Calendar No. 570

105TH CONGRESS

2D SESSION S. 2213

[Report No. 105–327]

A BILL

To allow all States to participate in activities under

onstration Act.the Education Flexibility Partnership DemSEPTEMBER 14, 1998

Reported with an amendment
II

Calendar No. 570

105TH CONGRESS

2D SESSION S. 2213

[Report No. 105–327]

To allow all States to participate in activities under the Education Flexibility

Partnership Demonstration Act.

IN THE SENATE OF THE UNITED STATES

JUNE 24, 1998

Mr. FRIST (for himself, Mr. WYDEN, Mr. KERREY, Mr. DEWINE, Mr. GLENN,

Mr. KEMPTHORNE, Mr. FORD, Mr. HELMS, Mr. GRASSLEY, Mr. ROTH,

Ms. COLLINS, Mr. SMITH of Oregon, Mr. LEVIN, Mr. MCCONNELL, Mr.

HAGEL, Mrs. HUTCHISON, Mr. DOMENICI, Mr. BENNETT, and Mr.

THOMPSON) introduced the following bill; which was read twice and referred to the Committee on Labor and Human Resources

SEPTEMBER 14, 1998

Reported by Mr. JEFFORDS, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To allow all States to participate in activities under the

Education Flexibility Partnership Demonstration Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

•S 2213 RS

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Education Flexibility

3 Amendments of 1998’’.

4 SEC. 2. FINDINGS.

5 Congress makes the following findings:

6 (1) States differ substantially in demographics,

7 in level of urbanization, in geography, and in school

8 governance. The administrative and funding mecha9 nisms that help schools in 1 State improve may not

10 prove successful in other States.

11 (2) State and local educational agencies are re12 quired to complete numerous reporting requirements

13 established by Federal rule or regulation. States and

14 schools need flexibility, with respect to Federal and

15 State rules and regulations, to devise the best way

16 in differing situations to achieve the goals of Federal

17 and State education laws.

18 (3) To achieve the State goals for the education

19 of children in the State, the focus must be on re20 sults, not process.

21 (4) Activities assisted under the Education

22 Flexibility Partnership Demonstration Act, as imple23 mented by 12 States—

24 (A) represent a significant step in focusing

25 on results not process; and
3

•S 2213 RS

1 (B) give States substantial flexibility in ex2 change for accountability.

3 SEC. 3. EXPANSION OF THE EDUCATION FLEXIBILITY PART4 NERSHIP DEMONSTRATION ACT.

5 (a) IN GENERAL.—Section 311(e) of the Goals 2000:

6 Educate America Act (20 U.S.C. 5891(e)) is amended—

7 (1) in paragraph (2)—

8 (A) by amending subparagraph (A) to read

9 as follows:

10 ‘‘(A) IN GENERAL.—The Secretary may

11 carry out an education demonstration program

12 under which the Secretary authorizes—

13 ‘‘(i) a State educational agency that

14 serves an eligible State to waive statutory

15 or regulatory requirements applicable to 1

16 or more programs or Acts described in

17 subsection (b), other than requirements de18 scribed in subsection (c), for the State edu19 cational agency or any local educational

20 agency or school within the State; and

21 ‘‘(ii) a State educational agency that

22 serves an eligible State and participated in

23 the program under this subsection prior to

24 the date of enactment of the Education

25 Flexibility Amendments of 1998 to waive
4

•S 2213 RS

1 statutory or regulatory requirements appli2 cable to 1 or more programs or Acts de3 scribed in subsection (b), title III of the

4 Elementary and Secondary Education Act

5 of 1965, or the Adult Education Act, other

6 than requirements described in subsection

7 (c), for the State educational agency or

8 any local educational agency or school

9 within the State.’’;

10 (B) by striking subparagraph (B); and

11 (C) by redesignating subparagraph (C) as

12 subparagraph (B); and

13 (2) in paragraph (3)—

14 (A) in subparagraph (A), by inserting ‘‘(i)’’

15 after ‘‘(A)’’;

16 (B) in subparagraph (B), by striking the

17 period and inserting ‘‘; or’’;

18 (C) by redesignating subparagraph (B) (as

19 amended by subparagraph (B)) as clause (ii);

20 and

21 (D) by adding at the end the following:

22 ‘‘(B) has a consolidated State plan or a

23 consolidated State application approved by the

24 Secretary under section 14302 of the Elemen25 tary and Secondary Education Act of 1965.’’.
5

•S 2213 RS

1 (b) FUNDING.—Section 311(e) of the Goals 2000:

2 Educate America Act (20 U.S.C. 5891(e)) is amended fur3 ther by adding at the end the following:

4 ‘‘(h) FUNDING.—Notwithstanding any other provi5 sion of law and using any funds available to the Secretary,

6 the Secretary shall make available such funds as are nec7 essary to carry out this subsection for each of the fiscal

8 years 1999 through 2003.’’.

9 TITLE I—EDUCATION

10 FLEXIBILITY

11 SEC. 101. SHORT TITLE.

12 This title may be cited as the ‘‘Education Flexibility

13 Amendments of 1998’’.

14 SEC. 102. FINDINGS.

15 Congress makes the following findings:

16 (1) States differ substantially in demographics,

17 in school governance, and in school finance and fund18 ing. The administrative and funding mechanisms

19 that help schools in 1 State improve may not prove

20 successful in other States.

21 (2) Although the Elementary and Secondary

22 Education Act of 1965 and other Federal education

23 statutes afford flexibility to State and local edu24 cational agencies in implementing Federal programs,

25 certain requirements of Federal education statutes or
6

•S 2213 RS

1 regulations may impede local efforts to reform and

2 improve education.

3 (3) By granting waivers of certain statutory and

4 regulatory requirements, the Federal Government can

5 remove impediments for local educational agencies in

6 implementing educational reforms and raising the

7 achievement levels of all children.

8 (4) State educational agencies are closer to local

9 school systems, implement statewide educational re10 forms with both Federal and State funds, and are re11 sponsible for maintaining accountability for local ac12 tivities consistent with State standards and assess13 ment systems. Therefore, State educational agencies

14 are often in the best position to align waivers of Fed15 eral and State requirements with State and local ini16 tiatives.

17 (5) The Education Flexibility Partnership Dem18 onstration Act allows State educational agencies the

19 flexibility to waive certain Federal requirements,

20 along with related State requirements, but allows only

21 12 States to qualify for such waivers.

22 (6) Expansion of the waiver authority under

23 such Act will allow for the waiver of statutory and

24 regulatory requirements that impede implementation

25 of State and local educational improvement plans, or
7

•S 2213 RS

1 that unnecessarily burden program administration,

2 while maintaining the intent and purposes of affected

3 programs, and maintaining such fundamental re4 quirements as those relating to civil rights, edu5 cational equity, and accountability.

6 (7) To achieve the State goals for the education

7 of children in the State, the focus must be on results

8 in raising the achievement of all students, not process.

9 SEC. 103. EXPANSION OF THE EDUCATION FLEXIBILITY

10 PARTNERSHIP DEMONSTRATION ACT.

11 (a) IN GENERAL.—Section 311(e) of the Goals 2000:

12 Educate America Act (20 U.S.C. 5891(e)) is amended—

13 (1) in paragraph (2)—

14 (A) by amending subparagraph (A) to read

15 as follows:

16 ‘‘(A) IN GENERAL.—The Secretary may

17 carry out an education flexibility demonstration

18 program under which the Secretary authorizes a

19 State educational agency that serves an eligible

20 State to waive statutory or regulatory require21 ments applicable to 1 or more programs or Acts

22 described in subsection (b) or 1 or more pro23 grams described in subpart 2 of part A of title

24 III of the Elementary and Secondary Education

25 Act of 1965 (except section 3136 of such Act),
8

•S 2213 RS

1 other than requirements described in subsection

2 (c) of this Act and section 14401(c) of the Ele3 mentary and Secondary Education Act of 1965,

4 for the State educational agency or any local

5 educational agency or school within the State.’’;

6 (B) by striking subparagraph (B); and

7 (C) by redesignating subparagraph (C) as

8 subparagraph (B); and

9 (2) in paragraph (3), by amending subpara10 graph (A) to read as follows:

11 ‘‘(A)(i) has—

12 ‘‘(I) developed and implemented the

13 challenging State content standards, chal14 lenging State student performance stand15 ards, and aligned assessments described in

16 section 1111(b) of the Elementary and Sec17 ondary Education Act of 1965, including

18 the requirements of that section relating to

19 disaggregation of data, and for which local

20 educational agencies in the State are pro21 ducing the individual school performance

22 profiles required by section 1116(a) of such

23 Act; or

24 ‘‘(II) made substantial progress, as de25 termined by the Secretary, toward develop-
9

•S 2213 RS

1 ing and implementing the standards and

2 assessments, and toward having local edu3 cational agencies in the State produce the

4 profiles, described in subclause (I); and

5 ‘‘(ii) holds local educational agencies and

6 schools accountable for meeting the educational

7 goals described in the local applications submit8 ted under paragraph (5), and for taking correc9 tive actions, consistent with section 1116 of the

10 Elementary and Secondary Education Act of

11 1965, for the local educational agencies that do

12 not meet the goals; and’’.

13 (b) AUTHORITY TO ISSUE WAIVERS.—Section 311(e)

14 of the Goals 2000: Educate America Act (20 U.S.C. 5891(e))

15 is amended further by adding at the end the following:

16 ‘‘(8) AUTHORITY TO ISSUE WAIVERS.—Notwith17 standing any other provision of law, the Secretary is

18 authorized to carry out the education flexibility dem19 onstration program under this subsection for each of

20 the fiscal years 1999 through 2003.’’.

21 (c) ACCOUNTABILITY.—Section 311(f) of the Goals

22 2000: Educate America Act (20 U.S.C. 5891(f)) is amended

23 by adding at the end the following: ‘‘In the case of deciding

24 whether to extend a State educational agency’s authority

25 to issue waivers under subsection (e), the Secretary also
10

•S 2213 RS

1 shall review the progress of the State educational agency

2 to determine if such agency—

3 (1) has established procedures for increasing the

4 percentage of elementary school and secondary school

5 teachers in the State who have demonstrated, by tra6 ditional or alternative routes, the subject matter

7 knowledge and pedagogical skill necessary to provide

8 effective instruction in the content area or areas in

9 which the teachers provide instruction; and

10 (2) has decreased the percentage of elementary

11 school and secondary school teachers teaching in high

12 poverty elementary schools and secondary schools who

13 do not demonstrate such knowledge and skills.’’.

14 (d) TRANSITION RULES.—

15 (1) CONSTRUCTION.—Nothing in this title or the

16 amendments made by this title shall be construed to

17 affect the authority of a State educational agency that

18 has been granted waiver authority under the following

19 provisions of law:

20 (A) Section 311(e) of the Goals 2000: Edu21 cate America Act as such section was in effect on

22 the day before the date of enactment of this Act.

23 (B) The proviso referring to such section

24 311(e) under the heading ‘‘EDUCATION RE25 FORM’’ in the Department of Education Appro-
11

•S 2213 RS

1 priations Act, 1996 (Public Law 104–134; 110

2 Stat. 1321–229).

3 (2) ELIGIBILITY.—A State educational agency

4 that has been granted waiver authority under a pro5 vision of law described in subparagraph (A) or (B)

6 of paragraph (1) prior to the date of enactment of

7 this Act shall be eligible to apply for waiver authority

8 under section 311(e) of the Goals 2000: Educate

9 America Act as such section is in effect on the date

10 of enactment of this Act.

11 TITLE II—OREGON INSTITUTE

12 OF PUBLIC SERVICE AND

13 CONSTITUTIONAL STUDIES

14 SEC. 201. DEFINITIONS.

15 In this title:

16 (1) ENDOWMENT FUND.—The term ‘‘endowment

17 fund’’ means a fund established by Portland State

18 University for the purpose of generating income for

19 the support of the Institute.

20 (2) INSTITUTE.—The term ‘‘Institute’’ means the

21 Oregon Institute of Public Service and Constitutional

22 Studies established under this title.

23 (3) SECRETARY.—The term ‘‘Secretary’’ means

24 the Secretary of Education.
12

•S 2213 RS

1 SEC. 202. OREGON INSTITUTE OF PUBLIC SERVICE AND

2 CONSTITUTIONAL STUDIES.

3 From the funds appropriated under section 206, the

4 Secretary is authorized to award a grant to Portland State

5 University at Portland, Oregon, for the establishment of an

6 endowment fund to support the Oregon Institute of Public

7 Service and Constitutional Studies at the Mark O. Hatfield

8 School of Government at Portland State University.

9 SEC. 203. DUTIES.

10 In order to receive a grant under this title the Portland

11 State University shall establish the Institute. The Institute

12 shall have the following duties:

13 (1) To generate resources, improve teaching, en14 hance curriculum development, and further the knowl15 edge and understanding of students of all ages about

16 public service, the United States Government, and the

17 Constitution of the United States of America.

18 (2) To increase the awareness of the importance

19 of public service, to foster among the youth of the

20 United States greater recognition of the role of public

21 service in the development of the United States, and

22 to promote public service as a career choice.

23 (3) To establish a Mark O. Hatfield Fellows pro24 gram for students of government, public policy, public

25 health, education, or law who have demonstrated a
13

•S 2213 RS

1 commitment to public service through volunteer ac2 tivities, research projects, or employment.

3 (4) To create library and research facilities for

4 the collection and compilation of research materials

5 for use in carrying out programs of the Institute.

6 (5) To support the professional development of

7 elected officials at all levels of government.

8 SEC. 204. ADMINISTRATION.

9 (a) LEADERSHIP COUNCIL.—

10 (1) IN GENERAL.—In order to receive a grant

11 under this title Portland State University shall en12 sure that the Institute operates under the direction of

13 a Leadership Council (in this title referred to as the

14 ‘‘Leadership Council’’) that—

15 ‘‘(A) consists of 15 individuals appointed

16 by the President of Portland State University;

17 and

18 ‘‘(B) is established in accordance with this

19 section.

20 (2) APPOINTMENTS.—Of the individuals ap21 pointed under paragraph (1)(A)—

22 (A) Portland State University, Willamette

23 University, the Constitution Project, George Fox

24 University, Warner Pacific University, and Or-
14

•S 2213 RS

1 egon Health Sciences University shall each have

2 a representative;

3 (B) at least 1 shall represent Mark O. Hat4 field, his family, or a designee thereof;

5 (C) at least 1 shall have expertise in ele6 mentary and secondary school social sciences or

7 governmental studies;

8 (D) at least 2 shall be representative of

9 business or government and reside outside of Or10 egon;

11 (E) at least 1 shall be an elected official;

12 and

13 (F) at least 3 shall be leaders in the private

14 sector.

15 (3) EX-OFFICIO MEMBER.—The Director of the

16 Mark O. Hatfield School of Government at Portland

17 State University shall serve as an ex-officio member

18 of the Leadership Council.

19 (b) CHAIRPERSON.—

20 (1) IN GENERAL.—The President of Portland

21 State University shall designate 1 of the individuals

22 first appointed to the Leadership Council under sub23 section (a) as the Chairperson of the Leadership

24 Council. The individual so designated shall serve as

25 Chairperson for 1 year.
15

•S 2213 RS

1 (2) REQUIREMENT.—Upon the expiration of the

2 term of the Chairperson of the individual designated

3 as Chairperson under paragraph (1), or the term of

4 the Chairperson elected under this paragraph, the

5 members of the Leadership Council shall elect a

6 Chairperson of the Leadership Council from among

7 the members of the Leadership Council.

8 SEC. 205. ENDOWMENT FUND.

9 (a) MANAGEMENT.—The endowment fund shall be

10 managed in accordance with the standard endowment poli11 cies established by the Oregon University System.

12 (b) USE OF INTEREST AND INVESTMENT INCOME.—In13 terest and other investment income earned (on or after the

14 date of enactment of this subsection) from the endowment

15 fund may be used to carry out the duties of the Institute

16 under section 203.

17 (c) DISTRIBUTION OF INTEREST AND INVESTMENT IN18 COME.—Funds realized from interest and other investment

19 income earned (on or after the date of enactment of this

20 subsection) shall be spent by Portland State University in

21 collaboration with Willamette University, George Fox Uni22 versity, the Constitution Project, Warner Pacific Univer23 sity, Oregon Health Sciences University, and other appro24 priate educational institutions or community-based organi25 zations. In expending such funds, the Leadership Council
16

•S 2213 RS

1 shall encourage programs to establish partnerships, to lever2 age private funds, and to match expenditures from the en3 dowment fund.

4 SEC. 206. AUTHORIZATION OF APPROPRIATIONS.

5 There is authorized to be appropriated to carry out

6 this title $3,000,000 for fiscal year 1999.

7 TITLE III—PAUL SIMON PUBLIC

8 POLICY INSTITUTE

9 SEC. 301. DEFINITIONS.

10 In this title:

11 (1) ENDOWMENT FUND.—The term ‘‘endowment

12 fund’’ means a fund established by the University for

13 the purpose of generating income for the support of

14 the Institute.

15 (2) ENDOWMENT FUND CORPUS.—The term ‘‘en16 dowment fund corpus’’ means an amount equal to the

17 grant or grants awarded under this title plus an

18 amount equal to the matching funds required under

19 section 302(d).

20 (3) ENDOWMENT FUND INCOME.—The term ‘‘en21 dowment fund income’’ means an amount equal to the

22 total value of the endowment fund minus the endow23 ment fund corpus.
17

•S 2213 RS

1 (4) INSTITUTE.—The term ‘‘Institute’’ means the

2 Paul Simon Public Policy Institute described in sec3 tion 302.

4 (5) SECRETARY.—The term ‘‘Secretary’’ means

5 the Secretary of Education.

6 (6) UNIVERSITY.—The term ‘‘University’’ means

7 Southern Illinois University at Carbondale, Illinois.

8 SEC. 302. PROGRAM AUTHORIZED.

9 (a) GRANTS.—From the funds appropriated under sec10 tion 306, the Secretary is authorized to award a grant to

11 Southern Illinois University for the establishment of an en12 dowment fund to support the Paul Simon Public Policy In13 stitute. The Secretary may enter into agreements with the

14 University and include in any agreement made pursuant

15 to this title such provisions as are determined necessary by

16 the Secretary to carry out this title.

17 (b) DUTIES.—In order to receive a grant under this

18 title, the University shall establish the Institute. The Insti19 tute, in addition to recognizing more than 40 years of pub20 lic service to Illinois, to the Nation, and to the world, shall

21 engage in research, analysis, debate, and policy rec22 ommendations affecting world hunger, mass media, foreign

23 policy, education, and employment.
18

•S 2213 RS

1 (c) DEPOSIT INTO ENDOWMENT FUND.—The Univer2 sity shall deposit the proceeds of any grant received under

3 this section into the endowment fund.

4 (d) MATCHING FUNDS REQUIREMENT.—The Univer5 sity may receive a grant under this section only if the Uni6 versity has deposited in the endowment fund established

7 under this title an amount equal to one-third of such grant

8 and has provided adequate assurances to the Secretary that

9 the University will administer the endowment fund in ac10 cordance with the requirements of this title. The source of

11 the funds for the University match shall be derived from

12 State, private foundation, corporate, or individual gifts or

13 bequests, but may not include Federal funds or funds de14 rived from any other federally supported fund.

15 (e) DURATION; CORPUS RULE.—The period of any

16 grant awarded under this section shall not exceed 20 years,

17 and during such period the University shall not withdraw

18 or expend any of the endowment fund corpus. Upon expira19 tion of the grant period, the University may use the endow20 ment fund corpus, plus any endowment fund income for

21 any educational purpose of the University.

22 SEC. 303. INVESTMENTS.

23 (a) IN GENERAL.—The University shall invest the en24 dowment fund corpus and endowment fund income in those

25 low-risk instruments and securities in which a regulated
19

•S 2213 RS

1 insurance company may invest under the laws of the State

2 of Illinois, such as federally insured bank savings accounts

3 or comparable interest bearing accounts, certificates of de4 posit, money market funds, or obligations of the United

5 States.

6 (b) JUDGMENT AND CARE.—The University, in invest7 ing the endowment fund corpus and endowment fund in8 come, shall exercise the judgment and care, under cir9 cumstances then prevailing, which a person of prudence,

10 discretion, and intelligence would exercise in the manage11 ment of the person’s own business affairs.

12 SEC. 304. WITHDRAWALS AND EXPENDITURES.

13 (a) IN GENERAL.—The University may withdraw and

14 expend the endowment fund income to defray any expenses

15 necessary to the operation of the Institute, including ex16 penses of operations and maintenance, administration, aca17 demic and support personnel, construction and renovation,

18 community and student services programs, technical assist19 ance, and research. No endowment fund income or endow20 ment fund corpus may be used for any type of support of

21 the executive officers of the University or for any commer22 cial enterprise or endeavor. Except as provided in sub23 section (b), the University shall not, in the aggregate, with24 draw or expend more than 50 percent of the total aggregate
20

•S 2213 RS

1 endowment fund income earned prior to the time of with2 drawal or expenditure.

3 (b) SPECIAL RULE.—The Secretary is authorized to

4 permit the University to withdraw or expend more than

5 50 percent of the total aggregate endowment fund income

6 whenever the University demonstrates such withdrawal or

7 expenditure is necessary because of—

8 (1) a financial emergency, such as a pending in9 solvency or temporary liquidity problem;

10 (2) a life-threatening situation occasioned by a

11 natural disaster or arson; or

12 (3) another unusual occurrence or exigent cir13 cumstance.

14 (c) REPAYMENT.—

15 (1) INCOME.—If the University withdraws or ex16 pends more than the endowment fund income author17 ized by this section, the University shall repay the

18 Secretary an amount equal to one-third of the amount

19 improperly expended (representing the Federal share

20 thereof).

21 (2) CORPUS.—Except as provided in section

22 302(e)—

23 (A) the University shall not withdraw or

24 expend any endowment fund corpus; and
21

•S 2213 RS

1 (B) if the University withdraws or expends

2 any endowment fund corpus, the University shall

3 repay the Secretary an amount equal to one4 third of the amount withdrawn or expended

5 (representing the Federal share thereof) plus any

6 endowment fund income earned thereon.

7 SEC. 305. ENFORCEMENT.

8 (a) IN GENERAL.—After notice and an opportunity for

9 a hearing, the Secretary is authorized to terminate a grant

10 and recover any grant funds awarded under this section

11 if the University—

12 (1) withdraws or expends any endowment fund

13 corpus, or any endowment fund income in excess of

14 the amount authorized by section 304, except as pro15 vided in section 302(e);

16 (2) fails to invest the endowment fund corpus or

17 endowment fund income in accordance with the in18 vestment requirements described in section 303; or

19 (3) fails to account properly to the Secretary, or

20 the General Accounting Office if properly designated

21 by the Secretary to conduct an audit of funds made

22 available under this title, pursuant to such rules and

23 regulations as may be proscribed by the Comptroller

24 General of the United States, concerning investments
22

•S 2213 RS

1 and expenditures of the endowment fund corpus or

2 endowment fund income.

3 (b) TERMINATION.—If the Secretary terminates a

4 grant under subsection (a), the University shall return to

5 the Treasury of the United States an amount equal to the

6 sum of the original grant or grants under this title, plus

7 any endowment fund income earned thereon. The Secretary

8 may direct the University to take such other appropriate

9 measures to remedy any violation of this title and to protect

10 the financial interest of the United States.

11 SEC. 306. AUTHORIZATION OF APPROPRIATIONS.

12 There is authorized to be appropriated to carry out

13 this title $3,000,000 for fiscal year 1999. Funds appro14 priated under this section shall remain available until ex15 pended.