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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3229 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3229

      To amend the Elementary and Secondary Education Act of 1965.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 6, 1993

 Mr. Serrano (for himself, Mr. Becerra, Ms. Roybal-Allard, Mr. Pastor, 
 Mr. de la Garza, Mr. de Lugo, Mr. Ortiz, Mr. Richardson, Mr. Torres, 
  Ms. Ros-Lehtinen, Mr. Diaz-Balart, Mr. Gutierrez, Mr. Menendez, Mr. 
  Romero-Barcelo, Mr. Tejeda, Ms. Velazquez, Mr. Underwood, Mr. Gene 
 Green of Texas, Mr. Miller of California, and Ms. English of Arizona) 
 introduced the following bill; which was referred to the Committee on 
                          Education and Labor

_______________________________________________________________________

                                 A BILL

 
      To amend the Elementary and Secondary Education Act of 1965.

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

                     TITLE I--EDUCATION IMPROVEMENT

SECTION 1. EDUCATION IMPROVEMENT.

    Section 1001 of the Elementary and Secondary Education Act of 1965 
is amended to read as follows:

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

    ``(a) Declaration of Policy.--In recognition of--
            ``(1) the most urgent need for educational improvement in 
        the Nation in schools with high concentrations of children from 
        low-income families and that it is the Federal role to provide 
        assistance to such schools;
            ``(2) the fact that all children, regardless of economic 
        circumstance, race, national origin, or English proficiency, 
        can learn and have the capacity to acquire the high-level 
        knowledge and skills in a broad range of subjects that will 
        allow them to participate fully in the economic, social, and 
        political life of the Nation;
            ``(3) the fact that within the educational system, positive 
        change in the lives of children occurs largely at the school 
        site and, therefore, there is a compelling need for measures to 
        strengthen the capacity of principals, teachers, school staff, 
        parents, students, and other members of the school community to 
        work in partnership to bring about such change;
            ``(4) the fact that parents and other responsible family 
        members are the first educators of children, particularly in 
        the early years, and must be actively involved in their 
        children's development and education both at home and in school 
        to help children to achieve the high-level skills called for 
        under this chapter;
            ``(5) the fact that parent involvement programs under this 
        chapter can help remove barriers to effective parent 
        participation in the success of the program and the education 
        of their children, and enhance the participation of parents and 
        other family members already involved;
            ``(6) the fact that schools have a role in working with 
        parents and health and social service providers to help 
        eliminate external barriers to learning and that patients and 
        health and social service providers have an obligation to 
        assist and cooperate with schools in performing this role;
            ``(7) the fact that effective strategies for educational 
        improvement, in particular schoolwide restructuring, have been 
        developed which, if made available to and implemented by 
        principals, teachers, and staff who have access to high-quality 
        professional training, will enable virtually all students to 
        acquire high level skills and knowledge;
            ``(8) the fact that all children are entitled to 
        participate in a broad and challenging curriculum and to have 
        access to resources sufficient to address other education 
        needs;
            ``(9) the fact that the purposes of this chapter will be 
        best served by the elimination of barriers to student learning 
        that separate children from the regular instructional program, 
        homogeneous grouping and tracking, reliance upon low-level, 
        basic skills, norm-referenced testing, and the replacement of 
        these practices with the education practices, services, and 
        resources called for by this chapter;
            ``(10) the fact that the historic exclusion from Chapter 1 
        services of limited English proficient children from low-income 
        families does not foster the purposes of this chapter, since 
        such children are often at high risk of school failure, and 
        that the purposes of this Act will best be served by ensuring 
        the participation of low-income limited English proficient 
        students; and
            ``(11) the economic, political, social, and ethical reasons 
        that national policy predicated on the proposition that all 
        children can and must learn and that no other objective of 
        national policy shall be accorded higher priority or greater 
        immediacy,
the Congress declares it to be the policy of the United States to--
            ``(A) provide financial assistance to State and local 
        educational agencies to meet the special needs of economically 
        disadvantaged children at the preschool, elementary, and 
        secondary levels;
            ``(B) expand the program authorized by this chapter over 
        the next 10 years by increasing funding for this chapter each 
        fiscal year thereby increasing the percentage of eligible 
        children served in each fiscal year with the intent of serving 
        all eligible children by fiscal year 2004; and
            ``(C) provide such assistance in a way which eliminates 
        unnecessary administrative burden and paperwork and overly 
        prescriptive regulations and provides flexibility to State and 
        local educational agencies in making sound educational 
        decisions.
    ``(b) Statement of Purpose.--It is the purpose of this chapter to 
assist State and local educational agencies to meet the education needs 
of the children of low-income families, particularly children in 
schools with high concentrations of poverty, so that all such children 
will attain high levels of proficiency in the knowledge and skills that 
are necessary for sustained success. The means for accomplishing the 
mission include--
            ``(1) establishing prekindergarten and other effective 
        services and programs to ensure readiness for school;
            ``(2) fostering the establishment of high levels of 
        expectation and high standards for student performance and 
        accurate means for assessing whether standards have been met;
            ``(3) assisting teachers through professional development 
        and other programs in enhancing their teaching skills and 
        practices to address the special needs of educationally at-risk 
        and limited English proficient students and to improve the 
        educational outcomes of all students;
            ``(4) assisting in the establishment at each participating 
        school of a broad and challenging curriculum available to all 
        students, including limited English proficient students;
            ``(5) strengthening the classroom program as part of 
        restructuring the school to improve educational outcomes of all 
        students by providing in-class and extra services and 
        assistance, including extending the school day or school year, 
        or reconstructing the school day or instituting team teaching 
        or combining different grade-levels, which strengthen and 
        reinforce the experience children receive through full 
        participation in a regular school program of high quality;
            ``(6) assuring that all schools within a state that 
        participate in the chapter 1 program receive essential 
        educational services that are comparable to those received by 
        schools that do not participate in the chapter 1 program; and
            ``(7) establishing methods of school, district, and state-
        level accountability, including incentives and sanctions, that 
        will help ensure that the mission of this chapter is 
        achieved.''.

SEC. 2. BASIC PROGRAMS.

    Part A of chapter 1 of title I of the Elementary and Secondary 
Education Act of 1965 is amended to read as follows:

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

                        ``Subpart 1--Allocations

``SEC. 1005. BASIC GRANTS.

    ``(a) Amount of Grants.--
            ``(1) Grants for territories.--There is authorized to be 
        appropriated for each fiscal year for the purpose of this 
        subparagraph 0.8 percent of the amount appropriated for such 
        year for payments to States under this part. The amount 
        appropriated pursuant to this subparagraph shall be allotted by 
        the Secretary (A) among Guam, American Samoa, the Virgin 
        Islands, the Northern Mariana Islands, and the Trust Territory 
        of the Pacific Islands according to their respective need for 
        grants under this part, and (B) to the Secretary of the 
        Interior in the amount necessary (i) to make payments pursuant 
        to paragraph (1) of subsection (d), and (ii) to make payments 
        pursuant to paragraph (2) of subsection (d). The grant which a 
        local educational agency in Guam, American Samoa, the Virgin 
        Islands, the Northern Mariana Islands, and the Trust Territory 
        of the Pacific Islands is eligible to receive shall be 
        determined pursuant to such criteria as the Secretary 
        determines will best carry out the purposes of this chapter.
            ``(2) Grants for local educational agencies.--
                    ``(A) In any case in which the Secretary determines 
                that satisfactory data for that purpose are available, 
                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 paragraph (3)), 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.
                    ``(B) In any case in which such data are not 
                available, subject to paragraph (3), the grant for any 
                local educational agency in 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 in accordance 
                with the basic criteria prescribed by the Secretary.
            ``(3) Special allocation procedures.--
                    ``(A) Upon determination by the State educational 
                agency that a local educational agency in the State is 
                unable or unwilling to provide for the special 
                educational needs of children described in clause (C) 
                of paragraph (1) of subsection (c), who are living in 
                institutions for neglected or delinquent children, the 
                State educational agency shall, if it assumes 
                responsibility for the special educational needs of 
                such children, be eligible to receive the portion of 
                the allocation to such local educational agency which 
                is attributable to such neglected or delinquent 
                children, but if the State educational agency does not 
                assume such responsibility, any other State or local 
                public agency, as determined by regulations established 
                by the Secretary, which does assume such 
                responsibility, shall be eligible to receive such 
                portion of the allocation.
                    ``(B) In the case of local educational agencies 
                which serve in whole or in part the same geographical 
                area, and in the case of a local educational agency 
                which provides free public education for a substantial 
                number of children who reside in the school district of 
                another local educational agency, the State educational 
                agency may allocate the amount of the grants for those 
                agencies among them in such manner as it determines 
                will best carry out the purposes of this chapter.
                    ``(C) In any State in which a large number of local 
                educational agencies overlap county boundaries, the 
                State educational agency may apply to the Secretary for 
                authority during any particular fiscal year to make the 
                allocations under this part (other than section 1006) 
                directly to local educational agencies without regard 
                to the counties or may continue to make such 
                allocations if the agency had the authority to do so 
                under chapter 1 of the Education Consolidation and 
                Improvement Act of 1981. If the Secretary approves an 
                application of a State educational agency for a 
                particular year under this subparagraph, the State 
                educational agency shall provide assurance that such 
                allocations will be made using precisely the same 
                factors for determining a grant as are used under this 
                part and that a procedure will be established through 
                which local educational agencies dissatisfied with the 
                determinations made by the State educational agency may 
                appeal directly to the Secretary for a final 
                determination.
            ``(4) Definition.--For purposes of this subsection, the 
        term `State' does not include Guam, American Samoa, the Virgin 
        Islands, the Northern Mariana Islands, and the Trust Territory 
        of the Pacific Islands.
    ``(b) Minimum Number of Children To Qualify.--No grant may be made 
under this part to a local educational agency with fewer than 10 
children counted under subsection (c) of this section. No grant may be 
made under this part to a local educational agency with fewer than 100 
children counted under subsection (c) unless the number of children 
counted under such subsection is equal to, or greater than, 18 percent 
of the total number of children aged 5-17 years, inclusive, in the 
local educational agency.
    ``(c) Children To Be Counted.--
            ``(1) Categories of children.--The number of children to be 
        counted for purposes of this section is the aggregate of--
                    ``(A) the number of children aged 5 to 17, 
                inclusive, in the school district of the local 
                educational agency from families below the poverty 
                level as determined under 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);
                    ``(C) the number of children aged 5 to 17, 
                inclusive, in the school district of such agency living 
                in institutions for neglected or delinquent children 
                (other than such institutions operated by the United 
                States) 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; and
                    ``(D) the number of children aged 5 to 17, 
                inclusive, in the school district of such agency who 
                are not counted under subparagraph (A) and who speak 
                English less than `very well', as determined by the 
                most recent satisfactory data available from the 
                Department of Commerce;
        minus a number equal to 2 percent of the population of 
        children, aged 5 to 17, inclusive, in the local educational 
        agency as determined by the Department of Commerce.
            ``(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 1990 decennial census (with updates 
                provided by the Department of Commerce as required 
                under subparagraph (C)) for local educational agencies; 
                and 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.
                    ``(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. 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) For purposes of section 2(A), beginning in 
                1995 and every 2 years thereafter, 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 in each State, county, and 
                local educational agency. 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 
                adjust such estimates for population undercounts of 
                certain groups, particularly low-income families. 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) Program for Indian Children.--
            ``(1) From the amount allotted for payments to the 
        Secretary of the Interior under the second sentence of 
        subsection (a)(1), the Secretary of the Interior shall make 
        payments to local educational agencies, upon such terms as the 
        Secretary determines will best carry out the purposes of this 
        chapter with respect to out-of-State Indian children in the 
        elementary and secondary schools of such agencies under special 
        contracts with the Department of the Interior. The amount of 
        such payment may not exceed, for each such child, 40 percent of 
        (A) the average per pupil expenditure in the State in which the 
        agency is located, or (B) 120 percent of such expenditure in 
        the United States, whichever is the greater.
            ``(2) The amount allotted for payments to the Secretary of 
        the Interior under the second sentence of subsection (a)(1) 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 educationally deprived Indian 
        children on reservations serviced by elementary and secondary 
        schools for Indian children operated with Federal assistance or 
        operated by the Department of the Interior. Such payment shall 
        be made pursuant to an agreement between the Secretary and the 
        Secretary of the Interior containing such assurances and terms 
        as the Secretary determines will best achieve the purposes of 
        this chapter. Such agreement shall contain (A) an assurance 
        that payments made pursuant to this subparagraph will be used 
        solely for programs and projects approved by the Secretary of 
        the Interior which meet the applicable requirements of subpart 
        2 of this part and that the Department of the Interior will 
        comply in all other respects with the requirements of this 
        chapter, and (B) provision for carrying out the applicable 
        provisions of subpart 2 of this part and part F. Such agreement 
        shall consider a tribal organization operating a school under 
        the Indian Self-determination and Education Assistance Act (25 
        U.S.C. 450 et seq.) or the Tribally Controlled Schools Act of 
        1987 as a local educational agency, and shall consider the 
        Secretary of the Interior as a State or State educational 
        agency for all purposes defining the authority of States or 
        State educational agencies relative to local educational 
        agencies. If, in the capacity as a State educational agency, 
        the Secretary of the Interior promulgates regulations 
        applicable to such tribal organizations, the Secretary shall 
        comply with section 1451 of this Act and with section 553 of 
        title 5 of the United States Code, relating to administrative 
        procedure, and such regulations must be consistent with 
        subsections (d) and (e) of section 1121, section 1130, and 
        section 1133 of the Education Amendments of 1978.
    ``(e) State Minimum.--
            ``(1) For any fiscal year for which--
                    ``(A) sums available for the purposes of this 
                section exceed sums available under chapter 1 of the 
                Education Consolidation and Improvement Act of 1981 for 
                fiscal year 1988; and
                    ``(B)(i) sums available for the purpose of section 
                1006 equal or exceed $400,000,000, or
                    ``(ii) sums available for the purpose of section 
                1005 equal or exceed amounts appropriated for such 
                purpose in fiscal year 1988 by $700,000,000,
        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) The provisions of paragraph (1) shall apply only if 
        each State is allotted an amount which is not less than the 
        payment made to each State under chapter 1 of the Education 
        Consolidation and Improvement Act of 1981 for fiscal year 1988.
            ``(3)(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.
    ``(f) Duration of Assistance.--During the period beginning January 
1, 1995, and ending September 30, 2004, the Secretary shall, in 
accordance with the provisions of this part, make payments to State 
educational agencies for grants made on the basis of entitlements 
created under this section.

``SEC. 1006. GRANTS FOR LOCAL EDUCATIONAL, AGENCIES IN COUNTIES WITH 
              ESPECIALLY HIGH CONCENTRATIONS OF CHILDREN FROM LOW-
              INCOME FAMILIES.

    ``(a) Eligibility for and Amount of Special Grants.--
            ``(1)(A) Except as otherwise provided in this paragraph, 
        each county, in a State other than Guam, American Samoa, the 
        Virgin Islands, the Northern Mariana Islands, and the Trust 
        Territory of the Pacific Islands, which is eligible for a grant 
        under this chapter 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 
                1005(c) of this chapter in the school district of local 
                educational agencies in such county for the preceding 
                fiscal year exceeds 6,500, or
                    ``(ii) the number of children counted under section 
                1005(c) exceeds 18 percent of the total number of 
                children aged five to seventeen, inclusive, in the 
                school districts of local educational agencies in such 
                county 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 subsection (c) 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 
                (B), 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 county in which there are local educational 
        agencies eligible to receive an additional grant under this 
        section for any fiscal year the Secretary shall determine the 
        product of--
                    ``(A) the number of children counted under section 
                1005(c) for the current fiscal year--
                            ``(i) the number of children in excess of 
                        6,500 counted under section 1005(c) for the 
                        preceding fiscal year, in the school districts 
                        of local educational agencies of a county which 
                        qualifies on the basis of subparagraph (A) of 
                        paragraph (1); or
                            ``(ii) the number of children counted under 
                        section 1005(c) for the preceding fiscal year 
                        in the school districts of local educational 
                        agencies in a county which qualifies on the 
                        basis of subparagraph (B) of paragraph (1); and
                    ``(B) the quotient resulting from the division of 
                the amount determined for those agencies under section 
                1005(a)(2) of this chapter for the fiscal year for 
                which the determination is being made divided by the 
                total number of children counted under section 1005(c) 
                for that agency for the preceding fiscal year.
            ``(3) The amount of the additional grant to which an 
        eligible county is entitled under this section for any fiscal 
        year shall be an amount which bears the same ratio to the 
        amount reserved under subsection (c) for that fiscal year as 
        the product determined under paragraph (2) for such county for 
        that fiscal year bears to the sum of such products for all 
        counties 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 1005(c) 
        for any county, and the total number of children aged five to 
        seventeen, inclusive, in school districts of local educational 
        agencies in such county, on the basis of the most recent 
        satisfactory data available at the time of the payment for such 
        county as determined under section 1005.
    ``(b) Payments; Use of Funds.--
            ``(1) The total amount which counties in a State are 
        entitled to under this section for any fiscal year shall be 
        added to the amount paid to that State under section 1401 for 
        such year. From the amount paid to it under this section, the 
        State shall distribute to local educational agencies in each 
        county of the State the amount (if any) to which it is entitled 
        under this section.
            ``(2) The amount paid to a local educational agency under 
        this section shall be used by that agency for activities 
        undertaken pursuant to its application submitted under section 
        1012 and shall be subject to the other requirements in subpart 
        2 of this part.
    ``(c) Reservation of Funds.--Of the total amounts made available 
for this part, 50 percent shall be allocated following the provisions 
of section 1005, and 50 percent shall be allocated following the 
provisions of subsections (a) and (b) of this section.
    ``(d) Ratable Reduction Rule.--If the sums available under 
subsection (c) 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.

                        ``Subpart 2--Allocations

``SEC. 1011. USES OF FUNDS.

    ``A local educational agency may use funds received under this part 
only for education programs and activities which are designed to 
facilitate the attainment by students and schools of the standards set 
forth in section 1012 and which are included in an application for 
assistance approved by the State educational agency. Such programs and 
activities may include--
            ``(1) preschool through secondary instructional programs, 
        including programs conducted before, during and after the 
        regular school day and during the summer;
            ``(2) staff development and training programs to improve 
        instructional practices aimed at effective teaching strategies 
        for economically deprived or limited-English proficient 
        children, the development and use of nondiscriminatory, 
        developmentally appropriate, and linguistically accessible 
        classroom-based assessments, use of district and State 
        assessment instruments, and effective strategies for involving 
        parents, in particular limited-English proficient parents and 
        parents with limited literacy skills;
            ``(3) the design and implementation of, and staff 
        development and training on the use of, assessments based on 
        sound psychometric practice and theoretically based research, 
        including contemporary theories and research on language 
        proficiency and communicative competence and other measures to 
        assess whether a student is limited-English proficient and the 
        monitoring of the students' academic and English language 
        acquisition progress;
            ``(4) design and implementation at the school and district 
        levels of assessments integrated with curriculum and 
        instruction, that foster teaching and learning, are adaptable 
        to diverse student populations, encourage self-reflection and 
        decision-making, emphasize students' strengths and incorporate 
        into the design and implementation those elements and 
        characteristics that enable all students to benefit from 
        instructional practices and assessment outcomes, including 
        opportunities for limited-English proficient students to be 
        assessed in their primary language;
            ``(5) planning and implementing schoolwide improvement 
        initiatives to improve instruction and other education reforms, 
        including restructuring the school day, team teaching, 
        heterogeneous classes, and other methods, that do not separate 
        participating children from instruction in the regular school 
        program in core subjects;
            ``(6) development and implementation of parent involvement 
        activities and training pursuant to section 1016;
            ``(7) acquisition of equipment and multilingual materials, 
        including books, computers, and other instructional resources;
            ``(8) activities undertaken pursuant to section 1019 
        designed to increase eligible students' access to health and 
        social services, if funds are spent in accordance with section 
        1019(e);
            ``(9) hiring additional teachers, including bilingual 
        teachers, consultants, bilingual aides, or other staff to 
        implement programs under this chapter; and
            ``(10) rewards provided pursuant to sections 1012 and 1021.

``SEC. 1012. STANDARDS, ASSURANCES, APPLICATIONS AND CAPACITY BUILDING.

    ``(a) Standards.--
            ``(1) Duties of the secretary.--The Secretary shall adopt 
        guidelines for the development by State educational agencies of 
        State standards in accordance with the following principles:
                    ``(A) Overarching standard.--The overarching 
                standard shall be the attainment of high level skills 
                and knowledge, meaning the ability to reason, read, 
                understand, interpret and analyze complex material in a 
                broad range of academic subjects, to use quantitative 
                skills for planning, analysis, and problem solving, to 
                speak and write effectively, and to work cooperatively 
                in teams as well as to think and act independently.
                    ``(B) Types of standards.--The standards shall be 
                of three types:
                            ``(i) Content standards that are culturally 
                        sensitive and set out the knowledge and skills, 
                        that schools must teach to enable all students, 
                        including those with limited English 
                        proficiency, to attain high levels of 
                        proficiency, and
                                    ``(I) shall be geared to the 
                                development of competencies that will 
                                qualify students for higher education 
                                and higher-skill occupations and will 
                                prepare them to function as 
                                knowledgeable and contributing citizens 
                                in society;
                                    ``(II) shall relate to specific 
                                subject areas, including reading, 
                                mathematics, and science, and shall 
                                also require the integration of 
                                knowledge and problem-solving skills in 
                                several disciplines;
                                    ``(III) shall be broad-ranging and 
                                encompass reading, mathematics, 
                                writing, science, history, and 
                                geography and other subjects as 
                                appropriate; and
                                    ``(IV) shall also call for the 
                                development of knowledge and skills in 
                                other areas that will prepare students 
                                to function as knowledgeable and 
                                contributing citizens, such as health, 
                                acquisition of a second-language, the 
                                arts and community service.
                            ``(ii) Student performance standards that 
                        establish both the degree or quality of 
                        proficiency ultimately expected of students, 
                        including limited English proficient students, 
                        in meeting the content standards and a range of 
                        intermediate benchmarks to serve as indicators 
                        for assessing the status and progress of 
                        student performance.
                            ``(iii) Opportunity-to-learn standards that 
                        include a series of measures that will be used 
                        to determine whether schools and teachers have 
                        been provided with the means to meet content 
                        standards and whether students, including 
                        limited English proficient students, have been 
                        provided a meaningful opportunity to meet 
                        performance standards including--
                                    ``(I) provision to students in each 
                                local educational agency and school of 
                                a culturally sensitive, developmentally 
                                appropriate, and linguistically 
                                accessible curriculum that meets the 
                                content standards prescribed in 
                                subsection (a)(1)(B)(i);
                                    ``(II) the use in each local 
                                educational agency and school of 
                                appropriately trained, licensed, or 
                                certified staff who are teaching in 
                                their areas of licensure or 
                                certification, and the use of 
                                appropriately trained or certified 
                                staff to teach limited English 
                                proficient students;
                                    ``(III) the use in each local 
                                educational agency and school of 
                                systematic instructional practices that 
                                can be shown to help economically 
                                deprived and limited English proficient 
                                students attain the standards set forth 
                                in this section and the elimination of 
                                instructional practices that have been 
                                shown to be ineffective in attaining 
                                the standards;
                                    ``(IV) provision to students in 
                                each local educational agency and 
                                school of technologically advanced 
                                equipment, such as computers, software 
                                programs or other equipment which 
                                facilitates learning;
                                    ``(V) provision to students in each 
                                local educational agency and school of 
                                an adequate quantity of developmentally 
                                appropriate, culturally sensitive, and 
                                linguistically accessible up-to-date 
                                resource materials and books;
                                    ``(VI) provision to limited-English 
                                proficient students of a curriculum 
                                designed to build on their existing 
                                linguistic and cognitive skills and 
                                address specific developmental needs 
                                based on students' strengths in 
                                language (listening, speaking, reading 
                                or writing) or content;
                                    ``(VII) the establishment by each 
                                local educational agency and school of 
                                an adequate number of facilities for 
                                students that are conducive to 
                                learning, clean, and safe;
                                    ``(VIII) the provision in each 
                                local educational agency and school of 
                                the high-quality staff development and 
                                other capacity-building measures 
                                specified in section 1012(c);
                                    ``(IX) the establishment in each 
                                local educational agency and school of 
                                the programs and procedures for parent 
                                involvement specified in section 1016;
                                    ``(X) the allocation of time in 
                                teachers' schedules that is adequate to 
                                enable them to review and share 
                                information on student achievement, to 
                                consult with their colleagues on the 
                                needs of individual students and on 
                                school improvement, to increase 
                                professional knowledge and skills, and 
                                to improve the effectiveness of their 
                                teaching;
                                    ``(XI) the use in each local 
                                educational agency and school of valid 
                                and nondiscriminatory assessment 
                                systems that are linguistically 
                                accessible and capable of providing 
                                coherent information about student 
                                attainments relative to the content 
                                standards and that are modeled on good 
                                instructional practices; and
                                    ``(XII) the use of appropriately 
                                trained teachers and other 
                                instructional staff in the development 
                                and use of State and local assessment 
                                measures.
                    ``(C) Assistance to state and local educational 
                agencies.--The Secretary shall make available to all 
                State educational agencies the best standards set by 
                professional associations and exemplary standards 
                submitted by State educational agencies under paragraph 
                (2) of this subsection and shall provide other 
                technical assistance to States and to the extent 
                practicable to local educational agencies in the 
                development of standards.
                    ``(D) Review of standards.--The Secretary shall 
                determine within 90 days after submission whether each 
                State educational agency has submitted standards that 
                meet the requirements of this section and shall require 
                State educational agencies that fail to submit 
                acceptable standards to select a set of standards from 
                among those State educational agency submissions the 
                Secretary has found acceptable.
            ``(2) Duties of state educational agencies.--
                    ``(A) Each State educational agency shall submit to 
                the Secretary by January 1, 1997, statewide content, 
                performance, and opportunity-to-learn standards that 
                comply with the requirements set forth in this section, 
                and guidelines for the development of local standards 
                by local educational agencies that comply with the 
                State standards.
                    ``(B) Each State educational agency shall develop 
                standards and guidelines that--
                            ``(i) incorporate the best standards set by 
                        professional associations;
                            ``(ii) provide assurances that the 
                        standards adopted for Chapter 1 students are 
                        not lower than those the State and local 
                        educational agency applies to non-Chapter 1 
                        students; and
                            ``(iii) provide assurances that the 
                        standards adopted for Chapter 1 students who 
                        are limited-English proficient are not lower 
                        than those developed for non-limited-English 
                        proficient students.
                    ``(C) To assist in the development of standards, 
                each State educational agency shall establish and 
                engage in a process of public consultation that shall 
                encourage the informed participation of persons 
                involved or interested in public education, including 
                leaders of professional education associations, 
                practitioners and persons experienced in the teaching 
                of economically deprived and limited-English proficient 
                children, parents, and community and business leaders.
                    ``(D) Each State educational agency, after approval 
                of its submission by the Secretary, shall assure that 
                its standards and guidelines are distributed to all 
                local educational agencies, that they are made widely 
                available on request and that summaries and other 
                information about the approved standards are prepared 
                and made available to professional education 
                associations, community and business leaders, teachers, 
                parents, and students. The information contained 
                therein shall be translated, to the extent feasible, 
                into any language that a significant percentage of the 
                parents of participatory children in the school speak 
                as their primary language.
            ``(3) Supplemental local standards.--Each local educational 
        agency and school shall--
                    ``(A) engage parents, teachers, and other school 
                staff and members of the school community in a 
                discussion of the State standards and guidelines for 
                the purpose of developing local standards to assure 
                adherence to the State standards;
                    ``(B) determine what additions to or revisions of 
                curriculum and instructional strategies are necessary 
                to enable students, including limited-English 
                proficient students, to meet the State standards;
                    ``(C) develop specific local educational agency and 
                school standards which facilitate adherence to the 
                State standards;
                    ``(D) assure that all members of the school 
                community are provided with clear information about the 
                State and local standards and about their 
                responsibilities for meeting them; and
                    ``(E) include the local standards with the school 
                and local educational agency achievement plans, 
                submitted to the State educational agency pursuant to 
                section 1012(c).
    ``(b) Assurances.--
            ``(1) State educational agency assurances.--Any State 
        desiring to participate under this chapter shall submit to the 
        Secretary, through its State educational agency, assurances 
        that such agency--
                    ``(A) will meet the requirements in section 435 
                (b)(2) and (b)(5) of the General Education Provisions 
                Act relating to fiscal control and fund accounting 
                procedures;
                    ``(B) will carry out the activities required under 
                this chapter, including standards, local educational 
                agency capacity-building, statewide comparability, 
                health and social services, assessment, and 
                enforcement;
                    ``(C) has on file a plan that meets the 
                requirements of section 1012(c)(4)(C); and
                    ``(D) will ensure that its local educational 
                agencies and State agencies receiving funds under this 
                chapter comply with all applicable statutory and 
                regulatory provisions pertaining to this chapter.
            ``(2) Local educational assurances.--As part of its 
        application pursuant to section 1012(c)(3), any local 
        educational agency desiring to participate under this chapter 
        shall submit to the State educational agency, assurances that 
        the local educational agency--
                    ``(A) will carry out the activities required under 
                this chapter, including standards, capacity building, 
                parent involvement, school comparability, health and 
                social services, assessment, and enforcement; and
                    ``(B) will ensure that all programs and activities 
                funded in whole or in part under this section are 
                properly evaluated and conducted according to accepted 
                professional standards and the results made widely 
                available to parents, school staff, and the public. The 
                information contained therein shall be translated, to 
                the extent feasible, into any language that a 
                significant percentage of the parents of participating 
                children in the school speak as their primary language.
    ``(c) Capacity Building, Staff Development, and School 
Improvement.--
            ``(1) Goals.--The goals of capacity building, staff 
        development and school improvement programs funded under this 
        chapter are--
                    ``(A) to assure that the curriculum, assessment, 
                instruction, support services and course placement 
                practices at each participating school operate to 
                enable all economically deprived students, including 
                limited-English proficient students, to achieve at the 
                high levels called for under this chapter;
                    ``(B) to build the capacity of the school as a 
                whole to become self-critical, self-regulating, and 
                continually focused on improving results;
                    ``(C) to assure that individual professionals on 
                the school team have the knowledge and skills to enable 
                economically deprived students, including limited-
                English proficient students, to achieve at the high 
                levels called for under this chapter;
                    ``(D) to inform professional staff in participating 
                schools with developments in their professions and 
                disciplines; and
                    ``(E) to develop the capacity of school staff to 
                work with parents so that parents may become full 
                participants in their children's education, both at 
                home and at school.
            ``(2) Participating schools.--Each participating school 
        shall plan and undertake a program of staff development and 
        school improvement activities, in accordance with its school 
        achievement plan and the goals specified in this section. Prior 
        to receiving any funds under this chapter, and every two years 
        thereafter, each participating school shall prepare and submit 
        to the local educational agency a comprehensive school 
        achievement plan that describes the program to be implemented 
        under this chapter. The school shall involve teachers, other 
        professional staff, parents, and in the case of secondary 
        schools, students, in identifying needs and in developing the 
        school plan.
                    ``(A) School achievement plans.--Each participating 
                achievement plan of a school shall include--
                            ``(i) an analysis and description of 
                        reliable data based on--
                                    ``(I) student achievement patterns, 
                                and student's progress in meeting the 
                                State and local standards separately 
                                stated by race, national origin, 
                                gender, status as a limited-English 
                                proficient student, and status as 
                                economically deprived and 
                                noneconomically deprived;
                                    ``(II) the number of economically 
                                deprived students in the school and a 
                                description of the methodology used to 
                                identify economically deprived 
                                students;
                                    ``(III) grade-level retention 
                                rates, school drop-out rates, school 
                                rates of special education student 
                                placements, and school suspension and 
                                other disciplinary rates by race, 
                                national origin, status as a limited-
                                English proficient student, and gender; 
                                and
                                    ``(IV) the current program being 
                                offered to limited-English proficient 
                                students and a description of the 
                                number and percentage of students 
                                identified as limited-English 
                                proficient and non-limited English 
                                proficient; and
                            ``(ii) based on such analysis--
                                    ``(I) steps the school will take 
                                over the course of the academic year to 
                                ensure that increasing proportions of 
                                economically deprived students, 
                                including limited English proficient 
                                students, meet the State and local 
                                standards;
                                    ``(II) steps the school will take 
                                to address any disproportionate 
                                increases on the basis of race, 
                                national origin, gender, or status as a 
                                limited English proficient student in 
                                school drop-out rates, school rates of 
                                special education student placements, 
                                school disciplinary and suspension 
                                rates and grade-level retention rates;
                                    ``(III) steps the school will take 
                                to reduce the number of dropouts;
                                    ``(IV) steps the school will take 
                                to supplement and not supplant the 
                                program for economically deprived and 
                                limited English proficient students;
                                    ``(V) steps the school will take to 
                                provide linguistically accessible 
                                challenging content and curriculum and 
                                to ensure that the school program 
                                serves limited-English proficient 
                                students to the same extent it serves 
                                participating non-limited English 
                                proficient students and the extent 
                                limited-English proficient students are 
                                included;
                                    ``(VI) steps the school will take 
                                to provide maximum coordination between 
                                services provided under this chapter 
                                and services provided to address a 
                                student's handicapping conditions or 
                                limited-English proficiency, in order 
                                to increase program effectiveness, 
                                eliminate duplication and reduce 
                                fragmentation of the students' 
                                programs; and
                                    ``(VII) steps the school will take 
                                to ensure parent involvement pursuant 
                                to section 1016; and
                            ``(iii) the plan shall include a budget and 
                        a timeline for staff development and school 
                        improvement activities.
                Plans submitted before States have adopted new 
                standards and assessment systems should be based on an 
                analysis of available data on student achievement, on a 
                review of content and performance standards generated 
                by professional organizations and a comparison of 
                instructional practice at the school with available 
                research and professional standards of best practice.
                    ``(B) Assistance to students.--Each participating 
                school shall undertake measures to ensure that 
                economically deprived students who experience 
                difficulty mastering any of the standards during the 
                course of the school year shall be provided with 
                effective, timely additional assistance, which shall 
                include--
                            ``(i) measures to ensure that students' 
                        difficulties are identified on a timely basis 
                        and with sufficient particularity to provide 
                        effective assistance;
                            ``(ii) periodic training for teachers on 
                        how to identify such difficulties and to 
                        provide assistance to individual students;
                            ``(iii) for any student who has not 
                        demonstrated proficiency in mastering the 
                        standards in subsection (a), a joint review at 
                        least annually by the student's teacher and 
                        parents, of the results of the student's 
                        assessment required by section 1020, at which 
                        time the teacher and parents shall also discuss 
                        what the school will do to help the student 
                        meet the standards, what the parents can do to 
                        help the student improve his or her 
                        performance, and additional assistance which 
                        may be available to the student at the school 
                        or elsewhere in the community; and
                            ``(iv) measures to ensure that all parents, 
                        including those with limited literacy or 
                        limited-English proficiency, have the necessary 
                        information and other assistance to participate 
                        fully in the review required by subsection 
                        (iii).
                    ``(C) Each participating school shall spend not 
                less than 10 percent in 1995 and 1996, 18 percent in 
                1997, and 20 percent in 1998 and each year thereafter, 
                of funds received annually under this chapter on staff 
                development and school improvement programs and 
                activities authorized by this section.
            ``(3) Participating local educational agencies.--(A) Prior 
        to receiving any funds under this chapter, and every two years 
        thereafter, each participating local educational agency shall 
        develop and implement a districtwide plan which shall--
                    ``(i) be based on analyses of reliable data of 
                student achievement patterns for the local educational 
                agency as a whole, and by school, separately stated by 
                race, national origin, gender, status as a limited-
                English proficient student, and status as an 
                economically deprived student;
                    ``(ii) be based on analyses of grade-level 
                retentions, drop-outs, special education student 
                placement, and suspension and other disciplinary 
                actions, separated by race, national origin, gender, 
                status as a limited-English proficient student;
                    ``(iii) include a description of the steps the 
                local educational agency will take to ensure all 
                students to be served by the program are given access 
                to the same challenging content and be held to the same 
                expectations as those for all other students in the 
                district;
                    ``(iv) include a description of the steps to be 
                taken to ensure that the individual school programs 
                serve limited-English proficient students to the same 
                extent they serve participating nonlimited-English 
                proficient students, supplement and do not supplant the 
                services being provided to economically deprived and 
                limited-English proficient students, provide 
                linguistically accessible challenging content and 
                curriculum for limited-English proficient students, 
                provide linguistically accessible classroom and library 
                materials for limited-English proficient students, 
                provide for bilingual aides, and if 5 percent or more 
                of the enrolled students in the district are identified 
                as limited-English proficient and there is a lack of 
                bilingual teachers, institute a recruitment program to 
                hire additional bilingual teachers;
                    ``(v) include a description of the steps to be 
                taken districtwide to reduce the number of dropouts; 
                and
                    ``(vi) include a description of steps to address 
                any disproportionate increases districtwide or at 
                individual schools on the basis of race, national 
                origin, gender, and status as a limited-English 
                proficient student in school and students as an 
                economically deprived student in school, drop-out 
                rates, rates of special education placements, 
                disciplinary and suspension rates, and grade-level 
                retention rates;
            ``(B) In developing its plan, the local educational agency 
        shall consider the student achievement plans and budgets 
        developed by each participating school pursuant to section 
        1012(c)(2), and shall identify any additional programs for 
        staff development and school improvement, including a budget, 
        that the local educational agency may decide to undertake 
        utilizing Chapter 1 funds. The local educational agency shall 
        involve teachers, other professional staff, parent 
        representatives and community representatives in developing the 
        districtwide plan.
            ``(C) Notwithstanding the requirements of subsection (3), 
        each local educational agency shall submit its budget for 
        programs funded under this chapter to the State educational 
        agency on an annual basis.
            ``(4) State educational agencies.--Each State educational 
        agency shall design and carry out a strategy to ensure the 
        availability of high-quality professional development and 
        school improvement assistance to participating local 
        educational agencies and schools.
                    ``(A) In consultation with local educational 
                agencies, teacher and parent representatives, 
                paraprofessionals, and university and other providers 
                of staff development services, the State educational 
                agency shall--
                            ``(i) conduct an analysis of the sources of 
                        assistance, public and private, currently 
                        available to local educational agencies and 
                        schools for staff development and school 
                        improvement and of the adequacy of these 
                        sources in enabling local educational agencies 
                        and schools to help economically deprived 
                        students, including limited English proficient 
                        students, meet the standards required by 
                        section 1012(a);
                            ``(ii) develop initiatives to increase the 
                        resources available for staff development and 
                        school improvement, including resources to 
                        assist teachers with curricular, instructional, 
                        assessment and pedagogical strategies for 
                        economically deprived students and making 
                        subject matter content linguistically 
                        accessible to limited English proficient 
                        students, to assist principals with leadership 
                        and management training, to assist counselors 
                        and school aides with techniques for supporting 
                        high achievement, to assist staff to recruit 
                        additional bilingual teachers and bilingual 
                        aides, and to provide parents with the means to 
                        organize and sustain school improvement 
                        efforts; and
                            ``(iii) disseminate to local educational 
                        agencies and schools information about 
                        educational practices and programs which will 
                        assist them in meeting the standards required 
                        by section 1012(a), including staff development 
                        programs offered by universities and private 
                        providers.
                    ``(B) Each State educational agency shall ensure to 
                all local educational agencies and schools within its 
                jurisdiction the availability of--
                            ``(i) assistance aimed at building the 
                        organizational capacity of the school as a 
                        whole, including helping the staff to learn how 
                        to analyze student achievement data, to develop 
                        and implement plans for school improvement, to 
                        remove barriers to student success, and to 
                        monitor progress; and
                            ``(ii) assistance with particular tasks 
                        such as redesigning science curricula, 
                        improving instruction in reading, improving 
                        instruction to ensure linguistically accessible 
                        content curricula for limited English 
                        proficient students, enhancing skills of key 
                        professionals, and engaging parents.
                    ``(C) State Educational Agency Plan and Self 
                Evaluation:
                            ``(i) On or before January 1, 1996, the 
                        State educational agency shall prepare and 
                        submit to the Secretary, with its application 
                        for assistance, an initial plan and annual 
                        budget for programs and activities to be 
                        undertaken pursuant to section 1012.
                            ``(ii) In each succeeding year, the State 
                        educational agency shall submit to the 
                        Secretary, with its application, an annual 
                        budget, and every two years, a revised plan and 
                        self-evaluation of programs and activities 
                        conducted during the preceding years pursuant 
                        to this section.
            ``(5) Eligibility.--
                    ``(A) All principals and other administrators, 
                certified teachers and other staff, and 
                paraprofessionals employed in participating schools are 
                eligible to participate in staff development and school 
                improvement programs funded in whole or in part under 
                this section.
                    ``(B) To the extent that State educational agencies 
                and local educational agencies undertake staff 
                development programs, where the beneficiaries of such 
                programs include children in schools eligible and 
                ineligible to receive funds under this chapter, such 
                funds may be used to pay for that portion of the 
                program's cost that can be apportioned to participants 
                employed in schools that receive funds under this 
                chapter, provided however that the programs are 
                designed with an ultimate objective of enabling 
                students who attend participating schools to achieve at 
                the high levels required under this chapter.
            ``(6) Guidelines for effective staff development and school 
        improvement.--
                    ``(A) The Secretary of Education, not later than 
                September 1, 1996, shall publish guidelines for 
                programs and activities funded under this section, 
                which shall include--
                            ``(i) characteristics of effective staff 
                        development programs for the education of 
                        economically deprived children;
                            ``(ii) characteristics of effective 
                        approaches to schoolwide improvements;
                            ``(iii) characteristics of effective parent 
                        education and involvement programs; and
                            ``(iv) examples of programs that have been 
                        demonstrated to be effective in achieving the 
                        purposes of this Chapter.
                    ``(B) In specifying the characteristics of 
                effective staff development and school improvement in 
                guidelines adopted pursuant to subparagraph (A), the 
                Secretary shall take into account factors including--
                            ``(i) whether the program provides 
                        sufficient time (including release time for 
                        teachers) and personnel for both training and 
                        follow-up activities, including feedback to, 
                        and supervision of participants who have 
                        completed the training, and ongoing time for 
                        instructional planning;
                            ``(ii) whether staff development activities 
                        are part of an overall school improvement plan; 
                        and
                            ``(iii) whether participants are assured 
                        sufficient resources (books, other material, 
                        supplies, equipment, and bilingual aides and 
                        support staff) to use the training effectively 
                        in the classroom.
                    ``(C) The guidelines shall be disseminated widely 
                to State educational agencies, to local educational 
                agencies, and to parent and teacher associations.
            ``(7) Other measures to improve teaching.--
                    ``(A) State and local educational agencies shall 
                take steps to ensure that teachers in participating 
                schools receive, from funding sources other than this 
                chapter, at least a proportionate share of staff 
                development and other programs designed to update their 
                skills and knowledge.
                    ``(B) State and local educational agencies are 
                encouraged to establish other programs for teachers and 
                paraprofessionals in participating schools to update 
                and enhance their skills and knowledge. Such programs 
                may include tuition reimbursement programs, 
                internships, participation in conferences and 
                professional organizations, career ladders and other 
                incentives designed to assist teacher aides in becoming 
                fully certified teachers, especially programs designed 
                to increase the number of certified bilingual teachers. 
                Local educational agencies shall require participating 
                staff to make a contractual commitment to remain at 
                their school for a period of time as a condition for 
                receiving such training or other benefits under this 
                subsection.

``SEC. 1013. ELIGIBLE SCHOOLS.

    ``(a) General Provisions.--
            ``(1) Subject to subsection (b) a local educational agency 
        shall use funds received under this chapter in school 
        attendance areas having high concentrations of children from 
        low-income families (referred to in this section as ``eligible 
        school attendance areas'') in which it determines that high-
        quality programs can be designed and conducted in a manner 
        reasonably calculated to ensure that all children in attendance 
        at such schools will achieve the standards required by section 
        1012. Where funds under this chapter are insufficient to 
        provide high quality programs and projects, a local educational 
        agency shall annually rank its eligible school attendance areas 
        in which the continuation of children from low-income families 
        exceeds 75 percent from highest to lowest within each grade 
        span grouping or for the entire local educational agency, 
        according to the percentage of children from low-income 
        families. A local educational agency may carry out a program or 
        project assisted under this chapter in an eligible school 
        attendance area only if it also carries out such program or 
        project in all other eligible school attendance areas which are 
        ranked higher under the first sentence of this paragraph.
            ``(2) The same measure of low income, which shall be 
        selected by the local educational agency on the basis of the 
        best and most current available data, which may be a composite 
        of several indicators including census data, augmented by free 
        or reduced lunch program participation data and any local 
        estimates collected by or available to local educational 
        agencies, shall be used with respect to all school attendance 
        areas within a grade span grouping or for the entire local 
        educational agency, both to identify the areas having high 
        concentrations of children from low-income families and to 
        determine the ranking of each area. Notwithstanding other 
        provisions of this chapter, data from aid to families with 
        dependent children shall not be employed as a measure of low 
        income.
            ``(3) The requirements of this subsection shall not apply 
        in the case of a local educational agency with a total 
        enrollment of less than 1,000 children, but this paragraph does 
        not relieve such an agency from the responsibility to serve 
        eligible children according to the provisions of section 1014.
    ``(b) Local Educational Agency Discretion.--Notwithstanding 
subsection (a)(1) of this section, a local educational agency shall 
have discretion to identify and rank eligible attendance areas as 
follows:
            ``(1) Designation of school attendance area.--A local 
        educational agency may designate any school attendance area in 
        which at least 50 percent of the children are from low-income 
        families as an eligible school attendance area if the aggregate 
        amount expended under this chapter and under a State program 
        meeting the comparability requirements of section 1018(d)(1)(B) 
        in that fiscal year in each school attendance area of that 
        agency eligible under subsection (a) in which projects assisted 
        under this chapter were carried out in the preceding fiscal 
        year equals or exceeds the amount expended from those sources 
        in that area in such preceding fiscal year.
            ``(2) Ineligible school attendance area.--Funds received 
        under this part may be used for economically deprived children 
        who are in a school which is not located in an eligible school 
        attendance area when the percentage of students from low-income 
        families enrolled in a school is substantially equal to, or 
        greater than, the proportion of students from low-income 
        families in an eligible school attendance area of the local 
        educational agency.
            ``(3) Minimum requirement.--Notwithstanding the 
        ineligibility of the schools under paragraphs (1) and (2), a 
        public school is eligible if it is participating in a 
        desegregation plan and the number of low-income children 
        enrolled in the school is at least 100 or represents at least 
        ten percent of the total school enrollment.
            ``(4) Subsequent designation.--If an eligible school 
        attendance area or eligible school was so designated and served 
        in accordance with subsection (a) in the immediately preceding 
        fiscal year, it may continue to be so designated for the 
        subsequent fiscal year even though it does not qualify as 
        eligible under such subsection in such additional year.
            ``(5) Higher number or proportion of low-income families.--
        With the approval of the State educational agency, eligible 
        school attendance areas or eligible schools which have higher 
        proportions or numbers of children from low-income families may 
        be skipped if they are receiving, from non-Federal funds, 
        services of the same nature and scope as would otherwise be 
        provided under this part, except that--
                    ``(A) the number of children attending private 
                elementary and secondary schools who receive services 
                under this part shall be determined without regard to 
                non-Federal compensatory education funds which serve 
                eligible children in public elementary and secondary 
                schools, and
                    ``(B) children attending private elementary and 
                secondary schools who receive assistance under this 
                part shall be identified in accordance with this 
                section and without regard to skipping public school 
                attendance areas or schools under this paragraph.
    ``(c) Allocations.--A local educational agency shall allocate funds 
equally to school attendance areas or eligible schools under this 
chapter on the basis of the number of children from low-income families 
enrolled.

``SEC. 1014. ELIGIBLE CHILDREN.

    ``(a) General Provisions.--The eligible population for services 
under this part are--
            ``(1) children up to age 21 who are entitled to a free 
        public education through grade 12, and
            ``(2) 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) Limited-English Proficient Children.--Limited-English 
proficient children shall be eligible for participation to the same 
extent as other participating children.
    ``(c) Special Rule.--Nothing in this chapter shall be construed to 
prohibit the participation of any child in a program or activity funded 
in whole or in part under this chapter on grounds that the child has 
not been identified as educationally deprived.

``SEC. 1015. PARENTAL INVOLVEMENT.

    ``(a) General Requirements.--Each school that receives funds under 
this chapter shall implement programs, activities, and procedures for 
the involvement of parents and other responsible family members, which 
shall be planned and implemented together with parents of children 
enrolled at the school and shall be of sufficient size, scope, and 
quality to give reasonable promise of achieving goals that include--
            ``(1) the empowerment of parents and other responsible 
        family members to contribute to the attainment by their 
        children of the high-level skills and knowledge called for 
        under this chapter;
            ``(2) the provision for parents with the means by which to 
        understand the standards and the other requirements of this 
        chapter, and to hold schools accountable for implementing and 
        achieving the chapter's purposes;
            ``(3) the achievement of full and effective participation 
        of parents, and, in the case of secondary schools, students, in 
        district and school-based planning, design, and implementation 
        of programs and activities required under this chapter to 
        ensure that as large a sector of the school community as 
        possible is working to effectively promote the outcomes 
        required by this chapter;
            ``(4) the inclusion of parents, and, in the case of 
        secondary schools, students, in the school-based process 
        required under this chapter, including--
                    ``(A) consideration and development of local 
                standards pursuant to section 1012(a)(3); and
                    ``(B) the development of school achievement plans 
                pursuant to section 1012(c)(2);
            ``(5) the identification of parents and other family 
        members of participating children who could benefit from 
        programs to improve literacy, English language, and other basic 
        skills to more effectively work with their children in the home 
        to attain the instructional objectives of programs, and to 
        better understand the program standards and requirements under 
        this chapter; and
            ``(6) the training of teachers and other staff involved in 
        programs under this chapter to work effectively with the 
        parents of participating students and build a partnership 
        between home and school.
    ``(b) Mechanisms for Parent Involvement.--
            ``(1) Each participating school shall establish a parental 
        involvement program that has the following components:
                    ``(A) Effective notice shall be provided to all 
                parents of a school's participation in the program, and 
                of a meeting that will be held at the beginning of the 
                school year to inform such parents of the requirements 
                of this chapter, and of the programs and activities 
                provided with funds under this chapter, and to 
                determine the process for jointly developing a written 
                plan for parent involvement. The initial notice, times, 
                places, and substance of the meeting shall be planned 
                with parents to maximize parent participation, with 
                particular focus on reaching and involving all sectors 
                of the parent body, including those with limited-
                literacy or limited-English proficiency.
                    ``(B) Parents in each participating school shall 
                determine how to organize to consult with the school 
                officials, communicate among themselves, and to develop 
                other opportunities for involvement in education. 
                Parents shall have the discretion to determine the 
                role, if any, of other individuals in the organization. 
                The duly constituted parent organizations, their 
                elected officers, and their elected representatives 
                shall be consulted in the development implementation of 
                the program.
                    ``(C) School officials and the organization of 
                parents shall then jointly develop, with final approval 
                by each, a written parent involvement plan. The plan 
                shall be designed to achieve the full involvement of 
                parents in the design, operation, and evaluation of 
                programs, and in the education of their children, and 
                shall provide the resources and support needed for 
                parent involvement activities. All parents, and in the 
                case of secondary schools, all students, shall be given 
                an effective opportunity to participate in the 
                formation of the plan. The final version of the plan 
                shall be provided to all the parents and incorporated 
                into the school achievement plan required by section 
                1012(c)(2). The parent involvement plans shall state in 
                a detailed and comprehensible manner, at a minimum, the 
                specific means for carrying out each requirement 
                contained in subsection (c).
                    ``(D) An annual evaluation of parent involvement 
                shall be conducted, with full parent participation, 
                that assesses the effectiveness of parent involvement, 
                and identifies any barriers to greater participation, 
                and any steps needed to expand participation and, if 
                necessary, to revise the policy. As part of this 
                evaluation, the school officials and parents shall 
                identify and take steps to remove barriers resulting in 
                lower rates of participation in the parent organization 
                and in all phases of the parent involvement program by 
                parents who are low-income, have limited literacy, or 
                have limited-English proficiency, or parents from any 
                racial, ethnic or linguistic background.
                    ``(E) If secondary schools are included in the 
                local program, students shall be involved in 
                developing, through similar mechanisms, a policy for 
                full involvement of students in the design and 
                implementation of the program.
                    ``(F) Each school shall ensure that parents of 
                limited-English proficient children are afforded the 
                same access to parent involvement opportunities as the 
                access limited-English proficient children are afforded 
                to the programs funded under this chapter. The schools 
                are authorized to hire parent involvement facilitators 
                who are fluent in the non-English languages represented 
                among the children served at the schools receiving 
                funds under this chapter. The school shall make every 
                effort feasible to provide all information to parents 
                with limited-English proficiency in a language and form 
                the parents understand.
            ``(2) Each local educational agency that receives funds 
        under this chapter--
                    ``(A) shall ensure participating schools' 
                compliance with this section;
                    ``(B) shall provide the coordination, technical 
                assistance, and other support necessary to assist 
                participating schools in planning and implementing 
                effective parent involvement;
                    ``(C) shall establish a local parent resource 
                center, to assist parents to participate in the parent 
                involvement activities, except that local educational 
                agencies whose allocation is less than the median 
                allocation to all local educational agencies under this 
                chapter may establish a center as a consortium with 
                other local educational agencies, provided that such 
                center is accessible to the parents of each agency; and
                    ``(D) shall reserve not less than 1 percent of its 
                allocation for carrying out the requirements of this 
                section.
    ``(c) Parent Involvement Programs and Activities.--Each 
participating school and parents, and each local educational agency and 
parents, together shall, in accordance with subsection (b)(1)(C), 
decide how to achieve the goals contained in subsection (a), 
including--
            ``(1) a comprehensive range of effective opportunities for 
        parents to be involved, in an organized and timely way, in all 
        aspects of program planning, design, implementation, and 
        evaluation, including the joint development and final approval 
        of the school achievement plan, including the uses of funds 
        under this chapter;
            ``(2) timely response to the concerns and recommendations 
        of parents;
            ``(3) effective involvement of parents in the education of 
        their own children through family language development 
        programs, through support for the efforts of parents to work 
        with their children at home to attain the instructional 
        objectives of this chapter, and through opportunities for 
        parent participation in school, including--
                    ``(A) training of parents in areas including 
                helping their children learn more effectively, working 
                with educators, monitoring student progress, and 
                understanding and evaluating the program, its 
                requirements, and the curriculum; and
                    ``(B) the development and dissemination of 
                materials and other assistance to implement home-based 
                education activities that reinforce classroom 
                instruction and student motivation;
            ``(4) the timely provision, in a manner and form 
        understandable to parents, of information needed for full and 
        effective involvement under paragraphs (1) and (2) which, at a 
        minimum, include--
                    ``(A) annual meetings and other regular meetings at 
                the school level throughout the year, during which all 
                parents of participating children must be informed 
                about the standards, health and social services, 
                assessment and enforcement provisions as required by 
                this chapter, the specific uses of funds, the specific 
                instructional objectives and methods that will be used 
                in the schools, opportunities for involvement both at 
                home and school, and their rights of involvement and 
                access under this chapter as parents of children in 
                participating schools;
                    ``(B) reasonable access to observe classrooms;
                    ``(C) reasonable access to program documents 
                including the school achievement plan, all other local 
                educational agency and school plans and applications 
                required by this chapter, information on assessments, 
                state and local standards, and enforcement, budget 
                information, evaluation data, and local State and 
                Federal laws, regulations, and guidelines, all of which 
                shall be publicized and readily available, upon 
                request; and
                    ``(D) provision to each parent of a statement 
                explaining the rights of the parent's child to 
                educational programs and assistance which conform to 
                the requirements of section 1012. The statement shall 
                be translated, to the extent feasible, into any 
                language that a significant percentage of the parents 
                of participating children speak as their primary 
                language;
            ``(5) frequent reports to parents on their children's 
        progress as required by section 1012 (b), and at least one 
        parent-teacher conference per year to discuss the child's 
        progress, program, and placement, and what parents and the 
        school can do to further academic achievement;
            ``(6) ongoing training of parents in areas, including 
        understanding the standards and the requirements of this 
        chapter, helping children learn more effectively, working with 
        educators, forming organizations and running meetings, 
        monitoring student progress, and understanding and evaluating 
        the program and its curriculum;
            ``(7) Such reasonable support as parents, in assessing 
        their own needs, determine necessary and request for activities 
        they undertake on their own initiative, such as newsletters, 
        duplication of materials, parent meetings (and incidental costs 
        of attending them), educational and training events, 
        orientations, the development and operation of parent resource 
        centers, and for educational events in which parents would like 
        to participate;
            ``(8) a separate budget for parent involvement adequate to 
        carry out school policy;
            ``(9) training for teachers, principals, and other staff in 
        the value and utility of contributions of parents, in how to 
        communicate and work with parents as equal partners, how to 
        implement and coordinate parent programs, and how to build ties 
        between home and school; and
            ``(10) appropriate roles for community-based organizations 
        in parent involvement activities, including sufficient 
        information to such organizations about the programs and 
        opportunities for them to work with parents and schools, 
        including providing technical assistance and training to 
        parents to implement the goals of this section.

``SEC. 1016. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    ``(a) General Requirements.--To the extent consistent with the 
number of economically deprived children in the school district of the 
local educational agency who are enrolled in private elementary and 
secondary schools, such agency shall, after timely and meaningful 
consultation with appropriate private school officials, make provisions 
for including special educational services and arrangements (such as 
dual enrollment, educational radio and television, computer equipment 
and materials, other technology, and mobile educational services and 
equipment) in which such children can participate. The educational 
services or other benefits, including materials and equipment, must be 
secular and nonidealogical. Expenditures for educational services and 
arrangements pursuant to this section for economically deprived 
children in private schools shall be equitable in comparison (taking 
into account the number of children to be served and the special 
educational needs of such children) to services and expenditures for 
children enrolled in the public schools of the local educational 
agency.
    ``(b) Bypass Provision.--
            ``(1) If a local educational agency is prohibited by law 
        from providing for the participation in special programs for 
        economically deprived children enrolled in private elementary 
        and secondary schools as required by subsection (a), 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 subsection (a).
            ``(2) If the Secretary determines that a local educational 
        agency has substantially failed to provide for the 
        participation on an equitable basis of economically deprived 
        children enrolled in private elementary and secondary schools 
        as required by subsection (a), the Secretary shall arrange for 
        the provision of services to such children through arrangements 
        which shall be subject to the requirements of subsection (a), 
        upon which determination the provisions of subsection (a) shall 
        be waived.
            ``(3) When the Secretary arranges for services pursuant to 
        this subsection, the Secretary shall, after consultation with 
        the appropriate public and private school officials, pay to the 
        provider the cost of such services, including the 
        administrative cost of arranging for such services, from the 
        appropriate allocation or allocations under this chapter.
    ``(c) Prior Determination.--Any bypass determination by the 
Secretary under title I of the Elementary and Secondary Education Act 
of 1965, as in effect prior to July 1, 1993, or Chapter 1 of the 
Education Consolidation and Improvement Act of 1981 shall remain in 
effect to the extent consistent with the purposes of this chapter.
    ``(d) Capital Expenses.--
            ``(1) A local educational agency may apply to the State 
        educational agency for payments for capital expenses consistent 
        with the provisions of this subsection. State educational 
        agencies shall distribute funds to local educational agencies 
        based on the degree of need as set forth in the application. 
        Such an application shall contain information on such capital 
        expenses by fiscal year and shall contain an assurance that any 
        funds received pursuant to this subsection shall be used solely 
        for purposes of the program authorized by this chapter.
            ``(2)(A) From the amount appropriated for the purposes of 
        this subsection for any fiscal year, the amount which each 
        State shall be eligible to receive shall be an amount which 
        bears the same ratio to the amount appropriated as the number 
        of children enrolled in private schools who were served under 
        chapter 1 of the Education Consolidation and Improvement Act of 
        1981 in the State during the period July 1, 1984 through June 
        30, 1985, bears to the total number of such children served 
        during such period in all States.
            ``(B) Amounts which are not used by a State for the 
        purposes of this subsection shall be reallocated by the 
        Secretary among other States on the basis of need.
            ``(3) There is authorized to be appropriated $100,000,000 
        for fiscal year 1995, $150,000,000 for the fiscal year 1996, 
        and such sums as may be necessary for each of the fiscal years 
        1997, 1998, 1999, through fiscal year 2004. Any sums 
        appropriated under this provision shall be used for increases 
        in capital expenses paid from funds under chapter 1 of the 
        Education Consolidation and Improvement Act or this section 
        subsequent to July 1, 1985, of local educational agencies in 
        providing the instructional services required under section 557 
        of the Education Consolidation and Improvement Act and this 
        section, when without such funds, services to private 
        schoolchildren would have been or have been reduced or would be 
        reduced or adversely affected.
            ``(4) For the purposes of this subsection, the term 
        `capital expenses' is limited to expenditures for 
        noninstructional goods and services such as the purchase, lease 
        and renovation of real and personal property (including but not 
        limited to mobile educational units and leasing of neutral 
        sites or space), insurance and maintenance costs, 
        transportation, and other comparable goods and services.

``SEC. 1017. FISCAL REQUIREMENTS.

    ``(a) Maintenance of Effort.--
            ``(1) Except as provided in paragraph (2), a local 
        educational agency may receive funds under this chapter 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.
            ``(2) The State educational agency shall reduce the amount 
        of the allocation of funds under this chapter in any fiscal 
        year in the exact proportion to which a local educational 
        agency fails to meet the requirement of paragraph (1) 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), and no such lesser amount 
        shall be used for computing the effort required under paragraph 
        (1) for subsequent years.
            ``(3) Each State educational agency may waive, for 1 fiscal 
        year only, the requirements of this subsection if the State 
        educational agency determines that such a waiver would be 
        equitable due to exceptional or uncontrolled circumstances such 
        as a natural disaster or a precipitous and unforeseen decline 
        in the financial resources of the local educational agency.
    ``(b) Federal Funds To Supplement, Not Supplant Regular Non-Federal 
Funds.--A State educational agency or other State agency in operating 
its State level programs or a local educational agency may use funds 
received under this chapter only so as to supplement and, to the extent 
practicable, increase the level of funds that would, in the absence of 
such Federal funds, be made available from non-Federal sources for the 
education of pupils participating in programs and projects assisted 
under this chapter and in no case may such funds be so used as to 
supplant such funds from such non-Federal sources. In order to 
demonstrate compliance with this subsection, no State educational 
agency, other State agency, or local educational agency shall be 
required to provide services under this chapter through use of a 
particular instructional method or in a particular instructional 
setting.
    ``(c) Comparability of Services.--
            ``(1) A local educational agency may receive funds under 
        this chapter only if State and local funds will be used in the 
        district of such agency to provide essential educational 
        services in project areas which, taken as a whole, are at least 
        comparable to essential educational services being provided in 
        areas in such district which are not receiving funds under this 
        chapter. Where all school attendance areas in the district of 
        the agency are designated as project areas, the agency may 
        receive such funds only if State and local funds are used to 
        provide essential educational services which, taken as a whole, 
        are substantially comparable in each project area.
            ``(2) A State educational agency may receive funds under 
        this chapter only if State and local funds will be used in the 
        district of each local educational agency to provide essential 
        educational services which, taken as a whole, are at least 
        comparable to essential educational services being provided in 
        districts which are not receiving funds under this chapter. In 
        cases in which all districts in the State receive funds under 
        this chapter, the State may receive funds only if State and 
        local funds are used to provide essential educational services 
        which, taken as a whole, are substantially comparable in each 
        district.
            ``(3) Assurances.--
                    ``(A) A local educational agency shall be 
                considered to have met the requirements of paragraph 
                (1) if it has filed with the State educational agency a 
                written assurance that it has established and 
                implemented a policy to ensure the delivery of 
                comparable essential educational services to all 
                participating children based on comparable needs.
                    ``(B) A State educational agency shall be 
                considered to have met the requirements of paragraph 
                (2) if it has filed with the Secretary a written 
                assurance that it has established and implemented a 
                policy to ensure the delivery of comparable essential 
                educational services to all participating children 
                based on comparable needs.
                    ``(C) Unpredictable changes in student enrollment 
                or personnel assignments which occur after the 
                beginning of a school year shall not be included as a 
                factor in determining comparability of services.
            ``(4) Each educational agency shall develop procedures for 
        compliance with the provisions of this subsection, and shall 
        annually maintain records documenting compliance. Each State 
        educational agency shall monitor the compliance of local 
        educational agencies within the State with respect to the 
        requirements of this subsection.
            ``(5) Each local educational agency with not more than one 
        building for each grade span shall not be subject to the 
        provisions of this subsection.
            ``(6) Each State and local educational agency which is 
        found to be out of compliance with this subsection shall be 
        ineligible for funds under this chapter.
    ``(d) Exclusion of Special State and Local Program Funds.--
            ``(1)(A) For the purposes of determining compliance with 
        the requirements of subsections (b) and (c), State and local 
        educational agencies or a State agency operating a program 
        under part D of this chapter may exclude State and local funds 
        expended for carrying out special programs to meet the 
        educational needs of economically deprived children after prior 
        determination pursuant to paragraphs (3) and (4) of this 
        subsection that such programs meet the requirements of 
        subparagraph (B).
            ``(B) A State or local program meets the requirements of 
        this subparagraph if it is similar to programs assisted under 
        this part. The Secretary shall consider a State or local 
        program to be similar to programs assisted under this part if--
                    ``(i) all children participating in the program are 
                economically deprived,
                    ``(ii) the program is based on similar performance 
                objectives related to educational achievement and is 
                evaluated in a manner consistent with those performance 
                objectives,
                    ``(iii) the program provides supplementary services 
                designed to meet the special educational needs of the 
                children who are participating,
                    ``(iv) the local educational agency keeps such 
                records and affords such access thereto as are 
                necessary to assure the correctness and verification of 
                the requirements of this subparagraph, and
                    ``(v) the State educational agency monitors 
                performance under the program to assure that the 
                requirements of this subparagraph are met.
            ``(2)(A) For the purpose of determining compliance with the 
        requirements of subsection (c), a local educational agency may 
        exclude State and local funds expended for--
                    ``(i) bilingual education for children of limited 
                English proficiency,
                    ``(ii) special education for children with 
                disabilities, and
                    ``(iii) certain State phase-in programs as 
                described in subparagraph (B).
            ``(B) A State education program which is being phased into 
        full operation meets the requirements of this subparagraph if 
        the Secretary is satisfied that--
                    ``(i) the program is authorized and governed 
                specifically by the provisions of State law;
                    ``(ii) the purpose of the program is to provide for 
                the comprehensive and systematic restructuring of the 
                total educational environment at the level of the 
                individual school;
                    ``(iii) the program is based on objectives, 
                including but not limited to, performance objectives 
                related to educational achievement and is evaluated in 
                a manner consistent with those objectives;
                    ``(iv) parents and school staff are involved in 
                comprehensive planning, implementation, and evaluation 
                of the program;
                    ``(v) the program will benefit all children in a 
                particular school or grade-span within a school;
                    ``(vi) schools participating in a program describe, 
                in a school level plan, program strategies for meeting 
                the special educational needs of economically deprived 
                children;
                    ``(vii) at all times during such phase-in period at 
                least 50 percent of the schools participating in the 
                program are the schools serving project areas which 
                have the greatest number or concentrations of 
                economically deprived children;
                    ``(viii) State funds made available for the phase-
                in program will supplement, and not supplant, State and 
                local funds which would, in the absence of the phase-in 
                program, have been provided for schools participating 
                in such program;
                    ``(ix) the local educational agency is separately 
                accountable, for purposes of compliance with the 
                clauses of this subparagraph, to the State educational 
                agency for any funds expended for such program; and
                    ``(x) the local educational agencies carrying out 
                the program are complying with the clauses of this 
                subparagraph and the State educational agency is 
                complying with applicable provisions of this paragraph.
            ``(3) The Secretary shall make an advance determination of 
        whether or not a State program meets the requirements of this 
        subsection. The Secretary shall require each State educational 
        agency to submit the provisions of State law together with 
        implementing rules, regulations, orders, guidelines, and 
        interpretations which are necessary for an advance 
        determination. The Secretary's determination shall be in 
        writing and shall include the reasons for the determination. 
        Whenever there is any material change in pertinent State law 
        affecting the program, the State educational agency shall 
        submit such changes to the Secretary.
            ``(4) The State educational agency shall make an advance 
        determination of whether or not a local program meets the 
        requirements of this subsection. The State educational agency 
        shall require each local educational agency to submit the 
        provisions of local law, together with implementing rules, 
        regulations, guidelines, and interpretations which are 
        necessary to make such an advance determination. The State 
        educational agency's determination shall be in writing and 
        shall include the reasons for the determination. Whenever there 
        is any material change in pertinent local law affecting the 
        program, the local educational agency shall submit such changes 
        to the State educational agency.

``SEC. 1018. HEALTH AND SOCIAL SERVICES.

    ``(a) Purposes.--The obligations imposed on States, State 
educational agencies and local educational agencies under this section 
are for the purposes of assuring that to the extent practicable, all 
school-aged children who are eligible to participate in programs under 
this chapter enter school ready and able to learn and have access to 
health and social services sufficient to enable them to attend school 
on a regular basis and to achieve the high-level standards required 
under section 1012.
    ``(b) State Plan To Eliminate Barriers to Learning.--By January 1, 
1996, and every two years thereafter, each governor in consultation 
with the State educational agency and other appropriate State agencies, 
shall develop and submit to the Secretary a plan which shall be 
coordinated with any existing State plan that identifies, on a local 
educational agency and statewide basis--
            ``(1) barriers to learning experienced by economically 
        deprived children that stem from factors external to the public 
        school system, (including poor health, poor nutrition, 
        inadequate housing, and lack of appropriate preschool and 
        before- and after-school supervision), that could be 
        ameliorated by the provision of appropriate services by the 
        local educational agency or by referral of the children and 
        their families to service providers other than the local 
        educational agency;
            ``(2) the health, social services, and early educational 
        programs necessary to ensure the attainment of the readiness, 
        attendance, and achievement objectives described in subsection 
        (a);
            ``(3) how programs funded from a variety of sources, 
        including other Federal sources, are or will be coordinated in 
        a systematic way, on a statewide basis, to ensure maximum 
        effectiveness in the delivery of services to children and 
        families with the objective of eliminating barriers to learning 
        described in subsection (b)(1);
            ``(4) on a local educational agency basis, the extent to 
        which such services are unavailable, inaccessible, or 
        underutilized by the economically deprived student population 
        and their families, including barriers to obtaining services 
        faced by single or working parent families and by families with 
        limited literacy or limited-English proficiency;
            ``(5) measures that will be taken by the State educational 
        agency and by other State agencies to increase access to and 
        availability of the services identified in subsection (b)(2), 
        including--
                    ``(A) integration of services, so that one agency 
                may provide or coordinate a variety of services for 
                which a family may be eligible;
                    ``(B) colocation of health and social services at 
                school sites that receive funds under this chapter to 
                ensure, inter alia, that Medicaid-eligible children 
                receive early and periodic screening, diagnosis and 
                treatment services;
                    ``(C) establishment of multiservice centers for 
                low-income families at or near school sites;
                    ``(D) adjustments to service eligibility 
                requirements and other regulatory or statutory changes 
                to facilitate access to services; and
                    ``(E) expansion of existing State or local programs 
                or the creation and funding of new programs designed to 
                meet the objectives of subsection (a).
            ``(6) In developing the plan required pursuant to 
        subsection (b), the Governor shall consult with and involve--
                    ``(A) the State educational agency;
                    ``(B) State and local government agencies charged 
                with providing health and social services to children 
                and families;
                    ``(C) participating local educational agencies;
                    ``(D) private and nonprofit entities engaged in 
                child advocacy, resource, and referral and entities 
                that provide direct services to children and families, 
                including Head Start and other programs or facilities 
                providing early childhood services; and
                    ``(E) parent and teacher representatives.
            ``(7) Copies of the plan shall be furnished to the State 
        educational agency, to each local educational agency and to all 
        public agencies that provide health, welfare and social 
        services to children and their families. The plan shall 
        specifically identify the barriers that are within the 
        jurisdiction of such agencies. Copies shall also be provided to 
        statewide parent and teacher organizations.
            ``(8) By January 1, 1997, each State shall begin 
        implementation of the measures specified in subsection (b)(5). 
        The State educational agency shall report by January 1, 1999, 
        and every two years thereafter to the Secretary on progress in 
        eliminating the barriers identified in subsection (b)(1) and on 
        providing the services called for by subsection (b)(2). Copies 
        of the annual reports shall be furnished to the Governor, to 
        State health and social service agencies, to all local 
        educational agencies, and to statewide parent and teacher 
        organizations.
    ``(c) Local Educational Agencies Report.--By June 1, 1996, each 
participating local educational agency shall identify and report to the 
State educational agency--
            ``(1) barriers to learning experienced by economically 
        deprived children which stem from factors--
                    ``(A) external to the public school system, 
                (including poor health, poor nutrition, inadequate 
                housing, and lack of appropriate preschool and before- 
                and after-school supervision); and
                    ``(B) internal to the public school system 
                (including poor or inadequate facilities, insufficient 
                staff and other resources, and lack of participation in 
                Federally subsidized school nutrition programs) that 
                could be ameliorated by the provision of appropriate 
                services by the local educational agency or by referral 
                of the children and their families to service providers 
                other than the local educational agency;
            ``(2) the extent to which the health, social service, and 
        early educational inputs necessary to ensure the attainment of 
        the readiness, attendance, and achievement objectives described 
        in subsection (a) are unavailable, inaccessible, or 
        underutilized by the economically deprived student population 
        and their families;
            ``(3) the extent to which locally-based collaborative 
        efforts among education, health, and social service providers 
        might facilitate increased access and effective delivery of the 
        services;
            ``(4) the extent to which additional resources are needed 
        by the local educational agency to accomplish the purposes of 
        this section;
            ``(5) the measures that will be undertaken locally to 
        ameliorate or eliminate the barriers described in paragraphs 
        (1) and (2), and to comply with subsection (d); and
            ``(6) in preparing its report pursuant to subsection (c), 
        each local educational agency shall consult with county and 
        municipal health and social service providers, housing 
        officials, Head Start and other early childhood providers, and 
        organizations representing parents and teachers.
    ``(d) Duty of Local Educational Agencies.--
            ``(1) Each local educational agency shall ensure that all 
        participating children attending schools receiving funds under 
        this chapter are--
                    ``(A) fully immunized upon entry to school;
                    ``(B) screened for nutritional and developmental 
                deficiencies, for hearing and vision problems that may 
                impair learning, for alcohol or substance abuse, and 
                for any other health or environmental conditions that 
                in the judgment of the local educational agency, are 
                likely to impair learning; and
                    ``(C) referred by school or local educational 
                agency staff to appropriate service providers in the 
                community, and that designated staff follow up to 
                determine whether the services were received by the 
                children referred.
            ``(2) Each participating local educational agency shall 
        cooperate with State efforts to comply with subsection (b) and 
        shall participate, as required or encouraged by the State 
        educational agency, in the State plan to eliminate barriers to 
        learning described in subsection (b)(1).
    ``(e) Use of Funds.--Local educational agencies may use funds under 
this chapter to pay professional and other staff salaries, and other 
reasonable expenses, incurred in carrying out the purposes of this 
section, including integration and coordination of services with other 
local, State, or Federal providers.

``SEC. 1019. ASSESSMENT.

    ``(a) Purposes of Assessment.--Each of the three types of 
assessments conducted under this section of students, schools, local 
educational agencies, State education agencies and of the program under 
this chapter has a separate purpose--
            ``(1) as set forth in subsection (b), to provide 
        information and guidance to teachers, parents, and others on 
        the progress being made by individual students in meeting the 
        content standards prescribed in section 1012, and to serve as 
        an aid in improving instruction, curriculum, and the 
        performance of students;
            ``(2) as set forth in subsection (c), to provide a means 
        for evaluating the effectiveness of the program under this 
        chapter on a national basis so that any needed changes can be 
        made to aid in reaching the goals of this chapter of assuring 
        that children of low-income families acquire the high level 
        knowledge and skills that are necessary for sustained success; 
        and
            ``(3) as set forth in subsections (d) through (g) of this 
        section to provide a means for holding individual schools, 
        local educational agencies, and State educational agencies 
        accountable for student performance in meeting the content 
        standards prescribed in section 1012, and to serve as a basis 
        for recognizing and rewarding the entities that improve student 
        performance and for taking corrective action with respect to 
        the entities that do not, pursuant to section 1012.
    ``(b) Assessments To Aid Student Progress.--
            ``(1) Each local educational agency and school shall 
        implement assessment measures that are designed to provide 
        information and guidance to teachers, parents, and students on 
        the progress being made by individual students in meeting the 
        standards prescribed in section 1012 and to aid in improving 
        the performance of individual students. Such assessment 
        measures shall aid teachers in evaluating the progress that 
        individual students are making on the curriculum and on 
        classroom tasks, shall be controlled and administered by 
        teachers, and shall be an integral part of the instructional 
        program.
            ``(2) At least once each year, each school shall inform 
        parents of the progress their children are making in meeting 
        the standards prescribed in section 1012 and shall provide 
        specific information on deficiencies in performance and on 
        assistance available to remedy deficiencies.
            ``(3) Each local educational agency and school shall 
        disseminate to parents, students and teachers a description and 
        explanation of the curriculum in use at the school, of the 
        forms of assessment used to measure student progress, and of 
        the proficiency levels students are expected to meet.
            ``(4) Each local educational agency and school shall assure 
        that the methods of assessment employed are integrated with 
        curriculum and instruction, foster teaching and learning, are 
        adaptable to diverse student populations, encourage self-
        reflection and decisionmaking, emphasize students' strengths 
        and incorporate into the design and implementation those 
        elements and characteristics that enable all students to 
        benefit from instructional practices and assessment outcomes, 
        including opportunities for limited English proficient students 
        to be assessed in their primary language.
    ``(c) Assessments To Evaluate Chapter 1.--The Secretary shall--
            ``(1) submit to the President, the Congress and the public 
        at least biannually a report evaluating national progress in 
        equipping economically deprived students with the knowledge and 
        skills called for by this chapter and evaluating the 
        effectiveness of this chapter in achieving stated goals;
            ``(2) in carrying out the evaluations called for by such a 
        report, use the National Assessment of Educational Progress or 
        other forms of assessment that are consistent with the 
        assessment measures that are required by this section; and
            ``(3) develop evaluation methods that facilitate 
        comparisons of information about student outcomes by State 
        however, the Secretary shall not deny approval to an otherwise 
        acceptable State educational agency assessment program on 
        grounds that it does not permit comparisons between States, or 
        require State educational agencies to collect or aggregate data 
        solely for the purpose of Federal evaluation under this 
        subsection.
    ``(d) Duty To Assess for Accountability Purposes.--
            ``(1) Each participating State educational agency shall 
        adopt by January 1, 1997, and describe in its application to 
        the Secretary for fiscal year 1998 a set of assessments that 
        the State educational agency proposes to use as its primary 
        means for gauging the performance of local educational agencies 
        that participate in the program under this chapter in enabling 
        students, including limited-English proficient students, to 
        meet the standards set forth in section 1012.
            ``(2) Each participating State educational agency may 
        authorize any local educational agencies within its 
        jurisdiction to use its own measures of assessment for 
        accountability purposes, if such measures meet all of the 
        requirements of this section and are approved by the State 
        educational agency.
            ``(3) If any State education agency fails by January 1, 
        1997, to adopt an assessment program that meets the 
        requirements of this section, such agency shall be required to 
        select one of the assessment programs approved by the Secretary 
        pursuant to paragraph (4), but selection of an assessment 
        program under this subsection shall not relieve the State 
        educational agency of the requirements under this chapter that 
        assessments be aligned with standards and curriculum.
            ``(4) The Secretary shall approve only assessment 
        measures--
                    ``(A) that meet the requirements of subsection (c);
                    ``(B) that are aligned with State standards and 
                that have been validated in terms of their particular 
                uses and consequences and to assure racial, ethnic, and 
                gender fairness; and
                    ``(C) that provide for periodic monitoring to 
                assure continuing validity.
    ``(e) Scope, Frequency, Characteristics and Methods of 
Assessment.--
            ``(1) Scope and frequency.--
                    ``(A) Assessments for accountability shall be 
                conducted annually in the grades designated under 
                subparagraph (B) in all participating schools and shall 
                be applied to at least a sample of all students, 
                provided, however, that where sampling methods are 
                used, the sample shall be constructed so as to yield 
                representative data--
                            ``(i) for each participating school, local 
                        educational agency, and for the State as a 
                        whole; and
                            ``(ii) within each participating school for 
                        each major racial and ethnic group, for 
                        economically disadvantaged and nondisadvantaged 
                        students, and for limited-English proficient 
                        and non-limited English proficient students.
                    ``(B) An assessment pursuant to subparagraph (E) 
                shall be completed at grade 1, subject to the 
                limitations described in paragraph (2)(B) at some time 
                during grade 3, at some time during grade 7, and at 
                some time during grade 10, but students who have been 
                retained in grade shall be considered for assessment at 
                the time they would otherwise have been assessed if 
                they had not been retained in grade.
                    ``(C) Where sampling methods are used pursuant to 
                subparagraph (A), the methods shall meet professional 
                standards of representativeness.
                    ``(D) Notwithstanding the provisions of 
                subparagraph (A), local educational agencies and 
                individual schools are not required to assess a student 
                who has been clearly demonstrated, using valid 
                evaluation methods, to be so severely disabled as to 
                lack the capacity to make educational progress in 
                meeting the standards set out in section 1012 even with 
                the provision of supplemental services.
                    ``(E) No student shall be exempted from assessment 
                on grounds that the student has not attended a 
                particular school or has not been a resident in the 
                local educational agency attendance area for a full 
                academic year, but--
                            ``(i) the performance of students who have 
                        attended more than one school in a local 
                        educational agency in any academic year shall 
                        not be used in determining the progress of any 
                        individual school but only in determining the 
                        progress of the local educational agency; and
                            ``(ii) the performance of students who have 
                        not resided in the local educational agency for 
                        a full academic year shall not be used to 
                        determine the progress either of any individual 
                        school or of the local educational agency.
            ``(2) Characteristics.--In addition to the requirements set 
        forth in subsection (d)(4), the assessment instruments adopted 
        pursuant to this subsection shall meet the following criteria:
                    ``(A) Except for grade 1, assessments shall measure 
                the proficiency of students in subjects including 
                reading, mathematics, writing, history, geography and 
                science.
                    ``(B) In grade 1, assessments shall be conducted 
                only to determine the acquisition of developmentally 
                appropriate levels of skills in oral language, emerging 
                reading skills, and social skills important to progress 
                in school.
                    ``(C) Assessments shall provide an accurate measure 
                of the proportion of students attaining nonproficient, 
                partially proficient, proficient, and highly proficient 
                levels of achievement in all aspects of each subject.
                    ``(D) There shall be some variation in the 
                particular items used from one assessment to the next, 
                so that students can be prepared for the test only by 
                being taught a full range of important knowledge and 
                skills.
                    ``(E) Assessments shall state clearly what is 
                sought to be measured in the assessment and shall be 
                designed to gauge only the proficiency and 
                accomplishments of students rather than any presumed 
                innate traits or characteristics.
                    ``(F) Local educational agencies and individual 
                schools are required to determine if a student has 
                limited English proficiency and to monitor the 
                student's English language acquisition progress by 
                using assessments based on sound psychometric practice 
                and theoretically based research, including 
                contemporary theories and research, on language 
                proficiency and communicative competence. Schools 
                should not base placement decisions about language 
                assistance services on a single test or assessment 
                score but on a profile that summarizes results of 
                multiple assessments and attends to the 
                multidimensional aspects of language skills.
                    ``(G) In determining the appropriate placement for 
                a limited English proficient student, the procedures 
                need to accurately assess students' language 
                proficiency and content knowledge so that schools can 
                provide appropriate instruction that builds on existing 
                linguistic and cognitive skills.
                    ``(H) In assessing students' mastery of skills in 
                subjects other than English, students of limited-
                English proficiency shall be assessed, to the extent 
                practicable, in the language and form most likely to 
                yield accurate and reliable information on what the 
                limited English proficient students know and can do.
            ``(3) Methods.--
                    ``(A) In carrying out its duties pursuant to 
                subsection (d)(1) each State educational agency shall 
                employ multiple methods of assessment tailored to its 
                standards.
                    ``(B) The local educational agency shall identify 
                the languages other than English that are present in 
                the participating student population and make a 
                determination of the languages for which appropriate 
                assessment measures are not available and are needed. 
                If the local educational agency is unable to develop 
                appropriate assessment measures in these languages, the 
                local educational agency shall notify the State 
                educational agency of the absence of such assessment 
                measures. The State educational agency shall notify the 
                Secretary and make every effort to identify or develop 
                such assessment measures. Upon notification by the 
                State educational agency, the Secretary shall also 
                assist in the identification of appropriate assessment 
                measures in the needed languages through the Assistant 
                Secretary of the Office of Bilingual Education and 
                Minority Languages Affairs.
    ``(f) Prerequisites for Implementation of Assessments.--
            ``(1) Prior to the conduct of the first assessment for 
        accountability, each State educational agency shall, with the 
        assistance of each local educational agency, disseminate widely 
        to parents, teachers, and students an understandable statement 
        of the standards expected of participating students, the goals 
        of the assessment instruments, the uses of the assessment, and 
        the knowledge and skills to be assessed. Such statements shall 
        include examples of student work at the appropriate level that 
        would meet the standard at such level.
            ``(2) As soon as feasible, but prior to the administration 
        of the second assessment, each State educational agency shall--
                    ``(A) complete all necessary steps, by developing 
                curriculum frameworks or model curricula and by 
                providing training or assistance to local educational 
                agencies, to assure that curriculum is revised in a 
                manner that will enable students to meet the standards 
                set forth in section 1012; and
                    ``(B) adopt measures, including those required by 
                section 1012, to assure that teachers in schools 
                receiving funds under this chapter have the capacity to 
                implement instructional strategies designed to equip 
                children with the ability to perform successfully on 
                the assessments required by this section.
    ``(g) Uses of Assessments and Safeguards.--
            ``(1) The assessments developed under subsection (d) shall 
        be used by State and local agencies to improve the performance 
        of participating schools to enable students participating under 
        this chapter to master high level knowledge and skills.
            ``(2) The Secretary shall report the information gathered 
        through the assessments required by subsection (d) in such a 
        way as to permit evaluation of the annual progress made by the 
        State, by each local educational agency, and by each school in 
        which the assessment is conducted, and within each State, local 
        educational agency, and school, by each major racial and ethnic 
        group, by English proficiency status and by economically 
        deprived students as compared to students who are not 
        economically deprived.
            ``(3) The assessments prescribed by subsection (d) shall 
        not be used by State and local educational agencies to withhold 
        from any student a high school diploma or other form of 
        certification or for retaining students in grade.

``SEC. 1020. ENFORCEMENT.

    ``(a) State Enforcement Process.--Each State educational agency 
shall develop and submit to the Secretary not later than January 1, 
1997, a plan for an enforcement process designed to assure the 
performance of all responsibilities vested by this chapter in the State 
educational agency and in all local educational agencies and schools 
under its jurisdiction. The enforcement process shall consist of the 
following elements:
            ``(1) Provisions shall be designed to assure that within 
        five years after the completion of the first assessment 
        conducted pursuant to sections 1012 and 1020, all participating 
        schools in which 50 percent or more of the students enrolled 
        are economically deprived will have made substantial progress 
        pursuant to the criteria established in section 1431 in 
        assisting all participating students in reaching proficient or 
        highly proficient levels of achievement appropriate to their 
        grade level under the standards provided for in section 1012 
        and, in the event that substantial progress has not been made 
        to assure that the educational environment and services made 
        available to students will be changed significantly enough to 
        enable them to reach these levels.
            ``(2) Provisions shall be designed to assure that within 
        five years after the completion of the first assessment 
        conducted pursuant to sections 1012 and 1020, participating 
        schools in which less than 50 percent of the students enrolled 
        are economically deprived will have made substantial progress 
        pursuant to the criteria established in section 1431 in 
        assisting economically deprived students in reaching proficient 
        or highly proficient levels of achievement appropriate to their 
        grade level under the standards provided for in section 1012 
        and, in the event that substantial progress has not been made 
        to assure that the educational environment and services made 
        available to economically deprived students will be changed 
        significantly enough to enable them to reach these levels.
            ``(3) Assurance shall be provided by the State educational 
        agency that persons charged with responsibility under this 
        chapter are provided with adequate resources, pursuant to the 
        requirements of section 1012 and section 1018 and with adequate 
        decisionmaking authority to carry out their duties effectively.
            ``(4) A timetable for the achievement of the objectives 
        specified in paragraphs (1) and (2), which shall include--
                    ``(A) an identification, beginning with the third 
                annual assessment, of local educational agencies and 
                individual schools that are failing to make substantial 
                progress pursuant to the criteria developed under 
                section 1431, in decreasing the proportions of children 
                who are not proficient and in increasing the 
                proportions of children who have attained the 
                proficient and highly proficient levels of achievement 
                called for in sections 1012 and 1020;
                    ``(B) for those identified schools failing to make 
                substantial progress, the State educational agency 
                shall appoint an inspector or inspection team, where 
                the school or local educational agency has a 5 percent 
                limited-English proficient student population, the 
                inspector or inspection team shall be knowledgeable 
                about effective education strategies for limited 
                English proficient students. The inspector or 
                inspection team shall promptly visit the site to 
                determine--
                            ``(i) whether the identification of the 
                        local educational agency or school as having 
                        failed to make substantial progress has 
                        resulted from a consistent application of State 
                        educational agency standards and assessment 
                        programs throughout the State or local 
                        educational agency and, if so
                            ``(ii) whether there are immediate measures 
                        that may be undertaken by the local educational 
                        agency or school that hold substantial promise 
                        of demonstrating substantial progress pursuant 
                        to the criteria developed under section 1431 
                        within a period not to exceed 120 days from the 
                        date of the visit. If the inspection team 
                        determines that such immediate measures hold 
                        promise and are warranted it shall have 
                        authority to order the implementation of such 
                        measures and to secure from the State 
                        educational agency or local educational agency 
                        resources that it determines are necessary to 
                        secure substantial progress. Any violations of 
                        Federal civil rights law shall be referred to 
                        the Office of Civil Rights, Department of 
                        Education;
                    ``(C) the publication and dissemination to 
                teachers, parents, students, and the community of the 
                results of the school and local educational agency 
                assessments and the convening of public meetings to 
                explain the results of the assessments and to describe 
                any corrective action that will be undertaken; and
                    ``(D) the prescription of measures that will be 
                taken to change the educational environment if, after 
                the fourth assessment, a local educational agency or an 
                individual school fails to make substantial cumulative 
                progress pursuant to the criteria developed under 
                section 1431.
            ``(5) The changes in educational environment called for in 
        subparagraph (D) shall be provided through benefits in the form 
        of incentives and rewards that enhance the resources and status 
        of successful schools, by sanctions that close or change the 
        operation of unsuccessful schools and by other measures that 
        provide opportunities for students to move from unsuccessful to 
        successful schools. Such benefits, sanctions, and other 
        measures shall be applied to schools and local educational 
        agencies and shall be both individual and institutional in 
        character:
                    ``(A) In the case of individual schools that make 
                substantial progress, benefits may include--
                            ``(i) institutional rewards, such as 
                        recognition for the school, greater decision-
                        making authority at the school building level, 
                        increased access to resources or supplemental 
                        services such as summer programs that may be 
                        used to sustain and increase success, 
                        additional financial assistance to accommodate 
                        the needs of students who transfer under the 
                        provisions of paragraph (5)(C), otherwise 
                        enable the school to serve larger numbers of 
                        eligible children or to render assistance to 
                        other schools; or
                            ``(ii) individual rewards, such as 
                        recognition of school staff, additional 
                        professional development opportunities, 
                        opportunities to participate in special 
                        projects involving increased responsibility, 
                        such as curriculum development projects, and 
                        financial bonuses.
                    ``(B) In the case of individual schools that fail 
                to make substantial progress, sanctions may include--
                            ``(i) institutional penalties, such as 
                        publication of the deficiencies of the school, 
                        loss of decision-making authority at the school 
                        building level, the initiation of alternative 
                        governance arrangements or closing of the 
                        school; or
                            ``(ii) individual penalties, such as 
                        reductions in pay, dismissal, or transfer of 
                        the principal or other staff members in 
                        accordance with the applicable provisions of 
                        state law or collective bargaining agreements 
                        provided, however, that no staff member 
                        transferred under the provisions of this 
                        subsection shall be retained as a staff member 
                        at a participating school.
                    ``(C) Notwithstanding the adoption of any other 
                measure under paragraph (5)(B) applying to schools that 
                fail to make substantial progress, the State 
                educational agency shall establish a right of transfer 
                by students from schools that are failing to make 
                substantial progress to other schools in the local 
                educational agency that are making such progress, and 
                shall assure that adequate resources are provided for 
                transportation to make the right effective.
                    ``(D) In the cases of local educational agencies 
                that make substantial progress, benefits may include, 
                but are not limited to, institutional and individual 
                rewards of the kind described for individual schools in 
                paragraph (5)(A), but that are applicable on a 
                districtwide level.
                    ``(E) In the case of local educational agencies 
                that fail to make substantial progress, penalties may 
                include--
                            ``(i) dismissal of the superintendent or 
                        other local educational agency personnel by the 
                        State educational agency;
                            ``(ii) 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;
                            ``(iii) the removal of particular schools 
                        from the jurisdiction of the local educational 
                        agency and the establishment of alternative 
                        arrangements for governing and supervising such 
                        schools; or
                            ``(iv) abolition or restructuring of the 
                        local educational agency through annexation by 
                        other local educational agencies or by other 
                        means.
                    ``(F) Notwithstanding the adoption of any other 
                measure under paragraph (5)(E) applying to local 
                educational agencies that fail to make substantial 
                progress, the State educational agency shall establish 
                a right of transfer by students from local educational 
                agencies that are failing to make substantial progress 
                to schools in other local educational agencies that are 
                making such progress, and shall assure that adequate 
                resources are provided for transportation to make the 
                right effective.
            ``(6) Complaint adjudication.--
                    ``(A) An administrative process shall be 
                established within the State educational agency for the 
                adjudication of complaints by parents, students, 
                teachers, other school staff or their representatives. 
                Such process shall provide to complainants remedies for 
                the failure of a local educational agency or school to 
                comply with the opportunity to learn standards set 
                forth in section 1012, unless such local educational 
                agency or school has made substantial progress under 
                section 1431 of this section, to carry out the staff 
                development obligations set out in section 1012 to 
                implement the parent involvement measures set out in 
                section 1016 and implementation of section 1017. 
                Included in the process shall be the method by which 
                the State educational agency will notify parents and 
                students about the availability of administrative 
                remedies and the provision of technical assistance to 
                parents and students who avail themselves of such 
                remedies. The process shall specify timelines designed 
                to assure that decisions will be reached in an 
                expeditious manner and also provide for the appointment 
                of independent administrative law judges whose sole 
                responsibilities are administration adjudication. State 
                educational agencies are encouraged to supplement this 
                administrative process by establishing procedures for 
                conciliation or other forms of alternative dispute 
                resolution to resolve disputes within a local 
                educational agency between local educational agency 
                officials, teachers and other staff, parents, and 
                students on matters within the purview of this chapter.
                    ``(B) The State educational agency shall establish 
                procedures that effectively prevent retaliatory 
                personnel practices by any recipient against an 
                employee for assisting or demonstrating an intent to 
                assist in securing any right guaranteed by this chapter 
                or in achieving compliance with any requirement of this 
                chapter.
    ``(b) Duties of the Secretary.--To assure compliance with all 
provisions of this chapter, the Secretary shall--
            ``(1) initiate enforcement action in any case where a State 
        educational agency fails to comply with its obligations under 
        section 1012 (Standards, Assurances, Applications and Capacity 
        Building), section 1019 (Health and Social Services), section 
        1020 (Assessment) and section 1021 (Enforcement) of this 
        chapter or where a local educational agency or school fails to 
        comply with obligations under section 1012 (Standards, 
        Assurances, Applications and Capacity Building), section 1016 
        (Parent Involvement), section 1019 (Health and Social 
        Services), section 1020 (Assessment) and section 1021 
        (Enforcement) of this chapter, but such an action may not be 
        commenced against a local educational agency or school that has 
        made substantial progress;
            ``(2) prepare and publish annually a report to the Congress 
        and the public on the status of implementation for each state, 
        which report will describe whether substantial progress is 
        being made on a statewide basis and assess the adequacy of 
        State enforcement; and
            ``(3) ensure that notwithstanding the State's primary role 
        in the enforcement of this chapter, the Department of 
        Education's Office for Civil Rights shall monitor and enforce 
        compliance with Title VI of the Civil Rights Act of 1964, in 
        particular nondiscriminatory access of limited-English 
        proficient students to participation under this chapter.

``SEC. 1021. RESEARCH, DEVELOPMENT, EVALUATION, AND DISSEMINATION.

    ``(a) The Secretary shall reserve the greater of $70,000,000 or 1 
percent of funds appropriated under this chapter each year to fund 
research, development, evaluation, and dissemination of effective 
practices and strategies for the education of economically deprived 
children, including assistance to universities, research organizations, 
and other institutions--
            ``(1) to develop, evaluate, and disseminate programs, 
        materials, teaching methods, staff development methods, school 
        organization plans, and other replicable programs and practices 
        intended to enhance the higher order skills of students 
        attending participating schools as defined in this chapter;
            ``(2) to conduct third-party, independent evaluations of 
        programs and practices identified by the Secretary as 
        promising;
            ``(3) to study the processes by which schools adopt, adapt, 
        and institutionalize innovations; to identify and study 
        unusually effective schools and programs funded under this 
        chapter; to experiment with means of implementing and 
        maintaining comprehensive school-wide organizational 
        improvements; and to conduct other research needed to provide 
        participating schools with the exemplary instructional, 
        curricular, organizational, and professional development 
        programs;
            ``(4) to fund formative evaluation of changes in 
        educational systems brought about in whole or in part as a 
        result of this chapter, including assistance to universities, 
        research organizations, State and local educational agencies, 
        and other institutions to conduct research and evaluation at 
        the State, local educational agency and school level including, 
        but not limited to, research either singly or in combination--
                    ``(A) on uses, types, and effects of standards 
                developed and promulgated pursuant to section 1012 of 
                assessment systems developed pursuant to section 1020; 
                and of enforcement systems developed pursuant to 
                section 1021;
                    ``(B) on the school planning, improvement, 
                decisionmaking, assistance, and parent involvement 
                processes undertaken pursuant to sections 1012, 1016, 
                and 1021; and
                    ``(C) on the types and effects of changes in State 
                and local educational agency resource allocation 
                systems attributable to the requirements of sections 
                1013, 1014, and 11018.
            ``(5) to provide assistance to developers of successful 
        programs to establish national or regional dissemination to 
        replicate their programs, which may include model 
        ``lighthouse'' schools to serve State or region;
            ``(6) to inform staff of participating schools about 
        alternative, effective programs and strategies that may meet 
        their needs;
            ``(7) to establish predoctoral and postdoctoral fellowships 
        and training programs to attract talented social scientists and 
        educators, especially members of underrepresented minority 
        groups, into research and development of programs for deprived 
        students, and to provide such persons with high-quality 
        training; and
            ``(8) to provide periodic summaries of research on topics 
        relevant to the design and implementation of effective chapter 
        1 programs, such as research on reading and content area 
        instruction, parent involvement, early childhood education, 
        grouping, classroom assessment, and motivation. Such summaries 
        shall be written for and disseminated to parents and community 
        members, as well as for educators.
    ``(b) The provisions in this section are intended to supplement and 
not to supersede research functions currently retained by the United 
States Department of Education, such as those of Policy Evaluation 
Services and the Office of Educational Research and Improvement.''.

               TITLE II--ADDITIONAL EDUCATION AMENDMENTS

SEC. 201. PAYMENTS.

    Part E of title I of the Elementary and Secondary Education Act of 
1965 is amended to read as follows:

                           ``PART E--PAYMENTS

``SEC. 1404. PAYMENTS FOR STATE ADMINISTRATION.

    ``(a) In General.--The Secretary is authorized to pay to each State 
amounts equal to the amounts expended by it for the proper and 
efficient performance of its duties under this chapter, except that the 
total of such payments in any fiscal year shall be the greater of the 
following:
            ``(1) 2 percent of the amount allocated to the State and 
        its local educational agencies and to other State agencies as 
        determined for that year under parts A and D for program 
        administration, including compliance with the provisions of 
        sections 1012, 1019, and 1021, and for coordinating the 
        inclusion of limited-English proficient students; and
            ``(2) 2 percent of the amount allocated to the State and 
        its local educational agencies and to other State agencies as 
        determined for that year under parts A and C for fiscal years 
        1995, 1996, and 1997 and 1 percent in each year thereafter for 
        the development and implementation of the assessment program 
        authorized by sections 1020 and 1021, in particular for the 
        development of linguistically accessible assessment 
        instruments; or
            ``(3) $650,000, or $100,000 in the case of Guam, American 
        Samoa, the Virgin Islands, the Northern Mariana Islands, or the 
        Trust Territory of the Pacific Islands.
    ``(b) Limitation on Indirect Costs.--Not more than 15 percent of 
the State administrative allocation under subsection (a) may be used 
for indirect costs of the grant.

``SEC. 1405. FUNDS FOR THE IMPLEMENTATION OF SCHOOL IMPROVEMENT 
              PROGRAMS.

    ``(a) General Authority.--The Secretary is authorized to pay to 
each State, for the purpose of carrying out program improvement 
activities described in section 1012(c)(4) and to provide supplemental 
capacity building grants to support projects conducted within the State 
in an amount equal to--
            ``(1) 8 percent of the amount allocated to the State and 
        its local educational agencies as determined under parts A and 
        D;
            ``(2) $135,000 or $22,500 in the case of Guam, American 
        Samoa, the Virgin Islands, the Northern Mariana Islands, or the 
        Trust Territory of the Pacific Islands; or
            ``(3) any amounts paid to schools and local educational 
        services under this section shall be supplemental to the funds 
        received by them pursuant to section 1402.
    ``(b) Limitations.--
            ``(1) No funds made available to States under subsection 
        (a) may be used for administrative functions related to any 
        provisions of this chapter.
    ``(c) Supplemental Capacity Building Grants.--
            ``(1) Funds made available to States under this section 
        shall also be used to support projects conducted within the 
        State by local educational agencies or schools designed to 
        demonstrate the following:
                    ``(A) Innovative staff development and school 
                improvement strategies aimed at improving the capacity 
                of participating schools to meet the standards for 
                economically deprived children and limited English 
                proficient students required by section 1012(a).
                    ``(B) Research-based approaches to educating and 
                assessing economically deprived and limited English 
                proficient children, including instructional and 
                curricular approaches.
                    ``(C) Innovative schoolwide projects for schools in 
                which 50 percent or more of the students enrolled are 
                economically deprived.
            ``(2) State educational agencies will be responsible for 
        setting up a procedure for awarding such grants and for 
        evaluating the effectiveness of the program and individual 
        grants. Qualified recipients shall be determined by the State 
        educational agency.
            ``(3) Any local educational agency or school receiving 
        funds under this section is not relieved of any of its 
        obligations under Chapter 1, in particular the obligations 
        imposed by section 1021.''.

SEC. 202. GENERAL PROVISIONS.

    Part F of title I of the Elementary and Secondary Act of 1965 is 
amended to read as follows:

                      ``PART F--GENERAL PROVISIONS

                  ``Subpart 1--Federal Administration

``SEC. 1431. FEDERAL REGULATIONS.

    ``(a) In General.--The Secretary is authorized to issue such 
regulations as are considered necessary to reasonably ensure that there 
is compliance with the specific requirements and assurances required by 
this chapter.
    ``(b) Procedure.--
            ``(1) Prior to publishing proposed regulations pursuant to 
        this chapter, the Secretary shall convene regional meetings 
        which shall provide input to the Secretary on the content of 
        proposed regulations. Such meetings shall include 
        representatives of Federal, State and local administrators, 
        parents, teachers, including teachers who are familiar with 
        effective instructional approaches for economically deprived 
        and limited English proficient children, and members of local 
        boards of education involved with implementation of programs 
        under this chapter.
            ``(2) Subsequent to regional meetings and prior to 
        publishing proposed regulations in the Federal Register, the 
        Secretary shall prepare draft regulations and submit 
        regulations on a minimum of 4 key issues to a modified 
        negotiated rulemaking process as a demonstration of such 
        process. The modified process shall waive application of the 
        Federal Advisory Committee Act, but shall otherwise follow the 
        guidance provided in the Administrative Conference of the 
        United States in Recommendation 82-4, ``Procedures for 
        Negotiating Proposed Regulations'' (47 Fed. Reg. 30708, June 
        18, 1982) and any successor regulation. Participants in the 
        demonstration shall be chosen by the Secretary from among 
        participants in the regional meetings, representing the groups 
        described in paragraph (1) and all geographic regions. The 
        demonstration shall be conducted in a timely manner in order 
        that final regulations may be issued by the Secretary within 
        the 240-day period required by section 421(g) of the General 
        Education Provisions Act.
            ``(3) In an emergency situation in which regulations 
        pursuant to this chapter must be issued within a very limited 
        time to assist State and local educational agencies with the 
        operation of the program, the Secretary may issue a regulation 
        without such prior consultation, but shall immediately 
        thereafter convene regional meetings to review the emergency 
        regulation prior to issuance in final form.
    ``(c) Compilation and Reporting.--The Secretary shall prescribe, by 
regulation, forms for the compilation and public reporting of the 
information necessary to determine if the purposes of this Act have 
been fulfilled. The regulations shall include--
            ``(1) standards to determine whether among local 
        educational agencies in a State and among schools in a local 
        educational agency, essential educational services are 
        comparable within a reasonable range pursuant to section 
        1018(c);
            ``(2) the method for compiling and reporting information 
        gathered through the assessments required by section 1020. The 
        information shall be reported in such a way as to permit 
        evaluation of the annual progress made--
                    ``(A) by the State, by each local educational 
                agency, and by each school in which the assessment is 
                conducted; and
                    ``(B) within each State, local educational agency 
                and school, by race, national origin, status as a 
                limited-English proficient student, and economically 
                deprived students as compared to students who are not 
                economically deprived;
            ``(3) a definition for `substantial progress' as used in 
        section 1021 by schools and local educational agencies toward 
        the goal of assuring that all students acquire the knowledge 
        and skills that are necessary for sustained success. In 
        defining `substantial progress,' the regulations--
                    ``(A) shall call for a comparison at each school of 
                the proportions of students who have attained non-
                proficient, partially proficient, proficient, and 
                highly proficient levels of achievement in all aspects 
                of each subject at the grade levels at which 
                assessments, conducted under section 1012 prior to 
                approval by the Secretary of the new State standards or 
                under section 1020, are conducted with the proportions 
                in each of the four categories one period earlier, 
                provided that the periods established for comparison 
                shall be rolling two-year periods in which the second 
                year of each period will be included as the first year 
                of the succeeding period and the comparisons will be 
                based on average scores for each two-year period;
                    ``(B) shall require cumulative reductions in school 
                dropout rates or grade-level retention rates or shall 
                require cumulative increases in secondary school 
                completion rates;
                    ``(C) shall require after the fourth assessment 
                period (when two comparisons will have been made) a 
                cumulative reduction in the proportions of students who 
                are not proficient and a substantial cumulative 
                increase in the proportions of students who are 
                proficient or advanced, provided, however, that where a 
                State educational agency adopts supplemental outcome 
                measures such as reductions in dropout rates, a school 
                may be deemed to have made substantial progress if it--
                            ``(i) reaches 80 percent of its goal with 
                        respect to student proficiency; and
                            ``(ii) meets its targets on the 
                        supplemental outcome measures;
                    ``(D) shall require for each assessment period 
                after the fourth assessment that there be a substantial 
                progressive reduction in the proportion of students who 
                are not proficient and a substantial increase in the 
                proportion of students who are proficient or highly 
                proficient of at least five percentage points;
                    ``(E) while requiring compilation and reporting of 
                comparative data on each subject on which students are 
                assessed and for each grade, shall permit the 
                establishment of a composite rating under which a 
                school shall be deemed to have made substantial 
                progress when the reductions and increases required by 
                subparagraphs (B) and (C) are achieved in a majority of 
                the subjects at each grade level assessed; and
                    ``(F) shall permit a local educational agency to be 
                deemed to have made substantial progress when the 
                reductions and increases required by subparagraphs (B) 
                and (C) are achieved on a systemwide basis, which 
                includes all schools in which chapter 1 services are 
                offered in a majority of the subjects and in a majority 
                of the grade levels assessed.
    ``(d) Special Rule.--Funds made available under sections 1437 and 
1463 of this chapter shall be released for expenditure by the Secretary 
only at such time as final regulations pertaining to this chapter are 
published in the Federal Register.
    ``(e) Limitation.--Programs under this chapter may not be required 
to follow any instructional model, such as the provision of services 
outside the regular classroom or school program.

``SEC. 1434. COORDINATION OF FEDERAL, STATE, AND LOCAL ADMINISTRATION.

    ``(a) Policy Manual.--The Secretary shall, not later than 6 months 
after the publication of final regulations with respect to this 
chapter, prepare and distribute to State educational agencies, State 
agencies operating programs under part D, and local educational 
agencies, and shall make available to parents and other interested 
individuals, organizations, and agencies, a revised policy manual for 
this chapter to--
            ``(1) assist such agencies in--
                    ``(A) preparing applications for program funds 
                under this chapter;
                    ``(B) meeting the applicable program requirements 
                under this chapter; and
                    ``(C) enhancing the quality, increasing the depth, 
                or broadening the scope of activities for programs 
                under this chapter;
            ``(2) assist State educational agencies in achieving proper 
        and efficient administration of programs funded under this 
        chapter;
            ``(3) assist parents to become involved in the planning 
        for, and implementation and evaluation of, programs and 
        projects under this chapter; 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 chapter, uniformly 
        interpret, apply, and enforce requirements under this chapter 
        throughout the United States.
    ``(b) Contents of Policy Manual.--The policy manual shall, with 
respect to programs carried out under this chapter, 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 chapter, including such 
        requirements contained in this chapter, 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;
            ``(3) a statement of the procedures to be followed by the 
        Secretary with respect to proper and efficient performance of 
        administrative responsibilities;
            ``(4) summaries of (A) advisory opinions interpreting and 
        applying applicable requirements, and (B) final audit 
        determinations relevant to programs under this chapter, 
        including examples of actual applications of the legal 
        requirements of applicable statutes and regulations;
            ``(5) model forms and instructions developed by the 
        Secretary for use by State and local educational agencies, at 
        their discretion, including, but not limited to, application 
        forms, application review checklists, and instruments for 
        monitoring programs under this chapter;
            ``(6) summaries of appropriate court decisions concerning 
        programs under this chapter; and
            ``(7) model forms, policies, and procedures developed by 
        State educational agencies.
    ``(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 chapter. In 
the case of a request from a local educational agency, such agency must 
first have addressed its request to the State educational agency.
    ``(d) Technical Assistance.--From funds available to the Secretary 
for studies, evaluations, and technical assistance, the Secretary shall 
continue, establish, and expand technical assistance centers to provide 
assistance to State and local educational agencies with respect to 
programs under this chapter. In providing such assistance, centers 
shall place particular emphasis on information relating to program 
improvement, parental involvement, instruction, testing and evaluation, 
and curriculum under this chapter. Such centers shall be accessible 
through electronic means.
    ``(e) Federal Dissemination of Exemplary Programs.--To the extent 
possible, the Secretary shall provide information to State and local 
educational agencies regarding opportunities for dissemination of 
exemplary programs under this chapter through the National Diffusion 
Network. The Secretary shall emphasize programs which are exemplary in 
their implementation of the parent involvement provisions of section 
1016. The Secretary shall coordinate Federal exemplary project 
identification activities with the National Diffusion Network.
    ``(f) Federal Review of State and Local Administration.--The 
Secretary shall provide for a review of State and local administration 
of programs under this chapter. In addition to such other areas as the 
Secretary may consider appropriate, the review shall consider State 
policies, guidance materials, monitoring and enforcement activities, 
and the detection and resolution of problems of local noncompliance.

                   ``Subpart 2--State Administration

``SEC. 1451. STATE REGULATIONS.

    ``(a) In General.--
            ``(1) Except as provided in paragraph (2), nothing in this 
        chapter may be interpreted to preempt, prohibit, or encourage 
        State regulations issued pursuant to State law which are not 
        inconsistent with the provisions of this chapter, regulations 
        promulgated under this chapter, or other applicable Federal 
        statutes and regulations.
            ``(2) State rules or policies may not limit local school 
        districts' decisions regarding the grade levels to be served; 
        instructional setting, materials or teaching techniques to be 
        used; instructional staff to be employed as long as such staff 
        meet State certification and licensing requirements for 
        education personnel); or other support services (such as 
        counseling and other pupil personnel services) to be provided 
        as part of the programs authorized under this chapter.
            ``(3) Nothing in this subsection may be construed to 
        inhibit the State educational agency's responsibility to work 
        jointly with local educational agencies and other State 
        agencies receiving funds under this chapter in setting 
        standards under section 1012(a), implementing capacity building 
        and school improvement activities under sections 1012(c)(4) and 
        1405 complying with the health and social services requirements 
        of section 1019, developing assessments under section 1020 and 
        complying with the enforcement provisions of section 1021.
    ``(b) Review by Committee of Practitioners.--Before publication of 
any proposed or final State rule or regulation pursuant to this 
chapter, each such rule shall be reviewed by a State committee of 
practitioners which shall include administrators, teachers, including 
teachers who are familiar with effective instructional approaches for 
economically deprived and limited English proficient children, parents, 
and members of local boards of education, and on which a majority of 
the members shall be local educational agency representatives. In an 
emergency situation where such 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 such prior consultation, but shall immediately thereafter 
convene a State committee of practitioners to review the emergency 
regulation prior to issuance in final form.
    ``(c) Identification As State Requirement.--The imposition of any 
State rule or policy relating to the administration and operation of 
programs funded by this chapter (including those based on State 
interpretation of any Federal law, regulation, or guideline) shall be 
identified as a State imposed requirement.

                          ``Subpart 4--Studies

``SEC. 1461. REPORT ON STATE AND LOCAL EVALUATIONS.

    ``The Secretary shall submit a comprehensive and detailed report 
concerning State and local evaluation results based on data collected 
under sections 1012, 1021, 1107(a), 1202(a)(6), and 1242(d) to the 
appropriate committees of the Congress on a biennial basis.''.

SEC. 203. DEFINITIONS.

    Section 1471 of the Elementary and Secondary Education Act of 1965 
is amended by adding at the end the following:
            ``(24) `Economically deprived' means being from a low-
        income family as defined in section 1005.
            ``(25) 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 deprived in programs conducted exclusively in 
        English.
            ``(26) 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 
                Hawaiian Natives.
            ``(27) `Essential educational services' shall include 
        preschool child development programs; reading programs in the 
        early grades; adequate pupil-staff ratios in the classrooms; 
        counseling, health, and social services; the education and 
        experience of teachers, including the distribution of 
        experienced and inexperienced teachers among schools and local 
        educational agencies, certification of teachers, including 
        National Board certification, and assignment to teach in their 
        area of certification; a broad and comprehensive curriculum, 
        including appropriate courses at each grade level designed to 
        teach the advanced skills and knowledge called for under 
        section 1012(a); and services for limited English proficient 
        students.
            ``(28) `Comparable services' refers to services of a 
        substantially equivalent nature, duration, intensity, method, 
        and effectiveness.
            ``(29) `Comparable needs' refers to identified needs of 
        children for services to address substantially similar needs, 
        problems, or conditions, and may be measured in terms of age or 
        grade level, family income, and behavioral and academic indicia 
        of need.
            ``(30) `High-level knowledge and skills' include the 
        ability to reason, to read, understand, interpret, and analyze 
        complex material in a broad range of academic subjects; to use 
        quantitative skills for planning, analysis, and problem 
        solving; to speak and write effectively; to produce as well as 
        to reproduce knowledge; and to work cooperatively in teams as 
        well as to think and act independently.
            ``(31) `Broad and challenging curriculum' encompasses 
        material that will foster the mastery of high level knowledge 
        and skills in disciplines, including but not limited to, 
        reading, writing, mathematics, science, history, and geography.
            ``(32) 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.''.

                     TITLE III--BILINGUAL EDUCATION

SEC. 301. BILINGUAL EDUCATION.

    Title VII of the Elementary and Secondary Education Act of 1965 is 
amended to read as follows:

               ``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) while language-minority Americans live in all parts 
        of the Nation, they are highly concentrated in certain States 
        and communities;
            ``(4) the presence of language-minority Americans is 
        related to past and current Federal actions and policies 
        respecting territorial acquisition, immigration, refugee 
        protection, the conduct of national diplomacy, and the 
        prosecution of wars;
            ``(5) many language-minority Americans are limited in their 
        English proficiency, and many have limited education and 
        income;
            ``(6) limited-English-proficient children, like all other 
        children, have diverse educational needs and strengths and 
        therefore require access to all educational programs and 
        services;
            ``(7) many language-minority and limited-English-proficient 
        students continue to be deprived of equal educational 
        opportunity, and the Federal Government has a special and 
        continuing obligation to assist in providing equal educational 
        opportunity and eliminating segregation;
            ``(8) 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 which repressed native languages and 
        cultures;
            ``(9) research has shown that linguistically inappropriate 
        educational practices, including invalid and unreliable 
        assessments, contribute to a wide range of serious education 
        problems affecting language-minority and limited-English-
        proficient students including high rates of student grade 
        retention, overrepresentation in special education programs, 
        under-representation in gifted and talented education programs, 
        disproportionate tracking into noncollegiate and occupational 
        dead-end programs, and high school dropout rates;
            ``(10) many institutions of higher education fail to 
        appropriately prepare teachers, administrators and other school 
        personnel to understand and build upon the educational 
        strengths and needs of language-minority and culturally diverse 
        student enrollments;
            ``(11) it is the responsibility of all schools to ensure 
        that limited-English-proficient students master English and 
        develop high levels of academic attainment in content areas;
            ``(12) a primary means by which a child learns is through 
        the use of the child's native language, cultural heritage, and 
        instructional programs which utilize and build upon a child's 
        non-English native language and cultural heritage promote 
        parent and community involvement in education, and student 
        self-esteem, proficiency in English and subject matter 
        achievement;
            ``(13) quality bilingual programs enable children to learn 
        English and meet high academic standards including proficiency 
        in more than one language;
            ``(14) 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;
            ``(15) 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; and
            ``(16) research, development, implementation and 
        dissemination of effective bilingual education methods, 
        practices, and programs are essential to systemwide school 
        reform that improves education for all children.
    ``(b) Policy.--Congress declares it to be the policy of the United 
States to promote educational excellence and equal educational 
opportunity for all children including language-minority and limited-
English-proficient students by developing the capacity of State and 
local educational agencies, institutions of higher education, and 
community based organizations to deliver bilingual education programs 
and services.
    ``(c) Purpose.--The purpose of this title is to develop--
            ``(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;
            ``(2) a national network of information collection and 
        dissemination, research, materials development, and technical 
        assistance including support for program evaluations and 
        student assessments 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.--There are authorized to be appropriated 
$300,000,000 for the fiscal year 1994, $450,000,000 for the fiscal year 
1995, $500,000,000 for the fiscal year 1996, $550,000,000 for fiscal 
year 1997 and such sums in subsequent years for the purpose of carrying 
out the provisions of this title.
    ``(b) Distribution.--From the sums appropriated under subsection 
(a) for any fiscal year, the Secretary shall reserve 60 percent for the 
programs carried out under part A, 15 percent for part B and 25 percent 
for part C of this title;
    ``(c) Evaluation.--Of the funds provided under this title, 0.5 
percent shall be reserved for evaluation of activities conducted under 
this title. Such evaluations shall be conducted for at least a 
representative sample of each type of grants for the purpose of 
improving instructional practice through identification and 
dissemination of exemplary models and products through the national 
bilingual education network and other means. Evaluation of part A 
programs shall be conducted in accordance with the provisions set out 
in section 7037.
    ``(d) Review.--Of funds provided under this title, the Secretary 
may use 0.15 percent for costs associated with monitoring 
implementation and outcomes of grants made under this title. 
Permissible costs include, but are not limited to travel, field visits 
and program evaluation.

``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 
                Hawaiian Natives 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 and 
        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, Hawaiian Natives 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 students 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 and 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.
            ``(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. Such 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 `Assistant Secretary' means the Assistant 
        Secretary of the Office of Bilingual Education and Minority 
        Languages Affairs.
            ``(10) The term `Secretary' means the Secretary of 
        Education.
            ``(11) The term `articulation agreement' means a commitment 
        to a postsecondary program, which may include secondary school 
        programs, designed to provide students with a nonduplicative 
        sequence of progressive achievement leading to meeting 
        professional standards and certification as a bilingual 
        teacher.
            ``(12) 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.
            ``(13) The term `bilingual career ladder program' means a 
        program, linking elementary or secondary schools and 
        postsecondary institutions, which is open to participation by 
        educational personnel and to secondary and postsecondary 
        students, which--
                    ``(A) leads to certification as a bilingual 
                teacher; and
                    ``(B) leads to placement in employment.
            ``(14) 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.
            ``(15) 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 or function for, public 
        elementary or secondary schools in a city, county, township, 
        school district or other political subdivision of a State or 
        such combination of school districts or counties as are 
        recognized in a State as an administrative agency for its 
        public elementary or secondary schools. Such term includes any 
        other public institution or agency having administrative 
        control and direction of a public elementary or secondary 
        school as well as those local government agencies separate from 
        the State Department of Education whose mission is the 
        preservation and maintenance of native languages.
For the purpose of carrying out programs under this title for 
individuals served by elementary, secondary or postsecondary schools 
operated predominantly for Indian or Alaskan or Hawaiian Native 
students, an Indian tribe or tribally sanctioned educational authority 
may be considered a local educational agency as such term is used in 
this title, subject to the following qualifications:
                    ``(A) 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 corporations as defined in or 
                established pursuant to the Alaskan Native Claims 
                Settlement Act (85 Stat. 588) which is recognized for 
                the special programs and services provided by the 
                United States to Indians because of their status as 
                Indians.
                    ``(B) The term `tribally sanctioned educational 
                authority' means any department or division of 
                education operating within the administrative structure 
                of the duly constituted governing body of an Indian 
                tribe, as well as any nonprofit institution or 
                organization which is chartered by the governing body 
                of an Indian tribe to operate any such school or 
                oversee delivery of educational services to members of 
                that tribe which is approved by the Secretary for the 
                purposes of this section.
            ``(16) The term `other relevant local, State, and Federal 
        programs' includes Head Start, Even Start, Chapter 1 of the 
        Elementary and Secondary Education Act, Individuals With 
        Disabilities Educational Act, foreign language education, 
        Eisenhower Math and Science programs, magnet schools, 
        vocational and applied technology education, adult education, 
        the National Literacy Act, Job Training Partnership Act, and 
        Job Opportunities and Basic Skills Training Program, Vocational 
        and Applied Technology Education Act, and the Library Services 
        and Construction Act.
            ``(17) 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.
    ``(b) Regulation Rule.--(1) In prescribing regulations under this 
title, the Secretary shall consult with State and local educational 
agencies, organizations representing persons of limited English 
proficiency, and organizations representing teachers and other 
personnel involved in bilingual education.
    ``(2) The Secretary shall not prescribe any regulations under this 
title that further define the terms defined in subsection (a) or any 
regulations restricting or expanding the definitions set out in 
subsection (a).
    ``(c) Special Information Rule.--Parents of children 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 
        handicapped student, how the program meets the objectives of a 
        student's individualized education plan;
            ``(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;
            ``(4) parents shall also be informed that they have the 
        option of declining enrollment of their children in such 
        programs and shall be given an opportunity to do so if they so 
        choose;
            ``(5) every effort shall be made to provide information 
        required by this subsection in a language and form that is 
        comprehensible to the parents; and
            ``(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.

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

``SEC. 7021. PURPOSE OF GRANTS.

    ``Grants under this part shall be used to develop the capacity of 
educational agencies, institutions of higher education, and community-
based organization providers of educational programs and services to 
initiate, develop, enhance or improve bilingual education or special 
alternative instruction programs for limited-English-proficient 
students.

``SEC. 7022. PROGRAM DEVELOPMENT AND IMPLEMENTATION GRANTS.

    ``(a) Purpose.--The purpose of this section is to provide financial 
assistance to eligible applicants 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, special 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 5 years to eligible applicants.
            ``(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;
                    ``(B) providing inservice training to classroom 
                teachers, administrators, and other school or 
                community-based organizational personnel to improve the 
                instruction and assessment of language-minority and 
                limited-English-proficient students; and
                    ``(C) implementing family education programs and 
                activities.
    ``(c) Program Plan.--To be eligible to receive a grant under this 
section, eligible applicants shall submit a plan of operation as part 
of the application provided for in section 7027 which includes--
            ``(1) a description of the population to be served, their 
        educational needs, and the approximate number of participants 
        in the proposed program;
            ``(2) a description of the instructional program, student 
        services, inservice training, and family education programs to 
        be provided under the grant;
            ``(3) a description, if appropriate, of the relationship 
        between the proposed program and other school improvement 
        efforts of the applicant pursuant to local or State education 
        improvement plans, including any developed under Goals 2000 or 
        Chapter 1;
            ``(4) a description of the program's goals and expected 
        student outcomes and methods for monitoring attainment of those 
        goals and outcomes;
            ``(5) 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;
            ``(6) a description of how the proposed program will be 
        coordinated with other local, State, and Federal programs and 
        how the resources of those programs will be used for the 
        education of limited-English-proficient students and contribute 
        to the attainment of the goals described in the grant 
        application; and
            ``(7) a budget for grant funds.
    ``(d) 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 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.
    ``(e) Priority.--The Secretary shall give priority to applications 
for early childhood education and secondary education programs.

``SEC. 7023. PROGRAM ENHANCEMENT PROJECTS.

    ``(a) Purpose.--The purpose of this section is to provide financial 
assistance to eligible applicants 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 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) providing inservice training to classroom 
                teachers, administrators, and other school or 
                community-based organization personnel to improve the 
                instruction and assessment of language-minority and 
                limited-English-proficient students;
                    ``(C) implementing family education programs and 
                activities; and
                    ``(D) providing intensified instruction.
    ``(c) Project Plan.--To be eligible to receive a grant under this 
section, eligible applicants shall submit a plan of operation as part 
of the application provided for in section 7027 which includes--
            ``(1) a description of the population to be served, their 
        educational needs, and the approximate number of participants 
        in the proposed project;
            ``(2) a description of the existing bilingual education or 
        special alternative instruction program which the project is 
        designed to enhance;
            ``(3) a description of proposed project activities;
            ``(4) a description, if appropriate, of the relationship 
        between the proposed project and other school improvement 
        efforts of the applicant pursuant to local or State education 
        improvement plans including any developed under Goals 2000 or 
        Chapter 1;
            ``(5) a description of the project's goals and expected 
        student outcomes and methods for monitoring attainment of those 
        goals and outcomes;
            ``(6) 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 project;
            ``(7) a description of how the proposed project will be 
        coordinated with other local, State, and Federal programs and 
        how the resources of those programs will be used for the 
        education of limited-English-proficient students and contribute 
        to the attainment of the goals described in the grant 
        application; and
            ``(8) a budget for grant funds.
    ``(d) 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 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. 7024. 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--
                    ``(A) the school's instructional program for 
                limited-English-proficient students including 
                curriculum, instructional materials, and assessment 
                systems, and, if appropriate, applying educational 
                technology;
                    ``(B) inservice training for all school staff and, 
                if appropriate, for community-based organization 
                personnel;
                    ``(C) family education programs and activities; and
                    ``(D) intensified instruction.
            ``(3) During the first year of the grant, funds may only be 
        used for preparatory activities including planning, training, 
        curriculum development, and materials acquisition or 
        development.
    ``(c) Project Plan.--To be eligible to receive a grant under this 
section, eligible applicants shall submit a plan of operation as part 
of the application provided for in section 7027 which includes--
            ``(1) a description of the population to be served, their 
        educational needs, and the approximate number of participants 
        in the proposed program;
            ``(2) a description of the instructional program, student 
        services, inservice training, and family education programs to 
        be provided under the grant;
            ``(3) a description, if appropriate, of the relationship 
        between the proposed program and other school improvement 
        efforts of the applicant pursuant to local or State education 
        improvement plans including any developed under Goals 2000 or 
        Chapter 1;
            ``(4) a description of the program's goals and expected 
        student outcomes and methods for monitoring attainment of those 
        goals and outcomes;
            ``(5) a description, if appropriate, of the applicant's 
        collaborative activities with institutions of higher education, 
        community-based organizations, local or State education 
        agencies, private schools, nonprofit organizations or 
        businesses in carrying out the proposed program;
            ``(6) a description of how the proposed program will be 
        coordinated with other local, State, and Federal programs and 
        how the resources of those programs will be used for the 
        education of limited-English-proficient students and contribute 
        to the attainment of the goals described in the grant 
        application; and
            ``(7) a budget for grant funds.
    ``(d) 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.
    ``(e) Priority.--The Secretary shall give priority to applications 
for schools which enroll a large portion of limited-English-proficient 
students.

``SEC. 7025. 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 or state education agency to fulfill 
the comprehensive educational needs of all the agency's limited-
English-proficient students and 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 shall 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.
            ``(3) During the first year of the grant, funds may only be 
        used for preparatory activities including planning, training, 
        and development.
    ``(c) Grant Plan.--To be eligible to receive a grant under this 
section, eligible applicants shall submit a plan of operation as part 
of the application provided for in section 7027 which includes--
            ``(1) a description of the population to be served, their 
        educational needs, and the approximate number of persons 
        involved in or benefiting from the grant;
            ``(2) a description of the activities which would be 
        carried out under the grant;
            ``(3) a description, if appropriate, of the relationship 
        between the proposed grant activities and other school 
        improvement efforts of the applicant pursuant to local or State 
        education improvement plans, including any developed under 
        Goals 2000 or Chapter 1;
            ``(4) a description of the grant's goals and expected 
        outcomes and methods for monitoring attainment of those goals 
        and outcomes;
            ``(5) a description, if appropriate, of the applicant's 
        collaborative activities with institutions of higher education, 
        community-based organizations, local or State education 
        agencies, private schools, nonprofit organizations or 
        businesses in carrying out grant activities;
            ``(6) a description of how grant activities will be 
        coordinated with other local, State, and Federal programs and 
        how the resources of those programs will be used for the 
        education of limited-English-proficient students and contribute 
        to the attainment of the goals described in the grant 
        application; and
            ``(7) a budget for grant funds.
    ``(d) Eligible Entities.--A grant may be made under this section 
only upon application by one or more local or State educational 
agencies, applying alone or in collaboration with an institution of 
higher education, community-based organization or local or State 
educational agency.
    ``(e) Priority.--The Secretary shall give priority to applications 
from--
            ``(1) applicants which enroll a large proportion of 
        limited-English-proficient students; and
            ``(2) consortia of eligible applicants to serve limited-
        English-proficient students in rural and linguistically 
        isolated settings.

``SEC. 7026. GRANT EVALUATION REGULATIONS AND REQUIRED REPORTS.

    ``(a) Regulations.--The Secretary shall issue, not later than 6 
months after the date of the enactment of this Act, regulations which 
set forth a comprehensive design for assessing and reporting on 
activities supported by grants under this part. The regulations shall 
be developed by the Secretary in consultation with the evaluation and 
assessment centers authorized in section 7037, State and local 
directors of bilingual education programs, and individuals and 
organizations with expertise in assessing limited-English-proficient 
students and evaluating educational programs for limited-English-
proficient students and their families. The regulations shall provide 
for the collection of formative information and data describing grant 
context, activities, and implementation as well as summative 
information and data on grant outcomes, the extent to which grant goals 
were achieved, and how improvement efforts will continue after the 
conclusion of the grant. The regulations shall provide for critical 
consideration of the validity, reliability, and fairness of measurement 
instruments and procedures, including portfolio and performance 
assessments, used to evaluate grant activities and their utility for 
improving educational outcomes.
    ``(b) Evaluation Reports.--
            ``(1) Not later than 6 months after the completion of each 
        grant year recipients of grants under sections 7021, 7023, and 
        7024 shall submit to the Secretary an annual evaluation report 
        which conforms to the regulations developed pursuant to this 
        section; and
            ``(2) not later than 6 months after the completion of the 
        final grant tear, all recipients of grants under Part A shall 
        submit to the Secretary and, if applicable, to the appropriate 
        State educational agency, a final evaluation report, and 
        summary, which conforms to the regulations authorized by the 
        section.

``SEC. 7027. 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 an advisory council--
                    ``(A) which with respect to applications by State 
                educational agencies, shall be composed of 
                representatives from the local educational agencies, 
                institutions of higher education, and non-profit 
                organizations located in the State;
                    ``(B) which with respect to applications by other 
                applicants eligible under this part, shall be composed 
                of representatives of those entities responsible for 
                implementing grant activities and parents and other 
                relatives of the children to be served in such 
                programs; parents shall comprise a majority of all 
                council members;
                    ``(C) and accompanied by documentation of such 
                consultations and by the comments which the council 
                makes on the application; and
                    ``(D) contain an assurance that, after the 
                application has been approved, the applicant will 
                ensure continuing consultation and involvement of the 
                council and will provide support of additional advisory 
                council activities if support is requested by the 
                advisory council.
            ``(2) All applicants for grants under this part, except for 
        those applicants identified in section 7004(a)(15)(A) and 
        section 7004(a)(17), 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 and rank-listings of applications with respect to 
        how the applications further State education improvement plans 
        including any developed under Goals 2000 or Chapter 1. The 
        Secretary shall take comments and rankings 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 program required by this 
part.
    ``(c) 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 which the program is intended to address, after 
        consultation with appropriate private school officials, 
        provision has been made for the participation of such children 
        on a basis comparable to that provided for public school 
        children;
            ``(3) student evaluation and assessment procedures in the 
        program are valid, reliable, and fair for limited-English-
        proficient students, and that limited-English-proficient 
        students who are disabled are identified and served in 
        accordance with the requirements of the Individuals with 
        Disabilities Education Act;
            ``(4) Federal funds made available for the project or 
        activity will be used so as to supplement the level of State 
        and local funds that, in the absence of such Federal funds, 
        would have been expended for special programs for children of 
        limited English proficiency 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;
            ``(6) the applicant will provide or secure 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; 
        and
            ``(7) the applicant provides for utilization of the 
        bilingual education network and other State and national 
        dissemination sources for program design and in dissemination 
        of results and products.
    ``(d) Special Consideration and Priorities.--
            ``(1) The Secretary shall give priority to applications 
        which provide for the development of bilingual proficiency for 
        all participating students.
            ``(2) 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.
            ``(3) 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.
            ``(4) 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.
    ``(e) Intensified Instruction.--In carrying out this title, each 
grantee may intensify instruction for limited-English-proficient 
students by--
            ``(1) lowering student-teacher classroom ratios;
            ``(2) 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;
            ``(3) expanding the use of professional and volunteer aids;
            ``(4) applying technology to the course of instruction; and
            ``(5) providing intensified instruction through 
        supplementary instruction or activities, including 
        educationally enriching extracurricular activities, during 
        times when school is not routinely in session.

``SEC. 7028. PROGRAMS IN PUERTO RICO.

    ``Programs authorized under this title in the Commonwealth of 
Puerto Rico may, notwithstanding any other provisions of this title, 
include programs of instruction, teacher training, curriculum 
development, research, evaluation, and assessment and testing designed 
to improve both the English language proficiency of limited-English-
proficient students and the Spanish language proficiency of limited-
Spanish-proficient students.

``SEC. 7029. INDIAN CHILDREN IN SCHOOLS.

    ``(a) 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 for Indian 
children served by elementary and secondary schools operated or funded 
by the Bureau of Indian Affairs.
    ``(b) 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 7051(c) of this Act.

           ``PART B--RESEARCH, DEVELOPMENT AND DISSEMINATION

``SEC. 7031. PURPOSE.

    ``The purpose of this part is to provide for the improved education 
of limited-English-proficient and language-minority students through 
the establishment and implementation of a national bilingual education 
network of research, data collection, instructional materials 
development, inservice training technical assistance, evaluation and 
dissemination, working in collaboration with local, State, and Federal 
agencies and the broader educational community, to improve the 
education of language-minority and limited-English-proficient students 
and their families and to ensure the success of programs, projects, and 
activities funded under this title.

``SEC. 7032. THE NATIONAL BILINGUAL EDUCATION NETWORK.

    ``(a) Establishment.--The Secretary shall establish the national 
bilingual education network, referred to in this part as the `network'. 
The network shall consist of the National Clearinghouse on Bilingual 
Education, the Evaluation and Assessment Centers, and the 
Multifunctional Resource Centers, and shall operate in close 
collaboration with the Department's research, development and 
dissemination activities, including the Blue Ribbon Schools Program, 
the National Diffusion Network, the Educational Resources and 
Information Centers, the National Center for Research on Vocational 
Education, the regional education labs and centers operated by the 
Office of Educational Research and Improvement and local and State 
education agencies. The network shall provide a coherent system of 
research, instructional materials, development, technical assistance, 
and dissemination to practitioners, parents, and the public of 
information on language and education, including the roles of 
multilingual skills and bilingual education.
    ``(b) Collaboration and Coordination of Dissemination.--The 
Secretary shall ensure that in conducting activities under this part, 
grantees shall collaborate with entities operated by the Department and 
other agencies, including the National Dissemination Network, the 
Educational Resources and Information centers, the regional educational 
labs and centers, the entities operated under the Carl D. Perkins 
Vocational and Applied Technology Education Act, the Individuals with 
Disabilities Education Act, and the National Occupational Information 
Coordinating Committee. Each grantee under this part shall be 
responsible for providing copies of materials developed under the grant 
to the national clearinghouse on bilingual education for broader 
dissemination. The Secretary shall provide abstracts and relevant 
information regarding funded projects and State and local educational 
agency services to language-minority and limited-English-proficient 
students to the national clearinghouse on bilingual education. The 
Secretary shall also use existing dissemination systems within the 
Department to ensure broad access at the State and local levels to 
information on exemplary instructional programs and related services 
for limited-English-proficient students and their families.
    ``(c)  Gifts, Bequests, and Devises.--The entities of the national 
bilingual education network 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 
the national bilingual education network. 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 to the national clearinghouse on 
bilingual education, the Evaluation and Assessment Center or 
Multifunctional Resource Center, respectively.

``SEC. 7033. RESEARCH.

    ``(a) Research Activities.--The Secretary shall provide through 
competitive grants to institutions of higher education, nonprofit and 
for-profit organizations, and local and State educational agencies, for 
research studies which are of 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 shall conduct research activities that 
        include--
                    ``(A) identifying criteria for the establishment, 
                use and monitoring of local, State, or Federal 
                education goals, content, performance and delivery 
                standards, and assessments for all students that 
                provide for 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 the availability of high 
                quality curriculum-related instructional materials; and
                    ``(C) identifying determinants of appropriate high 
                quality early childhood development programs for 
                limited-English-proficient children, including the role 
                of families and the availability of appropriate high 
                quality materials.
            ``(2) The Secretary is authorized to conduct research 
        activities under this part, including--
                    ``(A) studies to identify models of effective 
                program articulation that provide for student success 
                when entering English language classrooms while 
                developing and maintaining proficiency in languages 
                other than English;
                    ``(B) 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;
                    ``(C) identification of strategies for effective 
                participation by limited-English-proficient parents in 
                their children's education for attainment of 
                educational excellence;
                    ``(D) methods of improving classification, 
                placement, and services to limited-English-proficient 
                students including, but not limited to their 
                participation in early childhood development programs, 
                chapter 1, special education, foreign language 
                education, and gifted and talented education;
                    ``(E) 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; and
                    ``(F) 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.
    ``(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.

``SEC. 7034. COORDINATION OF RESEARCH.

    ``The Secretary, in consultation with the Assistant Secretary, 
representatives of State and local education agencies, appropriate 
groups and organizations involved in bilingual education, the Committee 
on Labor and Human Resources of the Senate, and the Committee on 
Education and Labor of the House of Representatives shall ensure that 
research, standards and assessment development, and data collection 
conducted or funded by the Department embodies a coherent research 
agenda that systematically addresses issues regarding the effective 
education of language-minority and limited-English-proficient students 
and their participation in system-wide school improvement.

``SEC. 7035. EDUCATION STATISTICS.

    ``(a) Data Collection.--(1) The Secretary, in consultation with the 
Office of Bilingual Education and Minority Languages Affairs, the 
Office for Civil Rights, the National Center for Education Statistics 
and the Department of Labor, shall modify existing general purpose and 
program data systems to ensure that language-minority and limited-
English-proficient populations are included in the design, 
implementation, and reporting of such systems in order to fulfill the 
information reporting requirements of this title. Such data systems 
shall include information on the number of language-minority students, 
their linguistic competencies in English and native languages, the 
quantity and quality of educational services received by such students, 
and the educational status of such students in relation to achieving 
national educational goals and standards.
    ``(2) The National Center for Education Statistics shall collect 
data on the number and qualifications of teachers providing services to 
limited-English-proficient students, the nature of such services, and 
the language proficiencies of such teachers. Data on current and 
projected demand for bilingual teachers and other educational personnel 
shall be collected, in consultation with local and State educational 
agencies, the Bureau of Labor Statistics, and the National Occupational 
Information Coordinating Committee.
    ``(3) The Secretary, acting through the National Center for 
Education Statistics and in consultation with the Office of Bilingual 
Education and Minority Languages Affairs, the National Cooperative 
Educational Statistics System and experts in bilingual education, 
second language acquisition and English-as-a-second language, shall 
establish a common definition of `limited-English-proficient' for 
purposes of national data collection. Using this definition, the 
Secretary shall provide for continuing a collection of data on limited-
English-proficient students as part of the data systems operated by the 
Department.
    ``(b) Use and Compatibility With Other Data Systems.--In carrying 
out the activities under this section the Secretary shall--
            ``(1) use existing data collection systems operated by the 
        Secretary and, to the extent appropriate, data collection 
        systems operated by other Federal agencies and local and State 
        education agencies;
            ``(2) conduct additional data collection, including 
        increasing sample sizes for special populations, to augment the 
        data collection systems described in subparagraph A by 
        providing information necessary for policy analysis and program 
        improvement required in this title; and
            ``(3) use any independent data collection efforts that are 
        complementary to the data collection efforts described in 
        paragraphs (1) and (2).

``SEC. 7036. GRANTS FOR STATE PROGRAMS.

    ``(a) In General.--The Secretary is authorized to make grants to 
State education agencies for data collection and dissemination 
activities and assistance in building State capacity to serve limited-
English-proficient students.
    ``(b) Data Collection and Dissemination.--Upon application from a 
State educational agency, the Secretary shall make provision for the 
submission and approval of a State data collection program, developed 
in consultation with the National Cooperative Education Statistics 
System, for the collection, aggregation, analysis, and publication of 
data and information on the State's population of limited-English-
proficient and language-minority individuals and on the educational 
services provided or available to such persons. At a minimum, States 
shall provide current information and data on the language-minority and 
limited-English-proficient populations, including trends in 
legislation, funding levels, language-minority student data, teacher 
certification requirements, criteria to identify limited English 
proficiency and any specific content, delivery or performance standards 
related to language-minority students.
    ``(c) Assistance in Building State Capacity To Serve Limited-
English-Proficient Students.--Grants approved under this section shall 
provide for training of State educational agency personnel in the 
design, planning, implementation, coordination, and evaluation of 
programs serving language-minority and limited-English- proficient 
students, and in valid, reliable, and fair monitoring of the impact of 
educational goals, standards, and assessments on such students. Such 
activities shall include outreach and technical assistance to tribal 
organizations, rural schools, and schools with high concentrations of 
low-income students in developing and submitting proposals for funding 
of bilingual education and special alternative instructional programs 
under this title.
    ``(d) Other Uses of Funds.--State programs authorized under this 
section may also provide for--
            ``(1) the development or adoption of State goals, content 
        and performance and delivery standards, and assessments that 
        are valid, reliable, and fair in assessing the educational 
        strengths and needs of limited-English proficient and language-
        minority students;
            ``(2) the inclusion of data on limited-English proficient 
        and language minority students as an integrated element of the 
        State educational agency's general purpose and program data 
        systems to ensure that adequate information on such students is 
        included in the design, implementation, and reporting of such 
        systems;
            ``(3) the planning and development of bilingual educational 
        programs and special alternative instructional programs for 
        inclusion in any State education improvement plans, including 
        any developed under Goals 2000 or chapter 1;
            ``(4) the review and evaluation of staffing, delivery 
        standards, and other aspects of bilingual education, special 
        alternative instructional programs, including programs that are 
        not funded under this title;
            ``(5) the provision, coordination, or supervision of 
        training, technical and other forms of nonfinancial assistance, 
        in collaboration with the national bilingual education network, 
        to local educational agencies, community-based organizations 
        and schools that serve limited-English proficient individuals;
            ``(6) the identification and dissemination of exemplary 
        programs of bilingual education within the State and provision 
        for national dissemination through the national bilingual 
        education network, including assistance in applying for Federal 
        and State programs recognizing exemplary schools or programs;
            ``(7) the training of State and local educational agency 
        staff to carry out the purposes of this title and assisting 
        educational personnel in meeting State and local certification 
        requirements for bilingual education and in content areas; and
            ``(8) other activities and services designed to build the 
        capacity of the State and local educational agencies to serve 
        the educational needs of individuals of limited English 
        proficiency.
    ``(e) Payments.--The Secretary shall pay from the amounts 
appropriated under this part for each fiscal year to each State 
educational agency which has a State program submitted and approved 
under this section such sums as may be necessary for the proper and 
efficient conduct of such State program. The amount paid by the 
Secretary to any State educational agency under the preceding sentence 
for any fiscal year may not be less than $100,000 nor greater than 5 
percent of the aggregate of the amounts paid through grants authorized 
under part A for programs within such State in the fiscal year 
preceding the fiscal year to which this limitation applies.
    ``(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, timetables 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. 7037. INSTRUCTIONAL MATERIALS DEVELOPMENT.

    ``The Secretary shall provide grants for the development, 
publication and dissemination of high quality instructional materials 
in Native American 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.

``SEC. 7038. EVALUATION AND ASSESSMENT CENTERS.

    ``(a) Establishment.--
            ``(1) The Secretary shall establish, through a 5-year 
        competitive grant program to institutions of higher education, 
        not less than 2 evaluation and assessment centers (referred to 
        in this title as `EACs'). Additional centers may be established 
        if funding for each existing center is not less than 
        $1,000,000.
            ``(2) The EACs shall provide technical assistance to local 
        and State educational agencies regarding methods and techniques 
        for assessing the strengths and needs of limited-English 
        proficient and language minority students and evaluating 
        programs such as those assisted under this title, for the 
        purpose of improving delivery of instruction, including the 
        development and implementation of content, performance and 
        delivery standards, and assessments.
    ``(b) Services.--The EACs shall provide outreach, training, and 
technical assistance to State and local educational agencies and other 
entities conducting programs funded under this title or similar to 
those funded under this title:
            ``(1) In accordance with the requirements of section 
        7003(c), the EACs shall conduct evaluations of a representative 
        sample of all types of grants supported under part A of this 
        title. In conducting these evaluations, the EACs shall develop 
        model evaluation materials that are written so that they are 
        easily understood by educators, policymakers, and the general 
        public; adhere to established technical standards; and provide 
        the program staff and broader community with useful information 
        and data for improving instructional services for language-
        minority and limited-English-proficient students.
            ``(2) EACs shall provide coordinated training and technical 
        assistance to State and local educational agencies in--
                    ``(A) fulfilling Federal and State evaluation 
                requirements;
                    ``(B) using program evaluations effectively to 
                improve instructional services to language-minority and 
                limited-English-proficient students;
                    ``(C) involving parents and practitioners in the 
                program evaluation process;
                    ``(D) developing model evaluation designs, 
                strategies, and systems;
                    ``(E) developing and utilizing assessment 
                instruments to ensure valid, reliable, and fair 
                evaluations of language-minority and limited-English-
                proficient student performance; and
                    ``(F) monitoring the use and impact of standards 
                and assessments developed pursuant to State or local 
                education improvement plans including any developed 
                under Goals 2000 or chapter 1 on language-minority and 
                limited-English-proficient students.

``SEC. 7039. MULTIFUNCTIONAL RESOURCE CENTERS.

    ``(a) Establishment.--The Secretary shall establish, through a 5-
year competitive grant program, at least 16 multifunctional resource 
centers (referred to in this title as `MRCs'). Grants shall be awarded 
with consideration given to the geographical and linguistic 
distribution of children of limited English proficiency and the number 
of projects funded under parts A and C of this title to be served by 
each MRC.
    ``(b) Required services.--
            ``(1) Each multifunctional resource center shall provide 
        training and technical assistance related to--
                    ``(A) the development and implementation of grants 
                under parts A and C of this Act;
                    ``(B) incorporating the results of research into 
                teaching practice;
                    ``(C) utilizing technology for instructional 
                purposes; and
                    ``(D) developing and implementing content, delivery 
                and performance standards, and developing and 
                implementing family and community involvement 
                activities.
            ``(2) In carrying out these activities MRCs may--
                    ``(A) develop training criteria;
                    ``(B) develop software training tutorials;
                    ``(C) integrate media in preparing training and 
                technical assistance activities;
                    ``(D) develop training modules for ongoing programs 
                to train teachers, counselors, paraprofessionals, 
                school board members and administrators; and
                    ``(E) assist successful programs in applying for 
                local, State, or Departmental programs which recognize 
                school excellence and provide technical assistance in 
                the dissemination of information through the national 
                clearinghouse on bilingual education on such successful 
                programs.
    ``(c) Training Materials Development and Dissemination.--
            ``(1) Each MRC, in consultation with the clearinghouse and 
        the EACs, shall be responsible for developing training modules 
        and accompanying materials with direct practical application 
        for the improvement of instruction for limited-English-
        proficient and language-minority students in one of the 
        following areas:
                    ``(A) The role of bilingualism in schoolwide and 
                systemwide improvement, including participation in 
                local, State and national goals, standards, and 
                assessments.
                    ``(B) Bilingualism and early childhood development.
                    ``(C) Bilingual family empowerment in home-school 
                partnerships.
                    ``(D) Bilingualism and special education.
                    ``(E) Bilingual gifted and talented education.
                    ``(F) Bilingual math education.
                    ``(G) Bilingual science education.
                    ``(H) Effective bilingual programs in secondary 
                schools.
                    ``(I) Bilingual vocational and applied technology 
                education including the role of bilingual skills in 
                postsecondary education and career options.
                    ``(J) Bilingual adult education and job training, 
                including adult literacy and workplace literacy 
                programs.
                    ``(K) Bilingual education program administration.
                    ``(L) Native American language conservation and 
                development.
                    ``(M) Counseling and career education programs for 
                limited-English-proficient students including the role 
                of multilingual skills in evolving economy.
                    ``(N) The role of sustained multilingual skills in 
                educational excellence and career opportunities.
                    ``(O) Bilingual career ladder programs for teacher 
                certification.
                    ``(P) Education technology and distance learning in 
                bilingual education.
                    ``(Q) Other areas identified as high need areas in 
                reviews by the Secretary.
            ``(2) Each MRC shall make the training modules and 
        materials developed under this section nationally available by 
        providing copies of such materials to the Clearinghouse and to 
        all other MRCs.

``SEC. 7040. NATIONAL CLEARINGHOUSE ON BILINGUAL EDUCATION.

    ``(a) Establishment.--The Secretary shall, through a 5-year 
competitive grant program, provide for the operation of a national 
clearinghouse on bilingual education which shall collect, analyze, and 
disseminate information about bilingual education and the education of 
language-minority and limited-English-proficient students and related 
research, policy and programs to educators, administrators, 
researchers, students and their families, and others.
    ``(b) Services.--The clearinghouse shall--
            ``(1) establish a computerized information system in 
        consonance with federally funded computer information networks, 
        and with the Educational Resources and Information Center 
        clearinghouses. The system shall be available to all recipients 
        of funding under this title and shall consist of resources and 
        bibliographic databases, a bulletin board, and electronic mail. 
        The system may include information related to technology used 
        for instructing language-minority students and their families. 
        Access to the system shall be available at no cost for basic 
        services and at-cost for additional authorized services;
            ``(2) produce publications on a cost-shared basis for 
        school district and university personnel and others involved in 
        the education of language-minority students and shall produce 
        synthesis reports related to all programs funded under this 
        title. It shall also produce and disseminate publications 
        related to issues relevant to the education of language-
        minority students;
            ``(3) offer toll-free telephone and fax service to those 
        interested in seeking information about the education of 
        language-minority students;
            ``(4) also be involved in coordination activities with all 
        projects funded under this title. The clearinghouse shall 
        implement an outreach program with other information entities 
        and with professional organizations and other Federal and State 
        programs providing services to limited-English-proficient and 
        language-minority students. The clearinghouse shall be a 
        vehicle for the coordination of information on national 
        education goals and curriculum, training and testing efforts 
        related to content, delivery and performance standards 
        affecting limited-English- proficient and language-minority 
        students;
            ``(5) provide clearinghouse services the recruitment of 
        teachers and other educational personnel in low-incidence 
        languages and related outreach including but not limited to, 
        professional organizations and educational agencies;
            ``(6) in consultation and collaboration with EACs and MRCs, 
        and others, disseminate information on exemplary practices from 
        programs funded under this title, including those recognized 
        under section 7040; and
            ``(7) in collaboration with OBEMLA, participate in 
        planning, consolidating, analyzing and disseminating grantee-
        generated information through computerized data bases.

``SEC. 7041. BLUE RIBBON BILINGUAL EDUCATION SCHOOLS.

    ``(a) Establishment.--Not later than six months following enactment 
of this Act, the Secretary shall establish the Blue Ribbon Bilingual 
Education Schools Program as part of the Blue Ribbon Schools Program to 
recognize schools or programs which have established standards of 
excellence in bilingual education and which have demonstrated a high 
level of quality.
    ``(b) School and Program Selection.--The Secretary shall 
competitively select schools and programs to be recognized from among 
public and private schools or programs within the States and schools 
funded by the Department of the Interior who have been nominated by 
State or local educational agencies, tribal organizations, professional 
organizations, institutions of higher education, or community based 
organizations.
    ``(c) Recognition of Schools Operating Bilingual Education 
Programs.--On at least a biennial basis the Secretary shall provide 
recognition of not less than 12 schools operating bilingual education 
programs that develop student proficiency in English and a second 
language as `Blue Ribbon Bilingual Education Schools'. Information on 
Blue Ribbon Bilingual Education Schools shall be disseminated through 
the Blue Ribbon Schools Program, the national bilingual education 
network, the National Dissemination Network and other appropriate 
entities.

             ``PART C--BILINGUAL EDUCATION TEACHER TRAINING

``SEC. 7051. 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 students. This part supports the training 
of all educational personnel to serve more effectively limited-English-
proficient students. This part provides 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. 7052. 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 in consortia with local 
education agencies or State education agencies or nonprofit 
organizations.
    ``(c) Permissible Activities.--Activities conducted under this 
section may include the development of inservice training programs in 
collaboration with training under chapter 1, the Eisenhower Math and 
Science program, Head Start 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. The Secretary 
shall give special consideration to such programs if they train 
secondary school teachers or early childhood development teachers.

``SEC. 7053. 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.
    ``(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. 7054. BILINGUAL EDUCATION CAREER LADDER PROGRAM.

    ``(a) Purpose.--The purpose of this section is to upgrade the 
qualifications and skills of existing 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 5-year grants 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 for future bilingual education 
        teachers consisting of activities for introduction to teaching 
        during secondary school preceding graduation and providing for 
        articulation with other activities under this section;
    ``(d) Requirement.--Programs funded under this section must be 
carried out under an articulation agreement between the participants in 
the consortium;
    ``(e) 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 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 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. 7055. GRADUATE FELLOWSHIPS IN BILINGUAL EDUCATION PROGRAM.

    ``(a) Authorization.--The Secretary is authorized to award 
fellowships for advanced study in bilingual education leading to a 
masters or doctorate degree. 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 of the fellowship 
program in the report required under section 7051(c) of this title.
    ``(b) Fellowship Requirements.--Any individual receiving a 
fellowship under this section shall agree either to repay the cost of 
such assistance or to work in an activity related to programs and 
activities such as those authorized under this title in return for 
cancellation of a percentage of such debt based on years of qualifying 
service. The percentage of debt for such assistance which shall be 
canceled under this paragraph is at the rate of 15 percent for each of 
the first and second years of such service, 20 percent for each of the 
third and fourth years of such service, and 30 percent for the fifth 
year of such service. The Secretary may waive this requirement in 
extraordinary circumstances.
    ``(c) Priority.--In making grants for fellowships, the Secretary 
shall give priority to eligible applicants with--
            ``(1) demonstrated competence and experience in programs 
        and activities such as those authorized under this Act; and
            ``(2) which will fund from other sources at least one 
        fellowship for each three funded under this Act.

``SEC. 7056. 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. 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 
        tribally controlled institutions of higher education to 
        facilitate their participation in activities under this part.
    ``(c) Application Requirements For Bilingual Teacher Training 
Programs.--
            ``(1) An application for a grant for preservice or 
        inservice training activities described in this part shall be 
        developed in consultation with an advisory council composed of 
        representatives of State and local educational agencies within 
        the applicant's service area or geographical region which 
        operate programs of bilingual education.
            ``(2) 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, and
                    ``(B) provide additional resources for such 
                training from other sources.
            ``(2) In making grants under sections 7042, 7043 and 7044, 
        the Secretary shall give special consideration to programs that 
        ensure that individuals completing such programs demonstrate 
        proficiency in English and a second language.
    ``(e) 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.
    ``(f) Stipends.--In the terms of any arrangement described in this 
part, the Secretary shall provide for the payment, to persons 
participating in training programs so described, of such stipends 
including allowances for subsistence and other expenses for such 
persons and their dependents) as the Secretary may determine to be 
consistent with prevailing practices under comparable federally 
supported programs.

                        ``PART D--ADMINISTRATION

``SEC. 7061. 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 (hereafter in this section referred to as the `Office') through 
which the Secretary shall carry out functions relating to bilingual 
education [and multilingual proficiency].
    ``(b) Assistant Secretary.--(1) The Office shall be headed by an 
Assistant Secretary 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 
Assistant Secretary 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.
    ``(2) The Office shall be organized as the Assistant Secretary 
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 Assistant Secretary shall prepare and, not later 
than February 1 of each 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 students;
            ``(2) a critical synthesis of data reported by the States 
        pursuant to section 7035;
            ``(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 student.
    ``(d) Assessment of Border Education.--The Secretary shall identify 
effective policies for strengthening the quality of education for all 
students, including limited-English-proficient and language-minority 
students who reside near the United States border with Canada and 
Mexico, as well as Hawaii, the Commonwealth of Puerto Rico, the 
territories and freely associated nations. The report shall include 
identification of--
            ``(1) current and likely trends in student and out-of-
        school youth migration in border communities and the 
        implications for school delivery of quality education in such 
        communities,
            ``(2) existing procedures for the international transfer of 
        student records for transferring students and options for 
        improvement,
            ``(3) the native language and second language proficiency 
        of students residing in border communities,
            ``(4) opportunities for elementary, secondary, and 
        postsecondary teacher exchanges, particularly for teachers of 
        languages other than English, bilingual and English-as-a-
        second-language educators, to become familiar with the culture 
        and languages of students they are responsible for teaching;
            ``(5) options for improving access to language and other 
        instruction through authentic materials, live interactive 
        broadcasts, and other electronic technology, and
            ``(6) the need for and availability of opportunities for 
        training in language for specific purposes for internationally 
        related activities including health, law enforcement, and 
        internationally related activity of small business. The study 
        may also address other matters determined by the Secretary to 
        be relevant.
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.--
            ``(1) In order to maximize Federal efforts aimed at serving 
        the educational needs of children of limited-English 
        proficiency, the Secretary shall coordinate and ensure close 
        cooperation with other 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 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 OBEMLA and relevant 
        programs operated by the Department, including chapter 1, 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.
            ``(2) The Secretary's reports under section 6213 of the 
        Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary 
        School Improvement Amendments of 1988 and under section 7051 
        (c) of this Act shall include demonstration that such 
        coordination has taken place.
    ``(f) 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.
    ``(g) Reading and Scoring Applications.--For the purpose of reading 
and scoring 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 and scorers 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 
use funds appropriated for the programs authorized under this title to 
pay for the application reading and scoring services required by this 
provision. Such readers shall serve for a period of 3 years, with one 
third of the appointments expiring each year. The Secretary shall 
provide relevant training for reviewers.
    ``(h) Publication of Proposals.--The Secretary shall publish and 
disseminate all requests for proposals for programs funded under this 
title.
    ``(i) Textbooks.--Nothing in this title shall be construed as 
authorizing the Secretary to conduct or support studies or analyses of 
the content of educational textbooks.

``SEC. 7062. 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. 7063. 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. 7064. LANGUAGE AND CULTURAL INSTITUTES.

    ``Funds provided under this title may be used to conduct 
intensified programs using native language teachers, including summer 
programs that include activities of international cooperation so that 
teachers of limited-English-proficient students better understand the 
students they serve. Institutes may include provision of technology-
based training programs and development of electronic networks for 
delivery of such training on an ongoing basis. Priority shall be given 
to applications which include teachers, counselors and administrators 
in secondary schools.

``SEC. 7065. NOTIFICATION.

    ``The State educational agency, when applicable, the State Board 
for postsecondary education when applicable, and the clearinghouse, and 
the applicable Evaluation and Assessment 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. 7066. DISTRIBUTION OF FUNDING.

    ``The Secretary shall, to the extent feasible in consonance with 
high quality programming, allocate funds appropriated in proportion to 
the geographical distribution of children of limited-English-
proficiency throughout the Nation, with due regard for the relative 
ability of particular local and State educational agencies to carry out 
such programs.

``SEC. 7067. CONTINUED ELIGIBILITY.

    ``Entities receiving grants under this title shall remain eligible 
for grants for subsequent activities which extend and do not duplicate 
those activities supported by a previous grant under this title. In 
considering applications for grants under this section the Secretary 
shall take into consideration the applicant's record of accomplishments 
under previous grants.

``SEC. 7068. WITHHOLDING OF PAYMENTS.

    ``(a) Failure To Comply.--Whenever the Secretary, after reasonable 
notice to the grantee and the State educational agency and an 
opportunity for a hearing on the record, finds that there has been a 
failure to comply substantially with any assurances required to be 
given or conditions required to be met under this chapter, the 
Secretary shall notify such grantee of these findings and that 
beginning 60 days after the date of such notification, funding will be 
reduced or terminated 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 grantee under the part or 
subpart thereof, or payments shall be limited to entities in the 
grantee consortium not affected by the failure, or payments to 
particular grantees shall be reduced, as the case may be.
    ``(b) Notice to Public.--Upon submission to a grantee of a notice 
under subsection (a) that the Secretary is withholding payments, the 
Secretary shall take such action as may be necessary to bring the 
withholding of payments to the attention of the public and the States.

``SEC. 7069. JUDICIAL REVIEW.

    ``If any grantee is dissatisfied with the Secretary's action under 
section 7027(f), such grantee may, within 60 days after notice of such 
action, file with the United States court of appeals for the circuit in 
which such grantee 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 filing of such petition shall act to 
suspend any withholding of funds by the Secretary pending the judgment 
of the court and prior to a final action on any review of such 
judgment. The Secretary, thereupon, shall file in the court the record 
of the proceedings on which the Secretary's action was based, as 
provided in section 1254, of title 28, United States Code.

``SEC. 7070. 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. 7081. TRANSITION PROVISIONS.

    ``Any grant or contract awarded under this title prior to the 
effective date of these amendments shall be allowed to complete the 
term of the original award in accordance with the conditions of the 
original award, except, in the case of contracts, the term shall also 
include applicable option years.''.

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