill 
        these duties;
            ``(2) the term `Bureau' means the Bureau of Indian Affairs 
        of the Department of the Interior;
            ``(3) the term `Bureau funded school' means--
                    ``(A) a Bureau school;
                    ``(B) a contract school; or
                    ``(C) a school for which assistance is provided 
                under the Tribally Controlled Schools Act of 1988;
            ``(4) the term `Bureau school' means a Bureau operated 
        elementary or secondary day or boarding school or a Bureau 
        operated dormitory for students attending a school other than a 
        Bureau school;
            ``(5) the term `contract school' means an elementary or 
        secondary school or a dormitory which receives financial 
        assistance for its operation under a contract or agreement with 
        the Bureau under section 102, 103(a), or 208 of the Indian 
        Self-Determination and Education Assistance Act (25 U.S.C. 
        450f, 450h(a), and 458d);
            ``(6) the term `education line officer' means education 
        personnel under the supervision of the Director, whether 
        located in central, area, or agency offices;
            ``(7) the term `financial plan' means a plan of services to 
        be provided by each Bureau school;
            ``(8) the term `grant school' means a school which is 
        provided assistance under the Tribally Controlled Schools Act 
        of 1988;
            ``(9) the term `Indian organization' means any group, 
        association, partnership, corporation, or other legal entity 
        owned or controlled by a federally recognized Indian tribe or 
        tribes, or a majority of whose members are members of federally 
        recognized Indian tribes;
            ``(10) the term `local educational agency' means a board of 
        education or other legally constituted local school authority 
        having administrative control and direction of free public 
        education in a county, township, independent, or other school 
        district located within a State, and includes any State agency 
        which directly operates and maintains facilities for providing 
        free public education;
            ``(11) the term `local school board', when used with 
        respect to a Bureau school, means a body chosen in accordance 
        with the laws of the tribe to be served or, in the absence of 
        such laws, elected by the parents of the Indian children 
        attending the school, except that in schools serving a 
        substantial number of students from different tribes, the 
        members shall be appointed by the governing bodies of the 
        tribes affected; and the number of such members shall be 
        determined by the Secretary in consultation with the affected 
        tribes;
            ``(12) the term `Office' means the Office of Indian 
        Education Programs within the Bureau;
            ``(13) the term `Secretary' means the Secretary of the 
        Interior;
            ``(14) the term `supervisor' means the individual in the 
        position of ultimate authority at a Bureau school; and
            ``(15) the term `tribe' means any Indian tribe, band, 
        nation, or other organized group or community, including any 
        Alaska Native village or regional or village corporation as 
        defined in or established pursuant to the Alaska Native Claims 
        Settlement Act (85 Stat. 688) which is recognized as eligible 
        for the special programs and services provided by the United 
        States to Indians because of their status as Indians.

``SEC. 1141. VOLUNTARY SERVICES.

    ``Notwithstanding section 1342 of title 31, United States Code, the 
Secretary may, subject to the approval of the local school board 
concerned, accept voluntary services on behalf of Bureau schools. 
Nothing in this title shall be construed to require Federal employees 
to work without compensation or to allow the use of volunteer services 
to displace or replace Federal employees. An individual providing 
volunteer services under this section is a Federal employee only for 
purposes of chapter 81 of title 5, United States Code, and chapter 171 
of title 28, United States Code.

``SEC. 1142. PRORATION OF PAY.

    ``(a) Notwithstanding any other provision of law, including laws 
relating to dual compensation, the Secretary, at the election of the 
employee, shall prorate the salary of an employee employed in an 
education position for the academic school-year over the entire twelve 
month period. Each educator employed for the academic school-year shall 
annually elect to be paid on a twelve month basis or for those months 
while school is in session. No educator shall suffer a loss of pay or 
benefits, including benefits under unemployment or other Federal or 
federally-assisted programs, because of such election.
    ``(b) During the course of such year the employee may change 
election once.
    ``(c) That portion of the employee's pay which would be paid 
between academic school years may be paid in lump sum at the election 
of the employee.
    ``(d) For the purposes of this section the terms `educator' and 
`education position' have the meaning contained in section 1132(n)(1) 
and (n)(2) of this title. This section applies to those individuals 
employed under the provisions of section 1132 of this title or title 5, 
United States Code.

``SEC. 1143. EXTRACURRICULAR ACTIVITIES.

    ``(a) Notwithstanding any other provision of law, the Secretary may 
provide, for each Bureau area, a stipend in lieu of overtime premium 
pay or compensatory time off. Any employee of the Bureau who performs 
additional activities to provide services to students or otherwise 
support the school's academic and social programs may elect to be 
compensated for all such work on the basis of the stipend. Such stipend 
shall be paid as a supplement to the employee's base pay.
    ``(b) If an employee elects not to be compensated through the 
stipend established by this section, the appropriate provisions of 
title 5, United States Code, shall apply.
    ``(c) This section applies to all Bureau employees, whether 
employed under section 1132 of this title or title 5, United States 
Code.

``SEC. 1144. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

    ``(a) The Secretary shall provide grants to tribes, tribal 
organizations, and consortia of tribes and tribal organizations to fund 
early childhood development programs that are operated by such tribes, 
organizations, or consortia.
    ``(b)(1) The total amount of the grants provided under subsection 
(a) with respect to each tribe, tribal organization, or consortium of 
tribes or tribal organizations for each fiscal year shall be equal to 
the amount which bears the same relationship to the total amount 
appropriated under the authority of subsection (f) for such fiscal year 
(less amounts provided under subsection (e)) as--
            ``(A) the total number of children under 6 years of age who 
        are members of--
                    ``(i) such tribe,
                    ``(ii) the tribe that authorized such tribal 
                organization, or
                    ``(iii) any tribe that--
                            ``(I) is a member of such consortium, or
                            ``(II) authorizes any tribal organization 
                        that is a member of such consortium, bears to
            ``(B) the total number of all children under 6 years of age 
        who are members of any tribe that--
                    ``(i) is eligible to receive funds under subsection 
                (a),
                    ``(ii) is a member of a consortium that is eligible 
                to receive such funds, or
                    ``(iii) authorizes a tribal organization that is 
                eligible to receive such funds.
    ``(2) No grant may be provided under subsection (a)--
            ``(A) to any tribe that has less than 500 members,
            ``(B) to any tribal organization which is authorized--
                    ``(i) by only 1 tribe that has less than 500 
                members, or
                    ``(ii) by 1 or more tribes that have a combined 
                total membership of less than 500 members, or
            ``(C) to any consortium composed of tribes, or tribal 
        organizations authorized by tribes, that have a combined total 
        tribal membership of less than 500 members.
    ``(c)(1) A grant may be provided under subsection (a) to a tribe, 
tribal organization, or consortia of tribes and tribal organizations 
only if the tribe, organization or consortia submits to the Secretary 
an application for the grant at such time and in such form as the 
Secretary shall prescribe.
    ``(2) Applications submitted under paragraph (1) shall set forth 
the early childhood development program that the applicant desires to 
operate.
    ``(d) The early childhood development programs that are funded by 
grants provided under subsection (a)--
            ``(1) shall coordinate existing programs and may provide 
        services that meet identified needs of parents and children 
        under 6 years of age which are not being met by existing 
        programs, including--
                    ``(A) prenatal care,
                    ``(B) nutrition education,
                    ``(C) health education and screening,
                    ``(D) educational testing, and
                    ``(E) other educational services,
            ``(2) may include instruction in the language, art, and 
        culture of the tribe, and
            ``(3) shall provide for periodic assessment of the program.
    ``(e) The Secretary shall, out of funds appropriated under the 
authority of subsection (f), include in the grants provided under 
subsection (a) amounts for administrative costs incurred by the tribe 
or tribal organization in establishing and maintaining the early 
childhood development program.
    ``(f) For the purpose of carrying out the provisions of this 
section, there are authorized to be appropriated $5,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the fiscal 
years 1996, 1997, 1998, and 1999.

``SEC. 1145. TRIBAL DEPARTMENTS OF EDUCATION.

    ``(a) Subject to the availability of appropriations, the Secretary 
shall provide grants and technical assistance to tribes for the 
development and operation of tribal departments of education for the 
purpose of planning and coordinating all educational programs of the 
tribe.
    ``(b) Grants provided under this section shall--
            ``(1) be based on applications from the governing body of 
        the tribe,
            ``(2) reflect factors such as geographic and population 
        diversity,
            ``(3) facilitate tribal control in all matters relating to 
        the education of Indian children on Indian reservations and on 
        former Indian reservations in Oklahoma,
            ``(4) provide for the development of coordinated 
        educational programs on Indian reservations (including all 
        preschool, elementary, secondary, and higher or vocational 
        educational programs funded by tribal, Federal, or other 
        sources) by encouraging tribal administrative support of all 
        Bureau funded educational programs as well as encouraging 
        tribal cooperation and coordination with all educational 
        programs receiving financial support from State agencies, other 
        Federal agencies, or private entities,
            ``(5) provide for the development and enforcement of tribal 
        educational codes, including tribal educational policies and 
        tribal standards applicable to curriculum, personnel, students, 
        facilities, and support programs, and
            ``(6) otherwise comply with regulations for grants under 
        section 103(a) of the Indian Self-Determination and Educational 
        Assistance Act (25 U.S.C. 450h) that are in effect on the date 
        application for such grants are made.
    ``(c)(1) In approving and funding applications for grants under 
this section, the Secretary shall give priority to any application 
that--
            ``(A) includes assurances from the majority of Bureau 
        funded schools located within the boundaries of the reservation 
        of the applicant that the tribal department of education to be 
        funded under this section will provide coordinating services 
        and technical assistance to all of such schools, including (but 
        not limited to) the submission to each applicable agency of a 
        unified application for funding for all of such schools which 
        provides that--
                    ``(i) no administrative costs other than those 
                attributable to the individual programs of such schools 
                will be associated with the unified application, and
                    ``(ii) the distribution of all funds received under 
                the unified application will be equal to the amount of 
                funds provided by the applicable agency to which each 
                of such schools is entitled under law,
            ``(B) includes assurances from the tribal governing body 
        that the tribal department of education funded under this 
        section will administer all contracts or grants (except those 
        covered by the other provisions of this title and the Tribally 
        Controlled Community College Assistance Act of 1978) for 
        education programs administered by the tribe and will 
        coordinate all of the programs to the greatest extent possible,
            ``(C) includes assurances for the monitoring and auditing 
        by or through the tribal department of education of all 
        education programs for which funds are provided by contract or 
        grant to ensure that the programs meet the requirements of law, 
        and
            ``(D) provides a plan and schedule for--
                    ``(i) the assumption over the term of the grant by 
                the tribal department of education of all assets and 
                functions of the Bureau agency office associated with 
                the tribe, insofar as those responsibilities relate to 
                education, and
                    ``(ii) the termination by the Bureau of such 
                operations and office at the time of such assumption,
        but when mutually agreeable between the tribal governing body 
        and the Assistant Secretary, the period in which such 
        assumption is to occur may be modified, reduced, or extended 
        after the initial year of the grant.
    ``(2) Subject to the availability of appropriated funds, grants 
provided under this section shall be provided for a period of 3 years 
and the grant may, if performance by the grantee is satisfactory to the 
Secretary, be renewed for additional 3-year terms.
    ``(d) The Secretary shall not impose any terms, conditions, or 
requirements on the provision of grants under this section that are not 
specified in this section.
    ``(e) For the purpose of carrying out the provisions of this 
section, there are authorized to be appropriated $2,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the fiscal 
years 1996, 1997, 1998, and 1999.

``SEC. 1146. PAYMENTS.

    ``(a)(1) Except as otherwise provided in this subsection, the 
Secretary shall make payments to grantees under this part in 2 
payments--
            ``(A) one payment to be made no later than July 1 of each 
        year in an amount equal to one-half of the amount which the 
        grantee was entitled to receive during the preceding academic 
        year, and
            ``(B) the second payment, consisting of the remainder to 
        which the grantee is entitled for the academic year, shall be 
        made no later than December 1 of each year.
    ``(2) For any school for which no payment was made from Bureau 
funds in the preceding academic year, full payment of the amount 
computed for the first academic year of eligibility under this part 
shall be made no later than December 1 of the academic year.
    ``(3) With regard to funds for grantees that become available for 
obligation on October 1 of the fiscal year for which they are 
appropriated, the Secretary shall make payments to grantees no later 
than December 1 of the fiscal year.
    ``(4) The provisions of the Prompt Payment Act (31 U.S.C. 3901 et 
seq.) shall apply to the payments required to be made by paragraphs 
(1), (2), and (3) of this subsection.''.
    (b) Paragraph (3) is amended by striking ``Paragraphs (1) and (2)'' 
and inserting in lieu thereof ``Paragraphs (1), (2), and (3)'', and is 
renumbered as paragraph ``(5)''.

SEC. 352. APPLICATION WITH RESPECT TO INDIAN SELF-DETERMINATION AND 
              EDUCATION ASSISTANCE ACT.

    Section 5209(a) of the Tribally Controlled Schools Act of 1988 (25 
U.S.C. 2508(a)) is amended to read as follows:
    ``(a) Certain Provisions To Apply to Grants.--All provisions of 
section 5, 6, 7, 104, 105(f), 109, and 111 of the Indian Self-
Determination and Education Assistance Act, except those provisions 
relating to indirect costs and length of contract, shall apply to 
grants provided under this part.''.

SEC. 353. PAYMENTS.

    Section 5209(e) of Public Law 100-297, the Tribally Controlled 
Schools Act of 1988, is amended--
            (1) by striking ``the amount of the grant under section 
        5205 (and the amount of funds referred to in that section), any 
        payments to be made under section 5208 of this Act,'' and 
        inserting in lieu thereof: ``a grant authorized to be made 
        pursuant to this part or any amendment to such grant'';
            (2) by striking ``the amount of, or payment of, the 
        administrative grant'' and inserting in lieu thereof ``an 
        administrative cost grant''; and
            (3) by adding at the end thereof ``and the Equal Access to 
        Justice Act shall apply to administrative appeals filed after 
        January 1, 1994, by grantees regarding the Tribally Controlled 
        Schools Grant and Administrative Cost Grants.''.

SEC. 354. ENDOWMENT FUNDS.

    Section 302 of Public Law 95-471, the Tribally Controlled Community 
Colleges Assistance Act of 1978, is amended--
            (1) in subsection (a), by striking ``section 333'' and 
        inserting in lieu thereof ``section 331'';
            (2) in subsection (b), by deleting paragraph (1) and 
        inserting in lieu thereof the following:
            ``(1) provides for the investment and maintenance of funds 
        covered by such endowment account under the same conditions and 
        limitations as are in section 331 of the Higher Education Act 
        and the regulations implementing such provisions in effect at 
        the time such funds are invested;''; and
            (3) in subsection (b)(3) by striking ``same'' the first 
        time it appears.

SEC. 355. HIGHER EDUCATION AMENDMENTS OF 1992.

    Section 1518 of title XV of the Higher Education Amendments of 1992 
(relating to the Santa Fe Arts Institute) is amended--
            (1) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(6) For the purpose of complying with the contribution 
        requirement in this subsection, the Institute may use funds or 
        in-kind contributions of real or personal property. For the 
        purposes of this paragraph, all contributions, in-kind and real 
        estate, which are on hand as of November 29, 1990, and which 
        were received after June 2, 1988, but which have not been 
        included in their entirety in computations under this section 
        shall be eligible for matching with Federal funds appropriated 
        in any year.''; and
            (2) in subsection (c), by striking paragraph (1) and 
        inserting in lieu thereof the following:
            ``(1) Funds in the trust funds described in subsections (a) 
        and (b) shall be invested under the same conditions and 
        limitations as are in section 331 of the Higher Education Act, 
        and the regulations implementing such provisions in effect at 
        the time such funds are invested.''.

                TITLE IV--NATIONAL EDUCATION STATISTICS

SEC. 401. SHORT TITLE.

    This title may be cited as the ``National Education Statistics Act 
of 1994''.

SEC. 402. FINDINGS; PURPOSE; DEFINITIONS.

    (a) Findings.--The Congress finds that--
            (1) a Department of Education was established in 1867 ``for 
        the purpose of collecting such statistics and facts as shall 
        show the condition and progress of education in the several 
        States and territories, and of diffusing such information 
        respecting the organization and management of schools and 
        school systems and methods of teaching as shall aid the people 
        of the United States in the establishment and maintenance of 
        efficient school systems, and otherwise promote the cause of 
        education throughout the country'';
            (2) today, while the role of the current Department of 
        Education is much broader, the National Center for Education 
        Statistics within the Department's Office of Educational 
        Research and Improvement continues to perform those crucial 
        original purposes; and
            (3) looking to the 21st century, the National Center for 
        Education Statistics must be able to design and undertake, 
        effectively and efficiently, statistical activities that will 
        aid in reform of the Nation's educational systems.
    (b) Purpose.--It is the purpose of this title to ensure the 
continuation of an effective mechanism for collecting and reporting 
statistics and information showing the condition and progress of 
education in the United States and other nations in order to promote 
and accelerate the improvement of American education.
    (c) Definitions.--For the purpose of this title, the term--
            (1) ``Assistant Secretary'' means the Assistant Secretary 
        for Educational Research and Improvement, provided for under 
        section 202(b)(1)(E) of the Department of Education 
        Organization Act;
            (2) ``Department'' means the Department of Education;
            (3) ``institution of higher education'' has the same 
        meaning given such term in section 1201 of the Higher Education 
        Act of 1965;
            (4) ``local educational agency'' has the same meaning given 
        such term in section 9101(13) of the Elementary and Secondary 
        Education Act of 1965;
            (5) ``Secretary'' means the Secretary of Education;
            (6) ``State educational agency'' has the same meaning given 
        such term in section 9101(20) of the Elementary and Secondary 
        Education Act of 1965; and
            (7) ``United States'' and ``State'' mean--
                    (A) other than for the purpose of section 411, each 
                of the 50 States, the District of Columbia, and the 
                Commonwealth of Puerto Rico; and
                    (B) for the purpose of section 411, mean the same 
                as in subparagraph (A) and include Guam, American 
                Samoa, the Virgin Islands, the Commonwealth of the 
                Northern Mariana Islands, and the Republic of Palau 
                (until the effective date of the Compact of Free 
                Association with the Government of Palau).

SEC. 403. NATIONAL CENTER FOR EDUCATION STATISTICS.

    (a) Establishment.--There is established, within the Office of 
Educational Research and Improvement established under section 209 of 
the Department of Education Organization Act, a National Center for 
Education Statistics (the ``Center'').
    (b) Commissioner and Associate Commissioners.--(1) The Center shall 
be headed by a Commissioner of Education Statistics (the 
``Commissioner'') who shall be appointed by the President, by and with 
the advice and consent of the Senate, and who shall--
            (A) have substantial knowledge of programs encompassed by 
        the Center;
            (B) be paid in accordance with section 5315 of title 5, 
        United States Code; and
            (C) serve for a term of 4 years, with the terms to expire 
        every fourth June 21, beginning in 1995.
    (2) The Commissioner may appoint such Associate Commissioners as 
the Commissioner determines are necessary and appropriate.

SEC. 404. DUTIES OF THE CENTER.

    (a) Duties.--The duties of the Center are to collect, analyze, and 
disseminate statistics and other information related to education in 
the United States and in other nations, including--
            (1) collecting, acquiring, compiling (where appropriate, on 
        a State by State basis), and disseminating full and complete 
        statistics on the condition and progress of education, at the 
        preschool, elementary, secondary, and postsecondary levels in 
        the United States, including data on--
                    (A) State and local school reform activities;
                    (B) student achievement and other educational 
                outcomes at all levels of education;
                    (C) out of school youth and adults;
                    (D) teachers, administrators, counselors, and other 
                educational personnel at all levels of education, 
                including the supply and demand for such teachers;
                    (E) the learning and teaching environment, 
                including the nature and incidence of violence 
                affecting students, school personnel, and other 
                individuals participating in school activities;
                    (F) violence against teachers and students, and 
                other indices of school safety;
                    (G) financing and management of education; and
                    (H) the socioeconomic status of children;
            (2) conducting and publishing reports and analyses of the 
        meaning and significance of such statistics;
            (3) conducting longitudinal studies, as well as regular and 
        special surveys and data collections, necessary to report on 
        the condition and progress of education;
            (4) collecting, analyzing, cross-tabulating, and reporting, 
        to the extent feasible, so as to provide information by gender, 
        race, socioeconomic status, limited-English proficiency, and 
        other population characteristics when such disaggregated 
        information would facilitate educational and policy 
        decisionmaking;
            (5) assisting public and private educational agencies, 
        organizations, and institutions in improving and automating 
        statistical and data collection activities; and
            (6) acquiring and disseminating data on educational 
        activities and student achievement in the United States 
        compared with foreign nations.
    (b) Training Program.--The Commissioner may establish a program to 
train employees of public and private educational agencies, 
organizations, and institutions in the use of the Center's standard 
statistical procedures and concepts and may establish a fellows program 
to appoint such employees as temporary fellows at the Center in order 
to assist the Center in carrying out its duties.

SEC. 405. PERFORMANCE OF DUTIES.

    (a) In General.--In carrying out the duties under this title, the 
Commissioner may enter into grants, contracts, and cooperative 
agreements.
    (b) Gathering Information.--(1) The Commissioner may use the 
statistical method known as sampling to carry out the purpose of this 
title.
    (2) The Commissioner may, as the Commissioner considers 
appropriate, use information collected--
            (A) from States, local educational agencies, public and 
        private schools, preschools, institutions of higher education, 
        libraries, administrators, teachers, students, the general 
        public, and such other individuals, organizations, agencies, 
        and institutions as the Commissioner may consider appropriate; 
        and
            (B) by other offices within the Department and by other 
        Federal departments, agencies, and instrumentalities.
    (3) The Commissioner may--
            (A) enter into interagency agreements for the collection of 
        statistics;
            (B) arrange with an agency, organization, or institution 
        for the collection of statistics; and
            (C) assign employees of the Center to any such agency, 
        organization, or institution to assist in such collection.
    (4) In order to maximize the effectiveness of Federal efforts to 
serve the educational needs of children and youth, the Commissioner 
shall--
            (A) provide technical assistance to Department offices that 
        gather data for statistical purposes; and
            (B) coordinate closely with other Department offices in the 
        collection of data.

SEC. 406. REPORTS.

    (a) Report on the Condition and Progress of Education.--The 
Commissioner shall, no later than June 1 of each year, submit to the 
President and the Congress a statistical report regarding the condition 
and progress of education in the United States.
    (b) Statistical Reports.--The Commissioner shall issue regular 
statistical reports to the President and Congress on such education 
topics as the Commissioner determines to be appropriate.
    (c) Special Reports.--The Commissioner may, whenever the 
Commissioner considers it appropriate, issue special reports on 
particular education topics.

SEC. 407. ADVISORY COUNCIL ON EDUCATION STATISTICS.

    (a) Establishment.--There is established, within the Center, the 
Advisory Council on Education Statistics (referred to in this title as 
the ``Council'').
    (b) Membership.--(1) The Council shall be composed of--
            (A) 18 voting members who are users of education data and 
        who are appointed by the Secretary on the basis of their 
        experience and eminence within the field, of whom at least--
                    (i) 3 shall be practicing educators at the 
                preschool, elementary, or secondary level;
                    (ii) 3 shall be education policymakers;
                    (iii) 3 shall be professional statisticians;
                    (iv) 3 shall be education researchers; and
                    (v) 3 shall be experts in educational measurement;
            (B) 3 individuals representing the general public, 
        appointed by the Secretary;
            (C) the Director of the Census and the Commissioner of 
        Labor Statistics, as voting, ex officio members; and
            (D) the Assistant Secretary and the Commissioner, as 
        nonvoting, ex officio members.
    (2) The Commissioner shall appoint the presiding officer of the 
Council from among the voting members.
    (3) Members of the Council appointed under paragraph (1)(A) shall 
be appointed for 3-year terms except that, in the case of initial 
appointments, the Secretary shall make appointments for shorter terms 
to the extent necessary to avoid the expiration of the terms of more 
than 6 members in the same calendar year.
    (4)(A) The Council shall meet in public session at the call of the 
presiding officer, except that it shall meet--
            (i) at least 2 times during each calendar year; and
            (ii) in addition, whenever 10 voting members request in 
        writing that the presiding officer call a meeting.
    (B) 11 voting members of the Council shall constitute a quorum.
    (5) The Council shall--
            (A) review general policies for the operation of the Center 
        and shall advise the Commissioner on standards to ensure that 
        statistics and other information disseminated by the Center are 
        of high quality and are not subject to partisan political 
        influence; and
            (B) advise the Commissioner and the National Assessment 
        Governing Board on matters related to the National Assessment 
        of Education Progress.
    (6) The Council shall appoint a staff to enable the Council to 
carry out its duties.

SEC. 408. CONFIDENTIALITY.

    (a) General.--(1)(A) The Center shall develop and enforce standards 
designed to protect the confidentiality of persons in the collection, 
reporting, and publication of data under this section.
    (B) This section shall not be construed to protect the 
confidentiality of information about institutions, organizations, and 
agencies that receive grants from, or have contracts or cooperative 
agreements with, the Federal Government.
    (2) No person may--
            (A) use any individually identifiable information furnished 
        under this title for any purpose other than a statistical 
        purpose;
            (B) make any publication whereby the data furnished by any 
        particular person under this title can be identified; or
            (C) permit anyone other than the individuals authorized by 
        the Commissioner to examine the individual reports.
    (b) Administration.--(1)(A) No department, bureau, agency, officer, 
or employee of the Government, except the Commissioner in carrying out 
the purposes of this title, shall require, for any reason, copies of 
reports that have been filed under this title with the Center or 
retained by any individual respondent.
    (B) Copies of such reports that have been so filed or retained with 
the Center or any of its employees, contractors, or agents shall be 
immune from legal process, and shall not, without the consent of the 
individual concerned, be admitted as evidence or used for any purpose 
in any action, suit, or other judicial or administrative proceeding.
    (C) This paragraph shall apply only to individually identifiable 
information (as defined in paragraph (5)(A)).
    (2) Whoever, being or having been an employee or staff member of 
the Department, having taken or subscribed the oath of office, or 
having sworn to observe the limitations imposed by subsection (a)(2), 
knowingly publishes or communicates any individually identifiable 
information (as defined in paragraph (5)(A)), the disclosure of which 
is prohibited by subsection (a)(2), and that comes into such 
individual's possession by reason of employment (or otherwise providing 
services) under this title, shall be found guilty of a class E felony 
and imprisoned for not more than 5 years, or fined as specified in 18 
U.S.C. 3571, or both.
    (3) The Commissioner may utilize temporary staff, including 
employees of Federal, State, or local agencies or instrumentalities 
including local educational agencies, and employees of private 
organizations to assist the Center in performing its responsibilities, 
but only if such temporary staff are sworn to observe the limitations 
imposed by this section.
    (4) No collection of information or data acquisition activity 
undertaken by the Center shall be subject to any review, coordination, 
or approval procedure except as required by the Director of the Office 
of Management and Budget under the rules and regulations established 
pursuant to chapter 35 of title 44, United States Code, except such 
collection of information or data acquisition activity may be subject 
to review or coordination if the Commissioner determines that such 
review or coordination would be beneficial.
    (5) For the purposes of this section--
            (A) the term ``individually identifiable information'' 
        means any record, response form, completed survey, or 
        aggregation thereof from which information about individuals 
        may be revealed; and
            (B) the term ``report'' means a response provided by or 
        about an individual to an inquiry from the Center and does not 
        include a statistical aggregation from which individually 
        identifiable information cannot be revealed.
    (6) This paragraph shall not apply to--
            (A) the survey required by section 1303(c) of the Higher 
        Education Amendments of 1986; or
            (B) to any longitudinal study concerning access, choice, 
        persistence progress, or attainment in postsecondary education.
    (7) Any person who uses any data provided by the Center, in 
conjunction with any other information or technique, to identify any 
individual student, teacher, administrator, or other individual and who 
knowingly discloses, publishes, or uses for a purpose other than a 
statistical purpose, or who otherwise violates subsection (a)(2)(A) or 
(B), shall be found guilty of a class E felony and imprisoned for not 
more than 5 years, or fined as specified in section 3571 of title 18 of 
the United States Code, or both.
    (8) Nothing in this section shall restrict the right of the 
Secretary, the Comptroller General of the United States, the Director 
of the Congressional Budget Office, and the Librarian of Congress to 
gain access to any reports or other records, including information 
identifying individuals, in the Center's possession, except that the 
same restrictions on disclosure that apply to the Center under 
subsection (b)(1) and (7) shall apply.

SEC. 409. DISSEMINATION.

    (a) General Requests.--(1) The Center may furnish transcripts or 
copies of tables and other statistical records and make special 
statistical compilations and surveys for State and local officials, 
public and private organizations, and individuals.
    (2) The Center shall provide State and local educational agencies 
opportunities to suggest the development of particular compilations of 
statistics, surveys, and analyses that would assist such educational 
agencies.
    (b) Congressional Requests.--The Center shall furnish such special 
statistical compilations and surveys as the Congress may request.
    (c) Joint Statistical Projects.--The Secretary may engage in joint 
statistical projects related to the purposes of this Act or other 
statistical purposes authorized by law with nonprofit organizations or 
agencies, and the cost of such projects shall be shared equitably as 
determined by the Secretary.
    (d) Fees.--(1) Statistical compilations and surveys under this 
section, other than those carried out pursuant to subsections (b) and 
(c), may be made subject to the payment of the actual or estimated cost 
of such work.
    (2) All funds received in payment for work or services described in 
this paragraph shall be deposited in a separate account that may be 
used to pay directly the costs of such work or services, to repay 
appropriations that initially bore all or part of such costs, or to 
refund excess sums when necessary.
    (e) Access.--(1) The Center shall cooperate with other Federal 
agencies having a need for educational data in providing access to 
educational data received by the Center.
    (2) The Center shall, in accordance with such terms and conditions 
as the Secretary may prescribe, provide all interested parties, 
including public and private agencies and individuals, direct access to 
data collected by the Center for the purposes of research and acquiring 
statistical information.

SEC. 410. COOPERATIVE EDUCATION STATISTICS SYSTEMS.

    The Commissioner shall establish 1 or more national cooperative 
education statistics systems for the purpose of producing and 
maintaining, with the cooperation of the States, comparable and uniform 
information and data on elementary and secondary education, 
postsecondary education, and libraries that are useful for policymaking 
at the Federal, State, and local levels. In carrying out this section, 
the Commissioner may provide technical assistance and make grants and 
enter into contracts and cooperative agreements.

SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

    (a) Establishment.--The Commissioner shall, with the advice of the 
Council established by section 407, carry out, through grants, 
contracts, or cooperative agreements with 1 or more qualified 
organizations, or consortia thereof, a National Assessment of 
Educational Progress (the ``National Assessment'').
    (b) Purpose; Contents.--(1) The purpose of the National Assessment 
is to provide a fair and accurate presentation of educational 
achievement in reading, writing, and other subjects that are included 
in National Education Goal Three.
    (2) The Commissioner, in carrying out the National Assessment, 
shall use sampling techniques that produce data that are representative 
on a national and regional basis and on a State basis pursuant to 
paragraph (3). In addition, the Commissioner shall--
            (A) collect and report data on a periodic basis, but at 
        least once every 2 years, on students at ages 9, 13, and 17 and 
        in grades 4, 8, and 12 in public and private schools;
            (B) report achievement data on a basis that ensures valid 
        and reliable trend reporting;
            (C) include information on special groups; and
            (D) ensure that achievement data are made available on a 
        timely basis following official reporting, in a manner that 
        facilitates further analysis.
    (3)(A)(i) The Commissioner, in carrying out the National 
Assessment, may conduct State assessments of student achievement in 
grades 4, 8, and 12.
    (ii) Each such State assessment, in each subject area and at each 
grade level shall be conducted on a trial basis.
    (B)(i) States wishing to participate in State assessments shall 
enter into an agreement with the Secretary pursuant to subsection 
(d)(2).
    (ii) Such agreement shall contain information sufficient to give 
States full information about the process for consensus decisionmaking 
on objectives to be tested, and of the standards for sampling, test 
administration, test security, data collection, validation, and 
reporting.
    (C) A participating State shall review and give permission for the 
release of results from any test of its students administered as a part 
of a State assessment prior to the release of such data. Refusal by a 
State to release its data shall not restrict the release of data from 
other States that have approved the release of such data.
    (4) In carrying out the National Assessment, the Commissioner shall 
not collect any data that are not directly related to the appraisal of 
educational performance, achievement, and traditional demographic 
reporting variables, or to the fair and accurate presentation of such 
information.
    (5) In carrying out the National Assessment, the Commissioner may 
provide technical assistance to States, localities, and other parties.
    (c) Access.--(1) Except as provided in paragraph (2), the public 
shall have access to all data, questions, and test instruments of the 
National Assessment.
    (2)(A) The Commissioner shall ensure that all personally 
identifiable information about students, their educational performance, 
and their families, and that information with respect to individual 
schools, remains confidential, in accordance with section 552a of title 
5, United States Code.
    (B) Notwithstanding any other provision of law, the Commissioner 
may decline to make available to the public for a period, not to exceed 
10 years after initial use, cognitive questions that the Commissioner 
intends to reuse in the future.
    (C)(i) The Commissioner may, upon the request of a State 
educational agency or a local educational agency, in a limited number 
of cases and on a trial basis, make National Assessment test 
instruments available for assessing aggregate student achievement at 
the local educational agency level.
    (ii)(I) Participation by a local educational agency shall be 
voluntary.
    (II) A State requesting the participation of a local educational 
agency must accompany this request with a statement of full written 
concurrence by such agency and that such agency is requesting to 
participate in the local assessment.
    (iii) Before receiving such instruments, an agency shall provide 
the Commissioner with assurances that confidentiality and security 
requirements and testing protocols, prescribed by the Commissioner, 
will be complied with in the use of such instruments.
    (d) Participation.--(1) Participation in the national and regional 
assessments by State and local educational agencies shall be voluntary.
    (2) Participation in assessments made on a State basis shall be 
voluntary. The Commissioner shall enter into an agreement with any 
State that desires to carry out an assessment for the State under this 
subsection. Each such agreement shall contain provisions designed to 
ensure that the State will--
            (A) participate in the assessment; and
            (B) pay from non-Federal sources the non-Federal share of 
        participation.
    (3)(A) For each fiscal year, the non-Federal share for the purpose 
of paragraph (2)(B) shall be--
            (i) the cost of conducting the assessment at the school 
        level for all public schools in the State sample, including the 
        analysis and reporting of the data;
            (ii) the cost of coordination within the State; and
            (iii) other reasonable costs specified by the Secretary in 
        the agreement described in paragraph (2).
    (B) The non-Federal share of payments under this paragraph may be 
in cash or in kind, fairly valued.
    (C) The agreement described in paragraph (2) shall describe the 
manner in which, the costs of administering the assessment to private 
nonprofit schools included in the State sample may be met.
    (4) The implementation of subparagraph (C) of paragraph (2) of 
subsection (d) shall involve no cost to the Federal Government.
    (e) Student Performance Levels.--(1) The National Assessment 
Governing Board established under section 412, working with the 
Assistant Secretary, shall develop appropriate student performance 
levels for each age and grade in each subject area to be tested under 
the National Assessment.
    (2) The Commissioner, with the advice of the Council, shall 
establish rigorous standards for the evaluation of such levels.
    (3)(A) Such levels shall be--
            (i) devised through a national consensus approach, 
        providing for active participation of teachers, curriculum 
        specialists, local school administrators, parents, and 
        concerned members of the general public;
            (ii) used on a trial basis until the Commissioner 
        determines, through an evaluation under subsection (f), that 
        such levels meet the standards under paragraph (2) and are 
        reasonable, valid, and informative to the public; and
            (iii) updated as appropriate.
    (B) In using such levels on a trial basis, the Commissioner and the 
Board may only issue reports on such levels separate and apart from the 
regular reports on the National Assessment and State assessments.
    (4) After determining that such levels are reasonable, valid and 
informative, the Commissioner may use such levels or other methods or 
indicators for reporting results of the National Assessment and State 
assessments.
    (f) Review of National and State Assessments.--(1) The Commissioner 
shall provide for continuing reviews by the National Academy of 
Education or the National Academy of Sciences of the National 
Assessment, State assessments, local educational agency assessments, 
and student performance levels. Such reviews shall address whether each 
trial state assessment is properly administered, produces high quality 
data that is valid and reliable, produces data on student achievement 
that is not otherwise available to the State exclusive of data 
comparing participating States to each other and the Nation, and is a 
cost-effective method of producing the data. The Commissioner shall 
also carry out evaluation studies by the Center and solicitation of 
public comment on the conduct and usefulness of the National 
Assessment. The Commissioner shall report to the Congress, the 
President, and the Nation on the findings and recommendations of such 
reviews.
    (2) The Commissioner shall consider the findings and 
recommendations in designing the competition to select the 
organization, or organizations, through which the Office carries out 
the National Assessment.
    (g) Coverage Agreements.--(1) The Secretary and the Secretary of 
Defense may enter into an agreement, including such terms as are 
mutually satisfactory, to include in the National Assessment the 
defense dependents education system established under the Defense 
Dependents' Education Act of 1978.
    (2) The Secretary and the Secretary of the Interior may enter into 
an agreement, including such terms as are mutually satisfactory, to 
include in the National Assessment schools for Indian children operated 
or supported by the Bureau of Indian Affairs.

SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.

    (a) Establishment.--There is established the National Assessment 
Governing Board (the ``Board'') which shall formulate policy guidelines 
for the National Assessment, as provided in subsection (e).
    (b) Membership.--(1) The Board shall be appointed by the Secretary 
and shall be composed of--
            (A) 2 Governors, or former Governors, who shall not be 
        members of the same political party;
            (B) 2 State legislators, who shall not be members of the 
        same political party;
            (C) 2 chief State school officers;
            (D) 1 member of a State board of education;
            (E) 1 superintendent of a local educational agency;
            (F) 1 member of a local board of education;
            (G) 3 classroom teachers representing the grade levels at 
        which the National Assessment is conducted;
            (H) 1 representative of business or industry;
            (I) 2 curriculum specialists;
            (J) 3 testing and measurement experts;
            (K) 1 nonpublic school administrator or policymaker;
            (L) 2 school principals, one of whom is an elementary 
        school principal and the other of whom is a secondary 
        principal; and
            (M) 4 additional members who are representatives of the 
        general public, including parents.
    (2) The Assistant Secretary for Educational Research and 
Improvement shall serve an an ex officio and nonvoting member of the 
Board.
    (3) In making appointments under this subsection and filling 
vacancies under subsection (d), the Secretary shall ensure that the 
membership of the Board reflects regional, racial, gender, and cultural 
diversity and balance.
    (c) Terms.--(1) Terms of service of members of the Board shall be 
staggered and may not exceed a period of 3 years, as determined by the 
Secretary.
    (2) Members of the Board may serve not more than two consecutive 
terms.
    (3) A member of the Board who changes status under subsection (b) 
during the term of the appointment of the member may continue to serve 
as a member until the expiration of such term.
    (d) Vacancies.--The Secretary shall appoint new members to fill 
vacancies on the Board--
            (1) after soliciting recommendations from a wide variety of 
        organizations, including those representing the types of 
        individuals listed in subsection (b)(1); and
            (2) in a manner which maintains the composition, diversity 
        and balance of the Board required under subsection (b).
    (e) Duties.--(1) The Board, working with the Assistant Secretary, 
shall develop--
            (A) appropriate student performance levels as provided in 
        section 411(e);
            (B) assessment objectives and test specifications through a 
        national consensus approach which includes the active 
        participation of teachers, curriculum specialists, local school 
        administrators, parents, and concerned members of the public;
            (C) guidelines for analysis plans and for reporting and 
        disseminating National Assessment results; and
            (D) recommendations for actions needed to improve the form 
        and use of the National Assessment.
    (2) The Board, working with the Commissioner, shall take steps to 
ensure that all items selected for use in the National Assessment are 
free from racial, cultural, gender, or regional bias.
    (3) In carrying out the duties required by paragraph (1), the Board 
shall seek technical advice, as appropriate, from the Commissioner and 
the Advisory Council on Education Statistics.
    (4) Within 90 days following an evaluation of the student 
performance levels under section 411(f), the Board shall make a report 
to the Secretary of Education, the Committee on Education and Labor of 
the House of Representatives, and the Committee on Labor and Human 
Resources of the Senate describing the steps the Board is taking to 
respond to each of the recommendations contained in such evaluation.
    (f) Personnel.--(1) The Secretary may appoint, at the request of 
the Board, such staff as will enable the Board to carry out its 
responsibilities under subsection (e)(1).
    (2) Such appointments may include, for terms not to exceed 3 years 
and without regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, not more than 6 
technical employees who may be paid without regard to the provisions of 
chapter 51 and subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates.
    (g) Coordination.--The Commissioner and the Board shall meet 
periodically to ensure coordination of their duties and activities 
relating to the National Assessment.
    (h) Administration.--(1) Sections 10, 11, and 12 of the Federal 
Advisory Committee Act are the only sections of such Act that shall 
apply with respect to the Board.
    (2)(A) No member or employee of the Board, in the course of the 
official duties of such member or employee, may engage in activities 
designed to directly or indirectly influence legislation which is or 
may be considered by the Congress, except in instances where a 
representative of the Board has been invited to provide testimony 
before a committee of the Congress.
    (B) Any member or employee of the Board who knowingly engages in 
the conduct prohibited by subparagraph (A) may be subject to either 
confinement for a period not to exceed 6 months or a fine not to exceed 
$10,000, or both.

SEC. 413. AUTHORIZATION OF APPROPRIATIONS.

    (1) There are authorized to be appropriated to carry out this title 
(except section 412), $103,200,000 for fiscal year 1995 and such sums 
as may be necessary for each of the fiscal years 1996, 1997, 1998, and 
1999.
    (2) There are authorized to be appropriated to carry out section 
412 $2,000,000 for each of the fiscal years 1995 and 1996.

                         TITLE V--MISCELLANEOUS

SEC. 501. EVALUATION OF FEDERAL EFFORTS TO ASSIST IN SCHOOL REFORM.

    (a)(1) In collaboration with the national assessment conducted 
pursuant to title I of the Elementary and Secondary Education Act as 
amended by this Act, the Secretary of Education shall conduct a 
comprehensive evaluation of how the Federal Government has assisted the 
States to reform their educational systems through the various 
education laws enacted during the 103d Congress.
    (2) Such evaluation shall encompass the changes made in Federal 
programs pursuant to this Act as well as in any other law enacted 
during this Congress amending a Federal program assisting pre-
elementary, elementary, or secondary education. In addition, such 
evaluation shall encompass new initiatives enacted into law, such as 
the Goals 2000: Educate America Act, and the School-to-Work 
Opportunities Act and shall be coordinated with evaluations of such 
Acts.
    (b)(1) This evaluation shall include a comprehensive review of 
these laws and programs to determine their overall effect on--
            (A) the readiness of children for schooling,
            (B) the improvement in educational attainment of students 
        in elementary and secondary education, and
            (C) the improvement in skills needed by students to obtain 
        employment upon completion of high school or further education.
    (2) This evaluation shall also include a comprehensive review of 
these programs to determine their overall effect--
            (A) on school reform efforts undertaken by States,
            (B) on efforts by States to adopt educational standards to 
        improve schooling for all children, to align their curricula, 
        teacher training, and assessments with such standards, and to 
        bring flexibility to the rules governing how education is to be 
        provided, and
            (C) on student populations who have been the traditional 
        beneficiaries of Federal assistance to determine whether their 
        educational attainment has been improved through these changes.
    (3) This evaluation shall also evaluate how the National Assessment 
Governing Board, the Advisory Council on Education Statistics, the 
National Education Goals Panel, the National Education Statistics and 
Improvement Council and any other Board established to analyze, 
address, or approve standards and assessments coordinates, interacts, 
and/or duplicates efforts to assist the States to reform their 
educational systems.
    (4) This evaluation shall also include a review of these laws and 
programs in such detail as the Secretary deems appropriate and may 
involve cooperation with other Federal departments and agencies in 
order to incorporate their evaluations and recommendations.
    (c)(1) The Secretary shall appoint an independent panel to review 
the plan for this evaluation, to advise on its progress, and to 
comment, if it so wishes, on the final report. The panel shall not be 
subject to the Federal Advisory Committee Act.
    (2) The Secretary shall submit this report by January 1, 1998, to 
the Committee on Education and Labor of the United States House of 
Representatives and to the Committee on Labor and Human Resources.

SEC. 502. STUDY OF THE EFFECTIVENESS AND IMPACT OF FEDERAL CATEGORICAL 
              AID PROGRAMS.

    (a) Study.--In addition to the national assessment conducted 
pursuant to section 1501 of the Elementary and Secondary Education Act 
of 1965, as amended by section 101 of this Act, the Secretary of 
Education shall conduct a comprehensive study of the effectiveness of 
other Federal categorical aid programs and the administrative impact of 
such programs on schools and local educational agencies.
    (b) Contents.--Such study shall--
            (1) examine the effectiveness of elementary and secondary 
        school categorical programs, including those authorized in this 
        Act and elsewhere, in improving the educational achievement of 
        participating students;
            (2) encompass an in-depth evaluation of the administrative 
        impact of the broad range of categorical programs on 
        participating schools and local educational agencies;
            (3) include a comprehensive review of the programs to 
        determine their effect on--
                    (A) the improvement in educational achievement of 
                participating students;
                    (B) school and local educational agencies' 
                administrative responsibilities and structure, 
                including the use of local and State resources, with 
                particular attention to schools and agencies serving a 
                high concentration of disadvantaged students; and
                    (C) overall school reform efforts, including 
                efforts undertaken by States and encouraged by Federal 
                laws, such as the Goals 2000: Educate America Act;
            (4) evaluate the effect of Federal categorical programs at 
        the elementary and secondary levels on the proliferation of 
        State categorical education aid programs and regulations, and 
        the impact on student achievement and school and local 
        educational agency administrative responsibilities and 
        structure; and
            (5) examine the effect of waivers on categorical program 
        requirements and other flexibility provisions in this Act, the 
        School-to-Work Opportunities Act, and the Goals 2000: Educate 
        America Act on improvement in educational achievement of 
        participating students and on school and local educational 
        agency administrative responsibilities, structure, and 
        resources.
    (c) Panel.--The Secretary shall appoint an independent panel to 
review the plan for the study, to advise on the progress of the study, 
and to comment, if it so wishes, on the final report.
    (d) Report.--The Secretary shall submit the report not later than 
January 1, 1997, to the Committee on Education and Labor of the House 
of Representatives, to the Senate Committee on Labor and Human 
Resources, and to the Labor, Health and Human Services, and Education 
Subcommittees of the House and Senate Appropriations Committees.

SEC. 503. BUDGET COMPLIANCE.

    Any authority or requirement to make funds available under this Act 
shall be effective only to the extent provided in appropriations Acts.
            Passed the House of Representatives March 24, 1994.
            Attest:
                                                   DONNALD K. ANDERSON,
                                                                 Clerk.
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